The San Diego County Water Authority won two sweeping legal victories Wednesday in a mammoth rate case against Southern California’s largest water wholesaler.

If the tentative rulings in the years-long disputes and, local water users could eventually see significant relief from soaring water bills.

The Water Authority is owed $188.3 million plus interest from Metropolitan Water District of Southern California for its overcharges from 2011 to 2014, according to a tentative ruling from San Francisco Superior Court judge Curtis Karnow. He is expected to issue a final ruling in about a month.

Total projected savings in coming decades in refunds and avoided rate increases would amount to more than $2 billion if the decision is upheld, the authority estimates. But Metropolitan says it will appeal, meaning years will pass before a final decision.

A second tentative ruling from Karnow found that Los Angeles-based Metropolitan had under-calculated how much water the authority is allowed to purchase under Metropolitan’s system of preferential rights. The effect of that ruling is that the authority has more access to Metropolitan’s water, especially important in times of shortage such as the ongoing drought.

“This is a total, complete, unadulterated victory for the Water Authority, for our community, our civic leaders, and most importantly, our ratepayers in San Diego,” said Dennis Cushman, assistant general manager. Cushman and other community leaders spoke at a press conference hastily called to announced the twin victories.

Most of Metropolitan’s member agencies, which include the Water Authority, had allied to impose the disputed rates on the Water Authority. Meanwhile, the Water Authority had gained support from its own member agencies, along with community groups such as the Downtown San Diego Partnership and the San Diego County Taxpayers Association.

Metropolitan continues to overcharge, Cushman said, with this year’s overcharges amounting to about $55 million in 2015. Presumably, overcharges for this year and any imposed in years would also be refunded or prohibited if the rulings hold up.

However, that money won’t be returned to the Water Authority for years, Cushman said, because Metropolitan is appealing the decision.

Metropolitan said in a statement that it disagreed with the outcome. Given Karnow’s earlier rulings, they aren’t surprising, the agency said.

“At the conclusion of the litigation in the trial court, we will appeal the adverse rulings,” the Metropolitan statement said.

Metropolitan has always maintained that its rates are legal, and properly reflect the expense of running a regional water system. That position remains unchanged despite the judge’s ruling.

http://www.sandiegouniontribune.com/news/2015/jul/15/water-authority-wins-mwd-rate-case/all/?print