SEPTEMBER 2014 I water VOLUME 9 ISSUE 3 utility management INTER N ATIONAL

COMMUNICATIONS ENERGY EFFICIENCY Saving energy and cutting water treatment costs on the US-Mexico border

TARIFFS CUSTOMER SERVICES

Incorporating marginal costs in water supply tariffs: prospects for change Improving utility customer services: the case of Eau de Paris

PLUS ... A new data paradigm for water management NEWS

Research finds common coagulant could corrode sewers research team at the University of that take up the hydrogen sulphide and effect for sewers downstream. AQueensland has discovered that a oxidise it to form sulphuric acid. The researchers undertook a two-year common coagulant used in drinking water The team, led by Professor Zhiguo sampling programme in South East treatment can be a prime contributor to Yuan, concluded that to reduce sulphide Queensland, conducted an industry survey global sewer corrosion. formation, it was necessary to reduce either across the country, and undertook a global Aluminium sulphate (alum) is widely the sulphate or the organics in wastewater, literature review and a comprehensive used as a coagulant as it is relatively the latter not being a viable option. They model-based scenario analysis of the cheap and widely available. The paper, recommended that utilities move to sul - various possible sources of sulphate to published in the journal Science, reveals phate-free coagulants, in order to reduce reach its conclusions. that the coagulant is the main source concrete corrosion by 35% after just ten The team also recommends a of over 50% of the sulphate found in hours and up to 60% over a longer period more fully integrated approach to wastewater, which in turn is indirectly of time, generating potentially large savings urban water management to identify the primary source of hydrogen sulphide. in sewer maintenance. other interactions, noting that the main This gas is well known as the cause of rapid The research also discovered that reason the connection had not been degradation in concrete sewers, sometimes the production process for desalinated realised earlier is the institutional reducing their life by up to 90%. or recycled water normally eliminates separation of the urban water system The mechanism for the degradation is sulphate from the final produced water, into water and wastewater services, the presence of microbes on sewer walls creating a potentially valuable protective often run by separate organisations. G

Opponents go to court over Israel fluoridation ban

group of public health experts and since the 1980s, and until the ban around regarding the amount of fluoride actually Asenior dentists opposed to health 70% of the country’s water was fluoridated. consumed, which could lead to excessive minister Yael German’s decision to end The decision to halt fluoridation came in a consumption. Supply of fluoridated fluoridation in Israel have filed an appeal 2013 Supreme Court ruling that estab - water forces those who do not so wish in the country’s High Court. lished a deadline of a year to end the to also consume water with added The group allege that the decision will practice following a report by the Adin fluoride. This approach is therefore not ‘cause harm to public health and signifi - committee, which recommended ending accepted in most countries in the world,’ cantly increase the gap in dental health mandatory fluoridation but also suggested the ministry said. between the well-off and the poor’. allowing local decision making on whether The lawyer for the public health group, German is a long-time opponent of to fluoridate. Joseph Havillio, told press: ‘Fluoridation mandatory fluoridation – in 2002 she A ministry of health press release at must be a scientific decision and not a headed one of a number of local authorities the time of the ban argued that ‘only some political one, so it is absolutely unreason - attempting to end fluoridation of the coun - 1% of the water is used for drinking’, and able that the minister decided it on her try’s drinking water, a stance opposed by cited scientific evidence that fluoride in own, in contravention of the advice of the the health ministry at the time. large amounts can damage health. professional level in her office and of the Fluoride has been added by law to the ‘When fluoride is supplied via medical and academic establishment in public drinking water supply in Israeli towns drinking water, there is no control Israel and abroad.’ G

ADB approves $49 million loan and grant UK gives $252 million to fund Tanzania for Armenia’s ageing water system water and sanitation initiatives

he Asian Development Bank results and joint work on more he UK has announced to aid Tanzania to transition Thas approved a $49 million effective and timely ways to Tfunding of $252 million for from a low to middle-income loan and a technical assistance achieve them. Tanzania’s water and sanitation economy. grant of $900,000 to support The programme blends sector programmes for the WSDP on the other hand, the sustainability of Armenia’s expertise and resources from period 2014-2019. The UK’s whose DFID funding by 2019 road and water sectors, which government planning, finance Department for International will go up to $113 million, have deteriorated due to limited and sector agencies with civil Development (DFID) acting head is a four-component water investments and public manage - society, user groups and devel - for Tanzania, Ros Cooper, said and sanitation development ment system challenges. opment partners, who together the funding will support the initiative focusing on water Half of the country’s water will help to ensure a realistic country’s Big Results Now resources management, rural system needs to be upgraded, course of action. initiative and also complements water supply and sanitation and many rural areas lack The programme is intended the second phase of the Water services, urban water supply access to clean piped water. to produce a more integrated Sector Development Programme and sewerage services and The programme will promote approach to road and water (WSPD). finally sector institutional more efficient service delivery management, with deeper The Big Results Now strengthening and capacity through a clearer focus on reforms in both sectors. G initiative is a plan developed building. G

2 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 NEWS CONTENTS

New Zealand review gives clean bill of health to fluoride he addition of fuoride to drinking water is also being keenly Tdebated in New Zealand, where a review into the health effects of water fluoridation has found ‘no adverse effects of any signifi - cance’ from adding fluoride to public water supplies. The report, commissioned by the New Zealand chief science advisor Sir Peter Gluckman and Royal Society of New Zealand president Sir David Skegg, was the work of an expert panel that looked in particular at the claims that fluoride contributes to the risk of a spread of illnesses and conditions. The report concluded that fluoride ‘does not pose appreciable risks of harm to human health’, including in particular cancer, bone fractures, effects on cognition, reproduction, endocrine function, cardiovascular and renal effects, and effects on the immune system. The report found that the only side effect from fluoridation at the FEATURES levels used in New Zealand (between 0.7 and 1mg/l) was mild dental fluorosis, which can cause minor mottling on teeth. It was 5 CUSTOMER SERVICES found that this was as prevalent in non-fluoridated areas as in Improving utility customer services: fluoridated ones, suggesting it was caused by other sources such the case of Eau de Paris as children swallowing toothpaste. By Xavier Fanchtein It dismissed a much-publicised review from China that claimed fluoridation could reduce children’s IQs by up to one point as not having considered other sources for the issue and suggested the 8 ENERGY EFFICIENCY low observed decrease was ‘likely to be a measurement or statisti - Saving energy and cutting water cal artefact of no functional significance’. An extensive study in treatment costs on the US-Mexico New Zealand found no link, the report added. border The review found ‘compelling evidence’ that fluoridation at By Robert Lonergan, Roberto Molina, Renata Manning-Gbogbo, Frank established and recommended levels produced ‘broad benefits’ Bracamonte and George Hunter for dental health. It also cleared the use of fluoridated water for making up baby milk. Fluoridation in New Zealand, which is being undertaken by 21 of the country’s councils and is not used by 44, has met with vocal 12 TARIFFS opposition from protest groups, which led the councils to call for Incorporating marginal costs in water the federal government to take charge of fluoridation policy earlier supply tariffs: prospects for change By George Anstey and Tom Graham this year. Anti-fluoride group Fluoride Action Network NZ spokesperson Mary Byrne voiced concerns to press about the scope of the review, and said of the panel that she ‘would imagine it was just 16 DATA MANAGEMENT going to be very pro-fluoridation.’ She also voiced concerns that A new paradigm for water the review did not address the ‘broader philosophical issues’ management surrounding fluoridation. G By Nitin Kapoor and Gautam Menon

Suez signs framework agreement with La Caixa bank uez Environnement has announced that it is signing a framework Sagreement to acquire the remaining 24.1% of its stake in Spain’s Aguas de Barcelona (Agbar) from Spanish savings bank La Caixa, in exchange for 22 million new Suez shares and €299 million ($404 million) in cash. The move will give La Caixa a 4.1% holding in Suez, making it the company’s second-largest stakeholder – there is also an intention to reach up to a 7% stake ‘in the near term’, Suez says. La Caixa will reuse the money from the sale to purchase a 15% stake from Agbar in Aigues of Barcelona, which manages water and sanitation in Greater Barcelona and is 70% owned by Agbar, and a 14.5% share from Suez in Aguas de Valencia. Suez says the transaction will strengthen its shareholding Cover photo credits: Frontpage / Shutterstock and Eau de Paris. See features structure with La Caixa, reinforce its position in its Spanish and p5 and p8. Chilean water activities, and rationalise the group structure. G

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 3 NEWS

California water bill gains legislative approval alifornia’s legislature has finally agreed which removed significant amounts of that requires voter approval. Ca compromise $7.5 billion Water Bill ‘pork-barrel’ – patronage – projects, and Governor Jerry Brown told press: ‘We’ve covering a wide range of water infrastruc - the original $11.1 billion ‘pork-laden’ bill, got a real water bond, and we’ve got ture, supply and ecosystems projects to be which had been delayed twice and was Democrats and Republicans that are more put forward for a public ballot in November. thought unlikely ever to gain voter approval. unified than I’ve ever seen, probably, in my The pared-down bill is the largest invest - The funds consist of $7.12 billion in new life. It was an amazing convergence over a ment in the state’s water infrastructure for money and appropriated an unspent $425 big idea, and the big idea is that the future decades. It is also a compromise between million from previous bonds, which will be of California needs a lot of water and we’ve the state governor’s preferred $6 billion bill, redirected to the water priorities – a move got to use it in the best way possible.’ G

