Poseidon Resources received a one-notch upgrade to BBB from Fitch Ratings ahead of plans to privately place a $45 million note to finance construction of a new intake system for its desalination plant in Carlsbad, California.
Bank of America Merrill Lynch won the right to purchase the three-year note, expected to close in November, according to sources close to the deal.
For the second consecutive year, the San Diego County Water Authority received two first place awards from the San Diego Press Club for its public outreach and education work. The awards were presented at the 2019 San Diego Press Club 46th Annual Excellence in Journalism Awards October 29 at the Jacobs Center for Neighborhood Innovation’s Joe and Vi Jacobs Community Center.
San Diego’s finest reporters, photographers, writers, artists, and communicators were honored with the region’s top awards in one of the largest annual competitions in the United States.
The Water Authority received the following Press Club awards:
Websites, Public Service or Consumer Advocacy Site: First place, Water News Network
Public Relations, Public Information and Trade Publications, Special interest on one-time publications: “San Diego County Water Authority: 75 Years and Counting”
The Water News Network has proven to be a valuable source of water news and information for the San Diego region since it started in May 2018. This is the second consecutive year the Water News Network website has won first place in this category.
“Traditional news organizations face increasingly limited resources, but our constituents still have the need for accurate information about water issues and efforts by the Water Authority and its member agencies to secure a safe and reliable water supply for the San Diego region,” said Denise Vedder, public outreach and conservation director for the San Diego County Water Authority. “The Water News Network is an effort to provide this information. It has also become a tip sheet for regional news media to follow water issues and generate their own independent reporting, which has been a welcome additional benefit.”
“San Diego County Water Authority: 75 Years and Counting,” explored San Diego’s water history, needs and the 24 member agencies that serve the region. The one-time publication was a special section supplement within the Sunday, June 9, 2019 San Diego Union-Tribune, honoring the founding of the organization on June 9, 1944.
“The San Diego Press Club Excellence in Journalism awards shows that solid research, writing, reporting and photography matter more than ever,” said Karyl Carmignani, 2019 Press Club president. “I’m proud our organization honors student and professional journalists and public relations professionals in San Diego.”
This year’s Journalism Awards program drew more than 950 entries across multiple media categories. Judges included members of press clubs in San Francisco, Los Angeles, New Orleans, Rochester (New York), Florida, Cleveland, Orange County, Milwaukee, Tulsa, and Alaska.
The Salton Sea Authority honored out-going Assistant Secretary of Salton Sea Policy Bruce Wilcox during the Authority’s October 24 board meeting. Wilcox was at the meeting when the Authority’s Board of Directors unanimously passed a resolution recognizing his efforts to improve the Salton Sea.
He was appointed to serve as assistant secretary within the California Natural Resources Agency in 2015 and assigned to work on Salton Sea restoration efforts. His appointment followed the formation of the Salton Sea Task Force.
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.
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.”
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.
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.
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.
Ensuring water for future generations requires investing and investigating big ideas, according to Sandy Kerl.
Kerl, acting general manager of the San Diego County Water Authority, shared some of those ideas today in San Diego, as she delivered the opening remarks at the California-Nevada Section of the American Water Works Association annual fall conference, which runs through Thursday at the Town and Country Hotel Convention Center.
The theme of the conference is “Re/Source: Sustaining Life Through Diversity of Water.”
The Water Authority has worked for three decades to increase San Diego County’s water supply reliability through supply diversification in a region with few natural water assets.
“While we’re proud of the progress we have made, we know that we can’t stand still,” said Kerl.
She described three of the “big ideas” the Water Authority is exploring to increase its water portfolio to meet the needs of 3.3 million people and a $231 billion economy:
“We are investing and investigating big ideas for future generations,” says @sdcwa Acting G.M. Sandy Kerl in opening session remarks @CANVAWWA #CANVAFC2019
?Here’s 3:
• Major pumped storage project
• New Colorado River water conveyance system
• Storage account in Lake Mead pic.twitter.com/hkq8sKg7c4— San Diego County Water Authority (@sdcwa) October 22, 2019
Kerl also said San Diego County residents play a big part in making water conservation a success.
“I’m proud to say that our 2019 public opinion survey shows that virtually every resident believes in water-use efficiency as a civic duty,” she said.
During a panel discussion, Kerl talked about the importance of supply diversification.
“Creating new sources of supply is critical, but sustainability is really about having a balanced water portfolio approach to ensure a safe, reliable supply,” said Kerl. “Potable reuse is another piece of the puzzle, but you can’t recycle what you don’t have, so we need to look at creating new sources of water supply, such as desalination.”
The theme of resilience and sustainability was echoed by the other panelists.
Cynthia Koehler, executive director of WaterNow Alliance, said the organization’s “Tap into Resilience” initiative offers support for projects to enhance water resources now and for future generations.
“The initiative is a unique and comprehensive set of resources for water decision-makers, but also for utility staff and managers to help them implement sustainable water systems,” said Koehler.
Paula Kehoe, director of water resources for the San Francisco Public Utilities Commission, said drought, climate change, and, in particular for the utility, pending environmental regulation, could cause significant issues for water supplies.
“Conservation has been key to increasing our local water supply,” said Kehoe. “We also are pumping groundwater to increase local supply, and we have a groundwater storage and recharge program to build up groundwater supplies for future droughts.”
Ensuring water for future generations requires investing and investigating big ideas, according to Sandy Kerl.
Kerl, acting general manager of the San Diego County Water Authority, shared some of those ideas today in San Diego, as she delivered the opening remarks at the California-Nevada Section of the American Water Works Association annual fall conference, which runs through Thursday at the Town and Country Hotel Convention Center.
The Escondido Republican Club (TERC) will be holding its monthly lunchtime meeting on Monday, October 21, featuring guest speaker Jim Madaffer, board chairman for the San Diego County Water Authority.
Madaffer originally joined the Water Authority Board in November 2012. He is president of Madaffer Enterprises, which specializes in public policy and government relations.
Ramona Municipal Water District is among the San Diego County Water Authority’s 24 member agencies that are recognizing CWA’s 75th anniversary.
Denise Vedder, director of public outreach and conservation for CWA, announced the milestone and thanked the RMWD representatives for their support at Oct. 8 district board meeting.
State legislation allowing veterans to receive credit for their military education and experience when applying for civilian water and wastewater system operator certifications in California was recently signed.
San Diego County Water Authority and the Otay Water District co-sponsored Assembly Bill 1588 to increase the number of military veterans entering the civilian water and wastewater industry at a time when many Baby Boomers are retiring.
