The Sabine River Authority of Louisiana held an informational meeting on April 13 regarding a possible future water sale from Toledo Bend Reservoir.
SRA Executive Director Warren Founds headed the meeting and to begin meticulously went over the purpose of the meeting and a brief history on the founding of Toledo Bend.
The lake’s original, 50-year, power sales agreement with Gulf States Utilities, Louisiana power and Light, and CLECO ended on April 30, 2018. The companies guaranteed payment with a $30 million bond issue of the $70 million spent on building the project. The companies also provided the majority of funding for the insurance, maintenance, and operations of the power generation plant with minimum support from the SRA organizations in Texas and Louisiana, although replacement and major repairs were paid for by the river authorities. The power companies received a guaranteed one million acre feet to generate electricity during the prime power season of May through September and when the reservoir levels were between 172 and 162 feet MSL, until the 168 foot law went into effect in 2008. Generation and pricing changed through the years with average generation of 166,000 MWH/year being the basis of the 2018 contract.
The new contract begins on June 1 with Nextera Energy Marketing, who is buying the power while the river authorities are responsible for all insurance, maintenance, and operations of the powerhouse. The contract is for 80,000 MWH and has a guaranteed price structure but must deliver or purchase power with quantities being spread throughout the year based upon the historic ability to generate power. The term is for 11 years and any additional power generation will be sold at the market price. Founds explained the SRA is on the hook more and more with the generators as they are 60 years old and will be approaching 70 years of age at the end of the new contract and that there’s no getting more money out of the powerhouse.
Based on the most recent data, current water diversions from Toledo Bend are at roughly 29,686 acre feet (AF) in Louisiana and 6,021 AF for Texas with total diversions by the authorities being 101,216.50 AF in Louisiana and 63,783.08 AF in Texas. Founds went on to explain that the 600,000 AF up for sale is 13.4 percent of the lake at full pool volume and that the median inflow of water over the last 54 years is 3,777,200 AF per year with the 600,000 AF being 15.9 percent of the median inflows. The water used for power generation from 2021-22 was 2,981,830 AF. The 600,000 AF under discussion makes up 20.1 percent of the water already used for power.
Following the presentation, the SRA heard inquiries from those in attendance at the overflowing conference room at Cypress Bend Resort. Although angry in delivery, the speakers overwhelmingly want assurances with any water sale that the lake is not to be drained and that there should be lake level protections in place. Others shown interest in an environmental impact statement and wanted to know where the water was going. Another commenter didn’t want to see the water going to other states.
During the meeting, those in attendance were reminded that the process isn’t immediate, and there are numerous obstacles that must be overcome before any water sales can commence and the entire sales discussion is still in its early stages.