FY11 TOTAL WATER MANAGEMENT PLAN UPDATE

As a result of the continuing impact of the economic downturn, including significant reductions in JEA’s budget, it was decided that Water Sewer System Planning (WSSP) would not prepare a FY11 Total Water Management Plan (TWMP). Instead, WSSP continued implementation of the FY07 TWMP recommendations along with recommendations made in the FY08, FY09 and FY10 TWMP Updates. In FY11, the TWMP team reviewed and updated the TWMP recommendations, updated the monthly metrics, addressed the needs of the Consumptive Use Permit (CUP), updated the Water Quality Prediction Team (WQPT) Report, and continued to study Alternative Water Supply (AWS). The following summarizes the team’s efforts:

A. Previous Recommendations B. WQPT C. CUP D. CUP Tracking and Predicting Tool E. AWS F. Updated Monthly Metrics G. New Recommendations H. 2012 TWMP

A. Previous Recommendations 1) - Continue with the recommendations in the FY07 TWMP and updates for

FY08, FY09 and FY10. These recommendations include:

Measured Conservation Effort – Up to 10% reduction over FY07 demands by 2013. While it appears that JEA is on track with the initial goal for gross per capita demand (shown as a red dotted line in the graph below), the CUP goals for gross and residential (shown as dashed lines) are likely to require additional effort. There are a variety of factors including; rainfall, the economy, irrigation regulations, rates, etc. that influence customer water usage.

It is still recommended that a long term sustainable conservation plan be developed and implemented through JEA’s Demand Side Management (DSM) group to hit annual targets.

The following graph tracks conservation in gallons per capita day (gpcd) through May 2011.

The TWMP team believes that conservation is considered to be one of the lowest cost water supply options for JEA. Unfortunately, unlike retail reclaimed water there is a loss of revenue associated with conservation.

a) Aggressive Reclaimed Water Program – In particular, potable water offset WSSP has been tracking potable water offset reclaimed water in the Southeast Region since it has a positive impact on water quality in JEA’s service territory by substituting aquifer demands. JEA is currently averaging approximately 12.9 MGD of reclaimed water use. The Southeast Region is seeing approximately 2.2 MGD in potable water offsets. Potable water offsets occur when JEA water demands are met with reclaimed water. For example, residential and commercial customers that would have used JEA water now use JEA reclaimed water instead and are therefore considered to be a potable water offset.

The following graph shows the reclaimed water use (potable offset) in the Southeast Region compared to the TWMP and CUP goal lines. Potable offset reclaimed water is an important component in JEA’s CUP.

Another measure (not shown here) is “aquifer offset” where reclaimed water replaces private aquifer withdrawals. For example, a golf course that would have used a Floridan well for irrigation would now use JEA reclaimed water thereby providing an “aquifer offset”. Currently there is no mechanism to convert “aquifer offsets” to credits for JEA’s CUP. Hopefully, legislation will allow these types of credits in the future.

b) North to South Grid Supply

In order to reduce water withdrawal from the aquifer in the South Grid, JEA is upgrading its river crossings in order to move more water from the North to the South Grid. The existing 30” river crossing is currently averaging over 4 MGD.

By replacing the Orange Street 3 MG reservoir, JEA will be able to transfer an additional 12 MGD through the second river crossing planned for completion by 2013. This second river crossing is necessary in order for JEA to meet the conditions in its CUP which requires reduced pumping of wells in the Southeastern Region. The 2013 goal of approximately 16 MGD of water transferred across both river crossings may be dependent upon the completion of the Orange Street and River Oaks reservoirs, Arlington pumping improvements, and Main Street well field improvements. In addition to these improvements, large diameter transmission projects to further optimize the existing river crossing (shown below) are also required. The total cost of all these improvements is approximately $52M.

The following graph shows the quantity of water that has moved through the existing River Crossing from the North to South Grid as compared to the goal line. The graph also shows the additional capacity provided by optimizing the first River Crossing and constructing a second River Crossing in conjunction with corresponding system improvements.

