Smart Water Management & Modeling for Optimizing Energy Use & Reducing Costs for Water Distribution Systems. September 17, 2014

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Daniel Gerald Williamson
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1 Smart Water Management & Modeling for Optimizing Energy Use & Reducing Costs for Water Distribution Systems September 17, 2014

2 Agenda Water Distribution and Energy Management Electric Utilities and Energy Billing Overview Opportunities to Reduce Energy Costs Case Studies Energy Markets

3 Multiple Opportunities Pumping Efficiency Conservation Infrastructure Repairs and Improvements Automation and Control Energy Procurement Strategies

4 Water Treatment and Distribution Energy Use Less Energy Pumping efficiency optimization Water usage conservation Variable speed systems Energy Recovery Hydraulic energy recovery Renewable energy systems Manage Energy Costs Demand Management Coordinate billing rates Potential for Low or No cost opportunities Optimization Energy Cost Management Use Less Energy Energy Recovery

5 Water Modeling is an Effective Energy Management Tool Use Less Energy + = Energy Cost Management Energy Recovery System Modeling Energy Management Energy Savings System Modeling can be a very effective tool to identify energy optimization opportunities

6 Managing Energy Costs Leveraging water storage Leverage operations and utility billing rates to control energy costs Peak load management Load curtailment programs Water Treatment/Distribution Facilities have multiple opportunities to reduce energy costs

7 Utility Billing + System Modeling Utility Billing Modeling Demonstrate how system modeling and energy management were used to identify opportunities to reduce energy costs

8 Typical industrial electric utility billing charges Fixed Charges Independent of demand or usage. Facility charges. Demand Charge (kw) Typically minute peak power demand during a billing period. Energy Usage Charge (kwh) Energy consumed during the billing period.

9 Demand charges are based on peak metered demand

10 Demand (KW) Demand ratchets and minimum billing demand charges can increase energy costs Peak 90% Annual Demand Ratchet Example

11 Time of Use Billing Energy & Demand costs change with the time of day. On peak periods can change seasonally Very Common When energy is used and how much energy is used determines the overall cost.

12 Demand Profile Will Impact Energy Costs

13 Average Electric Utility Cost /KWH Utility Billing Rate Determines Energy Management Strategy When energy is used and how much energy is used determines the overall cost Plant A Plant B Fixed Charges Demand Charges Energy Charges

14 Case Studies

15 Case Study Davidson Water Energy Optimization 58,000 customers in Central North Carolina 10MGD average flow 23 pumping stations 12 pressure zones

16 Project Scope Develop a long term CIP master plan Forecast demands to identify facilities for future improvements Identify near term and long term energy management opportunities

Power Bill Review Pump Station Energy Usage (KWh) 200,000.00 195,932 180,000.00 160,000.00 140,000.00 120,000.

17 Power Bill Review Pump Station Energy Usage (KWh) 200, , , , , , , , , , , ,185 20,344 5,113 3,837 2,674 16,363 6,508 2,224

18 Power Bill Review Average Energy Cost ($/KWh) $0.30 $0.25 $0.258 $0.20 $0.15 $0.123 $0.122 $0.129 $0.132 $0.10 $0.05 $0.040 $0.068 $0.066 $0.090 $0.00

19 Hyattown Pump Station Evaluate opportunities to reduce energy charges. Pumps 2-75hp, 4-150hp, 2-200hp (Constant Speed)

20 Hyattown Pump Station Billing Rate Duke Energy OPT-G (Time-of-Use) 6.13 /KWH 6.13 /KWH 3.54 /KWH 3.54 /KWH Economy Demand $1.16/KW Demand Charge $15.72/KW Demand Charge $9.26/KW Economy Demand $1.16/KW

