California Water Utility Governance

The California State Water Project is the largest state-owned, multi-purpose water project in the country and the only major water and power utility owned and operated by a state government agency rather than by a separate public or private entity. Serious questions have been raised about the ability of the California Department of Water Resources (DWR) to simultaneously serve as water wholesaler and as statewide water resources planner and manager.

At the request of the Resources Legacy Foundation, the Center has prepared a draft report examining alternative institutional structures to govern a water delivery entity separately from the DWR. The analysis suggests criteria to evaluate alternative governance options, based on case studies of a variety of special-purpose public entities. It provides a starting point for the detailed deliberations that necessarily accompany consideration of major institutional change. This report provides a template for considering a range of options and highlights key elements of an accountable and responsive governance structure, but it does not advocate a single “ideal” model.

The draft report is available here (accompanying table is here). Final publication is expected mid-2010.