The Water Quality Prediction Team (WQPT) was formed in FY10 to estimate the impact of the improvements discussed above on the water quality in the South Grid. A report was produced in FY10 and another in FY11 addressing South Grid water quality.

2) Work with SJRWMD in resolving the latest aquifer modeling issue.

JEA has teamed up with other utilities to form the North Florida Utility Coordinating Group (NFUCG) in order to work with St Johns River Water Management District to validate and correct the Districts Northeast Florida (NEF) model. This work is ongoing.

3) Develop and Implement an Unaccounted for Water Reduction Plan.

In 2008, an Unaccounted for Water Phase 2 project was initiated. This Black Belt project is still underway. In late 2010, JEA was awarded matching conservation grant money from the SJRWMD for a 2 part project. The first part is a utility side residential water loss reduction study. The second part is a residential potable water use reduction study. The intent of the project is to determine cost effective methods for conserving water through a reduction in leaks within residential communities in JEA’s service territory. The project was expected to begin in 2011, however, the funding offer was withdrawn by the District and the project has not gone forward.

The TWMP Team recommends not only reducing unaccounted for water but also in reducing all unbilled water. As of yet no action in defining this work effort has been developed within JEA.

4) Further evaluate northwest region indirect reuse plan to inject drinking water

quality water from the Southwest and Buckman WRF’s into the Fernandina Zone to accommodate North to South Grid transfers of potable water while simultaneously mitigating surficial aquifer declines in JEA’s recharge area southwest of JEA’s service territory.

In FY09 JEA’s consultant modeled the impacts of aquifer recharge versus brackish water withdrawals for desalination. The most favorable was the aquifer recharge alternative water supply since the model indicated nearly a 1 for 1 response as far away as the Keystone Heights recharge area. In the model, highly treated reclaimed water was injected into the Fernandina Aquifer. This had a positive impact on the potentiometric surface of the Floridan Aquifer. This option was delineated in an AWS project proposal to be included in the SJRWMD’s 2010 District Water Supply Plan (DWSP). Further evaluation of this AWS option was discussed in the 2011 AWS Study.

5) Further evaluate desalination plant to treat brackish groundwater as a drinking

water supply alternative. The TWMP team initiated an aquifer modeling effort in FY09 with JEA’s consultant to model the impacts of aquifer recharge versus brackish water withdrawals for desalination. Although the results were not as favorable as the aquifer recharge alternative, there appeared to be some positive impacts at the Floridan potentiometric surface locally. This option was delineated in an AWS project proposal to be included as conceptual in the SJRWMD’s 2010 District Water Supply Plan (DWSP). Further evaluation of this AWS option was discussed in the 2011 AWS Study.

6) Further evaluate option to augment the reclaimed water system with shallow

wells adjacent to stormwater ponds.

This has not been further evaluated; however, it may be revisited in the future.

7) Immediately update all monitoring wells to MSL & NGVD readings and capture data electronically.

Completed. The WQPT identified the desirability to determine NGVD readings for the top of casing of production wells. To ensure accuracy of the data it is recommended that the data capture equipment be checked and calibrated if needed on a frequent basis (i.e. monthly).

8) Begin to proactively compare the aquifer model with field data.

Representative wells on the South Grid are being used to monitor the aquifer level on an annual basis. Due to limited availability of data, this evaluation will occur on an annual basis versus monthly as originally recommended. This work will continue.

9) Begin weather correcting data for analysis. There is a strong correlation between rainfall and water use patterns. Weather correction will help in interpreting data and forecasting.

Completed. This is monitored on a monthly basis relative to our water use goals.

10) Consider a drought rate structure to ensure that JEA’s operating expenses are met during droughts when it is also likely that irrigation is more tightly restricted.

A comprehensive rate increase was approved by the JEA Board in FY09 for implementation in FY10 through FY13.

