July 2016, Vol. 71 No. 7
Newsline
WaterWorks News
WaterWorks News, July 2016
American Water Seeks Approval Of Plan in WV
West Virginia American Water filed an application with the Public Service Commission of West Virginia (PSC) seeking approval of an Infrastructure Replacement Program (IRP). The purpose of an IRP is to address the national challenge of aging infrastructure by directing additional investment to areas where improvements are needed.
The company seeks cost recovery on $32.5 million of its planned $107 million of capital investments in 2016 and 2017 through the proposed IRP with a separate charge on customers’ bills effective Jan. 1, 2017. If granted, the charge would be calculated as a percentage of the total monthly bill, representing an increase of 1.9 percent or 89 cents per month for the typical residential customer using 3,204 gallons.
The scope of the proposed program is structured around seven categories of facilities, including water mains, meters, valves, hydrants, and certain plant, tank and booster station investments. The purpose is to prudently invest in reinforcing, strengthening and providing resilience to the transmission and distribution system. A detailed list of individual infrastructure replacement projects organized by district is included in the filing and outlines the specifics of the company’s plan to invest $16.5 million. The planned upgrades will replace more than 22 miles of water main this year, along with hydrants, valves, manholes, services and other qualifying projects.
The proposal includes multiple consumer protections, such as annual reconciliations, annual caps, cumulative caps and earnings limits. Charges stemming from this program would be calculated annually until rolled into the company’s rates in a future rate case, at which time the IRP charge would reset to “zero.”
The PSC will conduct a review of West Virginia American Water’s IRP application, and the company has requested that an order be issued within a six-month period. If approved, the company anticipates filing its annual IRP plan by July 1 of each year.
West Virginia American Water, a subsidiary of American Water (NYSE: AWK), is the largest water utility in the state, providing water services to approximately 550,000 people.
Texas Water Development Board Names Executive Administrator
The Texas Water Development Board (TWDB) recently named Jeff Walker as the new executive administrator.
Walker currently serves as the deputy executive administrator of Water Supply and Infrastructure. His areas of responsibility include state water planning, project development, financial assistance, project funds disbursement, water use and population projections, and facility needs assessment.
He has served in various positions at the TWDB for more than 25 years, including as director of Project Development, team lead for Financial Assessment, financial analyst, and agricultural conservation specialist.
Walker holds a Master of Business Administration from Texas State University and a Bachelor of Science in agricultural economics from Texas A&M University.
The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional planning and preparing the state water plan for the development of the state’s water resources. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood control, and agricultural water conservation projects.
Texas City Receives $12 Million For Reclaimed Water System
The Texas Water Development Board approved by resolution financial assistance in the amount of $12,770,433, consisting of a $11,220,000 loan and $1,550,433 in loan forgiveness, from the Clean Water State Revolving Fund to the city of Weatherford, TX. The city will be able to finance the design, acquisition and construction phases of a reclaimed water system.
In addition to the savings from the loan forgiveness, the city could save approximately $1,280,000 over the life of the loan by using the Clean Water State Revolving Fund.
The project includes improvements to the city’s wastewater treatment plant, as well as financing of a reuse water pump station, a reuse water line and an outfall structure.
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