Californian deregulation

In the wake of the Enron collapse, deregulation in the United States has generally been deemed dead on arrival. However, while that may be true in the political realm, in the halls of California’s Metropolitan Water District (MWD), deregulation of water is not only a possibility but a reality. January 2003 will see the effective removal of government price controls writes Neil McCarthy, director of Haustus Water Group.

In October 2001, MWD announced a two-tiered rate structure. This wholesale change in both allocation and cost will allow the sale of water by both MWD as well as non-MWD water suppliers to MWD members and/or to specific clients of MWD members.

If an MWD member chooses to enter into a tier one agreement with the agency, it is ...

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