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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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
1Local Drivers and Value of Advanced Metering
Your Challenge is Our Challenge
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
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
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
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
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
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
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
2
Meter Accuracy Sustainability
AMI Don’t Mean a Thing if Meters are Inaccurate
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
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
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
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
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