Improving Service Cleaning the Environment

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Improving Service Cleaning the Environment

• April 2008

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District of Columbia Water and Sewer Authority
Mission
To serve all its customers with outstanding
service by providing reliable and cost-effective
water and wastewater services in accordance with
best practices
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WASAProviding Essential Services 24 Hours A Day
Water treatment provided by the Washington
Aqueduct
Potomac River
Distribution System
Blue Plains Advanced Wastewater Treatment Plant
Wastewater Collection System
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WASA Serves a Population of More Than 2 Million

• WASA is one of the largest water and sewer
  utilities on the East Coast

• Retail water and sewer services to 580,000 in
  the District
• Water is purchased wholesale from the U.S. Army
  Corps of Engineers Washington Aqueduct
• WASA provides wholesale wastewater treatment
  services to 1.6 million people in counties in
  Virginia and Maryland
• Suburban counties pay full cost for use of
  facilities/services (funding formula)

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WASA Operates Extensive Water and Wastewater
Facilities

• Delivers estimated 87 million gallons a day
  (mgd) of water to the District
• 1,300 miles of water pipes 36,000 valves five
  pump stations five reservoirs four storage
  tanks over9000 fire hydrants
• Blue Plains Wastewater Treatment Plant treats
  370 mgd. from the District, Montgomery, Prince
  Georges, Fairfax and Loudoun counties
• 1,800 miles of sewer lines nine wastewater and
  16 stormwater pumping stationsin the District of
  Columbia
• Historic underinvestment in District water and
  sewer infrastructure

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WASA is a District Authority Serving the Region

• Created in 1996 as an independent agency of
  District government (by the District and
  Congress)
• Board of Directors11 principal members
• Six (6) from District of Columbia (have
  rate-setting authority)
• Five (5) members from suburban counties
• Board has adopted a policy of gradualand
  predictable rate increases
• Money from ratepayers pays for maintenance and
  improvements of District system

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Since WASAs Creation

• Then1996
• Virtually no cash in the bank
• No bond rating never issued debt
• Over 35 million in delinquent accounts
• Customers had to mail requests for
  service/transfers
• Now2008
• Six months operating cash reserves
• AA bond rating
• Delinquent accounts reduced to 6.5 million
• Consolidated Call Center and Voice Recognition
  Technology

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Since WASAs Creation (cont.)

• Then1996-7
• No rate increases in 10 years
• Less than 50 of fleet operable
• Lost revenue due to inaccurate readings
• Over 15 meter readings estimated
• Now2008
• FY 2008 Operating budget340.8 million
  10-year CIP budget3.1 billion with annual CIP
  expenditures 300 million
• 94 fleet vehicles operable
• Automated Meter Reading (AMR) real-time,
  accurate readings

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Why Are We Here Today?
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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
  ratesJanuary
• Public comment period FebruaryJune
• Rates posted in DC Register
• Public meetings heldFebruaryMay
• Public hearings (2) heldJune
• Board determines and approves ratesSeptember
• Rates become effectiveOctober

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Current Proposal

• Water Service Rate
• Increase from 2.14 to 2.32 per Ccf
• Sewer Service Rate
• Increase sanitary sewer service from 3.23 to
  3.35 per Ccf
• Adopt an Impervious Surface Area Charge of 14.92
  per ERU annually for FY 2009
• DC Right of Way/PILOT Fee
• DC PILOT increase to 0.39 per Ccf
• DC Right of Way increase to 0.13 per Ccf

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WASAs Rates Compared With Other Utilities
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Why a Rate Increase is NeededWhat is an
Impervious Surface Area?
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Why a Rate Increase is Needed

• Primarily to fund the debt service cost for
  WASAs 3.1 billion ten-year capital program
  (CIP)
• Debt service cost projected to increase on
  average by 13.9 percent annually
• Includes 2 billion for the combined sewer
  overflow (CSO) long-term control plan
• Operations and maintenance costs have remained
  flat since 1998 and will increase on average by
  3.9 percent annually (or less than Consumer Price
  Index)
• Electric
• Chemical

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Why a Rate Increase is Needed (cont.)

