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CA Appeals Court Rules Tiered Water Rates Unconstitutional

SAN FRANCISCO (CBS SF) -- A state appeals court has ruled a tiered water rate structure is unconstitutional. The impact of the ruling is far-reaching impact as state water districts try to come up with ways to charge customers during California's drought.

The ruling by the 4th District Court of Appeal strikes down a fee plan in San Juan Capistrano that charged customers who used less water a lower rate than customers who consumed higher amounts.

The court said the plan violates voter-approved Proposition 218, which prohibits charging more for a service than the cost to provide it.

Most California water districts use some kind of tiered rate system.

Governor Brown criticized the decision. He told the San Jose Mercury News it puts "a straitjacket on local government at a time when maximum flexibility is needed. My policy is and will continue to be: employ every method possible to ensure water is conserved across California."

Attorneys for water districts across the state are reviewing the decision.

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