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
March 5, 2015
San Antonio Vista Ridge Project
Page 3
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
March 5, 2015
San Antonio Vista Ridge Project
Page 4
Current Water Supply Projects
• Aquifer Storage & Recovery (ASR)
• Desalination
• Expanded Local Carrizo
Three Projects on One Site
March 5, 2015
San Antonio Vista Ridge Project
Page 5
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
March 5, 2015
San Antonio Vista Ridge Project
Page 6
Brackish Groundwater Desalination
March 5, 2015
San Antonio Vista Ridge Project
Page 7
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
March 5, 2015
San Antonio Vista Ridge Project
Page 8
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
March 5, 2015
San Antonio Vista Ridge Project
Page 9
Vista Ridge Regional Water Project
March 5, 2015
San Antonio Vista Ridge Project
Page 10
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
March 5, 2015
San Antonio Vista Ridge Project
Page 11
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
March 5, 2015
San Antonio Vista Ridge Project
Page 12
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
Page 13
Rate Impacts
• Potential Rate Increase of 16% on average bill
• Opportunities for new wholesale customers
–Ongoing discussions with other utilities
March 5, 2015
San Antonio Vista Ridge ProjectPage 14
Regional Backbone of Water Opportunities for Regional Agreements
March 5, 2015
San Antonio Vista Ridge Project
Page 15
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
March 5, 2015
San Antonio Vista Ridge Project
Page 16
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
Page 17
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
March 5, 2015
San Antonio Vista Ridge Project
Page 18
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
Page 19
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
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