CONTROLLING CAPITAL COSTS: SETTING THE STAGE
Abstract: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.
Document Type: Research Article
Publication date: January 1, 2005
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