ODS Replacement Strategy/Options

Commission Directive

• Investigate ways to fund next iteration of ODS system equipment

• Initial thought to have system supported by all who benefit from it– Drinking water purveyors

Assumptions

• $5M needed in 7 years for full replacement and upgrade of analytical, communications and data management systems based on current technologies

• Apportionments based on annual contributions required for 7 years to accrue $5M

Cost Share Options

• Water utilities share in equipment replacement cost paying:– Equal shares– Pro rate full amount based on population served– Pro rate half amount (50:50 split with

Commission?) based on population– Develop “user fee” for all consumers

Equal Apportionment Among All Drinking Water Utilities/Purveyors

30 Municipal Utilities3 Industrial Purveyors$5M/7 years = $714,286/year

$714,286/33 = $21,645/facility/year$151,515/facility over 7 years

7 facilities provide water to 85% of Ohio River Water Consumers

$5M Apportionment based on Population Served – per annum cost

Louisville Water Company** $160,992.01 Steubenville Water Works $3,499.83Cincinnati Water Works** $154,639.82 East Liverpool Water Works $2,799.86Pa-American Water Co.** $99,745.05 Township of Robinson $2,099.90Pittsburgh Water & Sewer $65,621.74 Ironton Water Works $2,012.40N. KY. Water Service District $52,497.39 Buckeye Water $1,399.93Evansville Water Plant** $43,747.83 Toronto Water Works Office $997.45West View Municipal** $34,998.26 City of Follansbee Water $979.95WV-American Water Co.** $15,749.22 Sistersville Water Department $874.96Ashland Water Works** $13,937.36 Russell Water Works $874.96Henderson Water Works $13,299.34 Morganfield $612.47Paducah Water Works** $10,499.48 Sturgis Water Department $612.47Wheeling Water Department** $8,749.57 Illinois-American Water $612.47Portsmouth Water Works** $7,174.64 Midland Borough Water** $548.95Maysville Water Works $6,194.38 Weirton Steel Drinking Water $87.50Moon Township $4,374.78 USEC $87.50Weirton Water Works** $3,849.81 NOVA Chemical $70.00

Bayer Polymers $43.75

$5M Apportionment based on Pop. Served – 7 year total contribution

Louisville Water Company** $1,126,944.04 Steubenville Water Works $24,498.78Cincinnati Water Works** $1,082,478.75 East Liverpool Water Works $19,599.03Pa-American Water Co.** $698,215.33 Township of Robinson $14,699.27Pittsburgh Water & Sewer $459,352.19 Ironton Water Works $14,086.80N. KY. Water Service District $367,481.75 Buckeye Water $9,799.51Evansville Water Plant** $306,234.79 Toronto Water Works Office $6,982.15West View Municipal** $244,987.83 City of Follansbee Water $6,859.66WV-American Water Co.** $110,244.53 Sistersville Water Department $6,124.70Ashland Water Works** $97,561.53 Russell Water Works $6,124.70Henderson Water Works $93,095.38 Morganfield $4,287.29Paducah Water Works** $73,496.35 Sturgis Water Department $4,287.29Wheeling Water Dept.** $61,246.96 Illinois-American Water $4,287.29Portsmouth Water Works** $50,222.51 Midland Borough Water** $3,842.63Maysville Water Works $43,360.68 Weirton Steel Drinking Water $612.47Moon Township $30,623.48 USEC $612.47Weirton Water Works** $26,948.66 NOVA Chemical $489.98

Bayer Polymers $306.23

$5M Apportionment based on Population Served

7 systems contribute 85% of cost

$2.5M Apportionment on PopulationServed - per annum cost

Louisville Water Company** $80,496.12 Steubenville Water Works $1,749.92Cincinnati Water Works** $77,320.02 East Liverpool Water Works $1,399.93Pa-American Water Co.** $49,872.59 Township of Robinson $1,049.95Pittsburgh Water & Sewer $32,810.92 Ironton Water Works $1,006.20N. KY. Water Service District $26,248.73 Buckeye Water $699.97Evansville Water Plant** $21,873.94 Toronto Water Works Office $498.73West View Municipal** $17,499.16 City of Follansbee Water $489.98WV-American Water Co.** $7,874.62 Sistersville Water Department $437.48Ashland Water Works** $6,968.69 Russell Water Works $437.48Henderson Water Works $6,649.68 Morganfield $306.24Paducah Water Works** $5,249.75 Sturgis Water Department $306.24Wheeling Water Dept.** $4,374.79 Illinois-American Water $306.24Portsmouth Water Works** $3,587.33 Midland Borough Water** $274.47Maysville Water Works $3,097.20 Weirton Steel Drinking Water $43.75Moon Township $2,187.39 USEC $43.75Weirton Water Works** $1,924.91 NOVA Chemical $35.00

