Poseidon gains approval for revised terms on Huntington Beach project
Orange County Water District has approved an updated term sheet including a revised water purchase agreement with Poseidon Water for the Huntington Beach Desalination Plant project.
The new agreement includes amendments that have been welcomed by ratepayers’ lobby groups. They are:
- A new cost-of-service pricing structure that is expected to provide a lower cost of water compared to imported water;
- A 30 or 35 years water purchase agreement, down from 50 years;
- Option for Poseidon to finance and construct the delivery system; and
- Option for OCWD to purchase the plant after five or seven years, down from 30 years.
Poseidon will now continue through the permitting process, with the aim to finalise a contract on the proposed 189,250 m3/d desalination plant, for approval by OCWD by 30 June 2019.