Accounting For Loss Water & Revenues

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Accounting For Loss Water & Revenues Ohio Section AWWA Southeast/Southwest Districts Joint Spring Meeting Tom Schwing Deer Creek State Park April 21, 2016

AWWA Tools for Water Loss Control AWWA Free Water Audit Software: Reporting Worksheet WAS v5.0 American Water Works Association. Copyright 2014, All Rights Reserved.? Click to access definition Water Audit Report for: Northern San Leandro Combined Water Sewer Storm Utility District (0007900) + Click to add a comment Reporting Year: 2013 1/2013-12/2013 Please enter data in the white cells below. Where available, metered values should be used; if metered values are unavailable please estimate a value. Indicate your confidence in the accuracy of the input data by grading each component (n/a or 1-10) using the drop-down list to the left of the input cell. Hover the mouse over the cell to obtain a description of the grades AWWA Free Water Audit Software: System Attributes and Performance Indicators WAS v5.0 American Water Works Association. Copyright 2014, All Rights Reserved. All volumes to be entered as: MILLION GALLONS (US) PER YEAR Water Audit Report for: Philadelphia Water Department To select the correct data grading for each input, determine the highest grade where the utility meets or exceeds all criteria for that grade and all grades below it. Master Meter Error Adjustments Reporting Year: 2013 1/2013-12/2013 WATER SUPPLIED <----------- Enter grading in column 'E' and 'J' ----------> Pcnt: Value: Volume from own sources: +? 5 1,000.000 MG/Yr +? 1 100.000 MG/Yr *** YOUR WATER AUDIT DATA VALIDITY SCORE IS: 77 out of 100 *** Water imported: +? MG/Yr +? 100.000 MG/Yr Water exported: +? 1 100.000System MG/Yr Attributes: +? 9 25.000 MG/Yr Enter negative % or value for under-registration Apparent Losses: 7,495.000 MG/Yr WATER SUPPLIED: 825.000 MG/Yr Enter positive % or value for over-registration. + Real Losses: 21,267.500 MG/Yr AUTHORIZED CONSUMPTION Click here:? Billed metered: +? 8 700.000 MG/Yr for help using option = Water Losses: 28,762.500 MG/Yr Billed unmetered: +? 9 50.000 MG/Yr buttons below Unbilled metered: +? MG/Yr Pcnt: Value: Unbilled unmetered: +? 9 10.313? Unavoidable Annual Real Losses (UARL): 2,497.30 MG/Yr MG/Yr 1.25% 24061 1.000 MG/Yr Default option selected for Unbilled unmetered - a grading of 5 is applied but not displayed Use buttons to select Annual cost of Apparent Losses: $54,788,450 AUTHORIZED CONSUMPTION:? 760.313 MG/Yr percentage of water supplied Annual cost of Real Losses: $7,368,338 Valued at Variable Production Cost OR value Return to Reporting Worksheet to change this assumpiton WATER LOSSES (Water Supplied - Authorized Consumption) 64.688 MG/Yr Apparent Losses Performance Indicators: Pcnt: Value: Unauthorized consumption: +? 10 3.000 MG/Yr 0.25% 3.000 MG/Yr Unauthorized consumption volume entered is greater than the recommended default value Non-revenue water as percent by volume of Water Supplied: 38.1% Customer metering inaccuracies: +? 5 7.071 Financial: MG/Yr 1.00% MG/Yr Non-revenue water as percent by cost of operating system: 25.2% Real Losses valued at Variable Production Cost Systematic data handling errors: +? 4 5.000 MG/Yr 0.25% 5.000 MG/Yr Apparent Losses:? 15.071 MG/Yr Apparent Losses per service connection per day: 38.95 gallons/connection/day Real Losses (Current Annual Real Losses or CARL) Real Losses = Water Losses - Apparent Losses:? 49.617 MG/Yr Real Losses per service connection per day: 110.52 gallons/connection/day Operational Efficiency: WATER LOSSES: 64.688 MG/Yr Real Losses per length of main per day*: N/A NON-REVENUE WATER NON-REVENUE WATER:? 75.000 MG/Yr Real Losses per service connection per day per psi pressure: 1.70 gallons/connection/day/psi = Water Losses + Unbilled Metered + Unbilled Unmetered SYSTEM DATA Length of mains: +? 7 100.0 miles From Above, Real Losses = Current Annual Real Losses (CARL): 21,267.50 million gallons/year Number of active AND inactive service connections: +? 6 1,000 Service connection density:? 10 conn./mile main? Infrastructure Leakage Index (ILI) [CARL/UARL]: 8.52 Are customer meters typically located at the curbstop or property line? Yes (length of service line, beyond the property Average length of customer service line: +? ft boundary, that is the responsibility of the utility) * This performance indicator applies for systems with a low service connection density of less than 32 service connections/mile of pipeline Average length of customer service line has been set to zero and a data grading score of 10 has been applied Average operating pressure: +? 6 60.0 psi WAS v5.0 AWWA Free Water Audit Software: Water Balance COST DATA American Water Works Association. Copyright 2014, All Rights Reserved. Total annual cost of operating water system: +? 5 $1,000,000 $/Year Customer retail unit cost (applied to Apparent Losses): +? 7 $3.50 $/1000 gallons (US) Variable production cost (applied to Real Losses): +? 7 $3,000.00 $/Million gallons Use Customer Retail Unit Cost to value real losses Water Audit Report for: Philadelphia Water Department Reporting Year: 2013 1/2013-12/2013 WATER AUDIT DATA VALIDITY SCORE: Data Validity Score: 77 *** YOUR SCORE IS: 60 out of 100 *** Water Exported A weighted scale for the components of consumption and water loss is included in the calculation of the Water Audit Data Validity Score Billed Water Exported 5,484.580 PRIORITY AREAS FOR ATTENTION: Billed Metered Consumption (water Based on the information provided, audit accuracy can be improved by addressing the following components: Revenue Water Billed Authorized Consumption exported is removed) 1: Volume from own sources 49,907.000 2: Customer metering inaccuracies Authorized 3: Total annual cost of operating water system Own Sources 49,907.000 Billed Unmetered Consumption 49,907.000 Consumption (Adjusted for 0.000 known errors) 51,866.000 Unbilled Metered Consumption Non-Revenue Water Unbilled Authorized Consumption 0.000 (NRW) 86,113.080 1,959.000 Unbilled Unmetered Consumption 1,959.000 Water Supplied Unauthorized Consumption 30,721.500 Apparent Losses 2,425.500 80,628.500 7,495.000 Customer Metering Inaccuracies 1,490.200 Systematic Data Handling Errors Water Losses 3,579.300 Leakage on Transmission and/or Water Imported 28,762.500 Distribution Mains Real Losses Not broken down Leakage and Overflows at Utility's Storage 21,267.500 0.000 Tanks Not broken down Leakage on Service Connections Not broken down

