Presented by June 10 & 11,

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Presented by June 10 & 11, 2014 1

Agenda Introduction of the issue Video PWD/SFPUC case studies Saipan Case Study Cincinnati Case Study Policy Considerations 2

Acknowledgement U.S. Bureau of Reclamation U.S. Environmental Protection Agency Water Security Division U.S. Environmental Protection Agency Region IX Cincinnati Metropolitan Sewer District Philadelphia Water Department San Francisco Public Utilities Commission Central Northern Mariana Islands 3

M2M technology can help water utilities efficiently and effectively manage water resources Represents a step change in how water resources are managed to affect real environmental impact on economic growth 4

Driven by this heightened competition, the economic value of water will rise, and decision-makers in both the private and the public sectors will need information that can help them maximize the benefits derived from its use. U.S. Environmental Protection Agency WATER USAGE 14% END USERS 46% CREATE PRODUCTS $400B global industry, third largest behind electricity and oil & gas * Without investment, ASCE estimates deteriorating water infrastructure will cause American businesses to lose $734B in sales between now and 2020, with loss of GDP ** 40% AGRICULTURE *Source: General Electric, 2007 **Source: ASCE, 2013 Source: Food & Agriculture Organization, 2013 5

To wash one 50 load of laundry in older machines GALLONS 6

To grow one apple 19 GALLONS 50 GALLONS 7

19 GALLONS 700 To make one T-shirt GALLONS 50 GALLONS 8

19 GALLONS 700 GALLONS 50 GALLONS To manufacture one car 40,000 GALLONS *Source: EPA, 2012; Science Media Center, 2009; USGS, 2013; WWF, 2013. 9

Video 10

Monitoring the System 11

Water Quality System Architecture 12

Benefits of Intelligent Water Technology DROUGHT Reduce water loss from leaking pipes, theft, sewer overflows ECOLOGY Contamination events and future disasters PEOPLE Investment in water infrastructure to create jobs and transform the aging workforce Improved Water Quality Increased Water Supplies Reduced Cost Of Resource Management ENERGY Savings Without investment, U.S. will lose 700,000 jobs by 2020 and 1.4 million jobs by 2040 13

Investing in Water Means Economic Growth Project Snapshot: Philadelphia Philadelphia Water Department Serves 1.6 million customers CWS integrates data sources, produces real-time, actionable information to give operators information about what s happening throughout the water system Real-time data analysis protects public health and improves water quality 14

SAMPLING AND DATA ANALYTICS PWD Surveillance and Response System RESPONSE AND CONSEQUENCE MANAGEMENT Data Integration and Laboratory Analysis Event Detection Alert Generation and Notification Hydraulic Modeling Baseline Monitoring and Routine Sample Collection Field Screening and Site Characterization SRS DASHBOARD Alarm Response Communication and Planning Sample Collection and Analysis Risk Communication and Remediation Communication Incident Command Standard Operating Procedures Public Relations and Notification ONLINE WATER QUALITY MONITORING CUSTOMER COMPLAINT SURVEILLANCE ENHANCED SECURITY MONITORING PUBLIC HEALTH SURVEILLANCE 35+ Monitoring Sites and 3 Portable Units All Pressure Districts Key Infrastructure: Treatment Plants, Pump Stations, Tanks, Reservoirs, Distribution Sites Real-Time Event Detection 1.6 Million Customers (Human Sensors) Work Order Management System with GIS Integration Event Detection Algorithms Enhanced Detection and Surveillance Technology at Key Sites Communicable Disease Management System Monitor Over the Counter Drugs Sales, Hospital Records etc. 15

Investing in Water Means Economic Growth Project Snapshot: N. Mariana Islands Commonwealth Utility Corporation, Saipan Serves 40,000 people in Saipan, and another ~8,000 in Tinian and Rota Imagine your life without access to water 24/7 that s the reality for 15% of the people living in Saipan, a U.S. territory in the Northern Mariana Islands Water only flows through pipes 2-3 hours each day Undrinkable High Salinity water must be used because too much of the good quality water is lost Utility faces 70% water loss due to leaking pipes and theft 6-7x higher energy costs exacerbates water-energy nexus 16

Investing in Water Means Economic Growth Project Snapshot: N. Mariana Islands Commonwealth Utility Corporation, Saipan With median income 45% below U.S. average, residents are falling off the water grid due to high water costs M2M technology is the solution and by installing cellular based meters and pressure sensors across the water system, Saipan will be able to conserve water and save $700K by reducing water loss just 10% Investing in the water system will transform the island, fuel economic growth and improve sustainability 17

Investing in Water Means Economic Growth Project Snapshot: Cincinnati Greater Cincinnati Water Works and Metropolitan Sewer District Joint water, sewer and stormwater utility serving a regional population of over 1.2M people $68-105 million over 10 years by combining business and administrative services between utilities Offers municipal services to other municipalities over technology platform using a public-privatepublic network business model Early adopter of M2M technology and leader in transformative utility optimization practices Leverages digital technology and automation to addresses aging workforce, infrastructure and climate change challenge faced by the water sector Current technology innovation initiatives and various partnership will lead to development of an integrated water system capable of collecting and processing data throughout the water distribution system and watersheds in real-time for real time decision making 18

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Presented by June 10 & 11, 2014 Qualcomm is a trademark of Qualcomm Incorporated registered in the United States and other countries, used with permission. 20