Water authority announces long-term sale of surplus to Riverside County

The San Diego County Water Authority on Thursday announced a 21-year agreement to sell surplus water to the Western Municipal Water District in Riverside County, potentially offsetting costs for local customers.

Western Municipal, which serves nearly 1 million residents in western Riverside County, will pay $13.5 million annually for 10,000 acre-feet of water — enough for 30,000 homes. It will also pay $40 million up front for the equivalent of three-years supply that can be tapped in case of an drought emergency.

“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. “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.”  

Thanks to three decades of investment in aqueduct improvements, increased dam capacity and desalination, the Water Authority projects ample supply through 2050, even if there are multiple dry years. Because of that, the authority is seeking to sell surplus water to reduce rate increases for San Diego County customers. 

“The county’s ratepayers continue to benefit from investments in water conservation that give us flexibility to balance water affordability and reliability,” said Water Authority General Manager Dan Denham. “This agreement would not have been possible without the incredible team at  Western Water that shares our commitment to visionary leadership and collaboration in  developing a new way to think about water resources.” 

Western Water officials said the partnership strengthens long-term water planning for their region by securing  access to highly reliable supplies at “one of the most cost-effective” rates.

“Partnerships like this show what is possible when water agencies work together,” said Laura  Roughton, president of Western Water’s board of directors. “By sharing secured resources, we  can strengthen water reliability for our communities while freeing up supplies that are needed  elsewhere across the region. It’s a win for our customers, a win for San Diego, and a win for Southern California’s water system.” 

Water purchased by Western Water will be delivered through existing connections within the  Metropolitan Water District of Southern California’s regional pipeline system, meaning no new  infrastructure is required.

The long-term agreement drew immediate praise from San Diego political and business leaders.

“The San Diego County Water Authority has worked for decades to ensure our community has enough water no matter the weather. Now, the Water Authority is taking another strategic step forward with water transfers that will help control wholesale water
costs. This is a major win for our region,” said Rep. Scott Peters in a statement.

Mark Cafferty, president and CEO of the San Diego Regional Economic Development Corp., called the agreement “a smart, forward-looking approach that helps control wholesale water rates while ensuring the reliable supply our regional economy depends on.”

The Water Authority is exploring other water sales opportunities. Earlier this year, the board approved an agreement with the U.S. Bureau of Reclamation to explore a pilot program that could allow desalinated seawater to be exchanged with Colorado River Basin states.