This is a real concern for shareholders of Sheep Creek Water Company. One of the reasons for looking at consolidation with PPHCSD was the old infrastructure that will require millions of dollars to replace and/or upgrade. Last month ~30% of Sheep Creek Water Company’s water was lost for various unknown reasons – the system is too old for staff to get an accurate sense of where things are going wrong. 10%-15% water loss for various reasons is normal for most water companies – Sheep Creek is treading on dangerous ground here.

The board has hired a consultant to look for federal grants to help fix the infrastructure, but that’s a tough task considering consolidation was meant to include grants from the state. Doesn’t mean the company won’t qualify for federal grants, but it’s still a tough hill to climb. If the company doesn’t get grants, that means repairs and improvements rest on the backs of a few staff members (just like in this article), and all the costs rest with shareholders and customers of the company.

In Truth or Consequences, N.M., leaking pipes cause millions of gallons of water to go down the drain amid drought

https://www.nbcnews.com/news/us-news/truth-consequences-nm-leaking-pipes-cause-millions-gallons-water-go-dr-rcna73629

…amid a worsening regional drought, the town with the curious name is losing 200 million gallons of potable water a year because of antiquated underground pipes that leak, spit and sometimes gush 30 feet into the air, putting not only its nearly 6,000 residents at risk of having their water shut off but also threatening operations at the city’s five public schools and its only hospital and nursing home.

Schools have already been forced to close without warning several times over the last year as water is shut off while repairs are made, city officials said.

…

Millions of gallons, representing 43% of the city’s supply, were lost in the last year as the West struggles under a drought so severe it threatens the power-generating capabilities of lakes Mead and Powell, and is drying up the Colorado River, which provides much of the region’s water.

The situation also reflects the geographic divide in the U.S. as rural communities compete with large metropolitan areas for a chunk of the $555 billion in the federal infrastructure bill to upgrade the country’s aging bridges, roads, levees and pipelines.

Water officials in Truth or Consequences estimate it would cost $150 million to overhaul or replace the deteriorating system. Even patching up the leaks more permanently would cost $20 million, which the city says it can’t afford.