California Water District Approves Landmark Water Purchase Agreement with Poseidon

California’s Valley Center Municipal Water District and Poseidon Resources Corp. announced the district’s approval of a landmark water purchase agreement. Under the agreement, Poseidon will provide Valley Center with 7,500 ac-ft per year of water from its Carlsbad desalination plant.
Poseidon is building a 50 mgd (56,000 ac-ft annually) desalination plant at the site of the Encina Power Station in Carlsbad. Earlier this month, Poseidon announced the Final Environmental Impact Report (FEIR) for the Carlsbad desalination plant had been published by the City of Carlsbad. The proposed $270 million desalination project is scheduled to be completed by 2008.
The Valley Center Municipal Water District is the largest agricultural water district in the county. The district’s board of directors unanimously approved the Water Purchase Agreement at its regularly scheduled Monday meeting.
“Seawater desalination is an important part of the solution to the region’s long-term water reliability needs,” said Valley Center Water District president and San Diego County Water Authority board member Gary Broomell.
“The Valley Center Water District is now ensured a locally-controlled, drought-proof supply of water,” said Poseidon senior vice president Peter MacLaggan. “The water purchase agreement guarantees Valley Center will receive a reliable supply of water at a cost never to exceed the price of water it would otherwise purchase from the San Diego County Water Authority,” said MacLaggan.
The Valley Center Water District is the second San Diego County Water Authority member to reach a water purchase agreement with Poseidon Resources. In September 2004, the City of Carlsbad approved its own water purchase agreement with Poseidon, providing the city with 21,000 ac-ft per year of high-quality drinking water from the plant. To date, over one-half of the desalination plant’s annual capacity of 56,000 ac-ft has been committed through water purchase agreements.

Poseidon Resources Corp.

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