Corpus Christi takes action to increase water supply

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Facing a looming water crisis that is weighing on its bond ratings, Corpus Christi, Texas, continues to take steps to expand supply with recently approved state grants and recycled water use deals. 

The city council on Tuesday gave final approval to a 30-year agreement to supply recycled water from the Greenwood Wastewater Treatment Plant to Valero Refining-Texas.

"The agreement formalizes the city's commitment to diversify its water supply portfolio by providing reclaimed water for industrial use, which benefits the overall system by decreasing the demand of potable water," Nicholas Winkelmann, Corpus Christi's water interim chief operating officer, said in a Jan. 13 statement.

The council also approved a reclaimed water supply agreement with another refining company – Flint Hills Resources, and a three-year treated water supply contract and water rights lease agreement with Nueces County Water Control and Improvement District No. 3 , which the city said will strengthen regional water security.

Last week, the Texas Water Development Board awarded Corpus Christi two grants — $30 million for the Nueces River Groundwater Wells Project and $16 million for the Mary Rhodes Pipeline Upgrades Project. 

"These grants represent a major investment in Corpus Christi's long-term water security — strengthening supply reliability, improving system resilience and helping protect families and businesses from the impacts of persistent drought," State Sen. Juan "Chuy" Hinojosa said in a statement.

Corpus Christi Water is the primary water supplier for a seven-county region, which is experiencing stage three drought conditions that triggered water-use restrictions. A water supply dashboard on the city's website indicates two western reservoirs will be depleted during the first half of 2027.

The city was hit last month with downgrades and negative outlooks by Moody's Ratings, which pointed to accelerated water depletion risk and a narrow timeframe to implement solutions before supply fails to meet demand.

In October, Fitch Ratings and S&P Global Ratings revised their outlooks on Corpus Christi's utility system revenue bonds to negative from stable, signaling concerns over the city's ability to boost its water supply. 

After sinking plans last year for a seawater desalination plant in the wake of escalating cost estimates, the city council in November opted to revisit the project with a new design-build team.