CPUC Approves Peninsula Water Project
The California Public Utilities Commission approved Thursday a request from the California American Water Company to form a new water desalination plant for the Monterey Peninsula.
The desalination project, called the Regional Project, has been in the works since 2004 and is expected to produce 10 million gallons of water per day.
“With our decision today we are meeting the critical water needs of the Monterey area, while protecting the environment and controlling ratepayer costs. I am proud this inclusive and historically elusive goal has been met,” CPUC Commissioner Nancy E. Ryan said.
The additional source water is needed to make up for water currently taken from the Carmel River, which must stop by Dec. 31, 2016, based on an order by the California Water Resources Control Board.
“Today’s decision balances the need for adequate water with the need to provide water at a reasonable price,” said CPUC Commissioner John A. Bohn.
The Marina Coast Water District will own, construct, operate and maintain the desalination plant and the product, while Cal-Am will own, construct, operate and maintain the pipeline, conveyance and pumping facilities necessary to deliver the water to its customers.
Bohn also said the desalination plant was the only feasible project that could be completed within the time limit imposed by the State Water Resources Control Board.
The CPUC adopted a $297.5 million capital cost cap for the Regional Project facilities. A capital cost cap of $106.875 million was set for the Cal-Am-only facilities.
Cost recovery from Cal-Am ratepayers above the cost caps would only be allowed if there are exceptional circumstances that pass a review.
Although the California Coastal Commission must approve the plan, Cal-Am officials said they are proceeding on schedule with construction planning.
The plant is scheduled to be operational by 2015.
Story posted 2010.12.02 at 02:30 PM PST
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