The Commonwealth Utilities Corp. must build up its financial reserves to fund and implement the drinking water and wastewater master plan, according to U.S. Environmental Protection Agency project coordinator John Tinger.
In a declaration filed in federal court, Tinger said the financial reserves are needed for emergency operations and maintenance.
“CUC must establish a rate structure to generate sufficient revenues,” he said.
Tinger’s declaration was in support of the U.S. government’s February 2017 status report on CUC projects.
Tinger pointed out that stipulated order 1 requires CUC to have an interim financial plan and a final financial plan that will generate enough revenue to cover compliance activities, the stipulated orders, and measures necessary to ensure compliance with the Clean Water Act and Safe Drinking Water Act.
Stipulated order 1 also requires CUC to have an EPA-approved comprehensive drinking water and wastewater master plan to determine current and future infrastructure needs for a 20-year period, and to provide a long-term plan for CUC’s drinking water and wastewater system improvements.
As part of his responsibilities, Tinger conducted inspections and site reviews of CUC’s Agingan and Sadog Tasi sewage treatment plants, collection system, pump stations, and water tanks.