• WASAS proposed rate increase will fund
  projected increases in operating expenses

Total Operating Expenditures FY 2007 - 2016
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Operating Budget Expenditures FY 2002 2009

• WASA uses a large amount of electricity and
  chemicals for its processing
• Electricity cost is a large portion of WASAs
  budget
• Electricity expenditures have doubled since FY
  2002 2009 from 15.7 mil to 30.4 mil
• WASA is the largest single source electricity
  user in the District
• Chemical expenditures have almost tripled since
  FY 2002 2009 from 7.9 mil to 22.1 mil

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Why a Rate Increase is Needed (cont.)
Primarily to fund WASAs 3.1 billion ten-year CIP

• Replace aging infrastructureimprove reliability
  and service quality
• Meet regulatory requirements
• Environmental stewardshiphelp clean up the
  Anacostia and Potomac rivers and Rock Creek

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Capital Investment Over the Next 10 Years

• 1.4 billion in wastewater treatment plant
  projects
• Digesters
• Nitrification/Denitrification
• Filtration
• Total Nitrogen Program
• 635.9 million in water projects
• Lead line replacement program
• 640.3 million in combined sewer projects
• LTCP and Nine Minimum Control (NMC) projects
• 149.8 million in Washington Aqueduct projects
• Residuals disposal
• 164.6 million in sanitary sewer and stormwater
  projects
• Sewer system assessment
• Pumping station improvements
• Interceptor/trunk and force sewers

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Combined Sewer Overflow (CSO) Long-Term Control
Plan

• 2005 Federal twenty-year 2.2 billion program
• Consent decree
• Facility planning and geotechnical work has begun
• Projected to reduce 96 of CSOs
• 98 reduction on Anacostia River
• Plan includes
• 3 large storage tunnels
• Pumping station improvements
• Targeted sewer separation
• Consolidation/elimination of several outfalls
• Low Impact Development projects

• Nine Minimum Control CSO improvements (140
  million) completed by 2008 reduce 40 of CSOs
• Received federal funding of about 106 million to
  date
• Future additional federal funding of 14m has
  been proposed for FY 2009

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CSO LTCP Costs through 2016

• Based on WASA approved ten-year financial plan
• Includes all WASA approved LTCP costs
• Forecast IAC cost pool 2009 through 2016

CSO "Cost Pool"
Millions
70
60
50
40
30
20
10
0
2009
2010
2011
2012
2013
2014
2015
2016
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WHAT IS THE IMPERVIOUS SURFACE AREA CHARGE?

• Impervious Surface Area is an area that does not
  allow water to easily penetrate such as rooftops,
  paved driveways, patios, and parking lots
• The impervious surface area charge is a more
  equitable method to recover the costs of the CSO
  Long Term Control Plan through a charge based
  upon contribution to surface runoff from wet
  weather events
• This cost is currently being recovered through
  the sewer charge
• The amount of impervious area on each property
  will be determined from information contained in
  the District of Columbias GIS
• Initially, all residential customers will be
  charged based upon one ERU (Equivalent
  Residential Unit) a simplified billing that
  represents a typical house.
• 1 ERU 1000 square feet of impervious surface
• The WASA Board of Directors is exploring an
  incentive program for future incorporation into
  the rate structure

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Impervious Surface Area Illustration
Storm Water
Combined Sewer
No Overflow During Dry Weather
Blue Plains Advanced Wastewater Treatment Plant
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Almost all impervious area fee systems simplify
the billing of Single Family Residential
properties
Equivalent Residential Unit (ERU)
Example
1 ERU 1,000
square feet of impervious area
Example of Equivalent Unit definition adapted
from The Florida Stormwater Association.
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Monthly Rate Comparisons with/without IAC

• 8.5 increase applied to both water and sewer
  proposed by WASA management in FY 2009
• Sewer rate decrease in FY 2009 with IAC rate
  column
• Reflects estimated IAC charge revenue

Proposed
FY 2009
Rate
FY 2009
w/IAC Rate
Change
Existing Usage Rate - Water Wastewater /CCF
Water Rate
2.32


2.32


(0.16)
Sewer Rate
3.51


3.35




5.83


5.67


(0.16)


Combined Rate

1.24


IAC Charge /ERU/Month
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FY 20072016 Financial Plan compared to revised
water/sewer and Impervious Surface charge proposal

• Proposed 5.6 percent water and sewer combined
  rate adjustment in FY 2009
• Implementation of 14.92 Impervious Surface Area
  Charge beginning in October 2008 (1.24 per month)

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Residential Impervious Surface Impacts Monthly
Bills

