Tag Archive for: Water Supply

San Diego County Water Authority-Budget-Water Rates-Drought

Water Authority Board Adopts $1.7 Billion Two-Year Budget, Approves 2022 Water Rates

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The San Diego County Water Authority’s Board of Directors today adopted a $1.7 billion budget for fiscal years 2022 and 2023 – a 0% change from the current two-year budget – and approved water rates and charges for 2022, following a public hearing.

The all-in rate, which is a blend of fixed and variable rates, will rise by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, due to more rate increases by the Los Angeles-based Metropolitan Water District of Southern California, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials. Actual water bills will vary based on customers’ water use, along with factors unique to their local retail water agencies.

“I’m proud of this budget and rates package in an era of unprecedented challenges,” said Water Authority Board Chair Gary Croucher. “We have contained costs while benefitting from strategic investments in water supply reliability that protect the region’s $253 billion economy and 3.3 million residents from statewide drought conditions. This achievement is only possible due to collaboration with our member agencies, strategic guidance from the Board, and the dedication of agency staff.”

More than 90% of the two-year budget is for buying and treating water or building and financing infrastructure. Seven percent of the budget for Fiscal Years 2022 and 2023 funds the Water Authority’s operating departments. The budget increase for those departments is 2%, or $1.9 million, compared to the current two-year budget.

Urban Water Management Plan-2020-San Diego County Water Authority-San Vicente Dam

The San Diego County Water Authority Board of Directors May 27 approved the Water Authority’s 2020 Urban Water Management Plan highlighting a “water portfolio approach” that ensures reliable water supplies for the region through the 2045 planning horizon – even during multiple dry years. Photo: San Diego County Water Authority

Key initiatives during next two-year budget cycle

  • Long-term planning – The Water Authority’s Long-Range Financing Plan and the Water Facilities Master Plan will be prioritized. Both are critical documents for projecting the Water Authority’s financial future and providing the Board with flexibility. Phase B of the Regional Conveyance System Study will conclude, and the Board will determine whether to proceed. Another focus is developing water storage capacity in Lake Mead to provide additional drought resilience for San Diego County and other parts of the Colorado River Basin.
  • Controlling costs – The budget includes the elimination of seven staff positions, along with a reduction in outside services and minimizing travel. In addition, equipment replacement was evaluated for deferrals, minimizing the budget impact of day-to-day operations. As always, the budget is partly the function of water sales and water rates, which are both trending upward.
  • Capital improvements – The Water Authority’s Capital Improvement Program is the cornerstone of the agency’s efforts to ensure that regional water delivery and treatment systems continue to meet a variety of ever-changing demands. The agency will move forward on the highest-priority asset management projects, along with detailed seismic, hydraulic and cavitation analysis. Staff also will continue to enhance security systems for physical and cyber assets – a responsibility that grows as potential threats continue to expand.
  • Collaborating with member agencies – Water Authority staff in every department work closely with member agencies to support local efforts, from outreach and advocacy to budget and rate development – and those efforts will continue to be a priority. There are opportunities for collaboration both in joint projects and joint policy issues, such as advocating for local decision-making about drought investments and responses.
  • Communicating with stakeholders – Whether it be in the state Capitol or local chambers of commerce, the Water Authority will continue to share the region’s water story through a full range of engagement tools and creative tactics.

Although the Water Authority’s budget spans two fiscal years, the agency sets rates annually to manage changing conditions more effectively. The Water Authority developed its 2022 water rates 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.

Drought-Safe, Supply Investments-Carlsbad Desalination Plant-drought

The San Diego region’s diversified water supply portfolio includes highly reliable, locally controlled and drought-proof supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant. Photo: San Diego County Water Authority

Collaboration with member agencies

The Water Authority also worked closely with its member agencies to keep the proposed rates and charges at the low end of earlier projections.

In 2022, the Water Authority will charge its 24 member agencies an all-in rate of $1,523 per acre-foot for untreated water, or $49 more per acre-foot than they currently pay. Charges would be $1,833 per acre-foot for treated water, or $64 more per acre-foot than in 2021. (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.)

The Water Authority’s overall rate increase is driven by multiple factors, including rising costs from its wholesale water provider, MWD. MWD increased its rates, including the amount it charges to transport the Water Authority’s lowest cost regional supply – high-priority, independent supplies from the Colorado River. Overall, MWD’s rates and charges for the Water Authority in 2022 will increase 3.9%.

Drought-Safe San Diego-San Vicente Reservoir-Drought-Water Supply Portfolio

The San Diego County Water Authority said June 21, that the region is protected from drought impacts this summer, and through 2045, despite continued hot and dry conditions. Photo: San Vicente Reservoir/San Diego County Water Authority

Strategic management

The water rates for calendar year 2022 include strategic withdrawals from the Rate Stabilization Fund. To reduce 2022 rate increases by approximately $65 per acre-foot, the Water Authority plans to draw $25 million from the agency’s Rate Stabilization Fund. The fund was created in 1990 to help avoid rate spikes, especially those driven by reduced water sales. 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 2022 rates ensure debt-coverage ratios that maintain the Water Authority’s strong credit ratings and minimize the cost of borrowing money for construction projects, an approach that 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 2022 and 2023 budget, and 2022 rates, go to pages 58 and 69 in the June Board packet.

Board Adopts $1.7 Billion Two-Year Budget, Approves 2022 Water Rates

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June 24, 2021 – The San Diego County Water Authority’s Board of Directors today adopted a $1.7 billion budget for fiscal years 2022 and 2023 – a 0% change from the current two-year budget – and approved water rates and charges for 2022, following a public hearing.

