demand management for financial control

WATERSMART SOFTWARE 1

Jeff Lipton, Director of Marketing

[email protected]

Demand Management for Financial Control

Water Finance Conference - Denver, CO: August 31, 2016


Agenda

• About WaterSmart

• Current challenges

• Demand management

• Data analytics

• Engaging customers

• Financial benefits

• A new framework

• The data-driven utility


About WaterSmart®

WaterSmart offers a comprehensive

customer lifecycle management platform

that uses customer data and behavioral

science to manage water demand.

Our award winning software is designed,

developed and delivered in the United

States.

OUR PARTNERS INCLUDE

50+ Utilities

3M+ Water Meters


A challenging landscape• Rising operating costs amid uncertain demand

• Deferred infrastructure investment

• Customer demands for modern information systems


Impact: rising costsDriven by $4.8T* infrastructure backlog

and increasing cost to source and supply

Beecher IPU-MSU 2012

Postage

CPI

Electricity

Natural Gas

Postage

Telephone Services

WATER & SEWER

IND

EX

(1

98

3=

100)

*http://www.usmayors.org/publications/media/2013/04-water-localcosts.pdf


Demand Supply

Water balance


Demand management

• Less demand = increased (new) supply

• Reduce demand variability

• Improve revenue predictability

• Increase O&M efficiency

• Extend asset lifetimes


Cost comparisonsDemand management is the least expensive source of water

supply


Putting it in action…


Behavioral efficiency

ENGAGE

Customer Portal,

Outbound Comm.

ANALYZE

Utility Dashboard

MEASURE

Report results,

outcomes, and trends

UTILITY DATA

Meters, Rebates &

Incentives, Violations

EXTERNAL DATA

Surveys, Property,

Climate


Start with data analysis…

• Segment customer usage

• Identify pressure districts for

priority rehabilitation

• Track progress toward

efficiency goals

• Compare ROI of

various programs

• Improve demand forecasting

• Build consensus through

information transparency


then use household level data


to communicate budgets, allocations, tiers & goals

Combine with

social norms

When budget exceeded

Target messages

Based on level of

compliance

Display on

Customer Portal

Self-service tracking


to engage customers…

• Proactive communications accelerate demand control

• Consumers become more educated on the value of water

• Customer satisfaction soars


Benefits


Operational benefits

• Avoided cost of water supply purchases

• Reduced energy charges for conveyance

• Lower cost for treatment chemicals

• Faster customer support call times


Capital benefitsReduce and Defer CapexREDUCE OR DELAY CAPACITY BY REDUCING PEAK DEMAND


Interest expense benefits

Deferred investment yields substantial savings


A new framework


The data-driven utility

Who wins?

The utility

“My day has changed because I can engage

customers in conversations about water-use

efficiency in a sustainable way.”

City of Newport Beach



Who wins?

The utility The consumer

“You notified me of a possible leak the

weekend of August 31…you were correct. I found it.

THANKS. Your system is TERRIFIC.”

Glendale Water and Power customer



Who wins?

The utility The consumer The community

Lower pace of rate increases, reduced debt burden,

less environmental impact



• Engage customers to make case for Smart Meters

• Deploy powerful analytics and presentment tools to

derive data insights

• Prioritize demand management for cost control

•Reduce pace of rate increases

• Deliver value to customer, utility, and community


Jeff Lipton

[email protected]

Thank You

demand management for financial control

Environment