COMPLIANCE AND PERFORMANCE REPORT 2013-14 SEPTEMBER 2014

HUNTER WATER

Version 1.0 – August 2014 Address: 36 Honeysuckle Drive, Newcastle NSW 2300 Telephone: 1300 657 657 Fax: 02 4949 9414 TTY: 13 1450 Website: www.hunterwater.com.au © Hunter Water Corporation August 2014 ISSN: 1836-3253 ABN: 46228513446 Disclaimer Hunter Water makes every effort to ensure the accuracy of the information provided. However, Hunter Water accepts no responsibility for incorrect information and encourages the public to contact us directly for verification.

TABLE OF CONTENTS

Executive Summary ...... 7 1 Introduction ...... 9 2 Water Quality ...... 11 2.1 Introduction ...... 11 2.2 Drinking Water ...... 11 2.2.1 Overview of Drinking Water Supply Systems ...... 11 2.2.2 Water Supply Systems and Performance at Critical Control Points ...... 12 2.2.3 Verification Monitoring ...... 24 2.2.4 Drinking Water Quality Management Activities and Programs 2013-14 ...... 26 2.2.5 Proposed Drinking Water Quality Management Activities and Programs 2014-15 ...... 27 2.2.6 Proposed Significant Changes to the Drinking Water Quality Management System ...... 28 2.2.7 Water Quality Issues and Actions Taken to Resolve Them ...... 28 2.3 Recycled Water ...... 30 2.3.1 Overview of Recycled Water Systems ...... 30 2.3.2 Recycled Water Schemes and Performance of Critical Control Points ...... 32 2.3.3 Recycled Water Quality Management Activities and Programs 2013-14 ...... 33 2.3.4 Proposed Recycled Water Quality Management Activities and Programs 2014-15 ...... 34 2.3.5 Proposed Significant Changes to the Recycled Water Quality Management System ..... 34 2.3.6 Recycled Water Issues and Actions Taken...... 34 3 Water Quantity ...... 36 3.1 Introduction ...... 36 3.2 Water Conservation Target ...... 36 3.3 Residential Water Conservation Projects 2013-14 ...... 37 3.3.1 Water Efficiency Education ...... 38 3.3.2 Household Appliance Replacement Incentives ...... 40 3.4 Proposed Water Conservation Projects 2014-15 ...... 41 3.4.1 Community Education and Awareness Programs ...... 41 3.4.2 Household Appliance Replacement Incentives ...... 41 3.5 Water Sources in the Lower Hunter ...... 42 3.5.1 Chichester Dam ...... 43 3.5.2 Grahamstown Dam ...... 43 3.5.3 Tomago Sandbeds ...... 43 3.5.4 Small Water Sources ...... 43 3.6 Reliable Quantity of Water Available from Existing Storages (yield) ...... 44 3.6.1 Service Levels for Drought Security (Definition of ‘Yield’)...... 44 3.6.2 Lower Hunter Yield ...... 44 3.7 Factors Affecting Yield ...... 45 3.7.1 Water Storage Performance in Drought ...... 45 3.7.2 Climatic Data, Trends and Projections...... 45 3.7.3 Supply to and/or From Areas Outside the Area of Operations ...... 46 3.7.4 Constraints on Extraction of Water Due to Water Management Legislation ...... 46 4 Assets ...... 47 4.1 Introduction ...... 47 4.2 Overview of Hunter Water’s Asset Management System ...... 47 4.3 Asset Management Activities and Programs 2013-14 ...... 49 4.3.1 Initiative 1 – Alignment of Capability with Objectives ...... 49 4.3.2 Initiative 2 – Rigorous Challenging of Business Cases ...... 50 4.3.3 Initiative 3 – Consistent Approach to Maintenance Management ...... 51 4.3.4 Initiative 4 - Consistent Approach to Management and Operation of Critical Assets ...... 51 4.3.5 Initiative 5 - Operations and Maintenance Procedures Review and Updating ...... 52 4.4 Asset Management System Issues and Actions Taken ...... 52 4.5 Proposed Asset Management Activities and Programs 2014-15 ...... 53

Compliance and Performance Report 2013-14 | 1 4.6 Proposed Significant Changes to the Asset Management System ...... 53 5 Customers and Consumers ...... 54 5.1 Introduction ...... 54 5.2 The Role of the Consultative Forum ...... 54 5.3 Consultative Forum Activities and Achievements 2013-14 ...... 55 5.3.1 Key Matters Raised in 2013-14 ...... 55 5.3.2 Achievements in 2013-14 ...... 56 5.4 Customer Complaints ...... 57 5.4.1 Performance ...... 57 5.4.2 Systematic Problems Arising from Complaints and Actions ...... 66 5.5 Proposed Significant Changes ...... 66 5.5.1 The Customer Contract ...... 66 5.5.2 The Procedure for Payment Difficulties and Actions for Non-Payment ...... 66 5.5.3 The Community Consultative Forum Charter ...... 66 5.5.4 The Internal Complaints Handling Procedure ...... 66 5.5.5 The External Dispute Resolution Scheme ...... 66 6 Environment ...... 67 6.1 Introduction ...... 67 6.2 Hunter Water Corporation’s Environmental Management System ...... 67 6.3 Environmental Management Plan - 2013-2017 ...... 67 6.4 Goal 1: Protection of Drinking Water Catchments ...... 68 6.4.1 Actions to Manage Risks ...... 68 6.4.2 Performance Against Targets ...... 69 6.4.3 Activities Planned for 2014-15 ...... 73 6.5 Goal 2: Reliable Supply of Drinking Water with Minimal Environmental Impacts ...... 74 6.5.1 Actions to Manage Risks ...... 74 6.5.2 Activities Planned for 2014-15 ...... 80 6.6 Goal 3: Conserve water supplies by ensuring efficient water use ...... 81 6.6.1 Actions to Manage Risks ...... 81 6.6.2 Performance Against Targets ...... 82 6.6.3 Activities Planned for 2014-15 ...... 82 6.7 Goal 4: Implement Water Recycling Initiatives ...... 83 6.7.1 Actions to Manage Risks ...... 83 6.7.2 Performance Against Targets ...... 84 6.7.3 Activities Planned for 2014-15 ...... 86 6.8 Goal 5: Manage Hunter Water’s Stormwater and Wastewater Infrastructure to Ensure Healthy Waterways, Clean Beaches and Clean Air ...... 87 6.8.1 Actions to Manage Risks ...... 87 6.8.2 Performance Against Targets ...... 91 6.8.3 Activities Planned for 2014-15 ...... 95 6.9 Goal 6: Minimise the environmental impacts of HWC’s infrastructure projects ...... 96 6.9.1 Actions to Manage Risks ...... 96 6.9.2 Performance Against Targets ...... 96 6.9.3 Activities Planned for 2014-15 ...... 99 6.10 Goal 7: Promote efficient use of resources and minimisation of waste ...... 100 6.10.1 Actions to Manage Risks ...... 100 6.10.2 Performance Against Targets ...... 102 6.10.3 Activities Planned for 2014-15 ...... 105 6.11 Goal 8: Responsibly manage our land and property assets...... 106 6.11.1 Actions to Manage Risks ...... 106 6.11.2 Performance Against Targets ...... 107 6.11.3 Activities Planned for 2014-15 ...... 107 6.12 Goal 9: Organisational environmental resilience and emergency preparedness ...... 110

Compliance and Performance Report 2013-14 | 2 6.12.1 Actions to Manage Risks ...... 110 6.12.2 Performance Against Targets ...... 110 6.12.3 Activities Planned for 2014-15 ...... 114 6.13 Goal 10: Contribute to sustainability and environmental awareness within the community ...... 114 6.13.1 Actions to Manage Risks ...... 114 6.13.2 Performance Against Targets ...... 116 6.13.3 Activities Planned for 2014-15 ...... 116 6.14 Goal 11: Continue to improve environmental management practices and promote an environmentally responsible culture ...... 119 6.14.1 Actions to Manage Risks ...... 119 6.14.2 Performance Against Targets ...... 119 6.14.3 Activities Planned for 2014-15 ...... 119 7 Performance Monitoring ...... 121 7.1 Introduction ...... 121 7.1.1 Water Pressure Standard ...... 121 7.1.2 Water Continuity Standard ...... 122 7.1.3 Wastewater Overflow Standard ...... 124 7.2 Performance Indicators 2013-14...... 126 7.2.1 IPART Performance Indicators: Water Quality ...... 126 7.2.2 IPART Performance Indicators: Infrastructure ...... 128 7.2.3 IPART Performance Indicators: Environment ...... 137 7.2.4 IPART Performance Indicators: Customers ...... 148 8 Glossary ...... 169 8.1 Acronyms ...... 169 8.2 Water Treatment Processes ...... 170 8.3 Key Physical, Chemical and Microbiological Drinking Water Quality Parameters...... 171 8.4 Wastewater Environmental Protection Licence Parameters ...... 172

Compliance and Performance Report 2013-14 | 3 LIST OF TABLES

Table 2.1 Chichester Water Supply System - Critical Control Points Performance 2013-14 ...... 16 Table 2.2 Grahamstown Water Supply System: Critical Control Points Performance 2013-14 ...... 18 Table 2.3 Lemon Tree Passage Water Supply System: Critical Control Points Performance 2013-14 . 20 Table 2.4 Anna Bay/ Nelson Bay Water Supply System: Critical Control Points Performance 2013-14 22 Table 2.5 Gresford Water Supply System - Critical control points performance 2013-14 ...... 24 Table 2.6 Microbiological Water Quality 2013-14...... 24 Table 2.7 Key Physical / Chemical Parameters 2013-14 ...... 25 Table 2.8 Drinking Water Quality Management Activities and Programs 2013-14 ...... 26 Table 2.9 Proposed Drinking Water Quality Management Activities and Programs ...... 27 Table 2.10 Hunter Water’s Recycled Water Schemes ...... 30 Table 2.11 The Vintage Recycled Water Scheme ...... 32 Table 2.12 Recycled Water Activities and Programs 2013-14...... 33 Table 2.13 Recycled Water Activities and Programs 2014-15...... 34 Table 3.1 Residential Water Use Per Annum ...... 36 Table 3.2 Residential Water Efficiency Projects and Estimated Water Savings ...... 38 Table 3.3 Capacity of Existing Water Sources ...... 42 Table 5.1 Community Consultative Forum Members ...... 54 Table 6.1 EMP Goal 1: Protection of Drinking Water Catchments ...... 70 Table 6.2 EMP Goal 2: Reliable Supply of Drinking Water with Minimal Environmental Impacts ...... 76 Table 6.3 Water Efficiency Programs ...... 81 Table 6.4 EMP Goal 3: Conserve Water Supplies by Ensuring Efficient Water Use ...... 82 Table 6.5 EMP Goal 4: Implement Water Recycling Initiatives ...... 85 Table 6.6 Biosolids Reuse ...... 89 Table 6.7 EMP Goal 5: Healthy Waterways, Clean Beaches and Clean Air ...... 92 Table 6.8 EMP Goal 6: Minimise the Environmental Impacts of Infrastructure Projects ...... 97 Table 6.9 EMP Goal 7: Promote Efficient Use of Resources and Minimisation of Waste ...... 103 Table 6.10 EMP Goal 8: Responsibly Manage Our Land and Property Assets ...... 108 Table 6.11 EMP Goal 9: Environmental Resilience and Emergency Preparedness...... 111 Table 6.12 EMP Goal 10: Community Sustainability and Environmental Awareness ...... 117 Table 6.13 EMP Goal 11: Promote an Environmentally Responsible Culture ...... 120 Table 7.1 I3 Interruptions to at least 250 Properties for Over Five Hours: Overview of Events ...... 130 Table 7.2 IPART Indicators ...... 159 Table 7.3 National Water Initiative Indicators...... 161

Compliance and Performance Report 2013-14 | 4 LIST OF FIGURES

Figure 2.1 Hunter Water's Catchments, Storages and Water Treatment Plants ...... 13 Figure 2.2 Hunter Water’s Water Supply Systems ...... 14 Figure 2.3 Hunter Water’s Recycled Water Schemes ...... 31 Figure 3.1 Ten Year Trend in Residential Water Use ...... 37 Figure 3.2 Major Water Sources ...... 42 Figure 3.3 Simulated Water Storage Levels in the Lower Hunter ...... 45 Figure 4.1 Aquamark Functional Comparison of Hunter Water with Overall Benchmarking Group ...... 48 Figure 5.1 Total Water and Sewerage Complaints by Year ...... 58 Figure 5.2 Water Quality Complaints by Year ...... 59 Figure 5.3 Water Service Complaints by Year ...... 60 Figure 5.4 Sewerage Service Complaints by Year ...... 61 Figure 5.5 Drainage Complaints by Year ...... 62 Figure 5.6 Billing Complaints by Year ...... 63 Figure 5.7 Year Comparison of EWON Cases Closed by Level ...... 64 Figure 6.1 Breakdown of Water Sourced in 2013-14 ...... 78 Figure 6.2 Volumes of Water Sourced from 2003-04 to 2013-14...... 78 Figure 6.3 Extraction from Water Sources and Storages in 2013-14 ...... 79 Figure 6.4 Extraction from Water Sources 2003-02 to 2013-14 ...... 79 Figure 6.5 Recycled Water Consumption by Sector ...... 86 Figure 6.6 Compliant Wastewater Treatment Plants ...... 88 Figure 6.7 Dry Tonnes of Biosolids Beneficially Reused ...... 89 Figure 6.8 Biosolids End Uses ...... 90 Figure 6.9 Energy Consumption by Asset Category 2013-14 ...... 100

Figure 6.10 Historical Net Greenhouse Gas Emissions (Tonnes CO2 - Equivalents) ...... 101 Figure 6.11 Greenhouse Gas Emissions Breakdown ...... 101 Figure 7.1 Water Pressure Standard ...... 121 Figure 7.2 Water Continuity Standard (a) ...... 122 Figure 7.3 Water Continuity Standard (b) ...... 123 Figure 7.4 Wastewater Overflow Standard (a) Performance ...... 124 Figure 7.5 Wastewater Overflow Standard (b) Performance ...... 125 Figure 7.6 WQ1 (H) Performance – Microbiological Compliance...... 126 Figure 7.7 WQ1.2 Performance – Compliance with Chemical/Physical Parameters ...... 127 Figure 7.8 I1 Performance: Properties Affected by an Unplanned Water Interruption ...... 128 Figure 7.9 I2 Performance: Properties Experiencing Multiple Interruptions...... 129 Figure 7.10 I3 Performance: Events interrupting at least 250 Properties for Over Five Hours ...... 130 Figure 7.11 I4 (H) Performance: Residential Properties Affected by Peak Hour Planned Interruptions . 132 Figure 7.12 I5 Performance: Properties Experiencing a Water Pressure Failure ...... 133 Figure 7.13 I6 Performance: High Priority Sewage Overflows per 100km of Sewer Main ...... 134 Figure 7.14 I7 Performance: Medium Priority Sewage Overflows per 100km of Sewer Main ...... 135 Figure 7.15 I8 Performance: Residential Dwellings Affected by Sewer Spills for Over One Hour ...... 136 Figure 7.16 E1 Performance: POEO Act Proceedings and Penalty Notices - Hunter Water ...... 137 Figure 7.17 E2 Performance: POEO Act Proceedings and Penalty Notices - Contractors ...... 138 Figure 7.18 E3 Performance: Total Electricity Consumption by Water Assets ...... 139 Figure 7.19 E4 Performance: Total Electricity Consumption by Sewer Assets ...... 140 Figure 7.20 E5 Performance: Electricity from Renewable Sources or Self-Generated ...... 141 Figure 7.21 E6 Performance: Total Mass of Biosolids Produced ...... 142 Figure 7.22 E7 Performance: Solid Waste Recycled or Reused ...... 143

Compliance and Performance Report 2013-14 | 5 Figure 7.23 E8 Performance: Total Area of Clearing of Native Vegetation ...... 144 Figure 7.24 E9 Performance: Total Area of Native Vegetation Rehabilitated ...... 145 Figure 7.25 E10 Performance: Total Area of Native Vegetation Gain ...... 146 Figure 7.26 E11 Performance: Proceedings or Penalty Notices Issued by NOW...... 147 Figure 7.27 C1 Performance: Complaints Resolved Within 10 Business Days ...... 148 Figure 7.28 C2 Performance: Per cent of Calls Abandoned ...... 149 Figure 7.29 C3 Performance: Metered Accounts with Bills Not Based on a Meter Read...... 150 Figure 7.30 C4 Performance: Residential Customers Disconnected for Non-Payment ...... 151 Figure 7.31 C5 Performance: Non-Residential Customers Disconnected for Non-Payment ...... 152 Figure 7.32 C6 Performance: Water Flow Restricted Residential Customers ...... 153 Figure 7.33 C7 Performance: Water Flow Restricted Non-Residential Customers ...... 154 Figure 7.34 C8 Performance: Residential Customers Assisted Through Hardship Programs ...... 155 Figure 7.35 C9 Performance: Residential Customer Debt Trends ...... 156 Figure 7.36 C10 Performance: Residential Customers Using Payment Plans or Centrepay ...... 157 Figure 7.37 C11 Performance: Residential Customers Exiting Hardship Programs ...... 158

Compliance and Performance Report 2013-14 | 6 EXECUTIVE SUMMARY

Hunter Water Corporation (Hunter Water) is committed to delivering high quality, dependable and affordable water and wastewater services to the community of the Lower Hunter region. Compliance with regulatory obligations is a key focus of Hunter Water’s operations. Hunter Water consistently complies with its Operating Licence obligations.

In 2013-14 Hunter Water achieved 100 per cent compliance with the standards set under the Operating Licence. This includes water continuity, water pressure and wastewater overflows. Hunter Water was also 100 per cent compliant with water quality targets for the year and compliant with the water conservation target.

The main drinking water quality management activities undertaken or underway during 2013-14 were a backflow prevention compliance framework; a distribution system disinfection residual strategy; inclusion of water quality controls in operational procedures and field checklists; implementation of a revised pesticide monitoring program; and implementation of automatic water treatment plant shutdown capability for key water quality parameters to prevent unacceptable quality water from being supplied to the distribution system.

Hunter Water has agreed with NSW Health to have implemented the Australian Guidelines for Water Recycling for all of its schemes by mid-2015. Recycled water quality management activities are on track to meet this commitment.

The Lower Hunter Water Plan (LHWP), developed by the Metropolitan Water Directorate in close consultation with Hunter Water, government agencies, stakeholders and the community, was released in April 2014. The LHWP indicates that the Lower Hunter storages can currently supply an average of 75 billion litres of water each year, which is enough to cater for growth for around the next 20 years.

Water Wise Rules were introduced as a priority action arising from the LHWP, commencing on 1 July 2014.

Hunter Water is continuing to work with the Metropolitan Water Directorate for water quantity planning and to implement drought management investigations, policy initiatives and (if needed) drought response measures in accordance with the LHWP.

An asset management system is maintained to ensure Hunter Water can effectively manage physical assets to support the business in meeting its corporate objectives. A four-yearly benchmarking exercise by Aquamark (2012) identified asset management strengths in corporate policy and business planning, asset capability forward planning, and asset replacement and rehabilitation functions. In 2013-14 Hunter Water continued to implement improvement opportunities recommended through Aquamark benchmarking and committed to transition to an asset management system that is consistent with the Australian Standard AS ISO 55001:2014 Asset Management – Management Systems.

The Community Consultative Forum continued to work with Hunter Water to address customer issues relating to planning and operations. In 2013-14, customer complaint performance improved in the areas of water service, sewer service, drainage, billing and total water and sewer complaints.

Hunter Water has continued to deliver positive outcomes for the environment through implementation of its 2013-17 Environmental Management Plan (EMP), which defines the objectives and targets that Hunter Water use to manage risk and drive environmental improvements. Certification of the Environmental Management System with the Australian Standard AS/NZ ISO 14001:2004 Environmental Management Systems is scheduled for October 2014.

Hunter Water has performed soundly during the second year of its 2012-2017 Operating Licence and continues to be committed to full compliance with all relevant regulatory obligations.

