Tuesday, 17 December 2013 20:22

AWA Hydroelectric Project promises long-terms savings for ratepayers

(Sutter Creek)  An “in-line” hydroelectric project designed to produce power for Amador Water Agency facilities and save AWA ratepayers future electricity costs is moving forward after AWA Directors agreed to pay for design and permitting work by N-Line Energy, an El Dorado Hills-based hydroelectric engineering firm.
            
A small turbine, installed inside a large Water Agency pipeline at the Tanner Water Treatment plant at Agency headquarters in Sutter Hill, will generate power as water runs through the pipe. Generated electricity is  projected to match the electrical demand of the Tanner water treatment plant and the AWA administration office and maintenance buildings, currently costing about $73,000 per year.
            
It is estimated there will be no out-of-pocket costs to the Water Agency and ratepayers for the project construction costs of $1.45 million, which would be paid by power cost savings, a low interest loan from Amador County and a PG&E incentive grant.
            
“We will be paying less for debt service on this project than we would for electricity just a few years after start up,” said General Manager Gene Mancebo.
 
A second in-line turbine also has been proposed for the Ione pipeline at the Ione Reservoir. That project would not be eligible for the same PG&E grants and has been put on hold pending other grant and/or loan opportunities.
 
At the final Board meeting of the year Thursday, Water Agency Directors received several pieces of good news.
 
Important improvements on the Lake Camanche Village water system, funded by a $150,000 grant by Amador County Supervisors, are nearing completion. The grant was contingent on the Agency securing water rates that covered the cost of service in the Camanche area. Those new rates went into effect July 1 of this year.
 
Fire hydrant repairs (20 repairs and 2 new hydrants) in the Camanche Village system have been completed.  The Supervisors’ grant also paid for rehabilitation of Well No. 14 and at Thursday’s meeting, AWA Directors approved purchase of a portable emergency generator for Lake Camanche Village well pump stations, needed in the event of power outages. Also this year, AWA crews have replaced over 200 residential service lines, installed by the Camanche Village developer in the 1970s, through a grant from the state.
 
AWA Directors got some good financial news as well. The Agency’s cash reserves are up to over $5 million, after reaching a low of near $500,000 in 2010. Adequate cash reserves are critical for making unexpected repairs to infrastructure and for the financial stability of the Agency. 
 
In addition, the Agency obtained an A-minus Standard and Poor’s credit rating, reflecting Agency actions taken over the past few years to recover from the economic downturn. The positive credit rating affects the Agency’s ability to get low interest rates on loans for infrastructure.
 
In other Amador Water Agency news:
·     At the Dec. 12 AWA Board meeting, the Board appointed District 5 Director Art Toy as Board president and District 3 Director Rich Farrington as Board Vice President, through December, 2014, and made Board committee assignments. They also confirmed AWA staff Cris Thompson as Clerk of the Board and General Manager Gene Mancebo as Board Secretary.