Tag Archive for: San Diego County Water Authority

The Water Authority installed solar panels at three locations in 2011: its Kearny Mesa headquarters and Escondido operations center; and the Twin Oaks Valley Water Treatment Plant. Photo: Vallecitos Water District

Water Authority Greenhouse Gas Emission Tracking Is Climate Leadership Case Study

The Water Utility Climate Alliance has added the Water Authority’s efforts to reduce greenhouse gas emissions to its mitigation case studies library. The case studies provide valuable information and inspiration for greenhouse gas mitigation or sewage thermal energy use projects from concept to implementation for water utilities across the U.S.

Water Authority Senior Water Resources Specialist Goldy Herbon said case studies are developed in partnership with WUCA. Contacts are provided in each case study to facilitate follow-up and enable interested readers to learn more. WUCA recognizes the importance of greenhouse gas mitigation as a key climate adaptation strategy and an issue of climate leadership in the water sector.

“By sharing our efforts and experience in GHG reduction with our peers across the U.S., we hope to set an example for other industries and business sectors, leading to even more mitigation efforts,” said Hebron. “The case studies are by no means an exhaustive list, but it is a great starting point for water utilities exploring the potential of implementing their own GHG mitigation projects. Additionally, WUCA is open to adding more GHG projects to its roster.”

The Water Authority greenhouse gas mitigation case study is on WUCA’s webpage.

The Water Authority installed solar panels at three locations in 2011: its Kearny Mesa headquarters and Escondido operations center; and the Twin Oaks Valley Water Treatment Plant.

Energy generated by the solar power systems reduces the Water Authority’s energy costs as well as GHG emissions, making agency operations more efficient for water ratepayers. Combined, the solar power systems will reduce the agency’s energy expenses by nearly $3 million over 20 years. The solar power systems were installed at no cost to the Water Authority through a 20-year power purchase agreement with CleanCapital.

Carlsbad Desalination Plant also listed

Carlsbad Desalination Plant-WNN-primary

Claude “Bud” Lewis Carlsbad Desalination Plant. Photo: Poseidon Water

The Claude “Bud” Lewis Carlsbad Desalination Plant, which supplies nearly 10% of San Diego County’s drinking water, is also featured as a case study. The plant’s energy recovery project, part of its High-Energy Efficiency Design, uses state-of-the-art pressure exchanger technology to recover and reuse a significant portion of the energy from the reverse osmosis process.

The Water Authority recently earned Climate Registered gold status from The Climate Registry for verifying and publicly reporting its greenhouse gas emissions. The effort fosters transparency for the agency’s climate mitigation initiatives and will help the Water Authority track and validate emissions reductions in the future.

The Climate Registry operates North America’s largest voluntary registry for greenhouse gas emissions. The Water Authority’s 2019 and 2020 inventories were verified and published in The Climate Registry’s public database in November, earning the agency gold status for both years.

The Water Authority first developed its Climate Action Plan in 2014 and updates it every five years. GHG emissions against a baseline and tracking progress toward State of California goals. Annual GHG inventories are provided to the board of directors.

Unique role in reducing greenhouse gas emissions

The Twin Oaks Reservoir dual solar array total production is roughly 3.6 mWh annually, enough to power 340 homes. Photo: Vallecitos Water District

The Twin Oaks Reservoir dual solar array total production is roughly 3.6 mWh annually, enough to power 340 homes. Photo: Vallecitos Water District

The Water Authority’s GHG mitigation case studies offer crucial examples of progressive GHG mitigation projects at water utilities with lessons learned during implementation. The selection of case studies represents a wide range of project types (pump optimization, wind power, and battery storage) to provide a strong starting point for utilities to learn from each other. Many of the projects can be applied equally to wastewater and stormwater utilities.

Water utilities have a unique role to play in mitigating GHGs due to the high energy usage of the water industry and being a reliable purchaser of energy, as well as being a trusted leader for other industries and business communities. A key objective for WUCA is for the alliance to continue developing practical examples and case studies of climate adaptation and climate mitigation.

The Water Authority works with its 24 member agencies to deliver water affordably and efficiently across San Diego County, and the agency has championed energy efficiency and environmental sustainability for decades.

FPUD to Use MWD Refund for CUP Loan Repayment

The San Diego County Water Authority has filed multiple rate lawsuits against the Metropolitan Water District of Southern California and has been awarded legal damages and interest payments.

Credit Agencies Cite Water Authority Diversification, Reliability for Strong Ratings

The three major U.S. rating agencies reported strong credit ratings and credit quality for the San Diego County Water Authority kicking off 2022. Newly released analysis by Fitch Ratings, S&P Global, and Moody’s allow the Water Authority to optimize its debt portfolio and minimize the cost of financing vital water reliability projects.

Credit Agencies Cite Water Authority Diversification, Reliability for Strong Ratings

The three major U.S. rating agencies reported strong credit ratings and credit quality for the San Diego County Water Authority kicking off 2022. Newly released analysis by Fitch Ratings, S&P Global, and Moody’s allow the Water Authority to optimize its debt portfolio and minimize the cost of financing vital water reliability projects.

Credit ratings-strong credit ratings-water supply diversity-Carlsbad Desalination Plant

Credit Agencies Cite Water Authority Diversification, Reliability for Strong Ratings

The three major U.S. rating agencies reported strong credit ratings and credit quality for the San Diego County Water Authority kicking off 2022. Newly released analysis by Fitch Ratings, S&P Global, and Moody’s allow the Water Authority to optimize its debt portfolio and minimize the cost of financing vital water reliability projects.

