Download - Water Authority Overview October 2010
San Diego County Water Authority y
2010 Update
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Presentation Overview
Water Authority background
Presentation Overview
Water Authority backgroundWater reliability strategy
Supply diversificationCapital Improvement Program
Budget and ratesKey water issuesKey water issues
Supply challengesMWD ratesQSA liti tiQSA litigation
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What Is the Water Authority?
Wholesale water agency g ycreated by State Legislature in 1944
24 membe agencies24 member agencies36-member board of directorsServes 3.2 million people and Se es 3 o peop e a dregion’s $174 billion economy
Service area950,000 acres97% of county’s population
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Who Provides Your Water?Who Provides Your Water? Individual customers served by local retail Local Water Agenciesserved by local retail water agencyWater Authority
Local Water AgenciesCamp Pendleton
Lakeside WD City of Poway
Santa Fe ID
Carlsbad MWD
National City* Rainbow MWD
South Bay Irrigation
secures supplies from outside the region for 24 local agencies
MWD MWD Irrigation District*
City of Del Mar
City of Oceanside
Ramona MWD
Vallecitos WD
24 local agencies6 cities14 water/utility districts3 irrigation districts
City of Escondido
Olivenhain MWD
Rincon Del Diablo MWD
Valley Center MWD
Fallbrook Otay Water City of San Vista ID3 irrigation districts1 military base
PUD District Diego
Helix WD Padre Dam MWD
San Dieguito WD
Yuima MWD
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* Member of the Sweetwater Authority
Sources of San Diego County’s Water Supply
LAKELAKESHASTA
LAKEOROVILLE
San Diego County imports ~80% of its water supply
State Water Project(Bay-Delta)
30%
water supply
30%Colorado River
50%
Local Supplies and Conservation
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and Conservation 20%
C l d Ri S li
Imported Water SourcesImported Water Sources
Department of Interior Bureau of Reclamation
California Department of Water Resources
Colorado River Supplies State Water Project Supplies
All-American and Coachella Canal Lining Projects
Priority 1: Palo Verde State Water Project
Contractors (27)Metropolitan Water District of
Southern California
Irrigation District
Priority 2: Yuma Project
P i it 3 I i l Southern California
26 Other Contractors
Priority 3:a Imperial Irrigation District
Priority 4 and 5a: Metropolitan Water DistrictMetropolitan Water District
of Southern California
San Diego County Water AuthoritySan Diego County Water Authority
24 Local Retail Agencies and cities
Supply DiversificationSupply DiversificationCapital Improvement Program
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Drought Headlines from 1990-91
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Response to Crisis: Long-Term Strategy to Improve ReliabilityStrategy to Improve Reliability
Diversify supply sourcesDiversify supply sourcesImported (transfers, canal lining projects)
l ( d d li iLocal (groundwater, seawater desalination, conservation, recycling)
$3 8 billi it l i t$3.8 billion capital improvement programImprove regional water delivery, storage and water treatmenttreatment
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Regional Water Supply Diversificationg pp y
2010 20201991
95%
6%7%
6%
10%
11%
5%
16% 3%3%
4%4%
10%6%
23%
9%
10%10%
Metropolitan Water District Conservation (2005 UWMP Goal)
23%
22%50%
Imperial Irrigation District Transfer
All American & Coachella Canal Lining Seawater Desalination
Local Surface WaterDry-Year Water Transfers
SBX 7-7 Additional Conservation Increment
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Local Surface Water
Recycled Water
Groundwater
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Quantification Settlement Agreement Q g
Colorado River QSA SuppliesQ ppImperial Irrigation District transfer
200,000 acre-feet*/year for 45 to 75 years
C l li i j tCanal-lining projects80,000 acre-feet**/year for 110 years
Key to supply diversification strategy C l li i j tstrategy
Provide 165,000 acre-feet in 2010, help mitigate current shortage
By 2021 will provide 30% of
Canal-lining project
By 2021, will provide 30% of region’s supply
Lining the Coachella Canal
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*At full implementation in 2021** Acre-foot = 325,900 gallons
Groundwater and Recycled Water
Recycled Water 28 000 af/year today growing to
Groundwater and Recycled Water
28,000 af/year today, growing to 52,000 af/year by 2020High-quality, drought-proof water supply17 agencies in San Diego produce17 agencies in San Diego produce recycled waterPrimarily used for landscaping irrigation
Groundwater 13 000 f/ t d i t13,000 af/year today, growing to 53,000 af/year by 2020San Diego does not have significant underground storage basinsBrackish groundwater must beBrackish groundwater must be desalinatedSix local agencies have groundwater projects
Sweetwater Authority’s groundwater desalination plant
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ConservationComprehensive waterconservation programs
