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Affordability-San Diego County Water Authority-Esquivel

Water Affordability Focus of Water Authority Roundtable

Water affordability for ratepayers was the topic of discussion during a legislative roundtable Thursday at the San Diego County Water Authority.

The Water Authority convened state, regional and local officials in search of winning strategies for enhancing water affordability for ratepayers across the county and the state.

Water agency managers, board members, elected officials and their representatives from throughout the county joined E. Joaquin Esquivel, chair of the State Water Resources Control Board, to assess and address water affordability issues.

Esquivel was appointed to the Water Resources Control Board by Governor Jerry Brown in March 2017. In February 2019, Governor Gavin Newsom named Esquivel chair of that five-member board, to which he was reappointed in 2021.

During the roundtable, Esquivel said maintaining water affordability and access to safe water for Californians is challenged by pressures that include aging infrastructure and climate change.

“How to sustain our systems in the next 10, 20, 50 years is a complex issue, but we need to collectively expand access, while maintaining affordability and supply,” he said.

Water affordability and infrastructure projects

Esquivel said state loans to water projects statewide help water affordability and access to a safe, clean supply.

“Water has created the wealth of this state, and water supply investments made here are examples of what needs to be done,” said Esquivel, referring to successful supply diversification investments by the Water Authority and its 24 member agencies.

He also discussed the need for additional water infrastructure projects – including desalination, groundwater recharge, and potable reuse, and an increase in funding sources for those projects – and the importance of federal funding to help ensure access to safe and affordable water for all communities.

Water Affordability-Joaquin Esquivel-San Diego County Water Authority

State Water Resources Control Board Chair E. Joaquin Esquivel and San Diego County Water Authority General Manager Sandra L. Kerl discussed water affordability Sept. 29 in San Diego. Photo: San Diego County Water Authority

Water Authority commitment to affordability

Water Authority General Manager Sandra Kerl detailed some of the agency’s affordability efforts in recent years.

“The Water Authority is committed to maintaining an affordable water supply and finding solutions to inherently complex challenges related to water costs, rates and investments,” said Kerl. “Significant advances in affordability can only be achieved through the combined efforts of all four sectors that affect the cost of water for our region. Those sectors are the federal government, state government, wholesale water agencies and local water retailers.”

Reliable supply

Kerl said the Water Authority’s commitment to affordability includes securing $25 million from the State of California to pay water bills for San Diego County residents impacted by COVID-19; securing $90 million over the past two years through successful litigation efforts and distributing that money directly to its 24 member agencies; avoiding hundreds of millions of dollars in future costs on water deliveries; and maintaining strong credit ratings that reduce the cost of infrastructure.

“Everything at the Water Authority is designed to deliver a safe and reliable water supply at an affordable cost, and the agency has taken numerous steps over the past three years to enhance affordability,” Kerl said. “Water affordability is imperative to equitable water access. This resource should be available to all regardless of race, ethnicity, or income level. Nobody should have to choose between safe, clean water and affordable water.”

Collaboration on solutions

Kerl said that the federal and state government, wholesale water agencies, and local water retailers can work together in finding solutions to the complex challenges related to water costs, rates and investments.

A recent poll by the Water Authority found that more than half of the residents of San Diego County would support a hypothetical program that provided water discounts or an assistance program for low-income ratepayers – even if they had to pay a few dollars more a month to fund it.

The Water Authority holds periodic legislative roundtables to promote collaboration with the water industry, civic and business leaders, on critical water issues in the San Diego region.

Helix Water District-WIFIA loan-EPA-Water reuse

Helix Water District Gets $18 Million Loan for Water Reuse Projects

The Helix Water District has received an $18 million loan from the U.S. Environmental Protection Agency to support the Drinking Water Reliability Project. Helix will use the Water Infrastructure Finance and Innovation Act, or WIFIA loan, to increase the region’s drinking water resiliency by expanding water reuse opportunities and reducing the reliance on imported water.

The WIFIA loan will help fund infrastructure improvements for the East County Advanced Water Purification Program, pump station upgrades and cast-iron pipeline replacement throughout the district.