Jakarta proposes extra effort Romania. The company operates and sewerage pricing issued by and drainage networks, and for water and sanitation in the counties of Constanta and the Essential Services Commission solid waste collection and disposal. Jakarta’s Public Works Ministry Ialomita with a growing presence of South Australia (ESCOSA). The The money will also be used for is proposing a budget allocation in Calarasi, Dambovita and Ilfov. report makes 28 recommenda - municipal capacity building in of $10.4 billion to improve infra - The EBRD loan is being provided tions, among them lower charges urban planning, financial manage - structure and facilities next year. alongside EU Cohesion Funds for water, a more cost-effective ment and service delivery. Around half will be spent on worth €47.5 million ($63.6 mil - water pricing scheme and a move roads and bridges, with 20% lion). The investment will increase away from property value-based Ecojustice report warns of of the remainder going to the access to clean water sewerage charges. Koutsantonis flaws in Canada's drinking directorate that oversees utilities, and improve sewerage services said that the suggestions would water standards clean water and waste facilities. in the region, enabling 10,000 increase water bills overall, Green pressure group people to receive access to a generating a much higher Ecojustice has issued a report, Nigeria receives funding for safe water supply through connection fee. titled ‘Waterproof: standards’, water supply upgrade extended water networks and which claims Canada’s drinking Nigeria’s Bauchi state is to receive nearly 20,000 to be connected ADB agrees services funding water standards continue to lag a $65 million loan to upgrade its to wastewater networks in 17 for Bangladesh behind international benchmarks water supply infrastructure. The towns and villages across The ADB has agreed a $125 and are at risk of falling further money will fund an upgrade to Constanta, Ialomita and Ilfov. million loan to improve services behind. Ecojustice says that the Gubi dam, provide 50km The project will also support and governance in pourashavas while Canada has, or is tied for of pipeline and an additional investments to ensure that (municipalities) across the strongest standard in 24 100km of pipeline within the quality water supply services Bangladesh, with a focus on instances, it has, or is tied for urban metropolis. The state are available for smaller locations potable water, sanitation, solid the weakest standard for 27 will provide $6.5 million in in Ilfov county. waste management and drainage substances. And in 105 instances counterpart funding. systems. The new project, part of Canada has no standard, where at South Australia rejects an existing programme to support least one other comparator does. EBRD offers funds for pricing report recommenda - improved services, will help 30 Ecojustice’s criticisms are based Romanian watsan tions pourashavas with a total popula - on what it calls ‘a patchwork of improvements South Australia’s treasurer tion of 2.2 million, including standards’ that are in place across The EBRD is extending a new Tom Koutsantonis has signalled 20 district headquarters. The Canada, which vary from province to territory with no overall binding €10 million ($13.4 million) loan that the state government is funding will be used to upgrade to SC Raja SA Constanta, one of unlikely to adopt recommenda - infrastructure and services, national standards for drinking the largest water utilities in tions from a draft report on water including water, wastewater water quality.

planning, consolidation, public / private sector PUBLISHING SUBSCRIPTIONS water roles, leadership, IT, and human resources. Other regular themes include financing, Publisher Water Utility Management International utility management regulation, charging policies, procurement, Michael Dunn is available as either a print or an online INTERNATIONAL corporate governance and customer issues. subscription. Water Utility Management International is Editorial Advisory Panel published four times a year by IWA 2014 price (4 issues): EDITORIAL Publishing. Statements made do not £256 / €387 / $511 Mr John J Batten , ARCADIS, USA represent the views of the International (IWA members: £209 / €314 / $397) Editor / Associate Publisher Dr Enrique Cabrera Jnr ,ITA - Universitat Water Association or its Governing Board. Keith Hayward ([email protected]) Politecnica de Valencia, Spain Contact Mr Philip D Giantris ,Water Supply and IWA Publishing Portland Customer Services Publishing Assistant Sewerage Association of Albania, Albania Alliance House, Commerce Way, Colchester Catherine Fitzpatrick Dr Richard Franceys ,Centre for Water 12, Caxton Street, CO2 8HP, UK Science, Cranfield University, UK London SW1H 0QS, UK Fax: +44 (0)1206 799331 Water Utility Management International Professor Francesc Hernandez-Sancho , T: +44 (0)20 7654 5500 Email: [email protected] focuses on the interests of utility executives, University of Valencia, Spain F: +44 (0)20 7654 5555 policy makers and advisors around the world Dr David Johnstone ,Oxford Centre for Water E: [email protected] Or visit: engaged with the key management issues Research, University of Oxford, UK W: www.iwapublishing.com www.iwaponline.com/wumi/default.htm faced by water and wastewater utilities. As Prof Hamanth Kasan ,Rand Water, South Africa well as senior utility managers, WUMI will Professor Jennifer McKay ,University of South Design & print ISSN (print) 1747-7751 be of interest to regulators, consultants, Australia, Australia Layout: IPL Print & Design Ltd ISSN (online) 1747-776X contractors, academics, and financial, Mr Alejo Molinari ,Buenos Aires ERAS / Printed by Hobbs the Printers, UK © IWA Publishing 2014 technical and legal professionals. ADERASA / Public Utilities Center, Argentina Utility reform and achieving efficiency are Mr Josses Mugabe , World Bank, USA Advertising Dr Renato Parena ,Italy central themes of the publication, encompass - Paul Tilston Mr Eric Rothstein ,Galardi Rothstein Group, T: +44 (0)20 7368 7145 ing topics such as benchmarking, investment USA E: [email protected]

4 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 CUSTOMER SERVICES Improving utility customer services: the case of Eau de Paris

For many years, Paris’s water supply was handled by two major companies. In 2010 a new utility was formed, Eau de Paris, to unify the supply of water, but the decision had to be made whether to outsource customer services or build it up in-house. XAVIER FANCHTEIN discusses the transfer process, the decision to insource customer services and the challenges Eau de Paris faced.

t the beginning of 2010, Eau de Eau de Paris decided to wait for the During this period, Eau de Paris AParis took over Paris’ water implementation of its new information installed a new way of working with supply and as well as the challenge system before unifying the customer the former delegators, setting up weekly of bringing together two water service.Therefore, the utility outsourced meeting with key performance indicator supplies previously controlled by this activity for an 18-month period to (KPI) reviews. At the same time, Eau de two separate companies, the new the original operators,Veolia and Suez. Paris took advantage of these exchanges utility also had to face the challenge to specify its new customer relationship of what to do regarding its customer A period of transition management software. After six months service activities. At the end of the original delegation the city council decided to stop out - Eau de Paris did not have the human contracts, the technical staff from Suez sourcing and brought all customer resources or IT infrastructure for this and andVeolia were transferred to Eau de services in-house. especially did not have the skills. So, Paris, but not the billing and customer when the consulting firm assisting Eau de management staff. Nevertheless, it was Customer service insourcing: Paris through the process of remunicipal - clear that customers could not wait an easy decision? isation advised the utility to outsource until the new software had been Different options this activity, it was clearly the best option. installed, hence these activities were Eau de Paris succeeded in maintaining Before 2010, customer services were outsourced. However, the utility’s the quality of the water service with managed by the two companies who customer director thought that it no problems, but, according to some, had been in charge of supplying Paris was important to keep a part of the the remunicipalisation was not totally with water:Veolia and Suez Environ- customer service department in house completed.The municipal council nement. Each company managed its own to help Eau de Paris to understand the decided in July 2010 to insource customer services for its own side of the activities taking place. So while the customer service activities because river Seine, which meant that there were management of the call centre and the to their mind it is a core business: two call centres, two sets of staff and two billing process remained outsourced to ‘how can you listen to your customers invoice providers.This, despites all efforts, the former operators, the team who if you’re not close to them’? implied a differing quality of service for handled the complex claims was At that time the customer director customers. insourced. was preparing a call for tender to find a provider capable of unifying the cus - tomer services from the two previous companies as well as capable of handling all interactions with customers (phone calls, mail and invoices).This decision was unexpected as it had only been six months since Eau de Paris had developed its customer department and it is quite different to manage a contactor rather than managing customer services yourself. As the deadline of the new software drew closer, the insourcing project was launched rapidly in September 2010. There were many things to do, starting with finding a company to implement the new customer services department.

A two-phase transfer In order to simplify the transition, it had been decided in accordance with the IT department to separate the transfer of the As customer expectations increase, customer services have to continue to improve. Credit: Eau de Paris. left side of the Seine from the right side

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 5 CUSTOMER SERVICES

support and eventually train the future customer service agents. From the beginning Eau de Paris decided to focus on quality. It took six weeks to train customer service agents with regards to water supply activities and customer relationship management, and to organize technical visits.The timescale can be seen in Figure 2.

