In 2005, the Honolulu Board of Water Supply conducted a study of system needs and anticipated capital spending over a
20-year horizon, from 2006 through 2025. In the course of this study, the Board identified a
range of capital investment needs in the categories of water source, transmission, and storage
projects. In addition, investment needs were identified for the ongoing rehabilitation and
replacement of the Board's existing system. With these spending needs defined, the Board
developed a Capital Plan that prioritized projects for implementation over an initial 6-year
planning horizon (calendar year 2006-2011) and a 20-year planning horizon (2006-2025).
The 6-year Capital Plan calls for implementation of projects with a total cost of approximately
$264 million (in 2006 dollars). Spending on these projects during the 6-year period is anticipated
to total approximately $214 million (in 2006 dollars). These required investments will affect the
costs of continued utility system operation and service. To manage these costs, the Board
concurrently developed a Strategic Financial Plan that outlines financial and rate-making
strategies for a 10-year planning horizon extending from 2006 through 2015. For the Board's capital planning purposes, it was necessary to divide Oahu into distinct areas
that are served by integrated components of the Board's water system. For each of these Capital Plan Districts, the Board developed a Capital Plan that ties together
population and water demand projections, resource plans, capital projects, and level-of-service
standards. These Capital Plans identify future needs for each district in terms of source,
storage, transmission, waterline replacement and system improvements. The paper discusses seven steps in the capital planning process that include: Step 1, Input to the Capital Planning Process; Step 2, Needs Assessment; Step 3, Project Definition; Step 4, Project Prioritization; Step 5, Financial Impacts Analysis; Step 6, Capital Plan Alternatives; and, Step 7, Financial and Rate Planning. Includes tables, figures, appendix.
| Edition : | Vol. - No. |
| File Size : | 1
file
, 1.3 MB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 38 |
| Published : | 06/01/2007 |