Developing new drought-proof water supply

“In California, we are purifying recycled water and ocean water to replace the water that nature used to provide,” said Helix Water District Board President Kathleen Coates Hedberg. “The only way we can afford to keep rates as low as we can and develop these new projects is through collaboration – multiple agencies working together and securing capital from multiple funding sources. We are partnering with neighboring agencies to develop a new, drought-proof water supply and we are so pleased that the EPA selected our project for funding.”

$18 million loan helps recycled water efforts

Specifically, Helix Water District will modernize existing pump stations, conveyance infrastructure, and distribution pipelines as well as install an aeration system in Lake Jennings to meet state surface water requirements.

By completing the project, Helix Water District will replace 30% of its water needs that are currently met by regional sources with an alternative source of purified water conveyed from the East County AWP, which received a separate WIFIA loan. This project also supports California’s Title 22 “Pure Water” objective to increase use of recycled water by at least 2 million-acre-feet per year by 2030.

Scheduled to be complete in 2026, the East County AWP will generate up to 11.5 million gallons per day of purified water— meeting approximately 30% of current drinking water demands for East San Diego County residents and businesses.

As a result of the WIFIA program’s flexibility and competitive rates, Helix Water District will save approximately $3.2 million by financing with a WIFIA loan. Construction and operation are estimated to create nearly 400 jobs.

“Future of water in the West”

“Helix Water District’s project represents the future of water in the West,” said EPA Deputy Assistant Administrator for Water Bruno Pigott. “EPA is proud to help finance these infrastructure upgrades that will increase water reuse and help secure reliable safe drinking water for generations to come.”

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan and guarantee program administered by EPA. The WIFIA program’s aim is to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects.

(Editor’s note: The Helix Water District and the Padre Dam Municipal Water District are two of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region. Water agencies in north San Diego County also received federal funds recently to support water recycling projects.)

Flex Alert-energy demand-desalination-pumped storage

Carlsbad Desalination Plant Cuts Energy Demand to Help Avoid Blackouts

Poseidon Resources (Channelside) LP and the San Diego County Water Authority are temporarily reducing water production at the Claude “Bud” Lewis Carlsbad Desalination Plant to support statewide emergency energy conservation efforts during the extreme heat wave.

While the plant accounts for less than 1% of peak energy demand in San Diego Gas & Electric’s service territory, Channelside and the Water Authority are committed to supporting electrical reliability while ensuring continued delivery of safe and reliable water supplies. The partners reduced water production at the plant by about 20% for three days over the Labor day holiday weekend. Regular water deliveries were made from other sources. The reduced production helps decrease energy demand during the statewide emergency.

“The partnership by the Water Authority and Channelside is another reminder of the value our investments in cutting-edge technology and water supply reliability,” said Sandra L. Kerl, general manager of the Water Authority.  “Desal plant operations are nimble, so production can be ramped up and down in response to local needs. This flexibility underscores the value of regional water supply planning, which allows us to activate solutions during challenging times.”

The Carlsbad Desalination Plant is the largest, most technologically advanced and energy-efficient desalination plant in the nation. The plant has produced more than 90 billion gallons of drinking water for San Diego County since operations began in December 2015. Starting Sunday, Sept. 4, the plant ramped down operations, making an additional 9 megawatts of power available for other uses.

Flex Alert-Lake Hodges Pumped Storage-Energy demand

The Water Authority is running its Lake Hodges Pumped Storage Facilities to generate 20 megawatts of on-demand power, helping meet peak demands. Photo: San Diego County Water Authority

Lake Hodges Pumped Storage Facility generates on-demand power

The Water Authority also is running its Lake Hodges Pumped Storage Facilities to generate 20 megawatts of on-demand power, helping meet peak demands.

Pumped energy storage

In addition, the Water Authority and the City of San Diego are collaboratively advancing the proposed San Vicente Energy Storage Facility in East County, one of the most promising pumped energy storage solutions in California. Pumped energy storage projects are designed to store excess renewable energy from solar and wind during the day, and then discharge that energy when energy use spikes or renewable energy is not available. As proposed, the project could store 4,000 megawatt-hours per day of energy (500 megawatts of capacity for eight hours), which is enough energy to provide approximately 135,000 homes with power.

