Water and Energy

Conservation Programs and Partnering

River Network

Peer Learning Network

February 29th , 2012

Stacey Isaac Berahzer

UNC Environmental

Finance Center

www.efc.unc.edu

Dedicated to enhancing the ability of governments and organizations to provide environmental programs and services in fair, effective and financially sustainable ways

Serving EPA Region 4

Outline

• Water and Energy Conservation

Overview

• Water Pricing/Rates

• Partnering with your water utility

Water and Energy Conservation Overview

Potential for Financial Savings

• Treating less water less energy consumption

money saved

• Energy represents the largest controllable cost of

providing water or wastewater services to the

public: o 6,583 municipal treatment plants in the US

o Energy represents 25-30% of total plant O&M

• “In audits of 150 facilities…identified energy savings

of over 30%...” K. Moraff, EPA Region 1 (Boston),

Oct. 2011

How Water Utilities are Saving Energy

• Reduce demand during periods of peak electricity rates

• Use automation (e.g. continuously monitoring Dissolved Oxygen probe)

• Routine pump maintenance

• Reduction in voltage imbalance

• Source: WATERGY: Energy and Water Efficiency in

Municipal Water Supply and Wastewater Treatment

Cost-Effective Savings of Water and Energy

• Wastewater plants - biogas options o Evaluation of Energy Conservation Measures for Wastewater Treatment

Facilities September 2010, EPA 832-R-10-005

Financing options for energy efficiency retrofits at

water utilities

Financing • Loan and Grants:

o Example: Through Drinking Water and Clean Water SRFs (green project

reserve)

o Limited, intermittent grant opportunities

• Getting an energy project into the utility's Capital

Improvement Plan budget is an important

milestone

• Highlighting the payback time helps to make the

“business case” for prioritizing energy projects

• More resources at : http://efc.unc.edu/training.html#energy_sustainability

Water Pricing/Rates

Common Types of Rate Structures

• Flat

• Uniform

• Decreasing block

• Increasing block

• Seasonal

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Partnering with your Water Utility

Understanding the Utility’s Challenges

The Conservation

Conundrum

• Water utilities face a dilemma in

encouraging water conservation

o By selling less water, utilities have to

increase rates to cover their costs

oCustomers are essentially being asked to

pay more for less water

What about expenses?

Partnering with your Water Utility

Talking Utility Language

Utility Lingo • “Portfolio Manager Benchmarking”

o provides a comparison of the energy use at specific WWTPs with a

national database of similar plants and results in a numeric benchmark

score

• Environmental management systems (EMS)

• ‘Plan-Do-Check-Act’ management framework

• Financial forecasting and consumption patterns

• RFPs for Energy Service Companies

(http://www.cee1.org/ind/mot-

sys/ww/rfp/index.php3)

Partnering with your Water Utility

Helping water utilities accept the

“new normal”

Plan for Conservation … because it is happening!

• State and Federal water

savings goals

• 1992 U.S. Energy Policy Act

• WaterSense

• LEED

Fixture Maximum Water Use Allowed (effective January 1994)

Water Sense

Toilets (water closets)

Gravity-tank 1.6 gallons per flush (gpf) 1.28 gpf

Gravity-tank, white, two-piece, labeled “Commercial Use Only”

3.5 gpf 1.28 gpf

Flushometer-tank 1.6 gpf 1.28 gpf

Flushometer-valve (except blowout valve)

1.6 gpf 1.28 gpf

Blowout-valve 3.5 gpf 1.28 gpf

Electromechanical hydraulic 1.6 gpf 1.28 gpf

Urinals

Any type 1.0 gpf 0.5 gpf

Showerheads

Any type (except those used for safety reasons)

2.5 gallons per minute (at 80 psi) or 2.2 gpm (at 60 psi)

2.0 gpm (at 20, 45 and 80 psi)

Faucets and Replacement Aerators

Lavatory faucets

2.5 gallons per minute (at 80 psi) or 2.2 gpm (at 60 psi)

1.5 gpm (at 60 psi)

Lavatory replacement aerators

Kitchen faucets

Kitchen replacement aerators

Metering faucets 0.25 gallons per cycle

Overview of Alternate Models

Selling Service as opposed to gallons

of water

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Annually Adjusted Base Charges

• Inspiration = energy sector

• Looks at a customer’s cumulative consumption, AS

WELL AS a snapshot o Snapshot of utility’s peak, or

o Snapshot of customer’s peak

• Water: could the “base charge” for a customer be

set based on customer usage?

Cooperative/Dividend Model

• Inspiration = energy sector/ REI outdoor

• Customers are “members” of utility

• Utility clearly defines its revenue needs (including O&M, debt service, capital reserves, etc.)

• Utility develops a share of this total cost that a “member” should pay for a fiscal year

• Customer pays a fixed monthly fee

• “Extra” funds paid out to customers at end of fiscal year

Fixed Prices for Bundled Services

• Inspiration = cell phone plans

• Customer buys into a “plan” that allows them a certain “bundle of consumption:” o x Gallons of water provided

o x Gallons of wastewater treated

o Access to online usage data

o Insurance on service line

o Etc.

• Customers who use beyond their “plan” limit face much higher rates

Water Budget-Based Rates • Inspiration = western US water utilities

• Basically “individualized” increasing block rates per

customer

• Budget could be based on: o # of people in household, and/or

o Historic annual consumption of household

Contact Stacey Isaac Berahzer

Senior Project Director

Environmental Finance Center

Phone: 770-509-3887

berahzer@unc.edu

www.efc.unc.edu