STATE TO GET THIRSTIER JAN. 1 AS FEDS REDUCE WATER SUPPLY.

Byline: Bill Hillburg Washington Bureau

WASHINGTON - Thirsty Southern California will become considerably drier on New Year's Day, when federal officials are scheduled to cut the region's water supply from the Colorado River by 800,000 acre feet.

While local and regional water suppliers say they have adequate reserves and that consumers won't see any impact at the tap or in their wallets for at least two years, they warn that the latest showdown in a long battle over water could eventually stunt economic growth and investment, alter lifestyles and spur hikes of as much as $10 a month in utility bills.

``The era of limits is upon us,'' Interior Secretary and designated federal ``river master'' Gale Norton told a Dec. 16 meeting of Colorado River water users in Las Vegas.

Citing California's failure to live up to the terms of a 1929 sharing compact with six other states or to develop a conservation plan mandated in 1996, she announced that she would cut the state's river take from 5.2 million to 4.4 million acre feet per year as of Jan. 1.

An acre-foot of water, equivalent to 325,851 gallons and enough to cover an acre of land to a depth of one foot, can meet the needs of a household of four persons for one year.

Farmers in the Imperial, Coachella and Palo Verde valleys have first claim on the vast majority of the state's Colorado River water, meaning that urban customers are most likely to feel the effects of the cutback. And, even if a new deal can be struck to restore the region's Colorado River supply to the current 5.2 million acre feet, the state still faces a permanent cut to 4.4 million acre feet in 2015.

``Customers will not see any impact for at least two years and maybe longer, if we get a lot of rain and snow,'' said Adan Ortega, vice president of external affairs for the Metropolitan Water District of Southern California. ``But, down the road, it could have a very negative impact on growth and investment in the region.''

The MWD has been importing Colorado River water to the region via an aqueduct since 1941. It currently supplies 1.7 billion gallons of water a day to 17 million people in 145 cities and 94 unincorporated areas, from Ventura County to the Inland Empire.

Ortega noted that, under two state laws enacted this year, developers of housing projects with 500 or more units must furnish proof their developments will have a reliable source of water for 20 years. Urban redevelopment housing projects are exempt, meaning the laws will have their greatest impact on growing areas like Ventura County, the Santa Clarita and Antelope valleys and the Inland Empire.

``We're not really concerned right now,'' said Jerry Gewe, assistant general manager for water at the Los Angeles Department of Water and Power, which gets 35 percent of its supply from MWD's river source. ``But, long term, we're talking big dollars for water.''

Gewe said the LADWP is already working on alternative sources, but the costs to consumers could be steep compared with water from the Colorado River. He said the average cost of buying, transporting and treating MWD-supplied water is $450 per acre foot. A like amount of recycled water would cost up to $800, while desalinated water could run up to $1,000.

``This is not a crisis; urban Southern California has been preparing for this day,'' said Kevin Wattier, general manager of the Long Beach Water Department. He noted that his agency, which gets 50 percent of its supply from the MWD, has reacted to the looming cutback by increasing conservation efforts and storage capacity, as well as using new technologies such as wastewater recycling and desalination of ocean water.

Wattier and other water officials said the region has made remarkable progress in water conservation in recent decades, but the effectiveness of those measures may be peaking. For example, water consumption in Los Angeles has risen by only 10 percent since 1982 while the population has increased by 27 percent.

``We've replaced more than 1 million toilets with low-flow models,'' said Gewe, ``but you probably can't duplicate a measure like that.'' He said LADWP and other agencies are now concentrating on efficiencies in landscape irrigation, which can account for up to 65 percent of a household's water consumption.

The state nearly had a complicated pact in place in October following negotiations led by former Assembly Speaker Robert Hertzberg, D-Van Nuys. It all hinged on agreement by officials in Imperial County, the region's largest user of river water.

But officials of the Imperial Irrigation District rejected the pact early this month, triggering the declaration by the Interior Secretary to tighten the tap on California.

``It's a simple problem,'' said Hertzberg, now an attorney in private practice. ``Other states grew and need more water, and drought has cut the river's flow to the lowest in recorded history.''

Noting that a number of key water-use issues had been worked out, Hertzberg expressed confidence that a deal with Imperial Valley interests could still be reached.

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THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA