Historic Fire in 2007

On May 10, 2007, a major fire started at Catalina Island, north of the city of Avalon near a radio transmission facility.

Over 4,750 acres were burned and the fire destroyed much of the electrical infrastructure that delivered power from SCE’s Pebbly Beach Generating Station to Catalina’s inland communities.

The cause of the fire was never truly isolated.

Firebreaks were carved into the mountainsides 

Catalina Island Statistics

Island Size	76 square miles
Annual Visitors	800,000
Total Island Population	3,696
Avalon City Population	3,127
City of Avalon Annual Budget	$15, 000,000
Two Harbors Population	150
Additional Population	U.S. Marine Center
Avalon Peak Visitor Day	6,400
Two Harbors Peak Visitor Day	4,700
Pebbly Beach Generating Station Worth	$11.217 million
Pebbly Beach Generating Station O&M	$5.38 million
Pebbly Beach Capital Expense Forecast	$24.085 million (from 2009)
Pebbly Beach Diesel Fuel Use	55,000 barrels
Pebbly Beach Diesel Fuel Cost (Annual)	$8,051,450 (@$146/barrel)
SCE Estimate for Gas & Water Business	$35 million
Island Stakeholders Estimate	$5 million
Number of Oil & Gas Ratepayers	1,800
PUC Authorized Gas Revenue Increase	$984,500 - - 06/07/08
Number of SCE Natural Gas Customer	1,325
Number of SCE Electricity Customers	2,400
Average Cost of Electricity	$.12 /kwh
Number of SCE Water Customers	1,900
Underground Gas Distribution System	6.5 miles
Miles of Coastline	48 miles
Capacity of Water Desalination Plant	132,000 gpd
Cost of Water	$6 per 1,000 gallons
Tier 1 (up to 2500 gallons):	$2000/AF*
Tier 2 (2501-10,000 gallons):	$5000/AF
Tier 3 (over 10,000 gallons):	$7200/AF
Capacity of Wastewater Treatment Plant	1.2 million gpd (Avalon)
Capacity of Wastewater Treatment Plant	57,000 gpd (Two Harbors)

* AF is an acre foot: An acre foot is the volume of one acre of surface area to a depth of one foot. Since the area of one acre is defined as 66 by 660 feet then the volume of an acre-foot is exactly 43,560 cubic feet. This is approximately 325,851 U.S. gallons.

Catalina Island Wastewater

Wastewater service on Catalina Island is provided by the United Water Company in Avalon, and by Two Harbors Enterprises in the Two Harbors community. Outside these areas, the property owner or leaseholder is responsible for disposing of wastewater.  The Avalon Wastewater Treatment Facility (AWTF) receives freshwater and saltwater used indoors. To protect Avalon Harbor, the plant treats dry weather surface runoff, which is pumped from the storm drain to the treatment plant via a low flow diversion system.  The plant has an average dry weather design treatment capacity of 1.2 million gallons per day (mgd). Peak demand occurs on rainy days when the plant is pushed to its capacity. Peak dry weather demand in Avalon typically occurs on the 4th of July weekend, with 0.8 mgd in 2003. By comparison, the annual average daily discharge was .56 mgd in 2000. In Two Harbors, the Two Harbors Sewage treatment plant has a design capacity of 57,000 gallons per day. Peak demand occurs the first weekend of October when the area hosts its Buccaneer Days festivities.[1]

Between Yellow Building and Blue Tanks

             The Avalon Wastewater Treatment Facility (AWTF) is owned by the City and operated by United Water Company, under contract to the City. The AWTF is located in the industrial area of Avalon on Pebbly Beach Road. The treated wastewater is discharged into the Pacific Ocean through an outfall 400 feet off Pebbly Beach at a depth of 130 feet below the surface.  Raw sewage is pumped from the City to the AWTF through two lift stations. The waste flow is unique in that it is approximately 40-50 percent salt water due to the use of saltwater for toilet-flushing in Avalon. Wastewater at the plant is treated through a rotating screen for removal of large particles, a trickling filter and activated sludge reactors. The effluent is chlorinated, and solids are separated. Sludge is dried before being hauled to a landfill.[2]

