Bay-Delta Conservation Plan:Seeking Answers for San

Diego

Citizens Coordinate for Century 3February 27, 2014

Dennis A. Cushman, Assistant General ManagerSan Diego County Water Authority

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Water Authority Support for a Bay-Delta Solution

Water Authority and San Diego business community support a Bay-Delta fix◦ Supported 2009 legislation that established co-equal

goals: Water Supply Reliability Ecosystem Restoration

San Diego ratepayers pay the second-largest share of State Water Project costs

Water Authority Board of Directors:◦ Bay-Delta Policy Principles guide review of a Delta solution◦ No water agency in California has undertaken a more

rigorous, independent evaluation of BDCP◦ Has not endorsed a specific project or solution

Increasing San Diego County's Water Supply Reliability through Supply

Diversification

Metropolitan Water District

Imperial Irrigation District Transfer

All American & Coachella Canal Lining

Local Surface Water

Groundwater

Conservation (existing and additional)

2013

1991

Total = 645 TAF

Recycled Water

297 TAF 46%

46 TAF 7%

21 TAF 3%

27 TAF 4%

80 TAF 13%

103 TAF 16%

550 TAF 95%

28 TAF 5%

2020

Total = 779 TAF

231 TAF 30%

48 TAF 6%

27 TAF 4%

44 TAF 6%

103 TAF 13%

80 TAF 10%

190 TAF 24%

56 TAF 7%

Seawater Desalination

Total = 578 TAF

TAF=Thousand Acre-Feet

71 TAF 11%

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1990: 672,800 acre-feet 2013: 297,000 acre-feet 2020: 231,000 acre-feet: 66% less than

1990

MWD’s Largest Customer: San Diego County Water Authority Cutting MWD Purchases by 66%

1990 2013 20200

100,000200,000300,000400,000500,000600,000700,000800,000900,000

MWD purchasesTotal Water Use

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MWD’s 2nd-Largest Customer: LADWP’s to Cut MWD Purchases by 50%

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Most of MWD’s Customers Plan to Reduce Their Reliance on MWD

How Much Will Water Ratepayers Pay?(BDCP Graphics)

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2013Water Contractors Pay 68%

$16.8 Billion

2014Water Contractors Pay up to 100%

$25 Billion

How Much Will San Diego Ratepayers Be Charged? For How Much Water?

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San Diego

County Water

Authority

$1.1 Billion to

$2.2 Billion

San Diego

County Water

Authority

54,330 – 76,786 AF

Potential Cost to San Diego Ratepayers?

Potential Water Supply Benefit to San Diego?

“But it is a voluntary project. There’s nothing mandatory about this. The State cannot impose these costs on anyone, including yourselves.” -- Dr. Gerald Meral, former Deputy Secretary, Natural Resources Agency, speaking to the San Diego County Water Authority Board of Directors, May 23, 2013

◦ The State of California may not impose these costs on the Water Authority, but MWD can through rate increases

◦ MWD can obligate the Water Authority and its ratepayers to pay billions of dollars for the BDCP, without the consent of the Water Authority’s Board of Directors

◦ The Water Authority should have a choice over water resource investments made on behalf of its 3.1 million customers and the region’s $188 billion economy

Participation in the BDCP isNot Voluntary for the Water Authority

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MWD has pledged to pay 25% or more of the BDCP project costs◦ MWD relies on water sales for 85% of its revenues◦ MWD’s member agencies are not obligated to buy

any MWD water◦ MWD’s member agencies refuse to commit to

back up MWD’s contractual obligation to DWR with contracts of their own

With MWD’s member agencies reducing their purchases of MWD water, who will be around to pay the costs of BDCP?

Who Will Pay for the BDCP?

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MWD’s Rate Projections 2014-2024

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MWD projects average annual rate increases of 1.5% to 5% with BDCP Costs

MWD Rate Increases 2005-2014 Without BDCP

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MWD Tier 1

Treated Rate

MWD Tier 1 Treated(% Increase)

MWD Tier 1

Untreated Rate

MWD Tier 1

Untreated(% Increase)

2005 $443 6.0 $331 1.5

2006 $453 2.3 $331 0

2007 $478 5.5 $331 0

2008 $508 6.3 $351 6.0

2009 $579 14.0 $412 17.4

2010 $701 21.1 $484 17.5

2011 $744 6.1 $527 8.9

2012 $794 6.7 $560 6.3

2013 $847 6.7 $593 5.9

2014 $890 5.1 $593 0

Total % Increase 100.9% 79.2%

Compounded Annual Growth

Rate7.9% 6.2%

BDCP $5/Month Per Customer, Yet Final Cost Allocation is “TBD”

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BDCP Public Comment Period

“The BDCP Encourages Public Participation”

Water Authority Asking Questions

1. After accounting for local supply development, what is the real demand for water from the Delta?

2. What is the right-sized project to meet the demand?3. Where is the financing plan to pay for the project?4. Who is going to commit to pay for it?5. Is participation in the BDCP conveyance project

voluntary for the San Diego County Water Authority?6. Should MWD contractually commit to pay billions of

dollars without contractual commitments from its 26 member agencies to pay it?

7. How will Water Authority ratepayers be protected from paying a disproportionate share of BDCP costs?

Suggested Questions for Comment Letters

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Send comment letters to:

BDCP CommentsRyan Wulff, National Marine Fisheries Service650 Capitol Mall, Suite 5-100Sacramento, CA 95814

BDCP Comment Letter Deadline: June 14, 2014

For More Information on the Water Authority’s Ongoing Analyses of BDCP and Alternatives:

www.sdcwa.org/bdcp