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Cascade Water Alliance outlines $1.1–$1.3 billion Cascade Supply Program and biennial rate plan
Summary
Cascade Water Alliance presented a planning‑level cost estimate of $1.1–$1.3 billion for a regional Cascade Supply Program pipeline that would provide long‑term supply resilience; the agency recommended a funding strategy including 9.5% rate increases in 2027 and 2028 and noted Bellevuewholesale costs make up roughly 27% of Bellevue's water operating budget.
Cascade Water Alliance officials briefed the Bellevue City Council on July 14 about the Cascade Supply Program, a multi‑decade regional effort to secure additional wholesale water supply and conveyance capacity. John Taylor, Cascade CEO, and Andy Baker, Cascade economist, presented planning‑level cost estimates and a proposed funding path.
Cascade staff reported that Bellevue purchases about 27% of its water supply from Cascade, representing roughly $24 million in 2026 wholesale payments. Lucy Liu, Bellevueutilities director, noted that passing through Cascade wholesale charges translates to roughly $2.50 per month for a typical Bellevue residential customer.
On the supply program, John Taylor described a three‑phase initiative to build a new conveyance to tap Tacoma's supplies, construct distribution infrastructure and, in the long term, develop Lake Tapps as a treated supply. Cascade's current planning‑level estimate for Phase 1 (pipeline, interties, chlorination and storage, and related land and operations facilities) is about $1.1 billion to $1.3 billion; Taylor cautioned the estimate is at a planning level and the project will not reach construction until around 2030 or later.
Andy Baker outlined a capital funding plan that proposes a moderately conservative rate path and bond issuance to support near‑term design and future construction. He said the recommended funding strategy includes approximately 9.5% rate increases in 2027 and 2028 (Cascade level) with rate smoothing to reduce longer‑term volatility; Cascade staff noted RCFC (regional capital facilities charges) increases would be phased in to avoid sharp shocks to development.
Council members asked how Cascade will engage affected communities, manage risks and pursue outside funding. Taylor and staff said they will develop a communications and outreach plan, use a risk register to track known issues, and target federal financing (such as WIFIA) once design milestones are met. Staff said the first design milestone is targeted in 2029 and construction could start in the early 2030s, with major cost estimate updates at design (2029–2030) and prior to construction.
Cascade and Bellevue staff emphasized assistance programs to soften impacts for low‑income households: Bellevue provides a range of bill assistance programs and Cascade proposed expanding utility bill assistance to additional households. Bellevue council members thanked Cascade for advanced planning and said they will remain engaged as the program proceeds.
Key facts recorded in the briefing: - Bellevue's 2026 wholesale payments to Cascade: about $24 million (Cascade supplies ~27% of Bellevue's water utility operating budget). - Cascade Phase 1 planning‑level cost estimate: $1.1–$1.3 billion. - Cascade recommended funding approach: rate smoothing and proposed biennial increases (about 9.5% in 2027 and 2028 at Cascade level) with phased RCFC increases. - Project timing: design milestone targeted in 2029; construction potentially in the early 2030s (estimates subject to change as design and route are refined).