Energy demand-Flex Alert-desalination-pumped storage

The Claude “Bud” Lewis Carlsbad Desalination Plant uses energy recovery devices that save an estimated 146 million kilowatt-hours and reduce carbon emissions by 42,000 metric tons every year. Photo: San Diego County Water Authority

Energy reliability, water reliability

The Carlsbad Desalination Plant eliminates the need to transport water from Northern California to the San Diego region, offsetting approximately 190,000 megawatt-hours of electricity and 68,000 tons of carbon emissions each year. The plant also uses energy recovery devices that save an estimated 146 million kilowatt-hours and reduce carbon emissions by 42,000 metric tons every year.

“This is an example of how desalination plants can help contribute to energy reliability, in addition to water reliability, by taking appropriate action to increase the available energy capacity during the extreme heat event,” said Channelside President, Sachin Chawla. “We’re proud to do whatever we can to help our region address the current energy shortage.”

North County Water Reuse Coalition-water reuse-drought proof-recycling

North San Diego Water Reuse Coalition Awarded Up to $17.8 Million in Federal Funding

The North San Diego Water Reuse Coalition was awarded a grant of up to $17.8 million for the development of recycled water infrastructure. The grant funds come from the U.S. Bureau of Reclamation.

“As we face increasingly devastating drought conditions, it’s imperative that we continue to diversify our water supplies and strengthen our local water independence,” said U.S. Representative Mike Levin. “The North San Diego Water Reuse Coalition plays a critical role in that effort, which is why I am proud to see the Bipartisan Infrastructure Law funding investments for their important work to expand the use of recycled water.”

This is the second grant that the USBR has awarded to the North County coalition in the last year. In August 2021, USBR committed $6.1 million in funds from its Title XVI program for local water reclamation and reuse projects. The two grant awards totaling up to $23.9 million will help cover costs for work performed through September 2025.

New water recycling projects

“California is not going to be able to navigate another historic drought if we don’t develop new water supplies, said Larry Watt, Olivenhain Municipal Water District’s Board President. “In fact, the number one priority in the California Water Supply Strategy document that Governor Newsom recently released is to create new water recycling projects. This financial support from the Bureau of Reclamation is instrumental for us to be able to develop these new supplies and achieve statewide goals.”

Water agencies work to increase local supply sources

The coalition is a group of nine water and wastewater agencies in San Diego County working beyond jurisdictional boundaries to maximize recycled water use and reduce demand for imported water. The awarded funding is for the coalition’s Regional Recycled Water Program: 2020 Project, which is a joint effort between coalition members to expand recycled water infrastructure to increase and maximize water reuse in the region. Upon completion of all long-term project elements, the coalition anticipates increasing water reuse by 11 billion gallons per year. This equates to approximately 31 million gallons per day of recycled water and potable reuse water added to northern San Diego’s water supply portfolio.

The project includes connecting discrete recycled water systems to one another, new pipelines, increasing recycled water storage capacity, installation of new pump stations, and other project components that will help distribute recycled water to effectively meet demands.

“For the Vallecitos Water District, the additional funding will be used to increase the size of the chlorine contact stage at our Meadowlark Water Reclamation Facility,” noted Craig Elitharp, Vallecitos Water District Board President. “We will be able to increase the capacity of Meadowlark from 5 million gallons a day to 6.5 million gallons a day. This additional reclaimed water supply will be passed along to our water reuse partners with the City of Carlsbad and the Olivenhain Municipal Water District.”

Project Overview-North San Dieg County Water Reuse Coalition

The project includes connecting discrete recycled water systems to one another, new pipelines, increasing recycled water storage capacity, installation of new pump stations, and other project components that will help distribute recycled water to effectively meet demands. Graphic: North San Diego Water Reuse Coalition

Drought-proof supply

The project helps address water supply shortages by offering the region a reliable approach for supplementing local and imported supplies. Potable water supplies are vulnerable during drought periods and can be restricted during times of water shortages. Recycled water is considered a drought-proof supply because it is not linked to weather fluctuations and is available year-round, effectively offsetting potable water demand. Furthermore, since recycled water is produced locally, it cannot be disrupted from shortages caused by earthquakes, wildfires, and other natural disasters that may occur in other parts of the state.

