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Water is Life: Upgrading Our Infrastructure to Serve You Better.

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Presentation on theme: "Water is Life: Upgrading Our Infrastructure to Serve You Better."— Presentation transcript:

1 Water is Life: Upgrading Our Infrastructure to Serve You Better

2 Rock Creek Sewer Separation ProjectAging Sewer Line Repairs 2

3 Replacing a 15 ton, 70 year old, large diameter valve at Bryant Street Pumping Station. 3

4 Water main repairs and valve replacements 4

5 DC Water—Providing Essential Services 24 Hours a Day Potomac River Water treatment provided by the Washington Aqueduct Distribution System Blue Plains Regional Advanced Wastewater Treatment Plant Wastewater Collection System 5

6 DC WATER KEY FACTS Service area covers more than 725 square miles Services Provided Provides retail water and wastewater services to approximately: –600,000 residents in the District of Columbia, 16.6 million annual visitors and 700,000 employees working in the District of Columbia Provides wholesale wastewater conveyance and treatment services to approximately: –1.6 million people in Prince George’s and Montgomery Counties in Maryland and Fairfax and Loudoun Counties in Virginia Wastewater is collected by sewer system from Maryland and Virginia suburbs and delivered to the plant (operates the largest advanced wastewater treatment plant in the world) –Agency operates approximately 1,800 miles of sanitary and combined sewers, 22 flow metering stations, nine off site wastewater pumping stations and 16 stormwater pumping stations –Capacity to treat average of 370 million gallons per day (MGD) of wastewater, with complete treatment peak flow of 740 MGD and excess flow of 336 MGD, peak wet-weather capacity to treat 1,076 billion gallons per day and generates over 1,200 wet tons of biosolids per day Water is purchased from the Washington Aqueduct Division of the US Army Corps of Engineers –Agency operates 1,350 miles of water pipes, four pumping stations, five reservoirs, three elevated water storage tanks, 36,000 valves and more than 9,100 public fire hydrants 6 Background and Key Facts

7 7 FY 2011 & FY 2012 Budgets BUDGET SUMMARY To balance our operating and financial needs with the financial impact upon our customers, the Board undertook an intense review of the budget proposals which resulted in decreases from initial budget estimates

8 FY 2011 & FY 2012 Budgets ANNUAL OPERATING EXPENDITURE BUDGETS BY CATEGORY FY 2011* - $403,382 ($ in 000’s) FY $422,357 ($ in 000’s) The operating budgets provide the resources necessary to continue the stewardship of a multi- billion dollar water treatment & distribution and sewage collection & treatment system 8 * In February 2011, the Board adopted a $4.7 million reduction from the Approved budget of February 2010.

9 9 FY 2011 & FY 2012 Budgets FY 2012 BUDGET DRIVERS AND DISCRETIONARY EXPENDITURES FY 2012 Budget Drivers FY 2012 Discretionary Expenditures ($ in 000’s) Net increase of $19.0 million between the FY 2011 Revised and FY 2012 Approved budgets Less than 9% of the operating budget are discretionary Discretionary items inclusive of new positions ~8.4% Non-discretionary items include costs for chemicals, utilities, biosolids, water purchases and 55% of contractual services Discretionary items comprise of the remaining contractual services, supplies and small equipment

10 Sources of Funds ($ in Millions) Uses of Funds ($ in Millions) FY 2011 & FY 2012 Budgets 10 TEN YEAR $3.8 BILLION CAPITAL IMPROVEMENT PROGRAM Only 63% of CIP is financed through debt

