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HomeMy WebLinkAboutAlternate Water Plan 12-7-16�. DUKE ENERGY. December 7, 2016 Harry K Sideris Senior Vice-Prestdent Environmental, Health & Safety 526 South Church Street Mall Code ECUP RFcrP''D Charlotte, NC 26202 CM,ce Of si;a :'3Cretary 704-382-43M D `C 7 u o Dr. Donald R. van der Vaart North Carolina Department of Environmental Quality 1601 Mail Service Center Deperfmenf of Environment Raleigh, North Carolina 27699-1601 and Ndural Resouwces Subject: Submittal of Duke's HB630 Proposed Plans for Allen, Belews Creek, Buck, Cape Fear, Dan River, HF Lee, Marshall, Mayo, Riverbend, Rogers Energy Complex, Roxboro and Weatherspoon Dear Secretary van der Vaart: House Bill 630 requires Duke Energy to submit by December 15, 2016, plans for the provision of permanent water to eligible households located within one-half mile of the ash basin compliance boundaries. As indicated in my September 7 letter to you, submittal of site - specific plans as they are ready will result in the most expeditious review. Today, we're submitting proposed permanent water supply plans for the eligible households surrounding Allen, Belews Creek, Buck, Cape Fear, Dan River, HF Lee, Marshall, Mayo, Riverbend, Rogers Energy Complex (Cliffside), Roxboro and Weatherspoon; these plans follow the protocol approved by the department on September 22. Dewberry, a respected outside engineering firm, evaluated the connection of eligible households to the local potable water system. Duke Energy used the Dewberry assessment to develop proposed permanent water supply plans that would ensure eligible households receive a long-term, high -quality water supply that is also cost effective. Connection to a public water supply is recommended for the majority of the households surrounding Allen, Buck, Marshall, Rogers and Weatherspoon; there are a few households for whom the recommendation is a whole -house water treatment system due to water -quality concerns and/or prohibitive installation cost. Connection to a public water supply is recommended for all of the household surrounding Dan River, Cape Fear, and HF Lee. Residents near Belews Creek, Mayo and Roxboro live in a much more rural area, far from public water lines, making it technically difficult and cost prohibitive to extend that service and maintain water quality over great distances. Duke's recommendation is that those residents be offered water treatment systems. There are no eligible residents near Riverbend. Duke is currently soliciting bids for an ion filtration water treatment system. To ensure that the residents receive a system that addresses the constituents that were identified in 2015 as potentially being adverse to human health, we set the performance standard for arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium at either one-half of the MCL, or the appropriate state standard, whichever is more protective. The NCDEQ Staff recently requested GIS files that correspond to the proposed plans for each location. Duke is currently pulling together the GIS information and it will be submitted directly to NCDEQ staff as it is available; as this request was not part of the original requirement of HB630, it may be delivered in the weeks following December 15. Permanent'water supply plans for the remaining locations will be submitted in the coming weeks. I look forward to receiving the agency's feedback on our proposed plans. If you have comments and/or questions, please direct them to me at 704-382-4303. Sincerely, Harry K. Sideris Senior Vice -President Environmental, Health & Safety Enclosure: Permanent Water Supply Proposals to DEQ and associated Dewberry Phase II Potable Water Programmatic Evaluation for Allen, Belews Creek, Buck, Cape Fear, Dan River, HF Lee, Marshall, Mayo, Riverbend, Rogers Energy Complex, Roxboro and Weatherspoon xc: Tom Reeder, Asst. Secretary for the Environment Permanent Water Supply Proposal to DEQ- Allen Allen Steam Station Gaston County 272 eligible households; 3 community supply wells Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.21 1 (cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the 1/2 mile compliance buffer described in H9630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Although HB630 indicates that households are to be covered, Duke Energy has included four (4) offices/businesses as eligible locations. In addition, Aqua North Carolina serves 77 households from three (3) public community wells located within the'/2 mile boundary. Although Aqua is already providing these households with a public water supply, Duke Energy has included the Aqua North Carolina community wells and the households they serve as eligible. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that 193 eligible households and businesses be offered the option of a connection to the City of Belmont water supply or the installation of a water treatment system, Duke Energy also proposes that an interconnection between the City of Belmont and the three Aqua North Carolina systems be offered to Aqua, who would then continue to serve their 77 current potable water customers. Duke Energy is recommending that the household on Plant Allen Road be offered a water treatment system (labeled as property 195 in the Dewberry evaluation, with the potential water main shown as being run along Boat Club Road). The City of Belmont already has municipal lines located along South Point Road and Armstrong Road; therefore, some of the households would require only service lines. Water line extensions would be required along Canal Road (approximately 475 feet); Wildfire Lane (and remaining roads in the subdivision with the furthest household approximately 1,750 feet from the current main); Warren Drive (and remaining roads in the subdivision with the furthest household approximately 1,475 feet from the main); Lake Mist Drive (and remaining roads in the subdivision with the furthest household approximately 1,460 feet from the main); Wingpoint Drive (and remaining roads in the subdivision with furthest household approximately 3,500 feet from the main), and Reese Wilson Road (and remaining roads in the subdivision, with the furthest household approximately 4,660 feet from the main). �� ENI ERRGY. Permanent Water Supply Proposal to DEQ -Allen A water treatment system is being recommended for the household on Plant Allen Road. While the City of Belmont did not indicate any issues related to water quality for the system as a whole, serving one household at the end of a 3,000-foot line down Boat Club Road may result in water quality concerns due to low water usage. Also, running a municipal line to just this one household is estimated at $212,000. The cost estimate indicates that running the line to this household is cost prohibitive. Total costs shown in the table below exclude costs associated with running a public water supply line to this location; therefore, the costs below are different than the costs included in Appendix D of the Dewberry evaluation. Estimates prepared by Dewberry, in conjunction with design information provided by the local water municipality, have revealed that the three Aqua wells and at least 130 of the remaining eligible households must accept connection to the public water supply for such connection to be cost-effective. Accordingly, Duke Energy proposes that if less than 130 eligible households and the three Aqua wells accept a connection to a public water supply, then Duke Energy will reevaluate the system and propose an alternative proposal to NCDEQ. Dewberry's cost estimate also assumes that Aqua North America will have an interconnect to the City of Belmont and will continue to serve their customers through the interconnected system. If the Cityof Belmont requires Aqua to replace the existing water distribution system and the system becomes cost prohibitive, Duke Energy will notify NCDEQ. From initial discussions with the City of Belmont and an evaluation of the system by Dewberry, the City of Belmont has adequate water capacity and the water quality could be maintained utilizing their current flushing schedule. The cost estimate includes the installation of automatic flushing devices. The City of Belmont did indicate concerns over maintaining desirable customer pressure in the southern part of their system, but Dewberry's evaluation concluded that adding the households in this proposed plan would not adversely affect the overall water pressure in the system. