Tag Archive for: COVID-19

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Strategic Steps Minimize Water Rates for 2021

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Following a public hearing, the San Diego County Water Authority’s Board of Directors today adopted rate increases for 2021 that are 30% lower than proposed last month following a series of refinements by staff. In addition, the Board directed staff to return in September or October with any further opportunities to reduce the 2021 rate increases, such as a decrease in rates set by the Metropolitan Water District of Southern California or the acquisition of federal or state economic stimulus funds.

As adopted June 25, the all-in rates charged to the Water Authority’s 24 member agencies will increase by 4.8% for untreated water and 4.9% for treated water in calendar year 2021. The new rates take effect January 1, 2021.

Rate increases are driven by reduced water sales, higher rates and charges from MWD and continued regional investments in supply reliability.

Secure water supply is foundation of economic recovery

Since the staff’s rate proposal was released in May, the Water Authority re-evaluated several assumptions driven by COVID-19 recessionary pressures based on new economic data and forecasts. The Water Authority also funded some costs related to the Carlsbad Desalination Plant this year instead of in 2021. The 2021 rates and charges may be further reduced if MWD makes material changes when revisiting its budget and rates this fall.

“We’ve taken a series of strategic steps to minimize rate impacts during this pandemic-induced recession, despite numerous factors putting upward pressure on rates,” said Water Authority Board Chair Jim Madaffer. “At the same time, the Water Authority is maintaining its long-term fiscal stability while ensuring a safe and reliable regional water supply for residents and businesses that will be the foundation of our economic recovery.”

In 2021, the Water Authority will charge its 24 member agencies an all-in municipal and industrial rate of $1,474 per acre-foot for untreated water, or $68 more per acre-foot than they currently pay. Charges would be $1,769 per acre-foot for treated water, or $83 more per acre-foot than in 2020.

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. (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.)

In addition, the rates package includes new Permanent Special Agriculture Water Rates, following the Board’s decision late last year to make the temporary program permanent. The program provides farmers with lower rates that correspond to a lower level of water supply reliability. In 2021, the untreated PSAWR will increase from its current level of $755 per acre-foot to $777 per acre-foot and the treated PSAWR will increase from $1,035 per acre-foot to $1,072 per acre-foot.

Rising costs from MWD affect rates

The fiscal pressures faced by the Water Authority include:

  • Reduced water sales, which are 14% below the current budget and expected to remain low in 2021 due to coronavirus-related business closures and other factors. Decreased water sales put upward pressure on rates because costs must be spread across fewer units sold.
  • Rising costs from MWD that reflect continued increases to its base supply rates and charges and the amount MWD charges to transport the Water Authority’s independent Colorado River supplies. For the Water Authority, MWD’s adopted 2021 rates increase supply costs by more than 9%, or $15.4 million.

The Water Authority’s 2021 rates were 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, and strategic tools such as the Long-Range Financing Plan.

In addition, the 2021 rates are designed to ensure Board-adopted debt coverage ratios that support the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects. The Water Authority has credit ratings of AAA with a stable outlook from S&P, AA+ from Fitch, and Aa2 with a stable outlook from Moody’s.

The rates adopted by the Board are the result of strategic measures that include:

  • Providing more than $80 million in rate relief from the Rate Stabilization Fund over the next 24 months.
  • Capitalizing on historically low interest rates and strong credit ratings by lowering annual debt expenditures by optimizing cash to restructure outstanding debt to provide significant savings.
  • Planning to withdraw stored water to reduce water purchases while maintaining water reserves for future years – the result of careful planning and investments over more than two decades.
  • Reducing budget expenditures with a hiring freeze reduced professional services contracts and reprioritizing more than $30 million in capital projects.

Fallbrook PUD Board Members Tour Construction Project

/in , , /by /Water News Network
As a result of the coronavirus pandemic, public agencies have found creative solutions to holding meetings in compliance with the State of California’s meeting laws. Recently, Fallbrook Public Utility District board members stepped away from their video screens, using the opportunity to take a field trip to view a new project while conducting a traveling board meeting.
The Santa Margarita River Conjunctive Use Project is a joint project with Marine Corps Base Camp Pendleton, and will eventually supply about 30% of the District’s water, and virtually all of Camp Pendleton’s water.
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A COVID-19 Hit to Public Power? For Some, it’s Not All Bad

/in , /by /Utility Diveby Matthew Bandyk

At a May meeting of the board of directors of the Brownsville, Texas, Board of Public Works, the utility’s director of finance Mike Perez made an announcement that was perhaps surprising in the middle of a pandemic.

“April was a good month,” Perez said. Revenue was up, in part due to customers staying home and using more electricity. Accounts receivable were “in line” with the same period a year ago, indicating that customers were mostly able to pay their bills. “We are not seeing anything alarming so far,” Perez said.

