You are here : Home 
KXO News Education Center Imperial Irrigation District expected to approve Ormat contract
KXO News Education Center Imperial Irrigation District expected to approve Ormat contract Todays is : Friday, 09 January 2009
| Imperial Irrigation District expected to approve Ormat contract |
|
|
|
| Written by George Gale | |
| Tuesday, 23 September 2008 | |
|
(Poor communication could have cost Ormat millions of dollars)….Ormat obtained a construction permit from the County based on a “Will Serve” letter issued by the IID. The Imperial Irrigation District was not included in the process to issue the permit, and there fore, they were not present to inform Ormat the letter was not a delivery contract. IID Board Chairman John Pierre Menvielle said if the two entities were to work towards the Economic Development of the County, there had to be better communication. Fortunately for Ormat, the District was able to negotiate a contract that would provide the 6,800 acre feet of water annual needed to serve the 49.9 megawatt geothermal plant constructed north of Brawley. The District Board will be asked to approve the contract at their October 7 meeting. This week, the Board heard from the public. The Farming community, especially the Farm Bureau, did not favor the contract. They said the water needed by Ormat would take away from the Ag community. Menvielle said Farming was still King in the Valley, but they must also deal with economic development. He said he felt the IID had worked out a fairly decent deal. The 20 year agreement requires Ormat to pay for any over-runs, and a replacement clause that requires Ormat to take actions to conserve, import or reduce the project water demands 11 years into the contract. The said the terms minimized any impact to the Ag community. Andy Horne, Assistant CEO to the County, said they could consider using groundwater to meet the demands, if that were to become necessary. The County controls the groundwater. The geothermal power generated from the Brawley plant will be sold to Southern California Edison. Ormat will transport the energy through IID lines, and pay the District a wheeling fee of about $20 million for the life of the contract. Ormat will also pay the District the Industrial Rate of $85 per acre foot of water, and they will contribute $1.5 million toward the IID’s upcoming integrated water resources management plan. The plan will deal with future projects such as the Ormat plant. |
| < Prev | Next > |
|---|
Latest Podcast
KXO Contest Winners
Coldstone Creamery
Birthday Cake
Earl Fergusion - AM
Linda Nunez - FM
KXO Newsletter Subscribe
