Stamford mayor speaks on Tenaska deal

July 14, 2011

Tenaska Trailblazer Energy Center

The City of Stamford will maintain long-term water security and gain needed new revenue through the City’s sale of excess water and treated wastewater to the energy company Tenaska, in an agreement City Council members unanimously passed at a special meeting held Tuesday, July 12. Under the agreement, the City would supply a portion of the water sought for the Tenaska Trailblazer Energy Center under development East of Sweetwater, Texas.
Mayor Johnny Anders said the City had negotiated terms for the sale of Stamford’s treated municipal wastewater and excess water from Lake Stamford to Tenaska.
“This is a good deal for Stamford, both immediately and potentially long term,” Anders said. “It helps us ensure that we will continue to have a reliable supply of water for the future at the least cost to water customers and taxpayers.”
The Mayor said that the agreement results in an immediate payment of $100,000 to the City long before the City provides any water to Tenaska. That payment provides Tenaska a two-year option. Thereafter, if Tenaska wishes to maintain its rights, it will pay annual option fees which could potentially provide significant additional revenues to the City without the City actually delivering any water. During the three years beginning in 2013, the fee is $100,000 per year. During the three years beginning in 2016, the fee is $200,000 per year.
If Tenaska exercises its option for the water and treated wastewater, the City will receive additional significant financial benefits which include:
• Tenaska’s payment to the City of $200,000 per year (increased by an inflation factor).
• Tenaska’s payment of the costs of upgrading or replacing the existing in take facilities and water line from Lake Stamford to the City’s water treatment plant.
• Tenaska’s payment of the City’s share of the costs of operating and maintaining the California Creek diversion facilities which provide additional water to Lake Stamford.
• Tenaska’s payment of all acquisition, capital and operating costs of the land facilities needed to transport water and treated wastewater to Tenaska.
“Right now, we have no customers using our treated wastewater. Neither that treated wastewater nor excess water in Lake Stamford is providing any financial benefit to the City,” Anders said. “This water is a valuable asset we can now use to add dollars into our city budget.”
In advance of the City Council’s vote on the agreement, the City and Tenaska sponsored an open house to present terms of the agreement, as well as information about the planned Tenaska Trailblazer Energy Center.

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