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL, or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households, or the final number of households opting for public water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for �' ENERGY. Permanent Water Supply Proposal to DEQ -Allen evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner(s) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the Yz mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. The Dewberry evaluation includes a project schedule based on their past experience installing public water systems. This preliminary project schedule indicates that a permanent water supply will be available by September 2018. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with the local municipality and a more detailed schedule will be developed. If the municipality's schedule shows an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. *-,DUKE V ENERGY. Permanent Water Supply Proposal to DEQ - Alien Public Water Supply Ion Filtration Water Connection Treatment System Total Number Recommended _ 271 households,3 t 1 community supply wells Water Quaft Criteria Meets applicable water quality Yes Yes standards Federal MCLs Completion Schedule — Estimated completion date 09/2018 0812017 Request extension to 10/2019 Contingency factors and/or install water treatment NIA stems until One is complete Operational Considerations Required acceptance level to achieve consistent water quality and t N/A NIA supply- Required acceptance level to achieve targeted cost per eligible M/6 (4 80 households plus 3 N/A household <$35k/househol Aqua wells) Location of households relative to 200 R — 4,660 ft existing municipal water Tines 0.04 miles — 0.88 miles ._ N/A Only household on road Assumes interconnect Other considerations between Aqua system and to be connected to new City of Belmont waterline Costs -- Total Installation Costs $7,2258,000 $7 000 - $10 000 Approximate cost per eligible household $26,800 $7,000 - $10,000 Annual Maintenance Costs NIA $500 - $2 000 Maintenance cost per household _ NIA $500 - $2,000 annual Non -Duke Costs Total estimated water bills month $21,o92 N/A Estimated water bills monthly per household ( Aqua O&M surcharge is $73, $90 Aqua customers N/A estimated Ongoing municipality costs for maintenance and flushing due to TBD N/A low-flow/low-usa Total Costs Duke and Non -Duke Total estimated cost for all eligible neighbors over 10ears $9,789,040 $12,000 - $30,000 Total estimated cost for each eligible _ neighbors over 10 years $35,120 $12,000 - $30,000 DUKE ENERGY. Permanent Water Supply Proposal to DEQ — Beleivs Creek Belews Creek Steam Station Stokes County 58 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.21 1 (cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the''Y2 mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Although HB630 indicates that households are to be covered, Duke Energy has included two (2) schools/churches and one (1) business as eligible locations. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. During their evaluation, Dewberry recommended that 19 of the eligible households be excluded from the municipal water line evaluation. In order to connect those households, the public water supply line would require crossing a large water canal and a bridge crossing, both of which would be technically complicated, time consuming and costly. These 19 homes were excluded from the Dewberry cost estimate. The Town of Walnut Cove purchases water from the Winston-Salem/Forsyth County Utilities through Stokes County and has conceptually agreed to allow for another interconnect with Stokes County to provide water to the households around the Belews Creek Station. System modifications including a pressure boosting station and additional disinfection may be required to provide water at a sufficient pressure and quality. While the closest existing municipal line terminates at the intersection of Martin Luther King Jr. Road and Crestview Drive, Dewberry has determined that the current water main on Martin Luther King Jr. Road would need to be replaced starting at the intersection of this road with NC- 65. The closest new household connection is approximately 16,500 feet (3.1 miles) from the intersection of Martin Luther King Jr. Road and NC-65. The furthest household, located on Middleton Loop, is approximately 22,000 feet (4.2 miles) from the intersection. The estimated cost to provide a municipal line to the 39 households is $4,800,000, or $123,000 per household. The Dewberry evaluation includes a project schedule based their past experience installing public water systems. This preliminary project schedule indicates that a public water supply could be available through the Town of Walnut Cove by December 2018, which does not meet the October 2018 deadline. ('.DUKE ` ENERGY. Permanent Water Supply Proposal to DEQ — Beleivs Creek Based on the results of the Dewberry evaluation, the concerns over water line pressure and the additional disinfection needed, and the overall construction costs, Duke Energy proposes that all 58 households be offered a water treatment system. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for evaluation and approval. Well owners will be responsible for making the decision for their parcels. Only households within the Y2 mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. rhj DUKE i ENERGY. Permanent Water Supply Proposal to DEQ - Be/ews Creek Ion Filtration Water Treatment System Total Number Recommended 58 Water Quality Criteria Meets applicable water quality Yes standards Federal MCLs Completion Schedule Estimated completion date i 1212017 Contingency factors N/A Operational Considerations Required acceptance level to achieve consistent water N/A cluality and s Required acceptance level to achieve targeted cost per N/A eligible household a$35k/househol Location of households relative to existing municipal N/A water lines Other considerations Costs Total Installation Costs, 00a- 580 OOD Approximate cost per eligible $7,000 - $10,000 household Annual Maintenance Costs $29 000 - $116 000 Maintenance cost per household annually $500 - $2,000 Non -Duke Costs Total estimated water bills monthly N/A Estimated water bills monthly per household Ongoing municipality costs for N/A _ maintenance and flushing due N/A to low-flow/low-usage Total Costs _ (Duke and Non -Duke) i Total estimated cost for all eligible neighbors over 10 $695,000- Years $1,740,00 Total estimated cost for each eligible neighbors over 10 Dears $12,000-$30,000 1 (DUKE k ENERGY. Permanent Water Supply Proposal to DEQ- Buck Buck Steam Station Rowan County 189 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.21 1 (cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the mile compliance buffer