Customer services Eventually, in October 2011, the cus - tomer service department of Eau de Paris was in charge of the whole area of Paris. Figure 1: Unifying and insourcing the customer service The procedures were unified and the service was operational, but it took several months to become fully efficient. It took time to control the new software, to learn procedures, and fix bugs and work with all departments involved in providing customer service. The customer department was set up with different assignments (Figure 3): • Managing relationships with both contractors and end-users.This required a platform of a range of contact points, composed with a front office and a back office, which handles customers’ calls, mails and emails and handles complex claims. • Billing customers.The department had to bill customers quarterly and there had to be an engineer in charge Figure 2: The macro planning of the insourcing project of computing and managing water meter readings using software which one.Therefore,Veolia’s contract was first six months.The activity was flat over can compute bills and analyze water extended by three months to manage the year, which simplified the evaluation. consumption. customer services for the right side It took six months for Eau de Paris to • Offering new products and services. of the river, while Eau de Paris handled recruit agents, purchase the vocal server, A marketing team was developed the customer service of the left side write down unified procedures, test the dedicated to creating and developing (Figure 1). new CRM software, build the training new products and services, such as This choice was made considering both contracts and the fact that the left side was smaller with less activity. Looking back it was maybe not the best choice as it took the Eau de Paris team six intense months instead of three and included two phases of tests, two data migrations and two training sessions. This was also hampered by the fact that Eau de Paris did not have a good com - mand of its new information system.

Installation Once the place to install the call centre had been found, it became an urgent matter to hire managers in order to help with recruitment, procedures and training. To estimate the number of staff need - ed, Eau de Paris referred to the activity the former operators managed during the Customer Service operator at work: Credit: Sofièn Haddaji, Eau de Paris.

6 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 CUSTOMER SERVICES

Director

Multi-contact Centre Customer claims Reading control & billing Marketing Process & Quality

8 agents 25 agents 6 agents (Readings collection 6 agents 2 agents is outsourced)

Figure 3: Eau de Paris customer department’s organization

online customer care, water leak alerts reporting, standardising customer services higher and Eau de Paris is not at the and unique invoices.There were also and increasing public education with cutting edge of the customer service fountains to manage and the website regards to water consumption. compared to other companies, for exam - and a key accounts team was devel- Most of all, insourcing allowed the ple in the telecom industry. Eau de Paris oped, dedicated to handling relation- utility to save a lot of money as the price could develop its online customer care ships with customers who use a lot per contact and per invoice sent have and social media to enable customers to of water or who have many buildings. been significantly reduced (Figure 4). interact with the utility 24/7. Eau de There is also a solidarity representative This saving has enabled Eau de Paris to Paris must continue to develop new who is in charge of proposing financial lower the price of drinking water by 8%. services such as a leak alert, but it is also help to customers who have difficulties necessary to improve its knowledge of in paying water invoices. Conclusion customer habits in order to better meet • To support these services, a process & Insourcing the customer service was their needs. quality department was formed, which certainly not the easiest choice to make, These improvements must not just is in charge of optimizing processes and especially when larger companies prefer focus on customers, however. Eau de measuring customer satisfaction to outsource this activity to more spe - Paris also has a responsibility towards its cialised companies. Parisian end-users by being a public The end result But the will of the municipal council service, in order to help them to lower After a year, Eau de Paris’ customer to get closer to its end-users drove this their consumption and help them realize service department succeeded in main - transformation and it has been a success. that water is a resource to protect. G taining the quality of service delivered to The quality of service is excellent and its customers and was presented with an customers are satisfied: 72% customers award for‘Customer Service of theYear’ interviewed found that the quality of byVISEO conseil. service has improved since 2010.The Besides insourcing the customer price of the water has diminished and it This paper was presented at the 7th IWA service, the unification of both customer has directly benefited Parisians. International Conference on Efficient Use and services enables Eau de Paris to make However, some challenges remains. Management of Water (Efficient 2013), Paris, significant improvements with regards to Customers’ expectancies are growing France. 22-25 October 2013.

Outsourced Insourced

About the author: Xavier Fanchtein was the Customer Service Manager at Eau de Paris, Paris, France. Email: [email protected]. Figure 4: Evolution of the costs per contact and per invoice sent

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 7 ENERGY EFFICIENCY Saving energy and cutting water treatment costs on the US-Mexico border

The Border Environment Cooperation Commission has become a key promoter of efforts to reduce water utility energy costs in the US-Mexico border region. ROBERT LONERGAN, ROBERTO MOLINA, RENATA MANNING- GBOGBO, FRANK BRACAMONTE and GEORGE HUNTER look at how energy auditing of treatment facilities can help identify opportunities to make cost savings.

Aerial shot of the US-Mexico border with the Mexican city of Agua Prieta at the top and the US city of Douglas at the bottom. Douglas was chosen to receive technical assistance funding to support the development of its wastewater infrastructure. Credit: Frontpage / Shutterstock.

ater and wastewater treatment of acid rain), and 38% of nitrogen oxides less energy use means a reduced impact Wand distribution systems (a contributor to smog and component of on the environment. account for an estimated 75 billion acid rain) (Arora and LeChevallier, 1998). TetraTech has taken a proactive posi - kilowatt-hours (kWh) of overall US Historically, energy efficiency was tion in facilitating energy conservation electricity demand (EPA, 2008). In rarely considered to be an important and promoting renewable energy produc - addition, around 4% of the nation’s metric when designing water and tion at water and wastewater treatment electricity use goes into moving and wastewater treatment plants. However, plants by performing energy audits, treating water and wastewater, and in recent years, federal, state and local implementing energy conservation electricity accounts for approxi - governments have started taking steps measures (ECMs), and installing renew - mately 80% of municipal water to mandate, support, and / or incentivise able energy at municipal treatment facili - processing and distribution costs efforts to increase energy efficiency and ties. TheTetraTech team has completed (Goldstein and Smith, 2002). alternative energy production in such more than 50 comprehensive energy Generating electricity requires the plants nationwide. audits for plants. burning of fossil fuels: in the US, electrici - This is largely due to a range of factors. ty generation accounts for 35% of all Wastewater treatment costs are expected Border Environment Cooperation emissions of carbon dioxide (a major to increase by 20% over the next 15 years Commission contributor to global warming and cli - (EPA, 2008), and budgets are tight due One vehicle thatTetraTech is using matic change), 75% of sulphur dioxide to the weakened state of the economy. to complete energy efficiency projects (a respiratory irritant and a component Electricity costs continue to rise, and is a service contract with the Border

8 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 ENERGY EFFICIENCY

110 Projects in U.S. Environment Cooperation Commission $3,298.25M California, (BECC).The BECC is a bi-national 26 Projects New Mexico, Arizona, $1,229.93M 10 Projects governmental organisation established in 20 Projects $68.49M 1993 by the US and Mexico to preserve, $359.16M protect and enhance the environment and human health in the region that lies Texas, Baja California, 54 Projects between 100km north and 300km south 34 Projects $1,640.67M Sonora, $1,574.01M of the US-Mexico border through project 30 Projects Chihuahura, certification, technical assistance and $647.33M 28 Projects capacity building. $512.90M Coahuila, The US EPA’s US-Mexico border 5 Projects water infrastructure programme (BWIP) $162.99M uses US EPA grant money together 126 Projects in Mexico Nuevo Leon, $4,906.77M 8 Projects with funds from other sources to $759.28M create affordable, high priority water Tamaulipas, infrastructure projects that otherwise 21 Projects could not be implemented.The BECC, $1,250.26M in coordination with the US EPA, seeks to ensure the environmental and eco - Figure 1: Certified projects (1995 to date) - 236 projects with an estimated total cost of $8.205 billion nomic sustainability of BWIP projects in the region.To that end, the BECC ment identified that providing adequate mately 15.8km 2.The city population is and US EPA are incorporating energy drinking water and wastewater services about 3757 residents according to the and water audits into the development continues to be a need for residents in US 2010 US census, and it is located in of projects being implemented on both border counties.While the primary gap in Cochise county, in the southeastern sides of the US-Mexico border. centralised service coverage largely exists corner of Arizona. The BECC administers service in a rural setting, an investment would As a task order under the service contracts for energy and water audits for likely be required whether connecting to contract,TetraTech recently completed water and wastewater treatment plants, as a centralised system or making improve - an energy audit of the existingWillcox well as value engineering (VE) reviews of ments to address drinking water quality or wastewater treatment plant and collection plant design projects in the border region. adequate on-site wastewater disposal. system, as well as aVE review of the 60% To date, these efforts have been supported Table 1 summarises the US needs and design of the proposed upgrade to the by funds administered by BECC from the investment estimates for water and waste - plant.The city ofWillcox, Arizona was US EPA (BWIP and Border, 2012), water services in the border region selected by EPA Region 9’s US-Mexico BECC’s technical assistance programme, throughout the states of California, BWIP to receive project development and funds from the US Agency for Arizona, New Mexico andTexas. assistance programme (PDAP) technical International Development (US AID), the Based on the extent of this existing assistance funding, managed by BECC, to World Bank and private sector partners. need and the rising costs of energy bur - support project development tasks such as As of June of 2014, BECC had certified dening the operational costs of utilities, planning, environmental analysis and 236 environmental infrastructure projects: the energy audit efforts are expected to design for wastewater infrastructure 126 in Mexico and 110 in the US, with identify opportunities to relieve some of projects. an estimated total cost of approximately the demand on financial resources, which The energy audit was divided into two $8205 billion. Figure 1 shows the can then be reallocated to address new separate tasks, the first of which was to locations and associated costs of capital investment needs.These resources establish an energy baseline.This included these projects. can be used to fund projects directly or a review of energy usage, evaluation of BECC has made an effort to perform leverage resources from other sources, rate structures, field testing of major a US border region needs assessment e.g., loans and grants. equipment and considerations for opera - focused on defining the lack of access to tional changes during the evaluated time centralised water and wastewater services, Willcox WWTP energy audit period.The team performed wire-to- and to evaluate service needs in the solid The city ofWillcox is about 99km north water efficiency tests on all 11 of the waste and air quality sectors within the of the US-Mexico border and encom - pumps to determine how efficient they 100km border region.The needs assess - passes an incorporated area of approxi - were at utilising grid power in pumping

