Sales to Fort Bliss

August 12, 2009

Public Service Board
El Paso Water Utilities
1154 Hawkins
El Paso, Texas 79925

Members of the Board,

On July 24, 2009, El Paso Water Utilities President/CEO Edmund Archuleta wrote:¹

As I stated in the meeting, Fort Bliss hired a rate consultant to represent their interests and he reviewed the wholesale rate study prepared by our consultant to ensure they were charged in a fair and equitable manner. The Utility does not lose money on this contract, but instead charges Fort Bliss their equitable and proportionate cost for this water; for the service provided. The current rate to Fort Bliss is $0.71 per ccf and will be updated annually once the contacts are signed. There is also no financial gain to Fort Bliss in the arrangement.

    
As usual, Mr. Archuleta is not telling the truth.³ The current rate to Fort Bliss is not $0.71 per CCF. The rates range from a low of $1.45 per CCF to a high of $4.87 per CCF.² EPWU has been billing Fort Bliss at retail rates for years.

Mr. Archuleta is covering up the fact that the new water supply contract will significantly reduce the rate to Fort Bliss and that El Paso citizens will be forced to make up the difference. El Paso Citizens will be committed to supply Fort Bliss with 4.4 million CCF of water a year (9MGD)¹ at a discount of somewhere between $.74 per CCF ($1.45 - .$71) and $4.16 per CCF ($4.87-$.71).

The total discount will be between $163 Million and $915 Million over the life of the contract if Fort Bliss takes 9MGD; between $90 Million and $508 Million if they take 5MGD; and between $18 Million and $101 Million if they take 1MGD. Brackish water is migrating into Fort Bliss wells and EPWU has committed to supply their potable water demand for 50 years.¹

The cost will be buried in water bills to unsuspecting El Paso citizens who had no voice in the process. The Public Service cannot allow the President/CEO to lie to citizens and shut off a their water if they are unable to pay for a secret subsidy to the U. S. Army.

Sincerely,

Jimmy W. Janacek
1. Letter from Edmund Archuleta dated July 24, 2009
2. July 2009 invoices from EPWU to Fort Bliss
3. https://www.citizensmakethecall.com/the_lies.htm