Compliance and Performance Report 2013-14 | 7

Compliance and Performance Report 2013-14 | 8 1 INTRODUCTION

Hunter Water is a state-owned Corporation that provides water and wastewater services to over half a million people in the Lower Hunter region. Hunter Water’s primary purpose is to supply reliable high quality water and wastewater services to its customers.

Hunter Water is governed by the State Owned Corporations Act 1989 and Hunter Water Act 1991. The NSW Government regulates Hunter Water’s operations through a number of regulatory bodies and instruments. The Operating Licence is Hunter Water’s overarching regulatory instrument. It is administered by the Independent Pricing and Regulatory Tribunal (IPART) and issued by the portfolio Minister responsible for State-owned water utilities. At the time of this report, the portfolio Minister is the Minister for Natural Resources, Lands and Water.

A new Operating Licence commenced on 1 July 2012 and will govern operations until 30 June 2017. The Operating Licence stipulates the manner in which Hunter Water will manage water quality, water quantity, assets, customers and consumers, environmental responsibilities, quality management and performance targets and monitoring.

The 2013-14 Compliance and Performance Report provides detailed information on Hunter Water’s performance against prescribed clauses of the Operating Licence.

Water quality performance is reported in chapter two. This chapter details the 2013-14 water quality activities and associated performance and outlines the activities and programs scheduled for 2014-15. Furthermore, the chapter reports on the performance of critical control points and any drinking water quality and recycled water quality management system failures and the actions that were taken to resolve these.

Water quantity performance is reported in chapter three. It reports on compliance with the water conservation target for residential water use in the Lower Hunter region. The chapter details projects undertaken in 2013-14 and those planned for 2014-15. Furthermore the chapter outlines the new estimate of yield as developed under the LHWP and information regarding quantities of water that can be derived from existing water sources.

Asset performance is reported in chapter four. This chapter reports on Hunter Water’s asset management system, which is in accordance with the Aquamark 2012 benchmarking tool. It reports on the asset management programs and activities and associated outcomes as achieved in 2013-14 and those scheduled for 2014-15. Furthermore, the chapter details any system failures and proposed significant changes.

Customer and consumer performance is reported in chapter five. It reports on achievements of the Community Consultative Forum and matters arising from 2013-14 meetings. It also details complaint performance, systematic problems arising from complaints and the actions taken to resolve them. Proposed significant changes are also addressed.

Environment performance is reported in chapter six. It reports on the activities and programs undertaken in 2013-14 to manage risks to the environment. It also details Hunter Water’s performance in meeting targets for 2013-14 and those targets that are scheduled for 2014-15. Proposed significant changes are also addressed.

Performance monitoring is reported in chapter seven. This chapter provides performance data for key system performance standards as required under the Operating Licence. Performance is analysed for 2013- 14 as well as trends over five years. Further, the chapter reports performance against the IPART indicator set and presents this against five years of data to identify trends where possible. The data set for the 2013- 14 National Performance Report is also provided.

Compliance and Performance Report 2013-14 | 9

Compliance and Performance Report 2013-14 | 10 2 WATER QUALITY

2.1 Introduction

Chapter two provides an overview of Hunter Water’s water quality performance. Specifically, it reports on drinking water and recycled water quality management activities and programs completed in 2013-14, including the results and outcomes of those activities and programs. The chapter also reports on the activities and programs that Hunter Water proposes to undertake in 2014-15 to meet water quality objectives. Furthermore, it details the performance of critical control points over the long term in accordance with the Australian Drinking Water Guidelines and the Australian Guidelines for Recycled Water. The proposed significant changes to the drinking water and recycled water quality management systems are also reported. Finally, the chapter reports on any failures to the drinking water or recycled water quality management systems and the actions that have been taken to resolve them.

2.2 Drinking Water

2.2.1 Overview of Drinking Water Supply Systems

Hunter Water supplies high quality drinking water to more than half a million people in the Lower Hunter region of New South Wales. Hunter Water’s drinking water systems are managed in line with the Australian Drinking Water Guidelines 2011 – Updated December 2013 (ADWG 2011) framework for management of drinking water quality (referred to as ‘the Framework’).

Drinking water sources within Hunter Water’s area of operations are:

 Chichester Dam,  Grahamstown Dam,  Tomago Sandbeds,  Tomaree Sandbeds,  The Paterson River, and  The Allyn River. Drinking water sources are further described in section 3.5.

Hunter Water operates six water treatment plants (WTPs) within its area of operations:

 Dungog WTP,  Grahamstown WTP,  Lemon Tree Passage WTP,  Anna Bay WTP,  Nelson Bay WTP, and  Gresford WTP. The location of Hunter Water’s catchments, storages and WTPs are shown in Figure 2.1.

Hunter Water supplies a small volume of treated water to Midcoast Water in Karuah and can also supply and receive bulk treated water from Wyong Council. During 2013-14, Hunter Water supplied 292 ML of water to Wyong Council and received 340 ML from Wyong Shire Council’s water supply system.

Water supply systems are shown in Figure 2.2. Water supplied by Hunter Water is transported and stored within a closed, well-maintained distribution system. All clear water tanks and storage reservoirs within the distribution system are fully covered and regular inspections are undertaken to ensure the integrity of the system is maintained. Security measures are in place to prevent unauthorised access to water storages.

Compliance and Performance Report 2013-14 | 11 Maintenance and construction activities are undertaken in accordance with procedures that are designed to ensure drinking water quality is protected.

Hunter Water has backflow prevention measures in place to prevent backflow of potentially contaminated water from customers’ properties into the water supply system.

2.2.2 Water Supply Systems and Performance at Critical Control Points

One of the key elements of the Framework is the application of preventive measures at all steps in the water supply process from catchment to tap to ensure that consistently safe drinking water is supplied.

Critical control points are an important component of this element.

“A critical control point is defined as an activity, procedure or process at which control can be applied and which is essential to prevent a hazard or reduce it to an acceptable level.” (ADWG 2011 Section 3.3.2 Critical Control Points)

Critical control points have been identified for all of Hunter Water’s water supply systems. Where practical, water quality parameters at critical control points are continuously monitored using a SCADA system.

Critical limits have been defined for critical control points within Hunter Water’s water supply systems.

“Critical limits are performance criteria that separate acceptability from unacceptability in terms of hazard control and water safety.” (ADWG 2011 Section 3.3.2 Critical Control Points)

Operational target levels for critical control points are set at a level that is more stringent than the critical limit. Using SCADA, alarm limits are set so that corrective action can be taken before the critical limit is reached. Currently, for key water quality parameters at some WTPs, the plant automatically shuts down before the critical limit is reached. Hunter Water is implementing automatic shutdown for key water quality parameters at all water treatment plants.

Treatment processes where continuous monitoring and control of critical control points is currently maintained include:

 Coagulation / filtration i.e. operation of coagulation dosing systems, filtered water turbidity etc;  Disinfection i.e. operation of chlorination systems, chlorine concentrations, pH, flow rates, clear water tank level etc; and  Fluoridation i.e. operation of fluoride dosing systems and fluoride concentration. Existing critical control points where it is not practical to have continuous monitoring and control include the following:

 Maintenance of a closed distribution system, i.e. to ensure that the integrity of covered storage reservoirs is maintained;  Adherence to correct maintenance procedures to ensure watermain breaks and other faults are repaired in a way that will prevent contamination;  Correct procedures applied during construction to prevent contamination within the water supply system; and  Appropriate backflow prevention measures implemented to ensure the water supply is protected from potentially contaminated backflow from properties connected to the system. An outline of each of Hunter Water’s water supply zones and performance at critical control points during 2013-14 is set out in the following sections. A brief explanation of each of the water treatment processes referenced in the section is included in the Glossary (see section 8.2).

Compliance and Performance Report 2013-14 | 12 Figure 2.1 Hunter Water's Catchments, Storages and Water Treatment Plants

Compliance and Performance Report 2013-14 | 13 Figure 2.2 Hunter Water’s Water Supply Systems

Compliance and Performance Report 2013-14 | 14 Chichester Water Supply System

The catchment for this source consists mainly of pristine forest within a National Park, with a small area of cleared farmland. Water is chlorinated at the dam and filtered and disinfected at Dungog WTP. A small proportion of water from Dungog WTP is supplied to customers within the Dungog local government area. The majority of water is fed by gravity trunkmain to the Cessnock and Maitland areas (which are within the Chichester water supply zone) and Newcastle (where water from this source blends with water from Grahamstown WTP to form part of the supply to the Grahamstown water supply zone). The estimated population within the Chichester water supply system is 133,000.

Chichester catchment and storage The catchment for Chichester Dam is largely within the pristine Barrington Tops National Park with a small area (8 per cent) of cleared farmland. The catchment covers 197 km2 and receives water from the Chichester and Wangat Rivers.

The capacity of Chichester dam is 18,356 ML. The dam wall is 254m long and 43m high. Water from Chichester Dam is chlorinated at the dam and then transported via a gravity pipe to Dungog WTP.

Chichester Dam

Treatment at Dungog WTP Dungog WTP is a direct filtration plant with a maximum capacity of 85 ML/d.

The treatment plant includes the following processes:

 Coagulation / flocculation,  Filtration,  pH correction,  Disinfection, and

 Fluoridation. Dungog Water Treatment Plant

Chichester distribution system A small proportion of water from Dungog WTP is supplied to the townships of Dungog, Paterson, Vacy, Clarence Town and Seaham.

The majority of water from this plant is fed by gravity trunkmain to the Cessnock, Maitland and Newcastle areas. Water supplied to Maitland and Cessnock is re-chlorinated at the outlet to Buttai Reservoir. Water from the Chichester trunkmain also gravitates to the Newcastle and Lake Macquarie areas (Grahamstown water supply zone), where it blends with water supplied from Grahamstown WTP.

Performance at critical control points within the Chichester water supply system during 2013-14 is provided in Table 2.1.

Compliance and Performance Report 2013-14 | 15 Table 2.1 Chichester Water Supply System - Critical Control Points Performance 2013-14 Critical Control Point Critical Limit Compliant Trunkmain chlorination at dam Chlorine concentration < 5 mg/L  Dungog WTP coagulation and filtration Filtered water turbidity must not exceed 1 NTU  (1 July 2013 to 31 October 2013) Dungog WTP coagulation & filtration Individual filters. Filtered water turbidity must not  (1 November 2013 to 30 June 2014) exceed 0.5 NTU for > 15minutes Dungog WTP post-filtration disinfection Disinfection provided to first customer (Chlorine  Contact Time > 4 min.mg/L) Total Chlorine concentration < 5 mg/L at clear  water tank outlet. pH between 6.5 – 9.2 at CWT inlet and outlet  Dungog WTP fluoridation Fluoride concentration < 1.5 mg/L  Buttai reservoir chlorinator Total Chlorine concentration < 5 mg/L  Reservoir tablet dosing Total Chlorine concentration < 5 mg/L  # Fully enclosed distribution system and Storages were routinely inspected and repairs  storages promptly undertaken Backflow prevention policy and Backflow prevention policy and procedures  procedures implemented Maintenance and repair protocols and Protocols and procedures implemented  procedures Construction protocol and procedures Protocols and procedures implemented 

# Explanation of non-conformance provided in section 2.2.7. See “Elevated chlorine at Vacy”.

Compliance and Performance Report 2013-14 | 16 Grahamstown Water Supply System

Grahamstown Dam is fed by its own catchment, as well as water pumped from the Williams River. Water from Grahamstown Dam is filtered and disinfected at Grahamstown WTP. Grahamstown WTP can also treat water from the Tomago Sandbeds. Treated water from Grahamstown WTP supplies Newcastle and Lake Macquarie, as well as Medowie, Stockton and Kooragang Island. Water from this supply zone is also pumped to the Tomaree Peninsula to form part of the supply to the Anna Bay / Nelson Bay area. The estimated population within the Grahamstown water supply system is 374,000.

Grahamstown catchment and storage Grahamstown Dam is an off-river storage with approximately half of the stored water supplied from its own small catchment (area 115 km2) and the remaining half by pumping from the Williams River. The capacity of the dam is 182,305 ML.

Land use in the dam’s direct catchment includes State Forest, rural, rural residential and urban.

The main land-use activities in the Williams River Catchment (area 974 km2) are rural in nature with cattle grazing and dairying predominating.

Water is pumped from Grahamstown Dam to Grahamstown WTP. Grahamstown Dam

Treatment at Grahamstown WTP Grahamstown WTP is a conventional water treatment plant and can treat water from Grahamstown Dam and / or Tomago Sandbeds. The plant has a maximum capacity of 257 ML/d.

The plant includes the following processes:

 Aeration (Tomago Sandbeds water only),  Coagulation / flocculation,  Sedimentation,  Filtration,

 pH correction, Grahamstown WTP  Disinfection, and  Fluoridation. Grahamstown Distribution System Treated water from Grahamstown WTP is pumped to the Newcastle and Lake Macquarie local government areas. The water is re-chlorinated at four locations within the Newcastle and Lake Macquarie distribution system to improve the chlorine residual in order to minimise water quality risk within the distribution system.

Water from Grahamstown WTP is also supplied to Medowie, Stockton and Kooragang Island. Water from this zone is also pumped to the Tomaree Peninsula to form part of the supply to the Anna Bay / Nelson Bay zone.

Performance at critical control points within the Grahamstown water supply system during 2013-14 is set out in Table 2.2.

Compliance and Performance Report 2013-14 | 17 Table 2.2 Grahamstown Water Supply System: Critical Control Points Performance 2013-14 Critical Control Point Critical Limit Compliant Grahamstown WTP coagulation and Filtered water turbidity must not exceed 1 NTU  filtration (1 July 2013 to 31 October 2013) Grahamstown WTP coagulation and Individual filters. Filtered water turbidity must not  filtration (1 November 2013 to 30 June exceed 0.5 NTU for > 15minutes 2014) Grahamstown WTP and mains Disinfection provided to first customer (Chlorine  disinfection Contact Time > 4 min.mg/L) Clear water tank inlet Total chlorine < 5 mg/L  Post rechlorination. Total chlorine < 5 mg/L  pH between 6.5 – 9.2 at the clear water tank outlet  Grahamstown WTP fluoridation Fluoride concentration < 1.5 mg/L  Reservoir tablet dosing Total chlorine concentration < 5 mg/L at the  distribution system reservoirs Distribution system chlorinators (Cardiff, Total Chlorine concentration < 5 mg/L  Toronto, North Lambton, South Wallsend Chlorinators) Fully enclosed distribution system and Storages were routinely inspected and repairs  storages promptly undertaken Backflow prevention policy and Backflow prevention policy and procedures  procedures implemented Maintenance and repair protocols and Protocols and procedures implemented  procedures Construction protocol and procedures Protocols and procedures implemented 

Compliance and Performance Report 2013-14 | 18 Lemon Tree Passage Water Supply System

Water is extracted from the north-eastern end of the Tomago Sandbeds and treated using two-stage filtration and disinfection at Lemon Tree Passage WTP. Treated water is pumped to Tanilba Bay, Mallabula, Lemon Tree Passage, Swan Bay and Karuah. The estimated population supplied by this system is 7,600.

Tomago Sandbeds catchment and storage The Tomago Sandbeds catchment covers an extensive area (109km2) from Heatherbrae in the west to Lemon Tree Passage in the east. The majority of the catchment is State Conservation Area however, land use also includes residential, industry, transport, agriculture, utilities, defence force activities, recreational sites and viticulture.

Water is extracted from the Tomago Sandbeds using a network of production bores before being treated at Grahamstown WTP, and at the north- eastern end, at Lemon Tree Passage WTP.

Tomago Sandbeds

Treatment at Lemon Tree Passage WTP Lemon Tree Passage WTP has a maximum capacity of 5 ML/d.

The plant includes the following processes:

 Aeration,  Coagulation / flocculation,  Two stage filtration,  pH correction,  Disinfection, and  Fluoridation.

Lemon Tree Passage WTP

Lemon Tree Passage Distribution System Water is supplied from Lemon Tree Passage WTP to Tanilba Bay, Mallabula, Lemon Tree Passage, Swan Bay and Karuah.

Performance at critical control points within the Lemon Tree Passage water supply system during 2013-14 is set out in Table 2.3.

Compliance and Performance Report 2013-14 | 19 Table 2.3 Lemon Tree Passage Water Supply System: Critical Control Points Performance 2013-14 Critical Control Point Critical Limit Compliant Lemon Tree Passage WTP Combined filtered water. turbidity < 1 NTU*  coagulation and filtration Lemon Tree Passage WTP Disinfection provided to first customer (Chlorine Contact  disinfection Time > 4 min.mg/L) Total chlorine < 5 mg/L at the Chlorine Contact Tank  inlet Total chlorine < 5 mg/L at the clear water tank outlet  pH between 6.5 – 9.2 at the clear water tank outlet  Lemon Tree Passage WTP fluoridation Fluoride concentration < 1.5 mg/L  Reservoir tablet dosing Chlorine concentration < 5 mg/L  # Fully enclosed distribution system and Storages were routinely inspected and repairs  storages undertaken promptly Backflow prevention policy and Backflow prevention policy and procedures implemented  procedures Maintenance and repair protocols and Protocols and procedures implemented  procedures Construction protocol and procedures Protocols and procedures implemented  * The following exceptions for filtered water turbidity at Lemon Tree Passage WTP have been agreed with NSW Health (as set in the criteria for notification to NSW Health):  Clearwater pumps stop/start operation and plant restarting causing brief turbidity spikes (stirring up lime solids); and  Filter in a backwash cycle causing brief turbidity spikes. Backwashing of a roughing filter or a secondary filter may cause turbidity spikes on either or both secondary filters due to flow changes and ripening effects

# Explanation of non-conformance provided in section 2.2.7.

Compliance and Performance Report 2013-14 | 20 Anna Bay and Nelson Bay Water Supply System

The Tomaree Sandbeds are located within the protected catchment of the Tomaree National Park. Water is naturally filtered within the Sandbeds, and is aerated and disinfected at Anna Bay and Nelson Bay WTPs. Water from this source is blended with water from Grahamstown WTP to supply the Tomaree Peninsula. The estimated population within the Anna Bay / Nelson Bay water supply system is 25,000.

Tomaree Sandbeds catchment and storage The Tomaree Sandbeds are located within the protected catchment of the Tomaree National Park. The catchment area is approximately 16 km2.

The groundwater is naturally filtered within the aquifer. Water is extracted from the Sandbeds using a network of production bores and treated at Anna Bay and Nelson Bay WTPs.

Anna Bay Bores

Treatment at Anna Bay and Nelson Bay Water Treatment Plants Anna Bay and Nelson Bay WTPs can each supply a maximum flow of about 12 ML/d.

The plants use the following processes:

 Aeration,  pH correction,  Disinfection, and  Fluoridation.

Anna Bay WTP

Anna Bay / Nelson Bay distribution system Water from the WTPs supply the Tomaree Peninsula, including Anna Bay, Boat Harbour, Salamander Bay, Nelson Bay, Fingal Bay, Shoal Bay, Corlette and Soldiers Point.

Water from Grahamstown WTP is also used to supply the Anna Bay / Nelson Bay water system.

Performance at critical control points within the Anna Bay / Nelson Bay water supply system during 2013-14 is set out in Table 2.4.

Compliance and Performance Report 2013-14 | 21 Table 2.4 Anna Bay/ Nelson Bay Water Supply System: Critical Control Points Performance 2013-14 Critical Control Point Critical Limits Compliant Anna Bay WTP disinfection Disinfection (Chlorine Contact Time > 4 min.mg/L) prior to the  first customer Total chlorine concentration at clear water tank inlet <5.0 mg/L  (total chlorine) Turbidity at Clear Water Tank outlet <5 NTU  pH between 6.5 – 9.2 at Clear Water Tank inlet and outlet  Nelson Bay WTP disinfection Disinfection (Chlorine Contact Time > 4 min.mg/L) prior to the  first customer at all times Total chlorine concentration at clear water tank inlet <5.0 mg/L  Turbidity at clear water tank outlet <5 NTU  pH between 6.5 – 9.2 at Clear Water Tank inlet  Anna Bay/Nelson Bay WTP Fluoride concentration within the critical limit (< 1.5 mg/L)  fluoridation Reservoir tablet dosing Chlorine concentration within the upper critical limit (< 5 mg/L)  Fully enclosed distribution system Storages were routinely inspected and repairs promptly  and storages undertaken Backflow prevention policy and Backflow prevention policy and procedures implemented  procedures Maintenance and repair protocols Protocols and procedures implemented  and procedures Construction protocol and Protocols and procedures implemented  procedures

Compliance and Performance Report 2013-14 | 22 Gresford Water Supply System

Water is extracted from the Allyn and Paterson Rivers and is filtered and disinfected at Gresford WTP. Water is supplied to Gresford and East Gresford, with an estimated population of 330.

