Modifications to the Multi-Party Agreement between Arizona Public Service Company ("APS"), the City of Goodyear ("Goodyear") and the City of Buckeye ("Buckeye") to accept Municipal Brackish Water (Brine) into Palo Verde Nuclear Generating Station's ("PVGS") water reclamation supply system pipeline, previously approved by Council on July 18, 2022.

Approve the agreement regarding collaborative efforts to accept municipal brackish water in the water reclamation supply system by and between Arizona Public Service Company, the City of Goodyear and the City of Buckeye. (Barbara Chappell, Deputy Public Works Director)

The cost to APS to complete a pilot test and design of improvements necessary for PVGS to accept brackish water into its water reclamation supply system and minimize impacts of this water supply to its operations is $2 million. This work will be administered by APS and the costs will be shared equally between the city of Goodyear and the City of Buckeye.  However, the payment obligation is joint and several, so if Buckeye were to terminate this agreement, Goodyear would be responsible for the full amount of the payments outstanding at the time of the agreement. 

Funds to cover Goodyear’s $1 million share are available in approved FY2023 capital improvement project 60034 Brine Disposal.

On July 18, 2022 the city council approved a Multi Party Agreement between Arizona Public Service Company (“APS”), the City of Goodyear (“Goodyear”) and the City of Buckeye (“Buckeye”) to accept Municipal Brackish Water (Brine) into Palo Verde Nuclear Generating Stations (“PVGS”) water reclamation supply system pipeline (the “July 18, 2022 Brine Agreement”).  The July 18, 2022 Brine Agreement provided for an enhanced evaporation pilot test and associated analysis using equipment from two different manufacturers, the development of designs that identify the equipment and sizing of infrastructure needed to allow Goodyear and Buckeye to deliver brackish water to the PVGS water reclamation supply system pipeline ("WRSS") and to PVGS Water Resource Facility ("WRF") while mitigating the impacts of the introduction of the brackish water  and cost estimates for purchase and installation of equipment and the construction of infrastructure improvements needed to implement the agreed upon design (the “Work”).  If the pilot test confirms that improvements can be made to the WRSS and to the WRF that would allow Goodyear and Buckeye to deliver brackish water through the WRSS to the WRF, which then could be used for cooling purposes, and assuming there are no significant unexpected conditions, APS has agreed to enter into good faith negotiations for a long-term agreement that would allow Goodyear and Buckeye to distribute brackish water into the WRSS for use as cooling water for PVGS.

PVGS is co-owned by APS, Salt River Project Agricultural Improvement & Power District, El Paso Electric Company, Southern California Edison Corporation, Public Service Company of New Mexico, Southern California Public Power Authority and Los Angeles Department of Water & Power. After council approved the July 18, 2022, APS received comments with requested changes from some of the co-owners as conditions of their approval. Staff has reviewed the proposed changes, and have concluded that the changes do not modify the intent of the parties with respect to the terms of the agreement as reflected in the Council Action Report presented to council on July 18, 2022. Accordingly, Staff recommends approval of the current version agreement as it could lead to a brine solution that would be far less expensive than the alternative solution of installing centralized treatment of the concentrate adjacent to the Goodyear Water Reclamation Facility where the treatment would dewater the concentrate to a zero liquid discharge and could be disposed of in a landfill.