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

underground infrastructure by implementing a program that replaces approximately one percent of the pipes annually. The amount of
these increases was offset by $gO million in savings from the reduced Lead Service Replacement program.
Sustainab¡l¡ty - Managing Aging Assets During Ghallenging Economic Times
As a water distributor and wastewater treatment operator, we provide essential services and ensure protection of public health and
the environment. The District, like many older cities, have underground pipes that are more than 75 years otd on average and
nearing or at the end of their projected life span. A recent study by the US EPA concluded that "Much of the drinking water and
wastewater infrastructure in the U.S. was built 30 years following World War ll, mirroring the increase in population and that the U.S.
population today benefits from the investments that were made over the past several decades to build our nation's water
infrastructure". Nationally, utility budgets will have to adapt to the fact that pipe networks that have never before required significant
upgrades or replacement will now require a growing demand on financial resources. lgnoring this need could put our nation's waters
and public health at risk. As demonstrated in Bethesda, MD on River Road and in Dundalk, MD most recently, failure to plan for and
replace aging infrastructure can have catastrophic results on customers and property. As communities across the nation review
these issues, there will be a growing tension between the need to replace worn-out infrastructure and the need to invest in
compliance with new and increasingly stringent regulatory standards. This budget emphasizes our clear commitment to sustainable
infrastructure in the long term. lt is an acknowledgement to our customers and stakeholders of the extent of the decaying
infrastructure we have inherited, and shows that we plan to take steps to reduce the financial burden to future generations to address
the replacement of aging infrastructure. lt also provides resources for priority initiatives that ensure good utility management
practices, efficient water use, fair and equitable rates that reflect the full cost of services provided, and planned infrastructure
upgrades and replacement.
As an environmental steward, DC WASA recognizes the importance of leading the way on environmentally friendly improvements or
green initiatives. This budget emphasizes our commitment to green initiatives by allocating billions of dollars in resources. We are
committed to being energy efficient and making choices to promote green initiatives. The ten-year Capital lmprovement Program
includes over $1 billion in Combined Sewer Overflow Long Term Control projects and $900 million in the Blue Plains Total Nitrogen
project, both of which help improve the health of our surrounding waterways. Also over the next four years, we will invest about $400
million in building a digestion facility. Once completed, this facility will significantly reduce DC WASA's carbon footprint by producing
Class A biosolids, reducing biosolids production by half, and generating 10 MW of green energy annually. Other priority green
initiatives funded through this budget include a comprehensive energy audit of all our facilities, the first of its kind since the
organization's inception; the continuation of an organízational wide recycling program; purchase of two additional Hybrid-electric
vehicles (Sedans) and replacement of 20 gasoline carts with electric carts, thereby improving fuel economy and helping to minimize
pollution. However, green comes at a cost. The needed funds to address these operational and infrastructure challenges require
careful and prioritized trade-offs given DC WASA's commitment to keep water and sewer rates affordable.
t-4