            The Island Company owns and, through its subsidiary Two Harbors Enterprises, operates the Two Harbors Sewage Treatment Plant one-quarter mile south of the town of Two Harbors. Sewage treatment consists of aeration in two small treatment plants. Sludge generated in these plants is dried and barged to mainland landfills. Effluent from the treatment system is chlorinated, pumped into a concrete holding pond, and used for spray irrigation and dust control.  The treatment plants have a capacity of 57,000 gallons, and the holding pond has a capacity of 270,000 gallons.[3]

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[1] [2] [3] Santa Catalina Island Final Municipal Service Review, Prepared by Burr Consulting, May 4, 2004, p. 48 & 50

Catalina Island & Drinking Water

A sustainable, reasonably priced supply of fresh water is the resource most critical to residents, as well as private land owners and developers planning to build an 18-hole golf course, luxury hotels, restaurants and other amenities. Southern California Edison Company's water service on Santa Catalina Island serves 1,923 customers (2005).[1]

            Rainwater is stored in reservoirs throughout the island's interior, which is subsequently purified then piped to the towns of Avalon and Two Harbors. A desalination plant also services Avalon.[2]   Since 1975, most of the island’s interior and 48 miles of coastline have been managed by the Catalina Island Conservancy (Conservancy lands total 88 percent of Catalina Island). This organization is tasked with protecting the island’s biological communities and managing the recreational use of the island.   The Wrigley Reservoir is in the middle of the Conservancy and is surrounded by natural areas.[3]

            Groundwater is relatively clean as it has already been filtered through its natural production process; the groundwater is filtered and chlorinated before being distributed to consumers.  Saltwater used for toilet-flushing and fire suppression purposes is simply filtered as it is not intended to be potable.  Seawater is desalinated using the reverse osmosis principle. After about 30-35 percent of the original saltwater is converted, the balance is returned to the ocean through an outfall. The fresh water resulting from the reverse osmosis process is chlorinated and then pumped into the water mains located just outside the SCE facility.[4]

Reverse Osmosis Membranes

     Southern California Edison and Whitehawk Catalina, Inc. completed construction of a 132,000 gpd desalination plant on Santa Catalina Island in June 1991. The plant produces 25 to 30% of the Island's water supply, including the potable water supply for the Hamilton Cove condominium development.   The desalination plant is located adjacent to SCE's Pebbly Beach Generating Station, and brine is discharged through the station's existing cooling water outfall. Feedwater is taken from two feedwater wells. Product recovery is about 27%. The size of the plant is about 2,100 square feet. The cost of the water produced is about $2,000/AF ($6/1,000 gals).[5]

            Dual pipe infrastructure already exists on Catalina.  Saltwater is employed in the toilet system and other facilities in Avalon.[6]  Unique issues for wastewater treatment include the high salt content of the wastewater resulting from the City’s use of salt water for toilet flushing throughout the system; and very large differences between average and peak flow loadings resulting from the varying tourist population at this popular resort.[7]  The Center proposes to separate the pipe infrastructure and to eliminate the use of salt water in the wastewater system.

            On Catalina Island, in an effort to preserve fresh water, all wastewater in homes is flushed into the sewer laterals and City mainlines using saltwater. It was discovered that the use of saltwater for wastewater purposes leads to corrosion of the laterals. A majority of the laterals were broken or cracked, causing wastewater from the homes in Avalon to enter the groundwater system.[8]

            Desalination. The Center is proposing to arrange for the construction of a new desalination plant.  The new plant will utilize distillation [See Attachment 8] instead of the reverse osmosis process utilized in the current plant. We are proposing to utilize a distillation desalination system that utilizes photovoltaic panels with natural gas backup as the heat source.  This heating system could be supplemented with a biomass to heat and biomass to electricity system.  Biomass will come from clearing brush throughout California to reduce the incidences of wildfires.