11) Consider a wet year rate structure to ensure that JEA’s operating expenses are met during higher than average wet years when it is likely that irrigation is substantially reduced as it was in FY08.

A comprehensive rate increase was approved by the JEA Board in FY09 for implementation in FY10 through FY13.

12) Consider a rate structure to ensure that JEA’s operating expenses are met when JEA meets its conservation goal of up to 10% reduction in per capita demand by 2013.

A comprehensive rate increase was approved by the JEA Board in FY09 for implementation in FY10 through FY13.

13) Continue reviewing reclaimed water options in the Northwestern region as a joint project with CCUA and the SJRWMD (West River Initiative).

The West River Initiative continues to be a consideration in the list of potential reclaimed water alternatives. There is hesitancy in committing to long term exportation of reclaimed water from JEA’s service territory since it may be a vital resource for JEA’s customers in the future. Short term redirecting of wastewater to Clay County to augment their reclaimed water needs was explored. In FY09, CCUA declined interest in funding this effort. In FY11, CCUA was asked if they had any interest in JEA providing reclaimed water to them and they were not.

14) Recommend DSM Team analyze water demand and track by region (southeast and northwest) and combined.

This was not further evaluated in 2009. A review of potential DSM measures was conducted in FY10 with the goal of identifying measures to implement or initiate a pilot program, pending the SJRWMD completing the DWSP and CUP approval. In FY11 JEA received its CUP and so this analysis may have merit going forward. This analysis would be completed by the DSM group.

15) Recommend least expensive method of reaching conservation goal which may be working with the City of Jacksonville on the irrigation ordinance enforcement

This was not further evaluated in 2009. A review of potential DSM measures was conducted in FY10 with the goal of identifying measures to implement or initiate a pilot program, pending the SJRWMD completing the DWSP and CUP approval. This work would be completed by the DSM group.

16) Ensure that potable offset reclaimed irrigation does not get counted toward the conservation goal since it is a separate goal.

The impact of potable offset reclaimed irrigation on the gross water consumption rate to date has been negligible. Nevertheless, it is recommended that, beginning next fiscal year, potable offset reclaimed water use be added to production for each grid as applicable to evaluate the level of conservation.

This has not yet been done.

17) Pursue CUP credits for reclaimed water aquifer offset projects.

This effort is underway as part of CUP compliance. Although a 1 for 1 credit may not be possible it is realistic to believe that by providing reclaimed water to a Floridan Aquifer customer provides an offset that should be available to the provider as long as the sustainable aquifer limit has not been reached. JEA is participating in a state wide committee that is exploring legislation for ensuring this credit in groundwater allocation. SJRWMD expressed a willingness to evaluate an internal mechanism for this purpose

This legislation has not yet been passed.

18) Begin planning for potential impacts from seawater rise which may create upward pressure of the saline layer on the Floridan freshwater layer in the southeast region.

This effort is currently on hold as additional information develops.

19) Evaluate Peer Review comments from the FY08 effort and those not yet evaluated from FY07 TWMP.

This effort was completed in FY09. The TWMP team reviewed and discussed each of the comments and there are no additional recommendations or actions required at this time.

20) Prepare a FY2009 TWMP

It was decided not to do a FY09 TWMP. Additional review in FY10 determined that a FY10 TWMP was not required at this time. Potential AWS projects were reevaluated and submitted as appropriate for inclusion in the SJRWMD’s DWSP. Again in 2011, the team opted to not complete a TWMP.

21) Develop and implement a sustainable conservation program. See comments under number 1,14 and 15 above. The DSM group will be responsible for meeting conservation targets necessary to comply with the CUP.

22) The unaccounted for water project should include leak detection efforts to look for large leaks that are cost effective to correct. See comments under number 3 above.

