News Releases
San Diego County Water Authority
Press Release: November 20, 2003 |
Contact:
John Liarakos
Office (858) 522-6703
Mobile (858) 761-2544 |
or
Donna Nenow
Office (858) 522-6707
Mobile (858) 414-8168 |
Ed Van Herik
San Diego Gas & Electric
(877) 866-2066 |
Water Authority board approves 10-year power purchase agreement with SDG&E
Hydroelectric generator to produce clean, renewable energy for 5,000 households annually
Making a significant new venture into hydroelectric power generation, the San
Diego County Water Authority received approval from its board of directors today
to enter into a 10-year power purchase agreement with San Diego Gas & Electric.
The agreement will provide 25,000- to 30,000-megawatt hours (MWH) of electricity
annually and enable the Water Authority to provide a safe and reliable source
of clean, renewable energy to San Diego County.
The 4.5-megawatt electrical generator will be installed at the Water Authority’s
Rancho Peñasquitos Pressure Control/Hydroelectric facility to be constructed
at Interstate 15 and Mercy Road. It will produce enough electricity annually
for approximately 5,000 San Diego County households. SDG&E will pay the
Water Authority approximately $1.3 million per year or nearly $13 million over
the life of the agreement for the new source of electricity.
“The Water Authority is pleased to have completed this agreement with
SDG&E to provide a new source of clean, renewable electricity for San Diego
County,” said James Bond, vice chairman of the Water Authority’s board
of directors. “In addition to power generation, this new facility will
provide a critical link to our Emergency Storage Project and new flexibility
in moving water throughout our water delivery system.”
James P. Avery, senior vice president of electric transmission for San Diego
Gas & Electric, said the utility is pleased to be working with the Water
Authority to create additional green energy resources in the San Diego region.
“SDG&E is making good on its commitment to acquire 20 percent of its
customers’ energy supply from environmentally friendly renewable resources,”
Avery said. Within the last year, SDG&E energy resource mix has climbed
to approximately 9 percent from renewable resources, such as wind, biomass and
hydroelectric facilities.
In May 2001, the Water Authority board adopted an energy strategy that seeks
to work in coordination with other local agencies’ energy planning and
development efforts, develop economical energy supplies and monitor ongoing
developments in the energy market.
The Water Authority and SDG&E agreed to a fixed energy price of $53.70
per MWH, which is the benchmark price set by the California Public Utilities
Commission for renewable energy resource projects. All terms and conditions
of the agreement will take effect following CPUC approval.
With the resulting $1.3 million in annual income, the Water Authority can
pay back the cost of the hydroelectric portion of the project in approximately
seven years. The facility is scheduled for completion by mid-2005 with the power
generator fully operational by the end of 2005.
The pressure control portion of the facility will pressurize and provide flow
control for untreated water flowing in the Water Authority’s second aqueduct
between Twin Oaks Valley Diversion Structure just north of San Marcos and Rancho
Peñasquitos. It will also provide a critical interconnection between
the second aqueduct and the planned San Vicente Pipeline.
When completed in 2008, the new pipeline will deliver water to and from the
San Vicente Reservoir. This will allow the Water Authority to move water either
north or south and deliver water at high pressure to its other pipelines to
the north without the need for pumping. These capabilities provide important
new options for moving water within the Water Authority’s aqueduct system
in the event of an interruption in imported water deliveries to San Diego County.
It will also help enhance pipeline operations for normal water deliveries.
The San Diego County Water Authority is a public agency serving the San Diego
region as a wholesale supplier of water from the Colorado River and Northern
California. The Water Authority works through its 23 member agencies to provide
a safe, reliable water supply to support the region’s $126 billion economy
and the quality of life of 3 million residents.
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Editors/Reporters information links:
For information on the Water Authority’s power strategy: Power
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