            California PUC resolution granting Southern California Edison a 2007 rate increase showed that Catalina Island desalinated water accounted for 25% of total water production in 2005, but desalination accounted for approximately 70% of total electricity usage. The CPUC resolution report noted  that the overall energy intensity (75% local water/25% ocean desalination) of Catalina’s water system is approximately 4000 kwh/AF (acre feet). The CPUC approved a 3 tiered rate, roughly calculated below:[9]

• Tier 1 (up to 2500 gallons): $2000/AF
• Tier 2 (2501-10,000 gallons): $5000/AF
• Tier 3 (over 10,000 gallons): $7200/AF

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[1] Water Roadmap, California Public Utilities Commission, Filed December 13, 2005, p. 24

[2] Visiting Catalina Island, History

[3] Geosynthetics, "Reviving the Wrigley Reservoir on Catalina Island."

[4] Santa Catalina Island Final Municipal Service Review, Prepared by Burr Consulting, May 4, 2004, p. 45.

[5] hbdesalfacts.org

[6] The Catalina Island Sustainability Plan & Action Items.

[7] Robinson, Stafford & Rude, Inc

[8] WaterWorks

[9] The Oil Drum, "Desalination: Energy Down The Drain," Essay by Debbie Cook, March 2, 2009.

Catalina Island Propane (Liquefied Petroleum Gas)

SCE serves 1,325 commercial and residential gas customers in Avalon (as contrasted with about 2,400 electricity customers and 1,900 water customers), delivering gas through 6.5 miles of underground distribution pipes. The gas production facilities are located at the Pebbly Beach Gas Plant in Avalon.

Liquefied petroleum gas (LPG), in the form of propane, is delivered to Catalina by barge. The LPG is heated and vaporized to change it from liquid to gas, then mixed with air and inserted into the underground distribution system supplying customers in Avalon and Pebbly Beach Village. Driving much of the increase in SCE’s gas costs is the replacement of the 30-year-old gas vaporization plant.

(Application of SOUTHERN CALIFORNIA EDISON COMPANY for Authority to, Among Other Things, Increase Its Authorized Revenues For Electric Service in 2009, And to Reflect That Increase In Rates, before the PUC of the State of California, Date of Issuance March 17, 2009, p. 43.)

Catalina Island Natural Gas & Water

SCE is the sole provider of natural gas and fresh water service to Catalina Island, including the city of Avalon, California.  SCE operates the utilities under the names of Catalina Island Gas Company and Catalina Island Water Company.[1]  

            Natural gas is shipped to SCE’s Pebbly Beach facility on tanker trucks weekly, with shipments based on expected consumption. The SCE storage tank has a capacity to supply about two months of Avalon’s demand for gas. The gas is vaporized and distributed by pipeline through the City of Avalon and adjacent areas. SCE has accommodated development and growth in Avalon by extending the gas main pipelines and increasing gas purchases. Most gas main pipeline extensions are financed directly by SCE. Hence, gas availability and infrastructure does not impinge on Avalon’s

growth potential. The fact that gas is not available outside Avalon means that Two Harbors, the private camps and other inland areas rely on their own LPG tanks.[2]

             Southern California Edison (SCE) wants to sell its old water and gas utility in Avalon, Santa Catalina Island.  The water in the Catalina Island water system is a blended supply, with fresh groundwater sources located in the interior of the island and seawater processed by the desalination system located at the Pebbly Beach Generating Station.

            SCE is entertaining two prospective bids for the gas and water business, which Edison has valued at $35 million; one is from Corix Utilities Inc. of Richmond, Canada, a Vancouver suburb, and another comes from the consortium representing the island's 1,800 ratepayers. SCE intends to continue providing the island's electricity service.

            The bid from Corix has galvanized environmentalists, commercial fishing operations, hotel and restaurant owners, city officials, private land owners, and summer camp operators to unite under the auspices of the Catalina Island Consortium, which is composed of the Catalina Island Conservancy, the Catalina Island Chamber of Commerce & Visitors Bureau, USC, a representative of the island's youth camps, the Hamilton Cove Homeowners Association and the Santa Catalina Island Company. Edison says the utility is worth $35 million but the stakeholders think it might be worth $5 million. Corix has submitted a bid for the water and gas company and deposited $1 million in earnest money in a bank designated by Edison.

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[1] Wikipedia

[2] Ibid, p. 54.

