www.nctimes.com/business/article_2ace7087-58cd-5462-a622-53e5ea3cb893.html

The North County Times - Californian

Conservation, technology sought to counter rising tab
This article has been modified since its original posting

By BRADLEY J. FIKES - bfikes@nctimes.com

Posted: Thursday, July 29, 2010 7:55 pm

Under the lash of rising costs ---- which consumers will ultimately pay ---- some of the biggest names in the state's electricity and water industries met Thursday at the Los Angeles headquarters of the Metropolitan Water District, Southern California's main water wholesaler, to share information about conservation and technology.

They were brought together by the Water Research Foundation, which helps local water utilities get a handle on issues such as climate change that would be hard to study separately. Those presenting included Southern California Edison, the Los Angeles Department of Water and Power, and Metropolitan.

"Water's a major consumer of energy; the energy programs out there would help reduce the amount of energy associated with water treatment and water delivery," said Robert C. Renner, executive director of the Denver-based foundation. "So we're trying to get everyone together, find out what those technologies are, so we can lower the cost and use less energy."

The energy needs of water agencies are increasing as they tap alternative sources of water, such as desalination, Renner said. Meanwhile, power companies are trying to curb demand to meet strict state standards for reducing greenhouse gas emissions.

And both sectors are projecting continually increasing costs, which will take an ever-growing bite out of customers' pocketbooks.

California's water-related electricity consumption was 56.5 gigawatt-hours in 2006, 19 percent of the total 294.8 gigawatt-hours used in the state, said James B. McDaniel, chief operating officer for the Los Angeles Department of Water and Power. A gigawatt-hour is 1,000 kilowatt-hours. A typical California home uses about 6,500 kilowatt-hours a year, according to the state.

However, 73 percent of those 56.5 gigawatt-hours was consumed by end-users, McDaniel said. That presents opportunities for energy savings, especially at peak hours, such as during a heat wave. While residents would strenuously object to having their air conditioning turned off, McDaniel said they'd probably accept a voluntary program that turns off pool pumps.

The San Diego County Water Authority, which did not give a presentation at the workshop, is nearing completion of storage and hydroelectric projects at Lake Hodges that will benefit both it and San Diego Gas & Electric Co.

The Lake Hodges Projects, as they are called, will connect Hodges Reservoir, owned by the city of San Diego, with Olivenhain Reservoir, owned by the Water Authority. The linkage through a pipeline will make water from Lake Hodges available throughout the region, improving the county's emergency storage.

SDG&E will benefit because the projects include generators that can produce 40 megawatts of hydroelectric power, said Cheryll Stewart, the authority's special projects manager. During slack demand, the water can be pumped up to Olivenhain Reservoir. At peak times, the authority will let the water flow down to power the generators, giving the local electrical supply a boost.

Along with the increased storage, the authority will benefit financially.

"We will be paid about $2.8 million a year (from SDG&E)," Stewart said. "In addition to that, we will be able to purchase power with a banking arrangement from SDG&E."

The banking arrangement gives the Water Authority credit from SDG&E for generating power, Stewart said. The authority can draw upon that credit later on favorable terms, saving the authority an additional $2.5 million to $3 million a year.

Construction of the Lake Hodges Projects is scheduled to be finished late this year.

Call staff writer Bradley J. Fikes at 760-739-6641. Read his blogs at bizblogs.nctimes.com.

Correction: This article has been corrected to reflect that the executive director of the Water Research Foundation is Robert C. Renner, not Roger C. Renner.