January 2005

Water Shortage Expected in 2010

Water supply shortages will curtail economic growth in El Dorado County beginning as early as 2010, according to a report presented at yesterday's regular meeting of the El Dorado Water & Power Authority.

The report, presented by Mead & Hunt, an architecture and engineering firm that also offers cultural resource management services, focuses on the socioeconomic impact of the loss to the county of the water resources used by the Upper American River Project.

"It's an opportunity to really reassess water resource allocation," said Linda Mitchell, a water resources economist with Mead & Hunt.

Owned and operated by the Sacramento Municipal Utility District, UARP includes a series of hydroelectric facilities in El Dorado County.

The project's original 50-year operating license will expire in July 2007 and SMUD is currently in the process of applying for a new license with the Federal Energy Regulatory Commission.

Mead & Hunt's prediction of a possible water shortage beginning in 2010 was based on water supply and demand projections from information contained in the 2004 El Dorado County General Plan and the El Dorado County Water Agency's Water Resources Development and Management Plan.

The final report addresses expected changes in the county's economic activity as a result of a potential water shortage.

"We particularly focused on employment and the labor force," Mitchell said.

The report suggests that approximately 60 new jobs would be forgone in 2010 and approximately 15,000 jobs would be forgone by 2045.

"It is incumbent on the FERC to require SMUD to evaluate potential ways the UARP could be utilized to mitigate such impacts as a condition of any new license granted for the continued operation of the UARP," states an executive summary of Mead & Hunt's report.

Representatives from Mead & Hunt discussed a variety of preliminary alternatives to increase water supply or make existing water available for municipal use.

The most economically advantageous alternative, they said, is that of UARP facilities. It would permit the county to divert up to 30,000 acre-feet per year from either the Folsom Reservoir or the White Rock Penstock, which is part of the UARP.

Under this alternative, the county would be required to provide monetary compensation to SMUD for loss of generation due to water diversion, and to construct conveyance structures costing more than $30 million.

The county and SMUD are currently in the process of negotiating the specific terms for the development of this alternative, which could alleviate future water supply shortages. It is not yet known if the county and SMUD will come to an agreement on the issue.

Reprinted from the January 25, 2005 issue of the Mountain Democrat. Story by Sonia Sorich, Staff writer