The City of Coppell purchases its water supply from Dallas Water Utilities (DWU). The City currently pays $5.4 million for the right to demand 18.5 million gallons of water each day. If the City needs to increase to 19.5 million gallons, the cost would be an additional $291,422 based on rates charged by DWU today. The City’s daily water demand has increased over the years. It was 17 million gallons per day (MGD) until August 2011 when it was increased to 18 MGD. In August 2015, it was increased to 18.5 MGD. Several days in July and August 2018 and again in August 2019, demand from customers pushed water needs to the 18.5 MGD level and would have exceeded that level if City staff had not reached out to the community to limit water usage. If the City had not kept its usage at or under 18.5 MGD, a request for an increase in the daily demand would have been necessary. An increase in the daily demand remains for five years according to the City’s contract with DWU and we pay for the right to demand that amount even if we do not take it. This increase will result in higher rates for residents.
Additionally, the 2021 Region C Water Plan submitted to the Texas Water Development Board projects that the demand for water will exceed current supply. Coppell is in Region C, which covers 16 North Central Texas Counties, including Dallas, Tarrant, and Collin, among others. One of the water management strategies is water conservation. The Environmental Protection Agency states that the purpose of an increasing block rate structure is to encourage water conservation. Coppell has had a block rate structure in place for several years (referred to as the conservation rate, effective June through October). The new block rate structure is similar to the conservation rate but will be effective year-round.
Per Dallas Water Utilities’ 2014 Dallas Long Range Water Supply Plan to 2070 and Beyond Report:
“Future water supply need is the difference between future demand and available supply. Dallas’ future demands are projected to increase as a result of population growth, while Dallas’ current supplies are projected to decrease as a result of reservoir sedimentation and increased evaporation from predicted increases in air temperature. This results in a supply deficit, as demands overtake supplies at some point in the future. The plan is to incrementally add additional supply to the Dallas system to overcome the deficit and provide a sufficient buffer.
"In 2020 Dallas had a total supply system buffer of 33 MGD, and by 2070 it will have a supply deficit of 256 MGD. Dallas’ supply deficit begins to occur in about 2027 given the predicted growth in demand and the rate of declining supplies.”