Bayer Polymers $21.87

$2.5M Apportionment based on Pop. Served – 7 year total contribution

Louisville Water Company** $563,472.81 Steubenville Water Works $12,249.41Cincinnati Water Works** $541,240.13 East Liverpool Water Works $9,799.53Pa-American Water Co.** $349,108.15 Township of Robinson $7,349.65Pittsburgh Water & Sewer $229,676.42 Ironton Water Works $7,043.41N. KY. Water Service District $183,741.13 Buckeye Water $4,899.76Evansville Water Plant** $153,117.61 Toronto Water Works Office $3,491.08West View Municipal** $122,494.09 City of Follansbee Water $3,429.83WV-American Water Co.** $55,122.34 Sistersville Water Department $3,062.35Ashland Water Works** $48,780.83 Russell Water Works $3,062.35Henderson Water Works $46,547.75 Morganfield $2,143.65Paducah Water Works** $36,748.23 Sturgis Water Department $2,143.65Wheeling Water Dept.** $30,623.52 Illinois-American Water $2,143.65Portsmouth Water Works** $25,111.29 Midland Borough Water** $1,921.32Maysville Water Works $21,680.37 Weirton Steel Drinking Water $306.24Moon Township $15,311.76 USEC $306.24Weirton Water Works** $13,474.35 NOVA Chemical $244.99

Bayer Polymers $153.12

$2.5M Apportionment based on Population Served

$1.5M Apportionment on PopulationServed - per annum cost

Louisville Water Company** $40,247.95 Steubenville Water Works $874.96Cincinnati Water Works** $38,659.90 East Liverpool Water Works $699.96Pa-American Water Co.** $24,936.23 Township of Robinson $524.97Pittsburgh Water & Sewer $16,405.41 Ironton Water Works $503.10N. KY. Water Service District $13,124.33 Buckeye Water $349.98Evansville Water Plant** $10,936.94 Toronto Water Works Office $249.36West View Municipal** $8,749.55 City of Follansbee Water $244.99WV-American Water Co.** $3,937.30 Sistersville Water Department $218.74Ashland Water Works** $3,484.34 Russell Water Works $218.74Henderson Water Works $3,324.83 Morganfield $153.12Paducah Water Works** $2,624.87 Sturgis Water Department $153.12Wheeling Water Dept.** $2,187.39 Illinois-American Water $153.12Portsmouth Water Works** $1,793.66 Midland Borough Water** $137.24Maysville Water Works $1,548.59 Weirton Steel Drinking Water $21.87Moon Township $1,093.69 USEC $21.87Weirton Water Works** $962.45 NOVA Chemical $17.50

Bayer Polymers $10.94

$1.5M Apportionment based on Pop. Served – 7 year total contribution

Louisville Water Company** $281,735.62 Steubenville Water Works $6,124.69Cincinnati Water Works** $270,619.31 East Liverpool Water Works $4,899.75Pa-American Water Co.** $174,553.59 Township of Robinson $3,674.81Pittsburgh Water & Sewer $114,837.89 Ironton Water Works $3,521.70N. KY. Water Service District $91,870.31 Buckeye Water $2,449.87Evansville Water Plant** $76,558.59 Toronto Water Works Office $1,745.54West View Municipal** $61,246.87 City of Follansbee Water $1,714.91WV-American Water Co.** $27,561.09 Sistersville Water Department $1,531.17Ashland Water Works** $24,390.35 Russell Water Works $1,531.17Henderson Water Works $23,273.81 Morganfield $1,071.82Paducah Water Works** $18,374.06 Sturgis Water Department $1,071.82Wheeling Water Dept.** $15,311.72 Illinois-American Water $1,071.82Portsmouth Water Works** $12,555.61 Midland Borough Water** $960.66Maysville Water Works $10,840.15 Weirton Steel Drinking Water $153.12Moon Township $7,655.86 USEC $153.12Weirton Water Works** $6,737.16 NOVA Chemical $122.49

Bayer Polymers $76.56

Personal Use Fee

• Levy 1¢ fee per consumer per year– 5M consumers = $50,000/year x 7 years =

$350,000– Need 14.3¢/person = $5M in 7 years• 7.2¢/person = $2.5M in 7 years• 4.3¢/person = $1.5M in 7 years

Other Funding Options

• Fines and Penalties from spills/discharge issues, etc.

• Discharge permit fee? – 600 NPDES Discharges• $2.5M/600 discharges/7 years = $595/discharge• $1.5 M = $357/discharge

• Department of Homeland Security funding• Consumptive loss fees

Grants – Foundations?

• Private Foundations? – E.g., Water Resource Grants

• State and Federal Grants?– Line item 106 pass-through? – Inland Waterways Trust Fund? – Harbor Maintenance Trust Fund?

Perspective

• 7 year or 28 year?– Short term or long term perspective? – Perpetual need for ODS?– Will regulatory environment require in future?

Perspective

• ODS analytes and response to industrial/manufacturing changes in basin– Abundant natural gas to spawn new industry

development• Fertilizer manufacturing

– Urea

• Plastics manufacturing• Others?

How to Proceed

• ?