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In Letter To Congress, Water Agencies Call For Drinking Water Relief Funding

/in , , /by /Valley Public Radio - Central Valleyby Kerry Klein

In March, the COVID-19 relief bill known as the CARES Act set aside $900 million to help Americans pay their utility bills. Earlier this week, a broad coalition of water agencies delivered a letter to Congress advocating for more funding. The letter, submitted Monday to House Speaker Nancy Pelosi, Minority Leader Kevin McCarthy and other California Congressional delegates, argues that billions of federal dollars are still needed for water infrastructure maintenance and assistance with water bills.

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Hundreds of U.S. Cities Testing Sewage for Early Signs of Coronavirus Hotspots

/in , , /by /Forbesby Alexandra Sternlicht

Local officials in Oregon, California, New York, Utah, Florida and many other places are collecting sewage samples to test for coronavirus, which experts say could allow for detection of hotspots for the disease before the diagnosis of clinical cases.

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The Fallbrook PUD Board tour group initially drove from the FPUD administration building to the Alturas Road plant and then traveled along the pipeline alignment before arriving at the Gheen Pump Station. Photo: Fallbrook Public Utilities District

Fallbrook PUD Board Members Tour Construction Project

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As a result of the coronavirus pandemic, public agencies have found creative solutions to holding meetings in compliance with the State of California’s meeting laws. Recently, Fallbrook Public Utility District board members stepped away from their video screens, using the opportunity to take a field trip to view a new project while conducting a traveling board meeting.

The Santa Margarita River Conjunctive Use Project is a joint project with Marine Corps Base Camp Pendleton, and will eventually supply about 30% of the District’s water, and virtually all of Camp Pendleton’s water.

Fallbrook PUD board members view construction project

Construction of the first section of pipeline on Merida Drive is part of the Santa Margarita River Conjunctive Use Project. This segment of pipeline between Alturas and Mission roads is about 4,500 linear feet and is 35% installed. Photo: Fallbrook Public Utilities District Fallbrook PUD Board

Construction of the first section of pipeline on Merida Drive is part of the Santa Margarita River Conjunctive Use Project. This segment of pipeline between Alturas and Mission roads is about 4,500 linear feet and is 35% installed. Photo: Fallbrook Public Utility District

At the time of the tour, the project had been under construction for 250 days. Due to COVID-19 and social distancing restrictions, board members and others who attended the traveling meeting stayed in their cars. While behind the wheel, board members wove through parts of Fallbrook to follow the path of the new pipeline. With their smartphones turned on and hands-free, representatives followed each other in a single file parade while listening to a live conference call with the project contractor.  Board members learned about construction progress, and saw where and how the pipe will be installed.

The tour and the project began at the treatment plant on Alturas Road, where bulldozers and heavy machinery are moving earth to build the pipeline and a water treatment plant. The pipeline will transport water from the plant through parts of central Fallbrook, ending at McDonald Road. The project also includes a new four million-gallon storage tank, where the tour ended. Participants discussed the possibility of a subsequent tour to view ongoing progress with construction of the facilities.

The entire construction process will take approximately two years to complete, with the pipeline becoming fully operational by 2022.

Over 700 Cash-Strapped Cities Halt Plans to Repair Roads, Water Systems or Make Other Key Investments

/in , /by /The Washington Postby Tony Romm

More than 700 U.S. cities have halted plans to improve roadways, buy new equipment and complete a wide array of upgrades to water systems and other critical infrastructure, as government officials slash spending to shore up the massive holes in their budgets created by the coronavirus.

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Experts: Keep Flushing During the Pandemic

/in , , /by /WaterWorldby Harold Mosley

In these uncertain times, protecting the integrity of water lines, and moving water in them to prevent stagnation, is critical, particularly in schools and manufacturing plants that are experiencing reduced and interrupted water usage during the pandemic.

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Opinion: An Attempt to Steal Valley Water in the Dark of Night

/in , /by /GV Wire (Fresno)by Adam Gray

With a global pandemic, a catastrophic economic recession, and record-high unemployment numbers, one would think the state has enough issues to tackle. But proponents of a state water grab that I have been fighting since the day I was sworn into office in 2012 disagree. Where others see turmoil and anguish, they see opportunity. Apparently, they believe in the adage, “Never let a crisis go to waste.”

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Water Utility Hero of the Week: Keith Swiatkowski, Otay Water District

/in , , /by /Water News Network

This feature highlights water utility employees in the San Diego region working during the coronavirus pandemic to ensure a safe, reliable and plentiful water supply. The water industry is among the sectors that are classified as essential. Keith Swiatkowski, Otay Water District Water Systems Operator III, is the Water Utility Hero of the Week.

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