Water Purchase Agreement
In December 2012, Poseidon Water finalized a 30-year water agreement with the San Diego County Water Authority for the purchase of 50 million gallons per day of desalinated seawater and secured financing for the Claude “Bud” Lewis Carlsbad Desalination Plant.
The water purchase agreement (WPA) between Poseidon and the San Diego County Water Authority is a 30-year take-if-delivered contract. The WPA commits the Water Authority to purchase a minimum 48,000 acre-feet per year of product water and provides the option to demand a maximum 56,000 AF/year.
The terms of the WPA allow the Water Authority to purchase the desalinated water at a fixed rate for the next 30 years, providing significant protection for consumers. It is estimated that the cost of imported water will continue to rise over time, meaning that desalinated water will soon be less expensive than the water we import from Northern California and the Colorado River.
For more information on the Water Purchase Agreement, please visit the San Diego County Water Authority.