Proposed Reverse Osmosis (RO) Q Why can’t H2GO negotiate better wholesale Q Can H2GO purchase and treat raw water from Waterworks Facility and Groundwater Supplies water rates with Brunswick County Public the Cape Fear River? Utilities? No. Lower Cape Fear Water & Sewer Authority has Frequently Asked Questions Wholesale water rates must be consistent for all previously informed H2GO that lack of capacity in wholesale water customers. The County has existing their existing raw water transmission system Q Is H2GO a private utility? wholesale water contracts that require the use of the prevents them from selling raw water allocations to No. H2GO is a governmental, public entity PPI method to set wholesale water rates. The H2GO. established by the State of North Carolina for the wholesale water contracts that contain that purpose of preserving and promoting the public provision expire in 2020 and until then, the County is Q Does Lower Cape Fear Water & Sewer Authority health and welfare. unable or unwilling to change to a cost-based rate have sufficient raw water capacities to supply setting method. their wholesale regional customers’ future raw Q Is H2GO governed by Leland or by Brunswick water needs? County? Q If Brunswick County Public Utilities set Not without an expansion of their raw water No. H2GO is a self-governing public entity with an wholesale rates based on an AWWA cost-based transmission system. LCFW&SA is planning a $66 elected, five member Board of Commissioners. Our operation and maintenance rate methodology, million, 14 mile long, 60” raw water transmission regional service area is generally northeast would it affect H2GO’s retail rates? pipe. Inter-local agreements for design of this Brunswick County and includes Leland, Belville, parts Brunswick County Public Utilities’ officials have project have just recently been executed, but no of Navassa, and customers located outside the limits stated that the difference in rates between the PPI capacity and project cost allocations have been of these incorporated Towns. and the AWWA rate methodology is within pennies. determined, and no timetable for construction of the However, if and when Brunswick County Public project has been announced. Q Where does H2GO get our water from? Utilities moves to an AWWA cost-based rate Brunswick County Public Utilities sells wholesale methodology, wholesale water rates could be Q Does Brunswick County Public Utilities have finished water to H2GO, Leland, Navassa, Northwest directly affected by Brunswick County Public Utilities’ sufficient treatment capacity to supply H2GO’s and about 10 other wholesale customers in southern capital improvement projects, increased debt future water needs? Brunswick County. service, expanded operations and maintenance, and Not without expanding their surface water treatment increased raw water costs charged by Lower Cape plant. Brunswick County Public Utilities has Q How does Brunswick County Public Utilities set Fear Water & Sewer Authority. considered a $30 million expansion of their surface wholesale rates to H2GO and other wholesale water treatment plant from 24 MGD to 36 MGD, but customers? Q What is AWWA? no timetable for the project has been announced. Wholesale water rates charged by Brunswick County AWWA is the American Water Works Association. Brunswick County Public Utilities’ plant expansion is Public Utilities are based on the Producers Price awwa.org also dependent upon the implementation of Index (PPI). The PPI has increased by more nearly LCFW&SA’s raw water transmission system 87% since 1985 and is projected to increase another Q Where does Brunswick County get their water improvements. 50% over the next 20 years. from? Brunswick County buys raw water from the Lower Q Why is H2GO looking to build and operate its Q Does the PPI for wholesale water rates affect Cape Fear Water & Sewer Authority (LCFW&SA), who own reverse osmosis water treatment facility? H2GO’s retail rates? owns this region’s permit to withdraw water from Primarily, to better manage water costs and rates for Yes. H2GO pays for every gallon of water purchased the Cape Fear River. Lower Cape Fear Water & our customers. For the past 5½ years, H2GO has from Brunswick County Public Utilities. If the PPI and Sewer Authority provides wholesale regional raw studied the comparative cost between building a wholesale water rates increase, as they have by water supplies to local governments and industry reverse osmosis water treatment facility and nearly 24% over the past 12 years, H2GO passes within a five-county service area comprised of continuing to purchase water from Brunswick County along those direct cost increases to our customers. Bladen, Brunswick, Columbus, New Hanover and Public Utilities. H2GO’s team of professional Pender Counties. planners, consulting engineers, hydrogeologists, and financial rate consultants has evaluated, analyzed, drought; and water quality degradation from the