The ratings reports were issued Jan. 27 in anticipation of Water Authority plans to sell $170 million of bonds the week of Feb. 7. Proceeds will be used to finance a portion of the design, acquisition, and construction of various capital projects.

Strong credit ratings

All three rating agencies highlighted the strength of the Water Authority’s significant investments in supply diversification, which allow the agency to meet demands in its service area despite ongoing drought conditions. The Water Authority’s credit quality is deemed strong, in part because the agency adopted its Long-Range Financing Plan in 2021. S&P said, “the LRFP reflects strong management of the authority’s financial and capital needs balanced with long-term affordability for its member agencies.”

Water Authority General Manager Sandra L. Kerl said, “These credit ratings reflect the importance of the Water Authority’s successful effort to diversify the San Diego region’s water supply portfolio combined with strategic financial practices. Consistent investments are protecting the region’s ratepayers from persistent drought conditions while maintaining a safe and affordable water supply.”

Financial leadership, diversified water supply sources

In affirming their credit ratings, the services cited the Water Authority’s financial leadership, including prudent strategies to manage issues related to COVID-19, its success diversifying water supply sources, its commitment to infrastructure maintenance, and its financial reserves for managing contingencies, among other factors.

  • Fitch Ratings affirmed its AA+ rating and gave a stable outlook. Fitch cited the Water Authority’s “strong purchaser credit quality” and “very low” operating costs, as well as a moderate life cycle ratio “reflecting sustained capital investment.” Fitch noted the Water Authority is through the peak of its capital program but retains price risks related to factors such as costs of future water infrastructure investments.
  • S&P Global Ratings revised its long-term outlook to stable from negative for the Water Authority. At the same time, S&P Global Ratings assigned its AAA long-term rating to the agency’s anticipated $170 million series 2022A water revenue bonds. S&P Global noted Water Authority management has “demonstrated an ability to navigate volatile hydrological cycles through adopting rate increases as needed and building prudent financial reserves and storage to mitigate variability.”
  • Moody’s Investors Service reaffirmed its Aa2 rating and stable outlook. Moody’s said, “The stable outlook reflects the likelihood that the Authority’s satisfactory operating performance will remain stable, supported by strong management practices despite challenges associated with ongoing drought conditions, rising costs, and required capital investments.”

Significant projects completed over the past two decades include the San Vicente Dam Raise, Olivenhain Dam, and Twin Oaks Valley Water Treatment Plant. The Carlsbad Desalination Plant has also been completed as a joint project of the Water Authority and Poseidon Water.

To read the most recent rating agency reports for the Water Authority, go to www.sdcwa.org/wp-content/uploads/2022/01/Credit-Rating-Reports-2022.pdf.

(Editor’s Note: All three rating agencies cited ongoing uncertainty resulting from two member agencies’ applications to detach from the Water Authority. Moody’s said detachment could lead to a credit downgrade, which would increase borrowing costs for critical water reliability projects. S&P Global said detachment could challenge affordability and create long-term political risk for the agency, especially if the process sets a precedent that “members can easily detach from the authority.” Information about detachment is at www.sdcwa.org/member-agencies/lafco-reorganization/.)

Credit Agencies Cite Water Authority Diversification, Reliability for Strong Ratings

February 2, 2022 – The three major U.S. rating agencies reported strong credit ratings and credit quality for the San Diego County Water Authority kicking off 2022. Newly released analysis by Fitch Ratings, S&P Global, and Moody’s allow the Water Authority to optimize its debt portfolio and minimize the cost of financing vital water reliability projects.

Partners Agree to Move Ahead on 500 MW San Vicente Energy Storage Facility

Partners the City of San Diego and the San Diego County Water Authority will begin negotiations on a project development agreement with the BHE Kiewit Team to develop Phase 1 of the potential 500 MW San Vicente Energy Storage Facility Project.

The proposed project, which could generate enough energy for about 135,000 households, is subject to a full environmental review and regulatory approvals. If the authority and the city decide to proceed after completing environmental review, the San Vicente Energy Storage Facility would provide up to 500 MW of long-duration stored energy to help meet peak electrical demands throughout southern California and help meet California’s renewable energy goals.

Opinion: Water May Cost More Now, But 30 Years Ago San Diego Almost Ran Out

There’s been a lot of talk lately about the cost of water — and that makes sense given the economic realities faced by many residents, farmers, and businesses. But it also seems that newer generations of San Diegans do not know that there was a time when we didn’t have water when and where we needed it.

Thankfully, that’s not a problem in San Diego County today even though elsewhere drought-stricken communities face the potential of only having enough water to meet basic health and safety needs.

San Vicente Potential Energy Storage Facility Project Moves Ahead

January 27, 2022 – As partners, the City of San Diego and the San Diego County Water Authority will begin negotiations on a project development agreement with the BHE Kiewit Team to develop Phase 1 of the potential San Vicente Energy Storage Facility Project, which could generate enough energy for about 135,000 households.

The proposed project is subject to a full environmental review and regulatory approvals. If the Water Authority and City of San Diego decide to proceed after completing environmental review, the San Vicente Energy Storage Facility would provide up to 500 megawatts of long-duration stored energy upon completion to help meet peak electrical demands throughout Southern California and help meet California’s renewable energy goals.

Improving Personal Financial Literacy at San Diego County Water Authority

Enhancing the financial literacy of employees at the San Diego County Water Authority was a primary objective when staff submitted a grant application for a portion of $1.4 million in funds available to public employers by the Mission Square Research Institute.

The Water Authority was among 24 public sector employees selected for a grant and received $24,884 to implement its three-year strategic plan to help employees improve their financial wellness.