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State to State Domino EffectThe Water Loss Control Movement

October 3, 2018

Presenter:Steve Cavanaugh, P.E.Chief Innovation Officersteve.cavanaugh@cavanaughsolutions.com

WSI Bootcamp Success!

Nov 22, 2016The Big Picture: Economic InterventionRelevance: Environmental Drivers

Editorial | Don’t just blame the meter readers for San Diego’s water billing scandal

The Big Picture: Economic Intervention

“Some Residents’ Water Bills Jumped 500 Percent or More in the Last 14 MonthsNumerous water customers saw radical jumps in water bills from one bill to the next from January 2017 through February 2018, a VOSD and NBC 7 analysis shows.”

https://www.voiceofsandiego.org/author/ry-rivard/

Relevance: Public Relations

The Big Picture: Economic InterventionRelevance: Public Relations

#48 Enterprise Risk Profile Assessment Factors (Table 10)

The Big Picture: Economic InterventionRelevance: Impact on Bond Ratings

The Big Picture: Economic InterventionRelevance: Increased Supply

The Big Picture: Economic InterventionRelevance: Avoided Cost & Revenue Recovery

WA

OR

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IL IN WV

MDPA

NH

TN

GA

FL

CA

NM

MO KYVA

NC

SC

NY

OH

ID

NVUT

AZ

MT

OK

WY

CO

ND

SD

NE

KS

IA

MI

ME

MA

ALMSAR

LA

AK

HI

DENJ

CTRI

DRBC

AWWA M36 Regulatory Landscape

No Water Loss Policy

Basic Water Loss Reporting

Annual Reporting Using AWWA M36 Terminology

Annual Reporting UsingAWWA Free Audit SoftwareAnnual Reporting UsingAWWA Free Audit Softwarewith Validation

How are we Tracking:

Un-Accounted For Water, I mean…% Water Loss, I mean…

Leakage, I mean…Non Revenue Water…?

Geez…what are we tracking…?

Oh Crap!

Oh Crap!

• Leakage Management:• Active Leak Detection• Pressure Optimization• Repair Time Reduction• Network Renewal

• Revenue Protection:• Theft Mitigation• Meter Optimization &

Renewal• Billing Data System

Integrity• Revenue Recovery

Intervention

21

Right Tool, Wrong Problem?

Validity

Value

Volume

• MG per Year• gal/conn/day• Leakage Index

• Annual Cost ($/year)• Cost by component• Economic Loss Index

• Water Audit Data Validity Score• 95% Confidence Limits• Key Data Input Grades

Measuring Performance:The Three Vs

Cost of Intervention

Water Loss (Volume)

COST

($M

)

Cost of Water & Revenue Loss

Total Cost

Reactive Intervention is Over-SpendingExample: fixing only leaks that surface, replacing meters only when they stop

Economic Optimum Loss & Intervention Economic target from benefit-cost design (M36)

Aggressive Intervention is Over-SpendingExample: replacement of pipes and meters before their optimal useful life

New Supply

New $M

The GAP

AWWA M36 Economic Optimum

The target of the Water Loss Program

M36: State of the Art

Annual M36 water audit

Apparent & Real Loss volumes

Level 1 validation

Annual Water

BalanceAdvanced Validation •Level 2 Analytics•Level 3 Field Study•Margins of Error

Apparent Loss Profile•Theft•Meter Inaccuracy•Data Handling

Real Loss Profile•Reported Leakage•Unreported Leakage•Background Leakage

Loss Profiling & Uncertainty

Costs of losses• by subcomponent• in aggregate• wholesale & retail

Costs of intervention strategies

Program design

System-specific

Cost-Benefit & Targets

Leakage Management:• Active Leak Detection• Pressure Optimization• Repair Time Reduction• Network Renewal

Revenue Protection:• Theft Mitigation• Meter Optimization &

Renewal• Billing Data System

Integrity• Revenue Recovery

Intervention

Validity

Value

Volume

The Big Picture: Economic Intervention

economicanalysis

technical analysis

baseline

cost-effectiveness

AWWA M36 Methodology: Economic Intervention

Stage 1 Stage 2 Stage 3 Stage 4

WashingtonPilot, 10 Systems, 9 Months

WisconsinPilot, 6 Systems, 6 Months

North Carolina + South CarolinaRegional Basin, 19 Systems, Multi-yearGeorgiaFull Scale, 230 Systems, 5 Years

CaliforniaFull Scale, 460 Systems, 2 Years

ColoradoFull Scale, 165 Systems, 2 Years

UtahPilot, 20 Systems, 6 Months

ArizonaPilot, 6 Systems, 6 Months

New MexicoFull Scale, 134 Systems, 12 Months

HawaiiFull Scale, 100 Systems, 4 Years

Water Loss Control Programs - United States

AWWA M36 U.S. State Programs

Massachusetts60 Systems, 2 Years

FloridaPilot, 10 Systems, 12 Months

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Why all of the Interest?

