Los Angeles 3 rd Regional Investors Conference Los Angeles, California March 31, 2016 Metropolitan Water District of Southern California 1
Metropolitan Water District of of Southern California 2
Metropolitan Water District of of Southern California 3
Imported Supplies 26 Members Agencies 5,200 square miles 19 million people $1 trillion regional economy 4 million acre-foot average water demand Local Supplies Metropolitan Water District of Southern California 4
Aqueduct Capacity: 1.25 MAF 242 miles of aqueduct Upper Colorado River Basin Historic Range of Deliveries: 0.45 1.28 MAF MWD Service Area Lake Mead Colorado River Lake Powell Colorado River Aqueduct 5 Pumping Plants 4 Reservoirs Metropolitan Water District of Southern California 5
Lake Oroville Sacramento & Feather Rivers Bay- Delta San Luis Reservoir Historic Range to MWD: 0.4 1.8 MAF Northern Sierra California Aqueduct MWD Service Area Total Contract: 4.2 MAF MWD is largest contractor (~2.0 MAF) 29 Contractors 28 Dams 26 Pumping & Generating Plants 660 Miles of Aqueduct Metropolitan Water District of Southern California 6
Local Storage Diamond Valley Lake Mathews Lake Skinner Conjunctive Use Groundwater DWR State Project Reservoirs Central Valley/SWP Storage San Luis Carryover Semitropic Arvin-Edison Kern Delta Mojave CRA Storage DWCV Advance Delivery Lake Mead ICS Metropolitan Water District of Southern California 7
6.0 Million Acre-Feet 5.0 4.0 3.0 2.0 14x Increase in Capacity 1.0 0.0 Metropolitan Water District of Southern California 8
Metropolitan Water District of of Southern California 9
20 Water Year to Date 15 Water Content (in.) 10 5 Current: 14.2 in. Normal Current Water Year 97-98 El Nino Previous Water Year 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Metropolitan Water District of Southern California 10
55 50 45 Water Year to Date Water Content (in.) 40 35 30 25 20 15 10 Current: 28.2 in. ` Normal Current Water Year 97-98 El Nino Previous Water Year 5 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Metropolitan Water District of Southern California 11
8 - Station 90 80 70 Wettest 88.5 in. 97-98 El Nino: 82.4 in. Precipitation (in.) 60 50 40 30 Water Year to Date Current: 51.8 in. Average Last Year: 37.2 in. 50.0 in. 20 10 Driest 17.1 in. 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Metropolitan Water District of Southern California 12
2.0 0.10 T/E 1.7 MAF Million Acre-Feet 1.5 1.0 0.96 Table A 0.5 0.96 CRA 0.0 50% SWP Allocation Metropolitan Water District of Southern California 13
End of Year Balances 5 4 Million Acre-Feet 3 2 1 2.2 1.8 1.1 1.0 1.7 2.4 2.7 2.3 1.2 0.9 1.2 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Emergency Storage Dry-Year Storage Metropolitan Water District of Southern California 14
Metropolitan Water District of Southern California 15
Protects State s water supplies through Delta system upgrades Mitigation Includes ~ 15,600 acres of habitat Water contractor funded Dual tunnel facilities and mitigation Supports long-term health of native fish & wildlife Habitat restoration ~ 30,000 acres in 5 years Includes broader public funding Metropolitan Water District of Southern California 16 16
Design modifications Construction impacts Water quality Regulatory process Tunnels SWP Pumps CVP Pumps Metropolitan Water District of Southern California 17 17
Revised Cost Analysis IMPROVEMENTS Capital O&M (Total 50 Years) TOTAL Conveyance $14.99 B $1.46 B $16.45 B Mitigation, Monitoring $0.56 to $0.82 B $0.22 B $0.78 to $1.04 B TOTAL $15.55 to $15.81 billion $1.68 billion $17.23 to $17.49 billion Within $5 per household per month Estimated costs from DWR; in undiscounted 2014 dollars with a 36% contingency Metropolitan s share is approximately 25% Metropolitan Water District of Southern California 18
DWR tracking amount of water that could have been diverted from the Delta and stored this winter if California WaterFix were in place January 5-31 February 1-5 February 6-11 February 12-18 February 19-25 Total 290,000 AF 89,000 AF 64,000 AF 14,000 AF 23,000 AF 480,000 AF Equivalent to 156 billion gallons of water Enough water to serve 3.5 million people for one year Metropolitan Water District of Southern California 19
Metropolitan Water District of Southern California 20
Nearly a decade of discussions on water recycling November 2015 Metropolitan s Board appropriated $15M for Demonstration Project Advanced Water Treatment Demonstration Plant (1 MGD) On site-district s Joint Water Pollution Control Plant December 2016 Report findings to MWD Board Feasibility Studies and Financing Plan Indirect potable reuse program through phased approach to up to 150 MGD Metropolitan Water District of Southern California 21
Metropolitan Water District of Southern California Diversify regional supplies Improve storage and delivery capabilities Provide new source of high quality, droughtresistant water Increase overall reuse within its system Begin beneficial reuse at the Joint Water Pollution Control Plant Reduce ocean discharges Metropolitan Water District of Southern California 22
Metropolitan Water District of Southern California 23
$4.2 Billion Synthetic Fixed $494 million 12% 13% 76% Fixed $3.2 billion Variable $530 million Metropolitan Water District of Southern California 24
Bank Liquidity Daily VRDO s $89M Bank Liquidity Weekly VRDO s $62M $1.0 Billion $340M Self-Liquidity Weekly VRDO s Three series Available $180M bank liquidity Four series: 270 Day Reset Aug.-Sept. 2016 $338M SIFMA Index Bonds $198M Four series: Three Year Reset March 2018 Metropolitan Water District of Southern California 25
Adopted by Metropolitan s Board on March 8, 2016 Increase flexibility to issue new debt structures Expect to initially use for short-term debt Allow for a hard put structure Failure to pay on the put date is an event of default Plan to keep current senior lien open Metropolitan Water District of Southern California 26
SIFMA Note Remarketing s may utilize new Master Subordinate Resolution $129M - 2011 Ser. A1/A3 (270 Days): August 2016 $104M 2009 Ser. A (270 Days): August 2016 $105M 2013 Ser. E (270 Days): September 2015 Current Refunding Opportunities-July 1, 2016 $175M 2005 Auth. Ser. C $ 24M - 2006 Ser. B $30M 2012 Ser. E3 and $15M 2015 Ser. G1 Metropolitan Water District of Southern California 27
AAA/AA+/Aa1 ratings Financials impacted by lower water sales Revenue Bond Debt Service coverage = 2.0X goal Projected FY 2016: 1.40x Fixed Charge coverage = 1.2X goal Projected FY 2016: 1.25X FY 2015/16: Unrestricted reserves anticipated to be approximately $400 million by end of fiscal year Metropolitan Water District of Southern California 28
Essential service provider to large & diversified regional area Vast service territory covering six counties and 19 million people Diversified water supply and large water storage reserves to address drought conditions Began 2016 with total water storage of approximately 1.5 MAF CRA Supplies expected to be approximately 960 KAF for 2016 SWP current allocation at 30% Strong financial profile Trend of sound debt service coverage Conservative water sales projections Reasonable and predictable water rate increases Over $1 billion in cash and investments Metropolitan Water District of Southern California 29
egoldstein@mwdh2o.com Metropolitan Water District of Southern California 30