San Antonio

San Antonio Water System Bets on Backup, $155M Upgrades and Energy Sales Fusion Following State Mandate After 2021 Storm

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Published on December 06, 2023
San Antonio Water System Bets on Backup, $155M Upgrades and Energy Sales Fusion Following State Mandate After 2021 StormSource: San Antonio Water System Official Website

San Antonio's water system is getting a hefty $155 million upgrade with backup power generators, aiming to keep taps flowing during outages. This move follows the Texas Legislature's response to the notorious February 2021 winter storm that left many without power or water and spurred a mandate for utilities to strengthen their preparedness for natural disasters, according to the San Antonio Express-News.

The San Antonio Water System (SAWS) board's approval of the contract with Wampole-Miller Inc. sets the course for the installation of natural gas generators at multiple pump stations, a plan that also includes a shared operation with city-owned electric utility CPS Energy. The partnership allows CPS to sell power in normal conditions, with some of the revenue offsetting the costs for SAWS, the San Antonio Express-News reported.

The effort is part of a broader Emergency Preparedness Plan instigated by the Texas Commission on Environmental Quality, which called for updated emergency strategies after Winter Storm Uri took a toll on the state's infrastructure, causing widespread power and water disruptions. SAWS and CPS Energy came to a consensus in a joint meeting, with a split cost of about $202 million for the entirety of the program. "This is an indication of our two public utilities' working together for the betterment of our customers," SAWS CEO Robert Puente said in a statement to San Antonio Express News.

New technology and concerns about climate impact were raised by critics at the board meeting. Terry Burns, former chairman of the Sierra Club's Alamo Group, said purchasing natural gas generators will contribute to pollution and may soon be obsolete. "It’s a sad day for ratepayers and citizens of San Antonio," he declared. Despite the pushback, board President Jelynne LeBlanc Jamison defended the move, stating there weren't viable alternatives that could meet state requirements at the utility's scale, as seen in the San Antonio Express-News.

The long-term plan involves CPS Energy managing the generator operations for 20 years once the systems are up, after which SAWS will regain operational control. The utility plans to use smart market analysis to run the generators, capitalizing on times when selling to the Texas grid is most profitable and funneling that revenue into maintenance and offsetting generator costs. SAWS Chairwoman Jamison sees this step as just the beginning, stating, "I think this will be a starting point for us to talk about more complex projects that really get to the root of energy and water reduction for our community," she said, per the San Antonio Express-News.