Catalina Island Electricity

Southern California Edison (SCE) owns and operates the Pebbly Beach Generating Station, a 9 megawatt diesel-fueled electricity generating plant located in Avalon. The diesel fuel is shipped in by barge from the Port of Los Angeles.  The net book value of the Pebbly Beach Generating Station generation-related assets as of August 31, 2000, was $11.217 million.[1]    See Attachments 1 and 4 for electricity rates.  See Attachment 5 for a utility rate map.  See Attachment 6 for an explanation of baseline electricity service and an example of how to calculate electricity bills.

Pebbly Beach Generating Station

             Pebbly Beach Generation Station – Catalina Island Forecasting Method. SCE’s TY 2009 forecast for Pebbly Beach Generation Station[2] O&M expense was $5.38 million (constant 2006$). SCE decided on a forecast for labor and non-labor expenses.  SCE used 2006 recorded expenses to forecast labor and anticipated that the staffing would remain constant at 2006 levels in TY 2009.  SCE used a 3-year average of 2003-2006 expenses to forecast labor, because SCE found this method to accurately reflect current and future staffing levels. The Public Utilities Commission (PUC) reviewed SCE’s request and found SCE’s forecast methodology to be appropriate.  The PUC found SCE’s TY 2009 forecast for Pebbly Beach Generation Station O&M expense of $5.38 million reasonable.[3]

            SCE forecasts $24.085 million of capital expenditures on Pebbly Beach generating station capital projects.  SCE’s micro turbine project involves installing up to 25 micro turbines providing 60 kW to Pebbly Beach customers. These micro turbines will be located on land adjacent to the current Pebbly Beach Generating Plant. Although this land is owned by the Catalina Island Company (Island Catalina) and is being used by a tenant for a container storage facility, SCE has the right to request that Island Catalina provide the land to SCE for electric utility purposes pursuant to a memorandum agreement between SCE and Island Catalina. As a condition for use of the site, Island Catalina requires SCE to design and improve a new site. SCE has included $0.62 million in its capital expenditures for the relocation of the existing container storage facility at this site. Although SCE will not retain any assets from relocating the tenant’s containers, the cost is a necessary component of SCE’s ability to place its micro turbines on the land. The PUC recommended that this relocation cost should be capitalized as land rights as long as the land parcel is being used for utility purposes.[4]

Pebbly Beach Generating Station

             During the Record Period (January 1 through December 31, 2008), SCE purchased 57,806 barrels of diesel fuel and burned approximately 55,000 barrels of diesel for electric generation at Santa Catalina Island. The average total cost per barrel was $146.39 [annual cost of $8,051,450]. SCE purchased fuel from a major supplier, Southern Counties Oil Company (Orange, CA), under a long-term (3 year) contract. SCE states considering the contract structure, which is the lowest competitive pricing available, and the integrity of the supply, its diesel purchases should be found reasonable. SCE contracts with Catalina Freight Lines to provide the truck and barge transportation from the refinery to the generating facility. SCE indicates that the bulk wholesale rate is less than the tariff rate normally charged for deliveries to the island and should be found reasonable.  In its testimony, the DRA  generally agreed with SCE’s assertions and did not find the costs to be unreasonable. DRA also indicated that it reviewed the one forced outage during the Record Period, which lasted longer than 24 hours and did not find the outage to be unreasonable. Based on the testimonies of SCE and DRA, the California Public Utilities Commission (CPUC)  concluded that SCE’s Catalina diesel operations during the Record Period were reasonable.[5]

PEBBLY BEACH GENERATING STATION

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[1] Rocky Mountain Insurance Information Association (RMIIA).

[2] On May 10, 2007, a major fire started at Catalina Island, north of the city of Avalon near a radio transmission facility. The cause of the fire is still under investigation. Over 4,750 acres were burned and the fire destroyed much of the electrical infrastructure that delivered power from SCE’s Pebbly Beach Generating Station to Catalina’s inland communities.

[3] Application of SOUTHERN CALIFORNIA EDISON COMPANY for Authority to, Among Other Things, Increase Its Authorized Revenues For Electric Service in 2009, And to Reflect That Increase In Rates, before the PUC of the State of California, Date of Issuance March 17, 2009, p. 43.