described in HB630 and if the household currently utilized well water as the drinking water source. Although HB630 indicates that households are to be covered, Duke Energy has included four (4) parcels that are schools and/or churches within the eligible listing. Undeveloped parcels were identified but were not considered "eligible" because wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that 188 eligible households and/or schools near Buck be offered the option of a connection to a public water supply or installation of a water treatment system, and one (1) eligible household (identified as household 256 in the Dewberry evaluation) be offered a water treatment system. The closest existing Salisbury Rowan Utilities (SRU) line is located near the intersection of 1-85 and Long Ferry Road. The closest household is approximately 4,700 feet (0.89 miles) from the current line. The furthest household is approximately 15,000 feet (2.84 miles) from the current line. It should also be noted that Rowan County already has had discussions with a number of households on expanding the water distribution system in the vicinity of the Buck Steam Station. A water treatment system is being recommended for household 256, located off of Leonard Road, due to concern over water quality as the distance between that household and the next closest household being offered municipal water is approximately 4,800 feet (0.91 miles); this is also the household that is furthest from the current line. The cost to run the water line to this home is approximately $389,000. Total costs shown in the table below exclude costs associated with running a public water supply line to household 256; therefore the costs below are different than the costs included in Appendix D of the Dewberry evaluation. If household 256 is excluded from the public water installation, the furthest household is approximately 14,500 feet (2.75 miles) from the current line. Estimates prepared by Dewberry, in conjunction with design information provided by the local water municipality, have revealed that at least 142 of eligible households must accept connection to the public water supply for such connection to ensure a long-term, high quality water supply and to be cost effective. Accordingly, Duke Energy proposes that if fewer than 142 of households around the plant accept a connection to a public water supply, then all eligible ��DUKE ENERGY. Permanent Water Supply Proposal to DEQ - Suck households near the plant be offered installation and maintenance of a water treatment system to ensure water safety related to quality issues that can arise with low water usage. From initial discussions with Rowan County and SRU and an evaluation of the system by Dewberry, additional flushing of the line may be required to maintain water quality due to the number of households connected to each line. The amount of flushing required, and whether water quality would be maintained on a line with minimal connections, will continue to be evaluated with Rowan County and SRU as Duke Energy receives feedback from well owners on their preferred method of permanent replacement water supply. Also, since this will be a new system for Rowan County, the monthly water rate will be dependent upon the number of households which choose to be connected to the municipal line. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL, or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households, or the final number of households opting for municipal water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise the plan and submit the pertinent information to NCDEQ for evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner(s) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of 1-18630. The Dewberry evaluation includes a project schedule based on Dewberry's past experience installing public water systems. This preliminary schedule indicates that a permanent water supply will not be available until November 2018, which does not meet the October 15, 2018 deadline in HB630. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with Rowan County and a more detailed schedule will be developed. If Rowan County's schedule continues to show an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. �� ENERGY. Permanent Water Supply Proposal to DEQ - Back I Public Water Supply Ion Filtration Water Connection Treatment System Total Number Recommended Water Quality Criteria Meets applicable water quality standards (Federal MCLs) Yes Yes —` Completion Schedule Estimated completion date 11/2018 06/2017 Request extension to 1012D19 Contingency factors and/or install water treatment N/A stems until line is complete erational Considerations Required acceptance level to achieve consistent water quality and N/A per SRU but will continue j N/A supply to be evaluated Required acceptance level to — ------ — achieve targeted cost per eligible 76% (142 households) N/A household (<$35k/hous0o1d) Location of households relative to existing municipal water lines O,gg _ 275 miles N/A A water line project is already Approx 0.91 miles from Other considerations planned for portions of this closest proposed community munic al connection Costs ..-._. _._.._ Total Installation Costs $4 970 000 $7 000 - $10 000 Approximate cost per eligible household $26,200 $7,000-$10,000 Annual Maintenance Costs N/A $500 - $ 000 Maintenance cost per household i annually N/A $500 - $2,000 Non -Duke Costs Total estimated water bills monthly $9,400 N/A Estimated water bills monthly per household $50 NIA Ongoing municipality costs for maintenance and flushing due to TBD N/A low-flow/low-usage Total Costs Duke and Non -Duke Total estimated cost for all eligible neighbors over 10 years $6,098,000 $12,000 - $30,000 Total estimated cost for each eligible net hbors over 10 ears $32 400 $12 D00 - $30,O00 `��DU KE ENERGY. Permanent Water Supply Proposal to DEQ — Cape Fear Cape Fear Steam Station Chatham County 4 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.211(cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that the four (4) eligible households near Cape Fear be offered the option of a connection to a public water supply or the installation of a water treatment system. Chatham County already has a municipal line located along Corinth Road; therefore the households would require only service lines, ranging from approximately 140 feet to 800 feet. Since only service lines are required, no minimum number is needed for the installations to remain cost-effective. From initial discussions with Chatham County and evaluation of the system by Dewberry, the current system has adequate water capacity and the water quality could be maintained with the addition of the eligible households. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL, or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort :(� DUKE ~ ' ENERGY. Permanent Water Supply Pruposal to DEQ — Cape Fear conducted upon approval of this plan by NCDEQ. If the final number of households, or the final number of households opting for public water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner(s) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the '/2 mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. The Dewberry evaluation includes a project schedule based on their past experience installing public water systems. The preliminary project schedule indicates that a permanent water supply will be available by May 2017. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with the local municipality and a more detailed schedule will be developed. The schedule will also depend on the time required to educate the eligible households on their choices. If the installation schedule shows an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. ,(-� DUKE VENERGY. Permanent Water Supply Proposal to DEQ— Cape Fear Public Water Supply Connection Total Number Recommended 4 WaterQuali Criteria Meets applicable water quality standards Federal MCLs Yes Completion Schedule Estimated com letion date 05/2017 Request extension to 102019 Contingency factors and/or install water treatment stem until line is complete Operational Considerations Required acceptance level to achieve consistent water quality and N/A s Required acceptance level to achieve targeted cost per eligible N/A household <$35k/household Location of households relative to municipal water lines 140 it — 800 It.existi Other considerations Costs Total Installation Costs $76 000 Approximate cost per eligible household $19,000 Annual Maintenance Costs N/A Maintenance cost per household annual) N/A Non -Duke Costs Total estimated water bills month $200 Estimated water bills monthly per household $50 Ongoing municipality costs for maintenance and flushing due to NIA low-flow/low-usage Total Costs Duke and Non -Duke Total estimated cost for all eligible nei hbors over 10 ears $100,000 Total estimated cost for each eligible $25;OD0 nei hbors over 10 ears 'V EENR Y. Permanent Water Supply Proposal to DEQ— Dan River Dan River Steam Station Rockingham County 1 eligible household Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.211(cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the''/s mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation and cost estimate. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that the one eligible household near the Dan River Station be offered the option of a connection to a public water supply or the installation of a water treatment system. The City of Eden already has a municipal line located along South Edgewood Road; therefore the household would require only a service line of approximately 300 feet. From discussions with the City of Eden and evaluation of the system by Dewberry, the current system has adequate water capacity and the water quality could be maintained with the addition of the eligible household. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL, or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households, or the final number of households opting for public water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for evaluation and approval. Well owners will be responsible for making the decision for their *-.,DUKE ENERGY. Permanent Water Supply Proposal to DEQ — Dan River parcels. Only households within the''/a mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of H6630. The Dewberry evaluation did not include a project schedule since only a service line connection is required, but it is anticipated that the service line can be installed before August 2017. Public Water Supply Connection Total Number Recommended 1 Water Quality Criteria Meets applicable water quality standards federal MCLO Yes Completion Schedule _ Estimated completion date 08/2017 Request extension to 10/2019 Contingency factors and/or install water treatment _Elfstern until line is complete erational Considerations Required acceptance level to j achieve consistent water quality and N/A supely Required acceptance level to achieve targeted cost per eligible N/A household <$35k/household Location of households relative to munic' al water lines 300 ft.existi Other considerations Costs Total Installation Costs $9,000 Approximate cost per eligible household $g,ODO Annual Maintenance Costs N/A Maintenance cost per household annual) N/A Non -Duke Costs Total estimated water bills month[ $55 Estimated water bills monthly per household $55 Ongoing municipality costs for maintenance and flushing due to TBD low-flow/low-us e Total Costs Duke and Non -Duke Total estimated cost for all eligible neighbors over 10 ears $15,600 Total estimated cost for each eligible neighbors over 10 ears $15 600 " ER P EENERGY. Permanent Water Supply Proposal to DEQ — HF Lee HF Lee Steam Station Wayne County 42 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309,21 1 (cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the 1/ mile compliance buffer described in H8630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that all 42 eligible households near HF Lee be offered the option of a connection to a public water supply or the installation of a water treatment system. The Fork Township Sanitary District already has a municipal line located along Old Smithfield Road, Pate Circle, Friendly Drive, Rosewood Road, and Ferry Bridge Road; therefore the majority of the households would require only service lines. A water line extension would be required along Rosewood Road (approximately 1800 feet). Estimates prepared by Dewberry, in conjunction with design information provided by the local water municipality, have revealed that at least 26 eligible households must accept connection to the public water supply for such connection to be cost-effective. Accordingly, Duke Energy proposes that if less than 26 households around the plant accept a connection to a public water supply, then all eligible households near the plant be offered installation and maintenance of a water treatment system to ensure a cost effective, long-term high quality water supply. From initial discussions with the Fork Township Sanitary District and evaluation of the system by Dewberry, the current system has adequate water capacity and the water quality could be maintained with the addition of the eligible households. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL, or the appropriate state standard, whichever is more protective. ��DUKE ENERGY. Permanent Water SupP41' Proposal to DEQ — IIF Lee Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households, or the final number of households opting for public water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner(s) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the '/z mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. The Dewberry evaluation includes a project schedule based on their past experience installing public water systems. The preliminary project schedule indicates that a permanent water supply will be available by February 2018. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with the local municipality and a more detailed schedule will be developed. If the municipality's schedule shows an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. Fork Township Sanitary District does have one water supply well located within the '/z mile compliance buffer. Through discussions with Fork Township, the water from this supply well is combined with water supplied from other wells outside the'/z mile compliance buffer and treated in their treatment plant before it is enters their distribution system. While the water from this supply well is already treated by a municipal water system, Duke Energy is recommending that the one water supply well located inside the'/z mile compliance buffer be abandoned and a new well be installed at a location amenable to the Fort Township Sanitary District. A time frame will be developed with Fork Township and shared with DEQ once developed. � ENERGY. Permanent Water Supply Proposal to DEQ— HFLee Public Water Supply Connection Total Number Recommended 42 Water Qual& Criteria Meets applicable water quality Yes standards Federal MCLs Completion Schedule Estimated completion date 02/20,18 Request extension to 10/2019 Contingency factors and/or install watertreatment stem until line is complete