AWWA Free Water Audit Software AWWA Free Water Audit Software: Reporting Worksheet WAS v5.0 American Water Works Association. Copyright 2014, All Rights Reserved.? Click to access definition + Click to add a comment Water Audit Report for: Northern San Leandro Combined Water Sewer Storm Utility District (0007900) Reporting Year: 2013 1/2013-12/2013 Please enter data in the white cells below. Where available, metered values should be used; if metered values are unavailable please estimate a value. Indicate your confidence in the accuracy of the input data by grading each component (n/a or 1-10) using the drop-down list to the left of the input cell. Hover the mouse over the cell to obtain a description of the grades All volumes to be entered as: MILLION GALLONS (US) PER YEAR To select the correct data grading for each input, determine the highest grade where the utility meets or exceeds all criteria for that grade and all grades below it. Master Meter Error Adjustments WATER SUPPLIED <----------- Enter grading in column 'E' and 'J' ----------> Pcnt: Value: Volume from own sources: +? 5 1,000.000 MG/Yr +? 1 100.000 MG/Yr Water imported: +? MG/Yr +? 100.000 MG/Yr Water exported: +? 1 100.000 MG/Yr +? 9 25.000 MG/Yr Enter negative % or value for under-registration WATER SUPPLIED: 825.000 MG/Yr Enter positive % or value for over-registration. AUTHORIZED CONSUMPTION Click here:? Billed metered: +? 8 700.000 MG/Yr for help using option Billed unmetered: +? 9 50.000 MG/Yr buttons below Unbilled metered: +? MG/Yr Pcnt: Value: Unbilled unmetered: +? 9 10.313 MG/Yr 1.25% 24061 1.000 MG/Yr Default option selected for Unbilled unmetered - a grading of 5 is applied but not displayed AUTHORIZED CONSUMPTION:? 760.313 MG/Yr Use buttons to select percentage of water supplied OR WATER LOSSES (Water Supplied - Authorized Consumption) 64.688 MG/Yr value Apparent Losses Pcnt: Value: Unauthorized consumption: +? 10 3.000 MG/Yr 0.25% 3.000 MG/Yr Customer metering inaccuracies: +? 5 7.071 MG/Yr 1.00% MG/Yr Systematic data handling errors: +? 4 5.000 MG/Yr 0.25% 5.000 MG/Yr Apparent Losses: Real Losses (Current Annual Real Losses or CARL) Real Losses = Water Losses - Apparent Losses: WATER LOSSES: NON-REVENUE WATER NON-REVENUE WATER: = Water Losses + Unbilled Metered + Unbilled Unmetered SYSTEM DATA Unauthorized consumption volume entered is greater than the recommended default value 15.071 MG/Yr 49.617 MG/Yr 64.688 MG/Yr 75.000 MG/Yr Length of mains: +? 7 100.0 miles Number of active AND inactive service connections: +? 6 1,000 Service connection density:? 10 conn./mile main??? Are customer meters typically located at the curbstop or property line? Yes (length of service line, beyond the property Average length of customer service line: +? ft boundary, that is the responsibility of the utility) Average length of customer service line has been set to zero and a data grading score of 10 has been applied Average operating pressure: +? 6 60.0 psi Industry Standard (M36) Free Defaults provided ~10 Volume Inputs ~7 System Data Inputs COST DATA Total annual cost of operating water system: +? 5 $1,000,000 $/Year Customer retail unit cost (applied to Apparent Losses): +? 7 $3.50 $/1000 gallons (US) Variable production cost (applied to Real Losses): +? 7 $3,000.00 $/Million gallons Use Customer Retail Unit Cost to value real losses awwa.org/waterlosscontrol

