ECUA leverages $28m PFAS settlement to fund GAC upgrades and offset capital costs

ECUA leverages $28m PFAS settlement to fund GAC upgrades and offset capital costsThe Emerald Coast Utilities Authority has amassed over $28 million from a class-action PFAS settlement, allowing the utility to shift $4.5 million in planned treatment upgrades out of its general capital budget and limit FY 2027 rate increases to 3%.

ECUA approved a budget amendment recognizing an additional $11.6 million in settlement proceeds and $508,639 in interest, bringing the dedicated PFAS fund to $28.1 million.

The funds are strictly earmarked for Granular Activated Carbon (GAC) treatment installations at multiple well sites, including the Hagler, Olive Road, and Nine Mile wells.

By shifting $4.5 million in previously approved PFAS projects to the settlement fund, ECUA bridged a funding gap in its $51 million water and wastewater capital improvement plan.

The board authorized staff to prepare a preliminary rate resolution featuring a 3% increase for water and wastewater services for FY 2027.

ECUA also approved a $97,144 purchase order for Phase 1 of an Advanced Metering Infrastructure (AMI) pilot project to replace its 2007-era drive-by reading system.

The Emerald Coast Utilities Authority (ECUA) in Pensacola, Florida, is aggressively deploying proceeds from a class-action lawsuit to address per- and polyfluoroalkyl substances (PFAS) contamination without overburdening ratepayers. During its June 23 meeting, the ECUA board unanimously approved a budget amendment recognizing an additional $11.6 million in settlement funds and $508,639 in investment earnings, bringing the utility's dedicated PFAS Settlement Fund to $28.1 million. The capital is strictly ring-fenced for capital improvement projects related to PFAS treatment. Acting Executive Director Don Palmer noted that the utility has already begun allocating these funds to install Granular Activated Carbon (GAC) filtration systems across its water production facilities. Specific targets for the upcoming fiscal year include GAC installations at the Royce, W & Avery, Hagler, Nine Mile, and Olive Road well sites. The influx of settlement cash is providing immediate relief to ECUA's broader water and wastewater capital improvement plan (CIP). Director of Finance Justin Smith explained that the utility shifted $4.5 million in previously approved PFAS-related projects out of the general CIP and into the settlement fund. This reallocation, combined with $1.5 million in leftover contingencies from completed projects, allowed ECUA to bridge the gap between a $51 million proposed project list and the $45 million available in the standard FY 2027 water and wastewater CIP budget. Because the PFAS upgrades are fully funded by the settlement proceeds and accrued interest—which currently yields over 4% in a local government investment pool—ECUA is mitigating the rate impact on its customers. The board authorized staff to move forward with a preliminary rate resolution that proposes a modest 3% rate increase for water and wastewater services in FY 2027. In other water infrastructure business, the board approved a $97,144 purchase order to Core & Main to initiate Phase 1 of an Advanced Metering Infrastructure (AMI) pilot project. The pilot will install an AMI collector in the rapidly growing Beulah area, replacing the utility's 2007-era automated drive-by meter reading system to improve leak detection and billing efficiency. The total authorized budget for the two-phase AMI pilot is $500,000. Additionally, the board approved a $149,725 contract with Tank Industry Consultants for design and inspection services related to the rehabilitation and recoating of the 1-million-gallon Woodchuck elevated water storage tank.