Table 1: Access to centralised municipal services – US needs and investment estimates

State Number Drinking water Estimated investment Wastewater Estimated investment Total estimated of counties – unserved – drinking water ($) – unserved – wastewater ($) investment ($) California 2 38,864 287.6M 70,803 849.6M 1.14B Arizona 4 133,491 987.8M 138,359 1.67B 2.65B New Mexico 5 11,826 87.5M 38,669 464M 551.5M Texas 25 87,377 646.6M 289,609 3.48B 4.12B Total US border region 36 271,558 2.01B 537,440 6.45B 8.46B

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 9 ENERGY EFFICIENCY

Table 2: Willcox WWTP Energy Conservation Measure (ECM) list

Energy Conservation Measure Estimated Annual quarter of 2016.TheVE team included Savings an electrical engineer, a process engineer, ECM 1: Replace inefficient influent lift station pumps 4600 a civil / structural engineer, an ener - ECM 2: Replace inefficient Magic Circle lift station pumps 150 gy/biosolids engineer, and a ECM 3: Replace inefficient effluent lift station pumps 2800 ECM 4: Replace inefficient Wood Street lift station pumps 300 CertifiedValue Specialist (CVS). ECM 5: Replace inefficient Railroad lift station pumps 450 A subconsultant,Value Management ECM 6: Install solar photovoltaic energy N/A* Strategies, provided the CVS team ECM 7: Install flowmeters on lift station discharge lines TBD** member. ECM 8: Develop an asset management plan TBD** The objectives of theVE study were to: ECM 9: Improve pre-treatment requirements TBD** • Improve the overall plant process control * Not applicable ** To be determined • Investigate ways to reduce O&M costs wastewater.The wire-to-water efficiency limited run times, the team determined incurred by the city ofWillcox tests were performed on the existing that ECMs 2, 4, and 5 were not economi - • Review alternative biosolids disposal pumps in an‘as is’ scenario, and the result - cally viable for implementation based on processes ing metric is a product of the motor energy savings alone. • Increase value by optimising the efficiency and pump efficiency.This was relationship between project scope, achieved by measuring each pump’s flow Willcox wastewater treatment plant cost, and schedule rate and electrical demand simultaneously value engineering review to provide the data required for the In 2011, the city initiated a plan to During the course of theVE review, a efficiency calculations. upgrade the plant treatment processes number of analytical tools and techniques The second portion of the scope while maintaining a plant capacity of were applied to develop a better under - included a review and analysis of oppor - 2.27MLD. Based on the technical evalua - standing of the baseline concept. A major tunities to reduce energy consumption tion performed byTetraTech in 2012, component of this analysis wasValue and demand and / or generate renewable the recommendation for upgrading the Metrics, which seeks to assess the ele - energy.The energy audit deliverable was treatment plant was to install an activated ments of cost, performance, time, and risk a report identifying the baseline energy sludge process incorporating oxidation as they relate to project value.The key usage, as well as each ECM and its associ - ditches. Subsequently, a design consultant performance attributes identified for the ated technical and economic feasibility. was retained to complete the detailed project were operating costs, regulatory As part of the energy audit, the team design for the upgrades to the existing compliance, plant operations, identified five ECMs related to pump Willcox wastewater treatment plant. constructability and expandability. station efficiency upgrades and evaluated In accordance with funding programme Below is a summary of the major the preliminary feasibility of installing requirements, BECC procured and observations and conclusions identified solar photovoltaic renewable energy at the contracted a value engineering task during the evaluation of the baseline plant.The team also performed a detailed withTetraTech for theWillcox plant concept, which led theVE team to devel - process evaluation in order to identify design.TetraTech’s four-dayVE review op the alternatives and recommendations opportunities to reduce the aeration, was conducted following the 60% presented in the final report.The key cost mixing or pumping energy required design phase, with final design scheduled drivers for this project were the oxidation for biological nutrient removal.Table for completion in the third quarter ditch, residuals holding tank / solids 2 lists the ECMs identified along with of 2014. Information provided during dewatering / residuals storage, clarifiers the estimated annual savings associated theVE review indicated that the project and the O&M building. with each. was scheduled for completion of con - From a performance perspective, the Note that due to small pump sizes and struction and start-up in the second key drivers were operational costs, regula - tory compliance and plant operations. Figure 2: Comparison of value – baseline concept and VE strategies TheVE team was interested in maximis - ing the quality of the effluent to benefit the city. A key focus of theVE review was to investigate ways to reduce O&M costs, in particular for transporting biosolids and the costs of the plant’s electricity consumption. TheVE review generated 24VE alternatives, each of which would result in increased value and a reduction in capital costs and / or operating costs if imple - mented. Several of theVE alternatives would result in a significant reduction in annual electricity and / or fuel consump - tion if implemented. TheVE alternatives included solids drying onsite followed by land application in lieu of landfill disposal, adding anaero -

10 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 ENERGY EFFICIENCY

Table 3: Summary of VE strategies

Strategy description Initial cost savings LLC savings* Change in schedule Performance change Value change

VE strategy: VE alternatives $1.072.600 $4.061.000 -2 months +29% +44% 1,3; 2,0; 3,0; 4,0; 5,0; 6,0; 7,0; 8,0; 9,0; 10,0; 11,.0; 12,0; 13,0; 14,0; 15,0; 16,0; 17,0; 18,0; 19,0; 21,0.

* Life Cycle Cost (LCC) savings are based on the sum of the Capital Costs + Net Present Value (NPV) of the O&M costs. The baseline concept has a capital cost of $9,553,000 (using a blended rate of 11 cents/kWh for the electrical utility rate). The baseline concept has NPV for a 20-year term of the O&M costs = $9,413,000. bic selector tanks and eliminating the tasks for planning, environmental analysis References effluent filters, installation of oxidation and design of wastewater infrastructure Arora, H and LeChevallier, M (1998), Energy manage - reduction potential (ORP) probes in the projects, including the expansion and ment opportunities. Journal – AmericanWaterWorks oxidation ditches to improve process upgrade to the wastewater collection Association, 90:2:40. control and avoid excessive aeration, system in the Bay Acres Colonia and Ensuring a sustainable future: an energy management eliminating the waste activated sludge improvements to the Douglas wastewater guide for wastewater and water utilities (2008), (WAS) pump, eliminating the cover over treatment plant.The preliminary engi - Environmental Protection Agency/Global Environment theWAS storage tank, installing aeration neering reports and the environmental &Technology Foundation,Washington DC, US. control for theWAS storage tank, information document have been com - Goldstein, G and Smith,W (2002), US electricity installing two electrical feeds into the pleted, and the National Environmental consumption for water supply & treatment – the next half plant instead of one, and using driven Policy Act (NEPA) authorisation process century.Water & Sustainability (Vol 4), Palo Alto, piles in lieu of drilled piers, among is underway. A scope of work is currently California, US. others. being developed for the final design of A summary of the recommendedVE the project. The original version of this paper was presented at strategies (combinations ofVE alterna - To support identification of additional the IWA Water, Energy and Climate Conference 2014, tives) is provided in Figure 2 andTable 3. improvements to increase the sustainabili - held in Mexico City, Mexico, 21-23 May 2014. The chart illustrates the relative trade-offs ty of the project and the utility, the between performance versus cost and BECC retainedTetraTech to perform an schedule.The line indicates the net energy audit of the existing wastewater percentage change in total value relative collection system, as well as water and to the baseline concept. energy audits of the drinking water The implementation of theVE strategy system.The recommendations of the could result in an 11% reduction in the water and energy audits may be integrat - initial (capital) cost, a 43% reduction in ed into the proposed project final design operating costs (LCC), and could reduce or implemented independently by the the construction schedule by two months community. while providing significant improvements in regulatory compliance, plant opera - Conclusions tions, constructability and expandability. These projects are just two examples of At the end of the project, the results of the numerous water and wastewater the energy audit and theVE review were energy projects in bothTetraTech’s presented to the city ofWillcox.The and the BECC’s portfolios, but this is stakeholders in attendance either in just a drop in the bucket.The industry Bob Lonergan person or via conference call were is saturated with similar, untapped BECC, the US EPA, the North American opportunities. About the authors: Development Bank (NADB), the It is going to require a significant Robert Lonergan is Program Manager for Water Arizona Department of Environmental departure from current practices for the and Wastewater Energy Projects at Tetra Tech, Quality (ADEQ) and the city ofWillcox. wastewater treatment industry and the Inc., Denver, Colorado, US. Email: general public to view wastewater as a [email protected] Douglas energy and water audits valuable energy resource, instead of a The city of Douglas, Arizona is in the nuisance that must be disposed of. It is Roberto Molina is a Program Manager and southeastern corner of the state in essential that governments promote and Renata Manning-Gbogbo is Director of Projects at the Border Environment Cooperation Cochise county. Douglas is on the US- provide incentives for energy efficiency Commission, Ciudad Juárez, Chihuahua, Mexico international border, adjacent to and generation in order to reduce our Mexico. the city of Agua Prieta, México, and is carbon footprint and negative impact approximately 190km southeast of on the environment. Energy audits Frank Bracamonte is Utilities Supervisor at the Tucson, Arizona. complemented by value engineering City of Willcox, Arizona, US. Douglas was chosen by EPA Region 9’s offer a good way to achieve these US-Mexico BWIP to receive PDAP efficiencies.The US and Mexico George Hunter is Vice President of Value Management Strategies, Sacramento, technical assistance funding managed by have set an important precedent California, US. BECC to support project development that other nations should follow. G