Investments in water infrastructure

“We are grateful for this partnership with the U.S. Bureau of Reclamation to help fund green infrastructure,” said Kellie Hinze, San Elijo Joint Powers Authority Chairwoman and Encinitas City Council Member. “Recycling water reduces our dependence on imported supplies while building resiliency for a changing climate.”

Investments in water infrastructure, such as the infrastructure expanded by this project, promotes economic development and expanded business opportunities. According to the San Diego Regional Economic Development Corporation, for every $1 invested in water infrastructure, there is an estimated $1.80 increase in the region’s gross regional product.

Additional benefits associated with the project come from reduced wastewater discharges and associated coastal stressors. Reducing the amount of wastewater discharged to the Pacific Ocean can benefit water quality along the coast in the coalition’s service area.

Recycled water infrastructure

In addition to federal funds, the project has previously received funding at the state level from the Department of Water Resources. The project received grant funding on several occasions through DWR’s Integrated Regional Water Management Program—administered locally in partnership with the San Diego County Water Authority, County of San Diego, and City of San Diego—which supports collaborative water management to increase regional self-reliance throughout California. These IRWM awards have totaled $4.95 million in grant funding.

Through the Title XVI Water Reclamation and Reuse Program, the USBR provides financial and technical assistance to local water agencies for the planning, design, and construction of water reclamation and reuse projects. These projects are designed to provide growing communities with new sources of water which increases water management flexibility and makes our water supply more reliable. The coalition will be working with USBR to finalize the grant agreement in the coming months.

More information about the coalition and the project is available at www.nsdwrc.org.

The North San Diego Water Reuse Coalition is comprised of nine northern San Diego County water and wastewater agencies working beyond jurisdictional boundaries to maximize recycled water use and reduce demand for imported water. The Coalition partners include Olivenhain Municipal Water District, Carlsbad Municipal Water District, City of Oceanside, Vallecitos Water District, City of Escondido, Rincon del Diablo Municipal Water District, Santa Fe Irrigation District, Leucadia Wastewater District, and San Elijo Joint Powers Authority.

(Editor’s note: The Santa Fe Irrigation District, Vallecitos Water District, Olivenhain Municipal Water District, Rincon del Diablo Municipal Water District, Carlsbad Municipal Water District, City of Escondido, and City of Oceanside, are seven of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)

Colorado River Basin-drought-Water conservation

Water Conservation is Critical in San Diego County as Colorado River Declines

Sandra L. Kerl, general manager of the San Diego County Water Authority, issued the following statement in response to the U.S. Bureau of Reclamation’s 24-month projection for water levels in Lake Mead and Lake Powell.

“Today’s announcement by the Bureau of Reclamation is a reminder of just how important it is to increase water conservation across San Diego County and the rest of the arid West. An increasingly hot and dry climate is creating unprecedented challenges for water supplies that will impact life in the Southwest for the foreseeable future.

“The San Diego County Water Authority continues to participate in discussions about the future of the Colorado River. We also continue to highlight the value of the conserved water transfer agreement between the Water Authority and the Imperial Irrigation District, the cornerstone of the landmark Quantification Settlement Agreement, or QSA, negotiated in 2003, as well as our investments in concrete lining sections of the All-American and Coachella Canals to conserve water previously lost to seepage. Through the QSA, the Water Authority funds critical conservation efforts in the Imperial Valley that provide the San Diego County region 277,700 acre-feet of highly reliable, cost-effective conserved water supplies each year. Further, the QSA enables California to live within its historic 4.4-million-acre-foot annual Colorado River apportionment while providing a roadmap for current efforts to balance the complex economic, agriculture, environmental, most notably the Salton Sea, and water-use needs in the Colorado River Basin.

Colorado River water

“The Water Authority has not been asked to make any voluntary reductions to Colorado River water supplied by IID under Reclamation’s call for additional basin-wide conservation. If cuts were deemed mandatory to IID through an official Secretarial declared shortage to Priority 3 water in California, the Water Authority would take a pro-rata reduction of its IID transfer supplies.

