Monterey plant report to be published in January 2009

The California Public Utilities Commission is to release a draft environmental impact report on 30 January 2009 on California American Water Company's (CalAm's) proposed Coastal Water Project (CWP) located at Moss Landing in Monterey County, USA.

CalAm is proposing to build, own and operate a 40,000m³/d seawater desalination plant with an ocean water intake and brine outfall, a product water conveyance system and aquifer storage and recovery (ASR) facilities. CalAm states that the project would allow it to comply with state rules requiring the company to secure a water supply to replace diversions from the Carmel River aquifer and reduce its overdraft on the Seaside Basin aquifer.

The new source will be operated in conjunction with existing supplies, with the desalination plant and the Carmel River being used to meet winter demand and the desalination plant, Seaside Basin wells and new ASR wells being used to meet peak summer demands.

CalAm's estimate for the total capital cost for the CWP is US$191 million. The report will present and analyze the proposed project, alternatives to it and a proposal for a project of more regional countywide scope. It will identify various environmental alternatives for the proposed project, as well as a no-project alternative.

The public comment period for the report will be 31 January - 1 April 2009. The report will be available online at www.CWP-EIR.com.

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| California | Recovery


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