san antonio vista ridge project
TRANSCRIPT
Texas Water Conservation Association
San Antonio Vista Ridge Project
March 5, 2015
Robert R. PuentePresident/CEO
March 5, 2015
San Antonio Vista Ridge Project
Page 2
Water Management
• Growth
– Over 20,000 new people every year
• Drought
– Edwards Aquifer supply cut as much as 44%
– Medina Lake <5% capacity
• SAWS must meet the demands of growing population
– New Sustainable Water Supplies
– Continued Water Conservation
Planning for the Future
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San Antonio Vista Ridge Project
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110
150
190
230
1979 1984 1989 1994 1999 2004 2009
Continued Focus on Conservation
40% Reduction in
the last 30 years
16,500 acre feet water savings planned by 2020
124
225
Ga
llo
ns
pe
r P
ers
on
pe
r D
ay
(GP
CD
)
2013
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San Antonio Vista Ridge Project
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Current Water Supply Projects
• Aquifer Storage & Recovery (ASR)
• Desalination
• Expanded Local Carrizo
Three Projects on One Site
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Twin Oaks Aquifer Storage & RecoveryLargest Groundwater-Based ASR in the Nation
0
20,000
40,000
60,000
80,000
100,000
120,000
Ac
re-F
ee
t
Volume in Storage~ 70,000 af
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Brackish Groundwater Desalination
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Securing Water Future
• Water security for decades
• Support vibrant regional economy–Abundance vs adequacy
• Regional infrastructure and cost-sharing opportunities
• Alleviate harsh restrictions
SAWS Issued Request for Proposals for alternative water supplies
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San Antonio Vista Ridge Project
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Request for Competitive Sealed Proposal
• Issued in 2011
• Nine Respondents to Public Bid
• 3 Finalists were interviewed in 2013
• Vista Ridge Consortium (Abengoa & BlueWater)
–Long Term Production & Export Permits
• Localized Support in Burleson County with over 3,400 leases with landowners – 85,000 acres
Long Term Non-Edwards Supply for San Antonio
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Vista Ridge Regional Water Project
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Vista Ridge Contract Provisions
• Up to 50,000 ac-ft/yr for 30 years as early as 2019
• SAWS only pays for water made available
• Vista Ridge builds all project infrastructure
• SAWS builds system integration infrastructure
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San Antonio Vista Ridge Project
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Infrastructure Requirements
• Treatment
• Pump Station
• Ground Storage Tanks
• Pipe Construction– Up to 54-inch diameter
• Control Valves, Pumps, SCADA
Approximately $100M for integration
Panther
Springs
Bitters
Maltsberger
Basin
Mission
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San Antonio Vista Ridge Project
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Cost of Project
• Cost of Project
–Fixed Cost est. $1,852 - $1,959 (Dependent on Interest Rates)
• SAWS exposure to Interest Rates increases capped
–O&M Budgets developed annually and paid by SAWS
–Electrical Costs paid directly by SAWS
March 5, 2015
San Antonio Vista Ridge Project
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Rate Impacts
• Potential Rate Increase of 16% on average bill
• Opportunities for new wholesale customers
–Ongoing discussions with other utilities
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San Antonio Vista Ridge ProjectPage 14
Regional Backbone of Water Opportunities for Regional Agreements
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Contract Provisions
• SAWS Options
– Terminate Project prior to Financial Close
• Up to $50 Million cost of development and undertaking similar project
– Acquire project assets after Financial Close by paying offcontract debt and company investment
• Default Remedies
– SAWS Default allows Vista Ridge to compel buy-out
– Vista Ridge Default allows SAWS to purchase project atreduced rate
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San Antonio Vista Ridge Project
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Contract Provisions – End of Term
• Assets and Infrastructure transfer to SAWS at end ofcontract term
• SAWS right to continue purchasing water at Edwardslease price
• Increased payments to local landowners
– 50% of payments (after fees/taxes)
March 5, 2015
San Antonio Vista Ridge Project
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Win – Win for Community and State
• 50,000 ac-ft of water at fixed cost for 30 years
• Tomorrow’s Water at Today’s Price
• Cap on Interest Rate
• Transfer of Risk away from SAWS ratepayers
• Biggest Diversified Supply in the history of the City of San Antonio
• Regional Pipeline
• Environmental Benefits and firm supply
• Water Continues after first 30 years and Price drastically reduced
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San Antonio Vista Ridge Project
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Lessons Learned
• Project is pricey at over $2,000 per ac-ft
– Edwards – $331 per ac-ft
– Brackish Desalination – $1,138 per ac-ft
– Canyon Lake - $1,030
• Paying for:
– Diversity
– Sustainability
– Water Management Flexibility
March 5, 2015
San Antonio Vista Ridge Project
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Lessons LearnedTomorrow’s Needed Water at Today’s Prices
Canyon Lake
1960s
$5.18
1976
$33.02
Today
$1,030
Texas Water Conservation Association
San Antonio Vista Ridge Project
March 5, 2015
Robert R. PuentePresident/CEO