2011 Comprehensive Annual Financial Report (CAFR)

hydroelectric energy and has staff of 180 regular employees providing services to its three operatingbudget units: Agency Wide, Water Division and Power Division.Agency WideAgency Wide provides the water and energy advocacy and stewardship functions within the boundaries ofthe County. Agency officials understand the complexities, interrelationships and importance of sustainingreliable and affordable water and energy for Placer County’s present and future needs. PCWA serves as alocal water resources management and stewardship entity striving to protect the watershed, water waysand water quality important to the people, lands and ecosystems of the County. PCWA holds extensivesurface water entitlements and rights on the Middle Fork American River. Water is sold wholesale tovarious water purveyors who retail it to their customers. Agency Wide wholesales water to the City ofRoseville, San Juan Water District, Sacramento Suburban Water District, PCWA Western Water System,as well as California-American Water Company. Agency Wide activities are varied and far ranging.These include involvement in water issues affecting the Lake Tahoe and Truckee River system, theAmerican River system, the Yuba/Bear Rivers system, the Central Valley Project and the Bay/Deltasystem. PCWA is actively involved in numerous collaborative partnerships, including watershedplanning, groundwater management, and regional infrastructure and conjunctive use projects. Advocacyfor PCWA water entitlements and energy resources for Placer County are at the forefront of Agency Wideinterests and activities. The Middle Fork Project (MFP), an Agency Wide asset, consists of 3 storagereservoirs and 5 diversion dams, 5 power plants, diversion and water transmittal facilities, 5 tunnels andrelated facilities, plus the Auburn diversion tunnel and pumping plant. The revenue bonds which fundedthe construction of the MFP were approved by a vote of the people of Placer County. No singlecommunity or water system has a superior entitlement to receive the benefits of the MFP. The financialactivities that flow from the sale of water from the MFP are kept in the Agency Wide division. Thefinancial activities that flow from the operation and maintenance of the MFP and the sale of power arekept under the Power Division.Power DivisionPCWA’s Power Division was established with the construction of the MFP that began in 1963 and wascompleted in 1967. PCWA owns and operates 5 hydroelectric power plants, 3 primary storage reservoirs(French Meadows, Hell Hole and Ralston) and 24 miles of tunnels. The MFP can generate, at peakpower, 244 megawatts that averages 1.1 million megawatt hours annually of hydroelectric power that iswholesaled to Pacific Gas and Electric Company (PG&E) under a 1963 power sales contract thatterminates on April 30, 2013. The PG&E power sales contract states that PCWA power sale revenues area reimbursement by PG&E for operational expenses, routine maintenance, additions and betterments andpayment of debt service for the Series “A” revenue bonds issued in 1963 to finance the MFP. The powergenerated by the MFP is sufficient to provide reliable power to more than 100,000 homes. The MFP alsoprovides public recreational opportunities, including campgrounds and boating facilities as constructed byPCWA and operated through the U.S. Forest Service.Water DivisionPCWA acquired its first and primary water system in 1968. With subsequent acquisitions and growth, theAgency has become the largest water purveyor in the County, serving more than 38,000 water accounts intwo water service areas; the Western Water System and the Eastern Water System. Surface watersupplies are purchased from PG&E and Agency Wide. The backbone of the water system is the 165miles of canals, ditches, flumes and several small reservoirs that PCWA owns and operates, most ofwhich were built in the gold rush era. PCWA delivers and sells a significant amount of raw water forirrigation of pastures, orchards, rice fields, farms, ranches, golf courses and landscaping. The Agencyowns and operates 8 water treatment plants, 35 water tanks and 599 miles of treated water pipelines.Treated surface water is sold directly to PCWA customers residing in Auburn, Colfax, Loomis, Rocklin,portions of Roseville and throughout various unincorporated areas of the County. Treated water is alsoii