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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.

Desalination plant maintains investment grade rating

The Claude “Bud” Lewis Carlsbad Desalination Plant maintained an investment grade rating in the latest report from Fitch Ratings.

The rating affirms the plant’s sound financial management and its ability to provide a stable, reliable source of drinking water to the San Diego region, according to a press release.

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Gage: Setting The Record Straight On Seawater Desalination

A recent news release posted on the Voice of OC website was clouded by mischaracterizations of the Claude “Bud” Lewis Carlsbad Desalination Plant, which provides an important source of drinking water for San Diego County and reduces our region’s reliance on the Sacramento-San Joaquin Bay-Delta.

The plant is the result of a historic public-private partnership between the San Diego County Water Authority and Poseidon Water to ensure supply reliability for more than 3 million residents across the region. It helped to ensure that the Water Authority had sufficient water to meet demand during the last drought, and we are confident it will help us weather the next drought … and the one after that.

Credit Analysis Affirms Carlsbad Desalination Plant is Financially Strong

Carlsbad, Calif. – The Claude “Bud” Lewis Carlsbad Desalination Plant maintains an investment grade rating in the latest report from Fitch Ratings, affirming the plant’s sound financial 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 desalination plant in the nation, the Carlsbad Desalination Plant’s revenue stability stems from an effective collaboration between Poseidon Water and the San Diego County Water Authority.

Four Lessons From the Front Lines of California’s Water Wars

Were San Diego on its own, there wouldn’t be enough water to go around. Only about 5 percent of urban San Diego’s water comes from local rainfall, an almost meaningless amount that wouldn’t support our region’s 3 million residents.

$100 million desalination project to be led by Lawrence Berkeley National Lab

In a effort to widen the use of a nearly limitless — but expensive — source of water for California and other places worldwide that are prone to shortages, Lawrence Berkeley National Laboratory has been selected to lead a $100 million project aimed at bringing down the cost of desalination.

The money, announced this week and awarded by the U.S. Department of Energy, will fund a research consortium of 19 universities around that the country that include Stanford, UC-Berkeley, UCLA and others, along with 10 private industry partners and other Department of Energy institutions, like Oak Ridge National Lab in Tennessee.

The goal, organizers say, is to reduce the cost of removing salt from ocean water to make it a more viable drinking water source for California and other areas. Closely related, planners also hope to clean up other types of water that are being largely wasted or underused so they can be a source for cities, farms and wildlife.

Southern California Water Portfolio

This region has made tremendous strides toward diversifying its water portfolio. In Riverside County, groundwater desalination is moving forward to take full advantage of all available sources of water. Plans for Water Banking, which will take Northern California water imported during wet years to restore local aquifers for use during dry years, are also progressing.

The San Diego County Water Authority’s Board of Directors celebrated the agency’s 75th anniversary.

Water Authority Celebrates 75 Years of Service to San Diego County

The San Diego County Water Authority’s Board of Directors celebrated the agency’s 75th anniversary during today’s Board meeting, which included 20 proclamations honoring the agency for its service to the region dating back to 1944.

Cities across the region joined the state Assembly and Senate, the San Diego County Board of Supervisors and other state and local leaders to formally mark the occasion. The San Diego City Council and the San Diego County Board of Supervisors even proclaimed today “San Diego County Water Authority Day” in honor of the agency’s legacy of water supply reliability.

75 years of service

“Starting with the historic first water deliveries in the 1940s, the Water Authority has partnered with our member agencies to build, operate and maintain the vital infrastructure that supports our region’s $231 billion economy and unparalleled quality of life,” said Board Chair Jim Madaffer. “Our collective investments have created extraordinary advances in water supply reliability that are sustained by the daily vigilance necessary to operate and maintain such a complex system.

“While today we celebrate the past, the Water Authority and its 24 member agencies continue to focus on the future by fostering innovative solutions to ever-changing water resource challenges,” Madaffer said. “Together, we will supply the San Diego region with safe and reliable water supplies for generations to come.”

San Diego County Water Authority service sArea and 24 member agencies

Since 1991, the Water Authority and its 24 member agencies have deployed one of the most aggressive water supply diversification strategies in the nation to improve regional water supply reliability. In the years ahead, member agency projects will play an increasingly important role in continuing to ensure reliability for the San Diego region.

Forward thinking on water

The Water Authority’s current forward-thinking efforts include developing water storage capacity in Lake Mead to provide additional drought resilience for San Diego and the Southwest.

The agency also is working closely with the City of San Diego to assess a potential pumped storage project at San Vicente Reservoir that could help meet clean energy goals and benefit water ratepayers. In addition, the Water Authority is analyzing the costs and benefits of a regional water conveyance system that could help San Diego County and the entire Southwest to more effectively manage water resources.

