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Surplus Water Sales to Boost Revenues for Nevada Irrigation District

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By: Susan Snider, YubaNet

GRASS VALLEY, April 4, 2008 - As most Californians know, water is shaping up to be one of the biggest, most lucrative businesses in the Golden State.

And long-standing water sale agreements between agencies like Nevada Irrigation District and South Sutter Water District are becoming even more valuable as California edges closer toward a probable north-south water crisis.

Last week, NID's board of directors approved the sale of surplus water to South Sutter Water District. NID purchases this water from PG&E.

Early each year, PG&E notifies NID of surplus raw water available for irrigation needs. This allows the water district to sell water to customers like South Sutter Water District who are typically outside NID's external district boundaries.

NID normally expects a commitment of 20,000 acre feet of surplus water from PG&E. This year the hydroelectric utility guaranteed 15,000 acre feet with plans to notify NID at a later date as to the status of remaining available supplies.

According to Water Operations Manager Don Wight, NID buys the first 11,000 acre feet of water from PG&E at $1.25 per acre foot and the remaining allotment at $15 per acre foot.

Under a set rate, NID charges South Sutter Water District $24.10 per acre foot for all water supplied to the out-of-district water customer.

Historically, NID has sold all or most of its surplus water purchases from PG&E to South Sutter Water District.

The contract between NID and South Sutter expires in 2013.

As Videotaping Goes, So Does Transparency?

For the second year in a row, a request that NID fund videotaping of its board meetings has failed at the committee level.

It also appears that NID's customers and district taxpayers would not have been informed about this had it not been for Division 1 Director Nancy Weber's questions at the water district's recent board meeting.

Up to now, videotape funding has been made by private individuals and local neighborhood groups in an effort to provide viewing alternatives for citizens unable to attend the 9 a.m. weekday meetings. Copies of these tapes have also been made available at the county library.

The cost of taping varies between $100-$200 each meeting. NID's board meets twice a month.

Nevada City and Grass Valley both fund the videotaping of their city council and planning commission meetings. Nevada County funds the taping of their BOS and planning commission meetings, as well.

"What happened with videotaping for NCTV?" queried director Weber. NCTV Channel 17 is Nevada County's local Comcast station which has been broadcasting NID's board meetings.

Board President George Leipzig replied that he and director John Drew turned down the videotaping request in committee.

Leipzig declined to offer reasons for the decision, but added that there will be further discussion with staff and ultimately the topic will be presented to the board as an agenda item.

Earlier in the meeting, Grass Valley resident Marc Matthias addressed the board on this topic during the public comment period.

"I'm happy to see that your deliberations are being televised today," Matthias observed. "I urge you to pay for videotaping for all proceedings of board meetings to stay ahead of the curve."

Director Leipzig later indicated that taping is only one of the options and that it would be premature to come back to the board with any discussion within a month.

At this point, private funds for videotaping have been exhausted.

High Marks on 2007 Financial Statements, Questionable Direction in 2008

In spite of a glowing assessment, NID's audit forecasts a future indicative of an increasingly darker economy.

Ralph Marcello of Nicholson and Olson reported that the water district's audit is "without material mistakes." "This is the highest opinion a company can give a business," Marcello said.

Nevertheless, he noted that NID's finances are "definitely headed the wrong way." With total operating expenses up at the same time revenues were down, NID experienced a 3.7 million dollar loss in 2007.

"Your saving grace were taxes and assessments in 2007," said Marcello. "You also had developer contributions which are tied to construction."

With a crushing downturn in home sales and construction-related activity, NID can't bank on a substantial increase of tax revenues for 2008.

FERC Update

In an update on NID's Federal Energy Regulatory Commission (FERC) relicensing process, Jim Lynch of Devine Tarbell & Associates informed board members that formal filing would be made sometime by the end of March.

NID has hydroelectric operations within its district that are regulated under FERC and require relicensing, typically at 50-year intervals.

Director Weber requested that the board be presented with periodic updates on the process since many board members are unable to make all the FERC meetings.

Meetings to establish proposal groups and workshops for the public and interested stakeholder groups have already begun as a part of the relicensing process for NID and PG&E as collaborative partners.

NID General Manager Ron Nelson assured the board that they would be apprised of significant milestones.

Director Scott Miller questioned whether NID will be incurring additional cost by keeping the board informed.

"It is what I built into the process, to keep you informed and involved in the process," Nelson responded. "There is no additional cost, I am managing strategically to keep you [the board] engaged."

Why Doesn't NID Concern Itself With Groundwater Issues?

NID claims it isn't in the business of talking about groundwater, according to Director John Drew. But several people present at a recent town hall meeting on Nevada County water issues seemed to dispute this statement.

