Construction continues on a new $35.5 million plant, capable of processing 2 million gallons daily. Photo courtesy of PCWA 

AUBURN, CA (MPG) - At its Nov. 20 meeting, the Placer County Water Agency (PCWA) Board of Directors approved a $402.9 million budget for 2026, including funding for major water treatment plant upgrades and renewal projects throughout the county. Of the total budget, $303.1 million – about 75% – is dedicated to the capital improvement plan.

Water treatment plants, serving communities from Colfax to Rocklin, anchor the spending plan. Placer County Water Agency's water division is also continuing to improve aging infrastructure through its renewal and replacement efforts.

2026 Project Highlights

Ophir Water Treatment Plant – Phase 1 Construction. Placer County Water Agency's first new water treatment plant built to expand system capacity in more than a decade, this $227 million investment funds Phase 1 construction. The project includes building a new facility on Ophir Road with an initial treated water capacity of 10 million gallons per day (MGD), designed for future expansion up to 30 MGD. 

 Rendering of the Ophir Water Treatment Plan. Photo courtesy of PCWA 

Colfax Water Treatment Plant Replacement: Construction continues on a new $35.5 million plant, capable of processing 2 million gallons daily. The existing plant, purchased by PCWA from PG&E in 1982, is nearing the end of its operational life. The new plant, currently under construction and partially funded by prior years’ budgets, is designed with additional capacity to accommodate smaller water purveyors, including the Shady Glen community and potential future consolidation efforts, extending service to Heather Glen, Weimar and Applegate.

Foothill Water Treatment Plant Rehabilitation. Phased over six years, this $29 million project includes rehabilitating or replacing critical infrastructure, including piping and major mechanical and electrical equipment. Among the items to be tackled in 2026 with the initial funding of $5.2 million are the replacement of various piping, pumps, and storage tanks related to various chemical feed systems at the plant.

These treatment plant projects will strengthen regional supply reliability across multiple service areas.

Fulweiler Avenue to Garfield Street Main Replacement. This $2.5 million project replaces aging pipes through the busy intersection of Highway 49 at Fulweiler Avenue in Auburn with new encased pipe and upgrades approximately 880 linear feet of pipeline from Elm to Garfield streets.

Budget Highlights

Total operating costs, including the Water and Power divisions as well as Agency-wide expenditures, are expected to increase by $6.2 million, or 7% to $99.8 million.

PCWA’s Water Division manages more than 650 miles of pipeline plus 170 miles of canals, nine water treatment plants, and 31 storage tanks with an operating budget of $57.1 million and capital projects funded by rates totaling $19.2 million.

PCWA’s Power Division will also be very busy in 2026 with $46 million in planned capital improvement projects. These include $29.4 million for upgrade and renewal, replacement and reliability projects, and $8.5 million for overhead power line replacements.

 Under its license with the Federal Energy Regulatory Commission (FERC), PCWA operates the Middle Fork American River Project. Besides producing hydroelectric power and storing water for thousands of homes, the project includes major recreation areas. The 2026 budget allocates $16.6 million in capital improvements required under PCWA’s FERC license. Of that amount, $8 million will go towards projects at Hell Hole Reservoir, including several recreation-related upgrades.

Water Revenue Adjustment

In 2022, the PCWA Board of Directors adopted a five-year revenue adjustment for 2023-2028; each year’s approved rate increase may be implemented as supported by the cost of services. For 2026, the increase of 7% will generate an estimated $5 million in additional revenue. For the average residential customer, this translates to an additional $5.95 per month for 15 units of water. The approved 2026 budget will be available on the Agency’s website at pcwa.net.

About PCWA

Placer County Water Agency (PCWA) is the primary water resource agency for Placer County, California, with a broad range of responsibilities including water resource planning and management, retail and wholesale supply of drinking water and irrigation water, and production of hydroelectric energy.