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 11 TARIFFS Incorporating marginal costs in water supply tariffs: prospects for change

There are two main methods used for incorporating marginal costs into tariff setting so costs are recovered and consumers are encouraged to be efficient in their water use: Turvey and Average Incremental Cost. GEORGE ANSTEY and TOM GRAHAM discuss the advantages and disadvantages of the two methods and examples of their application.

cademics and policy makers concepts can be difficult to apply.Two finally describe how these approaches Ahave widely acknowledged that main methods for incorporating marginal have been implemented in practice. the price of water has been substan - cost signals into price setting have tially below the cost of providing emerged in the literature, which we shall Why use long run marginal costs for the water services (Rogers et al, 2002). call the‘Turvey’ approach (also known as water sector? Pressure on utilities’ budgets has led the‘perturbation approach’) and average Economic theory, roughly speaking, states to a growing acceptance of the need incremental cost (AIC) approach. that that markets are efficient mecha - for full cost recovery (FCR). Today, These long run marginal or incremen - nisms when prices are set equal to the in most developed regimes at least, tal cost concepts are not purely theoreti - cost of producing one more unit of customers are expected to pay for cal approaches for setting prices favoured output, known as‘marginal cost’ (this their water services. by economists; regulators internationally, result, the First FundamentalTheorem The widespread acceptance of FCR particularly in Australia, have begun to ofWelfare Economics, requires a number has brought with it a new pricing chal - adopt these marginal cost concepts as a of caveats and assumptions, excluded lenge – not just ensuring that customers method for setting tariffs and encourage here for brevity – for reference, see any pay for the services that they receive, but efficient consumption. Although the standard micro-economics textbook). that customers consume an efficient Turvey approach has stronger theoretical The cost of producing one more unit quantity of water. Utilities adopting more underpinnings, regulators have mostly of output depends on the time period expensive technologies at the margin implemented AIC approaches for reasons concerned. Short run marginal cost (such as the expansion of desalination of computational simplicity. (SRMC) describes the cost of meeting plants in Australia) may have incremental The distinction between marginal costs an additional unit of water demand, costs far outstripping their historical for the purpose of setting prices and cost keeping capacity constant, whereas average costs of service and the prices concepts used more widely is important long-run marginal cost (LRMC) relaxes they charge to customers. Moreover, here.The forward-lookingTurvey this constraint and allows supply-side rising water scarcity, increasing bills and approach and AIC approach may not capacity to be varied. economic pressures on the population as be the only relevant cost standards for In principle, prices could reflect either a whole have resulted in an increasing calculating marginal costs, for example SRMC or LRMC. Indeed, if capital scrutiny of tariffs, even in water-rich in other contexts, where specific legal expenditure (capex) could be split into jurisdictions like the UK. standards may apply.This article focuses very small projects, SRMC and LRMC Economic theory suggests that margin - its attention on tariff setting and the would converge (seeTurvey, 2000). In al cost pricing is the key to ensuring implications of marginal cost concepts for practice, in industries like the water customers make efficient consumption economic efficiency.We begin by outlin - industry, capex tends to be‘lumpy’ and decisions. In the water industry, which ing the need for long run marginal costs consist, at least in part, of significant requires significant upfront investment in setting prices, go on to discuss how to upfront investments. In such circum - for long-lived assets, the marginal cost calculate each of these approaches and stances, SRMC and LRMC may not be equal and SRMC may not be a reliable basis for setting water tariffs, because: • SRMC is more volatile than LRMC: SRMC can rise as high as the costs of cutting off (the value of lost load). High and volatile prices may not provide a credible method for charging con - sumers / financing water utilities. • Costs of reflecting SRMC in prices are higher than LRMC: in order to reflect SRMC accurately in prices, prices would have to vary on a short run basis. That would require a wide roll-out of smart water meters, which, in the first instance, are not there, and in the second instance, may not justify the investment costs. Figure 1: Turvey approach to estimating LRMC • SRMC pricing may incentivise fewer

12 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 TARIFFS

investments to reduce consumption than LRMC: Many methods of reduc - ing consumption of water take the form of long-term investments such as households’ investment in water-using appliances, such as dual-flush toilets, or industrial users’ locations. If consumers are not fully rational or have limited access to credit, they may not make investments to reduce exposure to volatile peak-time prices.

Accordingly, regulators and companies in the water industry use long-run cost concepts, such as the‘Turvey’ and AIC Figure 2: AIC approach to estimating LRMC approach to provide marginal cost signals through tariffs. incurred. the AIC approach can depart quite Similarly, marginal costs under the significantly from the‘true’ underlying The Turvey approach to long run Turvey approach can be very sensitive to LRMC. marginal cost the hypothesised increment to demand. TheTurvey approach, named after Ralph In some instances, where the hypothe - Turvey and AIC in the water sector Turvey (Turvey, 1969), estimates the cost sised increment has a natural interpreta - There are no established rules regarding of serving an additional increment in tion, such as the water demand of an which of the two methods results in demand.The analyst takes the following additional customer of a particular type, higher or more volatile cost estimates and steps (see Figure 1): it may be simple to decide on the incre - no general‘equivalence’ theorem of • Step 1: forecast supply and demand ment. In other cases, the increment size convergence for the two approaches. In under the optimal expansion plan for may be subjective and the choice of that practice, the choice between theTurvey the water utility increment may have a large impact on the approach and the AIC approach requires • Step 2: hypothesise a permanent estimated marginal costs. consideration of a number of factors: increment (or decrement) to the • Theoretical robustness and stability: expected demand forecast and estimate The AIC approach both approaches seek to estimate the a new optimal expansion plan in light The AIC approach estimates the average incremental cost of output. From a of that increment (or decrement) cost of meeting future demand.The theoretical standpoint, theTurvey • Step 3: calculate the LRMC as the analyst takes the following steps (see approach has the edge over the AIC change in the present value of expendi - Figure 2 below): approach because it estimates the ture in step 1 and step 2, divided by • Step 1: forecast the costs of serving marginal cost of incremental output, the present value of the hypothesised demand including anticipated growth whilst the AIC approach estimates the increment (or decrement) in expected under the optimal expansion plan for average cost of incremental output. demand the water utility (i.e. the same as under On the other hand, as an average cost theTurvey approach) concept, AIC may offer greater stability If the underlying investments undertaken • Step 2: forecast costs without demand in prices. do not change between step 1 and step 2, growth • Informational intensity and subjectivity theTurvey approach boils down to • Step 3: calculate the LRMC as the of inputs: both theTurvey and AIC calculating the additional interest costs of change in the present value of expendi - approaches require the choice of bringing investments forward (back) over ture in step 1 and step 2, divided by the subjective parameters, including the time to meet demand at lowest cost. Of present value of additional demand reliance on expectations (i.e. demand course, it may be possible to reduce the served forecasts) and unknown parameters cost of meeting the additional demand that have to be estimated such as the further by optimising the types of infra - The principal shortcoming of the AIC appropriate private or social discount structure investments for the higher approach is that it uses average capital rate.TheTurvey approach requires an demand level. costs to approximate the likely marginal extra degree of subjectivity in that it TheTurvey approach is very close to costs associated with a change in demand. requires the utility or the regulator to the marginal cost concept and has eco - Specifically, the AIC approach does not forecast additional optimal expansion nomic theory on its side. However, in explicitly consider the water supply plans, with and / or without a hypoth - practice, theTurvey approach can be data capacity associated with marginal capital esised increment to demand. intensive. For example, the results are projects. Rather, the AIC approach • ‘Lumpiness’ of capex: in circumstances sensitive to the forecast of demand and averages the cost of future projects by where the marginal capex for a system defining two optimal expansion plans dividing by the present value of the is relatively‘lumpy’, the AIC approach into the future. If demand does not change in demand supplied by them leads to a large amount of‘spare’ capac - materialise as forecasted, then the prices without discriminating between the‘size’ ity entering into the marginal cost calculated could be significantly out of of individual projects.The implication of calculation under the AIC approach. In line with the actual marginal costs this is that the estimates of LRMC under circumstances where system capacity is

