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San Diego regional water quality regulators issued a new permit for the development of permanent, stand-alone seawater intake and discharge facilities at the Carlsbad Desalination Plant. Photo: Water Authority

Fitch Boosts Desalination Plant Bond Rating

Bonds from the Carlsbad Desalination Plant and pipeline were upgraded to BBB and given a stable outlook in a new report from Fitch Ratings, affirming the project’s sound management and its ability to provide a stable, reliable source of drinking water to the San Diego region.

As the largest, most technologically advanced and energy-efficient plant of its kind in the nation, the Claude “Bud” Lewis Carlsbad Desalination Plant’s stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.

That partnership will continue under a transfer of ownership from Orion Water Partners to Aberdeen Standard Investments approved Thursday by the Water Authority’s Board of Directors. The transfer – made public in June – will not alter day-to-day operations at the Carlsbad facility or create a fiscal impact to the Water Authority.

Poseidon Water continues to manage desalination facility

The plant will remain governed by terms of the 2012 Water Purchase Agreement between Poseidon Water and the Water Authority. That 30-year agreement requires Poseidon to obtain the Water Authority’s written consent of the transaction and to reimburse the Water Authority for its costs related to consideration of the consent request. Under the WPA, the Water Authority agreed to purchase between 48,000 acre-feet and 56,000 acre-feet of water from the desalination plant each year at a price established by the contract.  At the end of the 30-year term the Water Authority can assume facility ownership for $1.

“We are honored that maintaining Poseidon Water as the facility manager was integral to the Water Authority’s approval of the ownership transfer and by the Water Authority’s acknowledgement of our exemplary stewardship of this valuable resource,” said Carlos Riva, CEO of Poseidon Water. “We look forward to working alongside our new partners to continue providing the San Diego region with a climate-resilient drinking water supply and ensuring the plant continues its strong operations.”

Desalination plant is ‘hedge against drought’

Water Authority Board Chair Jim Madaffer said the desalination plant is a valuable asset that provides high-quality water, a hedge against drought and insurance against earthquakes that could disrupt imported water deliveries. “With more than 50 billion gallons of water produced and counting, the Carlsbad plant is a critical part of our region’s infrastructure – and we don’t expect the sale to change that in any way,” he said. “In fact, we anticipate many more years of productive partnering with Poseidon.”

The Carlsbad Desalination Plant has met approximately 10% of the San Diego region’s water needs. The planned construction of new, technologically advanced and environmentally sensitive intake and discharge facilities will further enhance operations.

Higher ratings expected to save ratepayers money

Plant partners also praised the improved ratings for the desal plant and the associated pipeline by Fitch Ratings, which upgraded bonds from BBB- to BBB based on the plant’s strong operational record, updated financing projections for capital improvements, and Fitch’s expectation that the positive trend in financial and operational performance will continue.

Also this week, Moody’s affirmed its Baa3 rating for the plant and pipeline bonds. When those bonds are refinanced, higher ratings are expected to save ratepayers money by lowering the interest rate paid on the debt.

Since its inception as a public-private partnership, the Carlsbad facility has received numerous national and international awards.

The P3 approach allowed the Water Authority to develop new, capital-intensive, public-serving infrastructure without incurring debt or negatively affecting bond ratings, a fact recognized in 2016 when S&P raised the Water Authority’s credit rating to AAA citing, in part, the successful delivery of the Carlsbad facility.

Positive Operating Performance Boosts Desal Plant Bond Rating

Carlsbad, Calif. (October 24, 2019) – Bonds from the Carlsbad Desalination Plant and pipeline were upgraded to BBB and given a stable outlook in a new report from Fitch Ratings, affirming the project’s sound management and its ability to provide a stable, reliable source of drinking water to the San Diego region. As the largest, most technologically advanced and energy-efficient plant of its kind in the nation, the Claude “Bud” Lewis Carlsbad Desalination Plant’s stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.

That partnership will continue under a transfer of ownership from Orion Water Partners to Aberdeen Standard Investments approved Thursday by the Water Authority’s Board of Directors. The transfer – made public in June – will not alter day-to-day operations at the Carlsbad facility or create a fiscal impact to the Water Authority.