Profound impact

During today’s ceremonies, water agency, civic and business leaders noted the Water Authority’s profound impact on the San Diego region and wider water issues over the past 75 years.

  • “A reliable water supply is critical for San Diego’s regional economy and for maintaining a competitive business climate. The business community applauds the Water Authority and its 24 member agencies for their leadership, and for increasing the county’s water supply reliability with investments that keep our economy growing.” — Mark Cafferty, president and CEO, San Diego Regional Economic Development Corp.
  • “It is a pleasure to celebrate the San Diego County Water Authority’s 75th anniversary. We share a common history and a common vision for water supply reliability that has been essential to the economic vitality and prosperity to all San Diegans. We look forward to strengthening our relationship to meet the future needs of San Diegans.” — Gloria D. Gray, chair, Metropolitan Water District Board of Directors
  • “Farming is a foundational piece of our regional economy and quality of life – but it doesn’t happen without a reliable water supply. Our farmers are constantly innovating to use water more efficiently by adopting new technology and planting more-efficient crops.” — Eric Larson, executive director, San Diego County Farm Bureau
  • “On behalf of the Imperial Irrigation District Board of Directors, I salute the San Diego County Water Authority on its 75th anniversary. Our two agencies are partners in the nation’s largest agriculture to urban transfer and in the process, we have forged a durable alliance at the Salton Sea. It is a relationship that the IID highly values.” — Erik Ortega, president, Imperial County Irrigation District Board of Directors
  • “By combining a diversified set of water supply sources with greatly enhanced storage capacity, we are developing a more robust safety net for San Diego County.” — Jerry Sanders, president and CEO, San Diego Regional Chamber of Commerce

On June 9, 1944, San Diego voters approved the Water Authority’s formation under the County Water Authority Act. Imported water arrived three years later to slake the thirst of a growing population just weeks before local supplies would have run out.

The modern era of the Water Authority started during deep, drought-induced water supply cuts in the early 1990s. Since then, Water Authority and its 24 member agencies have deployed one of the most aggressive water supply diversification strategies in the nation to improve regional water supply reliability.

At the same time, the agencies have aggressively helped to reduce per capita water use so that the total regional water use today is well below 1990 levels despite significant growth in the population and economy.

San Vicente Aqueduct

Officials commemorate installation of the first portion of pipe along the new Second Pipeline of the San Vicente Aqueduct in 1951. Photo: Water Authority

75th anniversary milestones

The Water Authority reached several major milestones over the past two decades. They include:

  • In 2003, Olivenhain Dam was the first major new dam built in San Diego in more than 50 years. At 318 feet, it was the tallest roller-compacted concrete dam at the time.
  • In 2008, the Twin Oaks Valley Water Treatment Plant north of San Marcos began operations. It was the largest submerged membrane water treatment plant in the world when it was commissioned.
  • In 2011, the San Vicente Tunnel and Pipeline Project – an 11-mile long, 12-foot diameter tunnel with an 8-1/2-foot diameter pipeline – created a link from the City of San Diego’s San Vicente Reservoir to the Water Authority’s Second Aqueduct, greatly improving the Water Authority’s ability to distribute water and store water in the reservoir.

San Vicente Dam raise

  • In 2012, the Lake Hodges Hydropower Facility started serving the dual purposes of connecting the lake to the Water Authority’s aqueduct system and generating 40 megawatts of clean, on-demand electricity.
  • In 2014, the San Vicente Dam Raise Project, the tallest dam-raise project in U.S. history, expanded the reservoir’s capacity by more than 157,000 acre-feet.
  • In 2015, the $1 billion Claude “Bud” Lewis Carlsbad Desalination Plant, distribution pipeline and related facilities started commercial operations as the largest seawater desalination project in North America.
  • The Water Authority’s Asset Management Program, which includes a multi-year project to reline 82 miles of large-diameter prestressed concrete cylinder pipelines with new steel liners, helps to prevent pipeline failure and extend their lifespans by 75 years or more at significantly less cost than traditional pipeline replacement programs.
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

San Diego regional water quality regulators issued a new permit in May 2019 for the development of permanent, stand-alone seawater intake and discharge facilities at the Carlsbad Desalination Plant. Photo: Water Authority

Worldwide recognition

The Water Authority’s innovative efforts have been recognized nationally and internationally.

In 2017, for instance, the president of the American Society of Civil Engineers recognized the Water Authority’s Emergency & Carryover Storage Project for winning ASCE’s top international engineering award.

The same year, Water Authority was honored by the Association of California Water Agencies – the nation’s largest statewide coalition of water agencies – for innovation and excellence in water resources management with its addition of supplies from the Carlsbad Desalination Project. And in 2016, the Water Authority received a top national award from the Association of Metropolitan Water Agencies for its commitment to improving the region’s water supply reliability in a manner that balances economic, social and environmental needs.