Allyn and Paterson Rivers catchment The predominant land uses within the Allyn and Paterson catchments include grazing, dairy and poultry farming, forestry and recreational activities.

Water is extracted from the Allyn and Paterson Rivers at Gresford, and is treated at the Gresford WTP.

Allyn River

Treatment at Gresford WTP The maximum capacity of Gresford WTP is 0.6 ML/day.

The plant includes the following processes:

 Membrane microfiltration, and  Disinfection. The plant is remotely monitored using SCADA.

Microfiltration - Gresford WTP

Gresford distribution system Water from Gresford WTP is supplied to Gresford and East Gresford.

Performance at critical control points within the Gresford water supply system during 2013-14 is set out in Table 2.5.

Compliance and Performance Report 2013-14 | 23 Table 2.5 Gresford Water Supply System - Critical control points performance 2013-14 Critical Control Point Critical Limit Compliant Gresford WTP microfiltration Filtered water turbidity < 1 NTU at Clear Water Tank Inlet  (1 July 2013 to 31 October 2013) Gresford WTP microfiltration Filtered water turbidity < 0.5 NTU at Clear Water Tank Inlet  (1 November 2013 to 30 June 2014) Membrane Integrity (Pressure decay) <10 kPA/min  Gresford WTP disinfection Disinfection (Chlorine Contact Time > 4 min.mg/L) prior to first customer  Total chlorine concentration at the Clear Water tank inlet <5.0 mg/L  pH between 6.5 and 9.2 at Clear Water Tank Inlet  Fully enclosed clear water tank and Clear Water Tank routinely inspected and repairs promptly  distribution system undertaken Backflow prevention policy and  Backflow prevention policy and procedures implemented procedures Maintenance and repair protocols  Protocols and procedures implemented and procedures Construction protocol and  Protocols and procedures implemented procedures

2.2.3 Verification Monitoring

The Framework emphasises a preventive approach (including operational monitoring and process control) combined with verification monitoring (Element five of the Framework) to confirm that preventive measures have been effective.

“Verification of drinking water quality provides an important link back to the operation of the water supply system and additional assurance that the preventive measures and treatment barriers in the water supply system have worked, and are working, to supply safe drinking water.” (ADWG 2011 Section 9.5 p. 9.17)

Verification monitoring is based on results of water quality samples that are representative of water supplied to customer’s taps.

In 2013-14, full compliance with regulatory requirements was achieved for verification monitoring. The performance and mean results of analysis for key microbiological and physical / chemical parameters during this period are shown in Table 2.6 and Table 2.7.

It should be noted that the ADWG 2011 specify water quality standards that are considered safe for people to drink over an entire lifetime. Therefore, licence performance is a statistical analysis of results, based on percentage compliance rather than absolute figures.

Table 2.6 Microbiological Water Quality 2013-14 Parameter Health / Measure of Regulatory Whole of Hunter Compliant Aesthetic Compliance Target Water 12 Months Samples E.coli Health % of samples >98% of samples 99.9% of samples  containing <1 Most shall contain <1 contained <1 MPN Probable Number MPN per 100 mL per 100 mL (MPN) per 100 mL

Compliance and Performance Report 2013-14 | 24 Table 2.7 Key Physical / Chemical Parameters 2013-14 Category Parameter Units 2011 Health / Hunter Water 12 Compliant ADWG Aesthetic Licence Months Guideline Performance Mean Physical Turbidity NTU ≤ 5 Aesthetic 0.3 0.3  pH 6.5 to 9.2 Aesthetic 7.6 7.6  Colour HU ≤ 15 Aesthetic 5.1 5  Chemical Iron mg/L ≤ 0.3 Aesthetic 0.022 0.022  Manganese mg/L ≤ 0.5 Health 0.02 0.004  Aluminium mg/L ≤ 0.2 Aesthetic 0.046 0.045  Copper mg/L ≤ 2 Health 0.015 0.006  Lead mg/L ≤ 0.01 Health 0.002 0.001  Zinc mg/L ≤ 3 Aesthetic 0.005 0.005  Fluoride mg/L ≤ 1.5 Health 1.16 0.96  Chlorine mg/L ≤ 5 Health 0.9 0.4  Trihalo- mg/L ≤ 0.25 Health 0.142 0.084  methanes

Licence performance result for each physical / chemical parameter is determined as follows:

 For health related characteristics, the objective is to be confident that the 95th percentile of results over the preceding 12 months is less than the guideline value. This means that the upper bound of the 95 per cent confidence interval for the 95th percentile should be less than the guideline value.  For water quality characteristics which are not health related (i.e. aesthetic), the objective is to be confident that the mean value (or average) of results over the preceding 12 months is less than the guideline value. This means that the upper bound of the 95 per cent confidence interval for the mean should be less than the guideline value. A brief explanation for each key water quality parameter is included in the Glossary (see section 8.3).

Compliance and Performance Report 2013-14 | 25 2.2.4 Drinking Water Quality Management Activities and Programs 2013-14

Improvements to drinking water quality management undertaken or underway during 2013-14 are shown in Table 2.8.

Table 2.8 Drinking Water Quality Management Activities and Programs 2013-14 ADWG Framework Water quality objective Activity / Program Results / Outcomes sub-element 3.1 Preventive Measures and Develop strategy for Distribution System The strategy was Multiple Barriers optimising chlorine Disinfection Residual developed that included residual in distribution Strategy developed. investigation of chlorine system to provide decay in different treated additional barrier to waters, organics in the pathogens Grahamstown source, additional treatment options including enhanced coagulation and increased chlorination, and modelling of chlorine in the distribution system to assess the effectiveness of different improvement options. 3.2 Critical Control Points Improve backflow Developed and High and Medium Hazard prevention implemented backflow customers: prevention strategies Backflow Prevention Compliance Framework has been developed and implemented. Low Hazard customers: A meter replacement strategy was approved in February 2014. Funding was approved for the replacement of water meters where the inbuilt backflow prevention device is known to be likely to fail over the next three financial years. 3.2 Critical Control Points Ensure water quality is Developed and More stringent critical maintained at identified implemented revised (notification) and target critical control points. target and critical limits limits for filtered turbidity for filtered turbidity for for surface waters (in line surface waters and with ADWG 2011) were improved the definition of implemented. critical limits for primary Critical (notification) and disinfection target limits for primary disinfection at WTPs were implemented. 3.2 Critical Control Points Ensure compliance with Developed respective Water quality controls critical control points. protocols and auditing have been included in procedures. operational procedures and field inspection checklists. 4.2 Operational Monitoring Document real-time Developed a reporting Protocol / reporting performance against protocol for filtered water system has been operational targets. turbidity and Chlorine developed. Contact Time. 4.3 Corrective Action Ensure that WTP is shut Auto-shutdown of WTPs Automatic shutdown for down before for key water quality key water quality unacceptable water parameters.

Compliance and Performance Report 2013-14 | 26 ADWG Framework Water quality objective Activity / Program Results / Outcomes sub-element quality is supplied to the parameters implemented distribution system. at all WTPs. 5.1 Water Quality Monitoring Align pesticide monitoring Implemented a revised Revised pesticide program to pesticide use pesticides monitoring monitoring program within catchments. aligned to pesticides used implemented. within Hunter Water's catchments. 7.2 Employee Training Improve staff awareness Developed online Water Online water quality of risks / preventive Quality Awareness awareness training for approach to protecting Training for employees employees and drinking water quality. and contractors. contractors developed. 9.1 Investigative studies and Improve understanding of Contributed to Australian Projects on-going. research monitoring E coli as an indicator Research Council bacteria, and organic research projects matter in Grahamstown including E. coli as an source. indicator bacteria, Monitoring organic matter in drinking water systems using fluorescence spectroscopy. Engaged a consultant to investigate Chichester Destratification system.

2.2.5 Proposed Drinking Water Quality Management Activities and Programs 2014-15

Proposed measures to improve drinking water quality management are outlined in Table 2.9.

Table 2.9 Proposed Drinking Water Quality Management Activities and Programs ADWG Framework Sub- Water Quality Objective Activity / Program Scope / Expected element Outcomes / Timeframe 3.1 Preventive Measures and Implement strategy for Implement outcomes Increase chlorine residual Multiple Barriers optimising chlorine from stage 1 of the in the distribution system residual in distribution Distribution System by June 2015. system to provide Disinfection Residual additional barrier to Strategy. pathogens. 3.2 Critical Control Points Verification monitoring for Develop a formal Develop agreement with water supplied by the agreement of water Wyong Shire Council by Central Coast. quality testing and June 2015. reporting for water non- compliant with the ADWG. 4.1 Operational Procedures Optimise operation of Implement improvements Review operation of 4.3 Corrective Action distribution chlorinators. to operation of distribution chlorinators in the 4.4 Equipment Capability and system chlorinators. distribution system and Maintenance develop optimisation plans for each facility by June 2015. 5.1 Water Quality Monitoring Develop more targeted Develop revised Revise and implement cryptosporidium Cryptosporidium / Giardia Cryptosporidium / Giardia monitoring program to monitoring program. monitoring program by better characterise this June 2015. risk.

Compliance and Performance Report 2013-14 | 27 2.2.6 Proposed Significant Changes to the Drinking Water Quality Management System

Hunter Water Australia (HWA) currently operates Hunter Water’s water treatment plants. HWA’s water quality management systems are aligned with the Framework for Management of drinking water quality. HWA’s procedures and processes form part of Hunter Water Corporation’s Drinking Water Quality Management System (DWQMS).

Hunter Water has awarded a contract to operate and maintain Hunter Water’s water and wastewater treatment plants to Veolia Water Australia Pty Ltd (Veolia) for up to 10 years. Veolia are expected to commence operation and maintenance of the treatment plants in October 2014.

The new contract includes stringent drinking water quality requirements. It specifically requires Veolia to develop and fully implement a DWQMS consistent with the Framework within twelve months of commencement of the contract. Veolia will be required to operate the WTPs in line with Hunter Water’s existing DWQMS until their accredited system is developed and implemented.

Veolia’s accredited DWQMS will be a subset of, and be integrated with, Hunter Water’s overall DWQMS. Hunter Water will maintain full responsibility for maintaining a DWQMS from catchment to tap under its Operating Licence.

2.2.7 Water Quality Issues and Actions Taken to Resolve Them

Elevated Chlorine at Vacy

Water with an elevated concentration of chlorine was supplied for 2½ hours to the township of Vacy on 27 August 2013. The exact level is unknown but has been estimated at up to 7 mg/L total chlorine and 5.8 mg/L free chlorine. This estimate is based on monitoring in the high level tank (HLT) rather than the distribution system and the sample was taken four weeks prior to the high level tank discharging.

The township of Vacy is supplied water by Martins Creek Number 2 Reservoir. Vacy HLT is used to maintain water supply to Vacy during shutdowns of the usual supply or in the event of a watermain break. For operational reasons, Vacy HLT is isolated from the network during normal operation, thus ensuring availability of supply during a shutdown or main break.

Routine water quality sampling on 30 July 2013 detected a free chlorine level of 5.8 mg/L in Vacy HLT as a result of routine chlorine tablet dosing. The reservoir was isolated until concentrations decreased to within ADWG guidelines (maximum 5 mg/L total chlorine).

A watermain leak repaired on the morning of 27 August 2013 required the isolation of Vacy from Martins Creek No. 2 Reservoir. In order to maintain water supply, field crews brought Vacy HLT online. Field crews were not aware the HLT contained elevated chlorine. As a result, Vacy HLT supplied approximately 6.5 kL of water to Vacy between 8:30 and 11:00am, after which Martins Creek Number 2 Reservoir came back online.

At 12:48pm Hunter Water received a customer complaint for a chlorine taste in the water at Vacy. As a result a priority 1 job was logged and the site was attended at 1:30pm. The HLT was isolated (although it had been filling since 11:00am and was not supplying the town) and flushing of the watermain was undertaken.

Sampling was undertaken at the flushing point at Gresford Road, Vacy. Results showed free chlorine of 0.5mg/L and total chlorine of 0.7mg/L.

In order to prevent reoccurrence of such an incident the water quality exception response plans were amended to require the Duty Officer to be contacted prior to bringing Vacy HLT online to seek advice of chlorine levels.

While the concentration of total chlorine may have exceeded the health related ADWG guideline, it is considered that the short time of potential exposure at these concentrations presents a minimal health risk.

Compliance and Performance Report 2013-14 | 28 Elevated Chlorine at Lemon Tree Passage

Elevated concentrations of free and total chlorine (7 mg/L) were detected in a sample taken on 1 November 2013 within Lemon Tree Passage distribution system. Additional sampling and analysis was undertaken to determine the cause and extent of the elevated chlorine concentration. Due to the short time frame of the elevated chlorine levels the risk to public health was negligible.

Increased chlorine concentrations coincided with routine manual dosing of chlorine tablets at the Lemon Tree Passage Reservoir. Other samples taken following the initial high chlorine reading showed elevated chlorine results, but no other results exceeded the ADWG guideline of 5 mg/L total chlorine. The chlorine dose rate at the reservoir was reduced and improved quality assurance procedures for reservoir dosing were implemented.

Follow-up sampling after the incident showed chlorine residuals within the Lemon Tree Passage distribution system were consistently within the ADWG.

Detection of E. coli at Karuah

E.coli (1 MPN/100mL) was detected in a routine sample taken at Karuah on 6 January 2014.

Investigation of potential sources of contaminants was undertaken. No likely source of pathogens was identified. Karuah Reservoir was inspected and found to be in good condition. Biofilm within the pipe network is considered a possible source of the indicator bacteria.

Chlorine dosing at Karuah Reservoir had been regularly undertaken three times per week. This had been maintaining a consistent chlorine residual within the Karuah distribution system. However, the frequency of chlorine dosing was reduced over the Christmas period, causing a decrease in chlorine concentration. In response to this issue, the frequency of reservoir tablet dosing at Karuah was restored to three times per week, to be maintained on an ongoing basis.

Compliance and Performance Report 2013-14 | 29 2.3 Recycled Water

Hunter Water’s recycled water schemes are currently managed under the National Water Quality Management Strategy Guidelines for Sewerage Systems: Use of Reclaimed Water 2000. Hunter Water is working towards implementing the 2006 Australian Guidelines for Water Recycling (AGWR) by July 2015 for all existing schemes, as agreed with NSW Health in 2012. The AGWR provides a framework for the management of recycled water systems. The framework emphasises a risk management approach in controlling hazards to human health and the environment.

The key activities required to meet compliance with the AGWR are detailed in Hunter Water’s Five Year Recycled Water Quality Improvement Plan.

Details of activities completed during 2013-14 and proposed future improvements are outlined within this section.

2.3.1 Overview of Recycled Water Systems

Hunter Water’s current recycled water schemes provide recycled water from the Branxton, Cessnock, Clarence Town, Dora Creek, Dungog, Edgeworth, Farley, Karuah, Kurri Kurri, Morpeth and Paxton Wastewater Treatment Works (WWTW) as described in Table 2.10. The location of Hunter Water’s current and proposed recycled water schemes is shown in Figure 2.3.

Table 2.10 Hunter Water’s Recycled Water Schemes Wastewater Treatment Works Recycled Water Scheme Use Branxton Branxton Golf Club, local farmer and The Vintage Golf Club Cessnock Stonebridge Golf Club Clarence Town Clarence Town WWTW Effluent Reuse Dora Creek Eraring Power Station Edgeworth Oceanic Coal, Waratah Golf Club Farley Local farmer Karuah Karuah Effluent Reuse Enterprise Kurri Kurri Kurri Kurri Golf Club and Kurri Kurri TAFE Morpeth Easts Golf Club, McColl Engineering (trotting track irrigation) and local farmer Paxton Paxton Woodlots Dungog Local farmer

Hunter Water has committed to manage recycled water delivery processes to meet the requirements of its Operating Licence 2012-2017, customer agreements and other relevant regulatory requirements in a way that protects human and environmental health.

The Operating Licence 2012-2017 requires that Hunter Water maintain a management system that is consistent with the AGWR and that takes any relevant amendments by NSW Health into account.

NSW Health has specified that all Hunter Water’s new recycled water schemes are to meet the requirements of the AGWR and that, where necessary, work must be done on existing schemes to meet these same requirements. A key component of being compliant with the AGWR is the implementation of the risk based management framework.

Compliance and Performance Report 2013-14 | 30 Figure 2.3 Hunter Water’s Recycled Water Schemes

Compliance and Performance Report 2013-14 | 31 2.3.2 Recycled Water Schemes and Performance of Critical Control Points

Workshops have been conducted to identify a number of critical control points in the process of each scheme, to effectively manage recycled water quality. Hunter Water is continuing to improve operational and monitoring procedures so that the optimal monitoring parameters, critical limits and associated preventative or contingent control actions are put in place at each of these points.

Hunter Water has agreed with NSW Health to have implemented the AGWR by July 2015. This will include a documented Recycled Water Management Plan identifying critical control points for every scheme.

Hunter Water continues to work through the process of implementing the AGWR for all recycled water schemes. To date, Hunter Water has identified and implemented critical control points as part of the management plan for the scheme supplying recycled water from the Branxton WWTW.

Branxton Wastewater Treatment Works

Branxton WWTW accepts wastewater from Branxton East, Branxton and Greta. Influent entering the system is primarily residential (domestic) with only small commercial flows from retail outlets, hotels and small automotive repair garages (trade waste).

The WWTW includes the following processes:

 Bioreactor,  Membrane filtration, and  Chlorination.

The Vintage

Recycled water from Branxton WWTW is supplied to customers as well as for onsite use. Customers include the Branxton Golf Course, a local farmer and The Vintage Golf Course.

Performance at critical control points within the Branxton WWTW during 2013-14 is set out in Table 2.11.

Table 2.11 The Vintage Recycled Water Scheme Critical Control Point Performance Compliant Membranes Turbidity within critical limit (< 0.5 NTU) at all times  Chlorination The chlorination system is within the critical limits at all times 

Compliance and Performance Report 2013-14 | 32 2.3.3 Recycled Water Quality Management Activities and Programs 2013-14

Table 2.12 Recycled Water Activities and Programs 2013-14 AGWR Framework Recycled Water Activity / Program Results / Outcomes Sub-element Objective 2.3 Assessment of water Assess data to identify Update plant operational Spreadsheets have been quality data trends and potential spreadsheets to identify updated with trigger problems. quality monitoring results levels to notify operations and implement automatic of potential problems. notifications if results fall outside target values. 2.4 Hazard Identification and Identify hazards and risks Review and update All current recycled water Risk Assessment and preventative existing risk schemes underwent an measures. assessments. updated risk assessment. This involved assessing if current controls are sufficient and identifying possible areas for improvement. 3.2 Critical Control Points Identify critical control Detailed assessment of The completion of risk points, document critical system to identify assessments and and target limits. requirements for desktop validation reports implementation of have allowed for critical management plan using control points to be critical control points. identified and will be documented as management plans are created. 4.4 Equipment Capability and Ensure that equipment Investigate existing The Recycled Water Maintenance performs adequately and process and identify Asset Construction and provides sufficient additional monitoring or Maintenance business flexibility and process design features. rules document that control. defines responsibilities was created. 5.1 Recycled Water Quality Determine characteristics Review current The recycled water Monitoring to be monitored, points to monitoring practices. quality monitoring be monitored and program has been frequency. updated. 5.5 Short-term evaluation of Develop reporting Develop standard Weekly data analysis results mechanisms internally reporting procedures for processes have been and externally where all major stakeholders. implemented including required. notification of potential quality issues and the update of procedures addressing recycled water quality. 9.1 Validation of processes Validate processes and Conduct desktop Desktop validation procedures to ensure validation for all existing reports have been they control hazards schemes. created identifying effectively. compliance standards with AGWR.

