# Effluent Reuse Rate and O&MR Charges The **effluent reuse rate** is the cost-recovery mechanism by which [[Conway Corporation]] would recover the **ongoing** operations, maintenance, depreciation, and replacement (O&MR) costs of the [[Tupelo Bayou Treated-Effluent Cooling|treated-effluent cooling-water]] system from the data-center customer on [[Project Stratus]]. It is the ongoing-cost counterpart to the developer-funded **capital** posture and the [[Developer Reimbursement Agreement|study reimbursement]] — and it is the residual point at which **ratepayer exposure** could arise if the rate is set below full cost of service. ## How it appears in the corpus - The executed [[Black & Veatch]] effluent agreement frames the capital-vs-ongoing split: *"It is expected that infrastructure improvement costs will be paid for by the industrial facility. As such, no rate structure evaluation is needed for the initial construction costs. However, a recommended range of reuse rates shall be provided to address ongoing operational, maintenance, depreciation, and replacement costs"* (`PROD-044`). See [[Project Stratus Contract Instruments]]. - The structure is being developed in the Black & Veatch **"2026 Conway Effluent Financial Memo"**, whose listed contents include an "OM&R Cost Framework," "Development of O&MR Charges," "Annual Reserve Contributions," and "Contractual Considerations" (`PROD-038` transmittal). See [[Tupelo Bayou Effluent Study RFQ and Engineering Reports]]. ## Stakeholders - [[Conway Corporation]] and its ratepayers — bear residual exposure if the reuse rate under-recovers. - The data-center customer — the party charged the reuse rate. ## Timeline - 2025-05 — the executed effluent agreement recommends a "range of reuse rates" for ongoing costs (`PROD-044`). - 2026-05 — the "2026 Conway Effluent Financial Memo (v.4.10)" draft transmitted, developing the O&MR charge structure (`PROD-038`). ## Notes - **The financial memo PDF itself is not produced** — only the transmittal email — making it the single highest-value who-pays follow-on (a targeted FOIA for the memo and any reuse-rate advisory deliverable is recommended). - Until the reuse rate and financial memo are on the record, **ratepayer exposure cannot be excluded**: nothing in the produced record establishes the reuse rate is set at full cost of service. This is the Conway-project instance of the corpus-wide [[Who Pays for Entergy's New Generation|"who pays"]] pattern.