Ag Rates Lawsuit to be Dismissed

by Placerville Newswire / Oct 22, 2018 / comments

Placerville, Calif. — Earlier this year, EID customer Darwin Throne brought a lawsuit against the District contesting the validity of EID’s water rates.

At its meeting on October 22, 2018, the EID Board of Directors voted to approve a settlement agreement. Under the terms of the settlement, Mr. Throne has agreed to dismiss his lawsuit against EID in exchange for the District’s commitment that each party will bear its own costs, including attorney’s fees, incurred to date in the case.

“We are glad that Mr. Throne has decided to walk away from this lawsuit,” said EID General Manager Jim Abercrombie. “The District has been confident in the legality of the cost-of-service study undertaken in 2010/2011—a study conducted by independent experts and advised by a community-based panel—as well as the subsequent rate implementation. EID has strongly maintained throughout that its water commodity charges are valid under the law and consistent with the requirements of Proposition 218. This settlement reaffirms that validity.”

Plans are underway to conduct another cost-of-service study in 2019, with implementation of any recommended changes in 2020.