Compliance and Performance Report 2013-14 | 33 2.3.4 Proposed Recycled Water Quality Management Activities and Programs 2014-15

Table 2.13 Recycled Water Activities and Programs 2014-15 AGWR Framework Recycled Water Activity / Program Results / Outcomes Sub-element Objective 3.2 Critical Control Points Identify critical control Expand on detailed Critical control point and points, document critical assessment already associated limits will be and target limits. completed in risk identified in recycled workshops to obtain water quality approval from NSW management plans to be Health for CCP and created for each scheme limits. by July 2015. 9.1 Validation of processes Validate processes and Follow on from desktop Validation Plan created to procedures to ensure validation reports created the satisfaction of NSW they control hazards to complete a detailed Health by July 2015. effectively. plan for the validation of treatment processes. 10.1 Management of Document information Create a recycled water Recycled water quality documentation and pertinent to all aspects of quality management plan management plans records recycled water quality that details the nature of created for all existing management. the recycled water recycled water schemes system and how it should by July 2015. be operated and managed. 12.2 Recycled Water Quality Develop action plans and Create recycled water Recycled Water Improvement Plan commit the resources improvement plans that Improvement Plans will necessary to improve include objectives, be created for all existing operational processes actions to be taken, recycled water schemes and overall recycled accountability, timeliness as required. water quality. and reporting.

2.3.5 Proposed Significant Changes to the Recycled Water Quality Management System

Hunter Water is progressing towards the completion of the five year plan therefore no significant changes to its recycled water quality management systems are proposed for 2014-15.

2.3.6 Recycled Water Issues and Actions Taken

Elevated E. coli at Dungog WWTW

While completing desktop treatment validation studies of current recycled water schemes, it was identified that the faecal coliform median result for recycled water reuse at Dungog WWTW was approximately 2400 Colony Forming Units (CFU)/100mL and the treatment process in place did not meet log reduction requirements.

The end use (pasture or fodder crop irrigation, with withholding period) requires water quality objectives to meet a median result for faecal coliforms of <1000 per 100mL. The pasture is utilised for dairy cattle and the farmer implements a 5 day withholding period after irrigation.

NSW Health were advised of the issue and a risk assessment was completed with NSW Health in attendance. The risk assessment found that public access is restricted and therefore public health risks were considered low.

A treatment process upgrade to the WWTW is planned for approximately 2018. Hunter Water is in the process of reviewing operations at the WWTW, including a survey of the effluent holding dam, optimisation strategy for the levels in the dam and an options assessment for an effluent management strategy.

Hunter Water has been providing NSW Health updates via the quarterly NSW Health liaison meeting.

Compliance and Performance Report 2013-14 | 34 Branxton WWTW Blue Green Algae

A NSW Health notification was issued on 3 February 2014, after blue green algae was detected in the farmer’s reuse storage pond that supplies recycled water to the Branxton Golf Club and a local farmer.

Supply of recycled water to the customers was ceased. Discussions were held with NSW Health to determine the potential for health related concerns following the use of the recycled water. NSW Health advised that the risk from the algal toxins would be controlled provided the exposure to sprays was restricted. The risk was determined to be low, due to supply being ceased and any previous irrigation occurring at night.

The issue occurred due to low volumes of recycled water being available in the pond combined with high temperatures. Supply did not recommence until the pond was de-watered and refilled with recycled water.

Compliance and Performance Report 2013-14 | 35 3 WATER QUANTITY

3.1 Introduction

Chapter three provides an overview of Hunter Water’s performance in water quantity management. It reports compliance with the Water Conservation Target for residential water use in the Lower Hunter, including projects undertaken in 2013-14 and planned for 2014-15 to achieve compliance. It also presents the definition of yield developed as part of the LHWP and an estimate of the maximum reliable quantity of water that Hunter Water can derive each year from its existing water sources using this yield definition.

3.2 Water Conservation Target

Hunter Water has a Water Conservation Target to ensure that the five year rolling average for annual residential water consumption is equal to or less than 215 kilolitres per year for each residential property. The Water Conservation Target has been achieved in 2013-14.

Table 3.1 and Figure 3.1 show historical residential water usage. Water consumption per capita and per property varies each year due to the weather. Total rainfall in 2013-14 was lower than in preceding years and included periods of below average rainfall. The five year rolling average water consumption smooths out the effects of weather. The five year rolling average water consumption was trending downwards from 2005- 06 to 2010-11, then stabilised for the last three years. This is due to water efficient behaviours in the home and more efficient appliances being available when old models need replacing.

Table 3.1 Residential Water Use Per Annum

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Kilolitres per 205 195 177 180 184 175 163 176 181 property

Five year rolling 208 205 196 191 188 182 176 175 176 average of above

Kilolitres per 78 76 70 71 72 67 62 68 70 person

Compliance and Performance Report 2013-14 | 36 Figure 3.1 Ten Year Trend in Residential Water Use

3.3 Residential Water Conservation Projects 2013-14

Hunter Water’s Water Conservation Target is based on residential water use. Hunter Water implements residential water conservation (or efficiency) projects to help meet the target.

Over the last 20 years there have been significant gains in the water efficiency of residential fittings and appliances. For example, most homes now have dual flush toilets, which are 67 per cent more efficient than single flush toilets. Showerheads are now up to 100 per cent more efficient, taps are now up to 90 per cent more efficient and washing machines are typically 50 per cent more efficient.

The uptake of water efficient products has been supported by State and Federal government legislation and incentive schemes, along with Hunter Water programs. National programs have focussed on labelling for water efficient products (Smart Approved Water Mark, 2005 onwards) and minimum water efficiency standards for toilets and washing machines (Water Efficiency Labelling and Standards Scheme WELS, 2005 onwards).

NSW government initiatives over the past 10 years have been:

 Introduction of BASIX legislation in 2004-05, which imposes minimum water standards for new homes and renovations.  Introduction of residential tenancies water efficiency legislation in 2011.  NSW Energy Saving Scheme (replaced NSW Greenhouse Gas Abatement Scheme) which encouraged the installation of water efficient shower heads (2003 to 2011).  NSW Government Rebates for water efficient washing machines, rainwater tanks and dual flush toilets (2007-2011).  NSW Home Power Savings Program (free in-home advice from an energy expert and a power savings kit for low income households) (2009- 2013).

Compliance and Performance Report 2013-14 | 37 The uptake of water efficient products has significantly improved in recent years. Improvements will continue through the legislation noted above as well as replacement of worn/broken appliances and fittings with new efficient models.

Hunter Water’s residential water efficiency projects aim to:

 Support the most efficient use of existing water infrastructure,  Raise customer awareness of cost effective opportunities to become more water efficient,  Promote water efficient behaviour and improve the region’s readiness to act in drought, and  Equitably meet customer needs, especially those in financial hardship. Water efficiency programs were reviewed as part of the LHWP. Initiatives outlined in the LHWP include:

 Development of a high school water education program to utilise the education centre at the Kooragang Advanced Water Treatment Plant, and  An investigation into the effectiveness of rainwater tanks. Water savings achieved through Hunter Water’s residential water efficiency projects in 2013-14 and forecast water savings from projects planned for 2014-15 are provided in Table 3.2.

Table 3.2 Residential Water Efficiency Projects and Estimated Water Savings

Water savings (ML/year) Program Project Implemented 2014-15 in 2013-14 Planned Showerhead exchanges 17 10 Appliance replacement Shower timer and DIY water saving kit giveaways n/a n/a incentives Hunter Region No Interest Loans Scheme (washing machines) 1 1 Total 18 11

3.3.1 Water Efficiency Education

Hunter Water’s approach to residential water efficiency education involves general education and awareness programs, collaborative promotion of water efficiency programs (such as the Water Efficiency Labelling Scheme for household appliances) and promotion of water saving products.

Hunter Water has developed a diverse community education and awareness program that continues to be delivered via a range of channels in partnership with community, industry and other agencies such as local government. The initiatives below have been delivered during 2013-14.

Website

Hunter Water’s website includes a dedicated ‘Save Water’ section that provides information on how to be water efficient in the home and garden (http://www.hunterwater.com.au/Save-Water/Save-Water.aspx). In 2013-14 the residential sections - save water (landing page), water usage calculator, our save water initiatives, in the home, in the garden and how many buckets can you save – received 58,773 unique visitors.

Educational Material to Schools

One of Hunter Water’s education initiatives was the development of a science education water program. This program will utilise the Steel River Advanced Water Treatment Plant education centre that will open in the 2014-15 year. The program will target Stage 4 (year 7 and 8) high school science students.

Compliance and Performance Report 2013-14 | 38 Community Water Education

Two programs focusing on water education for the community include Water Wise Rules as part of the LHWP and the Bubbles and Squirt school education shows.

Bubbles and Squirt is a water education show which incorporates tips on saving water and acting Water Wise. These are performed at local primary and preschools in the Hunter Water area of operations. There were 61 shows delivered in 2013-14.

In the last quarter of 2013-14 a marketing campaign commenced to educate customers about Water Wise Rules coming into place on 1 July 2014. Mediums such as television, local radio, newspapers, buses, Hunter Water website and newsletter were used to communicate to the community. Events were held and will be continued into 2014-15 to address customer’s questions and help them get water wise with free trigger nozzle giveaways.

Community Sponsorship

In 2013-14 Hunter Water Sustainability Grants provided direct funding to community organisations for water conservation and education projects.

The program enabled Hunter Water to strengthen positive relationships with key stakeholders including local politicians and community leaders. In 2013-14 there were 13 Sustainability Grant applications approved across six state electorates.

The 2013-14 Sustainability Grants included activities such as a water efficiency project for a community sports ground, water education shows for schools and preschools, sustainable gardens for schools and community groups, sensory gardens for children living with a disability and rehabilitation projects conducted in local creeks to improve waterways. Further information on Hunter Water’s Sustainability Grants and recipients is available at http://www.hunterwater.com.au/grants.

Promotion of Water Saving Products

Hunter Water continued to support the WELS for household appliances by including information on WELS under the ‘Save Water’ section of the Hunter Water website.

In addition, Hunter Water attended several community events to promote and encourage householder uptake of water efficiency products. Efficient gardening tips were provided at the Living Smart Festival during spring, a water efficiency talk was provided to Medowie residents in October 2013, a United Nations Day water speech was given to the public at Toronto in October 2013 and general water efficiency tips were provided at Merewether High School’s Green Day in June 2014.

These activities rely on consumers acting on their new awareness of water efficient products and behaviours; therefore the water savings are unquantifiable.

Cameron Park and Fletcher Rainwater Tank Education Program

A new program to be completed in 2014-15 is the rainwater tank education program. The program involves the inspection of approximately 200 properties with rainwater tanks to identify whether the rainwater tanks are working correctly and any issues with their maintenance. The purpose of the program is to better identify failure rates in existing stock and educate customers on the benefits of rainwater tank system maintenance. The information gathered will be used for forecasting future water demand and in the development of programs to address failure rates in rainwater tank systems. The program is an initiative outlined in the LHWP.

Compliance and Performance Report 2013-14 | 39 3.3.2 Household Appliance Replacement Incentives

Hunter Water offered a range of programs to replace home appliances with more water efficient models.

Showerhead Exchanges

Hunter Water jointly offered showerhead exchanges at seven events with Lake Macquarie City Council, Maitland City Council, Cessnock City Council, Port Stephens Council and Dungog Shire Council. Residential customers were able to exchange less efficient showerheads for either a free standard water efficient showerhead or a premium water efficient showerhead at a subsidised cost.

In 2013-14, 629 premium and 966 standard showerheads were exchanged providing an estimated annualised 17 ML of water savings.

Shower Timer and DIY Water Saving Kit Giveaways

In 2013-14, Hunter Water gave away stock of small water saving products at community events. These consisted of an electronic programmable shower timer to encourage people to take shorter showers and/or free Do-It-Yourself (DIY) water saving kit with tap aerators, installation tool and instructions. Participation rates are no longer recorded because a recent statistical analysis was unable to verify water savings from this project using existing records and requiring customers to fill in a form to receive the giveaway was discouraging uptake.

Hunter Region No Interest Loans Scheme (HRNILS)

Hunter Water has partnered with Ausgrid’s Appliance Assist program, that provides a $100 subsidy for water and energy efficient washing machines and refrigerators, and Hunter Region No Interest Loans (HRNILS) to help people on a limited income, who cannot access mainstream credit, purchase a new water efficient washing machine. HRNILS provide small, no interest loans to low income households for the purchase of essential household goods.

A water and energy efficient washing machine can save up to $100 per year in operating costs compared with an inefficient (1 or 2 water efficiency star rating) machine.

To be eligible for a HRNILS loan for a water efficient dual flush toilet or washing machine, you must live in a local government area serviced by Hunter Water, meet the HRNILS low income criteria (e.g. on Centrelink benefits, a low wage earner, on a Health Care card or Pension card), and be over the age of 18.

In 2013-14 Hunter Water added extra incentives by also offering a $30 gift card for loan applicants that decided to scrap their old washing machine. This means that older, less water efficient washing machines are taken out of circulation and fully replaced with efficient models.

In 2013-14 a total of 16 new loans for water efficient washing machines were written. This was less than expected. The fall in demand was mainly due to the Australian Government Home Energy Saving Scheme (HESS) that operated from December 2013 to June 2014. The HESS program offered a superior incentive and during its operation only one loan was written from Hunter Water’s loan pool.

Compliance and Performance Report 2013-14 | 40 3.4 Proposed Water Conservation Projects 2014-15

Hunter Water proposes refocussing its residential water efficiency projects on customer education programs to improve water efficiency behaviours and assisting customers experiencing hardship to purchase water efficient products to help manage their water bills. Hunter Water’s main residential water efficiency projects in 2014-15 are:

1. Community education and awareness,

2. Showerhead exchanges, and

3. Water efficient washing machines for customers experiencing hardship.

3.4.1 Community Education and Awareness Programs

In 2014-15 Hunter Water will continue its community education and awareness program that includes a dedicated water efficiency section of the website, outdoor spring gardening program, water wise collateral for events and school visits.

The new school education program will be piloted with five teachers in late 2014 and the program will be launched in the 2015 school year.

It is difficult to quantify the water savings from these initiatives.

3.4.2 Household Appliance Replacement Incentives

Showerhead Exchanges

Hunter Water’s showerhead exchange program has run since 2010 and exchanged over 12,000 showerheads. The demand for the program is declining and 2014-15 will be the last year of the program.

Customers are able to exchange their existing showerheads for a free standard low flow showerhead or a premium low flow showerhead at a subsidised cost of $50. In 2014-15 this will involve ongoing availability of low flow showerheads at Hunter Water’s Customer Service Centres and participating council libraries.

In 2014-15 it is estimated that 1200 showerheads will be exchanged, saving 12 ML per year of water.

Further information on Showerhead Exchange is available at http://www.hunterwater.com.au/Save- Water/Save-Water-Initiatives/Showerhead-Exchange.aspx

Hunter Region No Interest Loans Scheme – Water Efficient Washing Machines

In 2014-15 Hunter Water intends to continue partnering with Ausgrid's Appliance Assist program and HRNILS to assist customers on a limited income to purchase a new water efficient washing machine.

This program was re-launched in May 2013 and will continue in 2014-15. Water savings are expected to be approximately 1ML/year.

Compliance and Performance Report 2013-14 | 41 3.5 Water Sources in the Lower Hunter

The Lower Hunter’s water supply meets the needs of over half-a-million people from the local government areas of Newcastle, Lake Macquarie, Maitland, Cessnock, Port Stephens, Dungog and small parts of Singleton.

Drinking water is drawn from a combination of surface water and groundwater resources. The major water sources are shown in Figure 3.2 and the capacity of each source is provided in Table 3.3.

Figure 3.2 Major Water Sources

Table 3.3 Capacity of Existing Water Sources Water Source Maximum Capacity (ML) Chichester 18,356 Grahamstown 182,305 Tomago 60,000 Anna Bay 16,024 Total Storage 276,685

Compliance and Performance Report 2013-14 | 42 3.5.1 Chichester Dam

Chichester Dam is one of the Hunter’s most important freshwater storages. The dam contributes about 38 per cent of the Lower Hunter’s drinking water supply. The water in Chichester Dam mainly comes from the Barrington Tops National Park.

Water from Chichester Dam is treated at Dungog Water Treatment Plant and around 70 ML/d on average is used by customers in Dungog, Maitland, Cessnock, Newcastle and Lake Macquarie. Around 14 ML of water per day is released from the dam as environmental flows that serve to maintain downstream river flow and keep the river healthy. Chichester Dam is relatively small compared to the catchment area so water also flows over the spillway when the dam is full.

Water released from Chichester Dam flows down the Chichester River, joins the Williams River at Bandon Grove and continues its journey downstream to Seaham Weir.

3.5.2 Grahamstown Dam

Water is pumped from the Seaham Weir pool on the Williams River to Grahamstown Dam.

Grahamstown Dam also collects about half of its water from run-off from its local catchment and via rain on its surface. The dam is shallow with a large surface area so it can deplete very rapidly. It is about seven metres deep and has a large surface area. In a hot dry summer, Grahamstown Dam can lose as much in evaporation as it supplies to meet customer demands (about 200 ML/d).

Water from Grahamstown Dam is treated at Grahamstown Water Treatment Plant and supplies Newcastle, Lake Macquarie and Port Stephens, providing about 52 per cent of the region’s drinking water requirements.

Grahamstown Water Treatment Plant can also treat groundwater from the Tomago aquifer. The Tomago aquifer is often referred to as the Tomago Sandbeds because the aquifer is coastal sand rather than hard rock.

3.5.3 Tomago Sandbeds

The Tomago Sandbeds is the major groundwater source, providing about seven per cent of the Lower Hunter’s drinking water. The Tomago Sandbeds also have a large surface area and a relatively shallow water table. The water is generally less than five metres below ground level. Natural losses of water occur via seepage through the sand, direct evaporation, as well as evapo-transpiration through plants using the water to survive.

The majority of the Tomago Sandbeds is a State Conservation Area.. Pumping drinking water from the Sandbeds has to stop when the water drops to low levels. This ensures that vegetation can continue to access water and support sensitive ecosystems.

3.5.4 Small Water Sources

The Lower Hunter also uses small groundwater sources on the Tomaree Peninsula known as the Tomaree Sandbeds. It is used for localised water supply at relatively low volumes compared with the overall system supply requirements.

The Allyn River and Paterson River provide localised water for treatment and use in the small township of Gresford. While water from the Allyn River is used most of the time, pumping stops when flows are low and farmers and the environment have priority to use the limited water available. At these times drinking water is supplied from the Paterson River via Lostock Dam (which is owned and managed by State Water, on behalf of the NSW government).

Compliance and Performance Report 2013-14 | 43 3.6 Reliable Quantity of Water Available from Existing Storages (yield)

The Metropolitan Water Directorate led a whole-of-government approach to developing the Lower Hunter Water Plan (LHWP). Providing water security during drought and reliable water supplies to meet the needs of a growing population and business activity were driving factors in developing the new water plan for the region.

As part of the planning process a new definition of ‘yield’ was developed. This is the maximum reliable quantity of water that can be derived from one year to the next, from existing water storages, taking into account all relevant factors.

The volume of water that can reliably be supplied each year in the Lower Hunter is calculated by modelling how the water storages behave under different climatic conditions over the long term. The mathematical model takes into account the existing water supply system, operating rules, and forecast water demand. The model is also used to calculate how much water the storages can supply each year on average for agreed service levels.

3.6.1 Service Levels for Drought Security (Definition of ‘Yield’)

In preparing for drought, water planners must balance the community’s needs against the cost of additional sources of water which may only be needed occasionally. The social and environmental costs must be considered as well as the financial costs.

For many drought situations, water restrictions may be a cost-effective approach to provide short-term protection against running out of water. The community’s acceptance of restrictions is an important consideration.

Water planners therefore design water supply systems to meet agreed drought security service levels. These are designed to minimise the risk of running out of water during droughts, and set limits on how often (frequency) and for how long (duration) the community experiences drought water restrictions.

