Overview of San Diego region's water supply challenges and solutions. Presentation made to San Diego Water Tour held by Water Education Foundation on September 8, 2011.

1. Dennis A. Cushman
A
Assistant General Manager
September 8, 2011 1

2.  Wholesale water agency
created by Legislature in 1944
◦ 24 member agencies
◦ 36-member board of directors
36 member
◦ Serves 3.1 million people,
$186 billion economy
 S i area
Service
◦ 950,000 acres
◦ 97% of county’s population
county s
 Build, own and maintain large-
scale water infrastructure
2

3. Local Water Agencies
 Water Authority Camp Lakeside WD City of Santa Fe
secures supplies for Pendleton
Carlsbad National City*
Poway
Rainbow
ID
South Bay
24 local agencies MWD MWD Irrigation
District*
◦ 6 cities City of Del
Mar
M
City of
Oceanside
O id
Ramona
MWD
Vallecitos
WD
◦ 14 water or utility City of Olivenhain Rincon Del Valley
districts Escondido MWD Diablo
MWD
Center
MWD
◦ 3 irrigation districts Fallbrook
PUD
Otay Water
District
City of San
Diego
Vista ID
◦ 1 military base Helix WD Padre Dam
MWD
San
Dieguito
Yuima
MWD
WD
* Member of the Sweetwater Authority
3

4. LAKE
SHASTA
g y
San Diego County
LAKE imports ~70% of its
OROVILLE
water supply
State Water Project
ate oject
(Bay-Delta)
15%
Colorado River
53%
Local Supplies
and Conservation
32%
*Estimated
4

5. 55

6. 1991 2011(estimated) 2020
26 TAF 72 TAF 28 TAF 103 TAF
(5%) 80 TAF (12%) 80 TAF
(5%) (13%)
(13%) (10%) 44TAF
20 TAF (6%)
75 TAF (3%)
552 TAF
(95%) (12%) 56 TAF
190 TAF
(7%)
(24%)
27 TAF
Total = 578 TAF 285 TAF 231 TAF (4%)
(47%) 51 TAF (30%)
(8%)
48 TAF
(6%)
Total = 611 TAF Total = 779 TAF
Metropolitan Water District Recycled Water
Imperial Irrigation District Transfer Seawater Desalination
All American & Coachella Canal Lining Groundwater
Conservation (existing and additional) Local Surface Water
6

7.  Several hundred million
dollars invested since 1991
◦ 17 active non-potable recycling
projects countywide
◦ >10 MGD brackish groundwater
desalting
◦ Recycled water and groundwater
supplies to double by 2020
 Indirect Potable Reuse
 Local supplies to provide 30%
of the region’s water supply
by 2020
y
7

8.  Carlsbad Desalination Project
 Produce up to 56,000 AFY
 Cooperati e agreement with
Cooperative ith
Poseidon to begin negotiations to
purchase water from plant
 Camp Pendleton Project Encina Power Station, Carlsbad
 56,000 to 168,000 AFY
 Feasibility/technical studies under way
 Bi-national Desalination Project
 In conjunction with agencies in Nevada, Arizona and
Mexico
 Studying site in Baja California
8

9. Maintaining Water Use Efficiency
 State mandate for 20
percent reduction in water
use by 2020
 Maintain recent gains in
conservation
ti
◦ Regional water use down about
20% since 2007
 Efficiency needs to be social
norm Water efficient planting and rotating nozzle
E
Emphasis on outdoor
h i d
efficiency
◦ Market t a s o at o
a et transformation
9

10. IID and Canal Lining Deliveries 2003-2021
Acre-Feet
300,000
250,000
IID Water
W t
Transfer
200,000
Canal Lining
g
150,000
100,000
50,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Calendar Year
10

11.  $3.5 billion Capital Improvement Program (CIP)
◦ $1.5 billion Emergency Storage Project
◦ New and expanded surface storage
◦ Water treatment
◦ Pipelines
◦ Pump stations
◦ Power generation
◦ Aqueduct Protection Program
 Pipeline relining program
11

12. Major CIP Investments Since 1991
Pipelines
Pi li Pipe Regional Canal Pumping/
P i / Regional
R i l Hydro-
Relining Water Linings Control Water Electric
Storage Facilities Treatment
1991 2000-2013 2020 12

13. 13

14. Project: All American & Coachella Canal
Lining Projects
Complete: 2010 (AAC) and 2006 (CC)
Cost: $452 million total, including
$198 million from Water Authority
Benefits: 80,000 AF/Y for 110 Years
14

15. Project: Twin Oaks Water Treatment Plant
Complete: 2008
Cost: $179 million
Benefit: 100 MGD treated supply for region 15

16. Project: Olivenhain Dam & Reservoir
Complete: 2003
C l
Cost: $198 million
Benefit: 22,000 AF of storage
B fi 22 000
16

17. 17

18. Project: Lake Hodges Projects
Complete: 2012
Cost: $196 million
Benefits: 20,000 AF ESP storage; 40MW power
18

19. Project: San Vicente Pipeline & Tunnel
Complete: 2011
Cost: $459 million
Benefit: Improved Water Delivery
19

20. Project: San Vicente Dam Raise
Complete: 2013
Cost: $449 million
Benefit: Increase reservoir
capacity by 152,000 acre-feet 20
20

