Energy

In addition to being the nation’s largest state owned and operated water delivery system, the State Water Project is also the fourth largest energy producer in California. Through hydroelectric power plants, the State Water Project fulfills much of the system’s power needs.

Member agencies of the State Water Contractors have a vital interest in the generation and consumption of State Water Project power, which is needed to maintain reliable water deliveries to their service areas in Northern, Central and Southern California.

State Water Contractors’ members pay the California Department of Water Resources for all costs associated with power facilities and water deliveries. The organization works closely with the California Department of Water Resources on an ongoing basis to contain pumping costs and enhance power generation value.

To reduce the overall cost of energy for water deliveries, the State Water Project is carefully operated to maximize pumping during off-peak hours, when California’s daily energy demands are lowest and therefore cheaper, and to minimize pumping during on-peak hours when energy demands are highest and more expensive. In addition, the California Department of Water Resources, as a bulk power utility, can sell surplus power when State Water Project energy demands are less than its power resources. This revenue helps keep the net cost of water deliveries affordable.

For more information on the State Water Project, please visit www.ca.water.gov.