11 11 MAJOR PROJECTS IN PROGRESS Clean Rivers Projects (Long-Term Control Plan ) - $2.6B Construction underway on site preparation for Blue Plains tunnel access shaft Selection of design-builder for Blue Plains tunnel underway Project remains on schedule and within budget Enhanced Nutrient Removal (ENR) - $1.0B Design of facilities needed to comply with permit conditions nearing completion Construction procurement complete on first of two major contracts Project remains on schedule and within budget Biosolids Program (Digester /Thermal Hydrolysis) - $0.4B This program consists of four main components: Site preparation, Main Process Train, Combined Heat and Power (CHP) and Final Dewatering Design of the site preparation requirements is complete, with contractor selection completed in FY 2010 Selection of a design builder for the Main Process Train is in the final stages RFP for design-build operator for CHP scheduled for late March 2011 Project remains on schedule and within budget Water and Sewer Infrastructure Upgrades Includes new water and sewer service line restoration program to ensure 1% replacement annually FY 2011 & FY 2012 Budgets

12 ANNUAL OPERATING REVENUE BUDGETS BY CUSTOMER FY $399,108 ($ in 000’s) FY $412,221 ($ in 000’s) To provide continuous delivery of water and wastewater services, DC Water must receive revenues to cover O&M costs, debt service and other liquidity requirements 12 Rates and Affordability

13 DC Water Actual and Projected Retail Rate and Fee Adjustments FY 2010 – FY 2012 Units Actual FY 2010 Actual FY 2011 Proposed FY 2012 DC Water Retail Rates WaterCcf2.51$ 3.10$ 3.29$ DC Water Retail Rates SewerCcf3.61$ 3.79$ 4.01$ DC Water Clean Rivers IACERU2.20$ 3.45$ 6.87$ DC Water Customer Metering Fee2.01$ 3.86$ $ District of Columbia PILOTCcf0.43$ 0.49$ 0.53$ District of Columbia Right of Way FeeCcf0.14$ $ 0.15$ District of Columbia Stormwater FeeERU2.57$ 2.67$ $ * 1 Ccf = 748 gallons The following rate adjustments have been proposed for FY 2012 (which begins October 2011) 13

14 14 10-Year Retail Rate Projections  Proposed IAC monthly rate increases ranging from $6.87 to $29.76 per ERU Annual revenues ranging from $12.4 million to $133.8 million Impervious Area Charge (IAC)  The amended proposed FY 2012 water & sewer rates will allow a decrease of the rate adjustment by $0.07 per Ccf in FY 2012 Combined Water and Sewer rate would reduce from $7.37 per Ccf to $7.30 {$9.75 per 1,000 gallons}  Rate increase ranging from 3.5% to 12.5%  Proposed PILOT increase of $0.04 per Ccf {$0.05 per 1,000 gallons}  Proposed ROW increase of $0.01 per Ccf {$0.01 per 1,000 gallons} Water & Sewer Rates

15 DC Water Retail Rates Compared to Other Large Cities (1)Assumes average residential consumption of 6.69 Ccf, or 5,004 gallons, per month. Ccf = hundred cubic feet, or 748 gallons (2)Reflects DC Water current rates and fees for FY The green area indicates the pass-through of the District’s Right of Way (ROW) and Payment in Lieu of Taxes (PILOT) fees, totaling $4.22 per month and the DDOE residential stormwater rate of $2.67 per month. 15

16 16 DC Water Retail Rates Compared to Other CSO Communities

17 17 DC Water Retail Rates Compared to Other Region Utilities

18 FY 2007 – 2010 Non-Residential Average and Median Usage 18

19 Non-Residential ERU Billed Summary (Period: to ) 19

20 The Rate-Making Process Annual, detailed review of the capital (construction) and operating budgets to determine funding needs and revenue projections The District members of the Board receive a staff recommendation for rate adjustment based on revenue requirements The Board (DC members) proposes new rates—January/February Public comment period: March–May – Rates posted in DC Register—February – Public meetings held—March–April – Public hearing held—May 11th Board determines and approves rates—July Rates become effective—October 20

21 Public Hearing Coming Up! Contact DC Water with your comments Public Hearing Wednesday, May 11, 2011, 6:30 p.m. Metropolitan Washington Council of Governments 777 North Capitol Street, NE Fax: (202) Mail to: Board Secretary 5000 Overlook Ave., SW, Washington, DC

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