and developed detailed technical and financial effects of hurricanes. Q What backup water supplies to the reverse documentation necessary for H2GO’s staff and Board osmosis treatment facilities will be available to of Commissioners to determine that building a Q If our current water supplies from the Cape H2GO? reverse osmosis water treatment facility would be Fear River or from Brunswick County Public H2GO will maintain interconnections with Brunswick financially beneficial to its customers. The reverse Utilities were interrupted, how long could County Public Utilities – beneficial two-way osmosis water treatment facility will not only provide H2GO continue to provide water to its interconnections to improve water system resiliency a financial benefit to H2GO’s customers, but it will customers? for both entities. also meet the growing water needs of H2GO’s rapidly H2GO has less than a day’s average usage in storage. expanding customer base. Brunswick County Public Utilities could provide up to Q What would happen in the case of a drought? 1 million gallons per day via an interconnection The Lower Peedee and Black Creek aquifers are Q Why wouldn’t H2GO continue to buy wholesale agreement with Columbus County. H2GO’s current deep, confined aquifers. They are not susceptible to water from Brunswick County Public Utilities? average daily demand is about 1.7 million gallons per drought. The cost to buy wholesale water is now at a point day (MGD), and our maximum daily demand has where the annual wholesale water payments to exceeded 3.7 MGD. Q How many customers are in the H2GO service Brunswick County Public Utilities are greater than area? the annual cost to finance a new reverse osmosis Q Is H2GO proposing to build and operate a H2GO serves approximately 10,000 water customers water treatment facility. With H2GO’s growing user reverse osmosis water treatment facility just to and nearly 6,000 sewer customers. The historic base, increasing water demands, and an escalating secure an alternate water source? growth rate for our service area has been about 2.5% PPI (increasing wholesale water rates), H2GO’s No. The decision to move forward with the reverse annually. Last year, the customer base rose by more wholesale water payments to Brunswick County osmosis water treatment facility is primarily based than 6% and is forecast to trend at or greater than Public Utilities will continue to increase; and will on the cost of water and the ability to manage 3.7% for the next several years. H2GO’s customer soon exceed the total cost to finance and operate expenses for the benefit of our customers’ rates. base is projected to double within the next 25 years. the reverse osmosis water treatment facility. Having an alternate water source associated with our Analogy: Renting a house sometimes makes sense; own reverse osmosis water treatment facility will, Q How much water is used in the H2GO service but when the landlord increases the rent and those however, significantly improve water system area? rent payments get to a point that they exceed resiliency for our customers. Although cost of water H2GO’s average daily demand (ADD) for water is mortgage payments, insurance and taxes, it becomes is the driving force to implement this project, an about 1.7 million gallons per day (MGD). The good financial sense to buy the house. alternate water source has been a key consideration. maximum daily demand has exceeded 3.7 MGD. The average daily water demand in the H2GO service Q What is wrong with the water from the Cape Q What benefit does the plant hold for customers area is projected to reach 3.0 MGD by 2035, with Fear River? and the community? maximum daily demands at or above 6 MGD by The Cape Fear River does provide a suitable raw The plant will produce high quality finished water for 2035. water supply for treatment for potable water use; our customers. H2GO customers will not see any and Brunswick County Public Utilities does provide a water rate increases and the rates should remain at Q What is the capacity of the proposed reverse good quality finished water to H2GO and other or below current rates for the foreseeable future. osmosis water treatment facility? wholesale water customers. As with any surface The plant will also provide a backup water supply for The reverse osmosis water treatment facility will be water supplies, however, the river does have its other communities in cases of critical water shortage designed to produce up to 4.0 MGD of finished vulnerabilities. These vulnerabilities include future emergencies. Deep-well ground water supplies are water. The plant will be designed to accommodate supply allocations; susceptibility to chemical/toxic not vulnerable to surface contamination and other an expansion to 6.0 MGD and a build-out capacity of spills; 200+ wastewater dischargers upstream; hazards, improving system resiliency for H2GO 8.0 MGD. agricultural run-off; algae blooms; emerging customers.