San Diegans find themselves with a substantial $35 million bill owed to a privately-owned desalination plant, related to water that, due to unforeseen circumstances, could not be produced by the facility.
This financial obligation arises amid rising concerns about escalating water prices in the region, as the San Diego County Water Authority deliberates on whether such water is even necessary moving forward.
Recent disclosures from the Water Authority indicated that a total of 10,105 acre-feet of water, which the agency is required to purchase from Channelside—owner of the Carlsbad desalination plant—awaits acquisition.
With each acre-foot equating to a year’s worth of water for two households, the cost of this unproduced water is projected to rise by approximately 2.5 percent as stipulated in their contract.
Under their existing agreement, the Water Authority is obligated to buy 48,000 acre-feet of water each year from the plant until 2045.
Moreover, if Channelside is unable to produce the stipulated water due to circumstances beyond its control—such as new regulations necessitating facility upgrades or power outages—the Water Authority must still purchase that water.
At a staggering rate of $3,500 for each acre-foot, this desalinated ocean water stands as the costliest water source available in the region, drawing criticism as residents grapple with increasing water expenses.
Jeremy Crutchfield, a water resources manager at the Water Authority, highlighted to governing board members during a recent audit committee meeting that much of the accrued unmade water resulted from construction demands on the plant’s ocean water intake system.
The plant temporarily halted operations due to new state mandates requiring upgrades aimed at protecting marine life.
Further complicating matters, 2023 and 2025 saw unexpected power outages and other repairs during the plant’s initial decade of operation, contributing to the financial burden.
During the meeting, staff members suggested that now may be an opportune time for the Water Authority to settle the outstanding payment; however, no definitive decisions were made as actions require approval from the full governing board.
“At some point, we’re on the hook to pay for that water,” cautioned Crutchfield.
Board member Steve Castaneda, representing South Bay Water, raised questions about the very necessity of the desalination plant itself.
“I have not heard anything about this plant that leads me to believe it’s needed or that it’s a great deal for ratepayers,” he commented.
This isn’t the first instance of the agency facing a hefty desal water bill.
The Water Authority was previously compelled to pay Channelside an additional $54 million for desalinated water that could not be stored during a particularly wet period in 2023 and 2024, confirmed spokesperson Mike Lee.
Struggling to justify its long-term contracts, the Water Authority faces ongoing pressure from its largest customers to identify ways to reduce water costs for San Diegans.
Increasing water rates have drawn sharp criticism, prompting regional boundary referees to scrutinize the necessity of the Water Authority itself.
In contrast to Castaneda’s doubts, committee member Lindsey Leahy, who is set to become general manager at Valley Center Municipal Water District, defended the plant’s relevance.
She stated, “The plant has a purpose in regards to local supply and reliability.
I don’t want to dismiss the value of an asset while it is expensive and we’re not using it as originally planned.”
image source from：voiceofsandiego
