Behind the Meter Water Utility Winter 2022 Newsletter

Page 1

BEHIND THE

METER

O R O VA L L E Y W AT E R U T I L I TY N E W S L E T T E R

WINTER 2022

A MESSAGE FROM OUR DIRECTOR Our community’s sustainability depends on a safe, reliable and drought resilient supply of water. Because of the Utility’s robust water quality testing and Capital re-investment programs, the safety and reliability of our public water system is assured. Having a drought resilient supply of water is more complicated and requires different strategies with longer forecasting horizons. The Oro Valley Water Utility has been planning for water shortages for over 20-years. One of the Peter Abraham, P.E. Utility’s sources of water, the Colorado River, is currently in short supply due to persistent drought Water Utility Director and over allocation of the River System. The Utility receives Colorado River water supplies by way of the Central Arizona Project (CAP) canal. CAP water is important to Oro Valley as 30% of the Utility’s Colorado River water allocation is delivered to Oro Valley customers, 50% is used to replace groundwater pumped by the Utility and the remaining 20% is stored in nearby underground aquifer storage facilities where they become Long Term Storage Credit (LTSC) for future use if needed. Under the Bureau of Reclamation’s current Drought Contingency Plan, designated lower priority CAP water users like agriculture have already lost nearly all of their CAP allocation as a result of the Bureau of Reclamations Tier 1 shortage declared in January of 2022. The Utility will not see reductions in CAP deliveries until a Tier 3 shortage is declared. The Utility is planning for a Tier 3 shortage that may begin as early as 2024. In the short term, a Tier 3 shortage will not impact the Utility since the Arizona Water Banking Authority (AWBA) will firm 100% of any CAP reduction that creates delivery shortfalls through the year 2026. The availability of firming water precludes the use of the Utility’s LTSC. Another challenge, as a result of a reduction in CAP water deliveries, is increased water resource costs for the remaining CAP customers. Because there is less water sold to fewer customers, the cost of CAP water per unit is expected to go up significantly. Unfortunately, increasing costs to the Utility are passed on to the customer since the funding of the Utility is solely dependent on rates and fees paid for by our customers. To ensure the financial stability of the Utility a water rates analysis is performed annually to ensure that the cost of providing water service to our customers is recovered through water rates and fees. Water Utility staff are currently performing this important analysis. The results of this work will be available to the public in April. With the continued support of the community, Council, good stewardship of our resources, responsible rate setting, and continued forward thinking of solutions to assure continued drought resiliency the Utility will continue to meet the sustainability needs of the community. Looking forward,

Peter Abraham

To view the current water rate analysis, go to http://bit.ly/

OVWURateAnalysis2022 or scan the QR code with your tablet or smartphone.

Peter A. Abraham, P.E. | Water Utility Director 1 1 0 0 0 N L A C A Ñ A DA D R I V E | 5 2 0 - 2 2 9 - 5 0 0 0 | OV W AT E R @ O R OVA L L E YAZ . G OV | W W W. O R OVA L L E YAZ . G OV


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Behind the Meter Water Utility Winter 2022 Newsletter by Oro Valley - Issuu