Cal Am Desal project leaves Rate-payers
unprotected
As
a Marina Planning Commissioner in attendance to a presentation of Cal-Am's
Environmental Impact Report, I was informed that any mention of actual project "costs"
could not be included as comments/criticisms of this project. Basic logic, however, indicates the cost of a
project involving public funds or rate payer fees is just as important as any
environmental issue.
The
California Public Utilities Commission (CPUC), as well as Cal-Am, were fully
aware - long before this EIR was started - that costs of this Slant Well
project were excessive compared to other similar projects in the area (not to
mention the potential for litigation over riparian rights to the water). In 2011 the Ratepayer Advocates (a subsidiary
of the CPUC) had estimated the cost of this Slant Well technique at between
$7,000 and $7,900 per acre foot.
Other Comparable Projects.
Prior
to 2012, Poseidon Resources LLC entered into a contract to provide desal water
to the San Diego County Water Authority.
Poseidon would assume all costs and provide water at a cost between
$2,042 to $2,290 per acre foot. At the
end of 30 years they would deed over the plant to San Diego Water Authority for
$1.00.
Similar
projects, the Deep Water Desal facility and the People's Desal Project located
in Moss Landing, share features similar to the Poseidon project. They are
located near an existing power plant and utilize existing water intake and
outfall pipe lines which allow them to offer water at a $2,000 plus-or-minus
per acre foot.
The
Deep Water DeSal facility claims they will be in production by the fourth
quarter of 2017; whereas, the Cal Am project might get operational sometime in 2019.
THE Cal-Am deadline.
Not
only are there questions concerning fair and reasonable costs to be passed on
to Cal-Am's customer base, BUT, Cal-Am is faced with a December 2015 deadline
to reduce pumping of Carmel River basin.
If Cal Am fails to solve its water problems, is it barred from passing on the
related State fines to its customer base?
What is the role of the CPUC in this drama?
A Public Utility, like California-American Water Co (Cal-Am),
is a legal monopoly created, supposedly, for the public benefit. California, in an effort to restrict a public
utility from excessive fees, rate increases or other potential abuses to their
customer base, created the CPUC as an advocate for the rate payer.
I
have to ask: "Since the CPUC is the "Lead Agent" for this EIR, Who
remains to speak for the rate payer here? "
Considering
Cal-Am's Slant Well project will be two to three times more expensive than
alternative competing projects which offer the same product at a much cheaper
price, one has to question why ratepayer costs are excluded from this EIR
study!
At
the very least, the CPUC could have established a maximum ratepayer cost
of, let's say, $2,100 per acre foot. Any
cost above and beyond this rate would have to be Cal Am's responsibility; this
would offer some protection for the ratepayer.
The
problem is the CPUC has already approved rate increases to cover related
expenses to this project on a piece-meal basis, so determining a fair remaining
balance will be lost in the shuffle leaving the rate-payer unprotected.