WSP00180 - Laserfiche WebLink

Home Browse Search

. . ~ ~ becomes clear that a beneficial consumptive use is a more effective ~ salinity control measure than many structural control methods or non- ~ beneficial evaporative disposal. The specific example this study examines, reuse of saline or low qUality water for electric power plant cooling, is subject to the pecu- liar institutional and regulatory environment of a regulated utility. There are several instances in the Colorado River Basin of electric power plants reusing low quality water, and these experiences provide us with the information that such water use adds only 2.5 to 3.0 per- cent to the consumer cost of electricity per kWh. Because these reuse experiences have occurred only where there was no other water avail- able, they cannot illustrate the institutional-regulatory environment's position toward non-required reuse. Investor-owned electric power utilities, in each of the seven CRE states, are subject to the authority of each state's utility regula- tory commission. With the exception of California, these state com- missions are unlikely to allow the incremental costs of voluntary low quality water reuse to be passed through the rate structure to con- sumers. Only outside financial assistance which covers the incre- mental costs of reuse is an acceptable alternative to all the state regulatory commissions and to the Federal Energy Regulatory Commission. The utility regulatory commissions perceive their. role to be to provide consumers with reliable electric power at the lowest cost sustainable. However, the other state agencies which can influence electric power production generally respond to wider influences, Six of the seven CRB state water allocation agencies encourage water reuse in determining beneficial uses of water. And all CRB states are expected to adopt the Forum policy calling for industrial water reuse wherever possible. In addition, all the states except Colorado and Utah have industrial or energy siting agencies which can exercise great influence over the construction of new electric power plants, including determining the acceptability of a water supply or use. Finally, federal policy requirements regarding water conservation and responsibility for no-salt return standards on the Colorado River enhance the impetus toward reuse of low quality water. Thus a policy leaning toward reuse of low quality water exists outside of the direct utility regulatory environment. That voluntary policy is not sufficient to offset the potential economic costs of reuse to a utility which would not likely be reimbursed. Financial incentives to offset those costs must be established if reuse is to be achieved. These range from federal or state and local tax incentives to direct subsidies for capital costs or operating and maintenance costs to the less clearly defined administrative incentives that reduce costs by accelerating the permitting or siting process or providing a 9