A court ruling is prompting San Diego to propose new water rates that eliminate discounts for conservation — requiring rate hikes for low-volume users and cheaper water for high-volume users. But the rate hikes for low-volume users are smaller than previously estimated, because plaintiffs in the court case agreed to a $40 million settlement — despite the courts awarding them $118 million. Another factor allowing the city to soften the proposed hikes: Costs for wholesale water are shrinking, thanks to the County Water Authority securing deals to sell excess supply to water agencies in Riverside County. The court ruling against the city is having a major impact across California by casting doubt on the rate structures of all water agencies that reward conservation — nearly every water agency in the state.

Related:

• NBC7 (San Diego): San Diego water rate proposal could raise bills for low water users