CALIFORNIA WATER FIX: Metropolitan’s third white paper on Cal Water Fix finance and cost allocation
The third in a series of policy papers prepared for the consideration of Metropolitan’s Board of Directors in advance of planned summer meetings and decisions in fall 2017.
From the Metropolitan Water District:
Modernizing and improving California’s water system is essential for the reliable delivery of water supplies to much of the state. About 30 percent of the water that flows out of taps in Southern California homes and businesses comes from Northern California watersheds and flows through the Sacramento-San Joaquin Delta. But the Delta’s declining ecosystem and 1,100 miles of levees are increasingly vulnerable to earthquakes, flooding, saltwater intrusion, climate change and further environmental degradation.
California WaterFix is the product of more than a decade of review, planning, rigorous scientific and environmental analysis and unprecedented public comment. This white paper provides information about the costs of the project, including adjustments of capital, mitigation and O&M costs to 2017 dollars. The financing plan is presented with financial assumptions and a range of financing scenarios. The cost allocation information covers Metropolitan’s anticipated financial commitment, an estimate of member agency wholesale rate impacts, and metrics to assess retail level impacts. Using this information and when compared to costs for other local supply alternatives, California WaterFix would provide a cost-effective supply for Southern California’s water portfolio.
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