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Wastewater chemical costs spike — DPW cites 230% methanol increase — officials weigh alternatives
Summary
DPW told council that costs for key wastewater-treatment chemicals such as methanol have risen sharply, with methanol costs up about 230%, driving a multi‑million-dollar increase in operating costs for wastewater treatment.
Councilwoman Porter asked DPW to explain a 6% increase in chemical supplies in Service 673 for wastewater management.
Michael Holman, deputy bureau head for water and wastewater, said several chemicals used in treatment have experienced steep price increases since the COVID-19 pandemic and cited methanol as a major driver. "Our methanol is used as a carbon source for our denitrification process…that cost alone has gone up 230%," Holman said, noting where methanol costs were previously lower and are now a much larger line item. Holman estimated methanol costs this year in the range of $8–8.5 million where the city previously spent roughly $3–4 million.
Council members asked whether alternatives or operational changes could reduce chemical costs. DPW staff said alternatives exist in theory but would need evaluation: some non‑methanol carbon sources might be cheaper, but any switch has to be evaluated for treatment effectiveness and potential offsetting costs, including higher energy use if additional aeration or mechanical changes are needed.
Holman said DPW is reviewing process optimizations and potential operational changes that could reduce chemical reliance, but emphasized such changes require full technical analysis and could shift costs between chemicals, electricity and equipment.
Ending: DPW said it will continue to examine alternatives and trade-offs, and noted the chemical-cost spike contributes to the department’s overall operating pressures and to the FY26 rate proposal.