23) Further evaluate AWS and recommend piloting at least one AWS alternative. In 2010 potential AWS projects were reevaluated and submitted as appropriate for inclusion in the SJRWMD’s DWSP. In 2010 and 2011 JEA continued to evaluate AWS. Nothing has been selected for pilot testing at this time.

24) Use representative observation wells on the South Grid to monitor the aquifer level on a monthly basis. See comments under number 8 above.

25) Continue development of the algorithm to estimate conservation. Completed in 2010 and maintained monthly through 2011.

26) Continue to compare estimated current and potential future conservation levels during forecast development and ensure the reclaimed goal is not double counted in the conservation goal metrics. Conservation is calculated by subtracting the potable water used, the unbilled water, and the potable offset reclaimed water used from the total water demand forecast. This calculation keeps them separate; however, there still tends to be some double counting since reclaimed water use reduces potable water use which then gets used as historical data for future demand forecasting. Being cognizant of this issue may lead to a better assessment of conservation levels attained going forward.

27) Continue to request CUP credit wherever JEA has provided an aquifer offset via reclaimed water service. Similar to 17. JEA may be able to get retroactive CUP credit for aquifer offsets in the future.

28) It is recommended that a WQPT be formed to estimate the impact of the improvements discussed above on the water quality in the South Grid. The WQPT was formed in FY10 and prepared reports for FY11 and FY12.

29) Beginning in FY11, add potable offset reclaimed water use to production for each grid as applicable to evaluate the level of conservation. Currently the only potable water offset is in the South Grid.

30) It is recommended that the WQPT continue its efforts to estimate the impact of recommended improvements on identified wells of concern (WOC). The cross-functional team members should have this effort established as a priority task by each of the functional areas. The work of the WQPT is ongoing and has prepared reports for FY11 and FY12.

31) Review and expand on the recommendations made in the AWS study. The results of the AWS study will be used as inputs in the 2012 Integrated Water Resource Plan (IWRP).

32) In FY11, continue to reassess AWS to address limitations in Floridan groundwater. In FY11 an AWS report was prepared. See E. below.

B. WQPT

The WQPT was formed in 2010, made up of a team consisting of members representing Planning, Environmental and Operations and Maintenance, in an effort to establish methods and strategies to predict the trends of water quality, specifically chlorides, in WOC. By being able to predict the trend of water quality in a given well, JEA can better optimize the use of wells within a given wellfield. The intent of the 2010 effort was to predict water quality once the River Crossing transmission improvements were in place and operational, which allow for a reduction in pumpage of the WOC, in addition to other South Grid wells. Unfortunately, due to the complexity of the hydrogeology in the region and operational issues, the ability to predict trends in the WOC was not possible during the 2010 effort. In 2011, the WQPT continued efforts to understand how pumpage impacts water quality at the WOC. A document was prepared in June 2011 with recommendations including specific recommendations for the WOC.

C. CUP

In 2011, JEA received a 20 year consolidated CUP from the SJRWMD. The CUP holds JEA to annual allocations by wellfield thru 2031, and requires conservation and reclaimed water (potable offset) in order to comply. The CUP limits JEA to 155 MGD of Floridan Aquifer demands in 2031. CUP compliance will be a major input into the 2012 Integrated Water Resource Plan (IWRP).

The CUP document and its 42 conditions are available separately.

D. CUP Tracking and Prediction Tool

In 2011, WSSP developed, under the review of the TWMP team, a tool to help track historical data relative to the CUP and make predictions concerning future compliance. The tool forecasts compliance risk 36 months in advance and helps to identify deficiencies. The tool does not look at wellfield allocations but instead looks at the total amount of water used/needed. The primary inputs that can change over time in order to comply with the CUP include:

Conservation Potable Offset Reclaimed Water Unbilled Water

The tool is currently under review and is expected to be modified and in use by 2012.

E. AWS

In 2011, a consultant Camp Dresser and McKee (CDM) was hired to do a AWS Study. The project evaluates AWS for 5, 15, and 30 mgd increments of supply. A subset of JEA’s TWMP team attended a kickoff meeting and a workshop with CDM to evaluate options. Team members are currently in the process of commenting on the draft study.

