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Better Data Needed on Water Storage Pricing

U.S. GAO Recommends Improvements to U.S. Army Corps Municipal, Industrial Water Storage Pricing Process

The U.S. Army Corps of Engineers stores water for municipal and industrial water users—such as local water utilities—in its reservoirs, dams, and other civil works projects. In return, water users agree to cover the costs of the project.

Corps officials and water users told the U.S. Government Accountability Office (GAO) that these project costs vary; but when the GAO tried to examine to what extent, it found that the Corps’ water storage agreement data were insufficient.

Corps officials said some factors can contribute to the variation, such as projects’ original construction costs and the effects of inflation.

In a report issued yesterday, August 18, 2017, the GAO recommended ways to improve the Corps’ data and water storage pricing process.

To view the report and its attendant materials, click here.

Key Stages in Municipal and Industrial Water Storage

Figure showing certain sections of the municipal and industrial water storage process.