Agenda - 02-21-2017 - 4-b - OWASA Annual Update Presentation

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Annual Report 4 January 20, 2017 Page 3 continue to encourage our customers to contact us whenever they have any comments or questions about our water or to request water quality testing including lead testing at no charge. Drinking water disinfection and plumbing systems On September 22nd, we received information from staff and recommendations from our Natural Resources and Technical Systems Committee regarding chloramines, our disinfectant for drinking water, and its effect on certain types of rubber. We will continue working to inform our customers,plumbers and other stakeholders about the need to choose rubber items, such as toilet flappers, that are chloramine resistant. Related OWASA letter on January 18, 2017 Long-Range Water Supply Plan Update/Jordan Lake allocation On November loth, we approved a process and criteria for evaluating supply and demand management options as we update this plan. The next steps will include receiving population forecasts for our service area from a regional transportation planning process. Letter to governing boards on November 4d" We will not approve an updated plan until after the NC Environmental Management Commission (EMC)has made a decision on our request to continue our present Jordan Lake allocation of about 5 million gallons per day (for use only in severe droughts and operational emergencies). The Division of Water Resources made a presentation on the allocation requests to the Water Allocation Committee (WAC) of the EMC on January 11; Committee members were hopeful that the item would be included as an action item on the March WAC and EMC agendas. Energy management On September 8d', we approved evaluation criteria and the approach for energy management including the use of a"social cost of carbon" based on the methodology used by Federal agencies. The social cost of carbon is an economic calculation of the damages from greenhouse gas emissions, such as reduced agricultural yields, disease spread, and loss of ecosystem services. The goals of our energy management program include reducing use of purchased electricity by 35% and lowering natural gas use by 5%by the end of 2020, as well as exploring opportunities for renewable energy generation. Mountains-to-Sea Trail(MST) on OWASA land near the Cane Creek Reservoir On August 25th, we approved conditions for allowing the MST on OWASA land near the Cane Creek Reservoir. The conditions address water quality protection, risks related to hiking and ensuring that there will be no costs to OWASA due to the trail. The specific route of the trail on OWASA land is subject to our future approval.