Here’s What You Can (And Can’t) Do About PFAS Contamination In Your Water

After The Times reported last week that nearly 300 drinking water wells and other water sources in California had been contaminated with toxic chemicals linked to cancer, readers wanted to know what they could do. For many, it was the first time they had read about this class of chemicals, called perfluoroalkyl and polyfluoroalkyl substances — or PFAS. We talked to industry experts, and the following are their best answers to some of the most often-asked questions we received.

West Basin Water District Releases Final EIR For El Segundo Desalination Plant

West Basin Municipal Water District released on Wednesday, Oct. 23, the final environmental impact report for an El Segundo desalination plant that would convert 20 million gallons per day of seawater into fresh drinking water.

The plant would sit on up to 13 acres next to the El Segundo Generating Station, at 301 Vista del Mar.

The final environmental report includes responses to more than 200 questions submitted during a 91-day public review period that ended June 25, 2018. The district board will consider certifying the report at a special board meeting at 3 p.m. Nov. 18 at Carson Event Center.

Vallecitos Water District ‘Work We Do’ Videos Connect With Community

The Vallecitos Water District is moving beyond traditional bill mailers and tri-fold brochures to communicate with its customers in a more effective and dynamic way by using video.

Vallecitos Board President Hal Martin conceived the idea to create “Work We Do” videos to help customers see and understand first hand the complex work Vallecitos water professionals perform to ensure reliable water and wastewater services. Viewers see and hear from the workers in the field as they complete tasks such as replacing outdated equipment or using smoke testing to detect sewer leaks and protect the environment.

 

Vallecitos Water District Senior Construction Systems Worker Steven Klein hosts the latest "Work We Do" video, describing his team working on a valve replacement. Photo: Vallecitos Water District

Vallecitos Water District ‘Work We Do’ Videos Connect With Community

The Vallecitos Water District is moving beyond traditional bill mailers and tri-fold brochures to communicate with its customers in a more effective and dynamic way by using video.

Vallecitos Board President Hal Martin conceived the idea to create “Work We Do” videos to help customers see and understand first hand the complex work Vallecitos water professionals perform to ensure reliable water and wastewater services. Viewers see and hear from the workers in the field as they complete tasks such as replacing outdated equipment or using smoke testing to detect sewer leaks and protect the environment.

“I’ve seen the quality of staff videos and I realized it was the perfect way to show our customers exactly what we do,” said Martin of the series and the initiative.

Watching crews in action providing the community with reliable drinking water and wastewater services, protecting the environment, and developing the next generation of water workers, makes customers better informed citizens about the area’s vital infrastructure in a transparent way.

The video series also includes helpful information such as how to read water meters.

Online tools transforming community outreach efforts

Vallecitos Water District maintenance professionals perform a valve replacement project featured in the district's latest Work We Do video. Photo: Vallecitos Water District

Vallecitos Water District maintenance professionals perform a valve replacement project featured in the district’s latest Work We Do video. Photo: Vallecitos Water District

“We’re working to change our Public Information Department and keep up with current technology,” said Chris Robbins, Vallecitos public information and conservation supervisor.

Robbins said the goal is to feature each department within the district and focus on topics that lend themselves to visual communication. Videos run three minutes or less to keep the audience engaged.

The latest ‘Work We Do’ video in the series features a recent valve replacement

Finished videos are posted to the district website, YouTube, Facebook and Twitter. The videos can also be seen on the City of San Marcos news channel, San Marcos TV. Videos are also shared through water industry news websites such as Water News Network.

Alicia Yerman, a Vallecitos public information representative, shoots and edits the video series. She schedules time to join crews at work when performing a specific task. She also plays talent scout, finding a knowledgeable employee who can describe the work on camera.

Not all staff want to talk, but Yerman is able to coax at least one Vallecitos staff member to be the ‘on camera talent,’ and she also has a knack for bringing out their best. She finds ways to make staff more comfortable being on camera—either by asking questions or placing staff members in comfortable settings.

Yerman and Public Information Representative Lisa Urabe were recently certified as drone pilots. Future videos will feature district work from a bird’s eye point of view.