• Assures that water use reporting data is meaningful, not just filling out a form

• Resulting in reliable water use planning data

• Assure that state funding tagged for asset management (Pipe Rehabilitation, Leakage, Metering, etc.) is matched to the real problem and appropriate solution

• Assures that rates are set to cover appropriate cost of operating the utility

27

Statewide Implementation Model

Establish Annual M36 Water Auditing

Achieve Minimum Standard of Audit

Reliability

Manage Water Loss Performance for Long-

Term Reduction

Auditing

Outreach

Training &TechnicalAssistance

DataManagement

Validation

Certification

Benchmarking

Improvement

Statewide Data Validity

Statewide Water Loss

• Under regulatory framework• Multiple Tracks based on experience• Technical assistance:

• AWWA Water Audit• Level 1 Validation• Introduction to component

analysis

California Water Loss Control CollaborativePhase 1 - Timeline Updated December 2015

7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12A) Adoption of Senate Bill 555 AB) Funding for Implementation in place (I-4, P1-10, EA2-8, NL2-8) BC) Submittal of UWMP including 2015 audit - prevalidation CD) DWR rules outlining process of submission & validation stds D

E) Submission of full 2016 audit set - postvalidation E

I-1 Development of CA Water Loss ManualI-2 Development of CA/NV Water Loss Control CommitteeI-3 Review and Formal Adoption of CA Water Loss ManualI-4 Formation of Partnership for Saving Water 451

STEP: PROGRAM DESIGN, MANAGEMENT & COMMUNICATIONS 451P-0 (Task 4) Program Design Development CANV 451P-1 Program Administration (in support of EA and NL tracks) CANV 451P-2 Program Management (in support of EA and NL tracks) CANV 451P-3 Promotional Materials Development CANV 451P-4 Stakeholder Promotional Work CANV 451P-5 Statewide Stakeholder Coordination CANV 451P-6 Participant Education & Recruitment CANV 451P-7 Post-Program Survey CANV 451P-8 Final Reporting CANV 451P-9 Evaluation & Rebalancing of Participant Designations CANV 451

P-10 Concept Design for Post 30-month CANV 451P-11 SWRCB Public Workshop on Water Loss Control SWRCB 15 1 1

STEP: TRACK: EARLY ADOPTERS PROGRAM (FULL TARGET = 156) 156EA-1.1 CUWCC-DWR Workshop CUWCC 60 1 1 8EA-1.2 (Task 3) CANV Technical Assistance CANV 10 2 n/a n/aEA-1.3 MWDOC Water Loss Control Program MWDOC 15 3 n/a n/aEA-2.1 Advanced Validation Subtrack CANV 10 2 n/a n/aEA-2.2 Validation Webcast & Workshop (Advanced) CANV 81 1 1 7

Utility Audit Preparation of 2015 DataEA-3 2015 Data Validation Level 1 CANV 131 2 3 n/a

Utility Audit Preparation of 2016 DataEA-4 Validation Workshop (Advanced) CANV 131 1 4 11EA-5 Follow Up Audit Review CANV 156 1 5 n/a

Utility Submission of 2016 Water Audit Data to DWREA-6 Analysis of Final Water Audit Submissions and Report EA-7 Workshop Administration (in support of EA track) CANV 156EA-8 Program Materials Development for Collaborative (in support of EA track) CANV 156

STEP: TRACK: NEW LEARNERS PROGRAM (FULL TARGET = 295) 295NL-1 (Task 1) CANV Workshop CANV 80 1 1 10

(Task 2) CANV Workshop (small systems, outside of NL group) RW? n/a n/a n/aNL-2 Validation Webcast & Workshop (Basic) CANV 215 1 1 18

Utility Audit Preparation of 2015 DataNL-3 Audit Basics Technical Review: CANV 295 1 2 n/a

Utility Audit Preparation of 2016 DataNL-4 Validation Workshop (Basic) CANV 295 1 3 25NL-5 2016 Data Validation Level 1 CANV 295 2 5 n/a

Utility Submission of 2016 Water Audit Data to DWRNL-6 Analysis of Final Water Audit Submissions and Report

NU

MBE

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WATER LOSS CONTROL COLLABORATIVE - INITIATIVES

2015 2016 2017

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STATEWIDE MILESTONES

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Official Start

Official Start

Official Start

Official Start

Official Start

California Water Loss Technical Assistance Program

Ref CA-NV AWWA Tap Survey - 338 respondents

Identified ways to save both water and money

Identified opportunities to improve revenue throughcustomer meter accuracy

Identified how we calculate the cost of Apparent andReal Losses in the water audit

