Deputy General Manager Frank Belock provides an overview of the Emergency Storage Project. Projects covered include Olivenhain Dam, San Vicente Dam Raise, Lake Hodges Pumped Storage and affiliated projects. Also includes an update on the MWD rate litigation currently taking place. From Water Talks: Building and Securing Water Reliability on January 31, 2012.

1. Frank Belock
Deputy General Manager
January 31, 2012

2.  $3.5 billion CIP (1989 – 2030)
 $1.5 billion Emergency Storage Program (ESP)
 Dozens of major projects – completed or under
construction
Olivenhain Reservoir and Lake Hodges 2

3.  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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4.  Pipeline
 Dam and Reservoir
 Pump Station
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5. Project: Olivenhain Pipeline
Completed: 2002
Cost: $33 million
Benefit: Improved Water Delivery

6. Project: Olivenhain Dam & Reservoir
Completed: 2003
Cost: $198 million
Benefit: 24,000 AF of storage
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7. Project: Olivenhain Pump Station
Olivenhain Pump Station
Completed: 2005 Completed: 2004
Cost: $45 million
Benefit: 24,000 AF of storage

8.  Pipeline
 Pump Station
 Transmission Line
 Hydroelectric Power generation
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9. 9

10. Project: Lake Hodges Pump Station and Pumped
Storage Projects
Completed: 2012
Cost: $181 million
Benefits: 20,000 AF ESP storage; 40MW power 10

11.  120 feet deep
 Equivalent to a 10
story building
underground
 Helps to capture
runoff
 Pumps up 770 feet
to Olivenhain
Reservoir

12.  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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14. Project: San Vicente Pipeline, Pump Station &
Surge Tank
Completed: 2011
Cost: $459 million
Benefit: Improved Water Delivery
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16. Project: San Vicente Dam Raise
Complete: 2013
Cost: $449.5 million
Benefit: Increase reservoir
capacity by 152,000 acre-feet 16
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17. Rendering of Dam Raised by 117 Feet
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18. 18

20. San Vicente Reservoir After Fill
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21. Marina RCC Batch Plant
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22. RCC Conveyor System
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23. Dam Raise RCC Placement
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24. San Vicente Marina Facilities
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25. Enhancing Regional
Water Supply Reliability
TOTAL- 196,000 AF
(90K Emergency + 100K
Carryover + 6K Operational)
SAN VICENTE
152,000 AF
2013
HODGES
20,000 AF 2010
OLIVENHAIN
24,000 AF
2004
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26.  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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27. San Diego County Water Authority

28.  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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29.  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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30.  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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31. < 2003 2003>
MWD
System
Costs
New Rate Structure Misallocates Water Supply
Uniform Costs to Transportation Charge
Water Water
Rate Supply
Costs
Water System Power Water
MWD Must
Supply Access Rate Stewardship
Disaggregate
Rate Rate Rate
Its Costs
Charged for Transportation
Water Supply Costs
MWD System Costs
Charged for Purchase of MWD Water
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32. Water Supply Costs
MWD System Costs
Water System Power
Supply Access Rate
Rate Rate
Charged for Transportation
Charged for Purchase of MWD Water
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33.  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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34.  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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35. Visit our website: SDCWA.org
sdcwa.org/mobile-news-app
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