Columbia Power & Water Systems (CPWS) continues to move forward with the process of obtaining funding for its Long-Term Water Supply Program, approving a resolution at the April meeting of the Board of Public Utilities to accept the terms of a loan through the State Revolving Fund (SRF) of $75 million.
The resolution will now go before the Columbia City Council next month for approval, which then allows the Tennessee Land Development Authority to take up the matter in June for approval. No funds are expected to be drawn until late Summer or early Fall 2026.
The SRF is a loan program through the Environmental Protection Agency and is administered to water utilities across the state by the Tennessee Department of Environment and Conservation (TDEC).
This loan is the first of two loans CPWS expects to receive from the fund, with another $60 million expected in the next fiscal year.
With this money, CPWS will construct a water treatment plant in conjunction with its intake and raw water pipeline that makes up the program. The loan allows the utility to stay in compliance with the federal Safe Drinking Water Act by increasing water treatment capacity above the current 20 million gallons per day for which it is permitted.
CPWS Chief Financial Officer, Ashley Maddux, said interest rates for the SRF loans are based on median household income, which means the rate will be in the low-3’s, much lower than the rates available on the public bond market.
Other business, the board:
- Approved a new rate structure for CPWS Internet commercial customers, decreasing prices to the 3-year contract price for all customers regardless of whether a contract is in place or not.
- Approved the purchase of a generator to replace the current main office generator at a cost not to exceed $171,263.40
- Approved the adoption of the Water Conservation Plan.