Water Works eyes more rate increases, $241 million in projects over five years
Des Moines Water Works likely will raise rates again to pay for $241 million in capital improvements needed to meet growing water demand and to keep nitrate and other pollutants out of tap water, the utility disclosed Wednesday.
“While the proposed costs are extraordinary, the majority of the infrastructure items are not discretionary,” Bill Stowe, CEO and general manager, said in a statement. “Source water quality projections for the Des Moines and Raccoon River, predicting continuing surface water pollution, show that investment in more treatment will be required to meet drinking water standards, and to avoid risk to public safety.”
The plan includes $80 million to rework the nitrate removal plant to address pollution the utility says is largely from farm sources and is the subject of a federal lawsuit against three northwest Iowa companies. Nitrate can suffocate infants and has been associated with a range of cancers at high levels, but the utility has kept concentrations in tap water at safe levels.
Another $16 million will go toward improvements needed to contain levels of trihalomethanes, a disinfection byproduct that forms when manure and other organic materials are in the river water. The so-called THMs can cause nervous system and liver damage. The Iowa Department of Natural Resources ordered improvements after the utility had high readings in 2013-14.
The capital improvement plan calls for $98 million in projects to increase capacity, improve metering and reading systems and to add finance and customer management software.
Water Works did not detail how much much rates will increase, but it said $57 million of the projects will be paid by other entities.
Stowe told the Business Record last July that rates will increase 10 percent April 1, and that rates in excess of 10 percent a year are likely “for the foreseeable future.”
Read a story about the approval of the April rate increase >>>
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