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This presentation premiered at WaterSmart Innovations
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1 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
FEDERAL ENERGY MANAGEMENT PROGRAM
National Water Rate Escalation Elisabeth Giever Pacific Northwest National Lab [email protected]
October 6, 2011
Federal Energy Management Program
The mission of the Federal Energy Management Program is to facilitate the Federal Government’s implementation of sound, cost-effective energy management and investment practices to enhance the Nation’s energy security and environmental stewardship.
3 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Agenda
• Increased water rates
– Escalation rates
– Example
• Rate increases by region
• Rate increases by water source
• Rate increases by historical drought tendencies
4 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Study Cities
• Selection based on distance to Department of Energy
facilities
• Data from voluntary surveys to Ernst & Young, Raftelis
Financial Consultants, and American Water Works
Association
• Survey years: 1994, 2002, 2008
• Non-manufacturing and industrial rates analyzed
5 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Study Cities
6 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Escalation Rate
Time between
Years 1 and 2
Year 2 water cost
Year 1 water cost
Escalation Rate
Escalation Rate = e(ln(Y2/Y1)/n)-1
7 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Escalation Rate = 3.9%
14 years
$84.30
$49.50
Water Rate Escalation Example
8 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Rate Escalation Results
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Study Cities by Region Cities by Region
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Regional Trends
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Study Cities by Water Source
Purchased Surface Mixed Ground
Cities by Water Source
12 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Water Source Trends
13 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Impacts
• Palmer Drought Severity Index
• 1895-1995 long range historical drought conditions
• 1996-2010 short range historical drought conditions
• 3 month forecast drought conditions
14 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Palmer Drought Severity Index
• Established to compare meteorological moisture conditions of climate regions
• Positive Palmer numbers indicate excess moisture – flooding
• Negative Palmer number indicate lack of moisture – drought
15 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Current Drought Map
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Drought Impacts 1895-1995
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Drought Impacts 1996-2010
18 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Tendency Trends 1895-1995
75%
35%
58%
119%
32% 47%
62%
162%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0-5 5-10 10-15 15-20Perc
enta
ge In
crea
se fr
om 1
993-
2007
Percentage of 1895-1995 Spent in Drought Conditions
non-manufacturing/commercial industrial
19 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Tendency Trends 1996-2010
50% 40%
52%
140%
57%
17%
88%
163%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0-5 5-10 10-15 15-20
Pere
ntag
e In
crea
se fr
om 1
993-
2007
Percentage of 1996-2010 Spent in Drought Conditions
non-manufacturing/commercial industrial
20 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
National Water Rate Escalation
Questions?
Elisabeth Giever [email protected] 509-372-6179 www.pnnl.gov FEMP Water Efficiency Program http://www1.eere.energy.gov/femp/program/waterefficiency.html