Water Loss Management Historic Water Loss Management practice focused on: Unaccounted-for-Water (UAW) - Often arbitrary set at a percentage i.e. 15% Did not consider the true source of water loss Apparent or Real Did not consider the cost/benefit of water leak control Water Industry s Best Management Practices focuses on: Accounting for all water there is no Unaccounted-for-Water Determining if water losses are Apparent Losses or Real Losses Addressing Real Losses based on realistic, cost effective activities rather than activity for the sake of activity!

Water Loss Management Water Resource Issue Is water supply (source) limited? Operational Issue Is it limiting the water facility s ability to provide an adequate reliable supply of water to the customers? Economic Issue Is the value of the loss water greater than the cost of recovering the loss water?

Water Loss Impact on Private Water Companies Traditionally Viewed as Economic Issue Disallow cost for chemical and power costs for producing water above the 15% UAW Penalty for an UAW greater than 15% The lower the level of Real Losses in a water system, the higher the cost of further reducing water losses to a lower level. Diminishing return on Water Loss Control activities

Water Loss Audit Bottom Up! Start with the activity Timeframe Minimum one (1) year period Resources Time, Personnel, Money Measurement Tools Meters measuring input into the water system Meters measuring consumption Data Collection Validity of the data

Known Knowns & Knowns Unknowns Develop a Water Balance Quantified via Measurement or Estimates the Consumption and Losses of the water system Based on Knowns Therefore There is no Unaccounted-for-Water!

Water Consumption Authorized & Billed Consumption (Revenue Water) Billed Water Exported Billed Metered Consumption Billed Unmetered Consumption Authorized & Unbilled Consumption (Non- Revenue Water) Unbilled Metered Consumption Unbilled Unmetered Consumption

Water Losses (Non-Revenue) Apparent Losses Unauthorized Consumption Customer Metering Inaccuracies Systematic Data Handing Errors Real Losses Leakage on Transmission & Distribution Mains Leakage & Overflows at Utility Storage Tanks Leakage on Service Connections up to point of the Customer Metering

Who Needs a Meter?

