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: Legal Pad | LALawsuit complicates desal plant plans
By Richard Binder
The San Diego County Water Authority is considering a subsidy that would help Poseidon Resources Corp. build its proposed desalination plant. But last week the authority decided to sue Metropolitan Water District, alleging that Southern California's main wholesaler was excessively charging the authority for water.
The lawsuit jeopardizes the subsidy of up to $250 per acre-foot of water, and without the subsidy, says Scott Maloni, a vice president of Stamford, Conn.-based Poseidon, customers won't be able to afford water. And Poseidon won't be able to raise the $530 million it needs to build the plant.
The subsidy amounts to up to $250 per acre-foot of water. An acre-foot, about 326,000 gallons, is enough to supply two typical households of four for a year.
Full post as published by Legal Pad | LA on June 16, 2010 (boomark / email).
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