“Investments by San Diego County residents in other water sources and storage facilities will continue to shield the region from the worst effects of the drought. At the same time, the potential for mandated water-use reductions should inspire every San Diegan to decrease their water use, for instance, by taking shorter showers, reducing irrigation of decorative grass, and upgrading to efficient appliances.”

— Sandra L. Kerl, General Manager, San Diego County Water Authority

(Editor’s note: Photos and text featured in the August 2022 issue of Contractor News & Views. The San Diego County Water Authority sustains a $240 billion regional economy and the quality of life for 3.3 million residents through a multi-decade water supply diversification plan, major infrastructure investments and forward-thinking policies that promote fiscal and environmental responsibility. The Water Authority works closely with its 24 member agencies to provide safe, reliable water service to the region. )

San Diego County Water Authority Water Resources Specialist Efren Lopez joined CBS 8’s Carlo Cechetto to discuss additional ways San Diegans can reduce their water use. Photo: CBS 8 water saving tips

Water Authority Offers Water Saving Tips on CBS 8

As the current drought stretches into a third year, the San Diego County Water Authority is providing water saving tips as part of a drought survival kit to San Diegans.

Scientists confirm California and the Southwest U.S. is experiencing the worst megadrought in the last 1,200 years. It has prompted Governor Gavin Newsom to order new emergency water rules and cutbacks with the goal of preparing the state for a 10% decrease in the available water supply by 2040.

“The hots are getting a lot hotter, the dries are getting a lot drier and … the wets are getting wetter,” Newsom said in announcing the plan at a desalination plant under construction in Antioch, 45 miles inland from San Francisco, that will turn brackish water into drinking water.

Water saving tips

Many years ago, San Diego regional water leaders had the foresight to call for conservation efforts to help build our resilience. Now we are in a more fortunate position thanks to our diversified water supply than much of the state.

San Diegans have learned how to conserve water, but there is always more we can do. San Diego County Water Authority Water Resources Specialist Efren Lopez joined CBS 8 Anchor and Reporter Carlo Cecchetto on the news program “The Four” to discuss the Governor’s report and offer additional ways San Diegans can reduce water use.

Water conservation is a way of life

“San Diego’s great at conservation. Conservation is a way of life here, but there is always something more we can do,” said Lopez. He suggests homeowners use a shutoff nozzle when hand watering using their garden hose and test soil with a moisture sensor to determine when soil is dry enough before irrigating.

In addition to water-saving measures, San Diego County residents can take advantage of the Water Authority’s rebate programs for turf replacement, irrigation devices, and WaterSmart landscape gardens. Countywide, San Diegans have removed more than one million square feet of turf through rebate programs, resulting in annual water savings of 36.5 million gallons.

“In San Diego, we’ve been diversifying our water supply for decades,” said Lopez. “So we’re prepared for this drought. It’s great to see the governor supportive of resilient supplies and a portfolio approach to our water supply so that we don’t rely on just one source.”

Lopez encouraged San Diego County residents to get additional tips for saving water at www.watersmartSD.org.

Olivenhain Municipal Water District-recycled water pipeline-construction

Manchester Pipeline Projects Continue with Installation of Recycled Water Pipeline

Olivenhain Municipal Water District is beginning construction this week on a new recycled water pipeline in Encinitas along Manchester Avenue and South El Camino Real from Via Poco to Tennis Club Drive. Once complete, customers connecting to this new pipeline will irrigate with recycled water, which will reduce demand for imported potable water by more than 10 million gallons every year.

Recycled water is a sustainable water source that reduces the region’s dependence on imported water. OMWD is currently meeting approximately 14% of its total water demands using locally supplied recycled water for irrigation.

Recycled water pipeline

“Recycled water is a critical tool in our effort to diversify our water supply and reduce the impacts of drought,” said OMWD Board President Larry Watt. “By converting from potable to recycled water for irrigation, this project has become yet another example of how we can significantly reduce our potable water consumption.”

This new pipeline is an element of the larger North San Diego County Regional Recycled Water Project — a collaborative effort among nine North County agencies that coordinate across jurisdictional boundaries. The water that OMWD will deliver through the new pipeline is produced at San Elijo Joint Powers Authority’s water reclamation facility in Cardiff.

