Energy Pricing Related to theCarlsbad Seawater DesalinationProject                    Water Planning Committee Meeting    ...
Cost Drivers1. The Capital Costs are                             2. Operating Cost is driven by:   driven by:             ...
The Water Unit Price with Conveyance and WaterAuthority Improvements                                                      ...
Energy and Water Energy is an imbedded cost in all water supplies   Imported water   Local supplies SWP is the single ...
Energy Usage in kWh and Energy Cost $/AF  Imported and Local Supply                Raw water   Supply/       Distribu-    ...
2020                     80 TAF (10%)                                                                                    D...
What is the Energy Price Risk of Desalinated  Water? Incremental Energy use of Carlsbad Desal Project   30% or 1,200 kW/...
What is the Energy Price Risk of DesalinatedWater? Water Authority is subject to energy price risk with or without Desali...
Analysis of Energy Pricing inDraft Water Purchase Agreement            (WPA)
Energy Pricing for Carlsbad Seawater Desalination Facility
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Energy Pricing for Carlsbad Seawater Desalination Facility

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Presentation at July 26 Board of Directors Meeting. This presentation was provided by Water Resources Director Ken Weinberg on potential energy use and pricing for the Carlsbad Seawater Desalination facility.

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Energy Pricing for Carlsbad Seawater Desalination Facility

  1. 1. Energy Pricing Related to theCarlsbad Seawater DesalinationProject Water Planning Committee Meeting July 26, 2012 1 1
  2. 2. Cost Drivers1. The Capital Costs are 2. Operating Cost is driven by: driven by:  Terms of Poseidon’s O&M  Poseidon’s Capital Agreement with IDE 52% 24% Budget  Other Water Authority  Bond Issuance operating expenses Non-  Negotiated Equity Electricity Return Operating  Conveyance 3. The Electricity Charge Capital Costs Pipeline Costs is driven by:  Water Authority Cost  Terms of Poseidon’s system Electricity O&M agreement improvements with IDE Charge The Capital Charge is  SDG&E rates fixed at a pre-  Water Authority’s established escalation option to select rate 23% supplier The Electricity Charge will vary with electricity prices 2
  3. 3. The Water Unit Price with Conveyance and WaterAuthority Improvements Fix. Elec $85/AF Fixed Costs Debt Service Equity Fixed Charge Charge O&M Var. O&M VariableVariable Costs Electricity $406/AF Conveyance Conveyance Water AuthorityIndirect Costs Improvements TO Ineff. Twin Oaks $2,062 - $2,329 Inefficiencies Total 3
  4. 4. Energy and Water Energy is an imbedded cost in all water supplies  Imported water  Local supplies SWP is the single largest user of energy in California  3,200 kW/Hr per acre foot  50% of the FY 2012- 2013 SWP payment  $238 per AF in electricity cost A D Edmonston Pumping Plant Largest SWP Pump Station 4
  5. 5. Energy Usage in kWh and Energy Cost $/AF Imported and Local Supply Raw water Supply/ Distribu- Total Supply $/AF conveyance Treatment tion (rounded)Carlsbad 3,750 1,530 5,300 $491DesalinationProjectState Water 3,200 260-490 230-390 3,700-4,100 $238ProjectRecycled 2,500-4,230 230-390 2,700-4,600 $300-$500Water (IPR)Brackish 980-1,630 230-390 1,200-2,000 $120-$200Water 5
  6. 6. 2020 80 TAF (10%) DESAL 56 TAF $491 /AF (7%)190 TAF (24%) $238 /AF SWP 231 TAF 115,000 AF (30%) $238 /AF Water Authority Supplies = 557 TAF Member Agency Supplies & Conservation= 222 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
  7. 7. What is the Energy Price Risk of Desalinated Water? Incremental Energy use of Carlsbad Desal Project  30% or 1,200 kW/hr per acre foot above imported supply Carlsbad Desalination would be smallest part of Water Authority future sources of supply  < = 10% of supplies sold to member agencies  30% of 10% of supplies= 3% more energy related to WA supply  Price risk directly related to desalination moderated by melding with 90% of other sources of supply 8
  8. 8. What is the Energy Price Risk of DesalinatedWater? Water Authority is subject to energy price risk with or without Desalination  Little/no control over managing energy prices for imported supplies  Amount of energy consumed in Carlsbad project guaranteed by Poseidon in WPA 9
  9. 9. Analysis of Energy Pricing inDraft Water Purchase Agreement (WPA)

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