The City of Coppell purchases treated water from Dallas Water Utilities (DWU) at a contractual supply of 18.5 million gallons of water per day. Contractually, we have the ability to purchase additional treated water from DWU at a cost to our customers. If water consumption is not reduced and demand exceeds our contractual supply of 18.5 million gallons per day, the City would be required to negotiate an increase in the amount we are allowed to purchase per day, resulting in an increase in the cost of treated water. Because the purchase of water from Dallas Water Utilities (DWU, the City of Coppell’s water supplier) is funded through customer water bill payments, this increase will result in higher rates for customers. Further, if we increase the amount of purchased water, we will be committed to paying for the right to take that increased volume in future years.