Cost-effective for water ratepayers

OMWD has aggressively sought grant funding for this project to make it cost-effective for ratepayers. The efforts have been successful, with OMWD achieving $1,350,000 from California’s Department of Water Resources for two separate segments of the pipeline, and approximately $400,000 from the U.S. Bureau of Reclamation’s Title XVI Water Reclamation and Reuse Program.

The project is expected to be completed in 2023 and progress updates can be found at www.olivenhain.com/projects and by following OMWD on Facebook and Twitter.

Map-Olivenhain Municipal Water District-recycled water pipeline-construction

Manchester Avenue potable water pipeline replacement project completed

Earlier this year, the Olivenhain Municipal Water District completed the Manchester Avenue Potable Water Pipeline Project. In total, 3,700 linear feet of aged potable water pipeline was replaced along Manchester Avenue, Rancho Santa Fe Road and Encinitas Boulevard.

(Editor’s note: The Olivenhain Municipal Water District is one of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)

Olivenhain Dam and Reservoir 2023 rates

Water Authority Proposes 2023 Rates and Charges for Member Agencies

The San Diego County Water Authority is taking strategic steps to minimize 2023 rate increases for its 24 member agencies and their customers while ensuring a safe, reliable, and affordable water supply as drought grips California for a third consecutive year.

FY 22&23 Adopted Budget ($1.7 million). Graphic: San Diego County Water Authority

FY 22&23 Adopted Budget ($1.7 million). Graphic: San Diego County Water Authority

Water Authority staff proposed increasing 2023 rates and charges for member agencies by 5.2% for treated water and 3.7% for untreated water. The increases are attributable to historically high inflation, significant energy cost increases from SDG&E, and continued cost increases by the Metropolitan Water District of Southern California.

The rate proposal for 2023 includes strategic withdrawals from the Water Authority’s Rate Stabilization Fund, which was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales. To reduce 2023 rate increases by approximately $39 per acre-foot, the Water Authority plans to draw $14.2 million from that fund.

Public comment

The Water Authority Board is expected to vote on rates for next year at its regular meeting on June 23, following a public hearing. The public is invited to comment on the proposed rates and charges. Public comment may be submitted by either of these two methods:

Before the meeting, or before the public comment closes at the meeting, submit your telephone number by e-mail to the clerk at and the clerk will call you when the Board is ready to hear your public comment (three minutes or less); OR

Before the meeting, or before public comment closes at the meeting, email your comment to the Water Authority General Counsel at , and time allowing, it may be read aloud at the public comment period (three-minute limit).

If modifications or accommodations from individuals with disabilities are required, such persons should provide a request at least 24 hours in advance of the meeting by e-mail to the Water Authority General Counsel at

(Note: Per Governor Newsom’s executive orders and state legislation, the June 23 San Diego County Water Authority Board of Directors Meeting will not be held in person, but electronically. The public may access the meeting electronically by going to this web link: https://www.sdcwa.org/meetings-and-documents and then clicking the link listed below “Live Stream” on the right hand side of the page).

Focus on maintaining lowest possible 2023 rates

Desal plant-5th anniversary-Carlsbad-construction

The Claude “Bud” Lewis Carlsbad Desalination Plant under construction in December 2013 reflects a significant commitment to water supply diversification. Photo: San Diego County Water Authority

“We recognize inflationary pressures are challenging for many residents, and we are working collaboratively with all levels of government to identify, advocate for, and improve water affordability,” said Water Authority General Manager Sandra L. Kerl. “As our rate-setting process moves forward, we will remain focused on maintaining the lowest possible rates while delivering a safe and reliable water supply during the driest period in more than 1,200 years.”

The Water Authority’s commitment to affordability includes securing $25 million from the State of California to pay water bills for San Diego County residents impacted by COVID-19; securing $80 million through advocacy efforts in 2021 and distributing that money to member agencies; avoiding hundreds of millions in future costs on water deliveries; and maintaining strong credit ratings that reduce the cost of debt.

In 2023, the Water Authority proposes charging its 24 member agencies the equivalent to an all-in rate of $1,579 per acre-foot for untreated water, or $56 more per acre-foot than they currently pay. Charges would be $1,929 per acre-foot for treated water, or $96 more per acre-foot than in 2022. (Note: An acre-foot is about 325,900 gallons, enough to serve the annual needs of 2.5 typical four-person households in San Diego County).

