advanced metering & meter accuracy sustainability
TRANSCRIPT
Creative Solutions for our Environment
Your Name Veolia Water North America
June 2010
Advanced Metering & Meter Accuracy Sustainability –
Tools for Water Efficiency & Customer Satisfaction
Navigating the Infrastructure Replacement Era
February 4, 2011
1Local Drivers and Value of Advanced Metering
Your Challenge is Our Challenge
Drivers & Challenges Drivers & Challenges –– Local NE IllinoisLocal NE Illinois
Population Growth by 2050Population Growth by 2050
•• 3.4 million/38.5% to 12.1 million3.4 million/38.5% to 12.1 million
Population Location & DevelopmentPopulation Location & Development
•• Outer counties/low density Outer counties/low density –– more water demandmore water demand
•• Inner counties/high density Inner counties/high density –– less water demandless water demand
Water scarcity/drought/climate changeWater scarcity/drought/climate change
All localities have their own compelling and critical All localities have their own compelling and critical issuesissues
Source: Regional Water Demand Scenarios for Northeastern Illinois 2005-2050
NE Illinois Water Issues NE Illinois Water Issues –– Report RecommendationsReport Recommendations
Maintain & improve water inventory dataMaintain & improve water inventory data
Manage growth to achieve LRI scenarioManage growth to achieve LRI scenario
•• Water pricingWater pricing
•• ConservationConservation
Appropriate water pricing & adjustmentsAppropriate water pricing & adjustments
Monitor usage over timeMonitor usage over time
System to measure water efficiency & new System to measure water efficiency & new conservation methods. conservation methods.
Source: Regional Water Demand Scenarios for Northeastern Illinois 2005-2050
Drivers & Challenges Drivers & Challenges -- Solution FrameworkSolution Framework
Issues lead to water efficiency strategiesIssues lead to water efficiency strategies
•• Reallocate abundant water for more economic developmentReallocate abundant water for more economic development
Water is fuel for the economyWater is fuel for the economy
31more times of water goes over Niagara Falls than Chicago 31more times of water goes over Niagara Falls than Chicago diversiondiversion
Life vs. lifestyleLife vs. lifestyle
Solutions will be regional in scope & portfolio drivenSolutions will be regional in scope & portfolio driven
•• Water is interconnectedWater is interconnected
•• Many tactics contribute to solutionMany tactics contribute to solution
Focus on fundamentals/basic economicsFocus on fundamentals/basic economics
•• Too costly to maintain subsidies and false economicsToo costly to maintain subsidies and false economics
•• Water availability becoming risk management issue & valued Water availability becoming risk management issue & valued into stock pricesinto stock prices
Advanced Metering Infrastructure Advanced Metering Infrastructure –– Strategic Strategic Technology for Future ChallengesTechnology for Future Challenges
Manage the resourceManage the resource
Manage operating costsManage operating costs
Form relationship with customerForm relationship with customer
Veolia Water has installed over 1 million AMI systemsVeolia Water has installed over 1 million AMI systems
AMR fixed network
Data acquisition
Data transport Data management
Intelligent
sensors
Interval – read showing usage at specific time
Intervals ofTime: Over 24 Hours8,760 or more data points/year
150 gal25 gal 250 gal 60 gal 100 gal 27 gal 25 gal25 gal25 gal
Advanced Metering Infrastructure Advanced Metering Infrastructure –– Strategic Strategic
Technology for Future ChallengesTechnology for Future Challenges
Register – read showing total consumption over time
Time Period: 1 to 3 Months4 to 12 data points per year
7000 gallons
0 1 9 3 5 5 00 1 2 3 5 5 0
The Power of Interval Data
Advanced Metering Infrastructure Advanced Metering Infrastructure –– Manage the Manage the ResourceResource
Service line leak detectionService line leak detection
Distribution system leak detectionDistribution system leak detection
Pressure sensor Pressure sensor
Water quality sensorWater quality sensor
InIn--home deviceshome devices
Advanced Metering Infrastructure Advanced Metering Infrastructure –– Manage the Manage the ResourceResource
Meter leak detectionMeter leak detection
Meter tamper detectionMeter tamper detection
Revenue protectionRevenue protection
•• Dispute resolutionDispute resolution
Rate setting & managementRate setting & management
•• Full cost pricingFull cost pricing
•• More timely/actionable More timely/actionable informationinformation
Advanced Metering Infrastructure Advanced Metering Infrastructure –– Manage the Manage the OperationsOperations
Reduce meter reading costsReduce meter reading costs
Nearly eliminate special & final Nearly eliminate special & final billing readsbilling reads
Reduce service shutReduce service shut--off & turnoff & turn--on on costscosts
High bill dispute resolutionHigh bill dispute resolution
Tamper detection & enforcementTamper detection & enforcement
Water restriction monitoring & Water restriction monitoring & enforcementenforcement
New for fee servicesNew for fee services
Analysis Results – Meter Reading Impacts
75% reduction25% reduction/read$3.83 / read