Conservation
conservation programs, incentives and school programs since 1990s65 000 af/year today65,000 af/year today, growing to 94,000+ by 2020C l ti iCumulative savings: more than 600,000 AF Shifting emphasis
Water efficient planting and rotating nozzleg p
from indoor tooutdoor conservation
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Seawater Desalination
Carlsbad Desalination ProjectCarlsbad Desalination ProjectProduce up to 56,000 acre-feet annuallyApproved term sheet that will lead to water purchase agreement to buy output p g y pof plant
Camp Pendleton Project56 000 to 168 000 af/year56,000 to 168,000 af/year Feasibility studies under way
Bi-national Desalination Projecth dIn conjunction with agencies in Nevada,
Arizona and MexicoStudying site in Baja California
Encina Power Station, Carlsbad
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Capital Improvement ProgramCapital Improvement Program$3.8 billion CIP (1989 – 2030)
$1.5 billion Emergency Storage Program (ESP)
Dozens of major projects – completed or under constructionconstruction2010 debt issuance of $627 million to continue funding CIPfunding CIP
Olivenhain Reservoir and Lake Hodges 16
Water Treatment PlantWater Treatment Plant
Located in Twin Oaks Valleyy
Treat 100 million gallons per day
Meet needs for up to 220,000 households
E bl di t ib ti d iEnables distribution during emergencies
Completed 2008p
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Olivenhain Dam and Reservoir
Completed in 2003Olivenhain Dam, Reservoir and Pump Station p
Region’s first major new dam in 50 years
24,000 AF of storage
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Lake Hodges ProjectsConnects Hodges to i t d t t
Lake Hodges Projects
imported water systemProvide 20,000 AF of water storage forwater storage for emergency useGenerate up to 40 MWGenerate up to 40 MW of electricity
Enough for 26,000 homes
Completion Date: Late-2010/Early 2011
Lake Hodges Pump Station
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San Vicente Pipeline
11-mile pipeline
San Vicente Pipeline
8.5-foot diameter pipelinep p
Connects San Vicente Reservoir to regional aqueduct system
Complete late-2010
20Tunnel entrance preparation for pipe installation
San Vicente Dam RaiseRaise dam height by 117 feet
Increase reservoir capacity by 152,000 acre-feetacre feet
Largest dam raise in United States
Complete early 2013
Total project cost:Total project cost: $568 million
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Artist’s rendering: San Vicente Dam Raise
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Water RatesWater Rates
$ $$ $$$ $$$$$ $$ $$$ $$$$Colorado River State Water Spot Water Loss of Sales
Water ProjectpTransfers (Shortage)
<2003 2003-2007 2008> Now
Supply challenges make securing water more expensiveShift to more-expensive supplies is driving up the cost of water from MWD, the Water Authority’s largest supplierWater Authority passes increased costs to member agenciesMember (retail) agencies pass costs to ratepayers
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Member (retail) agencies pass costs to ratepayersLower sales increasing unit cost ($/af) of water
Water Authority Rates 2011Water Authority Rates 2011
W t A th it B d d t d CY 2011 tWater Authority Board adopted CY 2011 rates following public hearing in June
Treated water rate – up 11 3% ($1 026/AF)Treated water rate up 11.3% ($1,026/AF)Untreated water rate – up 14.7% ($811/AF)
Primary drivers of rate increases:yCosts to purchase, deliver imported waterCosts for operating, maintaining and financing regional
t twater system
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Cost of Water Drives Treated Water Rate* IncreasesWater Rate* Increases
“All-in” Increase Water Authority Melded Supply
MWD 75%
All-in Increase Distribution
$104/AF
Water Authority Melded Supply Rate Increase
$65/AFTransportation 75%
($49)
Storage
p8%($8)
21%($22)
Supply62%($65)
Customer Service9%($9)
Water Authority 25%($16)
26*Municipal and Industrial Rate
Wholesale Monthly Cost of Water to Households
Cost of water purchases isEstimated CY 2011
Wholesale Costs per Household *
to Households
Cost of water purchases is 62.7% of the wholesale cost of water
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$23 70MWD Costsh For an estimated $16.04/month
the Water Authority:
Delivering water and maintaining$3.26
$23.70
IID/QSA Costs
62.7% is the Cost of Water
Delivering water and maintaining the system
Rapidly diversifying the region’s water supplies
$3.26
Water Authority Operating Costs
$4.09
Water Authority 37.3% is Water water supplies
Providing in-region emergency water storage
D l i i i t t
$11.95Water Authority
Capital Costs Authority Costs
TOTAL: $43/monthDeveloping in-region water storage capacity
* Based upon 0.5 AF of consumption a year
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Mitigating Rate Impacts –Water Authority ActionsWater Authority Actions
Current budget eliminated more than a dozen positions$2.4M reduction made mid-year in FY 2010 & 20112011Reduction in spot water purchasesRate stabilization draw – up to $10 7MRate stabilization draw up to $10.7MMWD rate challenge
