by George J. Janczyn / Groksurf’s San Diego /June 14, 2011 [updated June 15]
As predicted here one year ago (“San Diego County Water Authority water pricing lawsuit could jeopardize funding for Carlsbad Desalination Plant“), the Metropolitan Water District of Southern California (MWD) has moved to terminate an agreement that would have paid a subsidy of $250 per acre foot (potentially $14M annually) to Posiedon and the San Diego County Water Authority (SDCWA) for water produced at the Carlsbad Desalination Plant.
According to the SDCWA news release, “The MWD board also instructed its staff to refuse to consider any pending or future local supply development projects in San Diego County. The pending agreements included the Carlsbad Seawater Desalination Project, which would have been eligible for up to $14 million in annual payments.”
SDCWA said MWD’s action was retaliation for its lawsuit filed last year challenging MWD’s water rates.
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JEC – really expecting you to get on this.
It could be retaliation – MWD has done it before. It could also be this year’s healthy water supply and snow pack that will carry at least two years. But MWD did what Marco Gonzalez and CoastKeeper have not – challenge the economics of a for profit operations such as Poseidon’s. Desalination is in our future – but relying on water from a private business out to make money is risky – just explore the history of water in the west. Also the size of the operation – 50 million gallons a day – were needed to reach profitable economics.
How is Poseidon like the NFL? Both rely on public subsidies to make a profit. Thank you (for once) MWD.