naruc summer committee meetings committee on water water supply planning: east, west, north and...
TRANSCRIPT
NARUC Summer Committee Meetings
Committee on Water
Water Supply Planning: East, West, North and South
July 17,2007
United Water at a Glance
• 135 years in the US water market Headquarters in New Jersey
• Key Highlights
Revenues $535M Total assets $3.1B 2,200 employees Active in 20 States 7.65 Million people served
• Two Business Segments:
Regulated and Contract Services
26 Regulated utilities 150 O&M contracts
Large Regulated Water Utility base in Northeast US
$800M in Planned Capital Investment over next 5 years
Water Supply Planning
• Master Plans for each water supply system 20 year plans updated every 5 years
• Competing priorities everywhere Asset Management Approach 5-year capital plan updated every year
• Drivers affecting water supply planning Population Growth
> Development within franchise area> Private well failures
Wholesale Customer Growth> Neighboring municipal systems> Small system consolidation
Source Water Quality/New Regulations> Loss of supply source> Treatment improvements needed
Reliability to meet Peak Demands> Safe yield> Source reliability
United Water Examples
• Three Large Utilities surrounding NYC 1.2M population served
• Large Water Supply Projects $250M Investment
• Westchester County, NY United Water New Rochelle
• Rockland County, NY United Water New York
• Bergen/Hudson Counties, NJ United Water New Jersey
• Other “northern” systems Pennsylvania Delaware Connecticut Rhode Island
New York – Westchester County
• System Wholesale purchase of water from NYC Aqueducts from Catskill Watershed Connections to Croton and Catskill Aqueducts Croton supply did not get a filtration waiver NYC building filtration plant in NYC
• $50M Water supply project being delivered Initial planning 15 years ago Loss of supply – Treatment or alternate source needed New source selected – Delaware Aqueduct Project includes;
> New 43 MGD Pump Station> Connection to Aqueduct> Transmission Main> Related system improvements
• Water Supply Project Surcharge granted by PSC Investment surcharge every six months
• Future Needs Supply reinforcements
New York – Rockland County
• Water Supply is main priority for this utility
Population growth and peak demands Surface and ground supplies – fully
utilized (?) Political framework – water use limitations Commitment to deliver based on 2006
Rate Case
• Short Term Water Supply Program 5 year plan to maximize current supplies $15-20M Investment Water Supply Surcharge
• Long Term Water Supply Project Initial planning >20 years ago New Source of Supply $80M Investment In-Service 2015 Water Supply Surcharge
New Jersey – Bergen, Hudson Counties
• Large System (800k served)
• One source of supply – surface water
200 MGD Plant
• Source Water Issues Partnership with public water utility River augmentation Deteriorated quality
• Aged Infrastructure
• $105M investment to upgrade plant Improve reliability Improve water quality
• Future Needs Additional Water Supply/Treatment System reinforcements
Water Supply Challenges/Opportunities
• Water supply projects have long timelines Extensive governmental approvals needed Political resistance can exist
• Water supply projects are expensive High relative cost per unit volume Future expansion projects are a bargain Special project surcharges reduce capitalized interest
• Non-Revenue Water Leakage is clearly an issue Longer term opportunity
• Conservation/Peak Usage Water is relatively cheap Political resistance to control use Variable rate structures have been successful
• Water is state owned Sharing across borders is near impossible Opportunity exists/Political leadership needed
NARUC Summer Committee Meetings
Committee on Water
Water Supply Planning: East, West, North and South
July 17,2007