Featured Webinar: Regionalization and the Power of Partnership

This hour-long webinar recording from Environmental Finance Center Network discusses various regionalization models and approaches to collaboration like: Informal information sharing, sharing personnel, leveraging shared purchasing power, how to prepare your utility for knowledge or technology transfer, and Regionalization options.

This webinar discusses the process for water systems to acquire and maintain adequate technical, managerial, and financial (TMF) capacity. It provides some questions utilities can consider regarding their capability to consistently provide safe drinking water to the public and whether a partnership may be beneficial.

Technical

• Is your infrastructure inadequate or aging? 
• Do you have an asset management plan, and can you get the funding to follow through?
• Is your treatment, storage, and distribution adequate?
• Do you have a certified operator who has the technical knowledge needed to operate your utility?
• Is your source water of poor quality or quantity?

Managerial

• Do you have appropriate staffing and organization?
• Do you have a history of water rates that are too low?
• Do your decision makers have a limited understanding of financing options?
• Does your staff have a lack of expertise in long-term water system planning?

Financial

• Is your revenue sufficient to cover expenses now and into the future?
• Do you have good credit worthiness?
• Are your water rates adequate?
• What kind of fiscal management and controls are in place?

Featured Case Studies Within this Webinar

• Some examples of information sharing that can be implemented between small community systems.
• Equipment sharing ideas from Great Falls & Helena, Montana, as well as Tremonton, Utah.
• Sometimes utilities have a hard time getting needed equipment and it can be beneficial to buy consortium and work with other systems to buy chemicals and supplies in bulk like the Southern Maine Regional Water Council.
• The Salmonella Outbreak in Alamosa, Colorado which exhibits the benefits of regionalization in action through WARN Operational Plans. The clean-up effort was estimated to take 3-4 weeks but was completed in 13 days due to the sharing of resources.
• An example of interconnection between Aurora, South Dakota and Brookings, South Dakota when one utility was consistently violating MCL for nitrate, the nearby utility was able to split the cost of a transmission pipeline to interconnect the systems.
• Panora & Des Moines, Iowa systems show how operational collaboration can work between a large system and small system.

A Case for Regionalization

Water and wastewater services are needed in every community in order to sustain it, but some communities need more assistance in order for their water utility to thrive. Many rural areas face challenges like meeting strict regulations while still providing affordable services to users. As technology becomes more sophisticated, the need to purchase new, expensive equipment becomes unavoidable for small utilities that often do not have the funding or resources needed. This is when regionalization can really benefit utilities and their customers alike.

Regionalization helps two or more water systems to leverage and combine resources, equipment, personnel, and even physical plants. According to U.S. EPA, “the main benefit of regionalization is that it pools individual resources of two or more water systems to obtain services or facilities that one or both systems may not have been capable of obtaining by themselves.”

In the Rural Community Assistance Partnership's (RCAP's) 2021 report: Affordability and Capability Issues of Small Water and Wastewaters Systems: A Case for Regionalization of Small Systems, they feature a case study that shows a successful model for regionalization from the Greater Cincinnati Water Works (GCWW) in southwest Ohio. GCWW offers the smaller water systems in the area much assistance in the form of: lab testing services, billing services, call center operation, a source of project financing, construction management services, engineering services, and emergency help when needed. 

RCAP also released a report titled: Regionalization: RCAP’s Recommendations for Water and Wastewater Policy which contained 22 recommendations that should be integrated into policy decision-making. The research featured in this report was unveiled in a webinar that also focused on the experiences of five different states: California, Florida, Ohio, Pennsylvania, and Texas, who spoke about what they have put in place to help support the various forms of regionalization.

Further Regionalization Readings & Resources:

• Benefits of Regionalization
• How Regionalization & Consolidation of Water Utilities Creates New Projects
• Rural Matters | Issue 4: Let’s Talk Regionalization (2022)
• Learn About Water System Partnerships
• State Action on Water System Regionalization and Consolidation
• Developing Regional Economic Connectivity: Key Factors and Strategies for Urban and Rural Communities
• Funding Strategies to Promote System Regionalization