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Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District. Today's discussion …. Key feedback from customer workshops and surveys Key findings from WIF Bulk water Infrastructure options Environment On-farm management Possible path forward

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Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

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  1. Western Irrigation Futures Customer Information Sessions May 2010 Werribee Irrigation District

  2. Today's discussion … • Key feedback from customer workshops and surveys • Key findings from WIF • Bulk water • Infrastructure options • Environment • On-farm management • Possible path forward • Water and channel system • Next steps • Customer reference group • Next season

  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 • Fit-for-purpose water • Sufficient volume to support historic production levels • Water at affordable price, and • Fix leaky channels • Other concerns raised • Farming viability • Agricultural practices • Future of the district

  6. 2. Key Findings:Bulk Water

  7. Bulk water options investigated… • River water • Desalination of recycled water • Reverse Osmosis (RO) • Nanofiltration (NF) • Electrodialysis Reversal/Ultra Violet • Trading options • North/South pipe line • Macalister Irrigation District • Metro water • Water from Melbourne Pool via entitlement or supply agreement • Recycled water • Continuation of supply from WTP • Enhancements • Storage • Increased flow rates • Groundwater • Storm water harvesting

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

  9. Salinity at Melton Reservoir and Werribee Weir…

  10. Desalination of recycled water… • 3 technology 0ptions Investigated… • Reverse Osmosis (RO) • Nanofiltration (NF) • Electrodialysis Reversal (EDR) and disinfection • Capital cost • based on taking salt from recycled water and mixing it with the standard recycled water • This is the cheapest option

  11. Desalination recycled water supply cost… • Assumptions… • 1500EC target • 65ML day supplied

  12. Trading options… • North South Pipeline • Government committed to maximum 75,000 ML • 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 • 30% can be transferred across the system • Water must be purchased and water transferred through district. • Cost to transfer is $430 per ML for 2009/10. • Must be delivered with another product (river / recycled water)

  13. Other options… • Groundwater • Fully allocated and currently not available • Deeper aquifer is salty and not suitable without high cost treatment • Storm water • MWC currently investigating storm water harvesting options that may provide water for irrigation in the long term

  14. 2. Key Findings:Infrastructure Options

  15. Infrastructure options …. • Pipelining • Options investigated included piping 44 km • Pumped pressure pipe system, and • Gravity piped system • $44m and subject to cost escalation • Has a life expectancy of 80 years • Provides highest efficiency 90%+ • Full cost recovery over 25 years

  16. Infrastructure options …. • Channel lining • Options investigated included • Lining with polypropylene roll out liners • Spray-on membrane liners • Life 25 years • Expected efficiency 85% • Cost ranges from $16m – $20m • Water measurement • Remote control regulators installed at key sites • Improve measurement and operation flexibility • Customer outlets – metering to use magflow meters • Total cost – approx $2m

  17. 2. Key Findings:Environmental issues

  18. On-farm issues … • 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 • Social factors • Social, cultural, adoption of technology, management practices and business decisions

  19. 3. Possible Path Forward

  20. Possible future supply approach… • Government announced access to 2000ML of Melbourne’s water • Potential to use most metro water in summer to reduce recycled water salinity to 1,600 EC’s • Total flow rate increased from 60ML/d to approximately 80ML/d • Potential to ‘bundle up’ and offer a ‘shandy’ (river / recycle / metro water) product at a single price from 2011/12 • Means everyone pays, everyone gets salinity benefit • We would only access metro water when • River water allocations are low and • Salinity is high • Supply may include a mix of river water (when available), recycled water and potable water to lower salinity • Channel lining, metering and some automation

  21. What does this mean for customers… • Improved outcome • More water available for irrigation • Access to lower salinity water to improve soil salinity and plant health • Reduced application of soil conditioners and other additives and therefore less on farm cost • Potential to increased on-farm production, yield and crop quality • Long term supply contract • Improved viability of farming • Leads to environmentally sustainable outcomes for the district • The trade off • Higher price for recycled /metro water • Greater take or pay commitment

  22. Recycled water… • Currently contracted to 2019 • MOU being developed with Melbourne Water • Revision of current agreement from 1 July 2011 for 20 to 25 years • Use current base price from the recycled plant (continued subsidy) • 60 ML day flow rate; 11,100ML per year contract volume – best endeavors above that (as per now) • Additional costs to be paid by growers for significant service improvements as determined via regulatory processes, e.g. • Storage (reliability) • Larger pipe and pump (higher flow rates ) • Desire for increased ‘take or pay’ component – currently 25% • Best endeavors reliability – as per now • Improvement options • Storage • Flow rate enhancements

  23. Effective price comparison…

  24. Effective charges…

  25. 4. Key FindingsNext steps

  26. Consultation process… • Establish Customer Reference Groups • 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 (recycled water, other bulk supplies) • How do you get onto the Customer Reference Group?

  27. SRW in consultation with CRG… • Finalise district strategy • Communicate strategy to all customers • Develop new customer contracts • Develop business case to support infrastructure investment • Implement strategy • Transition to new operating arrangements 2011-2013

  28. District update… • Recycled water supply • Continue supply up to 68ML day • River water • Expect minimum 6% starting allocation • Expect water quality to improve with increase in allocation • Metro water • Available for next season • Discussion required on how this is offered • Delivery price in the order of $960 per ML for 2010/11 • Detail to be worked through with CRG

  29. Questions?

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