Operational Considerations Required acceptance level to achieve consistent water quality and N/A supply Required acceptance level to _ achieve targeted cost per eligible 62% (26 households) household <$35k/hcusehol Location of households relative to 200 it. —1,800 fl. existingmunicipal water lines D.D4 miles — 0.34 miles Other considerations Costs Total Installation Costs 1 $920 000 Approximate cost per eligible household $22,OD0 Annual Maintenance Costs N/A Maintenance cost per household annually N/A Non -Duke Costs Total estimated water bills month $1 344 Estimated water bills monthly per household $32 Ongoing municipality costs for maintenance and flushing due to TBD low-flow/low-usage Total Costs Duke and Non -Duke Total estimated cost for all eligible $1,081,280 np hbors over 10 years Total estimated cost for each eligible neighbors over10 ears $2b,740 & DUKE VENERGY. Permanent Water Supply Proposal to DEQ - Marshall Marshall Steam Station Catawba County 127 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.21 1 (cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the 1/2 mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Although HB630 indicates that households are to be covered, Duke Energy has included six (6) businesses, two (2) industrial facilities, and two (2) schools/churches as eligible locations. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that 125 eligible households, business and schools/churches near Marshall be offered the option of a connection to a public water supply or the installation of a water treatment system, and the two (2) industrial locations (located on Steamplant Road, labeled as 147 and 148 in the Dewberry evaluation) be offered a water treatment system. The City of Hickory already has a municipal line located along Sherrills Ford Road; therefore the majority of the households would require only service lines. Water line extensions would be required along Mollys Backbone Road (approximately 175 feet), Steamplant Road (approximately 500 feet), Gregory Road (approximately 650 feet), Marshall Road (approximately 1700 feet), and Greenwood Road to Clement Circle (approximately 1800 feet). A water treatment system is being recommended for the two industrial locations on Steamplant Road. Providing potable water to these locations would require installing a water main under an existing railroad track, a challenging and timely endeavor. The estimated cost to provide a municipal water line just to these two locations is $300,000, or $150,000 each. Removing the railroad crossing from the public water line construction scope would remove two months or more from the overall schedule. Total costs shown in the table below exclude costs associated with running a public water supply line to these locations; therefore, the costs below are different than the costs included in Appendix D of the Dewberry evaluation. Estimates prepared by Dewberry, in conjunction with the design information provided by the local water municipality, have revealed that at least 83 eligible households must accept connection to the public water supply for such connection to be cost-effective. Accordingly, Duke Energy proposes that if less than 83 households around the plant accept a connection to �� ENERGY. Permanent Water Supply Proposal to DEQ - Marshall a public water supply, then all eligible households near the plant be offered installation and maintenance of a water treatment system to ensure a cost effective, long-term high quality water supply. From initial discussions with the City of Hickory and an evaluation of the system by Dewberry, the City of Hickory has adequate water capacity and the water quality could be maintained utilizing their current standard weekly flushing schedule. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL, or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households, or the final number of households opting for public water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEO for evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner(s) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the '/2 mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. The Dewberry evaluation includes a project schedule based on their past experience installing public water systems. This preliminary project schedule indicates that a permanent water supply will be available by September 2018. If the railroad crossing on Steamplant Road is removed from the schedule, permanent water would be provided by July 2018, ahead of the October 15, 2018 deadline in HB630. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with the local municipality and a more detailed schedule will be developed. If the municipality's schedule shows an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. ��DUKE ENERGY. Permanent Water Supply Proposal to DEQ - Marshall Public Water Supply ton Fittration Water Connection Treatment S stem Total Number Recommended 125 2 Water Quality Criteria Meets applicable water quality Yes Yes standards Federal MCLs Completion Schedule Estimated co letion date 07/2018 08/2017 Request extension to 1012019 Contingency factors and/or install water treatment N/A system until line is complete Operational Considerations Required acceptance level to achieve consistent water quality and NIA NIA supply Required acceptance level to — achieve targeted cost per eligible 66% (83 households) NIA __household j<S35k/household Location of households relative to 200 ft. —1,800 R existingmunicipal water lines fh(14 miles — 0,34 miles N/A T Would have to cross a Other considerations railroad to serve these two sites with public water Costs Total Installation Costs $ 920.000 $14 0Q0 - $20 000 Approximate cost per eligible household $23,400 $7,000 - $10,000 Annual Maintenance Costs N/A $1000 - $4 000 Maintenance cost per household annual) NIA $500 - $2,000 Non -Duke Costs Total estimated water bills monthly $8,125 N/A Estimated water bills monthly per household $65 N/A Ongoing municipality costs for maintenance and flushing due to TBD N/A low-flow/low-usage Total Costs Duke and Non -Duke Total estimated cost for all eligible $3,895,000 $24,000 - $60,000 neighbors over 10 ears Total estimated cost for each eligible neighbors over 10 years $31,160 $12,000 - $30,000 '�� ENERGY. Permanent Water Supply Proposal to DEQ - Maya Mayo Steam Station Person County 22 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.211(0) of House Bill 630, Households were designated as "eligible" if any portion of a parcel of land crossed the 1/2 mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Although HB630 indicates that households are to be covered, Duke Energy has included one (1) business as an eligible location. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. The City of Roxboro indicated that they had water quality concerns with providing water to any of the eligible households within the 1/2 mile boundary due to low water demand and the residence time of the water in the pipeline, but they would be open to providing water service to the eight (8) households south of the Steam Station. They indicated that it would not be feasible to provide potable water to the 14 households north of the station, including those in Virginia. The closest existing City of Roxboro municipal line is located near the intersection of Boston Rd/Hwy 501 and Old US Highway 501. The closest household is approximately 3,000 feet (0.6 miles) from the current line. The furthest household is approximately 5,300 feet (1 mile) from the current line. The estimated cost to provide a municipal line to the eight (8) households south of the station is $1,200,000, or $150,000 per household. The Dewberry evaluation includes a project schedule based on their past experience installing public water systems. The preliminary project schedule indicates that a permanent water supply could be available through the City of Roxboro by August 2018. Based on the results of the Dewberry evaluation, the concerns raised by the City of Roxboro on water quality, and the overall construction costs, Duke Energy proposes that all 22 households be offered a water treatment system. