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Water Loss - A Business Case for Action

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Presentation I helped make at the Safe Drinking Water Act Seminar on 11/5/10.

Water Loss - A Business Case for Action

  1. 1. Water Loss – A Business Case for Action Bernie Bouman, PE and Dan Barr, PE
  2. 2. Water Loss Program
  3. 3. Goals of a Water Loss Program  Maximize revenues  Minimize costs  Equitable to customers  Improve reputation  Greener operations  Meet any future regulations
  4. 4. Goals of a Water Loss Program Maximize Revenues  80 to 90% of all revenues are user fees  Properly collect all revenue with accurate meters and eliminating theft
  5. 5. Goals of a Water Loss Program Minimize Costs
  6. 6. Unaccounted For Water Billed Consumption Plant Production
  7. 7. What is Missing? Unmetered Consumption  Public Facilities  Fire Protection  Flushing  Main Breaks  Theft
  8. 8. What Else?  Benchmarking against other communities  Making a business case for a water loss reduction program
  9. 9. What’s Next
  10. 10. Modern AWWA Water Audit
  11. 11. Modern AWWA Water Audit System Input Volume The annual volume input to the water supply system
  12. 12. Modern AWWA Water Audit Authorized Consumption The annual volume of metered and/or unmetered water taken by registered customers, the water supplier, and others who are authorized to do so. Water Losses The difference between the above: System Input Volume – Authorized Consumption
  13. 13. Modern AWWA Water Audit Apparent Losses Unauthorized Consumption, all types of customer metering inaccuracies and systematic data handling errors including theft. Real Losses The annual volumes lost through all types of leaks, breaks, and overflows up to the point of customer metering
  14. 14. Modern AWWA Water Audit Revenue Water Those components of the System Input Volume that are billed and produce revenue. Nonrevenue Water The sum of Unbilled Authorized Consumption, Apparent Losses and Real Losses.
  15. 15. Free AWWA Water Audit Spreadsheet
  16. 16. AWWA Water Audit Spreadsheet What this spreadsheet will help determine – Water Losses in gallons and dollars – Apparent Losses in gallons and dollars – Non-Revenue Water in gallons and % of Water Supplied
  17. 17. AWWA Water Audit Spreadsheet What this spreadsheet will help determine – Performance Indicators like:  Unavoidable Annual Real Losses (UARL)  Current Annual Real Losses (CARL)  Infrastructure Leakage Index (ILI) [CARL/UARL]
  18. 18. AWWA Water Audit Spreadsheet What this spreadsheet will help determine – A Business Case for Improvements  Where should we spend capital to best improve our performance?  How much should we spend?  How much is lost and where?  How does utility compare to peers?
  19. 19. AWWA Water Audit Spreadsheet Required Input data for Spreadsheet – Water Volume Supplied in gallons  Water Imported / Exported  Water Produced  Production Meter Inaccuracy – Authorized Consumption in gallons  Billed Metered / Unmetered  Unbilled Metered / Unmetered – Estimate of Apparent Losses in gallons  Unauthorized Consumption  Customer Metering Inaccuracies by volume or percentage  Systematic Data Handling Errors
  20. 20. AWWA Water Audit Spreadsheet Required Input data for Spreadsheet – System Data  Length of mains in miles  Number of service connections  Average length of service lines  Average Operating Pressure – Cost Data  Total Annual Operating Costs  Retail Cost / 1000 gallons  Production Cost / million gallons
  21. 21. Quantifying Unbilled Unmetered Authorized Consumption – Spreadsheet will assume 1.25 % of Water Supplied – Review following:  Fire fighting and training  Flushing mains, sewers  Street cleaning  Irrigation of Public Areas  Fountains  Swimming pools  Construction sites  Unmetered Public facilities
  22. 22. Quantifying Unauthorized Consumption – Spreadsheet will assume 0.25 % of Water Supplied – Review following:  Illegal connections  Hidden meters  Misuse of hydrants  Bypassed or tampered with meters  Illegally opening closed curb stops  Uninstalled meters
