NASEO 2015 Annual Meeting. Smart Water & Energy. Allan Connolly CEO and President Aclara

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1 Smart Water & Energy Allan Connolly CEO and President Aclara

2 Water Energy Nexus

3 Water Energy Nexus

4 Water Intensity in Energy Production A Simple Example Air Conditioner Gallons of water used to produce Energy Geothermal Solar Thermal Nuclear Thermoelectric, coal Thermoelectric, oil Thermoelectric, natural gas Coal IGCC Wind Solar, photovaltic

5 Water Intensity in Energy Production

6 Energy Intensity in Water

7 a digression

8 A brief history of pee Humans pee ½ a gallon/day Elephants pee 40 gallons/day Large dinosaurs peed 40 gallons a shot! Humans have been here for 2 million years Elephants for 10 million Large dinosaurs for 500 million Conclusion? That s a lot of pee!!

9 In fact, this much Conservative estimate of total amount of pee produced in history Total amount of fresh water on Earth

10 There s no such thing as fresh water, just clean water. Charles Fishman, The Big Thirst

11 Wastewater Treatment Prior to Discharge

12 Reuse and reclamation Every gallon reused is a gallon not sent to waste treatment Technologies exist to reclaim and reuse on site Saving water saves energy but knowing what water to save is not easy

13 Trends Focusing on Energy Water Nexus

14 Climate Change and Water Scarcity

15 Population Growth In the 20 th century, the world s population tripled 3x

16 The use of water grew 6x 6x 3x

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22 Rocky Mountains Snowpack and Water Supply

23 Migration and Water Use Current and Future Population (Base scenario, in million units) Increase in Water Use (Base scenario, in million units) Arizona 4.3 California Colorado Nevada Utah Population as of July 1, 2007 Projected Population for 2030 Est. projected increase in water use per day (gal/day)

24 Colorado River Appointment 9% 17% Arizona Colorado 27% New Mexico Utah 23% Wyoming Nevada California 2% 6% 11% 5% Mexico

25 New Sources of Energy - Renewables

26 New Sources of Energy - SAGD

27 Case Studies in Water Management

28 Las Vegas Established 1905 Population 2010 Population 1990 Population 1960 Water Source : 584K : 258K : 64K : Lake Meade, with federally mandated restrictions

29 people don t want to come to the desert, they want to come to an oasis in the desert what s an oasis without water? Steve Wynn, Casino Operator

30 Las Vegas Water Strategy Two key areas Sophisticated system wide reclamation Aggressive regulation/incentives to reduce usage Leading to Full recycle back to Lake Mead Residents paid $45,000/acre to remove grass Low flow fixtures and plumbing Artificial lakes banned Drip irrigation and a host of other initiatives

31 Atlanta Established 1829 Atlanta picture replace Population 2010 : 5.7M Population 1990 : 2.9M Population 1960 : 1.3M Water Source : Lake Lanier via Chattahoochee River

32 Lake Lanier

33 Lake Lanier in 2008

34 Atlanta water strategy?

35 Nowadays people know the price of everything, and the value of nothing. Oscar Wilde, The Picture of Dorian Gray

36 The Economics and Politics of Water

37 Pricing Overview True costs of our water are not recovered Current pricing covers the variable costs Infrastructure is not being replaced Life expectancy municipal water treatment infrastructure 50 years Average age of US infrastructure 75 years One gallon in six leaks from pipes in the US

38 You think your infrastructure is old

39 The Right Price Drives the Right Behavior The cost of water in European cities Italy (Rome) Norway (Oslo) Poland (Warsaw) Water system losses in European countries Finland (Helsinki) Sweden (Stockholm) Spain (Madrid) France (Paris) Greece (Athens) Portugal (Lisbon) Great Britain (London) 30.8% 26% 22% 22% 6.8% Austria (Vienna) Belgium (Brussels) Italy France Great Britain Spain Germany Luxembourg Denmark (Copenhagen) The Netherlands (The Hague) Germany (Berlin) Euro

40 Atlanta pricing some sense prevails

41 Percent of Average Annual Flow Murray-Darling pricing structure Typical variation in flow 150% Low Cost Insecure Water 100% High Cost Secure Water 50% 0% Minimum need by people Minimum Needed by River Pricing model proposed to deal with excess demand for water from the Murray-Darling river system in Australia Goal Ensure the long term health of the river Provide access to a minimum level of water for all people living on the river Ensures true economic value is recovered from ALL users

42 Solutions to Address Challenges of Energy Water Nexus

43 Advanced Metering Infrastructure

44 Electric Smart Infrastructure Active Locational Sensing Distributed Generation Voltage Reduction Operational Tools Energy Balance Transformer Monitoring Demand Response Outage Detection Locational Alerts & Troubleshooting Fixed Load Control

45 Water Smart Infrastructure Level Monitoring Data Analytics Software Services Remote Water Shutoff Leak Detection Intrusion Monitoring Hydrant Flow Monitoring Meter Reading Pressure Monitors Water Quality

46 Proven Benefits from AMI 4.15 Million less meter reading miles driven each year = 2 Million pounds coal burned Enhances Pipeline Integrity 16% Water produced lost due to leaks Improves utility Operational Efficiency Helps customers manage Better Energy Use and Control

47 Leak Detection

48 Summary Water and energy use inextricably linked Population growth, along with agricultural and industrial demand, driving water scarcity We do not currently pay the true cost of water but those days are ending Better pricing models drive better water usage Making better decisions requires better data