Non-Revenue Water Management as Effective Utility Management. Steve Cavanaugh, P.E.
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1 Non-Revenue Water Management as Effective Utility Management Steve Cavanaugh, P.E.
2 What s driving change?
3 Landscape of Water Loss Auditing, Reporting & Performance Targets WA OR MN WI NY NH CA UT AZ CO NM MO IL PA MD OH IN WV VA KY NC TN SC AL GA TX FL
4 Utah Pilot: 105 systems 4 months Colorado Pilot: 50 systems 1 month Wisconsin Pilot: 6 systems 6 months WI California Full Scale: 460 systems 2 years GA New Mexico Full Scale: 250 systems 9 months Georgia Full Scale: 230 systems 4 years
5 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 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
6 Are We Healthy? 6
7 Strategic Planning/Core Values include Relevant Goals and Objectives for NRW Management Be Financially Viable/Fiscally Prudent Optimize Financial Resources for Operational Support of Existing Assets from Source to Tap Provide Quality Service Prioritize Asset Management to Support Effective CIP Report Online, Near Real-Time KPIs via Dashboard to Support Management Decision Making Encourage Team Ownership Source: Arcadis
8 AWWA Tools for Water Loss Control
9 Basic Concepts 1. Create a water balance: separate Non-Revenue Water into Unbilled Consumption, Apparent Loss and Real Loss. 2. Test the validity: Data Validity Score & Metrics screening, gremlin hunting 3. Analyze the components of Unbilled Consumption, Apparent Loss and Real Loss. Use volumes & values. 4. Prioritize the components to make a plan of attack. 9
10 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
11 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
12 AWWA Free Water Audit Software Industry Standard (M36) Free Defaults provided ~10 Volume Inputs ~7 System Data Inputs awwa.org/waterlosscontrol
13 Basic Concepts 1. Create a water balance: separate Non-Revenue Water into Unbilled Consumption, Apparent Loss and Real Loss. 2. Test the validity: Data Validity Score & Metrics screening, gremlin hunting 3. Analyze the components of Unbilled Consumption, Apparent Loss and Real Loss. Use volumes & values. 4. Prioritize the components to make a plan of attack. 13
14 AWWA M36 Water Audit Data Validity Scoring In computer science, data validation is the process of ensuring that a program operates on clean, correct and useful data. AWWA developed a detailed grading matrix for Water Audit inputs Based on the utility s policies and practices for data collection, data management, data archiving, quality control procedures, and derivation of audit inputs Provides a quantitative measure of the reliability
15 Critical Importance of Data Validity Quality control for input errors Verification of data grading Uniform adherence to grading matrix definitions Consistent definitions and calculations 15
16 Water Research Foundation
17 Water Research Foundation
18 Small Water System Technical Assistance Finished Water Meter Flow Verification (FWM) FWM Global Statistics Summary total # meters Pass Finished Water Meter Flow Verification Fail Inconclusive 33% UNTESTABLE 18% PASS 25 total # meters not tested 49% FAIL Pass Fail Inconclusive or Untestable
19
20 Basic Concepts 1. Create a water balance: separate Non-Revenue Water into Unbilled Consumption, Apparent Loss and Real Loss. 2. Test the validity: Data Validity Score & Metrics screening, gremlin hunting 3. Analyze the components of Unbilled Consumption, Apparent Loss and Real Loss. Use volumes & values. 4. Prioritize the components to make a plan of attack. 20
21 Background Unreported Reported
22 Basic Concepts 1. Create a water balance: separate Non-Revenue Water into Unbilled Consumption, Apparent Loss and Real Loss. 2. Test the validity: Data Validity Score & Metrics screening, gremlin hunting 3. Analyze the components of Unbilled Consumption, Apparent Loss and Real Loss. Use volumes & values. 4. Prioritize the components to make a plan of attack. 22
23 Background Unreported Reported 23
24 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
25 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
26 COST ($M) Aggressive Intervention is Over-Spending Example: replacement of pipes and meters before their optimal useful life Economic Optimum Loss & Intervention Economic target from benefit-cost design (M36) New Supply New $M The GAP Reactive Intervention is Over-Spending Example: fixing only leaks that surface, replacing meters only when they stop Total Cost Cost of Water (& Revenue) Lost Cost of Intervention LOSS (Volume)
27 The Toolbox (Basic) Helps to Address Level of Cost 1 - Validation of supply & consumption volumes 2 - Estimating and tracking unmetered use 3 - Installing meters on unmetered connections Low Data Validity Score, Gremlins Validity, Unmetered Use Unmetered Use 4 - Billing system audit Systematic Data Handling Errors Low-Mid None-Low Mid Low-Mid 5 - Meter testing & replacement Customer metering inaccuracy Mid-High 6 - Unidirectional flushing program Unbilled unmetered Low 7 - Acoustic leak survey Unreported leakage Mid 8 - Improve speed/quality of repairs Unreported, Reported leakage Low 9 - Locate & eliminate pressure transients (surges, hammers) All 3 types of leakage Low-Mid 10 - Reduce peak and overall pressure All 3 types of leakage Mid-High
28 Water Audit Report for: EXAMPLE - Tallapoosa ( ) Reporting Year: / /2014 *** YOUR WATER AUDIT DATA VALIDITY SCORE IS: 69 out of 100 *** Apparent Losses: MG/Yr + Real Losses: MG/Yr = Water Losses: MG/Yr? Unavoidable Annual Real Losses (UARL): See limits in definition MG/Yr Annual cost of Apparent Losses: $18,860 Annual cost of Real Losses: $123,614 Valued at Variable Production Cost Return to Reporting Worksheet to change this assumption Financial: Non-revenue water as percent by volume of Water Supplied: 26.5% Non-revenue water as percent by cost of operating system: 16.5% Real Losses valued at Variable Production Cost Operational Efficiency: Apparent Losses per service connection per day: Real Losses per service connection per day: Real Losses per length of main per day*: Real Losses per service connection per day per psi pressure: 6.05 gallons/connection/day gallons/connection/day N/A 0.95 gallons/connection/day/psi From Above, Real Losses = Current Annual Real Losses (CARL):? Infrastructure Leakage Index (ILI) [CARL/UARL]: million gallons/year Background Unreported Reported
29 Strategic Planning/Core Values include Relevant Goals and Objectives for NRW Management Be Financially Viable/Fiscally Prudent Optimize Financial Resources for Operational Support of Existing Assets from Source to Tap Provide Quality Service Prioritize Asset Management to Support Effective CIP Report Online, Near Real-Time KPIs via Dashboard to Support Management Decision Making Encourage Team Ownership Source: Arcadis
30
31 Non-Revenue Water Management as Effective Utility Management Steve Cavanaugh, P.E.
32 Water Research Foundation
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