Lawsuit challenging MWD’s rates and how they’re allocated
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Supply ChallengesMWD RatesMWD Rates
QSA Litigation
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Supply Challengespp y g
Regulatory restrictionsRegulatory restrictionsFish protections limit State Water Project deliveriesj
Lingering effects of droughtdroughtStorage still recovering Lake Oroville – April 2010
Effects of climate change
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Bay-Delta Pumping Restrictionsy p g
Central Valley steelhead
Delta smelt
Longfin smelt
Banks Pumping PlantState Water Project Chinook salmonGreen sturgeon
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State Water Project
How Restrictions Limit Deliveries from the Bay Deltathe Bay-Delta
Regulatory Pumping RestrictionsJAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
S l
Regulatory Pumping Restrictions
Salmon
Delta Smelt
Longfin Smelt
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Supply Challengespp y g
Regulatory restrictionsg yFish protections limit State Water Project deliveries
Lingering effects of droughtdroughtStorage still recoveringLake Oroville – April 2010
Heading into another dry winter? (La Niña?)
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Effects of climate change
Response to Supply Challengesp pp y g
Water Shortage andWater Shortage and Drought Response Plan ImplementationImplementation
8% regional target beginning July 1 2009beginning July 1, 2009
Target in effect through June 30 2011June 30, 2011
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Region Succeeding in Saving Water
September 2009 - August 2010 U b W t U *
600,000
Acre-feet
11%
Urban Water Use*18% below
FY 08/09600,000
550,000
11% below
FYs 09/10
FYs 08/09602,300
552 100500,000
450 000
552,100
493,100450,000
400,000 2009/102008/092007/08
*12-month periods overlap two fiscal years. 35
San Diego County: 1991 vs 2010San Diego County: 1991 vs. 2010
$174$174$1026
578 566$651.081.3
2.53.2
$323
1991 20101991 2010Water use (thousand acre-feet)
Jobs (millions)
Population (millions)
Cost of water per acre-foot (full
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Gross Domestic Product (billions)
( )p (service treated water rate)
MWD Rate ChallengeMWD Rate Challenge
W t A th it fil d it i J i t MWDWater Authority filed suit in June against MWD over its 2011-2012 ratesViolates California law standard practicesViolates California law, standard practicesMWD improperly overcharges for transporting water through its facilities gMWD improperly subsidizes the price of water it sells
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MWD Misallocating Its CostsMWD Misallocating Its Costs
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Impacts to Local RatepayersImpacts to Local Ratepayers
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*Based on 600,000 AF annual sales; 2021 figure includes $40B Delta fix share
Impacts on Supply ReliabilityImpacts on Supply ReliabilityBy disguising true cost f i t d tof imported water,
MWD discourages local supply development
Disincentive to pursuing conservation and local supply projectsDisincentive to transfers that require use of MWD’s facilities
These kinds of projects help protect region
Desalination membraneshelp protect region from supply shortages
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QSA LitigationQSA Litigation
January 2010: Superior Court ruling invalidated 13 y p gagreements
Includes IID transfer and canal-lining agreementsRuling based on single sentence in one agreementRuling based on single sentence in one agreement
State’s obligation to fundSalton Sea mitigation foundunconstitutional
Water Authority and otheragencies appealed ruling
Temporary stay allowingTemporary stay allowing transfers to continue
Decision expected in 2011
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p
All-American Canal
Continuing ChallengesCo t u g C a e ges
Achieving Bay-Delta fixesAchieving Bay Delta fixes that restore reliability
Rising water ratesg
Sustaining new water use ethic
Resolving MWD and QSA disputesp
Water bond timing/passage? Bay-Delta waterways
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SummaryRegion has significantly improved
Summary
water supply reliability over past two decadesSupply diversification is workingSupply diversification is working
Regional shortage level is lower because of diversified supply
Historic investments in major regional water infrastructure
$1.5 billion Emergency Storage Project protects region$1.5 billion Emergency Storage Project protects region following natural disaster
Long-term strategy and investment protects region for generations to comefor generations to come
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QuestionsQuestionsQuestionsQuestions
San Diego County Water AuthoritySan Diego County Water Authority Speakers Bureau Requests & Information
[email protected](858) 522-6708(858) 522 6708
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