Georgetown approves initial agreement for future water supply

Georgetown city officials approved an initial agreement with Recharge Water at a May 12 City Council meeting—an effort to meet the city’s future water needs.

The details

Recharge will construct and operate a system that will deliver up to 34,800 acre-feet of groundwater per year from the Simsboro Formation of the Carrizo-Wilcox Aquifer. The city expects to begin receiving water by 2031.

The agreement is a 30-year term, and includes the option for two additional 30-year terms.

Infrastructure and capital costs for the Recharge project have not been finalized, and the city has kept specific dollar amounts confidential, according to city documents. However, the agreement with Recharge will cost the city hundreds of millions of dollars less than an alternative agreement with EPCOR, a city news release states.

Georgetown will purchase the water on a "take-or-pay" basis, which means the city is responsible for paying for the reserved water whether they use it or not. The pay agreement will cover the base cost of the water, operational expenses and capital costs to build the new infrastructure.

The city will not pay any water reservation fees to Recharge until the formal water supply agreement is finalized, anticipated for the end of 2026.

What they’re saying

“This is a major milestone in our efforts to secure a new, reliable long-term water source for Georgetown,” City Manager David Morgan said in the release. “As water becomes more expensive for cities across Texas, we believe the terms we’ve negotiated with Recharge are the best we can negotiate. Recharge has secured the necessary permits, and we’re confident that they can reliably provide the high-quality groundwater we need to meet our future needs.”

What else?

Georgetown is also in the beginning stages of a project to build a waterline from Circleville to northern Georgetown to transport water from the Carrizo-Wilcox Aquifer into the city, according to city documents.

City officials approved an application for funding from the Texas Water Development Board for $274 million in low-interest loans at the May 12 meeting. The loan will fund a new water treatment site in Circleville and the construction of the 30-mile pipeline.

In case you missed it

Georgetown voters approved a proposition during the May 2 local election that permits the sale of a majority of the city’s water utility territory that is located outside its city limits and extraterritorial jurisdiction.

Nation Utility Infrastructure will take over portions of the territory in Salado, Florence and Liberty Hill. Meanwhile, Killeen and Jarrell will take over their cities’ water territories, respectively.

To finalize the sale, the Texas Public Utility Commission will need to approve the agreements. The final order for the certificate of convenience and necessity, or CCN, transfer is scheduled for Nov. 30, 2027, according to previous Community Impact reporting.

The sale will reduce the city’s long-term water needs by 60%, Georgetown Strategic Project Manager Caroline Stewart said May 12.

"We will need a lot less water long term than we would have if we did not sell off a portion of our CCN,” Stewart said.