Oklahoma City Water Utilities Trust (OCWUT) Market Research Report

Background

The Oklahoma City Water Utilities Trust (OCWUT) is the largest provider of drinking water in the state of Oklahoma, delivering an average of 100 million gallons of water daily to over 1.5 million residents through both retail and wholesale service connections. In addition to water services, OCWUT offers wastewater and trash collection services to residential, commercial, and industrial customers across Central Oklahoma. The Trust is dedicated to safeguarding public health and the environment, supporting public safety, and enabling economic prosperity through its comprehensive utility services.

Key Strategic Focus

OCWUT's strategic focus encompasses several core objectives:

Infrastructure Modernization: Implementing a $2.8 billion, five-year Capital Improvement Plan (CIP) aimed at enhancing water infrastructure, ensuring drought resiliency, and expanding long-term water supply capabilities.

Financial Stability: Maintaining robust financial health to support ongoing and future infrastructure projects, as evidenced by the reaffirmation of AAA and Aaa credit ratings from S&P Global Ratings and Moody's Investors Service, respectively.

Service Expansion: Extending services to a diverse customer base, including wholesale contracts with 17 communities, thereby broadening its revenue base and system stability.

Financials and Funding

OCWUT has demonstrated strong financial management through various funding initiatives:

Capital Improvement Plan (CIP): The Trust is executing a $2.8 billion, five-year CIP focused on infrastructure upgrades, resiliency, and long-term water supply.

Credit Ratings: Both S&P Global Ratings and Moody's Investors Service have reaffirmed OCWUT's top-tier credit ratings (AAA and Aaa, respectively), facilitating borrowing at the lowest possible interest rates and resulting in significant cost savings for customers.

Recent Funding: In January 2025, OCWUT received $2,500,000 in funding from the Oklahoma Water Resources Board (OWRB) to advance its lead service inventory verification program, enhancing water quality and public health for residents and businesses.

Pipeline Development

OCWUT is undertaking significant infrastructure projects to enhance water supply and system reliability:

Atoka Pipeline: The construction of the 100-mile second Atoka Pipeline is underway, with completion slated for 2028. This project aims to build drought resiliency and capacity management through 2060.

Water and Wastewater Treatment Plants: The Trust is implementing significant improvements to its water and wastewater treatment plants, including upgrades to the North Canadian Wastewater Treatment Plant and the Hefner and Draper water treatment plants.

Technological Platform and Innovation

OCWUT leverages advanced technologies to enhance service delivery:

Capital Program Management: In January 2022, OCWUT partnered with Aurigo Software to modernize its capital program lifecycle, aiming to deliver quality water to 1.4 million residents by optimizing the $55 billion in funding set aside by the Infrastructure and Investment Jobs Act.

Operations and Maintenance: In August 2021, OCWUT awarded a five-year contract to Inframark for operations, maintenance, and repair services for water and wastewater systems at Tinker Air Force Base, expanding its service capabilities.

Leadership Team

The leadership team at OCWUT is committed to strategic planning and operational excellence:

Chris Browning: General Manager and Utilities Department Director, overseeing the Trust's operations and strategic initiatives.

Julie Cunningham: Executive Director of the Oklahoma Water Resources Board, collaborating with OCWUT on financial assistance programs.

Competitor Profile

OCWUT operates in a competitive landscape with several key players:

American Water Works Company, Inc.: A publicly traded water utility company serving various regions across the United States.

One Gas, Inc.: A publicly traded natural gas utility serving over 2 million customers in Oklahoma, Kansas, and Texas.

National Rural Water Association (NRWA): A membership organization supporting rural and small water utilities across the nation.

Strategic Collaborations and Partnerships

OCWUT has engaged in strategic collaborations to enhance service delivery:

Aurigo Software: Partnered to modernize the capital program lifecycle, optimizing infrastructure development and management.

Inframark: Selected for a five-year agreement to provide operations, maintenance, and repair services for water and wastewater systems at Tinker Air Force Base.

Operational Insights

OCWUT's strategic considerations include:

Financial Management: Maintaining top-tier credit ratings to secure favorable borrowing terms for infrastructure projects.

Infrastructure Development: Executing a comprehensive capital improvement plan to modernize facilities and ensure long-term water supply reliability.

Strategic Opportunities and Future Directions

OCWUT is well-positioned to achieve its future objectives through:

Infrastructure Investment: Continuing to invest in infrastructure projects like the Atoka Pipeline and treatment plant upgrades to meet growing demand and environmental standards.