DLNews Staff:

Desert Hot Springs, CA – Mission Springs Water District is pleased to announce that it has reached a settlement agreement in a class action lawsuit that will avoid years of costly and unnecessary litigation. On Friday, Oct. 7, 2022, the Riverside Superior Court tentatively approved the settlement of a class action lawsuit filed in September 2021 that stemmed from meter register failures, which began to occur in 2019. 

"While not adversely impacting customer rates, this agreement is in the best interest of our ratepayers, with accountability, integrity, and excellence top of mind,” said MSWD General Manager Arden Wallum. “This litigation, if continued, would likely have lasted for years and may have cost the ratepayers millions of dollars. Instead, settling this lawsuit allows us to focus on our mission of providing, protecting, and preserving our most valuable resource and ensuring reliable water delivery to our customers."

In or about 2019, numerous water meter registers began to fail. While the problem was being addressed, MSWD was required to provide affected customers with an estimated water bill using prior usage averages; however, a question remained as to whether a higher Tier 2 rate, instead of the lower Tier 1 rate, could be charged for Tier 2 consumption. With no liability assigned, both parties agreed to enter into a $225,000 settlement agreement for impacted customers in the Tier 2 class. In addition, the court-appointed a third-party settlement fund administrator who will soon contact and provide notice to affected customers. 

As a result of the failed meter registers, the District accelerated its transition to a new Advanced Meter Infrastructure (AMI) system, which was planned before the meter issue was detected. The new meters are now in place, saving money by reducing labor and other associated costs. In addition, these new meters allow for improved technology and an advanced customer portal that leverages technology and gives customers greater control over water use and conservation. To learn more, visit www.mswd.org/customerconnect.