Water and Energy Conservation Programs and Partnering

Transcription

1 Water and Energy Conservation Programs and Partnering River Network Peer Learning Network February 29 th, 2012 Stacey Isaac Berahzer UNC Environmental Finance Center

2 Dedicated to enhancing the ability of governments and organizations to provide environmental programs and services in fair, effective and financially sustainable ways Serving EPA Region 4

3 Outline Water and Energy Conservation Overview Water Pricing/Rates Partnering with your water utility

4 Water and Energy Conservation Overview

5 Potential for Financial Savings Treating less water less energy consumption money saved Energy represents the largest controllable cost of providing water or wastewater services to the public: o o 6,583 municipal treatment plants in the US Energy represents 25-30% of total plant O&M In audits of 150 facilities identified energy savings of over 30%... K. Moraff, EPA Region 1 (Boston), Oct. 2011

6 How Water Utilities are Saving Energy Reduce demand during periods of peak electricity rates Use automation (e.g. continuously monitoring Dissolved Oxygen probe) Routine pump maintenance Reduction in voltage imbalance Source: WATERGY: Energy and Water Efficiency in Municipal Water Supply and Wastewater Treatment Cost-Effective Savings of Water and Energy Wastewater plants - biogas options o Evaluation of Energy Conservation Measures for Wastewater Treatment Facilities September 2010, EPA 832-R

7 Financing options for energy efficiency retrofits at water utilities

8 Loan and Grants: o o Financing Example: Through Drinking Water and Clean Water SRFs (green project reserve) Limited, intermittent grant opportunities Getting an energy project into the utility's Capital Improvement Plan budget is an important milestone Highlighting the payback time helps to make the business case for prioritizing energy projects More resources at :

9 Water Pricing/Rates

10 Common Types of Rate Structures Flat Uniform Decreasing block Increasing block Seasonal 10

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12 Partnering with your Water Utility Understanding the Utility s Challenges

13 The Conservation Conundrum Water utilities face a dilemma in encouraging water conservation o By selling less water, utilities have to increase rates to cover their costs o Customers are essentially being asked to pay more for less water

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15 What about expenses?

16 Partnering with your Water Utility Talking Utility Language

17 Utility Lingo Portfolio Manager Benchmarking o provides a comparison of the energy use at specific WWTPs with a national database of similar plants and results in a numeric benchmark score Environmental management systems (EMS) Plan-Do-Check-Act management framework Financial forecasting and consumption patterns RFPs for Energy Service Companies (

18 Partnering with your Water Utility Helping water utilities accept the new normal

19 Plan for Conservation because it is happening! State and Federal water savings goals 1992 U.S. Energy Policy Act WaterSense LEED

20 Fixture Maximum Water Use Allowed (effective January 1994) Water Sense Toilets (water closets) Gravity-tank 1.6 gallons per flush (gpf) 1.28 gpf Gravity-tank, white, two-piece, labeled 3.5 gpf 1.28 gpf Commercial Use Only Flushometer-tank 1.6 gpf 1.28 gpf Flushometer-valve (except blowout 1.6 gpf 1.28 gpf valve) Blowout-valve 3.5 gpf 1.28 gpf Electromechanical hydraulic 1.6 gpf 1.28 gpf Urinals Any type 1.0 gpf 0.5 gpf Showerheads Any type (except those used for safety reasons) Faucets and Replacement Aerators Lavatory faucets Lavatory replacement aerators Kitchen faucets Kitchen replacement aerators Metering faucets 2.5 gallons per minute (at 80 psi) or 2.2 gpm (at 60 psi) 2.5 gallons per minute (at 80 psi) or 2.2 gpm (at 60 psi) 0.25 gallons per cycle 2.0 gpm (at 20, 45 and 80 psi) 1.5 gpm (at 60 psi)

21 Overview of Alternate Models Selling Service as opposed to gallons of water 21

22 Annually Adjusted Base Charges Inspiration = energy sector Looks at a customer s cumulative consumption, AS WELL AS a snapshot o o Snapshot of utility s peak, or Snapshot of customer s peak Water: could the base charge for a customer be set based on customer usage?

23 Cooperative/Dividend Model Inspiration = energy sector/ REI outdoor Customers are members of utility Utility clearly defines its revenue needs (including O&M, debt service, capital reserves, etc.) Utility develops a share of this total cost that a member should pay for a fiscal year Customer pays a fixed monthly fee Extra funds paid out to customers at end of fiscal year

24 Fixed Prices for Bundled Services Inspiration = cell phone plans Customer buys into a plan that allows them a certain bundle of consumption: o x Gallons of water provided o x Gallons of wastewater treated o Access to online usage data o Insurance on service line o Etc. Customers who use beyond their plan limit face much higher rates

25 Water Budget-Based Rates Inspiration = western US water utilities Basically individualized increasing block rates per customer Budget could be based on: o o # of people in household, and/or Historic annual consumption of household

26 Contact Stacey Isaac Berahzer Senior Project Director Environmental Finance Center Phone: