CITY WATER LIGHT & POWER May 12, 2015

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20.50

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21.50

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24.00

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93

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94

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95

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96

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98

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99

20

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01

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MG

D

Year

Yearly Average Pumpage 1993 - 2014

Treated

Average

10-yr avg.

80,000

85,000

90,000

95,000

100,000

105,000

110,000

115,000

120,000

1950 1960 1970 1980 1990 2000 2010 2013 2025 2045 2065

Historical

SCRPC

12

14

16

18

20

22

24

26

19

57

19

60

19

63

19

66

19

69

19

72

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75

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78

19

81

19

84

19

87

19

90

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93

19

96

19

99

20

02

20

05

20

08

20

11

20

14

20

17

20

20

20

23

20

26

20

29

20

32

20

35

20

38

20

41

20

44

20

47

20

50

20

53

20

56

20

59

20

62

20

65

MG

D

CWLP Forecast Scenarios of Annual Average MGD

Historic Annual

Median

100-yr

High Growth

High Growth - 100-yr

Illinois State Water Survey -1998 and 2011 Studies

Lake Springfield Defined as an Inadequate

System:

Definition of Inadequate System “There is a greater than 50% probability that the current system would not be able to provide the community’s current rate of water demand through a severe drought similar to the drought of record.”

All numbers in mgd 2012 Annual

Average Pumpage Future 2065 Demand

CDM Study

Potable Water Demand 23.2 25.6

ADDITIONAL DEMANDS

Power Plant Use of Lake Water 9.3 5.0

Increased South Fork Pumpage -1.0 -1.0

Future Wholesale Demand 2.0

Future Industrial Demand 2.0

Growth Uncertainty 1.0

Net Effect of New Demands Assumptions

+8.3 (31.5) +9.0 (34.6)

Yield of Lake Springfield 23.3 23.3

Demand – Yield = Drought Needs 31.5-23.3= 8.2 34.6-23.3=11.3

Sangamon Valley Wells and Gravel Pits ◦ Proved inadequate by Layne Hydro Study

Illinois River Valley Well Fields

Havana Lowlands Well Fields

Hunter Lake

Located in Illinois River Valley Aquifer

Located along the Illinois River approximately 7 miles south of US Rt. 36

Radial Collector Wells, 4 storage tanks, 4 pump stations, over 56 miles of water main.

12 mgd -Total Capital Cost-$150,265,000.

17.75 mgd - Total Capital Cost-$199,948,000.

Located near Mason City in eastern portion of Mahomet Aquifer

Wells fall within the Imperial Valley Water Authority District

12 mgd – 6 wells, 2 pump stations, 2 tanks and over 38 miles of 30”main- Total Capital Cost-$122,044,000.

17.75 mgd – 10 wells - 2 well fields, 4 pump stations, 4 tanks and over 47 miles of 36” main- Total Capital Cost-$183,120,000.

Located southeast of Lake Springfield

Own 7,138 acres

Need to purchase approximately 670 acres

Minimal Equipment Maintenance

Use existing South Fork Pump Station to transfer water to lake.

Total Cost $108,273,900

Hunter Lake

21 mgd

Havana 12 mgd

Havana 17.75 mgd

Illinois River 12

mgd

Illinois River 17.75

mgd

Total capital Cost after

sale of land $108,273,900 $98,669,000 $159,953,000 $126,890,000 $176,573,000

50-Yr. NPV Maint. Costs

$6,930,000 $18,410,000 $23,430,000 $20,540,000 $25,390,000

50-Yr. NPV Energy Costs

$2,860,000 $21,680,000 $32,070,000 $39,230,000 $40,620,000

18 Month Operational

Costs $386,000 $2,070,000 $3,479,000 $3,363,000 $4,278,000

50-Yr. NPV Total Cost

$ 161,720,000 $ 187,965,000 $ 289,075,000 $ 247,245,000 $ 323,205,000

Hunter Lake

21.3 mgd

Havana Lowlands Groundwater

12 mgd

Havana Lowlands Groundwater

17.75 mgd

Illinois River Valley Groundwater

12 mgd

Illinois River Valley Groundwater

17.75 mgd

Total Capital Cost $ 108,274,000 $ 122,044,000 $ 183,328,000 $ 150,265,000 $ 199,948,000