In other words, when wells go dry, who will be there to provide water to residents and farmers?

Director Nancy Weber reported to the board that over 135 people including local media attended the public forum. "If people don't have groundwater, they need to go to NID and we should not be omnipotent,"said Weber.

Weber indicated following last week's board meeting that additional town hall meetings will be scheduled to continue the dialogue about Nevada County residents' water concerns.

"This first forum barely touched on issues like access and water rights, how water is managed and protected, and future state demands on Sierra water resources," Weber noted. "There still needs to be serious discussion on topics like groundwater, conservation, and a potential county-wide water plan."

Individuals interested in future town hall meetings can contact Director Weber at (530) 265-0424.

Public Notice: Upcoming Meeting on NID's Raw Water Master Plan, Phase II

The public is encouraged to attend a meeting on April 16, 6:30 p.m. at NID's Grass Valley headquarters. The first in a series of meetings, NID staff will introduce the project and its goals and discuss the methodology used to gather data that will be incorporated into studies for the plan.

The next regular NID board meeting will be held at 9 a.m. on April 9 at the NID Business Center in Grass Valley. NID board meetings are open to the public.

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Comments

John Warnke
09 Oct 2008, 17:12
WOULD YOU SUPPORT

A Solution to America’s Regional Water Shortages
from
Southern California to Georgia and All In Between
?

Although this proposed project depends upon only one candidate’s plan to put great emphasis on building new nuclear power plants for both economic and environmental reasons, the shortage of adequate and reliable supplies of fresh water is a universal problem which cuts across all social, economic and political lines. With that in mind, it is recommended and requested that your support for this plan be communicated ASAP as outlined at the end of this material.

The Transcontinental Water Supply System
Plan Overview:

Senator John McCain has been given this national infrastructure plan for a transcontinental fresh water distribution system that would eliminate critical fresh water shortages in America. The plan will also provide water where it is not currently available in adequate quantity across the arid Southwest. This plan “dove-tails” exceptionally well with his already-announced plan for as many as 45 new nuclear power plants. Additional opportunities for locating some of the nuclear power plants in water-starved areas are greatly improved by incorporating this Transcontinental Water System into a synergistically-complimenting integrated plan which includes several of those nuclear plants.

A primary reason why this plan may not have yet been reveled could most likely be attributed to the fact that Senator McCain is so focused on “staying on message” in his campaign. Disclosing this plan would bring questions about its details which would detract from the primary elements of his campaign.

Consequently, this plan is presented here for your consideration. This new American “asset” would dramatically improve the United States’ infrastructure and would solve the fresh water shortage problems from California to Georgia.

Because of the critical need for agricultural irrigation and clean fresh water for human consumption, the importance of this Transcontinental Water System can not be over emphasized.

The enormity of this project’s scope of work would comprise approximately 20% of the 100,000 jobs projected for Senator McCain’s 45 nuclear power plant program over the next twenty years. The civil and hydraulic systems of the Transcontinental Water System portion of this integrated system will account for many thousands of additional jobs representing a substantial addition to the senator’s stated goal to create new domestic jobs and boost the economy.

The time has come to support and build this Transcontinental Water System project because the critical water shortage in Southern California is threatening agricultural production of our food supply while it competes with the demands for water by our increasing population centers in the Southwest. Two major bonus’s of an integrated Water and Nuclear Power project is that it makes it possible to locate new nuclear power plants anywhere along or near to the routing of the pipes in otherwise arid locations. And, all the many thousands of additional new jobs created for design, construction, and operation of the Transcontinental Water Supply System will remain inside the United States.

In Summary: This plan is a “Win, Win, Win” opportunity for America.

If you agree with the merits of this proposed solution to America’s fresh water shortages problem and you would like to voice your support of this monumental water project, you are invited and encouraged to IMMEDIATELY pass on this document to as many others as you can. Please, be sure to include sending this material to your newspapers, TV stations, and congressional leaders in addition to your email contacts.


The Plan’s Conceptual Physical and Functional Details:


By pumping water both east and west from the Mississippi River somewhere near Memphis, Tennessee an enormous improvement in our country’s fresh water supply condition could be provided. Plus, having the water within the system, there is great flexibility in where the future nuclear power plants can be located.

Most importantly, several operating efficiencies would be realized with a planned integration of nuclear power and the water transfer system when they are developed as a coordinated and integrated system.

