RMWD announces Water Purchase Agreement

FALLBROOK — Rainbow Municipal Water District (RMWD) recently announced that its board of directors unanimously approved a Water Purchase Agreement with Poseidon Resources Corporation. Under the agreement, Poseidon will provide the district with 7,500 acre-feet per year of water from its Carlsbad desalination plant, representing 23 percent of the district’s total annual need of 32,000 acre-feet per year (AFY).

Poseidon is building a 50-million-gallon-per-day (56,000 acre-feet annually) desalination plant at the site of the Encina Power Station in Carlsbad. The proposed $300 million project is scheduled to be completed as early as 2010.

Rainbow provides water and sanitation services to the unincorporated communities of Rainbow, Bonsall and a portion of Fallbrook. Because the surrounding area has many agricultural uses that are coping with some of the highest agricultural water rates in the nation, water usage in the area is extremely efficient and conservation is a way of life. San Diego County is the 12th largest farm economy among all counties in the nation and the local agriculture industry ranks as the fifth largest industry in the county, contributing more than $1.4 billion to the local economy and sustaining more than 6,000 farmers.

“Water is a precious and scarce resource. The only way for agriculture to continue to be viable in San Diego County is to take steps now to ensure its availability and affordability,” said Gene Buckley, RMWD Interim General Manager and Finance Manager. “This Water Purchase Agreement will provide the communities we serve with a reliable local supply of water at a guaranteed price. The board’s decision will provide a hedge for our customers against drought conditions and the anticipated water shortages and cost increases. The 7,500 AFY of water represents over 80 percent of our residential usage.”

Rainbow Municipal Water District is the fifth San Diego county public water agency – following Carlsbad, Valley Center, Rincon del Diablo and Sweetwater – to approve long-term water purchase agreements with Poseidon Resources, totaling 43,400 acre-feet per year. With the addition of Rainbow, the Carlsbad desalination project’s 50 MGD capacity is 80 percent subscribed through long-term water purchase agreements with local public water agencies.