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CCUA: Keystone plant expansion estimate rises to over $9 million; capacity fees could triple
Summary
Clay County Utility Authority told Keystone Heights leaders that a planned plant expansion now exceeds $9 million, which could raise capacity fees from roughly $5,000 to about $15,000 per connection; CCUA urged phased study and grant coordination.
Clay County Utility Authority Director Mr. Johnson told the Keystone Heights workshop on May 12 that design work produced a final opinion of construction cost ‘‘over $9,000,000,’’ up from earlier expectations of roughly $7,000,000. The authority said that the higher cost would materially increase the capacity fee charged for each equivalent residential connection (ERC) and stressed the need to evaluate options through value engineering and grant pursuit.
‘‘That $2,000,000 swing is obviously very big,’’ Mr. Johnson said, adding that dividing the larger project cost by the number of ERCs served would drive a capacity fee ‘‘over $15,000’’ versus CCUA’s current capacity fees of around $5,000. He warned that high capital cost estimates and uncertain household participation levels create a risk of ‘‘stranded assets’’ if a large plant is built without matching load and that CCUA is examining smaller phased options and funding partnerships to reduce risk and improve grant competitiveness.
