San Diego County
 Water Authority
               y
  2010 Update




                   1
Presentation Overview
Water Authority background
Water reliability strategy
 Supply diversification
 Capital Improvement P...
3
What Is the Water Authority?

Wholesale water agency
                  g    y
created by State Legislature in
1944
 24 mem...
Who Provides Your Water?
Individual customers
served by local retail                         Local Water Agencies
water ag...
Sources of San Diego County’s Water Supply


                       LAKE
                      SHASTA
                    ...
Imported Water Sources
Colorado Ri
C l   d River S
              Supplies
                  li                            ...
Supply Diversification
Capital Improvement Program




                                  8
Drought Headlines from 1990-91




                                 9
Response to Crisis: Long-Term
Strategy to Improve Reliability

Diversify supply sources
 Imported (transfers, canal lining...
Regional Water Supply Diversification
  g              pp y

  1991                           2010                        ...
Q
  Quantification Settlement Agreement
                             g

Colorado River QSA Supplies
               Q     p...
Groundwater and Recycled Water
                                     Recycled Water
                                       ...
Conservation
Comprehensive water
conservation programs
              programs,
incentives and school
programs since 1990s
...
Seawater Desalination

                                 Carlsbad Desalination Project
                                    ...
Capital Improvement Program
 $3.8 billion CIP (1989 – 2030)
  $1.5 billion Emergency Storage Program (ESP)
 Dozens of majo...
Water Treatment Plant
Located in Twin Oaks Valley
                          y
Treat 100 million gallons per
day
Meet needs...
Olivenhain Dam and Reservoir
Olivenhain Dam, Reservoir and Pump Station   Completed in 2003
                              ...
Lake Hodges Projects
Connects Hodges to
imported water system
i    t d   t      t
Provide 20,000 AF of
water storage for
e...
San Vicente Pipeline
11-mile pipeline
8.5-foot diameter
pp
pipeline
Connects San
Vicente Reservoir to
regional aqueduct
sy...
San Vicente Dam Raise
Raise dam height by
117 feet
Increase reservoir
capacity by 152,000
acre feet
acre-feet
Largest dam ...
Artist’s rendering: San Vicente Dam Raise
                                            22
23
Water Rates

     $             $$            $$$ $$$$
Colorado River   State Water     Spot Water
                       ...
Water Authority Rates 2011

Water Authority Board d t d
W t A th it B d adopted CY 2011 rates
                            ...
Cost of Water Drives Treated
              Water Rate* Increases
             “All-in” Increase
              All-in      ...
Wholesale Monthly Cost of Water
             to Households
          Estimated CY 2011
    Wholesale Costs per Household *...
Mitigating Rate Impacts –
    Water Authority Actions
Current budget eliminated more than a dozen
positions
$2.4M reductio...
Supply Challenges
      MWD Rates
   QSA Litigation




                    29
Supply Challenges
             pp y        g
Regulatory restrictions
 Fish protections limit State
 Water Project deliveri...
Bay-Delta Pumping Restrictions
       y          p g




 Delta smelt
                                        Central Vall...
How Restrictions Limit Deliveries from
            the Bay Delta
                Bay-Delta
                Regulatory Pump...
Supply Challenges
           pp y        g
                             Regulatory restrictions
                          ...
Response to Supply Challenges
    p          pp y        g

Water Shortage and
Drought Response Plan
Implementation
8% reg...
Region Succeeding in Saving Water

            September 2009 - August 2010
Acre-feet        Urban W t U *
               ...
San Diego County: 1991 vs 2010
                       vs.

                                                               ...
MWD Rate Challenge

Water Authority filed it i J
W t A th it fil d suit in June against MWD
                              ...
MWD Misallocating Its Costs




                              38
Impacts to Local Ratepayers




         *Based on 600,000 AF annual sales; 2021 figure includes
         $40B Delta fix s...
Impacts on Supply Reliability
                          By disguising true cost
                          of i
           ...
QSA Litigation
January 2010: Superior Court ruling invalidated 13
      y         p                 g
agreements
   Includ...
Co t u g Challenges
       Continuing C a e ges

Achieving Bay Delta fixes
           Bay-Delta
that restore reliability
R...
Summary
Region has significantly improved
water supply reliability over
past two decades
 Supply diversification is workin...
Questions

   San Diego County Water Authority
Speakers Bureau Requests & Information
    speakersbureau@sdcwa.org
       ...
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Water Authority Overview October 2010

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Overview of the Water Authority and its major programs and projects. Updated October 2010.

