Regionalization That Works: A Guide to Successful Utility Merger

The Town of Pittsboro, North Carolina, faced a transformative challenge following the approval of one of the state's largest master-planned communities. With a current population of approximately 4,500 and infrastructure designed for incremental growth, the town is now preparing for a projected population exceeding 84,000 within two decades. Concurrently, regional economic development-including two major industrial megasites-has intensified pressure on existing water and wastewater systems for the region. In response, the municipalities of Pittsboro, Siler City, and Chatham County consolidated their utility services with the City of Sanford, forming TriRiver Water, a regional utility entity designed to support long-term growth and resilience. This session will provide municipal utility professionals with actionable strategies for managing large-scale utility mergers, addressing water supply and distribution challenges, and securing financial and operational sustainability. Using the TriRiver case study the presentation will focus on: [b]Collaborative Negotiation Processes:[/b] Gain insights into the negotiation process highlighting the critical role of legal frameworks and working groups composed of elected officials, staff, and attorneys. [b]Financial Modeling for Utility Mergers:[/b] Explore the financial strategies developed to support over $400 million in capital improvements, including the establishment of System Development Fees and achieving rate parity. [b]Workforce Transition Management:[/b] Discover best practices for handling the transition of utility staff to ensure continuity and efficiency in service delivery during and after the merger. [b]Public Engagement and Transparency:[/b] Learn how an open and transparent process helped build trust and facilitate a smooth transition in utility management between two local governments. [b]Water Supply Planning:[/b] Each legacy utility operated its own water treatment plant (WTP). The merger enables strategic interconnectivity and resource sharing. Future supply options under evaluation include a new WTP through the Triangle Water Supply Partnership and expansion of Sanford's existing facilities. [b]Demand Forecasting and Growth Management:[/b] Lee and Chatham Counties rank among the fastest-growing regions in the U.S., driven by proximity to the Research Triangle Park and RDU International Airport. The Triangle Innovation Point and Chatham-Siler City Advanced Manufacturing Site are expected to catalyze significant industrial and residential development. [b]System Reliability and Redundancy:[/b] Historically, limited interconnection between systems posed risks during emergency events. A regional water model of the interconnected system identifies opportunities for cross-system water transfers, enhancing reliability and operational flexibility under stress conditions such as droughts or infrastructure failures. [b]Operational Optimization:[/b] Consolidation introduces new looping opportunities and service enhancements. The regional water model supports analysis of pressure zones, water age, and flow dynamics to ensure water quality and efficient operations across the integrated network.