Water Authority Adopts 11.3 Percent Treated Water Rate Increase for 2011
Increase driven by rising costs to buy, deliver imported water and infrastructure investments
The San Diego County Water Authority Board of Directors today adopted rates and charges for water purchased in calendar year 2011 by the Water Authority's 24 member retail agencies. The total Municipal and Industrial cost of treated water will rise to $1,026 per acre-foot, effective January 1. That is an increase of $104, or 11.3 percent.
Two factors are driving the bulk of the rate increase for 2011. The first is rising costs to purchase and deliver imported water to the San Diego region. The second is rising costs for operating, maintaining and financing the region's water system - major investments in infrastructure designed to improve the region's long-term water reliability.
"The costs to provide our region with a safe and reliable water supply are continuing to rise, but the Water Authority is working aggressively to mitigate these rising costs and protect the interests of our member agencies and their ratepayers," said Claude A. "Bud" Lewis, chair of the Water Authority Board of Directors.
Water Authority Board to Pursue Terms for Water Purchase Agreement with Poseidon Resources
Board directs staff to develop recommended terms, present proposed terms July 22
After weighing a number of options designed to ensure the successful construction of the nation's largest seawater desalination plant, the San Diego County Water Authority Board of Directors today directed the agency's staff to return to its July 22 meeting with draft terms and conditions for purchasing water directly from the Carlsbad Desalination Project, currently being developed by Poseidon Resources.
The board's direction followed a presentation and discussion of three recommended options for the Water Authority's financial participation in the privately-owned seawater desalination plant. Other options considered by the board included Water Authority grants and loans to nine member agencies that contracted to purchase water from the project.
"The Board decided that the direct-purchase option provided the greatest likelihood the project will be built, and because it ensures all member agencies share equally in the cost and benefits of this reliable local water supply," said Claude A. "Bud" Lewis, chair of the Water Authority Board of Directors. "Direct purchase by the Water Authority is also the most fiscally responsible option to support the completion of this important regional project."For the full news release, click here.
State Water Project Allocations Increased to 50%
Late spring storms have allowed the Department of Water Resources to increase its final 2010 State Water Project allocation to 50% of requested amounts, up from the 45% announced May 20.
"Further refinements in our delivery estimates have allowed us to revise of delivery estimate to 50%, but our state will continue to suffer chronic water shortages until we improve our conveyance system, increase storage and resolve the complex environmental problems of the Delta," said DWR Director Mark Cowin.