The Changing Landscape and Business Case for Water Loss Control
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1 The Changing Landscape and Business Case for Water Loss Control New Water Technologies Panel April 12, 2016 Presented by: Steve Cavanaugh, P.E.
2 7000 AWWA Water Loss Control - Quarterly Webpage Views Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 2
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5 Monthly, Unadjusted Rolling Average 10 MGD = $1.6 M / yr
6 Impact on Bond Ratings #48 Enterprise Risk Profile Assessment Factors (Table 10) * final review, expected publication December 2015
7 No water loss reporting Rudimentary water loss reporting AWWA M36 terminology & metrics AWWA M36 software AWWA M36 software with validation (Level 1) WA ME OR CA NV ID UT AZ MT WY CO NM ND SD NE KS OK MN WI IA IL MO AR MS IN MI TN KY AL OH GA NH NY MA CT RI PA DRBC NJ MD DE WV VA SC NC AK TX LA FL HI
8 Statewide Water Loss Management Program Model Implementation Phase 1 Establish Annual M36 Water Auditing Phase 2 Phase 3 Achieve Minimum Standard of Audit Reliability Manage Water Loss Performance for Long- Term Reduction Auditing Outreach Training & Tech Asst Establish annual M36 Water Auditing for all utilities Educate Regulatory Community on M36 Method and appropriate use of performance indicators Establish Statewide Water Loss Control Committee Develop State Manual and Training Framework Provide extended, progressive training to utilities (funded) Data Management Validation WRF 4639 Certification Develop and implement data management system Establish posting system and communication protocols Establish minimum standards of validation for quality assurance Determine by Agency or 3 rd Party Establish validation program until certification program is in place Design and implement a Certified Water Audit program for sustained quality control Statewide Water Loss Control Committee provides support Benchmarking Improvement Suite of Performance and Process Measures System specific improvement over time in a cost-effective manner No universal targets Excessive thresholds established Annual audit submission threshold exceedances System specific progress review at designated regulatory touchpoints Statewide Water Loss Statewide Data Validity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Resource Management Grade C Resource Management Grade B Resource Management Grade A 8
9 Utah Pilot: 105 systems 4 months Colorado Pilot: 50 systems 1 month New Mexico Full Scale: 250 systems 9 months Wisconsin Pilot: 6 systems 6 months Georgia Full Scale: 230 systems 4 years WI California Full Scale: 460 systems 2 years GA
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13 IWA/AWWA Standard Water Balance Own Sources Water Imported Total System Input ( allow for known errors ) Water Exported Water Supplied Authorized Consumption Water Losses Billed Authorized Consumption Unbilled Authorized Consumption Apparent Losses Real Losses Revenue Water Non- Revenue Water Billed Water Exported Billed Metered Consumption Billed Unmetered Consumption Unbilled Metered Consumption Unbilled Unmetered Consumption Unauthorized Consumption Customer Metering Inaccuracies Systematic Data Handling Errors Leakage on Mains Leakage on Service Lines Leakage & Overflows at Storage
14 Fire Dept Usage Operational Flushing Tools for control include efficient flushing practices and awareness campaigns Management of NRW Own Sources Water Imported ( allow for known errors ) Water Exported Water Supplied Billed Authorized Consumption Non-physical / revenue loss - slow meters, billing issues and theft Authorized Cost impacts at retail Consumption rate. Tools Total for control include data management, System quality Input control policies/practices, & meter testing & repair Unbilled Authorized Consumption Physical loss - leakage Cost impacts at wholesale rate Tools for control include Water leakage and Losses pressure management Apparent Losses Real Losses Revenue Water Non- Revenue Water Billed Water Exported Billed Metered Consumption Billed Unmetered Consumption Unbilled Metered Consumption Unbilled Unmetered Consumption Unauthorized Consumption Customer Metering Inaccuracies Systematic Data Handling Errors Leakage on Mains Leakage on Service Lines Leakage & Overflows at Storage
15 AWWA Free Water Audit Software Industry Standard (M36) Free Defaults provided ~10 Volume Inputs ~7 System Data Inputs awwa.org/waterlosscontrol
16 Water Supplied Data Validity
17 Finished Water Meter Testing 8 Propeller Meter Check Valve Well Pump Accuracy results from MFR test bench: 99.5% MESCo Accuracy results from insitu test: 142.2%
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19 3-V Volume MG per Year Gal/connection/day Leakage Index Value $ per Year Economic Loss Index Validity Water Audit Data Validity Score 95% Confidence Limits Key Data Input Grades
