Rivanna WSA advances North Rivanna pipeline replacement, preps $260m bond issuance

Rivanna WSA advances North Rivanna pipeline replacement, preps $260m bond issuanceThe Virginia utility approved engineering services for the critical transmission main while readying a major September bond sale to back its five-year capital program.

The board authorized professional engineering services for the North Rivanna Water Line replacement, targeting November 2030 for the completion of Phases 1 and 2.

RWSA is scheduled to issue a $260 million revenue bond on September 1 to secure $228 million in new project funding for its $600 million CIP.

The utility is also progressing on a $107 million, 36-inch raw water transfer pipeline that will increase transfer capacity to 25 MGD.

The Rivanna Water and Sewer Authority (RWSA) in Virginia is moving forward with key infrastructure upgrades to support growing regional demand, authorizing engineering services for the North Rivanna Water Line replacement during its August 25 board meeting. The project addresses an increase in baseline water demand and anticipated residential, commercial, and industrial growth in northern Albemarle County. The existing 4.5-mile, predominantly 12-inch cast iron pipeline was constructed in 1969 and has a history of line breaks due to high service pressures ranging from 150 to 180 psi in lower elevations. The board approved professional engineering services for the replacement, which will be executed in multiple phases. Phases 1 and 2 are slated for immediate construction, with an anticipated completion date of November 2030. The project includes a second crossing at the North Fork Rivanna River, upgrading from a 12-inch to a 24-inch pipe to provide added hydraulic capacity and redundancy. Design work will also be prepared for future phases to allow the utility to partner with the Virginia Department of Transportation (VDOT) on upcoming roadway expansions. To finance its broader infrastructure goals, RWSA is preparing to issue a $260 million revenue bond on September 1. According to the utility's executive director, the issuance includes $228 million in new funding and a potential $31 million refunding of an existing bond, depending on market conditions. The funds will support the authority's $600 million, five-year capital improvement plan. Ahead of the sale, Moody's maintained RWSA's credit rating at Aa2 stable, while S&P adjusted its rating from AA+ to AA stable. Other major capital initiatives discussed at the meeting include a $107 million raw water transfer pipeline. The seven-mile, 36-inch pipeline will run from South Rivanna to Birdwood, expanding transfer capacity from 3 million gallons per day (MGD) to 25 MGD. The project includes a raw water pump station and intake at South Rivanna, enabling the utility to keep the newly expanded Ragged Mountain Reservoir full ahead of potential drought events.