CONTROLLING CAPITAL COSTS: SETTING THE STAGE
As of 2002, the average AMSA wastewater agency had $415 per capita in long term debt. Looking forward, the 2002 EPA needs assessment estimates that the United States will need to invest between $311 and $450 billion on wastewater treatment infrastructure by 2019. As a point of comparison, the total indebtedness of 115 AMSA agencies (served population about 40% of the United States) stood at $36 billion in 2002. With almost all of the O&M efficiencies taken up (unit staffing levels declined 30% during the 1990's), aggressive capital cost reduction is the only hope for keeping rates reasonable and meeting needed capital needs. A number of utilities have demonstrated that capital cost reduction of 20-30% can be achieved through a variety of methods. This paper provides an overview of some of these methods and the following speakers in this and the next session will describe their experiences with these methods.
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Document Type: Research Article
Publication date: 2005-01-01
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