The Metropolitan Water District of Southern California (MWD) has voted to approve the Seawater Desalination Program that will provide nine local water agencies with a $250 per-acre-foot incentive to help offset the cost of water produced from the Carlsbad desalination plant.

The subsidies, which are expected to cost MWD $350 million over the 25-year contract, will help make water provided by the desalination plant no more expensive than water currently supplied by MWD.

“We greatly appreciate the support that Metropolitan Water District has demonstrated on behalf of desalination. With the ongoing drought, legal and environmental challenges, and State Water Project infrastructure challenges, the Seawater Desalination Program is a smart investment in California’s water stability both now and for the future,” said Valley Center Municipal Water District General Manager Gary Arant.

Poseidon Resources of Stamford, Conn. is building the desalination plant located next to the Encina Power Station. The plant is expected to be completed in 2012. At completion, the plant will produce 50 million gallons of drinking water per day. An acre-foot is approximately 326,000 gallons.

MWD entered into an agreement in 2005 with the San Diego County Water Authority to provide $14 million annually in subsidies for the use of desalinated water. Recent reports indicated that MWD had concerns over the subsidies and were not ready to fully commit to them. MWD’s decision clears the way for Poseidon to secure financing for the $300 million project.

                                            

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