Nevada Water Authority Approves $3 Billion Plan, Raising Rates
In a sign of just how central drinking water and wastewater services are to growing regions, and of how expensive this infrastructure can be, a Nevada water authority has approved a $3 billion expansion plan that will have an impact on ratepayers’ bills.
The Southern Nevada Water Authority — which serves a region with acute source water scarcity, as well as a growing consumer base — wants to expand its services through new pipelines over the coming years. Recently, it unanimously approved the multibillion-dollar plan to do so. Though it plans to pay for it via loans, it has said that customer rates will increase as well.
“The increased rates for water users will start in 2022 with a six-year phase-in approach,” the Las Vegas Review-Journal reported. “After six years, rates will be tied to inflation. Projects will also be funded by loans. Those who own a typical single family home in the Las Vegas Valley can expect to pay about $10 more per month in 2027 than they do in 2020.”
So what are the authority and its ratepayers getting for the extra cost? Firstly, a much-needed $250 million pipeline to carry water to and from a local industrial park. Also, it will pay for $120 million in wastewater infrastructure from the park back to major local source body Lake Meade. Plus, a new water project for the southern Las Vegas Valley that will include a new pipeline, two pumping stations, and capacity for 40 million gallons of water at an estimated cost of $1.6 billion.
Despite the costs, local leaders are optimistic that improving the surrounding infrastructure will be key to driving economic growth in the region, as well as securing drinking water service for current residents.
“While the overall plan helps ensure Southern Nevada’s current and future water users continue to receive reliable, quality water for decades to come, many of the projects within the plan will help stimulate the local economy and support our community’s economic diversification efforts,” Bronson Mack, a local water authority spokesperson, said in a statement obtained by CTPost.
“This is probably the single biggest economic driver that will ever change the direction of North Las Vegas,” Mayor John Lee, who is a member of the Southern Nevada Water Authority board, said during a meeting to approve the plan, per the Review-Journal.
To read more about how drinking water and wastewater utilities pay for infrastructure upgrades and maintenance, visit Water Online’s Funding Resources Solutions Center.