Water Authority Board Approves Terms and Conditions for Negotiating Carlsbad Desalination Project Water Purchase Agreement
The San Diego County Water Authority Board of Directors today approved key terms for purchasing water from the nation's largest seawater desalination facility in Carlsbad.
Today's action enables Water Authority staff to begin negotiating specific elements for a water purchase agreement with Poseidon Resources, the private firm developing the Carlsbad Desalination Project. These elements include water purchase price, allocation of risk and options to eventually purchase the project's pipeline and the entire desalination plant.
Under terms agreed to by Poseidon and the Water Authority, before negotiations begin on a final agreement, Poseidon must secure sufficient financial commitments from private investors to meet requirements for fully funding project construction. In addition, prior to Water Authority Board approval of a final agreement, Poseidon must execute all agreements for construction and operation of the project and finalize the documents needed to finance the project in the bond market.
"These terms are not a binding contract, but provide a solid foundation for reaching a water purchase agreement that keeps this important regional water supply project moving forward," said Claude A. "Bud" Lewis, Water Authority Board Chair. "They also will protect our ratepayers' interests by assigning appropriate upfront risks of building, financing, and operating the plant to the private sector, while providing for eventual public ownership of the project."
Water Authority Reports Regional Water Use Down Nearly 13 Percent Over Last Year
Residential and business water use in San Diego County fell 12.8 percent during the first year of regional water shortages and mandatory water use restrictions, according to a report provided today to the San Diego County Water Authority Board of Directors.
The savings exceeded the 8 percent mandatory target that was in effect for July 2009 through June 2010. As a result of the region's conservation success, the region will avoid financial penalties from the Metropolitan Water District of Southern California and the additional conserved water will be available to meet future needs. MWD, the Water Authority's largest supplier, can penalize its customers for exceeding their designated allocations of MWD water supplies during times of shortage.
"The people of our region should be very proud of their efforts to save water over the last year," said Claude A. "Bud" Lewis, Water Authority Board Chair. "Across the county, we have seen a strong commitment to becoming more efficient in how we use water."
All-American Canal Lining Named Public Works Project of the Year
The All-American Canal Lining Project (AACLP), a major water conservation project whose benefits include improving San Diego County's water supply reliability, has won the American Public Works Association (APWA) 2010 Environmental Public Works Project of the Year award for projects greater than $75 million. APWA recognized the project as a model for creating partnerships between local and state water agencies to invest in California water supply development.
The AACLP replaced 23 miles of earthen canal in Imperial County with a concrete-lined canal to save water previously lost to seepage. Major project partners included the San Diego County Water Authority, the Imperial Irrigation District (IID) the state Department of Water Resources and the Bureau of Reclamation. For the project, the state of California and the Water Authority shared the nearly $300 million in construction costs, while IID provided construction management and ongoing operation and maintenance of the canal. The Bureau of Reclamation maintains ownership of the canal.
For more details, click here