Water Over the Top

Some Definitions System Input Volume The annual volume of water input into the water supply system Authorized Consumption The annual volume of metered and/or unmetered water taken by registered customers and others authorized to do so. Water Losses The difference between System Input Volume and Authorized Consumption consisting of Apparent Losses plus Real Losses Apparent Losses The unauthorized consumption, all types of customer metering inaccuracies and systematic data handling errors (nonphysical losses)

Some More Definitions Real Losses The annual volume of water lost through all types of leaks, breaks, overflows on mains, tanks, service connections up to the customer s metering (physical losses) Revenue Water The components of System Input Volume that are billed and produce revenue. Nonrevenue Water The sum of unbilled authorized consumption, Apparent and Real Losses The Value can be determined by the difference between System Input Volumes and Billed Authorized Consumption

IWA/AWWA Standard Water Balance Own Sources Water Imported Total System Input ( allow for known errors ) Water Exported Water Supplied Authorized Consumption Water Losses Billed Authorized Consumption Unbilled Authorized Consumption Apparent Losses Real Losses Revenue Water Non- Revenue Water Billed Water Exported Billed Metered Consumption Billed Unmetered Consumption Unbilled Metered Consumption Unbilled Unmetered Consumption Unauthorized Consumption Customer Metering Inaccuracies Systematic Data Handling Errors Leakage on Mains Leakage on Service Lines Leakage & Overflows at Storage

Four Pillars of Apparent Loss Control

Unmetered Water System 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 10,000 - Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Four Pillars of Real (Leakage) Loss Control Losses flex with pressure Pressure Management Economic Level of Real Losses Speed and Quality of repairs Unavoidable Annual Real Losses Active Leakage Control Potentially Recoverable Real Losses Current Annual Real Losses Pipeline and Asset Management Selection, Installation, Maintenance, Renewal, Replacement

Water Loss Control Program Components Active Leakage Control Reactive Proactive Optimized Leak Repair Activities Timely & Quality Repairs Controlling the ALR times Water System Pressure Management Control system pressure to reduce leakage & creation of new leaks System Rehabilitation & Renewal Reinvestment in aged infrastructure

Type of Leakage Reported Leakage Generally surfacing, is visible and readily reported by public Unreported Leakage Generally non-surfacing, not visible but is detectable using traditional leak detection methods Background Leakage Small weeping leaks, non-surfacing, no visible water and not detectable using traditional leak detection methods

Water Main Break

Service Leak

Time Period in the Life of a Leak A Awareness, L Location, R - Repair

Time Period in the Life of a Leak Awareness Time The time to become aware of that a leak exists. Location Time The time to taken to pinpoint the source of the leak once aware of the leak. Repair Time The time it takes to actually repair the leak and stop its water loss.

Comparing Water Leak Loss Impacts Example of various leakage types & impacts of time on the volume of loss

How are we doing? Unavoidable Annual Real Losses (UARL) The theoretical value representing the low limit of leakage that could be achieved if all of today s best technology could be successfully applied. Current Annual Real Losses (CARL) Real losses from the system Infrastructure Leakage Index (ILI) The ratio of Current Annual Real Losses (CARL) to Unavoidable Annual Real Losses (UARL

Components of UARL Miles of Water Main (including fire hydrant leads) Gallons / mile of main / day / psi Service Connections from Water Main to Curb Stop Gallons / Service Connection / day / psi Service Connection from Curb Stop to Meter Gallons / Mile of Service Connection / day / psi

Calculation of UARL UARL = (5.4 Lm + 0.15 Nc + 7.5 Lc) X P Variables: Lm Length of water main Nc Number of Connections Lp Average Length of service Line Lc = Nc X Lp P - Pressure

Infrastructure Leakage Index ILI ILI = CARL (current leakage) UARL (technical low leakage limit)

Calculation of ILI ILI = CARL / UARL ILI of 1 means the Current Annual Real Losses equal the Unavoidable Annual Real Losses. While in theory an ILI of 1 is possible, it is not realistic.

Review of AWWA Software Marion PWS Program