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 13 TARIFFS

Figure 3: AIC approach to estimating LRMC under 'lumpy' (left) and ‘smooth’ (right) capex

expanded more‘smoothly’as demand The ERA provides no material explana- ogy for estimating the LRMC.Noting increases,the AIC serves as a better tion for its mixed approach in the 2005 its earlier conclusion that theTurvey approximation of the underlying inquiries or in the 2009 inquiries that method provided a more appropriate marginal costs than when capex is followed. estimate of LRMC than the AIC,the lumpy.This is because the extent of QCA advocated using the AIC approach ‘spare’capacity is significantly reduced New South Wales on the basis that it would provide more (as illustrated by the red triangles in In New SouthWales,the Independent stable prices that were more transparent Figure 3).TheTurvey approach often Pricing and RegulatoryTribunal and on the grounds of computational largely consists of the interest costs of (IPART) is responsible for determining simplicity (QCA,2005). bringing forward capital projects,and the maximum prices that can be charged Overall,as part of the 2005 investiga- may therefore be less sensitive to the for metropolitan water,wastewater and tion into the pricing practices of GAWB, ‘lumpiness’of capex. stormwater services as well as for services the QCA recommended that LRMC be related to bulk water services,including estimated using the AIC methodology. International precedent water resource management.IPART first The QCA has retained this approach at Both theTurvey and the AIC approaches used LRMC estimates as part of its 2005 all subsequent pricing investigations. have been implemented internationally. metropolitan price determination.At the Despite the theoretical benefits of the time IPART decided to use the AIC South Australia Turvey approach,regulators have mostly approach on the basis that it provided The Essential Services Commission of chosen to use the AIC approach on the simpler estimates that were less suscepti- South Australia (ESCOSA) is the eco- basis of computational simplicity.Some ble to small changes in assumptions nomic regulator in South Australia for of the most developed and interesting (IPART,2005).IPART has continued the monopoly supplies of urban water examples are in Australia,where there to use the AIC approach to calculate and sewerage services.ESCOSA has, is a rise in the need for desalination and LRMC for the SydneyWater determina- perhaps,used the least sophisticated periodic water shortages,but we also tions in 2005 and 2008,the recent 2009 calculation of LRMC in setting prices of refer to the largely abandoned work- determinations for the Central Coast the Australian regulators we reviewed.In stream implementing LRMC in England councils as well as the 2009 determina- its 2009-2010 pricing decision,ESCOSA andWales.We summarise these case tion for HunterWater Corporation stated that it set charges consistent with studies inTable 1. (IPART,2009). SAWater’s own estimate of LRMC,based on an AIC approach (South Australian Western Australia Queensland Government,2009).SAWater estimated InWestern Australia,the Economic In Queensland,the Queensland the AIC of a single future project – the Regulatory Authority (ERA) conducts Competition Authority (QCA) has potential expansion of the planned periodic inquiries to recommend tariffs wavered between theTurvey and AIC Adelaide desalination plant from 50GL to the state Minister forWater,who approaches.In December 2000,the QCA to 100GL.SAWater has used the same approves tariffs for the water companies published its pricing principles for the methodology at subsequent reviews. (ERA,2009).The ERA has applied a water sector,concluding that volumetric ESCOSA has complained about the lack mixed and somewhat inconsistent charges should be set equal to AIC of transparency in SAWater’s calculation, approach.As part of the ERA’s 2005 (QCA,2000).As part of its final report but has not gone so far as to propose price inquiry into the tariffs of theWater on the pricing practices of the Gladstone moving to theTurvey approach Corporation,the company used aTurvey AreaWater Board (GAWB) in September (ESCOSA,2010). approach to estimate the LRMC of 2002,the QCA changed its mind in supplying water and an AIC approach for favour of theTurvey approach on the Melbourne, Victoria estimating the LRMC of wastewater grounds that it more closely reflects The Essential Services Commission of services as part of its regulatory submis- incremental costs (QCA,2000).During Victoria (ESC) is responsible for the sions (Allen Consulting Group,2005).In its investigation into the pricing practices economic regulation of the water sector a contemporaneous inquiry,the ERA of the Gladstone AreaWater Board in in Melbourne.As part of its review of selected an AIC approach to estimate the March 2005,the QCA changed stance water and wastewater prices to be LRMC for Aqwest and BusseltonWater. again on the most appropriate methodol- charged from 1 July 2005,ESC empha-

14 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 TARIFFS

Table 1: Regulators have mostly used AIC rather than Turvey in practice. Source: NERA Research

Jurisdiction Marginal Cost Principles Commentart on Marginal Cost Concepts LRMC Estimate ERA, Western Australia Turvey (water), AIC (wastewater, 2009) No material explanation for mixed approach AU$1.90 ($2011/12) (Perth)

IPART, New South Wales AIC IPART argues AIC approach provides simpler AU$2.18/kL (Sydney) estimates that are less susceptible to small ($2011/12) changes in assumptions

Queensland Competition Turvey and AIC QCA swithced from advocating Turvey to AIC in NA* Authority (Gladstone Area) 2005 on the basis that it would provide more stable prices that were transparent and computationaly simple

ESCOSA, South Australia AIC of expansion of Adelaide ESCOSA adopted SA Water’s favoured approach AU$2.32/kL Desalination Plant (50Gl to 100Gl) ($2009-11)

Essential Services Commission, Unlikely to consider AIC approach adequate NA* Victoria (Melbourne) signal of marginal costs

OFWAT, England and Wales AIC and LRMC reviewed, neither used Ofwat pointed to wide variety of £0.09-1.32/m3 (Nov 2003) LRMC’s identified water only companies with steady demand *Theoretical approach discussed, but no values published. sised the importance of setting variable in LRMCs calculated by different com- approximates the marginal costs because prices according to estimates of the panies and issued detailed guidance on the cost estimate represents the change in LRMC of supply,but noted that the how the approach should be implement- costs as a result of a specified change in businesses were not doing so at that stage ed in 2002.Nonetheless,the LRMC demand.The AIC approach,on the other (ESC,2005).ESC consulted with water estimates were not used to set the tariffs hand,uses the average costs of future businesses on the methodological issues for end users,which in part may reflect increases in demand as an approximation associated with estimating LRMC and the lack of metering for many household for the costs of providing an additional released an Information Paper in customers.Although never implemented unit of the service.Turvey’s conceptual September 2005,the purpose of which in practice as the basis for widespread superiority comes at a price:the process was to serve as a manual to which busi- pricing reforms,the England andWales of calculating theTurvey approach is nesses could refer to when demonstrating case illustrates the sensitivities of the more resource and data intensive than the that they had estimated the LRMC of LRMC AIC approach.There can also be addi- their various services and had had regard tional subjectivity associated with the to those estimates in setting their variable Conclusion Turvey approach due to the need to pick prices (ESC,2005).The Information While achieving efficiency in the pro- an increment to demand and forecast Paper was couched in relatively high level curement,treatment,transport and additional optimal expansion plans with terms,but stated that the ESC‘would be consumption of water is almost universal- and without that increment. unlikely to consider LRMC estimates ly considered to be a desirable outcome, In practice,where regulators have based on the AIC approach to be ade- regulators and water utilities do not attempted to introduce LRMC signals in quate for the purpose of proposing prices always price water services in line with prices,they have tended to use AIC to in the next review’(ESC,2005,p15). this objective,i.e.,by reference to estimate LRMC in the water sector for However,no common approach to LRMC.Moreover,regulators and utilities reasons of computational simplicity.It estimating LRMC was adopted between have adopted inconsistent approaches for may be that,as experience with using water businesses subsequently. estimating the underlying LRMC. LRMC to define tariffs grows,more Of the two commonly employed regulators will follow the ESC inVictoria England and Wales approaches to estimate LRMC for setting and seek to move away from AIC to more In England andWales,the regulator, prices,theTurvey approach most closely marginal concepts,such as theTurvey Ofwat,has considered using both approaches.Ofwat launched a review in 1997 investigating methods for using LRMC in water tariffs.Following the review,it required the water companies in England andWales to submit LRMC estimates,including annual updates from 2001.The water companies were able to use either theTurvey or AIC approaches to calculate their LRMC estimates and most,but not all,opted for the AIC approach.Ofwat responded to the initial estimates the companies provided with George Anstey Tom Graham scepticism,partly due to the wide range

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 15 TARIFFS

approach. Values, Costs and Cost Allocation ofWestern Australian In any case, where the marginal tech - UrbanWater andWastewater Service Providers, Report to nology is increasingly expensive and / or the Economic Regulation Authority, April 2005. About the authors: George Anstey is a Senior Consultant and IPART (2005), SydneyWater Corporation, Hunter where existing assets are largely depreciat - professional economist at NERA Economic ed, AIC will tend to be higher than Water Corporation, Sydney Catchment Authority: Prices Consulting, London. He specialises in econom - average historic cost and closer to the ofWater Supply,Wastewater and Stormwater Services, ic analysis and competition economics in the marginal cost of providing water services. Final Report, September 2005. utility sector. It follows that either the AIC or the IPART (2009), Review of Prices forWater, Sewerage, Turvey approach is likely to provide Stormwater and Other Services for HunterWater Tom Graham is an Economist at HoustonKemp Economists in Sydney and specialises in the better signals for efficient consumption Corporation, Determinations and Final Report , July economic regulation of essential infrastructure, than relying on average historic cost. 2009. including the water and wastewater industries. Irrespective of the calculation method QCA (2000), Statement of Regulatory Pricing chosen in future regulatory decisions, Principles for theWater Sector, December 2000. rising water scarcity will continue to put QCA (2005), Gladstone AreaWater Board: pressure on tariff policy and encourage Investigation of Pricing Practices, Final Report, March the use of more marginal cost concepts in 2005. prices. Industry observers should expect South Australian Government (2009),Water and Implications for FutureWater Prices, September 2005, to see increasing use of marginal cost Wastewater Prices in Metropolitan and Regional South Information Paper. concepts and increasingly marginal cost Australia 2009-10,Transparency Statement – Part A, Rogers, P, de Silva, R, and Bhatia, R (2002),‘Water is concepts employed in setting end-user February 2009. an economic good: How to use prices to promote equity, prices. G South Australian Government (2010), 2010-11 efficiency, and sustainability’,Water Policy,Vol 4, page 6, PotableWater and Sewerage Prices,Transparency pp1-17. References Statement – Part A, May 2010. Turvey, R (2000),What are Marginal Costs and How ERA (2009), Inquiry intoTariffs of theWater ESCOSA (2010), Inquiry into the 2010-11 to Estimate them?Working Paper, Bath School of Corporation, Aqwest and BusseltonWater, Final Report, Metropolitan and Regional PotableWater and Sewerage Management. 14 August 2009. Pricing Process, Final Report, October 2010. Turvey, R (1969),‘Marginal cost’,The Economic The Allen Consulting Group (2005), Review of Asset ESC (2005), Estimating Long Run Marginal Cost – Journal,Vol.79, June 1969, pp.282-99