A benchmarking study for the Metropolitan Water Directorate has concluded that the Australian water industry does not have a consistent standard for drought security levels of service. Following from this study, the service levels set for the LHWP are:

 The average frequency of drought restrictions is not more than once every 10 years on average  The average duration of drought restrictions is not more than five per cent of the time, and  The chance of water storages approaching empty (defined as 10 per cent total storage level) is not more than once in 10,000 years. These service levels were used to estimate how much water Hunter Water sources can supply over the long term.

3.6.2 Lower Hunter Yield

The modelling indicates that the Lower Hunter storages can currently supply an average of 75 billion litres of water each year, which is enough to cater for growth for around the next 20 years.

The Metropolitan Water Directorate commissioned a peer review of Hunter Water’s water supply source model and use of the model to calculate yield. The review found the “method for Yield estimation is reasonable and reflects current practice in various jurisdictions”.

Compliance and Performance Report 2013-14 | 44 3.7 Factors Affecting Yield

3.7.1 Water Storage Performance in Drought

The region’s existing water sources perform well in average conditions. However, while the Lower Hunter has enough water to meet the average needs of the growing region in the short to medium term, we also need to plan for periods of drought.

The impact of drought on the region’s water supply is shown in Figure 3.3 where significant droughts occurred in the 1900s, 1940s, 1960s, 1980s and 1990s. Strategies to improve water reliability at these times included water restrictions, new sources of supply, and user pays pricing to reduce demand. The region was fortunate to escape the worst of the drought in the 2000s, which impacted most of New South Wales. This was due to a series of ‘east coast lows’ which delivered significant rainfall that replenished storages. However, Hunter storages can drop rapidly during a drought as they are generally small or shallow, and experience significant natural losses from evaporation.

Figure 3.3 Simulated Water Storage Levels in the Lower Hunter

Note: Based on historic climate, current demand and current water storages

3.7.2 Climatic Data, Trends and Projections

Climate and rainfall within the Lower Hunter are highly variable and the impacts of future climate change are still unclear. Hunter Water has been involved in a number research projects related to the potential impact of climate change on rainfall and runoff and how that may affect future water security for the metropolitan regions of NSW. These projects include:

NSW and ACT Regional Climate Model (NARCliM) Project

This project is being led by the Office of Environment and Heritage (OEH) and will develop a regional climate model for NSW and ACT and produce fine scale (10km x 10km) climate projections for use in planning and adapting for climate change impacts at a local scale. The NARCLiM project is nearing completion, with preliminary results now being made available to the project funding partners, including Hunter Water.

Compliance and Performance Report 2013-14 | 45 Eastern Seaboard Climate Change Initiative (ESCCI) – East Coast Lows (ECL) Project Five – Influence of ECLs on the Security of Coastal NSW

The Lower Hunter region was fortunate to escape the 2000s drought experienced in Sydney, the Central Coast and much of Eastern Australia due to the occurrence of weather events known as East Coast Lows (ECLs) that generally bring rain. The Lower Hunter catchments had rain events that were missed by other water supply catchments to the north, west and south.

Without the contribution from ECLs, the Lower Hunter dams would have dropped significantly during the 2000s drought in parallel with the steady declines in water storage seen elsewhere across the state, including Sydney and the Central Coast. Instead the Hunter dams stayed relatively full throughout the event.

The Bureau of Meteorology has indicated that there is insufficient knowledge about the occurrence of ECLs for them to be relied on in drought planning. The ESCCI ECL project aims to better understand the behaviour of the ECL weather patterns as well as how climate change may change its behaviour in future years.

Sub-project five aims to better understand the hydrologic importance of ECLs and related weather systems for water supply to major storages and is therefore of interest to water supply management for the Hunter region.

3.7.3 Supply to and/or From Areas Outside the Area of Operations

In 2006, when the Central Coast was in a severe drought situation with storages at record lows, Hunter Water entered into a supply agreement to construct a new strategic pipeline link inter-connecting the Hunter and Central Coast water supply systems. This agreement defines the relative storage conditions under which either party can request water from the other. Water transfers may also occur for operational reasons and/or to maintain water quality in the transfer main.

3.7.4 Constraints on Extraction of Water Due to Water Management Legislation

Hunter Water’s water extraction is the subject of licences and approvals under the Water Management Act 2000 and conditions in the relevant water sharing plans.

Chichester Dam and Seaham Weir (on the Williams River) have conditions called ‘environmental flow rules’ that aim to help protect aquatic health by providing a share of water for the downstream environment. During development of the LHWP a multi-agency group developed improved environmental flow rules for Chichester Dam and Seaham Weir. New structures and control strategies to give effect to the new rules are currently being investigated.

Compliance and Performance Report 2013-14 | 46 4 ASSETS

4.1 Introduction

Chapter four provides an overview of Hunter Water’s Asset Management System. It reports on the asset management programs and activities completed by Hunter Water in 2013-14 and the results and outcomes of these activities. Furthermore, it reports on the proposed programs and activities for 2014-15. The chapter also reports on asset management system failures, rectification of those failures and proposed significant changes.

4.2 Overview of Hunter Water’s Asset Management System

For more than 120 years Hunter Water has been providing the community with water supply, wastewater collection and treatment, and stormwater services. Delivering these services requires management of a large portfolio of physical assets. Hunter Water’s physical assets comprise multiple water and wastewater systems that are important in ensuring delivery of effective, efficient, high quality services.

The objective of the asset management system is to ensure Hunter Water has in place the framework, processes, procedures, and resources to continually improve and effectively manage physical assets to support the business in meeting its corporate objectives.

In accordance with the Operating Licence, Hunter Water has used the Water Services Association of Australia’s Aquamark benchmarking tool to maintain and improve its asset management system. Aquamark provides independent assurance to Hunter Water that asset management is carried out to an appropriate quality and assists in identifying areas for improvement. Aquamark benchmarking is undertaken by many water and wastewater utilities on a four year cycle. In 2012, 37 organisations, including Hunter Water, took part in the benchmarking exercise. The findings of Aquamark (2012) were positive for Hunter Water, with identified asset management strengths in many areas. Particularly strong results were observed in corporate policy and business planning, asset capability forward planning, and asset replacement and rehabilitation functions. A summary of Aquamark results is shown in Figure 4.1.

Aquamark (2012) defines seven core functions of the asset management lifecycle against which it assesses utility performance:

1. Corporate policy and business planning

2. Forward capability planning of assets

3. Asset creation and acquisition

4. Asset operations

5. Asset maintenance

6. Asset renewal & disposal

7. Business support systems

Hunter Water performed at or above the median utility performance in six of the seven Aquamark functions. The performance is shown in Figure 4.1.

Compliance and Performance Report 2013-14 | 47 Figure 4.1 Aquamark Functional Comparison of Hunter Water with Overall Benchmarking Group

Hunter Water’s asset management strengths identified in Aquamark (2012) include:

 Growth mapping project The project reconciles differing growth/development projections from developers, Councils and others with Hunter Water’s data of actual development connections and service demands.

 Capital prioritisation process Hunter Water has aligned its capital prioritisation processes using a Program Management Office model developed in the United Kingdom.

 Asset creation knowledge flagship The knowledge flagship has been completed and was designed to provide a forum for consistent and proactive development of knowledge based systems associated with asset creation at Hunter Water.

 Burwood Beach project This environmental science project incorporates site specific analysis to understand the impacts of operations relating to human and environmental risks.

 Treatment Alliance This alliance model was implemented across 10 brownfield treatment plant upgrades to meet specific time, cost and quality outcomes.

 Rising main risk model and watermain replacement analysis These models provide a basis for segmented risk analysis for water mains and rising mains.

Compliance and Performance Report 2013-14 | 48  Energy management program This program was designed to optimise energy use in Hunter Water and reduce greenhouse gas emissions.

 Asset Management Framework Hunter Water is building a consistent documented framework for asset management across the business.

Assessment of organisational performance of these functions resulted in recommendations for improvement. Five priority improvement initiatives for Hunter Water were identified in Aquamark (2012):

1. “To align organisational asset management capability with asset management objectives”

2. “Business cases need rigorous challenging to confirm their ability to meet business objectives and investment requirements”

3. “Holistic and consistent approach to maintenance management”

4. “Proactive and holistic approach to management and operation of critical assets for both planning of service improvement/reliability and contingency planning”

5. “Operations and maintenance (O&M) procedures review and updating to reflect current business objectives and manage risk, including configuration documentation where warranted”

Hunter Water made many improvements to address these opportunities during 2013-14, and will continue to address further opportunities for improvement in 2014-15.

4.3 Asset Management Activities and Programs 2013-14

In 2013-14, Hunter Water has been committed to addressing the recommendations of Aquamark (2012) and further work is scheduled for 2014-15. The remainder of chapter four describes Hunter Water’s response to each improvement recommendation.

4.3.1 Initiative 1 – Alignment of Capability with Objectives

Hunter Water has developed and commenced implementation of strategic programs targeted towards improving the corporate asset management capability. These programs include transition to a corporate asset management system (ISO 55001), implementation of an integrated compliance management system, divisional and functional restructures, optimised contract market testing and redevelopment of applications, information and reporting.

Hunter Water has reviewed and committed to proceed with the transition to a corporate asset management system that is consistent with the recently released ISO 55001. This development will involve transitioning from the WSAA Aquamark framework to ISO 55001 by July 2017, with the initial phase being the completion of a gap analysis between the two systems during 2014-15.

The implementation of ISO 55001 will complement the implementation of an Integrated Quality Management System (IQMS) currently underway, which combines the quality, environmental and safety management systems. Hunter Water received certification for the Work Health and Safety Management System in December 2013 and will undertake certification audits for both the environmental and quality management systems in 2014-15.

Since 2012, Hunter Water has implemented a significant restructure consistent with the Aquamark Asset Management framework, being a consolidation of all engineering activities within a single division overseen by a Chief Operating Officer. Within this division, group structures align with the key asset management

Compliance and Performance Report 2013-14 | 49 functions of Planning, Infrastructure Delivery (creation), System Operations, Maintenance Services and Asset Management.

Hunter Water market-tested the treatment plant operations and maintenance in 2013-14, with the contract awarded to Veolia in June 2014. This contract has been developed to align the treatment plant operational and maintenance activities with the business objectives.

Asset information improvements are being implemented to identify and assess asset performance, through the initial asset information creation to the capture of asset maintenance activities and costs. These processes are being documented and improved through the Ellipse 8 Upgrade project, with the implementation scheduled for 2014-15.

Results and Outcomes

These structural and reporting changes have been implemented and will provide the base for continued development of the asset management system.

4.3.2 Initiative 2 – Rigorous Challenging of Business Cases

This recommended improvement initiative from Aquamark (2012) relates to the processes in place to challenge business cases and their effectiveness. The deficiency identified by Hunter Water in the Aquamark (2012) survey was the low utilisation of a technical advisory group process and limited peer review beyond the project team and immediate superiors.

This recommendation has been completed through:

 Bringing forward development of business cases to the project initiation stage of the gateway process,  Reviewing and approving business cases by the Expenditure Review Committee (ERC), and  Establishment of a value management process as part of the Asset Creation Quality Management System. These changes are described in detail below:

The development and approval of a standalone preliminary business case at project initiation stage (Gateway 1) increases the rigour of entry of projects into the capital portfolio. The purpose of the preliminary business case is to demonstrate the need for the project and the pathway proposed for advancing the business case.

The ERC was established in September 2012 to provide oversight of and make decisions on all major financial commitments and undertakings to protect and improve the financial viability of Hunter Water. The membership of the ERC includes the Managing Director, Chief Finance Officer, Chief Operating Officer and a number of other senior Managers from across the business. As part of its role, the ERC reviews business cases and allocates associated financial resources for capital investment decisions of $100,000 or more.

In April 2013 an integrated value management process was implemented into the Asset Creation Quality Management System. At the business case development stage, the focus of the integrated value management process is to peer review and challenge the project process and assumptions. In 2013-14, the value management approach was extended to corporate activities including information and communication technology.

In combination, the three changes discussed above have addressed the recommended initiative to improve the rigour of the business case process.

Results and Outcomes

The frameworks and changes have been well utilised resulting in high compliance and improved quality of business cases.

Compliance and Performance Report 2013-14 | 50 4.3.3 Initiative 3 – Consistent Approach to Maintenance Management

This recommended improvement initiative from Aquamark (2012) relates to inconsistent processes between the civil maintenance group and the mechanical and electrical maintenance group.

Hunter Water is implementing initiatives to ensure a more effective and efficient maintenance management program including, restructure of resources within a centralised maintenance delivery group, transfer of all maintenance activities to the corporate Enterprise Resource Planning (ERP) system, centralised control centre and dispatch service and an integrated management system (work practices) for quality, environment and safety.

As outlined in initiative 1 above, Hunter Water’s organisational structure was modified to incorporate a combined maintenance services team across civil, mechanical and electrical maintenance. Simultaneously, Hunter Water’s asset management team was restructured and is now consistent across the civil, structural, mechanical, and electrical engineering disciplines.

Hunter Water is implementing an Ellipse 8 Upgrade and Civil/Mobility Improvement program which involves upgrading the ERP application (Ellipse) and transferring the current Civil Maintenance (AOMS) to Ellipse. This project will enable all maintenance to be specified, allocated, implemented and finalised within one application, enabling consistent development and implementation of maintenance work practices.

The centralised application also enables the creation of a centralised operational control centre and maintenance dispatch function. This centralisation will enable consistency in maintenance management processes and implementation of appropriate work practices.

Hunter Water is also implementing an IQMS, which involves integrating the Quality, Environmental and Safety Management Systems into common processes. The outcome for maintenance is that all work practices (including Safe Work Method Statements, standards and work instructions) are being updated to be accurate, relevant and consistent.

Results and Outcomes

These organisational and system changes are helping improve consistency of maintenance management including specification, planning and delivery across the organisation.

Visibility of asset performance within different areas across the business and engineering disciplines has improved with the introduction of the maintenance and asset management review process.

4.3.4 Initiative 4 - Consistent Approach to Management and Operation of Critical Assets

Hunter Water is implementing initiatives to effectively manage all critical assets. Hunter Water has undertaken an assessment of all water, wastewater and stormwater assets and identified assets which may incur a high or extreme consequence should they fail. These assets have been identified as critical and are being proactively managed through the following programs.

 Assessment of those assets that are subject to statutory safety and environmental compliance obligations including legislation, standards and codes of practice. These assets have been incorporated into the statutory asset program and include dams, electrical, hazardous chemicals, lifting equipment (cranes), pressure vessels and guarding.  Implementation of procedures to manage operational change (incorporates assessment and approval of asset maintenance and modifications) as well as emergency management to manage failures including contingency plans, incident management and incident investigations. These processes are progressively being implemented for critical wastewater pump stations and rising mains through 2014.  Implementing condition assessment, developing condition monitoring, implementing preventive maintenance, undertaking asset failure analyses and developing business cases for critical asset improvements. The implementation of these programs in 2013-14 has focussed on dams, treatment plants and electrical assets with further improvements planned for 2014-15.

Compliance and Performance Report 2013-14 | 51 Results and Outcomes

Hunter Water has completed preliminary criticality assessments for assets relating to raw water, water treatment, water network, stormwater, wastewater network, and wastewater treatment with more detailed assessments planned for wastewater pump stations in 2014-15.

Using asset criticality information in decision-making processes within the business will enable Hunter Water to improve its asset lifecycle management.

4.3.5 Initiative 5 - Operations and Maintenance Procedures Review and Updating

This recommended improvement initiative from Aquamark (2012) relates to comprehensively documenting and refreshing operating and maintenance procedures throughout the organisation.

Hunter Water is implementing an IQMS that incorporates combining the quality, environmental and safety management system requirements into a common process.

In 2013-14, both the operational and maintenance work practices have been updated into the IQMS templates incorporating operational change, contingency plans and maintenance work practices which include safe work methods statements (SWMS), work instructions and site risk assessments.

Hunter Water also conducted a major review of work practices and procedures for electrical safety which have been incorporated into the Electrical Safety Management System.

Results and Outcomes

Hunter Water is progressively updating operational and maintenance work practices and procedures in accordance with the IQMS requirements, with the key areas completed in 2013-14 being electrical safety, treatment plant operation protocols, environmental sampling procedures and updated Chichester trunk gravity main and catchment inspection procedures.

4.4 Asset Management System Issues and Actions Taken

Continuous improvement is an important aspect of Hunter Water’s asset management system. The Aquamark (2012) assessment found that in six out of seven functional areas of asset management, Hunter Water’s performance was equal to or exceeding the median performance of other utilities.

Hunter Water’s lower score in “business support systems” was primarily due to underperformance of asset equipment register (Asset Information), maintenance management system, asset condition and likelihood of failure information and system renewal planning and forecasting. The lower score for business support systems was also attributed to system interconnectivity, usability, standard reporting, and user documentation and support.

As outlined in Initiative 3 (section 4.3.3), Hunter Water is currently upgrading the ERP application to the Ellipse 8 version, and will transition the civil maintenance functionality into Ellipse 8 through 2014-15. This project will also incorporate data cleansing (asset information update and capture), and the development of a preliminary asset renewal in the maintenance management based on value and nominal/forecast remaining life system.

Compliance and Performance Report 2013-14 | 52 4.5 Proposed Asset Management Activities and Programs 2014-15

Significant work was undertaken in 2013-14 to continue to address the improvement initiatives recommended by Aquamark (2012). Further work is required to fully address the recommendations prior to the next Aquamark benchmarking exercise, which is expected to occur in 2016. Some of the activities relating to Aquamark (2012) recommendations that are to be progressed further during 2014-15 include:

 Alignment of organisational asset management capability with asset management objectives. Hunter Water is continually improving its asset management system and will begin the transition of its asset management system to be consistent with ISO 55001.  Continued rigour around the assessment and justification of new business cases to ensure maximum value for money and appropriate investment decisions both within the approved capital and operating budget of the 2013-16 price path and for preparation of the future 2016-2020 price path submission.  Complete the ERP upgrade currently underway. This is a major component of Hunter Water’s improvement program for asset management business support systems.  Continued review and update of the asset criticality assessments, with a focus on wastewater pump stations.  Further implementation of the operational and engineering change for critical assets. 4.6 Proposed Significant Changes to the Asset Management System

Hunter Water committed to redeveloping its asset management processes into a system consistent with the international standard ISO 55001 Asset Management. Hunter Water has notified IPART of the proposed changes which involves being consistent to the ISO 55001 by July 2017. A program has been developed with a gap analysis between Aquamark and ISO 55001 planned to be completed in 2014-15.

As described earlier, Hunter Water is undertaking the IQMS project to achieve certification of its quality, safety and environmental management systems. A focus of the IQMS is to create consistency of management systems across Hunter Water. ISO 55001 will be developed through integration with the IQMS project.

Redevelopment of Hunter Water’s asset management system will be a major body of work. Redevelopment of the system is planned to be progressed over the next three years with the goal of completion in 2016-17.

Compliance and Performance Report 2013-14 | 53 5 CUSTOMERS AND CONSUMERS

5.1 Introduction

Chapter five provides an overview of Hunter Water’s customer and consumer performance in 2013-14. It reports on the Community Consultative Forum (Forum) matters arising, activities and achievements. Furthermore, the chapter addresses complaints and performance, systematic problems arising from complaints and actions taken to resolve these. The chapter also reports on proposed significant changes.

5.2 The Role of the Consultative Forum

Hunter Water’s Operating Licence requires Hunter Water to establish and consult with a Consultative Forum to enable community involvement in issues relevant to Hunter Water’s performance under the Operating Licence.

The Forum is an advisory body, whose role is to provide advice and feedback on appropriate matters. Hunter Water may use the Forum to provide advice on customer and consumer interests relating to the Customer Contract and other key issues relating to Hunter Water’s planning and operations.

Hunter Water is required to develop and maintain a Forum Charter that addresses, amongst other issues, the role of the Forum. A new charter was developed and approved by the Board and Forum members in 2012 and was further updated and approved by the Board in 2013.

The Charter states the objectives of the Forum are to:  Seek wider consultation with the Lower Hunter community on emerging operational issues,  Disseminate information to the general public on Hunter Water’s efforts at improving water supply and wastewater service delivery,  Review consultation strategies, programs and activities being undertaken and/or proposed,  Promote stakeholder engagement in decision making, and  To make recommendations to management in relation to above, as appropriate. The Forum meets three times per year and is chaired by Hunter Water. The current committee members are listed in Table 5.1.