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Water Authority Overview October 2010

  1. 1. San Diego County Water Authority y 2010 Update 1
  2. 2. Presentation Overview Water Authority background Water reliability strategy Supply diversification Capital Improvement Program Budget and rates Key water issues Supply challenges MWD rates QSA liti ti litigation 2
  3. 3. 3
  4. 4. What Is the Water Authority? Wholesale water agency g y created by State Legislature in 1944 24 member agencies membe 36-member board of directors Se es 3.2 Serves 3 million peop e a d o people and region’s $174 billion economy Service area 950,000 acres 97% of county’s population 4
  5. 5. Who Provides Your Water? Individual customers served by local retail Local Water Agencies water agency Camp Pendleton Lakeside WD City of Poway Santa Fe ID Water Authority Carlsbad MWD National City* Rainbow MWD South Bay Irrigation secures supplies from District* outside the region for City of Del Mar City of Oceanside Ramona MWD Vallecitos WD 24 local agencies City of Olivenhain Rincon Del Valley 6 cities Escondido MWD Diablo Center 14 water/utility districts MWD MWD Fallbrook Otay Water City of San Vista ID 3 irrigation districts PUD District Diego 1 military base Helix WD Padre Dam San Yuima MWD Dieguito MWD WD * Member of the Sweetwater Authority 5
  6. 6. Sources of San Diego County’s Water Supply LAKE SHASTA San Diego County LAKE imports ~80% of its OROVILLE water supply State Water Project (Bay-Delta) 30% Colorado River 50% Local Supplies and Conservation 20% 6
  7. 7. Imported Water Sources Colorado Ri C l d River S Supplies li State Water Project Supplies Department of Interior California Department of Bureau of Reclamation Water Resources All-American and Coachella Canal Lining Projects Priority 1: Palo Verde Irrigation District State Water Project Contractors (27) Priority 2: Yuma Project Metropolitan Water District of Priority 3 I P i it 3:a Imperiali l Southern California Irrigation District 26 Other Contractors Priority 4 and 5a: Metropolitan Water District of Southern California San Diego County Water Authority 24 Local Retail Agencies and cities
  8. 8. Supply Diversification Capital Improvement Program 8
  9. 9. Drought Headlines from 1990-91 9
  10. 10. Response to Crisis: Long-Term Strategy to Improve Reliability Diversify supply sources Imported (transfers, canal lining projects) Local (groundwater, seawater desalination, l( d d li i conservation, recycling) $3.8 billi $3 8 billion capital improvement program it l i t Improve regional water delivery, storage and water treatment 10
  11. 11. Regional Water Supply Diversification g pp y 1991 2010 2020 5% 10% 6% 3% 4% 7% 11% 16% 3% 4% 95% 6% 6% 10% 10% 9% 23% 50% 22% Metropolitan Water District Conservation (2005 UWMP Goal) Imperial Irrigation District Transfer SBX 7-7 Additional Conservation Increment All American & Coachella Canal Lining Seawater Desalination Dry-Year Water Transfers y Local Surface Water Recycled Water Groundwater 11
  12. 12. Q Quantification Settlement Agreement g Colorado River QSA Supplies Q pp Imperial Irrigation District transfer 200,000 acre-feet*/year for 45 to 75 years Canal-lining projects C l li i j t 80,000 acre-feet**/year for 110 years Key to supply diversification strategy Canal-lining project C l li i j t Provide 165,000 acre-feet in 2010, help mitigate current shortage By 2021 will provide 30% of 2021, region’s supply Lining the Coachella Canal *At full implementation in 2021 ** Acre-foot = 325,900 gallons 12
  13. 13. Groundwater and Recycled Water Recycled Water 28,000 28 000 af/year today growing to today, 52,000 af/year by 2020 High-quality, drought-proof water supply 17 agencies in San Diego produce recycled water Primarily used for landscaping irrigation Groundwater 13,000 f/ 13 000 af/year t d today, growing t i to 53,000 af/year by 2020 San Diego does not have significant underground storage basins Brackish groundwater must be Sweetwater Authority’s groundwater desalinated desalination plant Six local agencies have groundwater projects 13