In addition to transferring water to Southern California and to Georgia, clean fresh water could be supplied from each of the power plants and reservoir locations and in between. Domestic-grade water could be economically processed by at least two of these proven processes:
1) The distillation process could utilize the waste heat from the power plants making it very cost effective. And, therefore, it also has the potential of eliminating the need for the “signature” cooling towers characteristic of conventional nuclear plants.
2) The second system – reverse osmosis – operates on electric power that could be supplied by the systems power and its raw water. The added advantage of reverse osmosis systems (RO) over the distillation process is that it can be located remotely and fed by unconditioned raw water for agricultural use and only the amount required for domestic use would be “split off” for being processed by the “RO” system thereby saving energy and maintenance costs.
The economic advantage of using already “fresh” water from the interior of the country for both agriculture irrigation and for human consumption will be realized by significantly reducing the construction and operating costs of sea water desalinization facilities on either coast. This plan would avoid the placement of new desalinization plants along the sea shore coast lines where prime property and environmental considerations make them undesirable This system brings the water from the interior of the country to the existing water distribution channels,

A number of nuclear power plants and their associated water reservoirs could be located near the system’s pipe line’s routing wherever appropriate. Because the power plants could be cooled by the water being pumped through the system, the water in the system’s reservoirs may allow the elimination of many of the enormous “signature” cooling towers that function by wastefully consuming evaporating cooling water. With this plan’s concept, the heat from the plants could (or, at least significantly) be dissipated through ambient cooling provided by the reservoirs and distribution pipe - if not through water distillation systems.

The overwhelmingly greatest economic advantage of the concept of integrating nuclear power with the water system is realized by virtue of the power plants providing power to two “customers”. The primary daytime user would be all the commercial customers connected to the national power distribution grid. And, the other user / customer would be the proposed Transcontinental Water System. The primary advantage of the Transcontinental Water System is that it can draw its power during “off-peak” and night times to whatever level is available to it at any given time. The flexibility of the Water System exists due to the “buffer” or volumetric “surge” capacity of the reservoirs’ non-critical pumping schedules.

Nuclear Power with The Water System makes a perfect “marriage”.

Additionally, some of the nuclear-generated energy consumed in elevating the pumped water as it travels westerly can be recouped by new hydro-electric turbines as the water drops from the higher elevation just east of Lake Mead as it descends into it. And, then, additional power can be recouped from the new system’s water flow as it exits Lake Mead through generators in Boulder Dam.

It is envisioned that two or more large-diameter pressurized steel pipes be provided for redundancy and for maintenance requirements. The routing of the systems primary pipes is proposed to generally “shadow” Interstate I-40.

It is envisioned that the two terminus of the system would be Jordon Lake near Durham, NC and Lake Mead, NV. (not Lake Powell because that flow would have to go through the Grand Canyon. and, there is the controversy concerning the Glen Canyon Dam, itself.) (If this system is built, the rationale to maintain the Glen Canyon Dam at Lake Powell may thereby be eliminated.) And, of course, water could be “tapped off” to other destinations from along the main lines wherever required for regional consumption along the way, as mentioned above.

Further, it is also envisioned that very large pairs of reservoirs be located between or near the plants and pumping stations for ambient cooling and the buffering of volumetric water “surges” between pumping stations. The reservoirs would allow independent pumping scheduling and “inventorying” of fresh water between periods of surplus supply and periods of higher demand. Reservoirs will provide both the required cooling and water clarification / settlement functions. Plus, the reservoirs’ aggregate capacities should total well over a year’s throughput volume. And, the reservoirs could provide significant civic recreation and development opportunities. (Pairs of reservoirs would allow for alternate usage during periods of sludge disposal if required.)


Summary

Current and recent critical shortages of fresh water in Southern California and Georgia show that America’s traditional natural fresh water sources and delivery systems have reached their limits for providing a sufficient and reliable supply for both human and agricultural uses.

In the absence of technology for inexpensively converting large amounts of sea water to fresh water, immediate and drastic measures are required to prevent even greater and greater costs and competition for diminishing fresh water – a problem which is exacerbated by climate changes that are impacting snowfall and rainfall patterns causing flooding and droughts across the country.

With the currently proposed McCain plan for accelerating and expanding a conversion to nuclear power, now is exactly the point in time for our best opportunity to address this critical problem. The solution can be achieved by optimizing an integrated solution to generating cleaner nuclear power that diminishes our use of fossil fuels while providing the critically required supply of fresh water to wherever it is needed across the southern portions of the United States.

America critically needs the capability to redistribute fresh water from where and when it is found in excess to where it is required for the general benefit of the country’s food supply and growing population concentrations. The importance of building the Transcontinental Water Supply / Redistribution System will surely rank in importance with the major flood control and hydroelectric power projects of the past.


A Call to Action

If you agree that this proposed Transcontinental Water System is required, and REQUIRED NOW, it is imperative to show your support IMMEDIATELY by:

Sending this material to your email contacts, to your local newspapers and TV news offices and to your State and Federal Congressmen.

Your support is critical from now to the presidential election November 4th


John Warnke, San Diego County, CA
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