Water value of sale $ - $ 23,375,000 $ 23,375,000 $ 23,375,000 $ 3,375,000

Value after sale $ 108,274,000 $ 98,669,000 $ 159,953,000 $ 126,890,000 $ 176,573,000

Bond Amount $ 108,274,000 $ 122,044,000 $ 183,328,000 $ 150,265,000 $ 199,948,000

Estimated Annual Debt Service $ 5,888,000 $ 6,636,000 $ 9,968,000 $ 8,171,000 $ 10,872,000

Increase in annual Debt $ - $ 748,000 $ 4,080,000 $ 2,283,000 $ 4,984,000

30 Year NPV of Annual Debt Service $ 151,930,000 $ 171,250,000 $ 256,950,000 $ 210,850,000 $ 280,570,000

Annual Maintenance Costs $ 120,000 $ 319,000 $ 406,000 $ 356,000 $ 440,000

50 Year NPV Maintenance Costs $ 6,930,000 $ 18,410,000 $ 23,430,000 $ 20,540,000 $ 25,390,000

Annual Operation Energy Costs $ 47,000 $ 363,000 $ 532,000 $ 657,000 $ 674,000

Annual non-Operation Energy Costs $ 19,000 $ 95,000 $ 178,000 $ 172,000 $ 225,000

50 Year NPV Energy Costs $ 2,860,000 $ 21,680,000 $ 32,070,000 $ 39,230,000 $ 40,620,000

18 Month Drought Operation Cost $ 386,000 $ 2,070,000 $ 3,479,000 $ 3,363,000 $ 4,278,000

50 NPV Total Cost $ 161,720,000 $ 187,965,000 $ 9,075,000 $ 247,245,000 $ 323,205,000

Increase from lowest cost $ - $ 26,245,000 $ 127,355,000 $ 85,525,000 $ 161,485,000

Frequency of

Operation

Hunter Lake 21.3 mgd

Havana Lowlands Groundwater

12 mgd

Havana Lowlands Groundwater

17.75 mgd

Illinois River Valley

Groundwater 12 mgd

Illinois River Valley

Groundwater 17.75 mgd

0 $ - $ 10,325,000 $ 104,225,000 $ 55,005,000 $ 131,595,000

1 $ - $ 14,225,000 $ 109,945,000 $ 62,535,000 $ 138,995,000

2 $ - $ 18,175,000 $ 115,635,000 $ 70,055,000 $ 146,345,000

3 $ - $ 22,165,000 $ 121,425,000 $ 77,715,000 $ 153,835,000

4 $ - $ 26,245,000 $ 127,355,000 $ 85,525,000 $ 161,485,000

5 $ - $ 30,385,000 $ 133,385,000 $ 93,475,000 $ 169,285,000

Water Restrictions in 2012, 2000, 1988

ISWS- currently with 90% confidence CWLP would have to shut Power Plants down for roughly 6 months during 100-yr drought

Do we risk a 1953-1955 drought causing water restrictions to homeowners and businesses' like: hospitals, restaurants, car washes, landscapes companies, and other businesses.

How does a community grow or attract business with an “Inadequate Water System”.

Doing nothing is an unacceptable decision

Hunter Lake ◦ Most cost effective

◦ Requires minimal maintenance- No maintenance of wells, pumps and tanks

◦ Largest yield- most water available,

◦ Best water quality- no additional treatment needed

◦ Will serve Springfield for many years

◦ Increase fishing and hunting opportunities for community- IDNR partnership