Water Authority board chairman Jim Madaffer addresses the National Albondigas Political Society of San Diego about water's importance to the region's economy. Photo: Water Authority Water supply reliability

Madaffer: Collaboration Propels San Diego Water Supply Reliability

As the San Diego County Water Authority celebrates its 75th anniversary this month, Board Chair Jim Madaffer offered a fresh vision of the region’s water future and outlined new efforts to ensure water supply reliability for generations to come at the National Albondigas Political Society of San Diego meeting in Chula Vista.

Madaffer pointed to the 2003 Quantification Settlement Agreement with the Imperial Irrigation District as an example of the creative thinking and political leadership needed to secure reliable water supplies not only for San Diego County, but across the southwestern U.S by working cooperatively.

“We were able to work out a deal with the Imperial Irrigation District for 200,000 acre-feet of water,” said Madaffer, noting that IID has priority rights to Colorado River water supplies. “How smart to have this insurance policy for the region.”

Madaffer said one of the key efforts ahead is securing storage rights for the San Diego region’s water at Lake Mead, a strategy that could offer benefits to the San Diego region and more broadly across the Southwest by minimizing the chances that Lake Mead will slip in formal shortage status.

Water Authority board chairman Jim Madaffer (right) with John Dadian of the National Albondigas Political Society of San Diego. Photo: Water Authority water supply reliability

Water Authority Board Chair Jim Madaffer (right) with John Dadian of the National Albondigas Political Society of San Diego. Photo: Water Authority

Creative concepts explored to improve water supply reliability

Madaffer also outlined some of the concepts being explored by the Water Authority and its member agencies to improve water supply reliability with more diverse water supply sources, along with engineering and political creative thinking.

Madaffer said the Water Authority’s Board of Directors is considering a study about constructing a regional pipeline system to move the San Diego region’s independent water supplies from the Imperial Valley directly to San Diego. He said the options offer additional advantages to farmers in Imperial County and the Salton Sea.

“I’m a regionalist,” said Madaffer. “I’m interested in what we can do to make sure all of our member agencies are supported, and make sure water delivery works for the entire region.”

Graphic: Water Authority

San Diego is Brought to You by Water

Displaying a chart showing the change in water supply sourcing from 1990 to today, Madaffer asked, “Do we think we can insulate our region from the ravages of drought, so we aren’t depending on pipeline relining and several pipelines delivering imported water?”

He said the region’s approach includes a mix of investments, backed by efforts to use water wisely.

“We’re using less water today with 900,000 more people than we did back in 1990,” said Madaffer, calling it a conservation success story. “All our member agencies, plus each of you in this room, are responsible for helping make it happen.”

Madaffer also touted the region’s innovation culture.  “From Qualcomm to BIOCOM to all of the technology we produce, we are a hotbed of innovation in the region,” he said. “If you remember our drought back in the 1990s, there were states trying to grab our people, saying ‘Hey, work in our state instead, because California is out of water.’ We’ve changed that narrative 100 percent … San Diego is Brought to You by Water.”

Switchfoot Guitarist Jon Foreman Sings Praises of San Diego Water Reliability

Switchfoot Guitarist Jon Foreman Sings Praises of San Diego Water Supply Reliability

The San Diego County Water Authority has partnered with San Diego singer and guitarist Jon Foreman of Switchfoot to create a series of videos highlighting the value of water to the region’s economy and quality of life.

From sustaining world-famous tourist destinations to making world-class guitars, the San Diego lifestyle wouldn’t be possible without clean and reliable water supplies delivered by the Water Authority and its 24 member agencies.

“It takes a huge investment from the San Diego County Water Authority and its member agencies to maintain the pipes that deliver water across our region,” Foreman says in one of the videos.

Reliable water supply fuels San Diego economy

The video series includes virtual tours of the Claude “Bud” Lewis Carlsbad Desalination Plant, Olivenhain Dam and Reservoir, and the Water Conservation Garden in El Cajon.

Foreman talks with Mark Cafferty, president and CEO of the San Diego Regional Economic Development Corp., about the importance of water to some of the region’s biggest industries.

He also tours the Water Conservation Garden, where residents and businesses can learn how to use water efficiently and “make the most out of every drop.”

BRO-AM brought to you by water

The Water Authority is sponsoring Switchfoot’s annual BRO-AM beach festival, which is set for June 29 at Moonlight Beach in Encinitas.

The Water Authority’s Brought to You by Water outreach and education program is designed to convey the importance of safe and reliable water supplies for sustaining the region’s 3.3 million people and its $231 billion economy.

Starting in 2018, the Water Authority has highlighted some of the region’s core industries – tourism, manufacturing, brewing and agriculture – that would not exist without substantial investments in water supply reliability by the Water Authority and its 24 member agencies.