Table 5.1 Community Consultative Forum Members Representative Organisation Representative Category Rod Doherty Cessnock City Council Local Government Harold Johnston Dungog Shire Council Local Government Anita Hugo Hunter Business Chamber Business and Consumer Ingrid Berthold Hunter Central Rivers Catchment Management Environmental Authority Kevin McDonald Hunter Region Botanic Gardens Environmental Ken Paxinos Lake Macquarie City Council Local Government William Lennox Maitland Masonic Centre Residential Customers David Compton Newcastle City Council Local Government Joan Lambert Newcastle Older Women’s Network Older People Carol Pasenow No Tillegra Dam Group Environmental Geoff Dingle Port Stephens Shire Council Local Government Rick Banyard Property Owners Association Business and Consumer Groups Linda Bowden Save the Williams River Coalition Environmental Carolyn Gillard Wetlands Environmental Education Centre Environmental James Hopson Williams Water Users Association People Living in Rural or Fringe Areas

Compliance and Performance Report 2013-14 | 54 5.3 Consultative Forum Activities and Achievements 2013-14

In 2013-14, the Forum considered self-generated topics of interest to members in addition to issues raised by Hunter Water. In accordance with the Charter, matters were raised either for information or to receive the feedback from members. It should be noted that the matters raised were relevant to the time of the question and further progress and/or changes may have resulted since this time.

5.3.1 Key Matters Raised in 2013-14

Campvale Canal water quality

Stormwater runoff from Medowie enters Grahamstown Dam from Campvale Canal. Hunter Water is seeking to maintain the quality of water entering Grahamstown Dam, while facing increasing development in Medowie. Hunter Water is commissioning a quantitative health risk assessment to confirm pathogen loading of water from Campvale Canal.

Links between recreational boating and Williams River bank erosion

Erosion, which affects the Williams River at a rate of up to 0.25metres/year, releases compounds containing phosphorus that contribute to algae blooms in waterways. Erosion can be caused by cattle accessing the river, waves caused by boats, fluctuating water levels and lack of a riparian zone. Hunter Water is commissioning a study to determine specific actions that would achieve positive water quality outcomes.

Cleaning up Throsby Creek

A Forum member raised concerns about the health and amenity of Throsby Creek. Hunter Water is now more regularly inspecting the creek and removing debris, and is working with the local Member of Parliament to encourage supermarkets to address the problem of shopping trolleys entering the creek.

The Lower Hunter Water Plan

The LHWP was developed by the Metropolitan Water Directorate in close consultation with Hunter Water, government agencies, stakeholders and the community. The Metropolitan Water Directorate responded to Forum questions on issues including desalination, water transfers between the Hunter and Central Coast and potential use of Lostock Dam. Member feedback included support for recycled water and that the community engagement process was positive.

The Tillegra Land Use and Management Plan

The Plan, developed by consultants AECOM, identifies potential future land uses for Hunter Water’s landholdings in the Williams River Valley. Prior to public exhibition, AECOM presented to the Forum on the process undertaken to develop the Plan, options and recommendations.

Forum members commented that this project represents an important one-off opportunity to establish green corridors and protect drinking water catchment areas.

Fencing the Williams River riparian zone

An opportunity identified in the Tillegra Land Use and Management Plan was fencing the Williams River riparian zone. Forum members contributed local knowledge, suggested issues, and requested further detail on areas including flood paths, natural land formations, weed control, maintenance and the need for shade and stock watering.

Burwood Beach WWTW Stage 3 planning process

Hunter Water is developing a long-term plan to ensure Burwood Beach WWTW is able to continue meeting the needs of our community until 2040. Hunter Water gave detailed presentations to the Forum on the development and implementation of this major project.

Compliance and Performance Report 2013-14 | 55 Water Efficiency Implementation Plan

The Forum heard that the greatest potential for gains in water efficiency is with major commercial customers. Hunter Water is subsidising water audits to help organisations build business cases for water efficiency programs; has the Hunter Business Water Saver’s Program; and is developing an education centre for schools and the public.

Implementation of Water Wise Rules

The Forum was presented with Hunter Water’s draft Water Wise Rules and provided feedback and recommendations.

Fire escape routes in the Tomaree National Park, Port Stephens

Following a serious bushfire, the public accessibility of an unsealed road used by Hunter Water became an issue of local community interest. The land is owned by the NSW National Parks and Wildlife Service and Hunter Water uses the road to access borefields and infrastructure at the Tomaree Sandbeds, an important groundwater source. Hunter Water confirmed it has no objection to emergency vehicles using the road as a fire trail during emergencies, however, it will not support access by the general public due to risks of public safety and potential contamination of the groundwater.

5.3.2 Achievements in 2013-14

Forum Charter Updated

The Conflict of Interest section of the Forum Charter was reworded to ensure that potential Forum member organisations, which may be eligible for Hunter Water’s grants and sponsorship programs, are not discouraged from applying for Forum membership.

Availability of Forum Minutes

A new process of Forum members approving minutes via email was developed to facilitate making Forum minutes publicly available on Hunter Water’s website in a timelier manner, . This process enables draft Forum minutes to be publically available on the website within 4 weeks, rather than waiting for the minutes to be accepted at the subsequent Forum meeting three months hence.

Community venues

Following previous positive feedback, all three meetings for the 2013-14 period were held at community venues linked to Hunter Water in some way, giving Forum members the opportunity to learn more about Hunter Water’s programs or history. These were:

 Hunter Region Botanic Gardens – which, from 1985, has leased from Hunter Water 140 hectares of land at Tomago Sandbeds to provide a valuable not-for-profit tourism and educational facility;  Hunter Sports Centre – which is the site of a three year study, funded by Hunter Water, to reduce water use and improve the health and playing surface of sporting grounds.  Walka Water Works – which was built in 1887 and stored and supplied water to many suburbs prior to the Chichester Dam coming online in 1923.

Compliance and Performance Report 2013-14 | 56 5.4 Customer Complaints

Hunter Water defines a complaint to be an “expression of dissatisfaction made to an organisation, related to its products, or the complaints-handling process itself, where a response or resolution is explicitly or implicitly expected.” (AS ISO 10002-2006)

This definition is consistent with Australian Standards and the National Performance Framework 2013-14 Urban Performance Reporting Indicators and Definitions Handbook (hereafter referred to as the Handbook).

5.4.1 Performance

This section provides an overview of Hunter Water’s complaint performance, by analysis and reporting against various complaint categories. The complaint categories reported are consistent with the Handbook. These indicators are used as part of the National Water Initiative (NWI) and are referred to as NWI Indicators (see Table 7.3 for a complete set of indicators and results).

Over the last few years, Hunter Water’s customer complaint performance relative to other major water utilities has been affected by differing definition interpretation and application, however appointed auditors across Australia have found the various approaches to be compliant.

In 2013-14 Hunter Water reviewed its application of the definition of a complaint, with the intention of achieving consistency with Sydney Water and other utilities in the cohort, whilst remaining compliant with IPART’s requirements. The revised complaint recording, resolution and reporting methodology has been reviewed by a qualified external auditor and has been applied to 2013-14 data. Complaints are now only reported where Hunter Water is at fault. This has contributed to performance improvement trends across a number of indicators.

Total Water and Sewerage Complaints

Total water and sewerage complaints related to:

 Water quality  Water pressure  Water continuity  Sewage overflow  Sewage odour  Drainage  Billing The NWI Indicator for total water and sewerage complaints was recorded as 5.96 per 1,000 properties for 2013-14. The NWI Indicator also includes customer service and drainage complaints in the calculation. Total water and sewerage complaints performance since 2007 is shown in Figure 5.1. This shows a 15 per cent decrease in total complaints recorded for 2013-14 compared to 2012-13.

The drivers are discussed in detail in the performance commentary and analysis that follows for each complaint category.

Compliance and Performance Report 2013-14 | 57 Figure 5.1 Total Water and Sewerage Complaints by Year

Compliance and Performance Report 2013-14 | 58 Water Quality Complaints

Water quality contacts are complaints relating to issues with the quality of water received such as colour, taste and odour. Escalated water quality complaints are those requiring further investigation and resolution by Hunter Water’s Customer Care and Complaints Team.

There were a total of 794 contacts and escalated complaints in 2013-14, consisting of 79 per cent related to dirty water and 21 per cent related to taste and odour. The total water quality complaint rate for 2013-14 was 3.3 per 1,000 properties. Figure 5.2 shows performance since 2007.

Figure 5.2 Water Quality Complaints by Year

The increase in water quality contacts was related to the maintenance completed in August 2013 of a large water main that connects the supply systems of Hunter Water and the Central Coast regions. The frequency of the maintenance program was subsequently reviewed and amended to minimise the customer impact of future maintenance work.

Hunter Water has a regular flushing program in place as part of routine maintenance of mains throughout Hunter Water’s system to minimise dirty water complaints.

Compliance and Performance Report 2013-14 | 59 Water Service Complaints

Water service complaints relate to the continuity or pressure of water service to a property. Water pressure issues are recognised where a customer is receiving less than 20m pressure (defined in the Operating Licence as a Water Pressure Failure), or where a customer starts to receive lower pressure than normally experienced.

Water continuity issues are experienced by customers when there is a failure of a water main or a water pump station (WPS).

The total water service complaint rate for 2013-14 was 0.07 per 1,000 properties, a 69 per cent decrease from the previous year, as shown in Figure 5.3.

The main driver behind the decrease in complaints is attributed to the seasonal weather variations experienced during 2013-14, which contributed to 30% of the reduction, with 70% resulting from the introduction of IPART customer complaint resolution indicators in line with NWI indicators.

Figure 5.3 Water Service Complaints by Year

Compliance and Performance Report 2013-14 | 60 Sewerage Service Complaints

The total sewerage service complaint rate for 2013-14 was 0.77 per 1,000 properties. Figure 5.4 provides an overview of performance since 2007.

Overall, complaints related to sewerage service (overflow and odour complaints) have decreased in comparison to 2012-13 by 49 per cent.

The main driver behind the decrease in complaints is attributed to the seasonal weather variations experienced during 2013-14 which contributed to a 14% reduction, with 35% resulting from the introduction of IPART customer complaint resolution indicators in line with NWI indicators.

Figure 5.4 Sewerage Service Complaints by Year

Compliance and Performance Report 2013-14 | 61 Drainage Complaints

Hunter Water is responsible for approximately 95 kilometres of stormwater carrier system in its area of operations. Over 80 per cent of this system is within the Newcastle Local Government Area.

Performance since 2007-08 is shown in Figure 5.5. The total drainage complaint rate for 2013-14 was 0.03 per 1,000 properties, a decrease of 63 per cent from the previous year. The majority (80 per cent) of the improvement can be attributed to the revised complaint definition interpretation and application. The remainder of the decrease in the number of complaints can be attributed to the continued benefits being realised from the increased scheduled maintenance program implemented in 2011-12 which repaired or removed debris from stormwater assets.

Figure 5.5 Drainage Complaints by Year

Compliance and Performance Report 2013-14 | 62 Customer Billing Complaints

The total billing complaint rate for 2013-14 was 1.8 per 1,000 properties. Figure 5.6 provides an overview of performance since 2007.

Figure 5.6 Billing Complaints by Year

There has been a 20 per cent decrease in billing complaints per 1,000 properties recorded in 2013-14, as shown in Figure 5.6. This is below the previous four year average. The performance improvement also reflects an offset caused by an increase of 26 per cent in disputed consumption complaints.

Hunter Water experienced higher disputed consumption between January and June 2014 compared to the first half of the year. As was the case in previous years, usage increases in summer which in turn increases the bill. However, the increase experienced in 2013-14 summer was greater than previous years due to lower rainfall and hotter conditions.

During 2013-14, Hunter Water introduced a new Account Assistance policy and updated its payment assistance scheme to support household customers in hardship. There has also been an increased focus on credit management actions throughout 2013-14, which has resulted in an increase in restriction action and debt recovery/legal escalation. As a result of the increased credit activity there has been an increase in complaints in these sub-categories.

Compliance and Performance Report 2013-14 | 63 External Complaints

The Operating Licence requires Hunter Water to be a member of an industry-based dispute resolution scheme. Compliance is achieved through the membership established in 2002 with the dispute resolution scheme operated by the Energy and Water Ombudsman of NSW (EWON).

The scheme provides the customer access to an external dispute resolution body, which offers an independent review of complaints. Hunter Water remains committed to the internal complaints management process and considers the services provided by EWON as part of that process. This extra service provides support to those customers who may not be satisfied with the solution offered by Hunter Water.

The details reported included all finalised EWON contacts in relation to Hunter Water issues. The data used is obtained from EWON reports.

The distribution of escalated complaint volumes against the EWON case level differs from previous years with a decrease in higher level cases and an increase in lower level cases. This change has reduced fees charged by the EWON as a result of more efficient customer response methods achieved from clearly defined roles and responsibilities and processes and procedures being in place. Figure 5.7 presents information and trending of EWON complaint data.

Figure 5.7 Year Comparison of EWON Cases Closed by Level

Compliance and Performance Report 2013-14 | 64

EWON Terms Definition General Enquiry A customer contact about an energy or water matter that is not a complaint. General Enquiries also include matters that are non-energy and water complaints – that is, they are enquiries about areas unrelated to our jurisdiction e.g. Telecommunications. Complaint Enquiry A request for information or assistance about an energy or water matter that can be settled or referred quickly. Complaint enquiries also include energy and water complaints that are outside of EWON’s jurisdiction e.g. Complaints about private electrical contractors, plumbers, LPG, water providers who are not part of the EWON Scheme etc. Complaint enquiries include those contact where:  The customer has not contact you to discuss their complaint, we record their details and refer back them back to you.  We provide general information and no further action is required (e.g. Customer query about an approved charged).  We provide appropriate referrals to relevant agencies (e.g. EAPA providers). Refer to Higher Level An RHL (Refer to Higher Level) is a customer complaint that has been referred to the nominated member contact to resolve a higher level. Customers are invited to contact EWON again if the member contact is not in touch within two business days of the referral or if they are not satisfied with the outcome. Level 1 A level 1 investigation is a customer complaint that EWON is investigating independently. Level 1 investigations generally:  Require collection and clarification of information to assist our investigations.  Involve several contacts with the customer and with you.  May need to be dealt with urgently – e.g. an impending or completed disconnection or restriction (a priority for EWON investigations staff).  Do not take more than 240 minutes to complete. Level 2 Where a resolution has not been reached at Level 1 and we believe further investigation is necessary, we will advise you about an upgrade of the matter from Level 1 to Level 2. A Level 2 investigation will generally require detailed investigation by both EWON and you. Please note that investigations staff must obtain approval from the Deputy Ombudsman or the Assistant Manager Investigations to upgrade a matter to this level. Level 2 investigations generally:  Require significant investigation; research and analysis by EWON staff.  Involve several contacts with customer, you and third parties.  Require a detailed written report for the customer.  Do not take more than 480 minutes to complete. Level 3 A matter will be upgraded from Level 2 to Level 3 if our investigation time exceeds 480 minutes, if we make repeated unsuccessful requests for information from you, if we are unable to negotiate a settlement without expert advice, or if we consider that the complaint merits further investigation. Level 3 investigations generally:  Require significant contribution by senior EWON and member staff.  Involve numerous contacts with the customer, you and third parties.  Require site visits, mediations and other means of dispute resolution, including the commissioning of expert advice.  Necessitate ongoing negotiation. Determination At the completion of an investigation and in the absence of a negotiated/conciliated settlement, the Ombudsman can resolve the complaint. Source: EWON’s Annual Member Levy-Fees 2013-14.

Compliance and Performance Report 2013-14 | 65 5.4.2 Systematic Problems Arising from Complaints and Actions

Hunter Water has developed business improvement strategies for three areas within the complaints management system and process. These are:

 A standard escalation process to assist complaint resolution performance.  Improved internal engagement with subject matter experts to expedite complaint responses.  Improved management reporting including quality root cause analysis to provide an increased focus on complaint resolution and complaint prevention across the business. These are ongoing actions for 2014-15, which are fundamental principles for good complaints management.

5.5 Proposed Significant Changes

5.5.1 The Customer Contract

There are no proposed significant changes to the customer contract for 2014-15.

5.5.2 The Procedure for Payment Difficulties and Actions for Non-Payment

There are no proposed significant changes to the procedure for payment difficulties and actions for non- payment for 2014-15.

5.5.3 The Community Consultative Forum Charter

The current membership period for the Community Consultative Forum expires in late 2014. Hunter Water is undertaking a review of the Forum Charter, including membership, prior to calling for new membership applications and renewal of existing membership. This will ensure the appointment process is as effective as possible and that the most appropriate members are appointed for the next membership period.

5.5.4 The Internal Complaints Handling Procedure

Revised Customer Complaints Handling Guidelines were reviewed and released in November 2013. The guidelines clearly outline the roles and responsibilities relating to receipt, response and resolution of complaints in the most effective and efficient manner. The Guidelines are reviewed annually to comply with any internal and external service conditions.

5.5.5 The External Dispute Resolution Scheme

There are no proposed significant changes to the External Dispute Resolution Scheme in 2014-15.

Compliance and Performance Report 2013-14 | 66 6 ENVIRONMENT

6.1 Introduction

Chapter six provides an overview of Hunter Water’s performance in environmental management. It reports compliance with clause 6 of the Operating Licence and details the activities undertaken by Hunter Water in 2013-14 to maintain programs to manage risks to the environment. Furthermore it reports on performance in meeting the targets and timetables for the 2013-14 reporting year and those proposed for 2014-15. Any proposed significant changes to environment targets or the timetables to achieve the targets are also reported in this chapter.

6.2 Hunter Water Corporation’s Environmental Management System

Clause 6.1.1 of the Operating Licence stipulates that Hunter Water must have a Management System that is consistent with the Australian Standard AS/NZ ISO 14001:2004 Environmental Management Systems – Requirements with guidance for use by 30 June 2017.

Hunter Water has had an Environmental Management System (EMS) in place since 1995. The system has been designed to conform to the requirements of the Australian Standard AS/NZ ISO 14001:2004 however certification of the EMS has not been sought to date. Hunter Water is committed to continual improvement and the EMS is continually reviewed and amended to take into account operational changes, emerging risks and improvements in management approaches.

Hunter Water engaged DNV Certification Pty Ltd (DNV) to provide certification for its EMS. DNV conducted a pre-certification audit at Hunter Water office on 6 June 2014.

The purpose of the EMS pre-certification audit was to provide an assessment of the readiness for the certification audit by determining how Hunter Water's current practices compare to the certification requirements of ISO 14001.

Overall the audit found that the EMS had all the necessary structural elements in general compliance with ISO 14001. The auditor found that the EMS was well developed and identified actions that require completion prior to certification. The certification audit will be held in October 2014.

Following certification of Hunter Water’s EMS, the annual Operating Licence Environment Compliance and Performance Report will be prepared in accordance with clause 6.2.2 of the reporting manual.

6.3 Environmental Management Plan - 2013-2017

The 2013-2017 Environmental Management Plan (EMP) is a key component of Hunter Water’s EMS. The EMP outlines Hunter Water’s environmental objectives and targets to manage risk and drive environmental improvements for the organisation over the period of the 2012-2017 Operating Licence.

Development of the EMP considered:

 Principles and commitments in the Community and Environment Policy and other commitments.  Aspects that were determined through risk assessment and action planning workshops.  Hunter Water’s 2012-2017 Operating Licence.  Wastewater Environmental Protection Licence, Water Management Licence and other applicable legislative requirements.  Hunter Water’s Statement of Corporate Intent.  Financial, operational and organisational considerations.  Internal and external consultation. This chapter reports performance against the eleven goals of the Environmental Management Plan.

Compliance and Performance Report 2013-14 | 67 6.4 Goal 1: Protection of Drinking Water Catchments

Ensuring catchments are protected and managed is an important first step in ensuring a reliable supply of good quality water can be provided to our customers. Effective catchment management ensures community health is protected, provides an important natural asset and reduces treatment costs thereby minimising water prices for Hunter Water's customers. Hunter Water’s Catchment Management Plan is a strategic document which provides a framework for the long term protection of the drinking water catchments. Catchment hazards have been assessed and prioritised. A Catchment Improvement Plan has been prepared which outlines an implementation plan to address the strategic issues identified in the Catchment Management Plan. Hunter Water continues to work with key stakeholders to ensure that vital activities such as weed management, feral animal control, bushfire management, land rehabilitation, and control of illegal dumping and unauthorised access are undertaken within the drinking water catchments.