DATA MANAGEMENT A new data paradigm for water management

Using software to integrate data sources and create a holistic ‘system of systems’ management approach is an innovative new approach with advantages for the water industry. IBM’s NITIN KAPOOR and GAUTAM MENON report.

he water industry is undergoing concept for the holistic application of across the world. Ta dramatic shift. Tremendous information technology (IT) to potable We believe that four themes will typify challenges are forcing the industry water distribution system management, the water organisation of the future: to adapt and reshape itself. based on the greatest possible use and continuous monitoring of operations, a Population growth, urbanisation, integration of data and optimisation single point of truth, listening to assets, ageing infrastructure and techniques. and using insights from all of these to constrained budgets are forcing We believe this to be a new paradigm drive the optimisation of operations and utilities to rethink the way they for water management – we label it the decisions.The unifying thread behind operate. On a larger scale, increasing ‘information engineering’ paradigm, these themes is data – data that usually water stress, pollution and sustain - and intend it to be contrasted with the already exists in some system somewhere ability have become critical traditional‘water operations’ paradigm. within the organisation.The data usually imperatives for regional and The approach we are taking here is (but not always) comes from instrumen - national governments – driving more a comparative study between tation of some kind, but it could also renewed interest in integrated water the existing paradigm (of IT within come from people. Data by itself is of resource management (IWRM). water distribution systems) and what little use until it is used in some fashion This article will set out some key we are proposing for the future – to drive business insights. themes that will be critical to the trans - ‘information engineering’.This article This is where IBM comes in. Our formation of utilities and agencies that will lay out the current components strength is that of‘information engineers’ deal with water management, from the of a water utility and how the new – we are not water engineers, nor do local to the national level. It sets out a paradigm will impact such utilities we want (or claim) to be.With the help

16 • WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 DATA MANAGEMENT

11. Operational External events - weather, scheduling & wildfires, energy outages, integration center sports meetings... Water supply }

Flow, pressure, Asset usage and performance 1. System quality data 2. SCADA 10. Asset instrumentation Asset status and availability managemet

Infrastructure meters and gauges Water supplied Quality sensors Supplied vs consumed 6. Continuous water balance

Recommended operational settings

Quality data Water F a

consumed u l t s Operational 5. Consumer Data on meter drift Recommended decisions, meter data operational ‘as is’ data Consumption anomalies adjustments

4. ‘Live’ Operating baseline 7. Leak, theft hydraulic model detection

Operating baseline Leaks 3. Water quality Lab tests management

Recommended operational adjustments 9. Energy cost 8. Pressure management management Energy prices Figure 1: New paradigm for water management

of partners, we are able to marry our A new paradigm for water management we have and build more – which involves industry-leading technology with Ageing water infrastructures and non- capital expenditure projects that must be expertise in water to deliver integrated revenue water (NRW) cost public and carefully considered against utility and solutions that can make a real dent in private water utilities billions of dollars city budget constraints. the challenges that water participants every year. Other challenges – like tradi - But these costs can be mitigated face today. tional processes that lack real-time through a flexible, standards-based The notion of using software to responsiveness – make it challenging to platform that monitors the entire water integrate data sources and create a holistic adequately detect leaks, act proactively or infrastructure in near real time, which is ‘system of systems’ management approach manage water pressure. So when leaks or exactly what the IBM IntelligentWater is not yet well understood or considered. pipe bursts occur, a water utility is forced software delivers. It unites and correlates It is an innovative view held by a few to spend its limited budget on emergency data collected from multiple sources for forward thinkers in the industry, requir - repairs and associated costs. an integrated view that enables rapid, ing a paradigm shift from relying solely The water and wastewater industry coordinated action; providing insight on traditional engineering problem is built on a physical infrastructure of and control over every facet of water solving to using data to help address pipes, pumps, storage tanks / basins and management. operational challenges. treatment plants.These are long-lasting Our concept addresses the needs of The benefits of this new‘smarter’ investments. Change is slow.The basic the water transmission and distribution paradigm are compelling – moving from commodity, water, is under-valued and systems through to end customer con - a reactive operational stance to a proac - priced, so there is little incentive to nections, and it would embrace pressure tive one, reducing costs and improving invest. Regulatory restrictions and risk management, energy optimisation, NRW quality of service while minimising the aversion also contribute to slow change. management, certain aspects of water need for large capital investment. Because of the complex, expensive quality management and integration with Note that we have not included water physical infrastructure, change is some - asset management.These areas are chosen or wastewater treatment at this stage, thing considered primarily when legisla - because they are interrelated and because although analogous principles could also tion changes and action is required for from an information engineering point be applied to those domains.We have also environmental compliance and ultimate - of view it is evident that effective man - excluded billing, customer relationship ly, to avoid penalties and fines. In addi - agement often requires optimisation management (CRM) and other‘back tion, the traditional approach is likely to of some or all of the many variables office’ systems. be civil engineering-oriented – fix what involved relative to each other.

WATER UTILITY MANAGEMENT INTERNATIONAL • SEPTEMBER 2014 • 17 DATA MANAGEMENT

Existing / Future Data Sources

Maintenance Water system Wastewater system Geographic Information Finance & More...meters, LIMS, CRM, Management System SCADA SCADA System billing system weather, social media...

Data aggregation, validation, integration, analytics

Integrated Operations Platform

Key Performance Management / regulatory Strategic planning, Work reporting Capital budget Indicators (KPI) reporting policy making

Planning, Operations and Reporting

Figure 2: Getting started with ‘smarter’ water: the concept of an integrated operations platform

A new paradigm for water system described below. Let us look at the all those contributing to the performance management can be achieved by captur - aspects of the new paradigm of the system (sometimes referred to as ing detailed data about the system, apply - ‘one version of the truth’). For example, if ing that data via several continuous Continuous versus Periodic model one were to ask the question, how much processes of optimisation and analysis, Most hydraulic models today are run water was delivered to users last month?, and enabling the maximum degree of intermittently, often to explore scenarios often there could be one number from integration between those components. for planning purposes. In contrast, run - the billing system, a different number This is important because it will enable ning the hydraulic model continuously from metering systems and a third num - the management of operations at a much would provide the‘ought to be’ picture ber from the SCADA control systems. finer spatial and temporal resolution than that then offers an analytic counterpoint The visualisation in the operational the current norm, which in turn allows to the‘as is’ data from the SCADA scheduling and integration centre would greater extraction of efficiencies from system. Anomalies between the two be structured at the highest level around a the system, continuous scanning for data sets become powerful information set of key performance indicators (KPIs), anomalies such as leaks, and detailed for pressure optimisation and NRW with data represented geographically or accumulation of asset performance management. in system schematic (or tabular) form as histories, which enables better mainte - To set up a hydraulic model in this required. nance practices. In turn these all enable way requires careful initial calibration, As Figure 1 shows, these would be reduced costs, and a switch from reactive which can be time-consuming – but the supplemented by data on critical external management to a more predictive – and calibration process itself offers an excel - factors such as the weather, public events, thus proactive – management model. lent way to execute a‘health check’ on fire-fighting needs and so on. Alerts Maximum integration will also the water system, as it uncovers previous - would be provided to enable the user to enable a much better basis for longer-run ly unknown issues such as jammed or ‘drill’ into problems that the tool reports. adaptation to deal with such factors as leaking valves, under-recording instru - These would trigger workflows to ensure replacement of ageing physical infrastruc - mentation, under-filling tanks and so a closed loop in following them up.While ture, rising energy costs, rising scarcity on. Once the model is calibrated, in there would be a single summary screen, (and cost) of water supply, changing continuous operation it will then be easy lower level screens would then cater to regulatory requirements, climate change to keep calibrated, as system malfunctions the needs of different functions (opera - impacts and population changes. It will will become immediately apparent, tions, maintenance, planning, and so on). also provide a greater level of system which is itself a benefit. Hydraulic resilience in the face of extreme events modelling products that are designed to Your assets are talking – listen to them such as storms or floods, high tempera - operate continuously are now becoming All of the foregoing will provide valuable tures or earthquakes, or in the face of available (including a version of the data that allows maintenance issues to be major malfunctions. well-known open-sourced EPAnet), identified and, over time predicted and The new paradigm will entail the and are sometimes embedded in pump responded to before they become major logical components shown schematically optimisation tools. problems. At one level this will be a in Figure 1. As stated, the individual matter of, say, identifying small leaks components in Figure 1 may be used A single version of the truth before they become major blow-outs; in some form in leading water agencies The key to the information engineering at another, it is now possible to analyse today, but few water agencies have all paradigm is the integration of the differ - meter data and detect under-recording of them, and fewer still have them fully ent components, both with other indi - consumer meters before the problem integrated with each other.This integra - vidual components and collectively. All of becomes apparent from just reading tion is the key to the new paradigm.The the foregoing should come together in consumption or billing data. major components from Figure 1 are one summary computer tool, shared by Moving beyond that, while some

