volume 1 - Halifax Regional Municipality

Halifax Water Integrated Resource Plan
IRP Implementation Plan
additional storage facilities and a number of large-scale wind energy generation projects
with value in excess of $48 million. The wind energy projects should offset energy costs
and will proceed only where there is positive business case model. These cost offsets
have not been included in the Recommended IRP financial modeling but will be
considered as part of subsequent financial planning as a revenue source. The storm
system has a single major (>$10 million) project associated with providing new
sewerage for Springfield Lake.
The total capital program net of asset renewal costs is about $1,410 million or
approximately $201 million/yr. on average. This substantially exceeds the present
capital program based on the Five-Year Capital Plan and again presents challenges with
regard to impact on rates, the availability of other funding sources, and the availability
of Halifax Water institutional capacity to manage this project volume. The next step in
implementation will be to examine the fiscal and practical impacts of the Recommended
IRP, evaluate opportunities for external infrastructure funding, and assess the capital
delivery resource needs (both internally and within the local consulting and contracting
communities).
An additional approximately $349.2 million of the Recommended IRP budget is
associated with the proposed asset renewal program. Approximately, 57% of the asset
renewal effort is associated with the wastewater system while 34% is associated with
the water system and 3% associated with the storm system. The remaining asset
renewal effort is associated with enterprise system improvements. The average annual
asset renewal expenditure over this period is $64.1 million/yr. This reduction compared
to the first three-year period indicates that some of the present asset renewal backlog
would have been addressed.
Other considerations with the period 2016 to 2022 of the Recommended IRP include:
• Total program (i.e. planning, business systems improvements and improvements to
administrative facilities) related expenditures correspond to about 7.1% of the
overall 2016 -2022 Recommended IRP expenditures. This includes a continuation of
the asset management improvement program implementation.
• Additional O&M costs associated with treatment facility or pumping upgrades or
expansions are still relatively small but increasing in this period corresponding to
about 4.9 % of expenditures.
Details of all 2016-2022 expenditures are presented in Volume 1 Appendix H.
7.4 RECOMMENDED IRP EXPENDITURES 2023 -2032 AND 2033 -2043
The Recommended IRP expenditures for the periods 2023 to 2032 and 2033 to 2043 are
presented in Table 7.4.
Revision: 2012-10-29 Integrated Resource Plan 93
October 31 2012 Page 126 of 272