6.4.1 Actions to Manage Risks

Water Quality Risks and Catchment Management

In January 2011, Hunter Water released the Catchment Management Plan – Hunter Water’s eight element plan for our catchments. The Catchment Management Plan is a strategic document providing a framework for the long term protection of the drinking water catchments.

The Catchment Improvement Plan 2013-2017 (CIP) outlines actions that address the strategic issues identified in the Catchment Management Plan.

Hunter Water recognises the importance of the management of the water supply catchment to ensure ongoing safe and reliable drinking water for its customers. To address the top water quality risks as identified in the Catchment Improvement Plan, Hunter Water:

 Established the Dairy Project Steering Group and development of a partnership with the Department of Primary Industries (DPI) to co-fund a position within DPI with the aim of working with dairy farmers in the Williams River catchment,  Established the Septic Project Steering Group and development of a partnership with Dungog and Port Stephens Councils to increase septic performance and inspections within the catchments,  Signed a memorandum of understanding with the NSW Local Land Service, and  Stabilisation, maintenance and weed control of river banks located on Hunter Water land and fencing of the Williams River riverbank at Tillegra. Stakeholder Engagement and Consultation

Several catchment stakeholder groups have been established to enable collaboration between key stakeholder agencies with similar catchment management issues and interests. These stakeholder groups meet twice per year on average and are considered partners in the education and on-ground works programs related to the CIP.

During 2013-14, Hunter Water continued to partner with the NSW Local Land Services to deliver the Waterwatch program, which involves catchment water quality awareness projects aimed towards primary and secondary school students. Community engagement was also undertaken through participation in the 2014 Tocal Field Days and via presentations to Hunter Water’s Community Consultative Forum.

Hunter Water has developed a Water Sensitive Urban Design Development Control Plan to facilitate ways of reducing water quality impacts from urban stormwater runoff from the Campvale Canal catchment, which drains into Grahamstown Dam. The Development Control Plan has been provided to Port Stephens Council for comment.

Hunter Water also liaised with community stakeholders to raise awareness of Hunter Water’s catchments and the need to protect them. As a result, new catchment signage has been designed and will be placed at designated locations throughout the catchment.

Compliance and Performance Report 2013-14 | 68 Regulation, Monitoring and Surveillance

During the reporting period, Hunter Water participated in regular meetings with the Department of Planning and Environment (DP&E) and Councils located within the drinking water catchments, to ensure land use planning and development applications that pose a potential risk to drinking water quality are assessed on a case by case basis.

Hunter Water commenced consultation with the Parliamentary Counsel to review and strengthen the Hunter Water Regulation 2010. A consultant has been engaged to develop the draft legislation.

An assessment of catchment source water quality was completed during the reporting period with the purpose to record the baseline catchment condition prior to the implementation of the Catchment Improvement Plan, against which future monitoring can be compared. Catchment risk assessments were undertaken for Chichester Dam and Grahamstown Dam catchments. Opportunities to maximise the efficiency of the monitoring program have been identified, with some actions implemented already. Work to revise the Water Quality Monitoring Plan has commenced, with pesticide monitoring of raw waters implemented at all water treatment plants.

Consultation with the Department of Defence, NSW Health and Newcastle Airport was undertaken to discuss water quality risks associated with the proximity of these facilities to the Grahamstown Dam and Tomago Sandbeds catchments.

Miscellaneous Actions

In conjunction with defining the strategic direction for the management of Hunter Water’s drinking water catchments, and the actions to implement these, Hunter Water continues to work with key stakeholders to ensure that vital activities such as weed management, feral animal control, bushfire management, land rehabilitation, control of illegal dumping, and control of unauthorised access are undertaken within the drinking water catchments. For more information on these actions refer to Goal Seven (see section 6.10).

6.4.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.1.

Compliance and Performance Report 2013-14 | 69

Table 6.1 EMP Goal 1: Protection of Drinking Water Catchments

Objectives Actions Targets Compliance

Address the top water quality risks as Improve dairy farm runoff - Partner with Develop farm improvement agreements On track. identified in the Catchment Improvement Department of Primary Industries (DPI) with 50% of the dairy farms within the Plan by co-funding a position with DPI that Williams River catchment by 2017. would work with dairy farmers in the Williams River catchment. Develop monitoring framework to confirm the improvements in effluent discharge quality.

Improve septic performance - Partner 25% increase in the number of additional On track. with Dungog and Port Stephens inspections and rectifications to failing Councils to increase septic inspection in septic tanks. catchments.

Stabilise river banks on Hunter Water 50% of Hunter Water-owned riparian On track. land - Plant riparian vegetation and zone in Tillegra Valley to be fenced and fence Williams River riverbank at revegetated by 2017. Water quality Tillegra. Undertake ongoing improvements to be assessed and maintenance and weed control. publicly reported.

Work with stakeholders and engage with Establish a Catchment Stakeholder Catchment Stakeholder Group and Complete. Regular consultation will the community to deliver improved Group and regularly meet with all terms of reference to be established by continue to be undertaken with catchment outcomes catchment stakeholders. December 2013. catchment stakeholder groups.

Leverage partnerships to improve Inclusion of catchment education Complete. drinking water catchment awareness by outcomes in sponsorship assessment supporting community programs that criteria. promote water source protection and catchment health.

Maintain links with the University of Inclusion of catchment and water quality Complete. Newcastle and other research providers outcomes in research collaboration to increase understanding of drinking assessment criteria. water catchments.

Compliance and Performance Report 2013-14 | 70

Objectives Actions Targets Compliance

Increase catchment signage to promote Have new signage in place by December On track. community awareness of Hunter Water’s 2014. catchments and the need to protect them.

Work with Port Stephens Council to Water quality options assessment to be On track. investigate ways of reducing water completed by December 2017. quality impacts from Campvale Drain catchment.

Minimise risks via effective regulation, Ensure appropriate land use planning in Conduct regular meetings with Complete. Regular consultation will monitoring and surveillance catchments via liaison with development development consent authorities. continue to be undertaken with DP&E consent authorities regarding proposed and Councils. rezonings or development applications in Develop standard conditions of approval Delayed. Hunter Water and Councils catchments. in consultation with development have discussed development activities consent authorities by June 2014. where consultation with Hunter Water will improve understanding of water quality risks and possible mitigation measures.

Provide recommendations to the Remake the Hunter Water Regulation by On track. Parliamentary Counsel to remake and June 2015. strengthen the Hunter Water Regulation 2010.

Write a raw water monitoring plan which On track. Revised water quality monitoring plan maximises the efficiency of water developed by June 2015. monitoring in catchments.

Develop a procedure relating to the use Develop procedure by June 2014. Complete. of pesticides on Hunter Water land in drinking water catchments.

Compliance and Performance Report 2013-14 | 71

Objectives Actions Targets Compliance

Hunter Water operational staff to Scheduled program in place by Reprioritised. undertake proactive surveillance in December 2014. catchment areas. Implement a scheduled surveillance program and document results in a corporate database.

Undertake a catchment assessment that Finalise Catchment assessment by June Complete. Source water quality report records a baseline catchment condition 2014. finalised. prior to rolling out the CIP. This will provide an important baseline against which to monitor benefits.

Consult with RAAF and Newcastle Conduct regular meetings with RAAF On track. Airport in relation to specific water quality and Newcastle Airport. risks arising from the proximity of these facilities to the Grahamstown Dam and Tomago Sandbeds catchments.

Compliance and Performance Report 2013-14 | 72

6.4.3 Activities Planned for 2014-15

Future activities to protect drinking water supplies are defined in the Catchment Improvement Plan and the EMP. The following actions are planned to commence in 2014-15:

 Dairy effluent systems to be upgraded and a project officer to be employed at Local Land Service to manage the project.  Project officer to be employed at Port Stephens Council to undertake inspections of septics in drinking water catchments.  Funding to be provided to Port Stephens and Dungog Council’s to improve data collection techniques.  Development of an Assessment Framework tool for Dungog Council, to assist with onsite wastewater design.  Design of river bank works and covenants to be finalised.  Collaboration with the University of New South Wales (UNSW) to partially fund a PhD student to undertake research into nutrients and destratification in Chichester Dam, which will allow Hunter Water to gain a better understanding of the drinking water catchment.  Installation of new signage to raise community awareness of catchment protection.  Finalisation of Water Sensitive Urban Design Development Control Plan.  Consultation with Councils will continue regarding standard consent conditions and development activities on which Hunter Water would like the opportunity to comment on. Policy to be developed by Hunter Water to address development responses.  Draft legislation to be developed for the Hunter Water Regulation 2010. The legislation will be exhibited and lodged with the Minister.  Wet weather monitoring at Grahamstown Water Treatment Plant raw water tank, Dungog Water Treatment Plant raw water tank, and Campvale Pump Station to further understand water quality risk.  Continue to partner with the Local Land Services to deliver Waterwatch and participate at the Tocal Field Days.  Further collaboration with Department of Defence and NSW Health to ensure security of drinking water source.

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Compliance and Performance Report 2013-14 | 73

6.5 Goal 2: Reliable Supply of Drinking Water with Minimal Environmental Impacts

Hunter Water is permitted to extract water from the environment under a number of water supply work and water use approvals issued by the NSW Office of Water (NOW) under the Water Management Act 2000. The approvals have detailed monitoring and reporting requirements and also include a requirement to undertake a number of environmental studies which are designed to develop a better understanding of the long term sustainability of Hunter Water’s extraction activities. Water supply in the Lower Hunter is highly vulnerable to drought. Water levels can drop faster than in most other major Australian urban centres during drought because Lower Hunter storages are small, or shallow and have high evaporation rates. The Metropolitan Water Directorate has led the development of the Lower Hunter Water Plan in close consultation with Hunter Water, other government agencies and the Lower Hunter community. The plan was officially released by the Minister for Finance and Services on 2 April 2014.

6.5.1 Actions to Manage Risks

Water Licence and Approval Package Compliance

Hunter Water’s Water Licence and Approval Package permits water extraction from the Williams River, Chichester Dam, Grahamstown Dam, groundwater sources at Tomago and Tomaree and the Paterson and Allyn Rivers. The licence package requires monitoring and reporting and several supplementary studies to be undertaken.

During 2013-14, Hunter Water used the Balickera Water Pumping Station to transfer water from the Williams River to Grahamstown Dam in accordance with Water Use Approval 20CA212238. The Williams River experienced relatively low flows compared to recent years, which resulted in low yields in water transferred to Grahamstown Dam. Grahamstown Dam was at 97.2% at the start of the 2013-14 year with a gradual decline in volume, and minimum for the year, to 82.7% at the end of 2013-14.

A yearly total of 21,153 mega-litres was transferred from the Williams River to Grahamstown Dam for the 2013- 14 reporting period.

During 2013-14, there were three non-compliances that required immediate notification to NOW. Each of the non-compliances related to Hunter Water temporarily failing to meet environmental flow requirements at Chichester Dam. In each event standard minimum environmental flow requirements (14ML/day) were able to be restored within a short timeframe.

Sustainable Groundwater Use

The Water Licence and Approval Package requires a baseline vegetation monitoring program and water stress monitoring program to be developed in Tomago and Tomaree Special Areas as a follow-up from the Sustainable Groundwater Extraction Strategy. The baseline vegetation monitoring program aims to assess the effects of groundwater extraction on the ecology of groundwater dependent ecosystems (GDEs).Compliance The and Performance Report 2013-14 | 74 water stress monitoring program is a preliminary investigation to develop a program aimed at assessing the effects of groundwater extraction below the 95th percentile water level in each groundwater management zone on groundwater dependent endangered ecological communities (EECs).

An environmental consultant was engaged to commence baseline ecological vegetation monitoring within the Tomago and Tomaree Sandbeds. Ecological transects to monitor and identify trends in the ecology of groundwater dependent ecosystems were established. The data from the project will be used to correlate with groundwater extraction, climate and other influences to assess the effects of groundwater extraction on the ecology of the GDEs in the Tomago and Tomaree Sandbeds.

Long-term Security and Drought Contingency

Hunter Water assisted the Metropolitan Water Directorate to deliver the LHWP to ensure that Hunter Water customers have a secure water supply for around the next 20 years. A key recommendation of the LHWP was the implementation of the Water Wise Rules which were developed during the reporting period and commenced 1 July 2014.

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The Water Wise Rules are summarised as:

 Watering with a sprinkler, irrigation system or trigger nozzle hose, is permitted any day before 10am or after 4pm to avoid the heat of the day.  All hand held hoses must have a trigger nozzle.  No hosing of hard surfaces such as concrete, paths and driveways. Reduce Environmental Risks Associated with Water Storage and Water Treatment Operations

During the reporting period, Hunter Water commenced a business case for a condition assessment of Balickera Tunnel. The condition assessment is to inform remedial actions for the tunnel that take into consideration the endangered bat colonies inhabiting the tunnel. A project risk assessment was undertaken, which identified that an Environmental Impact Statement (EIS) may be required due to the presence of endangered bat species. The EIS and associated consultation period are expected to exceed the action due date outlined in the EMP.

An environmental assessment of the discharge of water from the Grahamstown Water Treatment Plant (WTP) sludge lagoons to the Tomago Sandbeds was undertaken. A water quality monitoring plan was developed and implemented following the assessment and the water quality results sent to the NSW Environment Protection Authority (EPA) for review. Confirmation was received from the EPA that an Environmental Pollution Licence was not required for the Grahamstown WTP.

A water treatment residuals strategy to ensure the most efficient and sustainable end use for water treatment by products was prepared and finalised.

Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.2.

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Compliance and Performance Report 2013-14 | 75

Table 6.2 EMP Goal 2: Reliable Supply of Drinking Water with Minimal Environmental Impacts

Objectives Actions Targets Compliance

Comply with the requirements of the Operate, monitor and report in Full compliance with Water Management There were three non-compliances that water supply work and water use accordance with licence requirements. Licence requirements – to view the required immediate notification to NSW approvals licence licence requirements visit. Office of Water (NOW).

Develop an ecological monitoring http://www.water.nsw.gov.au/Water- Ecological monitoring program is program to assess the effects of Licensing/Corporate- underway. groundwater extraction on the ecology of licences/default.aspx groundwater dependent ecosystems.

Provide for water access and There were three non-compliances that environmental flows in accordance with required immediate notification to NOW. licence requirements.

Maintain long term security and Assist Metropolitan Water Directorate, Support Metropolitan Water Directorate Complete. The LHWP was released by sustainability of water use for our government agencies and our to deliver LHWP to Minister. the NSW Government in April 2014. growing number of customers community to develop a new water plan for the Lower Hunter.

Development of drought contingency Drought management planning is a key Support Metropolitan Water Directorate Complete. The LHWP was released by measures to ensure our customers focus of the first iteration of the Lower to deliver LHWP to Minister. the NSW Government in April 2014. never run out of water Hunter Water Plan being led by the Metropolitan Water Directorate. The LHWP will identify a preferred portfolio of options to reduce the risk of tunning out of water in an extreme drought.

Reduce environmental risks associated Undertake condition assessment of Condition assessment to be undertaken On track. Business case for condition with water storage and water treatment Balickera Tunnel. Any remedial actions by June 2017. assessment approved. operations will need to take into consideration the bat colonies that rely on the tunnel for habitat.

Undertake assessment of the impacts of Environmental assessment to be Complete. Water Quality Monitoring Plan the Grahamstown WTP sludge lagoons completed by June 2015. implemented and EPL not required for on the surrounding environment. Grahamstown WTP.

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Objectives Actions Targets Compliance

Develop and implement water treatment Strategy to be finalised by December Complete. residuals strategy to ensure the most 2013. efficient and sustainable end use for the water treatment by-products.

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The majority of water supplied in recent years has come from Grahamstown and Chichester Dams (see Figure 6.1 to Figure 6.4), because the cost of extracting and treating water from groundwater supplies is higher compared to surface water. The amount of water sourced from groundwater increased in 2013-14, due to implementation of a new maintenance regime that requires annual operation of all bores. The amount of water sourced from recycling has remained relatively consistent over the past ten years.

Figure 6.1 Breakdown of Water Sourced in 2013-14

Figure 6.2 Volumes of Water Sourced from 2003-04 to 2013-14

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Compliance and Performance Report 2013-14 | 78

Figure 6.3 Extraction from Water Sources and Storages in 2013-14

Figure 6.4 Extraction from Water Sources 2003-02 to 2013-14

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Compliance and Performance Report 2013-14 | 79

6.5.2 Activities Planned for 2014-15

Drought contingency measures have been identified as part of the LHWP. Hunter Water will work with the Metropolitan Water Directorate to implement drought management investigations and policy initiatives arising from the LHWP. Activities related to the LHWP that will be implemented during the 2014-15 reporting period include:

 Implementation of the Water Wise Rules,  Implement further actions as documented in the LHWP monitoring, evaluation, reporting and improvement (MERI) plan,  Undertake 'drought readiness' activities for temporary desalination,  Investigate feasibility of the Lower Hunter Alluvial groundwater reserve for drought supply,  Commence work to develop an inter-regional water supply model between Hunter Water and Central Coast, and  Commence planning of infrastructure to enhance water transfers between Hunter Water and the Central Coast. The ecological monitoring program to assess the effects of groundwater extraction on the ecology of groundwater dependent ecosystems will continue to be undertaken. Data analysis will specifically assess changes in community structure between obligate Groundwater Dependent Ecosystems (GDEs), facultative GDEs and non GDEs.

A concept design based on the condition assessment of Balickera Tunnel will be commenced during 2014-15.

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Compliance and Performance Report 2013-14 | 80

6.6 Goal 3: Conserve water supplies by ensuring efficient water use

Hunter Water has a strong history of promoting water conservation through the introduction of user pays pricing, education and an ongoing leak reduction program. The Lower Hunter Water Plan addresses water conservation through the commitment to implement a range of water efficiency and water loss minimisation programs.

6.6.1 Actions to Manage Risks

Hunter Water continues to focus on demand management programs including water loss management and water efficiency as a key component of water conservation practices.

Water Efficiency

Residential and non-residential programs delivered throughout 2013-14 are listed in Table 6.3.

Table 6.3 Water Efficiency Programs

Focus area Program

Residential water efficiency programs Marketing campaign for introduction of Water Wise Rules, including garden trigger nozzle giveaway Community water education and sponsorship Residential showerhead exchange program Support of the Hunter Region No Interest Loans Program Cameron Park and Fletcher rainwater tank study Shower timer and DIY water saving kit giveaways Web links to water efficiency websites

Non-residential water efficiency programs Marketing campaign for introduction of Water Wise Rules Leakage in schools program Hunter Business Water Savers program School water education program Bore water treatment for Hunter Region Botanic Gardens Large customer water efficiency audits

A total of 277 ML of water was saved during 2013-14 through the implementation of water efficiency programs. Additional information on the programs is outlined in the chapter three.

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In 2013-14 Hunter Water continued the active leak detection program. Leak detection was carried out on 1236 km of pipeline.

Other works related to loss management include:

 Pressure management program - Pressure reduction valve has been commissioned in Argenton and an incremental pressure reduction will begin in August 2014.  Watermain replacement program – replacement of 5.4km of reticulation mains with multiple breaks or leaks recorded.  Water service replacement program – replacement of sections of main between the reticulation main and customer meter that have previously failed.  Economic Level of Leakage determined and submitted to the regulator.

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6.6.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.4.

