Water agencies pitch in to combat energy crisis

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Tuesday January 30, 5:30 pm Eastern Time

Press Release

Water Agencies Pitch in to Combat Energy Crisis

Assistance in Purchasing Alternative Power Sources Announced

SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 30, 2001--The Association of California Water Agencies-Utility Service Agency (ACWA-USA) announced today that it had reached agreements with two companies to assist members' purchase of solar power devices and microturbine electricity generators. The deals could supply up to 140 participating water agencies with alternative power sources amid the current California energy crisis.

``The deals we're announcing will go a long way toward insulating our member water agencies from the price and supply volatility that's rocking California's power market,'' said ACWA-USA President Ed Horton. ``It will be part of a larger solution-- not just for the current crisis but also in the long term.''

ACWA-USA is a joint powers authority established in 1996 to pool together water agency demands for utility services such as electricity and natural gas.

Under the first deal, ACWA-USA member agencies will contract with a firm called Solar Depot to purchase solar units called 'photovoltaics' at a 30 percent discount off the retail price. The units convert sunlight into electricity, and require about 150 square feet per kilowatt installed. They will produce electricity in the 14 cents per kWh range, and have a lifespan of approximately 20 years per unit.

The deal for purchase of microturbines was negotiated with Harza Energy, which will supply 30 and 60 kW microturbines to member water agencies at a discounted price. Costs will range from $22,000 to $26,000 per 30 kW unit, with the size of the discount depending on how many units are collectively purchased by association members. The capacity of these units falls below the size that requires local air board permits.

Water pumping is the single most significant user of electricity in the state, using five percent of the state's peak load and seven percent of the total electricity usage in California. Electricity costs compose between 20 and 80 percent of a water utility's total operating budget.

``Energy is the greatest cost behind delivering clean, affordable water,'' said Horton. ``Fortunately, the deals announced today are innovative ways to continue doing that amid very uncertain circumstances. We anticipate great success with our members' microturbine and photovoltaic programs.''

As part of its larger effort to combat the energy crisis, ACWA's board of directors has also approved an Energy Action Plan being distributed this week to legislators. The plan contains recommendations for dealing with the energy crisis, as well as background information on how to prevent the volatility in California's energy supply from spilling over into the state's water infrastructure. The plan is available online at www.acwanet.com.

ACWA is a statewide organization whose 438 public agency members are responsible for about 90% of the water delivered in California.

Contact: ACWA Dan Smith or Jennifer Persike-Becker, 916/441-4545

-- Swissrose (cellier@azstarnet.com), January 30, 2001


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