Secure treatment capacity without owning the infrastructure
Municipal capacity isn’t always available when development needs to move forward. Wholesale water and wastewater treatment gives developers, municipalities, and utility districts another way to secure reliable treatment capacity without owning and operating the infrastructure themselves.
How Wholesale Delivery Works
In a wholesale arrangement, the customer purchases water or wastewater treatment capacity as a service rather than purchasing and operating the treatment infrastructure itself. AUC Group owns and operates the infrastructure and provides the agreed-upon capacity under a long-term service agreement.
While every agreement is different depending on the project, wholesale delivery generally follows five steps:
- AUC and the customer determine current and future capacity needs.
- AUC designs or allocates treatment capacity.
- AUC constructs or expands infrastructure as needed.
- AUC provides the agreed-upon treatment capacity under a long-term service agreement.
- AUC manages operations, maintenance, and regulatory compliance (where applicable).
Why Communities Choose Wholesale Treatment
Municipal capacity isn’t available. Development may be ready to move before municipal infrastructure can support it.
Capital budgets are limited. Wholesale delivery can reduce the need for a large upfront infrastructure investment.
Projects need to move forward. Waiting for planned utility extensions can put construction, occupancy, and revenue schedules at risk.
Long-term operations aren’t desirable. The customer can secure treatment capacity without staffing and maintaining a treatment facility.
Capacity needs may grow over time. Infrastructure and service agreements can be structured around phased growth.
Wholesale Delivery vs. Traditional Plant Ownership
Neither model suits every project. The decision depends on the organization’s capital strategy, desired asset control, operating capabilities, and growth plans.
| Traditional Plant Ownership | Wholesale Delivery |
|---|---|
| Owner funds the plant and related capital needs | Upfront capital requirements are reduced or in some cases largely eliminated |
| Owner operates the plant or contracts separately for operations | AUC operates the facility under the agreement |
| Owner manages and funds maintenance | AUC manages maintenance during the agreement |
| Owner plans and funds expansions | Capacity and payments may be phased with demand |
| Owner retains the asset and its lifecycle responsibilities | AUC assumes the agreed-upon infrastructure responsibilities during the agreement; purchase or transfer provisions may be available |
Wholesale Delivery vs. Leasing
Leasing and wholesale delivery both provide access to treatment infrastructure without requiring an immediate plant purchase, but they serve different planning needs.
| Lease Plant Program | Wholesale Delivery |
|---|---|
| Customer leases the physical infrastructure and equipment | Customer purchases treatment capacity as a service |
| Provides infrastructure for a defined period | Provides treatment capacity through a long-term service agreement |
| Keeps ownership and delivery options open while long-term plans develop | Establishes AUC as the long-term infrastructure and service partner |
| Preserves a path to transition to wholesale or ownership | May include negotiated purchase or pre-established transfer provisions |
| Customer may handle operations and maintenance in-house, hire a third-party provider, or enter into a separate maintenance agreement with AUC | AUC operates and maintains the facility as part of the comprehensive agreement |
| Fits interim, phased, or still-evolving infrastructure plans | Fits customers ready for a long-term full-service agreement with a single accountable partner |
Choosing the Right Infrastructure Path
Wholesale delivery isn’t intended to replace traditional ownership or leasing in every situation. It provides another infrastructure path for organizations that need reliable treatment capacity but prefer to leave long-term plant ownership, operations, and maintenance to an experienced provider.
Every project has different infrastructure, financing, and ownership requirements. Contact AUC for help evaluating the options and determining whether wholesale delivery, leasing, or traditional ownership is the best fit.