Actual figures will vary by member agency, and each member agency will incorporate costs from the Water Authority into the retail rates it charges to residents, businesses, and institutions.

Rising costs for treatment, supplies, and energy

Water Facilities Master Plan Update-Infrastructure-Planning 2023 rates

A major rehabilitation project on the region’s historic First Aqueduct was completed in North San Diego County in January 2021. The Water Authority will continue to lead in preparing for an uncertain future by improving existing infrastructure with resiliency and flexibility at top of mind. Photo: San Diego County Water Authority

The Water Authority’s overall rate increase is driven by multiple factors, such as rising costs for its water supplies, including increases in water treatment (driven by energy costs), conserved water supplies driven by inflation, and continued increases from the Metropolitan Water District of Southern California, including a 7% increase for untreated supplies.

Each year, the Water Authority’s rate proposal is developed in conjunction with an independent cost-of-service study to ensure rates and charges comply with state law, legal requirements, cost-of-service standards, and Board policies. For 2023, an additional third-party consultant hired to perform a cost-of-service review again affirmed the Water Authority’s process. Throughout the six-month rate-setting process, the Water Authority worked closely with its member agencies to keep the proposed rates and charges at the low end of earlier projections.

“Despite the current inflationary environment and the challenges of the pandemic, our strategic financial planning and management of debt allows us to keep the proposed rates at the low end of our projections,” said Water Authority Finance Director Lisa Marie Harris. “We continue to control rates while maintaining a complex water production, treatment, and delivery system that supports the region now and for decades to come.”

The rate proposal also includes strategic management of the Water Authority debt portfolio resulting in $130 million in net present value savings from several refundings.

The 2023 rate proposal ensures debt-coverage ratios that maintain the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects. This approach saves ratepayers money over the long run. The Water Authority has senior lien credit ratings of AAA from Standard & Poor’s, AA+ from Fitch ratings, and Aa2 from Moody’s.

For more information about the Water Authority’s proposed 2023 rates, go to the May Board packet starting on page 215.

East County Advanced Water Purification Plant Groundbreaking

Groundbreaking for East County Advanced Water Purification Program

The East County Advanced Water Purification Program broke ground, marking an important milestone for the recycled water project in San Diego County.

Scheduled to be complete in 2026, the East County AWP will generate up to 11.5 million gallons per day of purified water— meeting approximately 30% of current drinking water demands for East San Diego County residents and businesses.

Program representatives, elected officials and water industry leaders gathered at the future site of the treatment facility in Santee to celebrate the East County AWP. The project will create a new, local, sustainable and drought-proof drinking water supply using state-of-the-art technology to purify East San Diego County’s recycled water.

Officials in attendance included representatives from the East County AWP Joint Powers Authority, San Diego County Water Authority, Bureau of Reclamation, Metropolitan Water District of Southern California and the U.S. Environmental Protection Agency.

Potable reuse projects

“In 2045, potable reuse projects are going to provide up to 20% of the water that we need here in San Diego County,” said San Diego County Water Authority General Manager Sandra L. Kerl. “This region has been excellent in its innovation and planning for water needs for the region and this project is just another step in that process. I want to congratulate everyone involved in this project in developing another drought-resilient supply for the region.”

Water supply reliability for San Diego County

Collaboration on new recycled water supply

The groundbreaking follows approval of project construction on May 19, 2022, by the East County AWP Joint Powers Authority that owns and operates the Program and is a collaborative partnership between four agencies: Padre Dam, the City of El Cajon, the County of San Diego and Helix Water District. The overall cost for the project is $950 million and estimated to create 2,500 jobs in the region.

The project will use four advanced water purification steps to produce water that is near-distilled in quality.

4-step process-potable reuse-East County AWP

Sustainable source of water

“Today marks an exciting moment for our East San Diego County customers,” said Allen Carlisle, Padre Dam and JPA Administrator CEO/General Manager. “We are now one step closer to creating a local, reliable and sustainable drinking water source that will reduce our dependence on increasingly expensive imported water. The East County Advanced Water Purification Program is a smart investment that provides a long-term solution for increased stability in our communities and safeguards the vitality of our economy and quality of life.”