20 Are We Healthy?
21 Reducing NRW is Effective Utility Management A Business Case example
22 2,824 $2,341,420 per year Total Non-Revenue Water Volume (MG) Level 1 Billed Consumption NRW 10,097 Data Validity Score: 75 out of 100
23 Volume NRW Components - By Volume (MG) - Level 2 2,500 2,000 1,500 1, Value NRW Components - By Value Level 2 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 - Apparent Real Loss Loss Unbilled Consump tion $- Apparent Real Loss Loss Unbilled Consump tion
24 Reported Leakage Background Leakage Volume NRW Components - By Volume (MG) Level 3 Value NRW Components - By Value Level 3 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Data Handling Theft Unreported Leakage Data Handling Meter Inaccuracy Theft Unbilled Metered Unbilled Unmetered Real Loss Apparent Loss Unbilled Consumption $800,000 $600,000 $400,000 $200,000 $0 Reported Leakage Background Leakage Unreported Leakage Real Loss Meter Inaccuracy Apparent Loss Unbilled Metered Unbilled Unmetered Unbilled Consumption
25 Validated Target Setting Where the total cost is at a minimum Economic Level of Loss COST Background Leakage and Reported Breaks Cost of Leakage Control LOSSES (MG)
26 Validated Target Setting Water Audit Data Validity Score: 74 out of 100 (Validated) Economic Metrics Volume 95% Confidence Limits (+/-) Value - Water Only Value - With Sewer Non-Revenue Water 24,744 gal/conn/y 14.2% $ Non-Revenue Water 8,235 MG/yr 14.1% $ 7,166,110 11,568,137 Target NRW Recovery (prel) 4,037 MG/yr 25.0% $ 4,707,445 7,985,285 NRW Economic Index (ratio of current vs optimum NRW cost) % Confidence Limits (+/-) $ $/conn/yr 16.6% $ $/yr 16.6% $ $/yr 25.0% NRW Components - Annual Cost Level 2 $2,500,000 Real Loss Apparent Loss Unbilled Consumption $2,000,000 $117,748 $1,500,000 $1,000,000 $500,000 $- $1,457,790 $569,199 CURRENT $111,844 $521,013 $226,280 ECONOMIC OPTIMUM
27 The Changing Landscape and Business Case for Water Loss Control New Water Technologies Panel April 12, 2016 Presented by: Steve Cavanaugh, P.E.
28 Detailed example for Q&A Presented by: Steve Cavanaugh, P.E.
29 Volume Value Level 4 Level 4 Small Meter Inaccuracy Large Meter Inaccuracy
30 Volume Value Level 3 Level 3
31 Count Revenue ($M) Small Meters Large Meters Small Meters Large Meters
32 Volume Value Level 3 Level 3
33 METERING Economic Optimization for Large Meter Testing Program
34 Extra Slides to respond to detailed questions Presented by: Steve Cavanaugh, P.E.
35 SB 555 Details Requires each urban retail water supplier, on or before October 1, 2017, and on or before October 1 of each year thereafter, to submit a completed and validated water loss audit report for the previous calendar year or previous fiscal year as prescribed by rules adopted by the Department of Water Resources on or before January 1, 2017, and updated as provided. Requires DWR to post all validated water loss audit reports on its Web site in a manner that allows for comparisons across water suppliers and to make these reports available for public viewing. Requires DWR to provide technical assistance to guide urban retail water suppliers water loss detection programs. Requires the State Water Resources Control Board, no earlier than January 1, 2019, and no later than July 1, 2020, to adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. This bill would require the board to contribute funds available for the fiscal year towards procuring water loss audit report validation assistance for urban retail water suppliers No earlier than January 1, 2019, and no later than July 1, 2020, the board shall adopt rules requiring urban retail water suppliers to meet performance standards for the volume of water losses. 35
36 Four Pillars of Managing Apparent Loss Customer Meter Accuracy Existing Apparent Losses Theft Economic Level Unavoidable Apparent Losses Data Transfer / Archive Errors As each component receives more or less attention, the losses will increase or decrease Data Billing Errors Source: AWWA Water Loss Control Committee
37 Validated Target Setting Where the total cost is at a minimum Economic Level of Loss COST Unavoidable Apparent Loss Cost of Revenue Protection LOSSES (MG)
38 Four Pillars of Managing Leakage Active Leakage Control Existing Real Losses Speed & Quality of Repairs Economic Level Unavoidable Real Losses Pressure Management As each component receives more or less attention, the losses will increase or decrease Maintenance Rehab Repair Source: AWWA Water Loss Control Committee
39 Validated Target Setting Where the total cost is at a minimum Economic Level of Loss COST Background Leakage and Reported Breaks Cost of Leakage Control LOSSES (MG)
40 Validated Target Setting Water Audit Data Validity Score: 74 out of 100 (Validated) Economic Metrics Volume 95% Confidence Limits (+/-) Value - Water Only Value - With Sewer Non-Revenue Water 24,744 gal/conn/y 14.2% $ Non-Revenue Water 8,235 MG/yr 14.1% $ 7,166,110 11,568,137 Target NRW Recovery (prel) 4,037 MG/yr 25.0% $ 4,707,445 7,985,285 NRW Economic Index (ratio of current vs optimum NRW cost) % Confidence Limits (+/-) $ $/conn/yr 16.6% $ $/yr 16.6% $ $/yr 25.0% NRW Components - Annual Cost Level 2 $2,500,000 Real Loss Apparent Loss Unbilled Consumption $2,000,000 $117,748 $1,500,000 $1,000,000 $500,000 $- $1,457,790 $569,199 CURRENT $111,844 $521,013 $226,280 ECONOMIC OPTIMUM
41 Validated Target Setting Validation: o Supply hydraulic flow verification & data chain integrity o Consumption lag time corrections, consumption database cleaning for record redundancy Commercial meter testing plan: which meters should be tested and how often to achieve the economic optimum Small meter replacement schedule to achieve optimum Meter misapplication corrections (wrong size, wrong type) Unbilled fire line analysis
42 Validated Target Setting Leakage intervention plan o what is the economic frequency for acoustic survey o plan for pilot DMA implementation Pressure optimization o Short term gains o Plan for pilot PO zone implementation
43 SUPPLY CONSUMPTION METERING AUDIT PROGRAM DETECTION PRESSURE RENEWAL
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