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February 6, 2014 Greg Flores

210-233-3247 (office)
210-286-5217 (cell)

Brackish Groundwater Allows SAWS to go Big with Desalination

Utility to recommend rejection of three private proposals as too risky

SAN ANTONIO – San Antonio Water System (SAWS) staff will recommend to its Board on
Monday the pursuit of additional brackish groundwater supplies through a proposed groundbreaking
partnership with CPS Energy to co-locate a natural gas plant on the same site as an expanded brackish
desalination (desal) plant.
Beyond the currently planned desal plant in southern Bexar County, SAWS has concluded that
additional desalination capacity is feasible in the local area.
“Brackish groundwater is plentiful and unused in our region, and available for centuries,” said
SAWS President and CEO Robert R. Puente. “The State of Texas views desalination as a solution to
meet future water demands, and so do we.”
With the availability of brackish supplies in adjacent counties, further expansion of a desalination
facility in partnership with CPS Energy could occur on the same site as the currently planned desal plant,
the existing Aquifer Storage and Recovery plant, and a third project increasing yield from the local
Carrizo Aquifer in southern Bexar County. This co-location would save money on additional land as well
as consolidating management and operation of several water supply projects.
As part of Monday’s recommendation, Puente is also expected to announce the rejection of three
private groundwater projects proposing to pipe up to 50,000 acre-feet of water per year to San Antonio
from outlying areas in the state.
The request for new water supplies issued by SAWS was meant to shift all risk to a private
developer, calling for the developer to build the project and deliver water to a local SAWS pump station.
One private company, however, was unable to guarantee that water would be available throughout the life
of the project while still requiring payments from SAWS.
“The highest ranked proposal was unwilling to assume the risk of water being cut off by the
groundwater district that regulates the supply,” said Puente of the project proposed by Abengoa Water
LLC. “We are also unwilling to ask our ratepayers to absorb the cost of a project with potentially no
water.”
The private proposals would have required annual payments of up to $85 million for thirty years,
and a rate increase of approximately 9% to 12% in 2019, not including infrastructure integration costs.
 Groundwater conservation districts have the authority to regulate withdrawals of water from
aquifers, often with little notice or process for appeal. SAWS has experienced the curtailment decisions
of groundwater districts in the past.
“Groundwater law in Texas leaves too much uncertainty and risk for the private and public
sectors,” added Puente. “I hope that the proposers and cities across the state will join SAWS in calling
for the legislature to change the law so Texans can build projects to meet growing future demand.”
A second proposal from Dimmit County prompted the local Wintergarden Groundwater
Conservation District, from which permits would be needed, to pass a resolution to “specifically oppose
the exportation of large quantities of groundwater from Dimmit and Val Verde counties, as is being
considered by the San Antonio Water System.”
The third proposal from Val Verde County has been met by fierce regional opposition and threats
of legal challenges and the formation of a groundwater district with the purpose of impacting the
proposed project.
Instead of committing to one of the proposed projects, SAWS plans on pursuing the expansion of
brackish groundwater desalination in partnership with CPS Energy to ensure long-term supplies for the
region.
Costs of an expanded desalination project can be spread over time as the water is needed. A
public desalination plant could also be eligible for Proposition 6 funding from the Texas Water
Development Board, while the proposed projects are not.
“We appreciate the leadership of state officials attempting to remove the regulatory hurdles
facing brackish groundwater development, and we will work tirelessly to ensure that such legislation is
passed next session,” said Puente.
Due to the flexibility provided by proactive planning and successful water management in recent
years, an expanded desal project can be planned for the mid-2020s, instead of the 2018 date planned for
the private proposals.
Outdoor water conservation efforts, for example, helped San Antonio achieve an estimated 2013
per capita water use of 127 gallons per day, surpassing the planning number of 135, allowing current
water resources to stretch further and avoiding Stage 3 watering restrictions to date.
Additionally, the Regional Carrizo Aquifer project is now on line, and the Aquifer Storage and
Recovery facility is exceeding expectations during drought.
Since 1992, San Antonio Water System has been a leader in innovative water management
strategies, making San Antonio water’s most resourceful city. Water and wastewater services are
provided to 1.6 million consumers in the San Antonio region.
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