Q&A: Water costs could be 30% higher by 2031

Editor’s note: This is the second in an ongoing series of questions/answers related to the Ute Water Pipeline, a project intended to provide a sustainable municipal and industrial water supply for several eastern New Mexico communities and Cannon Air Force Base. The water will come from Ute lake reservoir in Quay County. Editor David Stevens is submitting the questions to Mike Morris and Orlando Ortega, chairman and director, respectively, of the Eastern New Mexico Water Utility Authority. Readers may suggest questions by emailing: [email protected]

Q: Let’s skip ahead to 2031, the year the pipeline is expected to be complete and operational. Will Clovis, Elida, Portales and Texico all be ready to begin distribution of that water at that time? What about Cannon Air Force Base?

A: Yes. Each of the ENMWUA communities has a need for additional drinking water right now. The Ute Pipeline system is designed and constructed to provide one connection point at each of the ENMWUA members’ water systems where treated, potable Ute water can be received.

Q: The city of Clovis has an agreement with EPCOR to deliver water to city customers today. What arrangements, if any, have been made for EPCOR to use water from the pipeline? Has EPCOR agreed to purchase the city’s allotment from the pipeline? If so, at what cost? Is EPCOR contractually obligated to purchase water from the pipeline?

A: EPCOR is an excellent partner who understands the groundwater scarcity challenge Clovis faces better than anyone.

The finite nature of our groundwater and the risks associated with dependence on a sole source of water that is in decline dictate that EPCOR will add Clovis’ Ute water allocations to their portfolio.

As such, EPCOR has included Ute water in their 40-year plan which they update periodically.

Costs will depend on numerous factors, not all determined at this time. To be sure, the cost will pale in comparison to the cost of Clovis running out of water.

Q: We all know water costs will be steadily increasing in the years to come. Has anyone come up with an estimate for how much those costs will go up? What percentage increase can the average municipal customer expect to see in their water bill in 2031?

A: With water scarcity intensifying, the principle of supply and demand tells us that water costs are going to rise.

For the past 15 years, EPCOR has continually invested millions each year in sourcing new groundwater supplies and developing infrastructure to keep up with demand.

And it is worth mentioning that EPCOR has done this without a rate increase since 2019.

Understanding that sourcing new groundwater supplies is costly and that delivering surface water from Ute will be costly, we can reason that water costs are headed up.

However, ENMWUA, EPCOR, and the city of Clovis are all committed to successfully meeting the water scarcity challenge in a manner that is of the greatest value to the end user.

Q: Looking for a little more specificity here: A 10% increase? A 40% increase? Some kind of ballpark figure?

A: No water, no economy; no economy, no community.  

The future cost of water will be lower than the cost of Clovis running out of water risking the community’s existence.

There are many yet-to-be-determined factors that will go into the rates of 2031. But I think 30% higher by early next decade is possible. 

I understand that you are looking for specificity. The fact is that we currently do not have all of the data needed to give a specific future number. 

Few factors are in our control but taking action to develop a portfolio of water supply gives us a future. For the surface water part of the portfolio, ENMWUA’s experts are working to design and construct a system that maximizes efficiency and value to the end users. That’s our commitment -- the greatest value to the residents of Clovis/Cannon, Portales, Texico, and Elida while meeting the water scarcity challenge and achieving water security. 

However, the wholesale cost of treated surface water from Ute Reservoir delivered by ENMWUA will be one factor in the equation of future water rates. 

Additional groundwater is needed in our communities in the interim and will be necessary post-2031 to supplement the surface water supplies. 

Groundwater will always need to be part of the picture and requires investment as well. The efforts that each member community is undertaking to keep up with current demand -- sourcing groundwater supply, developing wells, maintaining water systems, etc. are costly primarily because there’s less and less groundwater available. 

It is important to note that Clovis’ water utility provider, EPCOR, is regulated by the Public Regulation Commission and must make the case for adjusting rates and receive approval. 

In Clovis, we are grateful to EPCOR for their excellent and dependable service. We should reasonably expect that investments in that continued, dependable service are bound to show up in rates in the coming years.  

Q: What other cost increases can we expect to see related to the pipeline project? There must be maintenance costs. How much annually and will those also be shared among federal, state, and local taxpayers?

A: Operation and maintenance costs will be paid for with revenue from the sale of water.