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance �� ENERGY. Permanent Water Supply Proposal to DEQ - Maya standard will be either one-half of the MCL or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approved of this plan by NCDEQ. If the final number of households results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for evaluation and approval. Well owners will be responsible for making the decision for their parcels. Only households within the Ys mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. �� DUKE VC ENERGY. Permanent Water Supply Proposal to AEQ - Mayo Ion Filtration Water §Xstem Total Number Recommended _Treatment 22 Water Quality Criteria Meets applicable water quality Yes standards (Federal MCLs Completion Schedule Estimated 00TEletion date 12l2017 Contingency factors NIA Operational Considerations Required acceptance level to achieve consistent water N/A quality and s Required acceptance level to achieve targeted cost per NIA eligible household (<$35k/household) Location of households relative to existing municipal NIA water lines Other considerations Costs Total Installation Costs l $154 000 - $220,000 Approximate cost per eligible $7 000 - $10,000 household Annual Maintenance Costs $11,000 - $44 000 Maintenance cost per $500 - $2,000 household annually Non -Duke Costs Total estimated water ills N/A month Estimated water bills monthly _ NIA r household Ongoing municipality costs for maintenance and flushing due NIA to low-flow/low-us _ e Total Costs _.(,Duke and Non -Duke) Total estimated cost for all eligible neighbors over 10 $264.000 - $660,000 i ears Total estimated cost for each eligible neighbors over 10 $12;000 - $30,000 ears f 'V EN'ERRGY. Permanent Water Supply Proposal to DEQ - Riverbend Riverbend Steam Station Gaston County 0 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.211(c1) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the 1/2 mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's evaluation did not discover any homes within a Y2 mile of the compliance boundary currently utilizing groundwater as the drinking water source. ENERGY. R Y. Permanent Water Supply Proposal to AEQ - Rogers Rogers Energy Complex (Cliffside Steam Station) Rutherford and Cleveland Counties 66 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.211(cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the 1/ mile compliance buffer described in HB630 and if the household currently utilized well water as the drinking water source. Although H8630 indicates that households are to be covered, Duke Energy has included one (1) campground/travel trailer park within the eligible listing. Undeveloped parcels were identified but were not considered "eligible" because wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that 64 eligible well owners near Rogers Energy Complex (Cliffside) be offered the option of a connection to a public water supply or the installation of a water treatment system, and two (2) eligible households located on Dysart Road (identified as households 96 and 101 in the Dewberry evaluation) be offered a water treatment system. Grassy Pond Water Company (GPWC) has existing lines that serve the Rogers Energy Complex, as well as customers west, south and east of the plant. To the west, lines run along US-221 Alt and Old US-221A. Lines run along McCraw Road south and east of the plant. Several of the eligible households can be served via existing lines that are on or across the road from their properties. Where line extensions are required west of the plant, the closest household is approximately 4,700 feet (0,89 miles) from the current line and the furthest household is approximately 5,000 feet (0,95 miles). Where line extensions are required east of the plant, the closest household is approximately 2,400 feet (0.45 miles) from the current line and the furthest household is approximately 9,700 feet (1.84 miles). A water treatment system is being recommended for the two households located to the west of the plant along Dysart Road. While GPWC did not indicate any issues related to water quality with running a municipal line to these two households, the cost to run the line just to these two households is estimated at $487,000, or $243,500 each. The cost estimate indicates that running the line to these two households is cost prohibitive. Total costs shown in the table below exclude costs associated with running a public water supply line to the two households on Dysart Road; therefore, the costs below are different than the costs included in Appendix D of the Dewberry evaluation. �>DUKE ENERGY. Permalrent Water Supply Proposal to DEQ - Rogers Estimates prepared by Dewberry, in conjunction with design information provided by the local water municipality, have revealed the cost to provide municipal water to the remaining 64 households is $2,5 million, or $39,000 for each household. While this cost estimate is greater than the $35,000 for each household threshold agreed upon between Duke Energy and NCDEQ, Duke is recommending offering public water to these households and, after well owners have the opportunity to choose their preferred method of permanent water, re-evaluate the overall cost and water quality of the system. If the number of households who choose municipal water results in an overall cost that would be considered cost prohibitive or if concerns arise from GPWC over water quality, Duke Energy will submit a revised plan to NCDEQ and may recommend that all eligible household be offered installation and maintenance of a water treatment system. From initial discussions with GPWC and an evaluation of the system by Dewberry, additional flushing of the line may be required to maintain water quality due to lower rural residential demands and increased water travel time. The amount of flushing required, and whether water quality would be maintained on a line with minimal connections, will continue to be evaluated with GPWC as Duke Energy receives feedback from well owners on their preferred method of permanent replacement water supply. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment systems is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approved of this plan by NCDEQ. If the final number of households, or the final number of households opting for municipal water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise the plan and submit the pertinent information to NCDEQ for evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner(s) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the'% mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. e' ENERGY. Permanent Water Supply Proposal to DEQ - Rogers The Dewberry evaluation includes a project schedule based on Dewberry's past experience installing public water systems. This preliminary schedule indicates that a permanent water supply will be available in August 2018, which meets the October 15, 2018 deadline in H6630. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with the local municipality and a more detailed schedule will be developed. If the municipality's schedule results in an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. Public Water Supply Ion Filtration Water Connection Treatment System Total Number Recommended 64 2 Water Quality Criteria Meets applicable water quality standards Federal MCLs Yes Yes Completion Schedule Estimated completion date 08/2018 081201V Request extension to 1012019 Contingency factors and/or install water treatment N/A stem until line is complete O erational Considerations Required acceptance level to N/A but GPWC will continue to achieve consistent water quality and N/A suppV evaluate Required acceptance level to achieve targeted cost per eligible 1 100% (64 households) N/A household <$35k/household Location of households relative to 0.45 —1.84 miles N/A existingmunicipal water lines Other considerations Costs _ _ Total Installation Costs $2510000 $14,0D0-$20000 Approximate cost per eligible $39,000 $7,000 - $10,000 household Annual Maintenance Costs N/A $1t.__...000-$4.000 Maintenance cost per household N/A _ $500 - $2.000 annual Non -Duke Costs Total estimated water bills monthly $1,920 N/A Estimated water bills monthly per household $34 N/A Ongoing municipality costs for maintenance and flushing due to TBD N/A low-flow/low-usage Total Costs Duke and Non -Duke Total estimated cost for all eligible ne' hbors over 10 ears $2,740,400 $24,000 - $60,000 Total estimated cost for each eligible neighbors over 10 years $42,800 $12,000 - $30,000 `�� ENERGY. Permanent Water Supply Proposal to DEQ - Roxboro Roxboro Steam Station Person County 91 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.211(cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the Yz mile compliance buffer described in HB630 and if the household currently utilized well water or bottled water (under Duke Energy's bottled water program) as the drinking water source. Although HB630 indicates that households are to be covered, Duke Energy has included one (1) school and one (1) business as eligible locations. Undeveloped parcels were identified but were not considered "eligible" because groundwater wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and a preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. During their evaluation, Dewberry recommended that seven (7) of the eligible households be excluded from the municipal water line evaluation. In order to connect those households, the public water supply line would require crossing the plant intake canal and a railroad, both of which would be technically complicated, time consuming and costly. These seven homes were excluded from the Dewberry cost estimate. The closest existing City of Roxboro municipal line is located near the intersection of Chub Lake Road and Country Club Lane. The closest household is located on Concord Ceffo Road and is approximately 19,160 feet (3.6 miles) from the current line. The furthest household along the southern route is located on Semora Road and is approximately 33,000 feet (6.3 miles) from the current line. The furthest household along the northern route is located on McGhees Mill Road and is approximately 29,000 feet (5.5 miles) from the current line. Since system pressure may be of concern during fire flow, Dewberry included an elevated storage tank in the cost estimate. Although automatic flushing hydrants are planned along the route to assist in maintaining water quality and water disinfection, the City of Roxboro indicated that they had water quality concerns related to residual disinfection concentration and disinfection by-product formation. The estimated cost to provide a municipal line to the 84 households is $10,980,000 or $131,000 per household. The Dewberry evaluation includes a project schedule based on their past experience installing public water systems. The preliminary project schedule indicates that a public water supply could be available through the City of Roxboro by September 2019, which does not meet the October 2018 deadline. (� DUKE ENERGY. Permanent Water Supply Proposal to DEQ - Roxboro Due to the excessively long pipeline required for the City of Roxboro to serve the eligible households, Dewberry also evaluated the installation of a new community well system outside the ''/z mile compliance boundary. The preliminary design, based upon hydrogeologic information provided by SynTerra, assumes that four wells at 250 feet deep would be able to service the eligible households. If this option were to be chosen, a private well supplier would need to be identified and a test well would be installed to confirm water quality and well capacity. The estimated cost to provide a community well system and lines to the 84 households is $5,140,000 or $61,000 per household. The Dewberry evaluation includes a project schedule based on their past experience installing community well systems. The preliminary project schedule indicates that a community wail system could be available by August 2018, which meets the October 2018 deadline. Based on the results of the Dewberry evaluation of both the municipal water line and the community well system, the concerns over water line pressure and the additional disinfection needed, the uncertainty over groundwater quality and well capacity, and the overall construction costs, Duke Energy proposes that all 91 households be offered a water treatment system. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment system is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approval of this plan by NCDEQ. If the final number of households results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise and submit the new plan to NCDEQ for evaluation and approval. Well owners will be responsible for making the decision for their parcels. Only households within the •/= mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. (.� DUKE ENERGY. Permanent Water Supply Proposal to DEQ - Roxboro Ion Filtration Water Treatment System Total Number Recommended 91 Water Quality Criteria Meets applicable water quality _ Yes standards Federal MCLs Completion Schedule Estimated coMplation date 1212017 Contingency factors WA Operational Considerations Required acceptance level to achieve consistent water NIA quality and sWply Required acceptance level to achieve targeted cost per N/A eligible household <$35k/househol Location of households relative to existing municipal N/A water lines Other considerations Costs Total Installation Costs $637 000 - $910 000 Approximate cost per eligible $7 000 - $10,000 household Annual Maintenance Costs $45 500-$182,000 Maintenance cost per $500 - $2,000 household annually Non -Duke Costs Total estimated water bills _ NIA monthly, Estimated water bills monthly _ per household WA Ongoing municipality costs for maintenance and Flushing due NIA to low-flow/tow-usage Total Costs Duke and Non -Duke Total estimated cost for all eligible neighbors over 10 $1,092,000 - $2,730,000 ears Total estimated cost for each eligible neighbors over 10 $12,000 - $30,000 ears f ,DUKE e ENERGY. Permanent Rater Supply Proposal to DEQ - Weatherspoon Weatherspoon Steam Station Robeson Counties 14 eligible households Duke Energy has evaluated the feasibility and costs of providing a permanent replacement water supply to eligible households, as required under G.S. 130A-309.21 1 (cl) of House Bill 630. Households were designated as "eligible" if any portion of a parcel of land crossed the''/z mile compliance buffer described in HB630 and if the household currently utilized well water as the drinking water source. Although H6630 indicates that households are to be covered, Duke Energy has included one (1) business within the eligible listing. Undeveloped parcels were identified but