EXPANSION OF BRUNSWICK COUNTYS NORTHWEST WATER TREATMENT PLANT Public Utilities Project Need Facilities Needed Rationale For Phasing Options To Delay Need For Expansion Current Status Summary Public Utilities Brunswick County is the fifth largest county in North Carolina, with 830 sq. miles. Brunswick County Public Utilities provides water throughout the county to retail and wholesale customers. For the past 10 years, Brunswick County has been one of the fastest growing counties in the nation. Ave. of 4% Growth Per Year 5,700 From Existing Systems 9,700 New Customers Retail Customer Growth Jan. 1, ,212 Jan. 1, ,437 Jan. 1, ,246 Jan. 1, ,525 Jan. 1, ,059 Jan. 1, ,481 Jan. 1, ,180 Jan. 1, ,503 Jan. 1, ,534 Jan. 1, ,668 Public Utilities Water System Master Plan Completed in 2006 Identified the Need to Expand the Northwest Water Treatment Plant from 24 mgd to 36 mgd to Meet the Potable Water Needs by 2015 Identified the Need to Increase Raw Water Transmission System to Provide Additional Raw Water Transmission Capacity Estimated Cost of Improvements Was $59 Million Public Utilities 12 mgd Expansion of Northwest Water Treatment Plant 1. Additional 4 mg Clearwell 2. New Chemical Feed System and Chemical Storage Area 3. Flash Mix Improvements 4. New High-Service Pump Station 5. Rehab of the Existing Plant Filters 6. Replacement of Existing Plate Settlers 7. Additional Tankage Including Clarifiers and Filters 8. Additional Solids Handling Facilities 9. Additional Lab, Shop, and Administrative Areas Public Utilities Uncertainty of Demand 1. Peak day to average day ratio of 2 to 1 2. Significant industrial demand (20% of average day demand and 12% of peak day demand) 3. Wholesale customer usage (40% of average day demand and 44% of peak day demand) 4. Weather 5. Conservation Efforts Public Utilities Cost estimated cost $59 million 2. Average cost per customer $2, Rate increase required to meet debt service obligations 4. Political considerations Public Utilities 2008 Decision to Construct Project in Phases 1. Conducted study to determine layout of facilities needed to expand plant treatment capacity by 12 mgd 2. Phase 1 construction to include new 4 mg clearwell, new chemical storage building, chemical feed system and associated piping 3. Phase 2 to be constructed at a later date would include high-service pump station, filter rehabilitation, new clarifiers, new filters and lab, shop, and admin expansion Public Utilities 1. Phase 1 Was Completed in Demands Had Not Met Levels Predicted in Water Master Plan So a Reevaluation of Phasing in Decision Was Made to Divide the Remaining Phase into Two Phases 4. New Phase 2 Included High-Service Pump Station, Filter Rehab and Shop, Lab and Admin Expansion 5. New Phase 3 Includes Clarifiers, Filters, Solids Handling, and Associated Piping 6. Raw Water Transmission Improvement Delayed Until Phase 3 Improvement Started Public Utilities 1. Conservation 2. Wastewater Effluent Reuse for Irrigation 3. Aquifer Storage and Recovery 4. Off-Line Raw Water Reservoir Public Utilities Current Potable Water Demand Average Day in FY mgd 45% of Capacity Peak Day in FY mgd 78% of Capacity Historical Peak Day25.98 mgd 86% of Capacity Public Utilities Factors Influencing Potable Water Demand 1. Decline in Industrial Demand (Loss of Industry) 2. Weather 3. Conservation Measures 4. Potential Loss of Largest Customer 5. Interconnection with Other Utilities Public Utilities 1. Phase 1 Completed in Phase 2 Construction Underway and Scheduled to be Completed in Raw Water Transmission Environmental Assessment Completed and FONSI Issued 4. Phase 2 of the Aquifer Storage and Recovery Project Underway 5. Raw Water Reservoir Feasibility Study Completed 6. Design of Raw Water Transmission Main Expansion and Phase 3 of the Northwest Water Treatment Plant Now Scheduled for Projected Cost Per Customer Now $1,656 Public Utilities 1. A number of factors should be considered when deciding when to build needed infrastructure. 2. In areas with rapid customer growth, delaying the construction reduces the cost per customer and may eliminate the need for rate increases. 3. Timing is critical as you should not build the facilities before there is a need and you cannot wait until the plant capacity is exceeded. Public Utilities