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CAP - Future Value of Water Southern Arizona Water Issues Forum September 14, 2012

CAP - Future Value of Water Southern Arizona Water Issues Forum September 14, 2012. CAP System. 336-mile aqueduct brings Colorado River water from Lake Havasu to Tucson 14 pumping plants lift water nearly 3000 feet Lake Pleasant/New Waddell Dam

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CAP - Future Value of Water Southern Arizona Water Issues Forum September 14, 2012

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  1. CAP - Future Value of Water Southern Arizona Water Issues Forum September 14, 2012

  2. CAP System • 336-mile aqueduct brings Colorado River water from Lake Havasu to Tucson • 14 pumping plants lift water nearly 3000 feet • Lake Pleasant/New Waddell Dam • Delivers 1.6 million acre-feet of Colorado River water annually

  3. NGS Facts Constructed in early 1970s 3 coal-fired units, output of 2,250 MW Located on Navajo Nation near Page Operated by SRP on behalf of 6 owners More than 500 employees, 80% Navajo Produces 95% of power used by CAP

  4. Potential EPA BART Outcomes at NGS • Existing LNB sufficient • SNCRs  $40M to install and $20M/yr to operate (and maybe more costly technologies later) • SCRs $600M to install and $12M/yr to operate • SCR+BH $1.2B to install and $17M/yr to operate

  5. Other Cost Uncertainties at NGS Renegotiation of: • Indian land lease • water contract • coal contract Other regulatory rulings (e.g., Ash Rule, MATS) Combination of these costs with additional costs from EPA BART will increase overall cost of NGS to its customers, possibly to the point where NGS will close.

  6. Impacts of NGS Closure Economic • Severe reduction in revenues and jobs for Navajo Nation and Hopi Tribe • Impacts to businesses and jobs in Page and surrounding communities • $55M/yr repayment will come from higher capital charges to customers and higher property taxes • CAP energy costs will increase • End users of water will pay more Environmental • CAP pumping power must come from market or new generation source • AZ Water Settlement Act jeopardized • Agriculture may return to groundwater • Groundwater declines from increased pumping • Challenges in diverting Arizona's full Colorado River entitlement

  7. CAP’s Contribution to Sustainability CAP has invested $30 million in augmentation and conservation programs: • Brock Reservoir • YDP Pilot Operation • Weather modification demonstration program

  8. CAP Contribution to Research • Colorado River Basin Study:  50 year planning study identifying large-scale importation and desalination projects, reuse, full-scale weather modification programs, and conservation projects • YDP Operation and Alternatives:  studies to develop a plan to operate the YDP or an appropriate alternative to conserve water in the Yuma area • BinationalSeawater Desalination:  studies of desalination projects in Mexico that can provide new water supplies to CAP

  9. CAP Prepares For Shortage • Multi Species Conservation Plan:50 year program to protect reservoir operations, deliveries, and power production and to protect and create habitat for threatened and endangered species. • Colorado River Interim Guidelines for Lower Basin Shortages and Coordinated Operations for Lake Mead and Lake Powell:Provides operational certainty for reservoir operations during shortage conditions through 2026. 

  10. Questions?

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