2. Start with a tour
7000 acres of public land
That you have not yet seen
A native American trail passes east of town
Through deep ravines
Rich wildlife habitat
Ancient oaks
A Lincoln-era tavern and stagecoach stop
14. Carlyle reservoir, Illinois
Illinois soils are weak;
vulnerable to annual
drawdowns
7 ft in normal year
20 ft every 15 yrs
Eroding banks are huge
source of phosphorus
pollution
Hunter dam – only minimal
riprap planned
CWLP to “rely on tree roots”
20. Our dual-purpose lake
Coal plants require
additional 17 mgd
3 mgd treated water
2 mgd induced
evaporation
5 mgd priority
allocation
7 mgd to flush ashes
to Sugar Creek valley
How soon can coal be
phased out?
21. Toxic ash flushed into ash dams
along Sugar Creek floodplain
Lake Springfield
Ash
Ash
Ash
Ash
24. How they did it?
Conservation rates
Small “meter charge”
First few gallons very
cheap
Big rise from first to
last tier
CWLP +67%
Seattle +136%
Austin TX +375%
Orange Co. CA
+1300%
RESIDENTIAL
Price of last unit (ccf) purchased
Avg user Largest
CWLP $2.64 $2.74
Seattle $6.34 $11.80
Austin $5.68 $17.77
Los Angeles $4.96 $5.90
27. Financial risk of expanding capacity
in too-large chunks
Overpredict future demand
Raise rates to overbuild supply
Demand declines
Increase rates
Continue rate spiral
Seek bailout (Exelon) or go bankrupt (Dynegy)
Don’t bet your company on unrealistic growth
Remember Dallman 4
28. City’s fortunes tied to CWLP?
CWLP $327M
Local taxes $85M (property; sales; etc)
CWLP violated bond covenants 2012
Again in 2015?
29. What went wrong?
Bad management?
Over-reliance on
engineers vs
economists
Sunk cost fallacy
Bet the company on
grandiose vision
Last coal plant and last
big dam
Political meddling?
When business case
not apparent, citizens
Label it a boondoggle
Follow the money
Look for consultants
with vested interest
While promoters
blame the bureaucracy
30. Corps & EPA permits
“Corps officials will compare the construction of a lake to
other ways of obtaining the water, such as running a
pipeline to a river. Their goal is to pick the project that is
the least damaging to the environment but also
practical.” (Corps to City, July 1, 1996)
Predicted phosphorus concentrations in the reservoir
would exceed 2x the standard. (Illinois State Water
Survey, 1997)
32. 20 years to get a permit?
Failed in 1993
Cannot dam polluted streams
Virden, Pawnee & Divernon sewage flows to Hunter Dam
Failed in 2000: Environmental Impact Statement flawed
Compared oversized alternatives
Federal law:
Evaluate alternative ways to meet needs
Least environmental damage, but practical
Failed in 2007
Trying again in 2015
33. EPA not the villain
They are public servants, sworn to
faithfully execute…
Duty to enforce Clean Water Act
Risks: City ends up in federal court and
USEPA takes over IEPA administration of
Clean Water Act
34. The real villain
Agriculture is the only industry exempt from the
federal Clean Water Act
Farm Bureau successfully defends it 40 years
Entire burden of assuring safe drinking water
falls on urban citizens to remove
Fertilizers that cause blue baby syndrome
and toxic algal blooms in lakes
Sediment that fills water supply lakes
Pesticides and herbicides that cause cancer
35. Words of wisdom (Harvard)
Companies must start to recognize the
environment as a competitive
opportunity—not as an annoying cost or a
postponable threat.
Professor Michael E. Porter
Harvard Business School, 1995
36. Words of wisdom (local)
A warning about building a supplemental
water supply
“It would appear that before endorsing such an
outlay we should be reasonably sure it is fully
warranted. We must not be stampeded by fear,
nor by overenthusiasm in making a grand
showing of abundance to lure new industries
our way.”
Willis J. Spaulding, CWLP
handwritten notes dated July 11, 1956