Summer  2005, Vol. 12 No. 1

Capital Construction Costs

We at CWA are committed to providing our customers with quality water when they need it, at the most reasonable cost. To meet this mission, our revenues must be sufficient to cover our costs including the cost of necessary capital projects. The major components that drive rate increases are:

Do the following names mean anything to you?

These are some of the contaminants being monitored and controlled during the disinfection and treatment processes used to purify the water delivered by CWA to your home or business.

The US Environmental Protection Agency (USEPA) and the Pennsylvania Department of Environmental Resources (PADEP) regulate these contaminants. To meet the current and proposed regulatory requirements, Water Utilities across the United States are modifying treatment processes and treatment facilities.

Chester Water Authority is committed to have in place the necessary processes and facilities to effectively deal with these contaminants and future contaminants identified and under consideration for regulation by the USEPA and PADEP.

Over the past three years (2002, 2003, 2004), CWA has invested approximately $26.3 million in capital spending in proactive maintenance programs, new equipment and facilities, and automation, all with the goal of providing quality service to our customers. Projects included rehabilitation of water mains and hydrants, upgrades to and automation of our treatment plant processes, storage tank construction and renovations, construction of transmission and distribution booster pumping stations, installation of automatic meter reading devices, and continuing computerization and automation of our operational systems and processes. Our projected capital spending for 2005, 2006, and 2007 is estimated to be $31.1 million.

Water quality, service reliability, and reasonableness of cost are the three main drivers of our attempt to keep our system at high levels of operating effectiveness. To do this, we must be proactive in making sure our physical plant is always capable of meeting its assigned tasks. In addition, we are committed to investing in appropriate security measures to protect both the water we deliver to our customers and our ability to deliver water without interruption.

As a municipal authority, CWA is a not-for-profit organization. We do not pay dividends, nor do we answer to stockholders. We answer to our customers. Our operational efficiencies are the reason our rates are, and will remain, significantly lower than the rates of major neighboring for-profit water utilities.