Identified specific instances where water was notbeing billed correctly

Pressure management activities

Leak Detection activities

Customer meter testing activities

Supply meter verification and/or calibration

Improved data collection, water auditing orData validation practices

Impact for California Utilities

1. Pilot Program utility selection with ADWR & WIFA

2. State agency training 3. Kickoff webinar with Pilot

Program utilities to launch program

4. Data request delivery to pilot utilities

5. Utility data gathering period 6. Consultant compilation &

analysis of utility data for technical work session preparation

7. On-site technical work session 8. Post work-session actions by

utilities & consultant review 9. Post-session survey about

utilities’ experience with the Pilot Program

10. Recommendations & report development & delivery

Arizona Water Loss Program – Pilot #1

Washington Pilot Water Loss Program

Washington Advanced Analysis

Account # Jan Mar May Jul Sep Nov07-0017-00-00 60 55 49 31 20 2010-2021-00-03 30 30 29 27 9 910-6103-00-00 106 97 87 62 29 1910-6885-71-01 41 24 8 7 7 811-1008-00-07 91 69 43 46 42 3512-8610-00-19 34 23 15 16 11 1113-1335-15-03 65 61 52 52 37 3413-1339-12-02 61 59 54 33 12 906-0545-00-00 1050 811 353 170 386 280

Location ID Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total42-87950 2 22 63 21 3 3 26 88 8 3 1 3 24344-14300 20 10 10 4000 1010 1800 14 13 1 4 688230-89100 110 197 157 317 216 412 744 3451 2081 61 1 2 774913-70000 412 14 17 23 2 2 59 64 2 59545-81700 458 536 558 456 440 394 447 509 558 1083 2 5 544610-33200 2 4 4 1143 5 2 2 3 316 148130-95900 233 291 203 258 221 260 258 304 269 216 4 51 256845-78000 400 479 426 378 411 315 356 480 519 52 5 4 382540-15000 283 357 365 278 465 338 282 667 348 307 6 232 392810-11850 1102 585 742 699 1017 664 771 700 9 1 629042-15640 324 363 310 306 482 381 397 576 421 135 10 18 372330-13400 2070 1431 204 243 64 191 26 6 4 13 2 425440-00840 372 4263 9786 950 1 1 8 93 88 16 16 1559440-13900 549 643 697 461 653 535 570 772 316 17 521345-25100 107 39 32 57 23 51 35 41 76 27 26 28 54243-80900 421 786 674 564 677 685 597 881 704 708 26 159 6882

Location ID Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec30-46900 327 465 255 487 1265 298 332 1440 -523 263 321 52230-63500 555 900 526 793 831 1287 -222068 1714 2026 846 624 73330-90200 430 343 320 508 618 832 -115743 789 750 361 341 36533-00100 518 695 547 595 484 585 600 402 -35 435 72333-46000 687 863 449 738 1594 952 -147178 1515 886 543 452 93135-34700 227 281 207 220 212 -50023 235 379 602 247 214 26340-13400 304 482 718 551 342 234 609 665 551 -57029 447 62040-28500 275 875 495 432 563 535 571 1166 -57705 560 418 53540-33200 492 532 544 435 645 520 510 1048 -66674 541 380 52542-04300 435 523 401 495 425 644 470 606 578 536 -5363 53142-05100 1395 2191 1472 1257 931 932 1475 1096 1730 792 -16681 1291

meter degradation

negative consumption

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Phase 1C:Audit

Certification Program kicks in with 2015 Audits

V2.0 Manual Updated. Ch391 Rules updated.

Phase 2B:Statewide Technical

Assistance Projects

(Large Systems)

2015-16

Phase 1B:Validation of 2012,2013

AuditsV1.2 Manual

Updated

Phase 2A:Statewide Technical

Assistance Projects

(Small Systems)

2014

Phase 1A: Validation of 2011 Audits V1.1 Manual

Updated

Phase 2:Statewide Technical

Assistance Projects

(Small Systems)

2013

Phase 1:Statewide Training on

Water Auditing(Small systems)

2012

Annual AWWA Auditing Begins,WLC Committee

FormedV1.0 Manual

Published

Initial Workshops (all systems)

2011

Following 2008 Drought, the

Water Stewardship Act was Passed into

Law

2010

Georgia Water Loss Control Phasing

(Source: AWWA M36 Publication, 4th Ed.)

8/15/2012,hrs

High Service Pumping Rate, mgd

actual flow

High Service Pumping Rate, mgdraw recorded data

0:00 8.69 8.691:00 8.65 8.652:00 8.32 8.323:00 8.11 8.114:00 7.94 05:00 8.02 06:00 8.44 07:00 8.98 08:00 9.34 09:00 9.25 010:00 9.17 011:00 9.12 9.1212:00 9.27 9.2713:00 9.22 9.2214:00 9.08 9.0815:00 8.99 8.9916:00 9.14 9.1417:00 9.18 9.1818:00 9.25 9.2519:00 9.22 9.2220:00 8.82 8.8221:00 8.78 8.7822:00 8.75 8.7523:00 8.71 8.710:00 8.68 8.68

Total 212.43 151.29Average 8.85 6.30

Difference 2.55

Example of Water Pumping Data Gaps an

Georgia Challenges in Source Data

Basin Water Loss Training & Tracking

Phase 4 Results – Basin Aggregation

Individual Utility Metrics (PI’s)

Component Analysis (Technical)

State to State Domino EffectThe Water Loss Control Movement

October 3, 2018

Presenter:Steve Cavanaugh, P.E.Chief Innovation Officersteve.cavanaugh@cavanaughsolutions.com