After the advanced water purification process, the purified water will be blended with water in Lake Jennings and treated again at Helix Water District’s R.M. Levy Water Treatment Plant before being distributed as drinking water.

New local supply

“In addition to providing a new local water supply, the Program will eliminate the need to send most of East County’s wastewater to the City of San Diego’s Point Loma Wastewater Treatment Plant, where it is currently treated and then discharged into the ocean,” said Kyle Swanson, Padre Dam Incoming CEO/General Manager. “The East County Advanced Water Purification Program will benefit not only our customers and the community, but our shared environment too.”

The East County AWP has secured more than $123 million in grant funding and up to $796 million in low interest loans to help finance the project. East County AWP officials anticipate receiving additional state and federal grant funding to help pay for the project.

Local leadership and vision

“As California adapts to an increasingly arid climate, expanding our water supply portfolio with 21st century investments in water recycling, like the East County Advanced Water Purification program is critical,” said Joaquin Esquivel, Chair, State Water Resources Control Board. “Thanks to state and federal leadership, we have a generational opportunity to support the affordability and viability of this and other water supply projects throughout the state. Local leadership and vision are what have made this project a reality and helped to show that we can turn climate anxiety into climate action.”

(Editor’s note: The Padre Dam Municipal Water District and the Helix Water District are two of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)

Pure Water Oceanside-Recycling-Local Supply

Pure Water Oceanside Provides New Local Supply of Drinking Water

Pure Water Oceanside is the first operating advanced water purification facility in San Diego County, providing a new local supply. The facility was officially dedicated with a celebration Tuesday in Oceanside. Elected officials and water leaders throughout Southern California commemorated the milestone which coincided with World Water Day.

Pure Water Oceanside purifies recycled water to create a new local source of high-quality drinking water that is clean, safe, drought-proof and environmentally sound.

“On this World Water Day, we celebrate the City of Oceanside’s contribution to managing our invaluable water resources with the opening of Pure Water Oceanside,” said Cari Dale, City of Oceanside water utilities director. “Today we made history by moving one step closer to achieving the goal of greater water independence for not only our city, residents and businesses, but also the region as a whole.”

20% of Oceanside’s drinking water supply

The $70 million project uses advanced technology, including ultrafiltration, reverse osmosis and advanced oxidation to provide 3 million gallons per day or more than 20% of the City of Oceanside’s drinking water supply. The source of the recycled water to create the purified water is from the city’s own San Luis Rey Water Reclamation Facility.

Drought-proof water supply

“Pure Water Oceanside exemplifies our commitment to innovative projects that improve the lives of the citizens who call our great city home,” said City of Oceanside Mayor Esther Sanchez. “Not only will the project safeguard against ongoing drought concerns, but it will also improve the quality and quantity of our local aquifer and reduce our reliance on imported water, ensuring clean and reliable water is available for future generations.”

Pure Water Oceanside-Recycling-Potable Reuse-Water Supply

The $70 million project uses advanced technology, including ultrafiltration, reverse osmosis and advanced oxidation to provide 3 million gallons per day or more than 20% of the City of Oceanside’s drinking water supply. Photo: San Diego County Water Authority

Pure Water Oceanside addresses a variety of challenges faced by the city. Before the project went online, Oceanside imported most of its water from the Sacramento Bay Delta and the Colorado River, hundreds of miles away. This imported water is subject to rising costs out of the city’s control, requires an enormous amount of energy to transport and is vulnerable to natural disasters and earthquakes. Pure Water Oceanside addresses these challenges by diversifying the city’s water supply and reducing its reliance on imported water.

The launching of Pure Water Oceanside coincides with a larger movement for the region as a whole to create sustainable water supplies in San Diego County. In addition to Pure Water Oceanside, two other water reuse projects are planned for the region: the East County Advanced Water Purification Program and Pure Water San Diego.

(Editor’s note: The City of Oceanside, City of San Diego, Padre Dam Municipal Water District, and the Helix Water District are four of the San Diego County Water Authority’s 24 member agencies that deliver water across the metropolitan San Diego region.)