Western Water Issues: The Challenges of Growth

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Western Water Issues: The Challenges of Growth NARUC Water Committee Summer Meetings July 2008, Portland, Oregon Walton Hill, United Water

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139 years in the US water showcase Key Highlights 1869-Founded as Hackensack Water Company 1890-Listed on the New York Stock Exchange 1930-First utilization of charcoal filtration 1989-Nation's biggest ozone filtration plant 1994-Merger with GWC 2000-Acquisition by Suez 2002-Acquisition of US Water 2007-Acquisition of Aquarion Water Company of New York Number two player with 8% share of private market Active in 20 states, 6.5 M populace served Revenue $600M, add up to resources $2B 2,000 representatives Two Business Segments: Regulated and Contract Services 21 managed utilities, 138 O&M contracts Regulated business is exceptionally capital escalated with generally safe profile Contract Services business is not capital serious, but rather has higher hazard profile United Water at a Glance United Water's procedure is to build up a very much adjusted arrangement of directed and contract benefit operations that can create esteem in accordance with its hazard profile

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Overview A little Idaho history Existing conditions Future desires Solutions/Strategies for achievement

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Water Rights Debate in Idaho

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Parma Boise River Star Middleton Boise Caldwell Nampa Lake Lowell New York Canal Kuna Snake River

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Anderson Ranch Built 1950 439,200 AF Arrowrock Built 1915 286,600 AF Lucky Peak Built 1957 293,100 AF Boise River New York Canal Lake Lowell Built 1908 173,000 AF Boise Basin Water Supply History Boise River

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Boise Basin Water Supply History "Build up the West"— beginning 1908 USBOR Reservoirs incompletely financed by offering securities to new Irrigation Districts 40 year notes now paid off; ID's have 40 year contracts with BOR for surface water rights Water providers contract (5 yr rent) with ID's for supply, or "transient rental pool" or "water bank" for unused rights (yearly rent) Cornfields or yards—improvement influencing the employments of water rights

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United Water Idaho 250,000 populace in City of Boise and encompassing territories; 83,000 clients 16 Billion gallons conveyed every year 20 MGD winter; 90 MGD summer 11" precipitation every year versus >40" Mid-Atlantic Region half increment in populace 1988 to 2006

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United Water Idaho (cont'd.) Conservation programs initiating mid-1980's Public data, school training, xeriscaping program, water review program, summer/winter rates, double frameworks 6 - 10 MGD Surface Water Treatment Plant Construction (second in 15 years) 90 wells; aquifers achieving their farthest point Uses of surface water rights evolving

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Dual Systems—1995 UW Idaho's normal private bill = $350/yr. 70% ($250) is for summer utilization Seasonal rates New improvements pay $50/yr. for water system from double framework Total bill now about $200 $150 to UW, $50 for I.D. Clients have pleasant yards; UW Idaho's mid year pinnacle (and income) are shaved Peaking plants delayed, yet bring down income stream makes more requirement for rate cases

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Meeting the Challenge Natural Surface Flow Ground Water Conservation Short Term Rental Pool Contract Storage

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Strategies for Success Purchase arrive - get water rights change over back to environment bowl trades of the water Butte water rights win-win "utilized and valuable"? "intergenerational value"? Administrative support for securing momentum and future water supply

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Strategies for Success Delivery from trenches (turn into their clients) through five year contracts Provides income and impetus for productivity for IDs to enhance their frameworks

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Aquifer Storage and Recovery Strategies for Success

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Short term rental pool program- - yearly Increasing cost, diminishing unwavering quality Strategies for Success

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Strategies for Success-United Water Idaho Conservation Program endorsed by PUC Seasonal rates Outreach and instruction: TV, radio, daily paper, group and civil associations Comprehensive approach: "preservation packs", water system upgrades, xeriscape classes, indoor protection tips, rain drain gadgets, low stream spouts Costs conceded; administrative issue of declining income—"decoupling"