In Texas, Turning to Outsiders to Finance Water Deals
Developers say the site for the proposed Lake Columbia reservoir in East Texas is not much to look at right now.
“They call it the Mud Creek floodplain,” Fred Brown, a partner at Tomlin Infrastructure Group, said of the site, which is about 120 miles southeast of Dallas. “I’d say it lives up to that name.”
But if it is built, the 15-mile-long reservoir, which would cover more than 10,000 acres and hold more than 64 billion gallons of water, could be a model for the changing way Texas is financing water projects.
Tomlin, a private infrastructure company ...
Comments (10)
Jim Vance
What remains thoroughly suspect is the demand forecasting which identifies prospective need for new water supplies -- specifically where geographically and in what timeframe(s) growth in demand of various types is likely to occur -- as so much of the technical methodology is intrinsically flawed by a complete lack of integration with other dominant processes (i.e., transportation planning) whose decisions regarding project authorization and funding have equally major influence on infrastructure intended to induce and support development activity. The accrual of unrestrained visions for future development and related transportation project requirements across Texas which remains decoupled from the constrained water supply planning recommendations simply perpetuates a type of "Who's on first?" policy decision framework that has little chance of producing an outcome where forecasts are either accurate or complementary in the real world.
When private sector entities come forward to invest in water resource projects, there is an implicit presumption of an anticipated profit in the venture -- in order to gain authorization by regulatory authorities they should be required to state and publicly acknowledge the business objectives and assumptions upon which those ventures anticipate specific numerical growth characteristics, both in spatial distribution, scale and timeframe. In turn, those market-derived growth parameters must be reconciled and integrated with the parallel public sector processes involving planning for transportation and other support infrastructure required -- by doing so, the accuracy of forecast conditions upon which all public policy decisions for project authorization and construction funds are based should improve markedly by comparison with historical experience.
Gordon Cannoles
Two words, eminent domain. The argument that public funding is not available for water projects is simply not true.I am not aware of a public bond sale for a water resource project in Texas ever being turned down. I would not want to hold private sector bonds tied to a water project when the public tires of being held hostage to water prices.
Privatization of public services will go down in history as one of the most successful scams ever run on the general public..
D W
i am sure this will work just as well as previous privatization schemes have. such as electricity. seems that we used to be among the lowest priced in the US. but no more. now we can't compete with Oklahoma. there rates are much lower than ours are. and then of course there is that other hick up there. seems we are building enough new power plants to keep up with growth. which has lead to a companies leaving because of rates. and then of course there was that super bowl fiasco of a few years ago. the one where part of DFW were having rolling blacks outs. the week of the super bowl? wonder if companies wonder if moving Texas wont be a good idea since they might have issues getting power and water. other states have been using the current drought against us especially since we can't seem to address it. but then we must be weaker than we were back in the 1950s when we did address water issues. and transportation but we aren't able to do that any more
David Spratt
It looks like water is an underrated and under valued resource.. People will pay for it , and as a long term investment no other natural resource is as valuable. Maybe a surcharge on sprinkler systems, car washes,, would generate additional money?
300 mil to own 64 billion gal of water that in the future will be very valuable looks to be a very good investment,,, but this will only be seen in hindsight when water is 2 or 3 times the price it is now. Theoretically there is no limit to the price people will pay when there is very little water to be had. What will be the value of 64 bil gal of water in 20 years or so? Right now water is cheap enough that people pump millions of gal onto yards to grow grass they have no use for.
In 20 or 30 years there will be people that would wish they owned billions of gal of water for which people will pay almost any price. Structure it as a profit producing business and people will invest. The day is coming when people will need and want this water for agricultural use and personal survival they will pay whatever the price is.
Solar panels and wind generators is a no go, there is still several hundred years of fossil fuel sources left ,,, show me a business plan to sell water which will run out sooner than later.
Glenda Hawthorne via Texas Tribune on Facebook
STOP CORPORATE WELFARE! Corporations and the wealthy need to pay their fare share of taxes!!!!!!!!
Toni McNulty via Texas Tribune on Facebook
People who are afraid of rising water prices need to pay attention and make noise about how much water is wasted on golf courses, lawn watering, and big industries who do not conserve water. Strict water conservation policies and practices need to start now in homes and businesses everywhere.
C.g. David via Texas Tribune on Facebook
If they would use tax money properly the gov'ts would have enough money forever. Read the EDC Handbook at the AG site and follow the money in these groups, pathetic.
Jill Hinckley
Can we use the Rainy Day Fund to help fund this instead of bringing private companies into the public's water supplies?
I do not trust for-profit companies with a resource necessary to life.
Wally Parnel via Texas Tribune on Facebook
Over population of resources is the real truths. Developers from out of state, writing their own paychecks and sticking it to all of us, and out of control poor management of water.
raffaele cafagna
The proposed Lake Columbia WILL BE another Empty Lake just like all the other Lakes in Texas; These Retards don`t get it : it doesn`t rain in Texas ; there is not enough rain in Texas to fill the lakes . Have they seen how much water is left on all the lakes in Texas???? If it does not rain there is no water; at present time all the lakes and water reservoirs have lost * at least * 50% of their capacity; don`t they see it ??? Are they BLIND??????? There is not enough rain in Texas to keep the reservoirs at normal level ; what is their problem???????.. 64 billion gallons of water coming from what source ??magic ?? or maybe take it from here and move it there ??? Yoo idiots , stop wasting Texans taxpayers money , put your *RETARDED BRAINS * together and do something that works ; so follow my idea and suggestion.
Lt. Governor David Dewhurst
I would like to offer a good Idea that will make Texas and all Texians very proud.
I have tried many times to suggest this Idea to you and the Governor ; but the *Chain of Command * does not work or does not care.
So I am Trying again :Water is a serious problem here in Texas: but the Ocean is very close you can touch it ;so: Why not build a * Desalination Plant * that is * separation of salt from water *. This is old Technology from the 30s and 40s and I have seen it at work; today this particular Technology is simple and very efficient.So Why Not ?? After all you have built the *Cirquit of the Americas here in Austin that only the Rich can afford a decent ticket and the normal citizen can`t get close to it or afford it. Why Not ?? A desalination plant on our coast line with a pipeline that can bring water to all Texas , all Texians ,all farmers, all industrial complexes ( at this moment oil co. are using 1 Million Gallons of underground water per oil well ).Lt.Governor it does not take a Genious to figure out how long that underground water table will be depleted. Lt. Governor have you seen Interstate 35?? or the Corridor ??? What a Mess, what a * DISGRACE * that is opening Texas to the Invasion. If you can do that * INVASION * why not do a Desalination plant.???????A reply would be very appreciated, Thank you. Raffaele Cafagna