The all-in rate, which is a blend of fixed and variable rates, will rise by 3.6% for treated water and 3.3% for untreated water in calendar year 2022, due to more rate increases by the Los Angeles-based Metropolitan Water District of Southern California, continued payments for past investments in supply reliability, and inflationary pressures on energy, chemicals, and construction materials. Actual water bills will vary based on customers’ water use, along with factors unique to their local retail water agencies.

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Water Shortages: Why Some Californians are Running Out in 2021 and Others Aren’t

/in , , /by /CalMattersby Rachel Becker Mentioned: San Diego County Water Authority

In Los Angeles, people have been hearing about the dangers of drought for decades. But in this land of infinity pools and backyard putting greens — better suited for rattlesnakes and scrub — water never seems to run out.

Yet little Redwood Valley in Mendocino County, which gets a bountiful 38 inches of rain in an average year and sits near the headwaters of the Russian River, has been devastated by this year’s drought. Each resident has been told to use no more than 55 gallons per day — enough to fill a bathtub and flush a toilet six times.

And in San Jose, where less than half of its usual rain has fallen this year, people have been asked to cut water use by 15% — a target that could become mandatory if locals fail to comply.

When it comes to the impact of drought, location is key. Rain and snow vary greatly across California’s myriad microclimates, leaving some towns, mostly in the north, accustomed to yearly refills of their rivers, reservoirs and aquifers. Others farther south have fewer natural supplies of their own, and in parts of the Central Valley, the drought never really left.

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Opinion: Farmers and Ranchers Need Support During Drought

/in , , /by /CalMattersby Karen Ross and David Shabazian

While California is known for its world-famous entertainment industry and ever-transforming tech sector, agriculture is the often-overlooked backbone of our diverse state and one of its earliest economic engines.

Our state’s multigenerational farmers and ranchers not only feed Californians, but also supply one-third of our country’s vegetables and two-thirds of its fruits and nuts, while also leading the nation in milk production.

This Giant ‘Inland Ocean’ is Southern California’s Last Defense Against Drought

/in , , /by /Los Angeles Timesby Louis Sahagun

Mechanical engineer Brent Yamasaki set out amid the recent blistering heat wave to take stock of the giant dams, pumps and pipes that support Diamond Valley Lake in Riverside County, the largest storehouse of water in Southern California.

The reservoir, which he helped build 25 years ago, is 4½ miles long and 2 miles wide and holds back nearly 800,000 acre-feet of water — so much that it would take 20,000 years to fill it with a garden hose.

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Drought: Transbay Pipeline, Desalination Plant Could Boost Marin’s Dwindling Water Supply

/in , /by /CBS SF Bay Areaby John Ramos

Communities across the state are desperately searching for ways to make their dwindling water supplies last. In Marin County, one water district is considering sources that they’ve looked to in the past.

The Marin Municipal Water District gets almost all of its water from the Mt. Tamalpais watershed. But one look at Nicasio Reservoir, now at less than 30 percent capacity, shows how dire the supply situation is becoming.

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Drought: Emergency Project Being Built to Protect California Water Supplies

/in , , /by /The Mercury Newsby Paul Rodgers

In a new symbol of California’s worsening drought, construction crews are putting the finishing touches on a $10 million emergency project to build a massive rock barrier through part of the Delta in Contra Costa County to preserve water supplies for millions of people across the state.

The 800-foot long barrier — the size of San Francisco’s Transamerica Pyramid laid on its side — is essentially a rock wall, 120 feet wide, built in water 35 feet deep.

Its purpose: To block salt water from the Pacific Ocean and San Francisco Bay from flowing too far east and contaminating the huge state and federal pumps near Tracy that send fresh water south to 27 million people — from San Jose to Los Angeles — and to millions of acres of farmland in the Central Valley and beyond.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Pricey Rock Barriers and Desalination Plants: The Latest in California’s Drought War

/in , /by /Courthouse News Serviceby Nick Cahill

Normally the cargo moving through the Sacramento-San Joaquin River Delta contains expensive commodities meant for ports all around the world, but in drought-riddled California the most indispensable freight is currently destined for the river bottom.

Tugboats pushing and pulling barges loaded with boulders have suddenly become key performers in the state’s battle with a rapidly expanding drought, delivering supplies needed to reinforce California’s buckling water system. Around the clock crews dump the expensive cargo into the river strategically, racing to block salty tidal flows from the water pumps that sustain billions of dollars worth of crops hundreds of miles away.

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Here Are Some Things to Know About the Extreme Drought in the Western U.S.

/in , , /by /Los Angeles Timesby Celina Tebor

Almost half of the U.S. has been in a drought since the start of 2021.

Compounding factors, including low rainfall and snowpack, climate change and persisting droughts from previous years, have escalated into extreme dryness.

The prolonged dryness means low water levels are endangering fish species in Oregon and Colorado, 30% of California’s population is in a drought emergency, and the nation’s two biggest reservoirs on the Colorado River — Lake Powell and Lake Mead — are two-thirds empty.

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If Lake Powell’s Water Levels Keep Falling, A Multi-State Reservoir Release May Be Needed

/in , , /by /Colorado Public Radioby Michael Elizabeth Sakas

Lake Powell’s water level is the lowest it’s been in decades, and the latest 24-month projections from the Arizona and Utah reservoir show that it’s likely to drop even further — below a critical threshold of 3,525 feet by next year.

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