were not considered "eligible" because wells are not currently utilized as a drinking source. Dewberry, a respected outside vendor, conducted the Potable Water Programmatic Evaluation (attached); the evaluation consisted of a survey of eligible households and preliminary engineering evaluation, cost estimate and schedule. Dewberry's report, for the most part, assumes one metered connection per parcel; therefore, multiple homes may be serviced by one connection. The total count in this proposed plan includes all final connections. Based on the results of the Dewberry evaluation and the factors below, Duke Energy proposes that seven (7) eligible well owners near Weatherspoon be offered the option of a connection to a public water supply or the installation of a water treatment system, and seven (7) households located on Taylor Drive (identified as parcels 23, 37, 54, 61, 93, and 96 in the Dewberry evaluation) be offered a water treatment system. The City of Lumberton has an existing service line along NC 72 Hwy (S. Roberts Ave), where parcels 15 and 60 are located. Robeson County has existing service lines along Old Whiteville Road and Beulah Church Road. All of the households recommended for connection to a public water supply are located along a current water main and therefore only service connections are required. Service lines connections range from approximately 225 feet along NC 72 Hwy to approximately 1,200 feet for the household on Havahiah Drive (off of Beulah Church Road). A water treatment system is being recommended for the seven households located off of Taylor Drive. While Robeson County did not indicate any issues related to water quality with running a municipal line to these households, the cost to run the line just to these households is estimated at $553,000, or $79,500 each. The elevated costs are due to the new water main required for these households. The cost estimate indicates that running the line to these households is cost prohibitive. Total costs shown in the table below exclude costs associated with running a public water supply line to the households off of Taylor Drive; therefore, the costs below are different than the costs included in Appendix D of the Dewberry evaluation. Estimates prepared by Dewberry, in conjunction with design information provided by the local water municipality, have revealed the cost to provide municipal water to the remaining seven (7) households is approximately $277,000, or $39,600 for each household. While this cost estimate is greater than the $35,000 for each household threshold agreed upon between Duke Energy DUKE Ve ENERGY. Permanent Water Supply Proposal to AEQ - Wearherspoon and NCDEQ, Duke is recommending offering public water to these households and, after well owners have the opportunity to choose their preferred method of permanent water, re-evaluate the overall cost and water quality of the system. If the number of households who choose municipal water results in an overall cost that would be considered cost prohibitive or if concerns arise from the City of Lumberton or Robeson County over water quality, Duke Energy will submit a revised plan to NCDEQ and may recommend that all eligible household be offered installation and maintenance of a water treatment system. From initial discussions with the City of Lumberton and Robeson County, and an evaluation of the system by Dewberry, flow and water pressure are adequate to service the households recommended for connection to the systems. The performance standard for the public water system is the Federal MCLs. The performance standard for the water treatment systems is also the Federal MCLs except for those constituents identified in 2015 as having potential health concerns: arsenic, hexavalent chromium, cobalt, iron, lead, manganese, sulfate and vanadium. For these constituents, the performance standard will be either one-half of the MCL or the appropriate state standard, whichever is more protective. Duke Energy is currently evaluating an ion filtration treatment system; this system has been successfully installed in other parts of the state, and initial results show it performs well in reducing vanadium and hexavalent chromium, among other constituents. The costs shown below are for a conceptual ion filtration treatment system. The final water treatment system will be based upon the results of field studies. Duke Energy has made efforts to identify all eligible households, but it is anticipated that a nominal number of additional households will be identified during the initial outreach effort conducted upon approved of this plan by NCDEQ. If the final number of households, or the final number of households opting for municipal water supply, results in a conclusion different than those stated in this preliminary plan, Duke Energy will revise the plan and submit the pertinent information to NCDEQ for evaluation and approval. Also, the estimate assumes one public water connection (i.e. meter box) per parcel; for parcels containing two households, the number of connections will be determined based upon negotiations between the well owner($) and the municipality. Well owners will be responsible for making the decision for their parcels. Only households within the mile boundary and served by well water at the time of the submittal of this plan will be eligible for a permanent water supply as part of HB630. The Dewberry evaluation includes a project schedule based on Dewberry's past experience installing public water systems. This preliminary schedule indicates that a permanent water supply will be available in May 2018, which meets the October 15, 2018 deadline in HB630. If NCDEQ agrees with Duke recommendation to provide the option of public water connections to those households where only a service line is required, the schedule may be accelerated. Upon submittal of this plan to NCDEQ, Duke Energy will begin negotiations with the local municipality and a more detailed schedule will be developed. If the municipality's schedule results in an implementation date extending beyond October 15, 2018, Duke Energy will request an extension and look at whether other contingency measures need to be implemented. -t� DUKE ENERGY. Permanent Water Supply Proposal to DEQ - Weatherspoon Public Water Supply Ion Filtration Water Connection Treatment System Total Number Recommended 7 7 Water Quakilly Criteria Meets applicable water quality standards Federal MCLs Yes Yes Completion Schedule T Estimated letion date 05/2098 1212017 Request extension to 1012019 Contingency factors and/or install water treatment N/A stem until line is complete erational Considerations Required acceptance level to achieve consistent water quality and N/A N/A supply Required acceptance level to achieve targeted cost per eligible 100% (7 households) N/A household <$35k/household Location of households relative to 225 feet to 1,200 feet N/A existing municipal water lines Other considerations Costs Total Installation Costs $277,000 $49 o0D-$70-000 Approximate cost per eligible household $39,600 $7,000 - $10,000 Annual Maintenance Costs N/A $3.500-$14-000 Maintenance cost per household annual N/A $500 - $2,000 Non -Duke Costs _ Total estimated water bills month $286 NIA Estimated water bills monthly per City of -Lumberton $48 household Robeson C $38 N/A Ongoing municipality costs for maintenance and flushing due to TBD N/A iow-flow/low-us As Total Costs -- Duke and Non -Duke Total estimated cost for all eligible neighbors over 10 ears $311,320 $84,000 - $210,000 Total estimated cost for each eligible neighbors 10years $44 470 $12,000-$30,000 — over KE ENERGY. NERGY.