San Diego has so much water it’s considering selling thousands of acre-feet

Less than a month after cutting a deal with a Riverside County water district, the San Diego County Water Authority’s board is set to consider another agreement with a different water agency from the county to the north.

On Thursday, the board will consider supplying an annual quantity of 10,000 acre-feet to the Eastern Municipal Water District of Southern California for 21 years at a rate in year one of around $1,350 per acre-foot. Additionally, if approved, Eastern will pre-purchase an additional 30,000 acre-feet for $19 million. All told, in the first five years of the agreement, the water authority would generate $74 million in new revenue.

The Eastern Municipal Water District of Southern California serves largely rural areas of western Riverside County such as Perris, Hemet, San Jacinto and the Elsinore Valley and serves nearly 1 million people.

If the board approves, the deal would begin with Eastern purchasing 6,240 acre-feet (a unit of measurement describing the amount of water to cover an acre of land in one foot of water) this year, then adding around 950 acre- feet per year until the full annual quantity is reached in 2030.

Last month, the water authority and the Western Municipal Water District inked a similar long-term water supply agreement. Western will also receive a minimum of 10,000 acre-feet of water annually over the next 21 years, enough to supply around 30,000 Southern California households each year.

That agency, which provides water, wastewate, and recycled water services to nearly 1 million people across 527 square miles in Riverside County, also agreed to purchase around 30,000 acre-feet of water for future delivery, a nearly $40 million investment.

“This agreement is a win for San Diego ratepayers, a win for Western, and a win for Southern California,” said Water Authority Board Chair Nick Serrano when the deal was signed last month. “It allows us to maximize the value of the investments San Diego County residents made over decades, strengthen water reliability, and do so in a way that is mindful of affordability and public responsibility. It is exactly the kind of innovative, collaborative approach this moment demands.”

According to that deal, the partnership will generate $13.5 million annually in revenue for the San Diego County Water Authority, with the agreement expected to deliver around $100 million over the first five years after accounting for the upfront payments.

“These paired agreements reflect a continued positive shift in the water authority’s collaborative standing within the Metropolitan community, reinforcing the agency’s role in helping meet regional needs,” SDCWA documents read. “Collectively, they advance the water authority’s strategy to mitigate the risk associated with its contracted supplies by securing predictable and durable long-term agreements, generating stable revenue, and strengthening long- term operational flexibility.”

Water purchased as part of the deals will be delivered through existing connections within the Metropolitan Water District of Southern California’s system, meaning no new infrastructure is needed.