1. Where We Are and How We Got Here TACIR

2. Two Distinct Issues Unserved areas Areas outstripping their supply TACIR

3. Ballpark Estimate In 2005, $50,000 to $150,000 per mile of water line Plus operating costs. TACIR

4. Costs to Serve Rural Areas Reading metersvehicle costs and staff time Operating and maintaining pumps and tanksstaff, electricity, depreciation Flushing lines to ensure drinking-water quality All are more costly in sparsely populated areas. And there are fewer people to pay for them. Grants help with intial costs, but not operating costs. TACIR

5. TACIR Line Flushing Costly but necessary Serving freshly treated water just in time is impossible

6. Ways to Reduce Costs Automated meter reading reduces staff time in the field; vehicle idling, stops and starts Automatic line flushing saves staff field time and water Remote monitoring of tanks, pumps and valves saves time, water and money But its still more expensive in sparsely populated areas. TACIR

7. Water is not an unlimited resource... Carrying capacitythe maximum population that can survive indefinitely in a given environment Limiting factoranything that tends to make it more difficult for a species to live and grow or reproduce in its environment TACIR

8. Todays limits may not be limits tomorrow! TACIR

9. Getting water where you need it Source: U.S. Army Corps of Engineers, Nashville District

11. ... Water is a shared resource TACIR Source: U.S. Army Corps of Engineers, Nashville District

12. Current Water Supply Allocations in the Cumberland River System Project Utility J. Percy Priest LaVergne, TN Murfreesboro, TN Smyrna, TN YMCA, TN Consolidated Utility District, TN Cedar Crest Golf Course, TN Center Hill Cookeville, TN Smithville, TN DeKalb Utility District, TN Riverwatch Resort, LLC., TN Dale Hollow Byrdstown, TN Trooper Island Camp, KY Dale Hollow St. Park, KY Laurel Barbourville, KY London, KY Laurel County WD #2, KY TACIR Source: U.S. Army Corps of Engineers, Nashville District

13. Average Flow Contribution by Project Percent of Total Flow TACIR

14. Old Hickory Lake Main stem lock and dam project Authorized purposes Navigation Flood control Power production Water supply intake permits No water supply allocationssame as all main stem projects Water supply use may exceed lake inflows Moratorium to study TACIR

15. Federal Water Supply Act Reallocation Authorizes reallocation of storage from original purposes to water supply Typical reallocation is from power production Can be from flood control, but more hurdles Water utilities must pay for storage, the higher of Benefits or revenues foregone, Replacement cost, or Updated cost of storage. TACIR

16. If we build it, they will come... TACIR Source: National Drought Mitigation Center, School of Natural Resources, University of Nebraska-Lincoln.

17. J. Percy Priest Lake Tributary reservoir Authorized purposes Flood control Power production Recreation Added purposewater supply Reallocated from power production pool in 2005 Further reallocations requested in 2009 Preliminary report estimates much lower reliable capacity Final report submitted for approval in January 2012 Approval may require several months TACIR

18. Other areas of concern Mississippi lawsuit against Memphis and Tennessee Georgia attempts to tap Tennessee River or its tributaries TACIR