advanced metering & meter accuracy sustainability

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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

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Page 1: Advanced Metering & Meter Accuracy Sustainability

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

Page 2: Advanced Metering & Meter Accuracy Sustainability

1Local Drivers and Value of Advanced Metering

Your Challenge is Our Challenge

Page 3: Advanced Metering & Meter Accuracy Sustainability

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

Page 4: Advanced Metering & Meter Accuracy Sustainability

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

Page 5: Advanced Metering & Meter Accuracy Sustainability

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

Page 6: Advanced Metering & Meter Accuracy Sustainability

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

Page 7: Advanced Metering & Meter Accuracy Sustainability

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

Page 8: Advanced Metering & Meter Accuracy Sustainability

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

Page 9: Advanced Metering & Meter Accuracy Sustainability

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

Page 10: Advanced Metering & Meter Accuracy Sustainability

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

Page 11: Advanced Metering & Meter Accuracy Sustainability

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

Page 12: Advanced Metering & Meter Accuracy Sustainability

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.

Page 13: Advanced Metering & Meter Accuracy Sustainability

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

Page 14: Advanced Metering & Meter Accuracy Sustainability

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

Page 15: Advanced Metering & Meter Accuracy Sustainability

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

Page 16: Advanced Metering & Meter Accuracy Sustainability

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

Page 17: Advanced Metering & Meter Accuracy Sustainability

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

Page 18: Advanced Metering & Meter Accuracy Sustainability

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

Page 19: Advanced Metering & Meter Accuracy Sustainability

2

Meter Accuracy Sustainability

AMI Don’t Mean a Thing if Meters are Inaccurate

Page 20: Advanced Metering & Meter Accuracy Sustainability

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

Page 21: Advanced Metering & Meter Accuracy Sustainability

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

Page 22: Advanced Metering & Meter Accuracy Sustainability

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

Page 23: Advanced Metering & Meter Accuracy Sustainability

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

Page 24: Advanced Metering & Meter Accuracy Sustainability

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

Page 25: Advanced Metering & Meter Accuracy Sustainability

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

Page 26: Advanced Metering & Meter Accuracy Sustainability

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

Page 27: Advanced Metering & Meter Accuracy Sustainability

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

Page 28: Advanced Metering & Meter Accuracy Sustainability

Thank You for Your Time

Q/A