SAWS Sues LCRA for $1B + Alleging Breach of Contract

San Antonio Seeks Recovery of 80 Years Worth of Lost Water

The San Antonio Water System filed a $1.23 billion breach of contract suit against the Lower Colorado River Authority on Monday in state district court in Austin.

According to a release from SAWS, the “suit challenges ‘policy assumptions' made by LCRA in December 2008 which directly and unilaterally rendered the agencies' water supply project unworkable. The project was under development for the benefit of the entire lower Colorado River basin and the City of San Antonio.”

“SAWS seeks recovery of the amount due it under the contract, defined as the difference between the project cost of 90,000 acre-feet per year for 80 years and the total cost of acquiring the same amount of water from another source, or $1.23 billion,” the release says.

When the project began, it was projected that SAWS would spend $900 million to develop 330,000 acre-feet of water in the river in exchange for the right to bring 150,000 acre-feet to San Antonio. Studies since have pushed the estimated price up to $2.2 billion and decreased San Antonio's take to 90,000 acre-feet.