At the time of this update the AWS project was nearing completion. The AWS Study will be available separately.

F. Updated Monthly Metrics After the CUP was received in May 2011, the monthly metrics were adjusted to begin tracking data relative to CUP goals. Previously, the metrics were tracked relative to the 2007 TWMP goal. The following graphs are useful for tracking water production including total, Southeast Region, and River Crossing:

The following graphs are useful for tracking Conservation:

The following graphs are useful for tracking reclaimed water including total, potable offsets, and aquifer offsets:

The following graphs are useful for tracking Floridan Aquifer Levels:

The following graph is useful in tracking Unbilled Water:

G. New Recommendations

1. Complete a more comprehensive effort in 2012. See H. below.

2. Complete the CUP Tracking and Prediction Tool and implement monthly.

3. Establish a single contact responsibility for achieving Reclaimed Water targets within JEA.

4. Establish a single contact responsibility for achieving Unbilled Water targets within JEA.

5. Continue tracking metrics monthly.

6. Implement recommendations in the 2011 WQPT Report.

7. Update the WQPT Report in 2012.

H. 2012 Integrated Water Resource Plan (IWRP) The 2012 effort is envisioned to be more comprehensive than the last 5 years. It is likely to resemble IRP efforts from the JEA Electric Planning group. While the scope has not yet been developed the draft outline for the report has:

Executive Summary Description of Existing System

o Characterization and Summary of Existing Systems Water Wastewater Reclaimed Water

o Water Conservation (Demand-Side Management) o Unbilled Water

Potential Impact of Environmental Regulations o Water

Consumptive Use Permit (CUP) Potential Priority Water Resource Caution Area (PWRCA) Minimum Flows and Levels (MFLs)

o Wastewater Total Maximum Daily Loads (TMDL) Numeric Nutrient Criteria (NNC)

o Reclaimed Water Demand Forecast

o Methodology and Results o Overall Demand Forecast

Consideration of low, medium, and high growth Consideration of Potential Additional Environmental Regulations

o Aquifer Supply Forecast Consideration of Conservation Consideration of Reclaimed Water (Potable Offset) Consideration of Unbilled Water Consideration of Alternative Water Supply Consideration of Potential Additional Environmental Regulations

Water Reliability Criteria and Need for Capacity o Projected Reliability Criteria o Projected Need for Capacity

Reclaimed Water Reliability Criteria and Need for Capacity o Projected Reliability Criteria o Projected Need for Capacity

Alternative Water Supply o Projected Reliability Criteria o Projected Need for Capacity

Economic Parameters o Interest Rates, Cost of Capital, Discount Rates, Fixed Charge Rates

Future System Options o Site-Specific Alternatives (project and location specific) o Generic Alternatives o Capital Cost, Performance, and O&M Estimates

Supply-Side Screening o Methodology o Levelized Cost of Screening

o Results of Screening Analysis Economic Modeling of Expansion Plans

o Methodology o Reference Case Analysis o Sensitivity Analyses o Analysis of Results

Risk Analysis o Qualitative Risk Discussion o Quantitative Analysis

Floridan Aquifer Supply Reclaimed Water Conservation Unbilled Water Alternative Water Supply

Conclusions Recommendations - include 20 year recommendations for Reclaimed Water

potable offset, Conservation, Unbilled Water, and Alternative Water Supply for the following:

o Low Growth Forecast Recommendation – Cost and Schedule o Low Growth Forecast Recommendation with adverse regulatory impact –

Cost and Schedule o Baseline Growth Forecast Recommendation – Cost and Schedule o Baseline Growth Forecast Recommendation with adverse regulatory

impact – Cost and Schedule o High Growth Forecast Recommendation – Cost and Schedule

High Growth Forecast Recommendation with adverse regulatory impact – Cost and Schedule