Poseidon Carlsbad: Desalination and the San Diego County Water Authority Harvard Case Solution & Analysis

Extreme drought conditions in California have critical impacts on the San Diego County Water Authority's power to supply water that is sufficient for current users. Water shortfalls additionally could curtail the economic development of one of the quickest growing regions in America. Seawater desalination is energy intensive and expensive, but nevertheless, it may be a partial solution. Brian Brady and other members of the Authority need to vote for or against a financing and buildinga schedule that comprises a 30-year water procurement agreement with Poseidon Resources (Channelside) LP, a privately owned company.

In the prior years the water cost would be an estimate double of the average unit cost that the Authority pays at time of selection. Is this proposal good policy in the long run to lock in price and supply for 7% of the water needs of the regions? Is the private financing and supply of public infrastructure proper for a basic good like water? The case additionally investigates the allocation of water supply and use in the California and environmental consequences of operating this plant on electricity drawn from the neighborhood utility, which in San Diego County is about 65% from fossil sources. The case is intended to serve as an introduction to seawater desalination, water policy, bond finance and waterfalls, infrastructure as the base for economic development and risk apportionment in public-private partnerships.

Poseidon Carlsbad Desalination and the San Diego County Water Authority Case Study Solution

PUBLICATION DATE: February 09, 2015 PRODUCT #: 215057-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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