[4] Ibid, p. 196-197.

[5] Application of Southern California Edison Company (U338E) for a Commission finding that its Procurement-Related and Other Operations for the Record Period January 1 through December 31, 2008 complied with its Adopted Procurement Plan, Application 09-04-002 (Filed April 1, 2009), p. 27-28.

Catalina Island Background Information

Catalina Island's primary industry is tourism and hosts more than 800,000 visitors each year. The island itself is 76 square miles in area, 85% of which is in a conservancy area to be maintained in its natural state in perpetuity. The picturesque and leisurely seaport village of Avalon has a permanent population of around 3,127.

Catalina Island is part of Los Angeles County. The City of Avalon's annual budget is approximately $15,000,000. Catalina Island has a resident population of 3,696—with 3,127 residing in Avalon and about 150 residents at Two Harbors and the nearby USC Marine Center.

On an average day, there are 1,100 overnight visitors in Avalon’s hotels. On a peak day, Avalon may host as many as 6,400 overnight visitors at its hotels, vacation homes, and moorings, and 2,400 day-visitors primarily from cruise ships. On a peak day, Two Harbors may host as many as 4,700 visitors at its moorings, campground, and private camps in the vicinity.  ( L.A. Times, 3/16/2010, WaterWorld, City of Avalon, Santa Catalina Island Final Municipal Service Review, Prepared by Burr Consulting, May 4, 2004.)

A New Vons Store for Avalon?

CIB supports the new Von's store.

The proposed Von's grocery store at the corner of Beacon and Sumner street will be a 20,000 square foot store, approximately 1/3 the size of their prototypical mainland stores.  It will be twice the size of the existing two facilities in Avalon.   

Von's Front View

Von's Beacon Street View

Why Beacon & Sumner?

According to the Catalina Chamber of Commerce, Vons, not the Santa Catalina Island Company, has chosen the Beacon street location for a number of business reasons:

• Price of the property:  Vons will not build a new store on property it does not own on the island.  The challenge in Avalon has always been to acquire a property that has the right financial, location and physical characteristics to facilitate the construction of a new store.
• Property availability and price:  Just about ANY property suitable for a new grocery store is going to be currently owned by the Santa Catalina Island Company.  So, the Santa Catalina Island Company would have to be willing to sell that property, at a price agreeable to Vons, for a deal to work.  The Beacon St. property is the only property that satisfies both requirements.
• Location:  Like all retail businesses in Avalon, location is everything.  And like all retail businesses in Avalon, Vons depends on island visitors to be successful - the store simply would not be feasible selling food to only islanders.  So, the Beacon St. property is as far off the main visitor area of town that Vons is willing to go.  Any farther up the canyon (like the City Hall area), the company feels would cause it to lose enough visitor business as to affect the store's profitability.  Any other retailers want to move up to City Hall or Field of Dreams?  We doubt it.
• Zoning:  The Beacon St. property is zoned "Commercial," and a grocery store is one of the permitted uses in a commercial zone.  Vons is not asking for ANY zoning variances.  Any property owner who complies with zoning ordinances and doesn't ask for variances to those ordinances should expect approval of a building application.  If City officials don't respect their own zoning ordinances, why have them at all?
• Traffic & parking: An independent traffic study, conducted by a firm selected by the City of Avalon (not Vons or the Santa Catalina Island Company) states:
  • Traffic:  "The proposed project would not result in any significant
    impacts relative to existing traffic conditions" at the intersections of Beacon and Sumner and Beacon and Catalina.  The study further states "no traffic mitigation measures are needed."
  •  Parking:  ". . . the proposed parking supply is expected to meet the needs of Vons patrons during the great majority of the time."
• There just isn't a more "perfect place" in Avalon for a new grocery store:  No matter where a new store is located, someone will complain!  The Beacon St. location will benefit residents, visitors, and Vons!

After discussing all of these issues with Vons senior management, the Board of Directors of the Catalina Island Chamber of Commerce & Visitors Bureau, Inc. voted unanimously to support the new Vons on Beacon.  The Chamber firmly believes this project is in the best interests of the Catalina Island business community, island residents and visitors.  (Catalina Island Chamber of Commerce)