Committed to providing safe, high quality water and related business services earning customer trust and confidence. Louisville Water Company Capital Program Overview Construction Consortium Conference July 31, 2009 James H. Brammell, PE, PLS Vice President & Chief Engineer Presented by:

2 Quality Service Value Key Drivers for Capital Investment Regulatory Requirements Aging Infrastructure – Renewal Growth New Technology

3 Quality Service Value 2009 – 2013 Capital Improvement Program (CIP) $97.1M $92.4M $75.8M $65.0M $60.5M

4 Quality Service Value 2009 – 2013 CIP

5 Quality Service Value 2009 – 2013 CIP INFRASTRUCTURE RENEWAL Treatment & Pumping12,124,44025,453,68529,822,5715,720,0008,594,44781,715,143 Distribution & Transmission12,376,00010,710,0009,730,00010,644,0009,730,00053,190,000 Buildings, Facilities & Grounds3,066,6272,234,000548,0001,050,00050,0006,948,627 Equipment & Vehicles2,951,0692,259,0202,075,0311,041,400762,4009,088,920 TOTAL $30,518,136$40,656,705$42,175,602$18,455,400$19,136,847$150,942,690 SELF-FINANCING IMPROVEMENTS Main Extensions3,545,0004,675,0005,240,0005,522,5005,805,00024,787,500 New Services4,566,3104,221,550 21,452,510 Relocations1,812,8741,542,928845,000 5,890,802 Bullitt & Oldham Counties1,616,858661,850400,000002,678,708 TOTAL $11,541,042$11,101,328$10,706,550$10,589,050$10,871,550$54,809,520

6 Quality Service Value 2009 – 2013 CIP NEW TECHNOLOGY & FACILITIES Advanced Treatment6,983,3433,929,599500,0002,000,00012,000,00025,412,942 Treatment, Pumping, & Supply7,062,5004,407,0776,060,00010,150,0004,543,36332,222,940 Facilities1,000,0002,400,000150,000700,00004,250,000 Technology Improvements2,865,7403,121,3399,831,1109,268,6797,151,33532,238,203 TOTAL $17,911,583$13,858,015$16,541,110$22,118,679$23,694,698$94,124,085 GROWTH RELATED IMPROVEMENTS Transmission Mains27,354,1717,539,670250,0003,798,900038,942,741 Boosted Pumping Systems4,678,3789,555,554815,000150,0005,000,00020,198,932 Storage Facilities3,857,4278,953,3825,300,0009,839,0001,800,00029,749,809 TOTAL $35,889,976$26,048,606$6,365,000$13,787,900$6,800,000$88,891,482

7 Quality Service Value Project Types Plant Booster Pumping Stations Storage Buildings and Facilities Distribution and Transmission Other

8 Quality Service Value Contractor Prequalification Criteria –Contractor Financial Statements –Contractor Experience –References on Completed Work Contact Information / Applications –Carol Lyons, Procurement Services (502) ext

9 Quality Service Value MBE / WBE Program Requirements Contractor must make a “Good Faith Effort” to expend a minimum of 15% MBE and 5% WBE of total contract amount –Approved Affirmative Action Plan –Provide list of subcontractors / suppliers for job –Provide monthly workforce analysis –Provide LWC access to the worksite –Give LWC reasonable access to contractor’s personnel records

10 Quality Service Value Crescent Hill Filter Plant On Site Chlorine Generation Contractor:MAC Construction and Excavating Award Date:October 2008 Budget:$12,188,3341 Scope:To construct an on-site chlorine generation system to meet the disinfection needs of the Crescent Hill Filter Plant’s treatment process. Completion Date:April 2010

11 Quality Service Value Crescent Hill Filter Plant (CHFP) Filter & Backwash System Renovations Award Date:August 2009 Budget:$37,610,080 Scope:To renovate / upgrade the east filters at CHFP. The new filters will contain deeper media enabling higher filtration capacity; to construct a new backwash system that provides a robust backwash water flow and air scour system. Completion Date:August 2012 Note: This information is subject to change.

12 Quality Service Value I-64 Booster Pump Station Bid Date:October 2009 Budget:$7,000,000 Scope:To construct a 15 MGD Booster Pumping Station that can be expanded to 20 MGD in the future. Completion Date:April 2011 Note: This information is subject to change.

13 Quality Service Value I-64 Storage Tank Bid Date:October 2009 Budget:$3,123,000 Scope:To construct a 1 million gallon elevated water storage tank. Completion Date:April 2011 Note: This information is subject to change.

14 Quality Service Value Crescent Hill Water Treatment Plant Renovation of Softening Basins 1-4 Award Date:March 2010 Budget:$14,844,000 Scope:To replace the horizontal mixing and clarifier equipment in the Softening Basins (and associated appurtenances). To replace handrails and perform electrical upgrades, concrete rehabilitation, and sluice gate valve rehabilitation. Completion Date: December 2011 Note: This information is subject to change.

15 Quality Service Value Crescent Hill Water Treatment Plant Renovation of North Coagulation, Flocculation and Sedimentation Basins Bid Date:July 2010 Budget:$9,372,740 Scope:To replace horizontal mixing equipment and clarifier equipment in Coagulation Systems Nos Install flash mixers, and replace lighting, handrails and power distribution systems in the north coagulation area. Rehabilitate concrete and perform leak repair in the north coagulation area. Completion Date:December 2011 Note: This information is subject to change.

16 Quality Service Value Questions? Thank you!