By John Earl
Surf City Voice
Originally published March 17, 2009 as part 1 of a three part series on desalination.
Poseidon Resources Inc. and the four Huntington Beach city council members who voted in 2006 to approve the company’s request to build a desalination plant in the city’s southeast section promised that the project would be paid for with private funds-at no cost to the city’s taxpayers.
But Poseidon, a multi-national equity investor and developer of privatized water systems, currently controlled by “zombie” bank, Citigroup (which is being bailed out by federal tax funds), could directly and indirectly benefit from $1 billion in public funds, about 70 percent of that courtesy of taxpayers in Los Angeles, Orange and San Diego counties and the rest paid for by taxpayers across America through the American Recovery and Reinvestment Act (ARRA) signed into law recently by President Barack Obama.
The subsidies would also be directed at a nearly identical Poseidon desalination plant in the city of Carlsbad and would help ensure but not guarantee that both plants are cost effective for Poseidon to build and to operate. Under the city approved plan, Poseidon would build the desalination plant in Huntington Beach next to the AES power generating station at Beach and Newland streets. Poseidon’s plant would suck in 127 million gallons of seawater per day through existing AES cooling pipes to create 50 million gallons of per day or 56,000 acre feet of drinking water each year.
Poseidon would sell 3.2 million gallons of converted seawater per day to the city, a small fraction of its total daily water usage from other source, at five percent less than it pays the Municipal Water District of Orange County (MWDOC) for water. The other 47.8 million gallons per day would go to MWDOC’s member districts at government subsidized prices. Jobs would be created by the building and operation of the plant and the city’s tax base would go up, according to predictions made by Poseidon and city staff.
Councilmember Don Hansen summed up the council majority’s view three years ago when he reassured hundreds of city residents packed into the council chambers that the desalination plant was “born purely on private investment dollars” to be spent at Poseidon’s risk, not the taxpayers’. Continue reading Desal Bailout?