21 Power (kw) Tank Level (%) Hyattown Pump Station Existing Operations Maintain Tank Level On-Peak pumping operations resulting in elevated energy costs Hyattown Pump Station Power Demand Profile Off Peak Demand $1.16/KW Energy $0.035/KWH On Peak Demand $15.72/KW Energy $0.061/KWH Energy Usage- 1472MWH/YR Peak Demand 232KW Yearly Utility Cost $68, Existing Power Demand Level Existing

22 Power (kw) Tank Level (%) Hyattown Pump Station Demand Management Minimize Pumping Operations During On- Peak periods Energy Usage- 1491MWH/YR Peak Demand 75KW* Yearly Utility Cost Hyattown Pump Station Power Demand Profile Off Peak Demand $1.16/KW Energy $0.035/KWH On Peak Demand $15.72/KW Energy $0.061/KWH $44, Existing Power Demand Optimized Time of Day DM Level Existing Level DM

23 Power (kw) Tank Level (%) Hyattown Pump Station Demand Management and Piping Modifications Piping Modifications to reduce pumping head Energy Usage- 1400MWH/YR Peak Demand 75KW* Yearly Utility Cost $40, Hyattown Pump Station Power Demand Profile Off Peak Demand $1.16/KW Energy $0.035/KWH On Peak Demand $15.72/KW Energy $0.061/KWH Existing Power Demand Optimized Time of Day DM Optimized DM and Piping Mods Level Existing Level DM Level DM and Piping Mods

24 Hyattown Pump Station Operations Optimization ~$15,000/year of energy cost savings at Zero Capital Cost Minimum billing demand limited additional demand reduction from piping modifications. $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Hyattown Annual Energy Costs Summary Base Demand Management Demand Management & Piping Modifications

25 Hwy 8 Pump Station Billing Rate Lexington Utilities Small Commercial Service (Schedule SC) Demand based on 30 interval anytime during billing period

26 8/27/2012 9/27/ /29/ /26/ /29/2012 1/28/2013 2/26/2013 3/26/2013 4/26/2013 5/25/2013 6/28/2013 7/25/2013 8/27/2013 Averages/Totals Energy Costs ($/KWH) Load Factor Hwy 8 Pump Station Billing Analysis Hwy 8 Billing Elements Non-Metered Cost 3% $0.18 Hwy 8 Average Energy Costs 60% $0.16 $ % Energy Cost 71% Demand Cost 26% $0.12 $0.10 $ % 30% $ % Demand Cost Energy Cost Non-Metered Cost $0.04 $ % $0.00 0% Average Energy Costs - 13 /KWH Average Load Factor 38% (low) Energy Costs $/kwh Load Factor

27 Power (kw) Hwy 8 Pump Station Optimization Downstream piping improvements caused existing pumps to operate inefficiently Reduced pump size to gain efficiency and reduce demand charges Hwy 8 Pump Station Power Demand Profile Time of Day Existing Power Demand Optimized Time of Day Power Demand Peak Demand Energy Usage Annual Cost Load Factor Existing KWH/Yr $13,828 38% Pumping Optimization KWH/Yr $5,787 69%

28 System Automation & Monitoring Some opportunities may require a high level of management Operations Automation System monitoring and performance verification Self-management vs 3 rd party software

29 Future Energy Markets/Billing

30 $/MMBTU (2011) Future concerns over transmission and distribution capacity Time of use and demand based rates gaining popularity Increase in load curtailment programs Energy Market Trends EIA Projected Industrial Energy Prices Adjusted for 2011 Dollars Liquid Fuel Reference Liquid Fuel High Growth Liquid Fuel Low Growth NG Reference NG High Growth NG Low Growth Elec Reference Ele c High Growth Elec Low Growth

31 Energy Market Trends Ability to manage/defer loads will increase in value. Water utilities can benefit from this trend by utilizing water storage and demand forecasting. On-site power generators can also be used to generate an revenue stream

32 Bryan R. Lisk, PE, CEM Senior Associate Hazen and Sawyer 4011 Westchase Blvd. Raleigh, NC (direct) (cell) hazenandsawyer.com

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