City Announces Major Cost-Saving Shift in Water Supply Strategy

Officials with the Evansville Water Sewer Utility will present the design contract for a new Groundwater Treatment Plant at Tuesday's Water Sewer Utility Board Meeting - a shift in water supply and treatment plans that will fundamentally reshape the future of the city's water system and save ratepayers up to $200 million over time.

The meeting will be held at 3:00 p.m. at the Sunrise Pump Station.

Rather than moving forward with previously proposed plans to construct an all-new water treatment facility sourcing water exclusively from the Ohio River, the Evansville Water and Sewer Utility (EWSU) will instead blend groundwater with Ohio River water to supply its customers. This plan includes the construction of a new groundwater treatment facility and wells, alongside a comprehensive renovation of the existing South Water Treatment Plant, representing a cost-effective shift in strategy.

"Every family in Evansville depends on reliable, clean water," Mayor Terry said. "With this new approach, we are strengthening the reliability and quality of our water supply while also protecting affordability for residents. By avoiding unnecessary costs, we're reducing the pressure for future rate increases and keeping water service within reach for families and businesses. This is smart government, forward-thinking infrastructure planning, and a win for our community today and for generations to come."

The revised plan offers multiple benefits

• Up to $100 million in construction cost savingsby utilizing and upgrading existing infrastructure;
• Up to another $100 million in long-term capital and operational savings, by avoiding the need for treatment of PFAS "forever chemicals" at the surface-water plant. Field tests show that our groundwater resources have little or no PFAS. It is anticipated that supplementing with groundwater will eliminate the need for additional treatment, under the current regulatory limits;
• Improved resilience, as blending water from both sources adds redundancy and could reduce temperature-related main breaks.

The transition to a blended supply not only enhances the city's long-term water security but also delays or potentially avoids significant future rate increases for customers.

"The water we deliver must be safe, reliable, and cost-effective," said Vic Kelson, Executive Director of the Evansville Water and Sewer Utility. "This plan checks all those boxes. It uses our resources wisely, leverages the strengths of our existing infrastructure, and keeps customer needs at the forefront."

This next step in shifting to groundwater will take place after the City of Evansville and the Office of Utility Consumer Counselor (OUCC) last week formalized the financing plan for a project.