The Water, Energy, & Communications Nexus

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California Water Service October 2nd, 2016 Quality. Service. Value. The Water, Energy, & Communications Nexus Quality. Service. Value. 1

California Water Service Co. (Cal Water) Established in 1926 Largest water utility regulated by the California Public Utilities Commission (CPUC) Third largest regulated water utility in the United States and largest west of the Mississippi River Provides service to nearly 2 million Californians through 500,000 service connections: 90+ BG/yr. 28 Customer Service and Operations Centers across the state Quality. Service. Value. 2

Quality. Service. Value. By US Department of Energy - Bauer, D., Philbrick, M., and Vallario, B. (2014). 3

The Water-Energy Nexus Quality. Service. Value. By US Department of Energy - Bauer, D., Philbrick, M., and Vallario, B. (2014). 4

Energy Use & Cost Opportunities Utility Level: Water Acquisition, Treatment & Delivery efficiencies Conservation Optimize pumping schedules (tariff timing) Optimize circuit use (circuit selection) Pump selection and pump efficiency (real-time unit-cost optimization) Treatment plant optimization Quality. Service. Value. 5

Water Use & Cost Opportunities Customer Level Consumption efficiencies Reduce consumption (Conservation) Through Automatic Meter Reading (AMR), Advanced Metering Infrastructure (AMI) Shift consumption (TOU: behavior shifts) Minimize waste, RW/NRW (targeted infrastructure Capital and O&M) All require data, and data requires communications Quality. Service. Value. 6

State-Wide Data / Control Communications Needs

District Control & Data Communications

Be Aware of Technology Lifecycles Typical water and energy infrastructure has a relatively long life (~ 20-100 years) Technology (including communications), in comparison, does not (~ 5-15 yrs) Plan on / budget for rolling ever-greening Consider COTS products where possible Coordination is recommended across utilities where technology and critical data are shared. Key example: AMR/AMI on shared infrastructure Quality. Service. Value. 9

Be Proactive on Security Both Water and Energy are managed through SCADA and Communications networks SCADA and Comms are cyber security targets Utilize NIST framework Result of Presidential Policy Directive (21) Is about corporate strategy and behavior, not prescriptive technology: a management read Utilize DHS Industrial Control Systems - Cyber Emergency Response Team (ICS-CERT) Quality. Service. Value. 10

Cal Water Supports Efficiency Initiatives We actively engage in both Utility- and Consumer-Level water and power savings We collaborate with our Energy Partners and are constantly pursuing improvements We are all striving for a balanced and equitable rate setting process to implement such systems Quality. Service. Value. 11

Quality. Service. Value. Quality. Service. Value. 12

Spares Quality. Service. Value. 13

Cal Water Energy Use Annual purchased power expenses of $24 million $16.5 million from PG&E $7.5 million from SoCal Edison Any savings in power costs are passed directly to customers Quality. Service. Value. 14

One Example Tariff Timing District in PG&E Service Area Last 12-Months Expense (Actuals) Next 12-Months Savings (Projected) Next 12-Months Savings Bakersfield $7,824,400 $854,400 11% Chico $2,110,000 $248,300 12% Salinas $1,761,900 $198,300 11% Stockton $429,300 $79,000 18% Bear Gulch $1,095,700 $58,600 5% Livermore $568,900 $50,600 9% Los Altos $990,700 $46,100 5% Bayshore $618,200 $22,200 4% King City $137,100 $19,900 15% Selma $282,300 $15,900 6% Marysville $185,300 $11,400 6% Oroville $207,900 $4,200 2% Willows $125,400 $3,900 3% Redwood Valley $113,581 $3,500 3% Dixon $133,900 $0 0% Totals $16,584,600 $1,616,300 10% Quality. Service. Value. 17

SCADA is our Eyes, ears, and hands Used by operators to monitor the status of plants, water distribution system Primary way to control operations Critical to safety, regulatory compliance, equipment monitoring Provides core business data Quality. Service. Value. 18

SCADA is our Eyes, ears, and hands It is our operations, and business, control system SCADA = Supervisory Control and Data Acquisition A collection of equipment, sensors, software, computers, and communications/telemetry A distributed network that touches, monitors, controls, and alarms almost all of our systems Quality. Service. Value. 19

Quality. Service. Value. 20

SCADA: Many Components & Layers Core Business Processes use SCADA data Monitor systems in real time Make/Implement control decisions Control Rooms (10 s) Present operational data to Operators Field measurements Alarms Provide remote control capability Servers (10 s) and SCADA/Business Firewall Manage system, security, and data Communications / Networking (100 s 1K s) Transmit data and control signals Control Logic Computers (100 s) Perform monitoring, execute control Data Input/Output (Qty 1K s 100K s) Translate signals to/from sensors Equipment and Instruments (Qty 1K s 100K s) Used to control and monitor water system Quality. Service. Value. 21

AMI System Architecture Quality. Service. Value. 22

Information Changes Behavior Quality. Service. Value. 23

One Example Tariff Timing Analyzed electric tariffs with PG&E Reviewed planned operation with districts Expect to save $1.6M over next 12-months Will result in MCBA credit to customers Should offset rate increases due to other factors Example: offsets $5.7M in BK capital projects Quality. Service. Value. 24

Large Variability in Pumping Efficiency Leaves Significant Room for Improvement Quality. Service. Value. 25