Western Irrigation Futures Customer Information sessions May 2010 Bacchus Marsh Irrigation District

1. Western Irrigation Futures Customer Information sessions May 2010 Bacchus Marsh Irrigation District

2. Today’s discussion… • Feedback from customer workshops and surveys • Key findings from WIF • Bulk water options • Infrastructure options investigated • On-farm management practices • Future water supply • Longer term • Next season • Next steps • Customer reference group

3. Recap… WIF Atlas Technical Workshops Customer Consultation Bulk Water Environment Infrastructure On farm Draft Options Paper Detailed Technical Work Final Options Paper Government / Agency consultation Today’s discussion Customer engagement and consultation

4. 1. Customer Feedback

5. What you told us you would like… • Key issues • Secure source of water • Sufficient volume to support historic production levels • Water at affordable price • Make recycled water available, and • Fix leaky channels • Other concerns raised • Farming viability • Agricultural practices • Future of the district And, we gave a commitment to keep you informed

6. 2. Key Findings:Bulk Water Supply Options

7. Bulk water options investigated • River water supply • Trading options • Connection to Goldfields super pipe • Supply to Pykes Creek reservoir • Supply direct to Bacchus Marsh • Reinstate Central Highlands Scheme • North/South pipeline • Macalister Irrigation District • Metro water • Accessing water from the Melbourne pool • Government announced access to 3,000ML for BMID • Recycled water • Supply from WTP • Caroline Springs • Other sources • Groundwater • Increasing bore numbers (allocation) • Accessing deeper aquifer

8. River water supply – climate scenarios… Lerderderg River Seasonal Inflows (at Sardine Creek)

9. Goldfields Superpipe • 760 mm diameter pipe • Urban supply for Ballarat • Water from Goulburn system via pipe to Bendigo • Pipe route located near top of Werribee catchment • 3 options • Pipe to upper Werribee • Reinstate Central Highlands scheme • Pipe to BMID

10. Trading options… • Purchase Goulburn Water • Pay transfer cost through via Bendigo and Goldfields Super pipe • Build connecting infrastructure

11. Trading options… • North South Pipeline • Government committed to maximum 75,000 ML/year cap • Commitment to Northern Irrigators that this would be maximum amount • Option to access water from northern Victoria not available • MID – Thomson Dam • 11,000 ML Entitlement on key rivers in the MID (trading zone) • 30% can be transferred across the system • Water must be purchased and water transferred through district. • Cost to transfer is $745 per ML for 2009/10. • Limited flow rate and timing of delivery

12. Metro water supply… • Available to access up to 3,000ML per year • Delivery via Western Water’s urban water supply system • Contract details • Supply by Agreement (Entitlement) with City West Water to SRW • Delivery agreement with Western Water • Access and pricing arrangements reviewed every five years • Price structure set by Essential Services Commission (ESC) • Same structure for all water authorities

13. Other Options… • Recycled Water • Caroline Springs • Option no longer available commitments made elsewhere in investment and usage and has high operating cost • Bacchus Marsh • Fully contracted by Western Water and • Fully committed in the future • Western Treatment Plant • Not economic – $50m pipe/pump investment plus • Cost to expand Class A plant • Groundwater • Merrimu – full allocated, hydro assessment no further water available • Parwan – full allocated, hydro assessment no further water available • Other – accessing groundwater elsewhere and pipeline to BMID is capital intensive and high risk

14. 2. Key Findings:Infrastructure Options

15. Infrastructure options …. Pipelining Piping from weir technically difficult due to flat grade Large pipes and low velocities Uncertainty if some existing pipes can take higher pressure Not costed Channel lining Lining of Werribee Vale Road channel unfeasible due to silting Liners damaged with silt removal Balancing Storage (320 ML) Cost $6.2m, plus 2 kilometre transfer pipe $1.5m Reconfiguration… Suggested at first workshops Focus on upgrading parts of the supply system Improve operational flexibility and reduce delivery losses

16. Total upgrade cost estimated $12.9m (assumes main channel mothballed) If option to include lining then section 5 & 3 are not needed. Section 7 - Channel lining from siphon to spur 12 cost approx $2.8m Section 6 – Balancing Storage Transfer Pipe Cost - $1.5M - Plus balancing storage cost approx $6.2m Infrastructure Options Section 5 – Connecting pipe spur 3/12 Cost - $1.26m Section 4 – Pipe section of spur 12 Cost - $1.4m Section 3 – Upgrade connection 2/2 to 5 Cost - $150k Section 2 – Abandon 10/5 Channel Section 1 – Werribee Vale Road Pipeline Cost - $2.4m

17. Infrastructure options …. • Reconfiguration option 1 – cost $12.9m • Interconnection of existing pipelines • Pipelining supply to Werribee Vale Road customers • Mothballing main channel • Balancing storage and transfer pipe • Pipe section of spur 12 • Expected efficiency 85% – 90% • Reconfiguration option 2 – $14.3m • Pipelining supply to Werribee Vale Road customers • Balancing storage and transfer pipe • Pipe section of spur 12 • Channel lining from siphon to spur 12 crossing • Expected efficiency 85% – 90%

18. 2. Key Findings:On-farmissues

19. On-farm issues addressed… • Commercial considerations • Cost of production • Choice, mix and rotation of crop types • Scale of operation and constraints • Land values, planning regulations and impacts of development on farming • Water resource availability • Security of water supply to grow crops • Scope to reduce water use by utilising other irrigation methods • Agronomy and water quality • Identification and costing of best practice requirements for irrigation, soil salinity and nutrient management • Environmental implications • Understanding of potential impacts on environmental assets • Social factors • Social, cultural, adoption of technology, management practices and business decisions

20. 3. Future Water Supply

21. Future supply options… • Government announced access to 3,000ML of metro water • Access limited to 10ML/d flow rate with possible reduction during peak demand days • Addition of balancing storage would provide ability to increase up to 20 ML/d during summer on limited days • Supply may include a mix of river water (when available), and metro water to maximise supply and flow rate and minimise losses

22. Water availability – 2011/12… • Water outlook 1 July 2010 • River water allocation likely to commence at 6% • Based on zero inflows and no deliveries • Emergency water supply not used by 30 June 2010 to be re-allocated • Supplementary options • Access a volume of the metro water for next season • Price is $1,357 per ML • Potential trading Options • Macalister trading • Trading with Werribee (if water balance OK)

23. BMID water balance – 2009/10 – *Remaining river water based on 14% allocation

24. BMID estimated water balance – 2010/11

25. Effective charges including usage from Metro system…

26. 4. Next steps

27. Consultation process… • Establish Customer Reference Groups • Separate groups for WID and BMID • Seek nominations • 1 WBMCCC for each group • 6 customer representatives for each group • Stakeholder representatives • Appoint independent chair • Terms of reference to include • Bulk water supply options • Pricing matters • Infrastructure issues (e.g. channels and storages) • Environmental matters • Contract matters (metro water supply)