water talks: emergency storage project
TRANSCRIPT
Frank Belock
Deputy General Manager January 31, 2012
$3.5 billion CIP (1989 – 2030) $1.5 billion Emergency Storage Program (ESP)
Dozens of major projects – completed or under construction
2 Olivenhain Reservoir and Lake Hodges
Four Phases
System of pipelines, pump stations and reservoirs
Store water locally
Provide more flexible water deliveries
Over 90,000 AF
Meet needs through 2030
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Pipeline
Dam and Reservoir
Pump Station
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Project: Olivenhain Pipeline
Completed: 2002
Cost: $33 million
Benefit: Improved Water Delivery
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Project: Olivenhain Dam & Reservoir
Completed: 2003
Cost: $198 million
Benefit: 24,000 AF of storage
Completed: 2004
Olivenhain Pump Station Project: Olivenhain Pump Station
Completed: 2005
Cost: $45 million
Benefit: 24,000 AF of storage
Pipeline
Pump Station
Transmission Line
Hydroelectric Power generation
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Project: Lake Hodges Pump Station and Pumped
Storage Projects
Completed: 2012
Cost: $181 million
Benefits: 20,000 AF ESP storage; 40MW power 10
120 feet deep
Equivalent to a 10 story building underground
Helps to capture runoff
Pumps up 770 feet to Olivenhain Reservoir
Generate hydroelectric power during peak power demands
25-year Power Purchase and Sale Agreement with SDG&E
SDG&E Revenues + Energy Savings
~ $6 M / yr
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Project: San Vicente Pipeline, Pump Station &
Surge Tank
Completed: 2011
Cost: $459 million
Benefit: Improved Water Delivery
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Project: San Vicente Dam Raise Complete: 2013 Cost: $449.5 million
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Benefit: Increase reservoir capacity by 152,000 acre-feet
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Rendering of Dam Raised by 117 Feet
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San Vicente Reservoir After Fill
Marina RCC Batch Plant
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RCC Conveyor System
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Dam Raise RCC Placement
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San Vicente Marina Facilities
2004 OLIVENHAIN
24,000 AF
HODGES
20,000 AF 2010
SAN VICENTE
152,000 AF 2013
TOTAL- 196,000 AF (90K Emergency + 100K
Carryover + 6K Operational)
Enhancing Regional Water Supply Reliability
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Construction of first facilities began in 2000
Final phase complete in 2014
Costs spread out over several decades to minimize
water rate impacts
Provides 90,100 acre-feet of water storage for
emergency use
Environmental mitigation is included to make up for
construction impacts
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San Diego County Water Authority
The amount of money at stake in the Water Authority’s rate lawsuit vs. MWD (over 45 years):
$1.3 billion to $2.1 billion
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In October 2003, Colorado River QSA is executed: ◦ Water Authority signs 45- to 75-year deal to buy 200,000
AF annually from the Imperial Irrigation District
◦ Water Authority agrees to line the All American and Coachella canals and receive 80,000 AF annually for 110 years
◦ Requires transportation rate from MWD to move supplies to San Diego through MWD’s system
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MWD had to disaggregate its uniform water rate to develop a transportation charge for the Water Authority’s transfer supplies
Facing a loss of water sales revenues due to the Water Authority’s supply diversification, MWD took vast majority of its water supply costs and misallocated them to its transportation charge to move the Water Authority’s IID and Canal Lining transfer supplies
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Charged for Transportation
Charged for Purchase of MWD Water 31
< 2003 2003>
System
Access
Rate
Power
Rate
Water
Stewardship
Rate
Water
Supply
Rate
Uniform
Water
Rate
MWD
System
Costs
Water
Supply
Costs
Water Supply Costs
MWD System Costs
MWD Must
Disaggregate
Its Costs
New Rate Structure Misallocates Water Supply
Costs to Transportation Charge
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Charged for Transportation
Charged for Purchase of MWD Water
System
Access
Rate
Power
Rate
Water
Supply
Rate
Water Supply Costs
MWD System Costs
MWD is required to place disputed payments made by the Water Authority into an escrow account ◦ By end of 2012, escrow balance will grow to
approximately $78 million
◦ By the end of 2013, escrow balance will grow to approximately $135 million
If the Water Authority wins the case, MWD must return the money to the Water Authority
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Case assigned to San Francisco Superior Court Judge Richard Kramer ◦ Case has been designated as “complex” Assigned to single judge for all purposes
Complex cases generally get more attention and resources from the court
Estimated trial court decision in late 2012
Imperial Irrigation District and Utility Consumers’ Action Network (UCAN) are litigants on Water Authority’s side
Jan. 6, 2012: Court granted Water Authority and IID motion to allow discovery in case
Next hearing: Feb. 17, 2012 (case management conference)
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Visit our website: SDCWA.org
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