Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

more w¡dely disposed of at reduced costs; reduction in the carbon footprint of the existing lime stabilization process; and, the
production of an estimated 1OMW of power that can be utilized on site. The reduced costs associated with this project should help
provide some of the necessary long term funding needed for the improvements to the sewer and water infrastructure identified by the
respective facility plans.
Other long-term upgrade projects now under construction include:
' Nitrification-Denitrification Facilities Upgrade - to upgrade the process and/or replace equipment that are at the end of their
useful lives.
' Raw Wastewater Pump Station 1 - Upgrade to the Raw Wastewater Pump Station to replace equipments that are at the end
of their useful lives, and improve reliability.
' Process Control System - will provide automated monitoring and control for the nitrification-denitrification process that will
improve treatment, control and optimize chemical and power costs, and increase reliability of the facilities.
' Biological Sludge Thickening Facilities- will upgrade the existing dissolved air floatation thickening units to restore integrity to
this system and reduce sludge processing and chemical costs through improved efficiency.
COMBINED SEWER
The lifetime budget for the Combined Sewer Service Overflow (CSO) Service Area is $2.7 billion, which includes the twenty-year
CSO Long Term Control Plan (CSO-LTCP). The benefits of this plan are significant. When fully implemented, combined sewer
overflows will be reduced by a projected 96 percent (98 percent on the Anacostia River), resulting in improved water quality. The
more than $400 million increase to this service area's lifetime budget is attributable to two items. First, $300 million related to the
following: updated costs estimates of the recently completed facility plan of the project and transfer of certain projects from the Blue
Plains Total Nitrogen program under the Wastewater service area; and, second approximately $100 million associated with the
Northeast Boundary Sewer Project ($18.Smillion), Tiber Creek Sewer Lining Project ($16.5 million) and an increase in the costs for
the Combined Sewers Under Buildings ($60.t million). The latter are projects recommended under the sewer facility plan and not
related to the CSO-LTCP.
It should be noted that additional risks and contingencies associated with the twenty-year LTCP program exist and will be evaluated
over time. Given the long timeframe of this project and the uncertainties associated with tunneling projects, we will continue to
monitor the costs and risks with the expectation of updating the projections when certain milestones have been reached. We have
recommended the cunent change to the program budget based upon completion of one of the major milestones - the facilities plan
for the Anacostia Tunnel. There will be similar milestones for the other portions of the CSO-LTCP in future years that will provide
information that may require re-evaluation of future risks and costs associated with this project.
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