21. Rendering of dam raised by 117 feet
21
21

22. Project: Pipeline Relining Program
Complete: Ongoing
C l O i
Cost: $787 million
Benefit: Extended lif of major pipelines
B fit E t d d life f j i li
22

23. Imported Supply Challenges
 San Diego County is semi-arid region
◦ D years more common than wet years
Dry th t
 Supply reliability
◦ Bay-Delta
Bay Delta
◦ Colorado River
◦ Climate change
 Protecting ratepayers
◦ MWD rate challenge
23

24. Bay Delta
Bay-Delta Issues Need Resolution
 Pumping restrictions to protect
threatened species have cut deliveries
p
 Restrictions mitigated this year
◦ Extremely high river flows
Delta smelt
◦ Temporary judicial actions
 No long-term plan in place for water
reliability,
reliability ecosystem recovery
Central Valley
steelhead
Green sturgeon
Chinook salmon
Longfin smelt
24

25. Colorado River Supplies
 Drought 9 of last 11
years
 Lake Mead elevation
earlier this year: 1,082’
y ,
◦ Lowest level since 1930s
 Storage levels now rising
g g
Lake Mead – 2010  Several more wet years
needed for recovery
 Growing demand in
Southwest on river’s
limited supply
25

26. Potential Impacts from
Climate Change
Cli t Ch
 More rain, less
snow
◦ Decreases storage
held as snowpack
 Earlier snowmelt
◦ Runoff comes earlier
than needed
 Less weather
Lake Oroville – April 2010 predictability
 Water Authority
working with other
l d
utilities to study
effects and impacts
26

27.  Experiencing significant new challenges:
◦ Large rate increases
◦ Significant decline in water sales
 High cost of water
 20%x2020
 Economy
27

28. 800 2,000
-38%
1,800
700
1,600
600
1,400
500
1,200
000's/AF
$ /AF
400 1,000
800
300
600
200 Actual Sales (in 000's/AF)
400
All-In Treated Rate ($/AF)*
100 Projected High-Rate S
d h Scenario ($
($/AF)
) 200
Projected Low-Rate Scenario ($/AF)
0 0
20002001200220032004200520062007200820092010201120122013201420152016
Calendar Year
28

29. ,
700,000
619,407
600,000 556,592
491,924
500,000 455,456
,
410,320
0 320 422,285
400,000
Acre-feet
300,000
200,000
100,000
-
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Estimate Budget Budget
Municipal & Industrial Sales Agricultural Sales
29

30.  Two-Year 2010 & 2011 budget reductions: $6M
 Reduction in spot water purchases: $1.7M
R d ti i t t h $1 7M
 Selling stored water: $700,000
 Deferral of 14 CIP projects: $150 million
 Reducing staff 12% since 2008
◦ 33 3 FTE reduction in FY 12/FY 13 budget
33.3
30

31.  Biggest driver of Water Authority rates is
MWD’s rates and its rate structure
◦ Increased rates 75% since 2006
◦ Water Authority suing MWD over how it misallocates
water supply costs to transportation charges
 Water Authority buys transportation services from
MWD t move IID and C
to d Canal Li i
l Lining T
Transfer water
f t
 Significant impact to Water Authority ratepayers
31

32. MWD Impact on Wholesale Rates
Estimated CY 2012
Wholesale Costs per Household *
MWD Costs
Payments to MWD for
water and transportation
comprise 55% of the
$26.33
IID/QSA Costs
Water Authority wholesale cost of water
Treatment
$4.15
$4 15 QSA Water
$0.86 Supplies 8.6%
Water Authority
$4.42
Operating
Water Authority
Water Authority $12.24 C t 34 7%
Costs 34.7%
Facilities
TOTAL: $48/month
* Based upon 0.5 AF of consumption a year
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33. MWD Sales Decline & Rate Increases
80% of MWD’s revenues come from water sales
2,500,000 MWD’s Projected Sales in $2,000
2020 are 16% Lower than
$1,800
2000-2009 Average
2,000,000
2 000 000 $1,600
$1 600
-29%
$1,400
-feet
1,500,000 $1,200
ales in Acre-
$1,000
1,000,000 $800
$
$600
+75%
75%
Sa
500,000 $400
$200
- $0
Actual Sales, including wheeled supplies. Source: MWD Jan. 2011 Long Range Finance Plan
Projected. Source: MWD 2010 Integrated Resources Plan; includes wheeled supplies.
MWD Tier 1 Treated Water Rate. Source: Actual MWD published rate
Projected MWD Average Water Rate. Source: MWD Long-Range Finance Plan Forecast 2010-2020
Projected MWD Average Water Rate. Source: MWD 2010 Integrated Resources Plan (Buffer—MWD Developed 2020-2035)

34.  Over past two decades:
◦ Achieved greater supply diversification
◦ Secured 280,000 AF/YR of long-term reliable
new supplies from Colorado River
◦ Reduced reliance on MWD by 50%
 Helped offset MWD water shortages from 2009-
2011
◦ Achieved sustained water conservation
◦ Invested billions in new, major water supply
infrastructure
◦ Vastly improved water supply reliability to
protect region’s $186 billion economy and
quality of life for 3.1 million people
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35.  Visit our website: sdcwa.org
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