The URL can be used to link to this page

Home My WebLink AboutReg 2021-09-20 Item 5 - Presentation - Cascade Water Alliancefes CASCADE WATER ALLIANCE Future of Cascade's Water Supply Informational Presentation to Tukwila City Council September 20, 2021 Q) Presentation Overview • Overview of Cascade and its existing water supply • Future water supply scenarios • Water Supply Development Fund (WSDF) • Impacts on Tukwila and other member agencies Cascade Water Alliance • One of the "big four" water suppliers. • Seven member agencies. • Serves 380,000 people, 20,000 businesses. • Formed in 1999. • Founding principles: • Voice and a vote. • Equal rights to Cascade supplies. • Independent supplies produced first. • Durable governance structure. • Dual majority voting. • Stable and predictable financial structure. t Kirkland Redmond Bellevue Skyway Water &'S District T Sammamish Plateau Water r C?"110115 Issaquah* 00 Cascade's Water Supply Current Supply Strategy • Declining block contract with Seattle. • Water right for municipal use of Lake Tapps Reservoir. • Lake Tapps operational by 2042. Strategy Flexibility • Business model: Use regional water to bridge demand until Lake Tapps is operational. • Ample regional water supply through 2060. • Lake Tapps can be deferred with extended or new supply contract and extended water right development schedule. Annual Average MGD 500 450 400 350 300 250 Seattle -Tacoma -Everett Aggregate Supply and Projected Demand (Excluding Cascade Water Alliance) Current Aggregate Supply 200 Actual Demand (Excluding Cascade) 150 100 50 Forecast of Cascade Demand from Regional Suppliers Early Forecasts (z. 2007) Forecast of Cascade Demand from Regional Suppliers Recent Forecasts (z 2019) 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 150 mgd 0 Cascade Board Workshop Discussion • Future water supply scenarios and costs. • Water Supply Development Fund (WSDF): o Accumulates cash toward supply project. o Satisfies fiscal policy requirements. o Reduces and smooths out rate impacts. Board Direction • Pursue contract extension with Seattle. • Explore new contract with Tacoma. • Present resolutions in October to implement WSDF. CASCADE ��E"" '""" Cascade Board Supply Scenarios Direction Base Scenario • Lake Tapps in service 2042 Continue to Evaluate • Seattle Extension • Lake Tapps in service 2055 • Block contract • Tacoma (no wheeling) • Lake Tapps in service 2059 • Block contract • Tacoma (with wheeling) • Lake Tapps in service 2059 • Block contract • Seattle wheeling agreement Remove Options • Everett • Lake Tapps in service 2059 • Seattle wheeling agreement • Purveyor contract with Seattle • Permanent supply commitment from Seattle • Sale or transfer of Lake Tapps Description Total Projec Costs WSDF Accrual Base Case Seattle Extension Tacoma (no wheeling) Tacoma (with wheeling) Gap Requiring Bond Funding CASCADE WATER ALLIANCE Water Supply Development Fund Scenarios The WSDF supports all supply scenarios being evaluated. Scenario Develop White River -Lake Tapps (WRLT) Supply $1.548 $419M $1.12B • Develop WRLT • Develop WRLT • 15 -year block • 20 -year block contract Seattle Contract Tacoma • Develop WRLT • 20 -year block contract Tacoma • Seattle wheeling agreement $2.36B $2.69B $2.97B $1.18B $1.09B $1.22B $1.18B $1.59B $1.75B CASCADE WATER ALLIANCE Water Supply Development Fund Impacts • Reduces debt-to-equity ratio and maintains high bond ratings. • Tukwila's contribution via Member charges: $830K over nine years. $829,768 $0 $149 $18,981 $49,501 $81,690 $116,303 $151,555 $187,431 $224,158 Note — Tukwila's total Member charges in 2021 are $2.7M. • Pre -construction: Cascade's general rate increases are below inflation. Assumed Annual Inflation 3.O% 3.O% 3.O% 3.O% 3.Q% Cascade General Rate Increase 2.2% 2.2% 2.2% 2.2% 2.2% Tukwila Annual Increase 0.3% 3.2% 2.1% 0.6% 2.4% Projected Tukwila Cost Per CERU/Month $27.03 $27.85 $28.39 $28.52 $29.16 Projected Annual Increase in Cost/CERU $0.03 $0.81 $0.54 $0.13 $0.64 $30.00 $28.00 $26.00 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 Real Monthly Cost per CERU 2020-2060 with Seattle Extension Total Member Charges except RCFCs, inflation-adjusted Deferring construction of Lake Tapps with WSDF contributions keeps rates below inflation and moderates rates once construction begins. Delaying the WSDF causes rates to later spike. 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 —Inflation (3%) —Base (with WSDF) —SPU 15 (with WSDF) SPU 15 (delay WSDF 15) A S Water Supply Development Fund Board Authority • Approves amount of rate increases and transfers used to fund WSDF. • Authorizes use of WSDF funds. • Approves project capital funding plan prior to commencing work on supply strategy. • Redirects use of WSDF funds if not needed as planned or to extent anticipated: ■ Reduce demand share charges. ■ Distribute funds to Members. Thank you for your time. Any questions?