75% reduction25% reduction/read$3.83 / read
110,000/ yr$4.85 / read
QA Reads (All Types)
100% reduction90% reduction/read$0.67 / read
74,000/ yr$6.70 / read
Riding Reads
Monthly readingQuarterly readQuarterly read
100% reduction$0/ read
95% reduction /read$0.04 / read
$0.84/ average read cost
Residential Read
Daily readingMonthly readingQuarterly reading
100% reduction$0/ read
95% reduction /read$0.34/ read
$6.78 / readCommercial Monthly Read
Fixed Network RadioMobile RadioCurrentRead Type
High Bill Dispute Resolution
$ 18.83 $ -$ -$ 10.46 $ 8.37 Average Cost
$ 19,624.47 $ -$ -$ 10,902.48 $ 8,721.99 Fixed System
$ 118.84 $ 48.15 $ 51.85 $ 10.46 $ 8.37 Average Cost
$ 118,630.70 $ 13,170.37 $ 46,586.92 $ 32,707.45 $ 26,165.96
Mobile
System
$ 117.80 $ 41.85 $ 57.11 $ 10.46 $ 8.37 Average Cost
$ 208,844.34 $ 19,079.34 $ 91,642.65 $ 54,512.41 $ 43,609.93
Current
System
Total
Estimated Cost
Analysis &
Resolution
Account Re-
Read
Account
Analysis
Customer
Intake
Mobile system Analysis & Resolution costs higher due to different
personnel responsible for the work.
Tamper Detection & Enforcement
Current system requires visual detection of tampering activities
$1.15 $2,662.23 $2,309.88 $167.42 $184.93 2309.8844
Fixed
Network
$39.60 $91,470.54 $2,309.88 $167.42 $88,993.25 2309.8841924.9
Mobile
System
3%
0.2
Hours0.1 HoursAssumptions
Cost/
ViolationTotal Cost
Enforcement
Notification
Data
Analysis
Collection
Activities
Enforce
Notices
Data
Analysis
Data
Collection
Cost EstimatesActivities
Water Restriction Monitoring & Enforcement
No data analysis costs for manual read system – must catch violators in the act.
Fixed
Mobile
Manual
$ 1.16 $ 65,477.56 $ 56,303.33 $ 4,587.12 $ 4,587.12
$ 7.37 $ 414,955.00 $ 56,303.33 $ 2,678.69 $ 355,972.99
$ 23.09 $ 266,639.93 $ 133,489.87 0$ 133,150.06
ViolationCostNotificationAnalysisActivities
Cost/TotalEnforcementData Collection
Direction des Consommateurs - Présentation Générale Télé-Relevé15 - version de juin 2010
Advanced Metering Infrastucture – Form a Relationship with the Customer
History of daily consumption
History of monthly consumptionPossibility to export, charts or graphs
Charts
Graphs
Under Excelfiles(after
export)
Secure access via personal account onwww.serviceclient.veoliaeau.fr
Direction des Consommateurs - Présentation Générale Télé-Relevé16 - version de juin 2010
Advanced Metering Infrastucture – Form a Relationship with the Customer
Be proactive – solve issues prior to being a big problem
Inform customers when entering higher rate block
In case of a leak: instant alert.Avoid more serious property damages and higher charges
• Sms and/or e-mail alert in real time: notified wherever you are
Info VEOLIA EAU: Possible leakdetected on yourmeter For furtherinformation, call Customer Service or log on www.serviceclient.veoliaeau.fr
Advanced Metering in Advanced Metering in ChicagolandChicagoland
Early adopters of phone read technology in the early Early adopters of phone read technology in the early 19901990’’s s –– limited successlimited success
•• Lack of phone company support Lack of phone company support
•• Addition of fax lines, fiber optic and privacy issuesAddition of fax lines, fiber optic and privacy issues
•• Mobile read solutions gained favorMobile read solutions gained favor
Around 30 utilities (about 6% of utilities in NE IL) have Around 30 utilities (about 6% of utilities in NE IL) have deployed or deploying RF based fixed network solutions deployed or deploying RF based fixed network solutions
•• Evanston, IL one of the earliest RF system adoptersEvanston, IL one of the earliest RF system adopters
•• Joliet, Norridge, Oswego, South Elgin are more recent additionsJoliet, Norridge, Oswego, South Elgin are more recent additions
Deployment of mobile read systems makes justification Deployment of mobile read systems makes justification for conversion to fixed network more difficultfor conversion to fixed network more difficult
Advanced Metering in Advanced Metering in ChicagolandChicagoland
Business case for shifting strategic direction from mobile Business case for shifting strategic direction from mobile to fixedto fixed
•• Stranding assets Stranding assets
•• Increasing reading & billing frequencyIncreasing reading & billing frequency
•• Monetizing water restriction monitoring and enforcementMonetizing water restriction monitoring and enforcement
•• Monetizing operational cost impacts Monetizing operational cost impacts –– leak detection, dispute leak detection, dispute resolutionresolution
Recent analysis of local utility with 20,000 meters; 15% Recent analysis of local utility with 20,000 meters; 15% accounts with Mobileaccounts with Mobile
•• Continuation of mobile deployment not cost effectiveContinuation of mobile deployment not cost effective
•• May strand up to $500,000 in mobile system assets May strand up to $500,000 in mobile system assets –– depends on depends on technology selectiontechnology selection
•• Benefits of fixed system enough to justify shift in strategyBenefits of fixed system enough to justify shift in strategy
2
Meter Accuracy Sustainability
AMI Don’t Mean a Thing if Meters are Inaccurate
Veolia’s Metering Expertise = Revenue Recovery
Veolia Water’s Metering Asset Management Approach can Recover Revenues in a Range of 3 to 5 % or More!