  14. 14. Conservation Comprehensive water conservation programs programs, incentives and school programs since 1990s 65,000 65 000 af/year today today, growing to 94,000+ by 2020 Cumulative savings: more C l ti i than 600,000 AF Water efficient planting and rotating nozzle Shifting emphasis g p from indoor to outdoor conservation 14
  15. 15. Seawater Desalination Carlsbad Desalination Project Produce up to 56,000 acre-feet annually Approved term sheet that will lead to water purchase agreement to buy output p g y p of plant Camp Pendleton Project 56,000 56 000 to 168,000 af/year 168 000 Feasibility studies under way Bi-national Desalination Project Encina Power Station, Carlsbad h d In conjunction with agencies in Nevada, Arizona and Mexico Studying site in Baja California 15
  16. 16. Capital Improvement Program $3.8 billion CIP (1989 – 2030) $1.5 billion Emergency Storage Program (ESP) Dozens of major projects – completed or under construction 2010 debt issuance of $627 million to continue funding CIP Olivenhain Reservoir and Lake Hodges 16
  17. 17. Water Treatment Plant Located in Twin Oaks Valley y Treat 100 million gallons per day Meet needs for up to 220,000 households Enables di t ib ti during E bl distribution d i emergencies Completed 2008 p 17
  18. 18. Olivenhain Dam and Reservoir Olivenhain Dam, Reservoir and Pump Station Completed in 2003 p Region’s first major new dam in 50 years 24,000 AF of storage 18
  19. 19. Lake Hodges Projects Connects Hodges to imported water system i t d t t Provide 20,000 AF of water storage for emergency use Generate up to 40 MW of electricity Enough for 26,000 homes Lake Hodges Pump Station Completion Date: Late- 2010/Early 2011 19
  20. 20. San Vicente Pipeline 11-mile pipeline 8.5-foot diameter pp pipeline Connects San Vicente Reservoir to regional aqueduct system Complete late-2010 Tunnel entrance preparation for pipe installation 20
  21. 21. San Vicente Dam Raise Raise dam height by 117 feet Increase reservoir capacity by 152,000 acre feet acre-feet Largest dam raise in United States Complete early 2013 Total project cost: $568 million 21
  22. 22. Artist’s rendering: San Vicente Dam Raise 22
  23. 23. 23
  24. 24. Water Rates $ $$ $$$ $$$$ Colorado River State Water Spot Water p Loss of Sales Water Project Transfers (Shortage) <2003 2003-2007 2008> Now Supply challenges make securing water more expensive Shift to more-expensive supplies is driving up the cost of water from MWD, the Water Authority’s largest supplier Water Authority passes increased costs to member agencies Member (retail) agencies pass costs to ratepayers Lower sales increasing unit cost ($/af) of water 24
  25. 25. Water Authority Rates 2011 Water Authority Board d t d W t A th it B d adopted CY 2011 rates t following public hearing in June Treated water rate – up 11.3% ($1,026/AF) 11 3% ($1 026/AF) Untreated water rate – up 14.7% ($811/AF) Primary drivers of rate increases: y Costs to purchase, deliver imported water Costs for operating, maintaining and financing regional water system t t 25
  26. 26. Cost of Water Drives Treated Water Rate* Increases “All-in” Increase All-in Water Authority Melded Supply Distribution Rate Increase $104/AF $65/AF MWD  Transportation p 75% 8% ($49) ($8) Storage 21% ($22) Customer  Service Supply 9% 62% ($9) ($65) Water Authority  25% ($16) *Municipal and Industrial Rate 26
  27. 27. Wholesale Monthly Cost of Water to Households Estimated CY 2011 Wholesale Costs per Household * p Cost of water purchases is 62.7% of the wholesale cost of water MWD Costs $23.70 $23 70 62.7% is the  h Cost of Water For an estimated $16.04/month the Water Authority: IID/QSA Costs $3.26 Delivering water and maintaining Water Authority  the system $4.09 Operating  Costs Rapidly diversifying the region’s Water Authority  37.3% is Water  water supplies $11.95 Authority Costs Capital Costs Providing in-region emergency water storage TOTAL: $43/month * Based upon 0.5 AF of consumption a year Developing in-region water storage D l i i i t t capacity 27