  23. 23. Water Audit Case Study  A city has the following input data for 2008: – Water Supplied = 2,117,000,000 gallons imported. – Authorized Consumption  Billed Metered = 1,792,000,000 gallons  Unbilled Metered = 2,000,000 gallons  Unbilled Unmetered = 2,000,000 gallons
  24. 24. Water Audit Case Study – Water Losses  Unauthorized Consumption = 5,000,000 gallons  Customer Metering Inaccuracies = 91,000,000 gallons  Systemic Data Handling Errors = 0 gallons – System Data  351.6 miles of main  18,047 service connections  72.4 psi Average Operating Pressure – Cost Data  Retail cost per 1000 gallons - $2.49  Production Cost - $1,640 / million gallons
  25. 25. Water Audit Case Study Results PERFORMANCE INDICATOR RESULTS Financial Indicators  Non-revenue water as percent by volume of Water Supplied: 15.4%  Annual cost of Apparent Losses: $238,080  Annual cost of Real Losses: $369,000
  26. 26. Water Audit Case Study Results PERFORMANCE INDICATOR RESULTS Operational Efficiency Indicators Apparent Losses per service connection per day: 14.57 gallons/connection/day Real Losses per service connection per day: 34.16 gallons/connection/day Real Losses per service connection per day per psi pressure: 0.47 gallons/connection/day/psi Unavoidable Annual Real Losses (UARL): 155.67 million gallons/year Real Losses = Current Annual Real Losses (CARL): 225.00 million gallons/year Infrastructure Leakage Index (ILI) [CARL/UARL]: 1.45
  27. 27. Water Audit Case Study Results WATER AUDIT DATA VALIDITY SCORE *** YOUR SCORE IS: 72 out of 100 *** A weighted scale for the components of consumption and water loss is included in the calculation of the Water Audit Data Validity Score. PRIORITY AREAS FOR ATTENTION: Based on the information provided, audit accuracy can be improved by addressing the following components: 1: Water imported 2: Total annual cost of operating water system 3: Customer metering inaccuracies
  28. 28. Long Term Analysis using Audit 0 50 100 150 200 250 300 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 MGD Fiscal Year City of Philadelphia, PA Water Audit Trends over 10 Years Water System Input Volume, mgd Billed Consumption, mgd Unbilled Unmetered (firefighting, etc.), mgd Apparent Losses (billing data error, unauthorized consumption, customer metering inaccuracies), mgd Real Losses (Leakage), mgd
  29. 29. Long Term Analysis using Audit 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CostinDollars Fiscal Year City of Philadelphia, PA Water Audit Cost Trends over 10 Years Unbilled Unmetered water cost Apparent Loss Cost Real Loss (leakage) Cost Non-revenue Water Cost Total
  30. 30. Begin a Program
  31. 31. Data Handling Errors  Accounting Procedures – Manually check your processes from meter reading to customer billing
  32. 32. Metering
  33. 33. Metering  Large and Production Meters – Meters 2” and larger. – Up to 60% of consumption. – Calibrate annually.
  34. 34. Metering  Residential Meters – Inventory and Sample – Average Customer Meter often needs replaced after 10 years.
  35. 35. Leakage Reduction  Acoustic methods very cost effective – Start with pilot  Pressure Management  Area Master Meters  Other Upcoming Technologies
  36. 36. Leakage Reduction  Canton, OH Case Study – Surveyed about 280 miles of water mains – Found 80 leaks  31 at hydrants  19 at services  23 on the main lines
  37. 37. Leakage Reduction  Canton, OH Case Study – Estimated 773,520 gpd from identified leaks – Survey Cost $35,000  $100 to $150/mile
  38. 38. Leakage Reduction  Surveyed 200 miles of water transmission main for a cost of $15,000 “Elimination of leaks paid for the survey.. and then some!” • Located 36 leaks that were repaired • Reduction of 350,000 GPD of real water losses! • Represents 12% of the water being purchased daily for Erie County! • Resulted in a savings of $500 daily or $182,500 per year! Erie County, OH Case Study
  39. 39. Summary  The AWWA M36 Water Audit Manual creates a business case and benchmarking tool.  Starting points for water loss reduction include: – Auditing your accounting procedures – A meter testing and replacement program – A leak detection survey  Continuous Improvement
  40. 40. Summary
  41. 41. Questions?

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