Press release from the San Bernardino Valley Municipal Water District:
The San Bernardino Valley Municipal Water District (San Bernardino Valley), a prominent regional water resource management agency and sustainability figure in the Santa Ana River watershed, has recently entered into an Asset Purchase Agreement with Southern California Edison (SCE) to acquire 7 hydroelectric plants from SCE. The Asset Purchase Agreement is the first of many steps needing to take place before the official transfer can be completed, including the transfer of certain licenses issued by the Federal Energy Regulatory Commission (FERC) from SCE to San Bernardino Valley, and the approval of the transactions contemplated by the Asset Purchase Agreement by the California Public Utilities Commission (CPUC). This move marks a significant milestone in the organization’s commitment to enhancing effective water management practices and regional sustainability.
“This agreement between SCE and San Bernardino Valley demonstrates the importance of protecting reliable water supplies and energy resources for our community,” said Paul Kielhold, San Bernardino Valley Board President.
SCE would pay San Bernardino Valley $34.173 million at the close of the transaction. The sale is conditioned upon regulatory approvals from the CPUC and FERC, as described above. San Bernardino Valley plans to continue operating these facilities as hydroelectric plants.
Pending regulatory approvals, San Bernardino Valley, will own and operate two facilities along the Santa Ana River, two in Mill Creek and three in San Antonio Creek. These hydroelectric plants are designed to maximize efficiency, while also preserving local ecosystems, by transforming the natural force of water into electricity to benefit California’s energy grid. Continuing the operation of these facilities is essential for ensuring reliable surface water deliveries in the region as well as supporting a sustainable water supply for future generations.
In addition to transferring ownership of the hydroelectric plants to San Bernardino Valley, SCE has agreed to fund and complete certain interconnection facilities upgrades to the plants to enable independent and reliable operation by San Bernardino Valley. In turn, San Bernardino Valley is committed to maintaining the facilities for reliable water deliveries, preserving critical endangered species habitat, and offsetting energy costs for water partners.
Looking into the future, San Bernardino Valley is working collaboratively with a group of local water agencies, including Bear Valley Mutual Water Company, Crafton Water Company, and the San Bernardino Valley Water Conservation District to develop a long-term strategy that will ensure this acquisition provides the most benefit possible to the region through stewardship of the water, environmental, and energy resources.
“The region has benefited from these facilities for over 100 years. They are an important piece of the geographic and cultural history of the Santa Ana River watershed. With SCE’s support, we’re strengthening our capacity to manage local water supplies for maximum benefit to the people we serve while protecting other land and habitat values. This is a significant win for our community and the environment.” said Heather Dyer, CEO/General Manager at San Bernardino Valley. “We are not only working towards a resilient water supply, but an integrated and comprehensive approach to maintaining a healthy watershed for decades to come.”
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About San Bernardino Valley
San Bernardino Valley is a regional water agency with a service area that covers around 353 square miles in southwestern San Bernardino County and a population of approximately 714,000. With a dedicated team of experts and partnerships across the region, San Bernardino Valley is committed to building a resilient and sustainable water future for the community. Learn more at www.sbvmwd.com.
