Both sides in the dispute over SB 1029 agree that the bill could have a significant impact on the state's economy and lifestyle.
Both sides in the dispute over SB 1029, set for a hearing in the California Senate Appropriations Committee, agree that the bill could have a significant impact on the state's economy and lifestyle, particularly in thirsty, but semi-arid, Southern California. The problem is that the two sides disagree on how the bill would work and whether it would solve or exacerbate the state's water problems. Officials at the Metropolitan Water District of Southern California, water wholesaler to 16 million people, say that the bill could plunge water into the same kind of disarray as energy.
The water district might become like the state's energy companies: still delivering a commodity, but unable to recoup costs - thus left with no funds or incentive to look for new supplies unless customers' rates are raised. The bill would strip the water district of authority to set rates for its "conveyance facilities" and give that power to the State Water Resources Control Board, which has its members appointed by the governor.