To: Pasadena Municipal Services Committee
From: Cynthia J. Kurtz, Pasadena Met Representative
Re: MWD Update
Date: June 24, 2025
Thank you for the opportunity to provide this update on Metropolitan Water District of Southern California (MWD) activities. Please feel free to reach out to me with any questions or comments.
1. General Manager Recruitment
The Board of Directors has begun the process of recruiting a new General Manager.
We will be working with Bob Murry and Associates as our recruiter. Rather than a broad solicitation for candidates, we have asked the recruiter to contact candidates from the last recruitment to see if they are still interested in the position and Board Members were asked to recommend potential candidates.
We have chosen this process to expedite our recruitment which we are planning to complete before the end of the calendar year. We knew when we appointed Deven Upadhyay as our General Manager that he had personal commitments and could only serve as the General Manager for one year.
2. Climate Adaptation Management Plan (CAMP)
The Board has adopted the Climate Adaptation Master Plan and is now working on revision to the agency’s Business Model. Primary revisions that are under consideration include revision to the rates related to the treated water surcharge and changes to the financial reserve policy. The General Managers and Water Managers from the member agencies were asked to develop recommendations for the Board’s consideration. Pasadena Water and Power staff were fully engaged in these discussions. The Board plans to begin deliberation of these policy changes in July.
3. Budget
The Board has also begun the review of our present and future financial needs in preparation for the next two-year budget. It will be a difficult budget as water sales are flat and cost continue to rise especially related to maintaining an aging infrastructure system.
While the budget will be difficult, I am confident we are making sound fiscal decisions. Recently S&P reaffirmed MWD’s AAA/stable rating for a current bond refinancing and a AA+/stable rating from Fitch and S&P for a future proposed sale of bonds. The agencies noted changes in the budget and business plan as well as modeling of various supply and demand scenarios and strong emergency planning as key factors in their decisions.
4. Water Supply and Storage
The allocation from the State Water Project (SWP) has increased to 50% due to the March storm events. We expect this to be the final increase for this water year.
Northern Sierra precipitation is 110% of normal. Oroville Reservoir has reached 97% of capacity and SWP storage in San Luis Reservoir is at 76%.
There are quite different conditions on the Colorado River. While precipitation was 90% of average, the hot spring has caused evaporation and other conditions to reduce run off significantly. Lake Powell and Lake Mead are both at 33% of capacity.
The Colorado River’s hydrology is rapidly deteriorating. In-flow into Lake Powell has decreased by 2.6 million acre-feet (MAF) in the last six months. The hot weather has produced the driest spring on record. Unless there are a reversal in the trends, Lake Powell could reach dead-pool by 2027 making it impossible to produce power at Glen Canyon Dam.
MWD continues to have record levels of storage available (over 3 MAF) and with the reduced demand due to conservation and development of local water supplies, anticipates no problems meeting member agencies demands this year.
5. Colorado River Negotiations
Negotiations for a new set of rules governing the operations of the Colorado River continue to be contentious. Recently a new alternative which would focus on the River’s hydrology and the supply of water each year rather than on a set water supply and demand management programs has been added to the alternatives for the EIR to review. There is some optimism that this could offer new opportunities for a seven-state deal.
Last week the White House announced Ted Cooke as their nominee for Commissioner of the Bureau of Reclamation. This is a key position for the Colorado River negotiations. The Commissioner serves as the Water Master for the Lower Basin States (California, Arizona and Nevada) and oversees the operations of Hoover Dam.
Mr. Cooke is a well-regarded technical water expert. He served as the General Manager of the Central Arizona Project (CAP) from 2015 to 2023. He is well versed on the needs of the Lower Basin States. He was still in his position with CAP when the Interim Drought Management Plan was negotiated and understand the hydrology of the Colorado River. His nomination is seen as a plus for the Lower Basin States.