Our Methodology is ROI based - between 1 to 3 years
Our Stewardship for Metering Accuracy Sustainability is backed by experience and results:
2020
• 20 Million meters managed worldwide – 66 countries
• Veolia Water measures over $11+ billion per year through its meters
• 9 accredited meter labs – test all metering products
• 70 metering professionals dedicated to metering knowledge & performance
Method Highlights for Small Meters –3 Year ROI Target
We Use the Customer Database to Define Demographic Parameters
• Define sub-sets representative of the meter base
• Define a statistical sample size and amount of testing required
We Bench Test the Accuracy of the Samples-up to 13 different flow rates
• Very low flow – where 10% to 15% of usage may occur & meters typically under-register
We Locate Usage Patterns Similar to the Utility
• How much customers consume water at the different flows rates tested
2121
Method Highlights for Small Meters –3 Year ROI Target
Accuracy, volume, flows, tariff, labor & meter prices
ROI
2222
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
0.01
20.02
50.04
70.07
00.10
50.16
70.34
70.70
01.38
32.96
73.95
05.93
310
.450
Flow gal/mn
Meter inaccuracy aligned with consumption pattern
% in overall consumption
% inaccuracy
Accounted - Unaccounted Water
8%
92%
Non Revenue Water Accuracy Factor
Leveraging Veolia Water’s Meter Accuracy Sustainability – Indianapolis Large Meter Results
Managing over 322,000 accounts
Focused on top 163 3” & larger meters
• .05% of total meter base & 24% of large meters
• 15% of system revenues and usage
• Average age of 21.3 years
• Average accuracy of 85.3%
CAPEX Cost $1.44 million
• Replace meters & upgrade settings to current standards
• AMR compatible
23
Revenue Gain $1.98 million/ROI < 9 months
Investing in maintenance to sustain revenue of $8 million over 4 year period
Leveraging Veolia Water’s Meter Accuracy Sustainability – SEDIF Contract Results
Managing over 550,000 accounts
The baseline 2002 Compound Accuracy Factor was 95.4%
Using same meter replacement budget as preventative approach, we have improved accuracy by 3% & recovered $30 million over the baseline year.
Meter base .3% less than AWWA accuracy standard for new meters
98.2%98.1%97.8%97.5%97.3%96.7%96.5%CompoundAccuracy
Factor
3.0%2.9%2.6%2.2%2.0%1.4%1.2%Water Recovered compare to 2002
23,54123,14223,10021,97521,73822,36823,268
# of meters
replaced in
Accuracy
Enhancement Program
2009200820072006200520042003
How is District Metering Area (DMA) Done?
Parameters to consider when setting up DMA
•Supply safety (sub-network interconnection)
•Fire hydrant mandatory flow
•Water quality (avoid dead end network)
•Easiness for leakage detection (decrease length where leakage detection is difficult – ie nonmetallic pipes)
•Try to minimize meters and boundary valves.
•2000 – 3000 customer per DMA average
•25 miles of pipe per DMA average
DMA System Benefits
Helps maintain water balance – account for losses and find leaks
Provides more reliable data for hydraulic modeling
Provides more reliable information for prioritizing work and allocating maintenance resources
Provides opportunity for piloting various techniques before applying to other districts
Better control over district’s infrastructure
Improvement of water network performance
• Real-time consumption follow-up
• Detection of backflows
• Detection of serious or persistent leaks
• Monitoring of network performance
Summary
AMI needed to address current & future utility challenges
• Reducing operating costs to keep rates low
• Improving service to customers – form a relationship to help win rate adjustments & support infrastructure investments
• Manage water resources & use them more efficiently
Accurate meters make for accurate AMI
• Improve revenues
• Reduces rate increases
• Promotes fairness & equity between customers
• More effective use of maintenance resources
Thank You for Your Time
Q/A