• Assumes monthly metered consumption of 8.33 CCF
• One ERU

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Customer Service Improvements
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Customer Service Improvements

• Automated meter reading for accurate billing and
  online features
• Customer water use and bill information online at
  www.dcwasa.com
• Interactive Voice Response (IVR) system with
  added customer options
• Monthly billing
• Budget billing
• Online bill paying
• Current Workzones notices on website

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Customer Service Improvements

• First utility in the country to provide customers
  with advance notice of possible leaks before the
  account bills using the High Use Notification
  Application (HUNA) developed and licensed by
  WASA.
• First water utility in the country to implement a
  fixed network automated meter reading system to
  improve billing accuracy and also provide meter
  reading data and consumption trends to customers
  on the web.

• Water utility pioneer in using telephone and
  voice technologies to provide self-service
  applications and payment processes 24 hours a
  day.

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Customer Assistance Programs

• Customer Assistance
• Program (CAP)
• Almost 5,500 customers
• received some CAP assistance
• in 2007
• Full CAP credit is 4 Ccfs per
• month for water or about
• 97 per year 2007
• SPLASH
• Serving People by Lending A Supporting Hand
  (SPLASH)
• Generous customer donations provided over 503
  needy residents with 146,000 in SPLASH grants
  in 2007
• Customers may contact the DC Energy Office at
  [phone] to determine CAP eligibility
• Customers may contact the Greater Washington
  Urban League at [phone] to
• determine SPLASH eligibility

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Other Major CIP Program
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Blue Plains Total Nitrogen Program (BTN)

• 815 million (disbursements from FY 2007-2016)
• 40 District retail/60 wholesale
• Lifetime budget - 950 million
• Includes the following projects
• Enhanced Clarification Facilities 139.4
  million
• Total Nitrogen Removal Facilities - 338.1
  million
• Centrate Treatment Facilities - 76.9 million
• Wet Weather Peak Mitigation - 261.0 million

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Lead Service Line Replacement Program

• A comprehensive lead program totaling 438
  million
• Replacement of all known lead service lines in
  public space
• Programs to encourage lead service line
  replacement on private property
• Department of Housing and Community Development
  grant program
• Wachovia Bank low-interest loan program
• WASA installment payment program
• Lead Service Line Replacement
• 14,124 public lines replaced thru FY 07 (105
  million spent)

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Fire Hydrant Program

• Long Term Partnership between WASA FEMS
• Monthly Meetings and Subcommittees
• MOU executed in November 2007
• 800 hydrant replacements in the last year
• Over 1200 hydrant replacements anticipated in FY
  2008
• WASA provides 4 full-time hydrant repair crews
• WASA secured additional 25 million in CIP
  funding for hydrant replacements
• FEMS Surveys completed for all 33 DC Fire Dept
  Engine Companies

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NEXT STEPS
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Ways to Provide Input on Rate Adjustment Proposal
Community meetings to be held throughout the
District in May 2008 All community meetings are
from 630-830 pm NW Quadrant Meeting NE
Quadrant Meeting Monday, May 19, 2008 Tuesday,
May 20, 2008 MLK Jr. Library Washington Center
for the Aging 901 G St., NW 2601 18th St.,
NE SW Quadrant Meeting SE Quadrant
Meeting Wednesday, May 28, 2008 Thursday, May
29, 2008 Southwest Neighborhood Library Anacostia
Senior HS Auditorium 900 Wesley Pl., SW 1601
16th St., SE Two Public Hearings have been
scheduled

• Wednesday. June 11, 2008 Monday, June 23, 2008
• 777 North Capitol St NE, 1st Floor 777 North
  Capitol St NE, 1st Floor
• 630 830 pm 1000 am-Noon
• Contact WASA with your comments
• E-mail at info_at_dcwasa.com
• Fax WASA at [phone]
• Mail to Board Secretary at 5000 Overlook Ave.,
  SW, Washington, DC 20032

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Acronyms Used

• AMR-Automated Meter Reading
• CCF-One Hundred Cubic Feet (also equals 748
  gallons of water)
• CIP-Capital Improvement Plan
• CSO-Combined Sewer Overflow
• ERU-Equivalent Residential Unit
• GIS-Geographic Information System
• IAC-Impervious Area Charge
• LTCP-Long Term Control Plan
• PILOT-Payment In Lieu Of Taxes