League of Cities, San Diego Oct. 13, 2014

Dennis A. Cushman, Assistant General Manager San Diego County Water Authority

2

Public-private partnership with Poseidon Water

50 mgd (56,000 AF/year)

Largest seawater desalination project in Western Hemisphere

65% complete Expected on-line in

Fall 2015

Outfall

Mouth of Lagoon

P acific O cean

E ncina P ow er S ta tion

D esa l W TP

Carlsbad

San Marcos

TO V W TP

Pipe

line

4

Pipe

line

3

P3 relining 5-miles

New 54-inch steel pipe 10-miles

Pipeline Interconnection

TOVWTP Improvements

Project Components

4 4 4

5

September 2013 September 2014

Carlsbad Flyover

7

Total Capital Cost

Total O&M Costs (Plant and Pipeline) $49 million - $54 million annually

Total Unit Cost

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56,000 acre feet per year 48,000 acre feet per year

$2,014/AF $2,257/AF

Total desalination plant $537 million Total conveyance pipeline $159 million Financing costs $227 million Water Authority improvements and oversight $80 million Total Capital Costs $1.003 billion

$500

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500

$8,500

$9,500

2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045

$/AF

MWD Low Desal Low MWD High Desal High

Comparing the Projected Cost of Seawater Desalination and MWD Full-Service Treated Water

Calendar Year

10

Less than $5 per month,

10%

$5-$9 per

month, 18%

$10-$14 per

month, 23%

$15-$19, 7%

$20 or more per month,

10%

58% respondents indicated willingness to pay an additional

$5 or more per month for seawater desalination

68% would pay something more.

San Diego County Water Authority 2012 Public Opinion Poll

Projected Typical Residential

Monthly Retail Cost 2016

Percent Retail Impact

$5.14 approx. 7%

$7.545 billion water bond passed Legislature and signed by Governor on August 13: ◦ Senate vote: 37-0 ◦ Assembly vote: 77-2 ◦ United support from San

Diego County delegation

On November 4, 2014 ballot as Proposition 1

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Substantial competitive funding opportunities: ◦ Chapter 9: $725 million for water

recycling and advanced treatment technology projects – including potable and non-potable reuse and seawater desalination projects

◦ Chapter 6: $475 million to help fulfill state obligations, including mitigation and restoration obligations at the Salton Sea as part of the QSA

◦ Chapter 7: $100 million for water use efficiency projects

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Specific allocations to San Diego region: ◦ 11% of all regionally allocated

funds – an equitable apportionment

◦ Chapter 7: $52.5 million for local and regional Integrated Regional Water Management projects

◦ Chapter 6: $17 million to the San Diego River Conservancy for land conservation, open space, habitat, wetlands, and water quality improvement opportunities in San Diego River watershed