Houston Area Water Corporation Northeast Water Purification Plant Houston Area Water Corporation Northeast Water Purification Plant October 13, 2000 CDM.

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Presentation transcript:

Houston Area Water Corporation Northeast Water Purification Plant Houston Area Water Corporation Northeast Water Purification Plant October 13, 2000 CDM

Agenda Background Information Project Understanding Project Development

CDM Lake Houston East Water Treatment Plant Southeast Water Treatment Plant Existing Water Treatment Facilities

CDM Lake Houston Projected Subsidence ( ) Affects Structures and Drainage

CDM AREA Lake Houston

CDM Subsidence District Requires Conversion to Surface Water 30% 70% 80%

CDM Lake Houston Groundwater Quality Will Likely Decline Deteriorating Quality Deteriorating Quality

CDM Area 3 Population Growth Increases Need for Conversion

CDM 2030 System is Extensive and Complex Lake Houston Proposed Southwest Treatment Plant NEWPP Treatment Plant 300+ mgd 8 Proposed Existing

CDM Lake Houston NHCRWA is a Large Potential Customer NHCRWA

CDM NHCRWA NEWPP Treatment Plant 300+ mgd Proposed Southwest Treatment Plant NHCRWA May Develop Their Own Transmission System Lake Houston Proposed Existing

CDM 2020 System Provides Broad Coverage NHCRWA NEWPP Treatment Plant mgd Proposed Southwest Treatment Plant Lake Houston Proposed Existing

CDM 2010 System Meets Subsidence District Requirements Lake Houston NEWPP Treatment Plant mgd Proposed Existing NHCRWA

CDM Initial Phase (2003) Initiates Regional Solution Lake Houston NEWPP Treatment Plant mgd Proposed Existing NHCRWA

CDM Market Needs Excess Capacity Provides Multiple Benefits Perception/ Legislative Incremental Cost #3 More cost-efficient to build with the future in mind #2 North Harris County is counting on this project — a smaller plant sends the wrong signal #1 Azurix believes that the market will exist for excess capacity by 2003

CDM Excess Capacity Lowers Cost to Customers $/Gallon Capital Cost

CDM Filters Filter Gallery (Pipe Gallery Below) Flash Mixers Flocculators Distribution Channel Sedimentation Basins (2 Tray - Stacked) Distribution Channel Settled Water Channel Future Ozone Contactor if Necessary Treated Water To LLPS Collection Channel Raw Water Treatment Module 100 mgd FUTURE MODULE Design Anticipates Expansion and Regulatory Changes

CDM Northeast Water Purification Plant Illustration

CDM Step 1: Form LGC Formation of LGC Director Appointments City of Houston Local Government Corporation Transfer of NEWPP Procurement Process Board of Directors 6/ / /13 Created: 8/23

CDM Step 2: Select Partner Houston Area Water Corporation Houston Area Water Corporation 6/ / /13 Azurix / CDM Team Azurix / CDM Team 11/15 1/15 Design Construction Operation Financing Marketing

CDM Step 3: Purchase/Sell Water with COH City of Houston Azurix / CDM Team in association with Houston Area Water Corporation Azurix / CDM Team in association with Houston Area Water Corporation Sale of Raw Water Sale of Treated Water $ 6/ / /13 1/15 $

CDM Step 4: Market Excess Capacity Sale of Treated Water 6/ / /13 1/15 North Harris County North Harris County Azurix / CDM Team in association with Houston Area Water Corporation Azurix / CDM Team in association with Houston Area Water Corporation

CDM Step 5: Lease NEWPP Site Lease of Site Land 6/ / /13 1/15 Azurix / CDM Team in association with Houston Area Water Corporation Azurix / CDM Team in association with Houston Area Water Corporation City of Houston

CDM 6/ / /132/15 Step 6: Obtain Financing Interim Financing Interim Financing Excess Capacity Financing Excess Capacity Financing Long-Term Tax-Exempt Financing Long-Term Tax-Exempt Financing Azurix / CDM Team in association with Houston Area Water Corporation Azurix / CDM Team in association with Houston Area Water Corporation

CDM Funding Availability Includes Several Options Near Term (0-6 months) Bonds Excess Capacity  Tax-exempt revenue-based financing on volumes purchased by COH and some excess capacity  Texas Water Development Board State Participation Program  Un-rated tax-exempt bonds  Team purchase of capacity  Provided by Azurix / CDM team members

CDM Skills Required Azurix Pepper-Lawson Others Salomon Smith Barney Smith Graham & Co. CDM Others Azurix Thacker Vinson & Elkins Mayor Day Houston Area Water Corporation Houston Area Water Corporation Lobbying Local Legal Marketing Operation Financing Design Construction All

CDM Questions and Answers