  28. 28. Mitigating Rate Impacts – Water Authority Actions Current budget eliminated more than a dozen positions $2.4M reduction made mid-year in FY 2010 & 2011 Reduction in spot water purchases Rate stabilization draw – up to $10.7M $10 7M MWD rate challenge Lawsuit challenging MWD’s rates and how they’re allocated 28
  29. 29. Supply Challenges MWD Rates QSA Litigation 29
  30. 30. Supply Challenges pp y g Regulatory restrictions Fish protections limit State Water Project deliveries j Lingering effects of drought Storage still recovering Lake Oroville – April 2010 Effects of climate change 30
  31. 31. Bay-Delta Pumping Restrictions y p g Delta smelt Central Valley steelhead Longfin smelt Banks Pumping Plant Green sturgeon Chinook salmon State Water Project 31
  32. 32. How Restrictions Limit Deliveries from the Bay Delta Bay-Delta Regulatory Pumping Restrictions JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Salmon S l Delta Smelt Longfin Smelt 32
  33. 33. Supply Challenges pp y g Regulatory restrictions g y Fish protections limit State Water Project deliveries Lingering effects of drought Lake Oroville – April 2010 Storage still recovering Heading into another dry winter? (La Niña?) Effects of climate change 33
  34. 34. Response to Supply Challenges p pp y g Water Shortage and Drought Response Plan Implementation 8% regional target beginning July 1, 2009 1 Target in effect through June 30, 2011 30 34
  35. 35. Region Succeeding in Saving Water September 2009 - August 2010 Acre-feet Urban W t U * U b Water Use* 18% below 600,000 FYs FY 08/09 602,300 11% below 550,000 FYs 09/10 552,100 552 100 500,000 493,100 450 000 450,000 400,000 2007/08 2008/09 2009/10 *12-month periods overlap two fiscal years. 35
  36. 36. San Diego County: 1991 vs 2010 vs. $174 $1026 3.2 1.3 578 $323 2.5 1.08 $65 566 1991 2010 Water use (thousand acre-feet) Population (millions) Cost of water per acre-foot (full p ( Jobs (millions) ( ) service treated water rate) Gross Domestic Product (billions) 36
  37. 37. MWD Rate Challenge Water Authority filed it i J W t A th it fil d suit in June against MWD i t over its 2011-2012 rates Violates California law, standard practices law MWD improperly overcharges for transporting water through its facilities g MWD improperly subsidizes the price of water it sells 37
  38. 38. MWD Misallocating Its Costs 38
  39. 39. Impacts to Local Ratepayers *Based on 600,000 AF annual sales; 2021 figure includes $40B Delta fix share 39
  40. 40. Impacts on Supply Reliability By disguising true cost of i f imported water, t d t MWD discourages local supply development Disincentive to pursuing conservation and local supply projects Disincentive to transfers that require use of MWD’s facilities Desalination membranes These kinds of projects help protect region from supply shortages 40
  41. 41. QSA Litigation January 2010: Superior Court ruling invalidated 13 y p g agreements Includes IID transfer and canal-lining agreements Ruling based on single sentence in one agreement State’s obligation to fund Salton Sea mitigation found unconstitutional Water Authority and other agencies appealed ruling Temporary stay allowing transfers to continue Decision expected in 2011 p All-American Canal 41
  42. 42. Co t u g Challenges Continuing C a e ges Achieving Bay Delta fixes Bay-Delta that restore reliability Rising water rates g Sustaining new water use ethic Resolving MWD and QSA disputes p Water bond timing/passage? Bay-Delta waterways 42
  43. 43. Summary Region has significantly improved water supply reliability over past two decades Supply 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 following natural disaster Long-term strategy and investment protects region for generations to come 43
  44. 44. Questions San Diego County Water Authority Speakers Bureau Requests & Information speakersbureau@sdcwa.org (858) 522-6708 522 6708 44

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