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water agencies already practise a form Using insights to optimise tively managing issues with a first-of-a- of leak risk assessment, we believe that Insights from continuous monitoring, kind, analytics-driven management the input of accumulated pressure histo - asset information and a holistic, integrat - solution.There has been a greater than ries could greatly improve that process, ed view of operations can be used to 16% reduction in leaks and bursts in first as an aid to maintenance planning and optimise the business as never before. year of deployment, compared to the capital budgeting. Similarly, as in other Simple correlations of failures with assets previous year (19% compared to the industries that use predictive mainte - and, say, temperature information, can previous three-year average).The number nance, it may be possible to predict help identify which assets are most prone of pressure spikes was also minimised by pump and other equipment failures and to break and at what times of the year. moving from a reactive to a proactive gear maintenance scheduling to these Predictive analytics can help identify management approach. predictions, with major savings in asset which part of the infrastructure is most at A water department in Asia serving lifecycle costs risk of failure.The continuous hydraulic seven million people is using predictive Another critical asset for water systems comparison identifies opportunities to models to identify and proactively replace is meters. Advanced Meter Infrastructure reduce pressure while maintaining an the pipes at highest risk of failing.There (AMI) data is reported, usually via a acceptable pressure at consumer premises has been a greater than 300% increase in wireless network, every 15 minutes, and for fire hydrants. forecasting precision compared with the hourly or half-daily. In addition to its Integration with external sources such previous approach, and a 24% reduction billing and demand management func - as river levels, tides weather events and in failures, achieved by replacing the tion, and customer education, this data more can drive better preparedness and riskiest 2% of pipes. offers significant additional value in water planning during large-scale disruptions system management.The data will usually such as floods, surges and storms. Where to start be captured from the meter data manage - Integrating, analysing and understanding The best way to get started is to take ment (MDM) system. data and relationships across a disparate stock of the numerous and often disparate While AMI systems are gaining set of sources such as land use, water or fragmented data sources that exist momentum in the water sector, the value levels, water allocation and demand, within the organisation. Understanding of migrating from analogue to digital forestation, pollution and more can what data is available, in what form and meters is often assumed to arise only guide IWRM policies and decisions. where is fundamental – once this is done, from reducing the cost of meter data Contextual knowledge about the net - it becomes easy to validate (or‘clean’) the collection.We have encountered utilities work that resides in people’s minds or in data and integrate it.This exercise also that struggle to find business justification scattered documents can be captured and helps discover gaps in information and for investment in more advanced meters, embedded into structured processes and in business processes. especially (but not only) in low labour- operating procedures, thus avoiding a Data integration may sound simple cost economies. Unfortunately, this has ‘brain drain’ when older workers retire but in reality it takes industrial strength led many agencies to opt to replace their or leave the workforce. enterprise software and a solid under - analogue meters not with AMI but with Data to optimise operations need not standing of data to pull it off well. It is Automated Meter Reading (AMR) be limited to internal systems – there is a important that data is not integrated for technologies that report wirelessly, wealth of external data, that, when used its own sake – the data should drive real but only via a monthly drive-by. in the right way, could further drive value based on the business requirements This is certainly cheaper than manual business value. One obvious external data and industry challenges that the organisa - reads, but loses the real value that the source is weather information. From tion is facing.We have found that the greater frequency of AMR can bring: flooding and coastal surges to sewer flows contextual understanding of data is also first, detailed insight into water consump - and watershed pollution, weather has a very important – that is, the relationship tion patterns over time, enabling the large impact on water management.The between different data elements is just as provision of information to consumers better the weather prediction, the more important as the data itself. For example, to help them conserve water more effec - efficient the planning and the disruption being able to easily visualise which pipes tively; and second, enhanced network to operations and infrastructure can be are associated with which customer operations, support for leak detection, mitigated. IBM’s DeepThunder capabili - accounts is invaluable in figuring out customer management, network and ty delivers a high resolution (down to a what impact there could be from a pipe capacity expansion planning, and so on. square mile), highly accurate weather burst or maintenance work. In some parts of the world, instrumen - prediction capability that helps utilities, Complementing this internal data tation is poor or absent, leading to a private entities and government agencies could be external information from social dearth of data on which to base decisions. make more informed decisions and media, weather, citizen-driven data, inter- One way to avoid this is to get creative – minimise weather-related risks and costs. agency data sharing and much more. many parts of the world that have poor No water agency known to us These external data are an often over - instrumentation have a high penetration has implemented in its entirety the looked part of driving business value. of mobile devices. Innovative solutions information engineering paradigm just Once the data is integrated and the can use this to turn citizens into a form described, so the precise level of return solution is able to show patterns, its of sensors – have them take pictures of on investment is difficult to predict at this important to have a flexible and scalable water bodies and infrastructure and time. However, there are success stories platform that allows the user to take report problems to the water agency. that we can share around this paradigm. actions on the insights coming from the IBM recently used this idea, to great For example, a US water management continuous modelling and from assets. effect, in South Africa. utility is reducing its leakage and proac - These actions could include collabora -

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tion, executing alerts and operating rarely achieved in the industry today – but procedures, viewing correlations, trends that will be increasingly required world - and patterns and much more. wide as water supplies becomes stretched About the authors: Nitin Kapoor is Product Manager, Smarter Such an‘integrated operations console’ to meet demand, as countries contem - Cities at IBM Software Group, Bethesda, (see Figure 2) is the first step in making plate the backlog in capital expenditure Maryland, US. Email: [email protected] sense of the data deluge that is already a on their water systems, and as both water reality in many water utilities. Once the and energy prices increase. Gautam Menon is Market Segment Manager, platform is in place, a variety of advanced Not all of the components of the Smarter Cities – Intelligent Water Product applications may be put on it to drive information engineering paradigm are in Marketing & Cloud, at IBM Software Group. further business value. widespread use today. Many will be more Email: [email protected] The platform serves as the foundation expensive to implement and integrate for delivering the‘single view of the than many water agencies can currently road-map for the water sector to apply truth’ that we described earlier in this afford, especially if (as is often the case, in over time, helped, one hopes, by the fact article. It is also the bridge between developing and developed countries alike) that the cost of the systems in question applications such as SCADA, hydraulic they have inadequate levels of basic will decline as they become more wide - models, metering systems, asset manage - instrumentation on their water systems spread. G ment and the line of business. It enables to begin with. business users to quickly understand, Water agencies will be confronted with Notes analyse and ask questions about the the dilemma of where to prioritise their The authors would particularly like to operations in an intuitive and efficient scarce investible surpluses – expanding thank PeterWilliams (CTO, IBM Big way. infrastructure, expanding instrumentation Green Innovations) and fellow IBM and measurement, or integrating the employees Eitan Israeli, Ian Abbott- Conclusion systems they have.The road ahead will Donnelly, Srinivas Kowligi, Pnina The above article identifies the compo - not be easy – climate change, increasing Vortman, Geoff Riggs, SusaraVan Den nents of the‘information engineering’ urbanisation and increasing demands from Heever, Eoin Lane and Carey Hidaka paradigm for water management, and the citizens will put growing pressure on both for their contributions to this article. level of integration required.We believe utilities and governments to deliver safe that the shift to this paradigm will allow and reliable water while sustaining the water transmission and distribution environment. This paper was presented at the 2014 Singapore systems to be operated at levels of energy, The information engineering paradigm International Water Week Convention, held in water and financial efficiency that are presented here is intended to represent a Singapore, 1-5 June 2014.

PROJECTS, PRODUCTS AND SERVICES HWM launches controller for PRVs AQUARIUS Forecast software launched he water and asset monitoring Tspecialist HWM has launched a quatic Informatics Inc has new electronic controller for pres - Aannounced the expansion of its sure reducing valves (PRVs). AQUARIUS solution suite with the The Pegasus+ enables detailed multi- launch of AQUARIUS Forecast, a point PRV control without a flowmeter, software solution for advanced either by flow or by time, together with environmental modelling. sophisticated closed loop control. It also It is intended as a support tool for water permits immediate control of pressure resource managers seeking to improve within a distribution network and auto - water accounting, optimize water supply matically adapts to network changes and secondary channel, in addition to its main allocation and to better predict and events by analysing data from up to three logging channel, for fast logging down to manage floods.The system is based on critical points (CPs). one-second intervals.This allows a more time series data, which it converts to the By controlling PRV output pressure, detailed investigation of events such as required time-step of environmental the new controller maintains CP targets pressure spikes while helping to establish models. defined in terms of time, flow or a combi - minimum night flow.The controller also Trend data is displayed in charts and nation of the two. Networks can be offers the ability to control a network grids and the system also has a Model optimised to reflect changing demand from any web-enabled device via the Library of transparent elements, which throughout the day or week. A latching HWM Online web viewer whereby enable the construction of complex solenoid output enables vales to be fully users can check and alter system and models by using them to form new opened or closed in extreme or emer - component configurations and settings. custom elements, which can then be gency situations, according to controller Controller set-up and programming saved. Errors are identified in a clickable settings. Bidirectional GPRS telemetry can be conducted via a tablet or list, which makes them easy to find and can be used to trigger alarms or remotely PC-based app. G fix, says the company. G control the valve. Pegasus+ features a www.hwm-water.com http://aquaticinformatics.com

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