Table 6.4 EMP Goal 3: Conserve Water Supplies by Ensuring Efficient Water Use

Objectives Actions Targets Compliance

Promote and Implement water Achieve combined Water savings of 277 ML in 2013-14. implement water efficiency programs water savings of use efficiency for residential and 350 ML per year programs business through water customers. efficiency, water loss reduction and onsite water reuse Implement water Undertake leak Under the water main/water service initiatives. efficiency and water detection, water replacement program approximately loss reduction pressure 37ML of water loss has been avoided. programs within management and Water loss indicators for leak detection Hunter Water’s water loss reduction and water pressure management are operations where programs. no longer calculated on the basis of economically volumetric water savings and hence the feasible target used for this EMP action will be updated when the EMP is reviewed in 2015. The Operating Licence required Hunter Water to develop an Economic Level of Leakage. This assessment forecast a leakage rate of 16.4+/-3.9 ML /day for 2012-2013 water balance period. Actual performance complied with this value with 17.9 ML/day (+/-4.7ML/day) observed. An Infrastructure Leakage Index (ILI) of 1.2 was achieved across all water loss programs which is consistent with previous years. Results of 1.5 or less are categorised as ‘excellent’ when used for industry benchmarking.

6.6.3 Activities Planned for 2014-15

Hunter Water is planning to spend $315,000 on water efficiency programs in 2014-15, with the goalCompliance of and Performance Report 2013-14 | 82 identifying 193ML per year of cost effective savings. The focus in 2014-15 will be on water efficiency school education and major customer water audits. Additional information on the programs is outlined in the chapter on water quantity.

In regard to loss management, the active leak detection program will continue with a target of surveying 20% of the network per year. Over the next 3-4 years works will be undertaken to manage excessive pressures in 3 additional high pressure areas. Infrastructure management and replacement projects will continue to replace leaking watermains, water services, valves and hydrants.

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6.7 Goal 4: Implement Water Recycling Initiatives

Hunter Water is committed to implementing water recycling where environmentally, socially and economically beneficial. Hunter Water has a long history of developing recycled water schemes to a variety of customers including Eraring Energy, Oceanic Coal, several municipal golf courses, Kurri Kurri TAFE and a variety of agricultural water users. The Lower Hunter Recycled Water Initiative (LHRWI) is a major initiative for Hunter Water and comprises of eight recycling and greenhouse gas offset projects that will be delivered between 2012 and 2015. The LHRWI will save valuable drinking water and improve water security in the Lower Hunter. The LHRWI will save up to 3.7 billion litres of drinking water a year, which is about five per cent of our region’s annual drinking water. The LHRWI is funded by Hunter Water and the Australian Government through the National Urban Water and Desalination Plan. In addition to saving drinking water, water recycling schemes can be often be used as an effective and sustainable effluent management strategy for our wastewater treatment plants.

6.7.1 Actions to Manage Risks

Compliance with Australian Guidelines for Water Recycling

Hunter Water’s recycled water schemes are currently managed under the National Water Quality Management Strategy Guidelines for Sewerage Systems: Use of Reclaimed Water 2000. As agreed with NSW Health in 2012, Hunter Water is working towards implementing the 2006 Australian Guidelines for Water Recycling (AGWR) by July 2015 for all existing schemes. The AGWR provides a framework for the management of recycled water systems. The framework emphasises a risk management approach in controlling hazards to human health and the environment.

The Operating Licence requires that Hunter Water maintain a Management System that is consistent with the AGWR or as amended or added to by NSW Health.

NSW Health has specified that all Hunter Water’s new recycled water schemes are to meet the requirements of the AGWR and that where necessary, work must be done on existing schemes to meet the requirements of the AGWR. A key component of being compliant with the AGWR is the implementation of the risk based management framework.

Hunter Water has agreed with NSW Health to have implemented the AGWR by July 2015. This will include a documented Recycled Water Management Plan identifying critical control points for every scheme. To date, Hunter Water has identified critical control points as part of the management plan for the scheme supplying recycled water from the Branxton Wastewater Treatment Works (WWTW).

On-site Water Reuse Schemes at Wastewater Treatment Works

The implementation of on-site water reuse schemes at wastewater treatment plants has been progressed at a number of sites, including: Compliance and Performance Report 2013-14 | 83

 Boulder Bay WWTW – the onsite reuse of water for use in the sludge handling building has been completed.  Cessnock WWTW – an onsite reuse scheme will be commissioned in September 2014. Lower Hunter Recycled Water Initiative

The LHRWI is being implemented by Hunter Water, which included the commissioning of the Kooragang Industrial Water Scheme (KIWS). All pipeline works related to KIWS have been completed. Projects to offset greenhouse gas emissions associated with operating the LHRWI water reuse schemes were completed, including installation of Cessnock WWTW cogeneration, installation of solar panels on the Hunter Water Head Office and a tree planting program for carbon sequestration on Hunter Water land.

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Opportunities to Implement Water Recycling

Hunter Water continues to invest in improvements to its wastewater treatment plants and wastewater transportation networks. Effluent management strategies are progressively being completed for wastewater treatment plants. Paxton WWTW and Burwood Beach WWTW strategies were completed in 2013-14. These studies will feed into an effluent masterplan which will be completed by June 2017.

6.7.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.5.

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Compliance and Performance Report 2013-14 | 84

Table 6.5 EMP Goal 4: Implement Water Recycling Initiatives

Objectives Actions Targets Compliance

Water reuse schemes are to Ensure new and existing water recycling All new and existing schemes to be On track. comply with Australian Guidelines scheme comply with Australian Guidelines compliant with the guidelines by July for Water Recycling for Water Recycling (2006). 2015.

Implement on-site water reuse Develop on-site recycling schemes for Commission schemes by December Boulder Bay WWTW reuse scheme schemes at wastewater treatment Boulder Bay WWTW, Shortland WWTW, 2016. complete and Cessnock WWTW reuse plants and Cessnock WWTW. scheme close to completion.

Deliver LHRWI Complete Kooragang Industrial Water Commission scheme by April 2015. Scheme will be commissioned from June – Scheme. August 2014 and operational from September 2014.

Offset greenhouse gas emissions Complete offset projects by December Complete. Projects to offset greenhouse gas associated with operating the LHRWI 2013. emissions associated with operating the water reuse schemes. Offset projects LHRWI water reuse schemes were include installation of Cessnock completed. cogeneration, installation of solar panels on Head Office and tree planting program for carbon sequestration on Hunter Water land.

Continue to identify and evaluate Develop an updated effluent masterplan Complete masterplan by June 2017. On track. opportunities to implement water for wastewater treatment plants that recycling identifies sustainable and affordable opportunities to recycle water.

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Figure 6.5 Recycled Water Consumption by Sector

Note: Com/Mun/Ind = Community/Municipal/Industrial

Figure 6.5 shows an increase in the volume of recycled water supplied for commercial, municipal and industrial purposes during 2013-14. This increase in volume was due to Eraring Power Station taking 1,011ML compared to 503ML for the 2012-13 period. Normal usage for Eraring is around 1,000ML per annum, however during 2012-13 Eraring recycled water facility was off-line for a period which resulted in reduced volume levels.

6.7.3 Activities Planned for 2014-15

Hunter Water will continue to work through the process of implementing the AGWR for all recycled water schemes by July 2015. This will include the preparation of a Recycled Water Management Plan identifying critical control points for every scheme. No significant changes to Hunter Water’s recycled water quality management systems are proposed for 2014-15. Compliance and Performance Report 2013-14 | 86

Commissioning of the KIWS will continue. Once operational the scheme will save up to 3,300 ML of potable water each year and will be the Hunter’s largest recycled water scheme.

Effluent management strategies will be completed for Karuah, Farley and Dungog WWTW. A Hunter River estuary model will be developed to understand potential impacts on the Hunter River from WWTW discharges and inform future upgrade strategies at Morpeth, Raymond Terrace and Farley WWTWs.

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6.8 Goal 5: Manage Hunter Water’s Stormwater and Wastewater Infrastructure to Ensure Healthy Waterways, Clean Beaches and Clean Air

The EPA issues licences for Hunter Water’s wastewater pipe network and treatment systems. The past five years has seen major upgrades to both inland and ocean wastewater treatment plants to service growth and notable system improvements to reduce the potential for sewer overflows. Beachwatch water quality monitoring results consistently reveal excellent results for the Hunter’s beaches.

6.8.1 Actions to Manage Risks

Compliance with Licence Conditions

Hunter Water aims to operate, monitor and report in accordance with EPA licence requirements. During the report period, 13 of 19 wastewater treatment plants were fully compliant with EPA licence conditions. Six sites had non-compliances:

 Farley – breach of the BOD load limit on 31 July 2013; a sample was not tested for Chlorophyll 'a' as required by licence conditions on 15 August 2013 and a sample from a wet weather overflow was not analysed for pH as required by licence conditions on 18 November 2013.  Branxton - breached the Phosphorus 50%ile condition at Point 1-Anvil Creek Discharge on 30 September 2013, effluent discharged from Point 1 (Farmers Reuse Storage) contained pH levels exceeding 100%ile upper limit of 8.5 on 4 December 2013 and effluent discharged from Point 1 (Farmers Reuse Storage) contained pH levels exceeding 100%ile lower limit of 6.5 on 28 March 2014.  Cessnock - breached the Total Nitrogen load limit on 30 November 2013, which results in ongoing non-compliance until the end of the licence reporting year on 30 December 2013.  Belmont - exceedance of daily flow limit of 250 ML, with a flow of 256.07 ML on 18 November 2013.  Kurri Kurri – on 4 April 2014 flows were not treated in accordance with conditions O4.4 and O4.6 as the result of a power failure. These licence conditions relate to proportional treatment of inflows during wet weather.  Burwood Beach - breached the Total Nitrogen load limit on 30 June 2014, at the end of the licence reporting year. A brief explanation of the parameters referenced is included in the Glossary (see section 8.4).

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Compliance and Performance Report 2013-14 | 87

Figure 6.6 Compliant Wastewater Treatment Plants

Reduce Impact of Wastewater Overflows

Hunter Water aims to reduce environmental and community impact of overflows from its wastewater systems. A review has been undertaken for the approach to wet weather overflow abatement for each wastewater system, in consultation with government authorities. The EPA and Lake Macquarie City Council have provided in-principle support for the proposed wet weather sewer overflows strategy for the Lake Macquarie catchment.

EPA Pollution Reduction Program commitments

Hunter Water delivered the following EPA Pollution Reduction Program commitments during the reporting period:

 The Burwood Beach WWTW Stage 3 Upgrade Options Report was submitted to the EPA in July 2014. Compliance and Performance Report 2013-14 | 88  Investigations were undertaken into the impacts of wastewater disposal on receiving environment at Tanilba Bay WWTW.  A long term sustainable effluent management strategy for Paxton WWTW was completed and the EPA provided in principle support to progress a catchment improvement program for the Paxton wastewater catchment.  Provided a report on the wet weather performance of the Dudley Charlestown Wastewater system and prepared a revised upgrade strategy for the system.  A concept design was completed for the upgrade of emergency storage and switchboard at Beresfield No. 5 WWPS.

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Management of Trade Waste

Trade waste is managed to ensure that no adverse impacts to the wastewater system, treatment plants or effluent system occurs. An interim tanker strategy was prepared and implemented in 2013- 14, to reduce business and related environmental risk.

Sustainable Beneficial Reuse of Biosolids

Hunter Water endeavours to maximise sustainable beneficial reuse of biosolids across the WWTW sites.

Hunter Water reuses 100 per cent of biosolids produced from its operations. In a given year, where the figure for ‘per cent of biosolids suitable for land application reused (%)’ is not equal to 100 per cent, it should be noted that the remaining biosolids have been stockpiled on site for reuse at a later date (see Table 6.6 and Figure 6.7). This can occur due to a range of reasons including contractor availability and weather constraints.

Table 6.6 Biosolids Reuse

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Dewatered biosolids reused 5,091 5,123 4,668 4,738 5,300 5,116 (dry tonnes)

Per cent of biosolids suitable for 88 104 95 86 92 85 land application reused (%)

Percent of biosolids stockpiled 12 0 5 14 8 15 for future reuse (%)

Figure 6.7 Dry Tonnes of Biosolids Beneficially Reused

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Compliance and Performance Report 2013-14 | 89

Figure 6.8 Biosolids End Uses

Of the biosolids produced, 75 per cent was reused for agriculture, 7 per cent for mine site rehabilitation, 15 per cent was stock piled for future reuse and 1 per cent was used for landscaping purposes. There was a decrease in the use of biosolids for mine site rehabilitation during the 2013-14 reporting period.

During the reporting period, work commenced on a Biosolids Storage Strategy. An audit was undertaken to assess biosolids storage across all facilities and a consultant was engaged to provide strategic advice regarding biosolids storage and handling.

Monitoring the Health of our Waterways and Beaches

Hunter Water participates in the OEH Beachwatch program to assist in providing regular and reliable information on beach water quality to enable people to make informed decisions about where and when to swim. Monitoring is undertaken every 6 days at seven swimming sites in Newcastle City Council and six locations in Lake Macquarie City Council areas. Results of the Beachwatch survey are published on the Hunter Water and OEH websites. Compliance and Performance Report 2013-14 | 90 Hunter Water is required to report any sewage overflows to the stormwater system or swimming areas. If there is the potential for water quality to be affected, the swimming area is closed and temporary onsite warning signs are erected.

During the 2013-14 reporting period all seven of the Newcastle City Council swimming sites were graded as Very Good or Good, five beaches in the Lake Macquarie area were graded as Very Good and two beaches were graded as Good.

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Provision of Sewerage Services to Residential Urban Infill Areas

A proposal has been submitted to the NSW Government for funding to deliver sewerage services to unsewered townships.

A number of Urban Infill Backlog Sewer projects have been identified within Merewether, Duckenfield, Dudley and Garden Suburb. These projects have progressed to various stages.

6.8.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.7.

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Compliance and Performance Report 2013-14 | 91

Table 6.7 EMP Goal 5: Healthy Waterways, Clean Beaches and Clean Air

Objectives Actions Targets Compliance

Dispose of wastewater in an Operate, monitor and report in Full compliance with EPA licences. Full compliance with EPA licence environmentally sustainable manner. accordance with EPA licence conditions at 13 of 19 wastewater requirements. treatment plants.

Reduce environmental and community Review approach to wet weather On track. impact of overflows from the wastewater overflow abatement for each wastewater Full compliance with EPA licences. systems system in consultation with EPA.

Review approach to dry weather Complete - Incident notification and overflows and incident notifications. reporting procedures have been

Pursue opportunities for improvement. enhanced.

Develop program to undertake failure Complete. modes affects analysis for all critical Program has been developed to pump stations. undertake failure modes affects analysis for all critical pump stations.

Develop strategy to assess reliability of On track to be completed by September SCADA/PLC/telemetry including 2014. condition assessment of instrumentation and development of specifications for recoding as applicable.

Meet EPA Pollution Reduction Program Submit Burwood Beach WWTW Stage 3 Full compliance with EPA Pollution Completed July 2014. commitments and not be an impediment Upgrade Options Report to EPA. Reduction Program commitments. to proposed regional growth centres. Investigate impacts of wastewater Complete. disposal on receiving environment at Tanilba Bay WWTW.

Develop long term sustainable effluent Completed December 2013. EPA have management strategy for Paxton provided in-principle support to progress WWTW. a catchment improvement program for the Paxton wastewater catchment.

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Objectives Actions Targets Compliance

Undertake sewage pump station On track. overflow frequency reduction Hunter Water is progressing with the investigations within the Lake Macquarie proposed Effects Based Assessment Catchment. Strategy for the Lake Macquarie catchment. A report detailing key milestones is to be prepared for the EPA.

Upgrade works at Beresfield No. 5 On track. Wastewater Pump Station Concept design is currently underway for upgrades to Beresfield No.5 WWPS.

Manage stormwater assets to improve Development of Stormwater Stormwater Environmental Improvement Reprioritised. environmental outcomes Environmental Improvement Plan Plan completed by December 2014

Manage trade waste to ensure no Deliver an improved treatment plant Strategy completed by December 2016 On track. adverse impacts on the sewerage tankering strategy to reduce business system, treatment plants or effluent. and related environmental risk.

Maximise sustainable beneficial reuse of Revise the Biosolids Strategy Strategy completed by December 2014 On track. biosolids Undertake audit of biosolids storage Audit to be completed by June 2014 Audit complete. facilities

Manage odour production from our Monitor odour complaints received to Number of Complaints to remain under The five year annual average for odour wastewater treatment plants and enable proper assessment of need for 250 complaints (annual average over 5 complaints was 204 at the end of 2013- systems odour control actions. years). 14. Review of contractual documentation for odour control and chemical dosing.

Monitor the health of our waterways and Continue environmental monitoring of Full compliance with beach water quality All beaches were compliant. beaches. receiving inland and ocean receiving specified by EPA under the program waterways and involvement in the EPA Beachwatch program.

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Objectives Actions Targets Compliance

Provide sewerage services to unsewered Where requested, provide information to Where all properties in a particular infill On track. pockets of residential properties located Councils and residents on Hunter area agree to proceed and meet relevant A number of Urban Infill Backlog Sewer in urban infill areas. Water’s cost sharing arrangements for costs. Note: Hunter Water may also Projects have been identified and the provision of sewerage to residential consider a lesser majority of 75% progressed. properties in urban infill areas. providing that either the EPA and/or Council mandate connection of the remaining properties to the sewer network.

Deliver sewerage services to unsewered Proceed to deliver sewerage services Highest priority townships based on On track. townships. where funding is made available by the assessment of environmental / health Backlog Sewer Proposal submitted for State Government. risk, and cost, and as approved by Government consideration. Cabinet in accordance with agreed program with State Government.

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6.8.3 Activities Planned for 2014-15

The following actions are planned to commence in 2014-15:

 On 26 June 2014 Hunter Water awarded the contract to operate and maintain Hunter Water’s twenty-five water and wastewater treatment plants and the Kooragang Industrial Water Scheme to Veolia Water Australia for up to 10 years. The transition period and contractual handover of the plants to Veolia will occur between July and October 2014. Veolia is one of the world’s leading global water companies and has been operating in Australia for more than 20 years. The new contractual arrangement will provide a number of benefits including improving accountabilities and commercial incentives for regulatory compliance, and contract life cost savings whilst maintaining service levels.  The key milestones and a schedule of deliverables for the Wet Weather Overflow Effects Based Assessment project will be provided to the Environment Protection Authority in August 2014.  Development of a strategy to maximise sustainable beneficial reuse of biosolids is currently on track.  During 2014-15 planning and approvals will be obtained for the installation of disinfection facilities at Burwood Beach WWTW. Further improvements have also been identified for the wastewater system in Glenrock State Conservation Area.  Continuation of Urban Infill Backlog Sewer projects to provide sewerage services to unsewered pockets of residential properties.

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Compliance and Performance Report 2013-14 | 95

6.9 Goal 6: Minimise the environmental impacts of HWC’s infrastructure projects

Over the next five years Hunter Water will be managing a significant program of capital development which will provide assets to meet higher standards and future growth in the region. Hunter Water undertakes environmental impact assessments and community consultation for all capital works projects to ensure that the environmental and community impacts of all infrastructure projects are minimised.

6.9.1 Actions to Manage Risks

Environmental Impact Assessment

In 2013-14 Hunter Water continued to assess all infrastructure projects in accordance with relevant legislation. Environmental impact assessments were undertaken for all projects where required by the Environmental Planning and Assessment Act 1979 (EP&A Act). The assessments included specialist assessments where required.

During the year Hunter Water continued to check and audit that construction environmental management plans were implemented for new infrastructure projects. For projects assessed as posing high environmental risks or with sensitive environmental issues, an environmental management representative was engaged to carry out compliance inspections, and provide advice and environmental management support to the Project Manager.

Review of Environmental Factors

During 2013-14, Hunter Water prepared and implemented the Review of Environmental Factors (REF) Guidance Notes. This document is to be used to provide guidance for the preparation of a REF under Part 5 of the EP&A Act. An REF may be required for developer works that involve construction or upgrade of water or wastewater services in order to demonstrate due diligence and comply with legislative requirements.

Conservation of Cultural Heritage

Management of Aboriginal cultural heritage is considered an important component of Hunter Water’s infrastructure projects. Throughout the year, a dedicated consultant archaeologist provided heritage support on capital works projects. The archaeologist provided specialist input that helped to minimise risks to cultural heritage, improve the efficiency of the administration of Aboriginal Heritage Impact Permits and built on existing relationships in the Aboriginal community.

In 2013 Hunter Water prepared Guidelines for Aboriginal Cultural Heritage Assessment and Consultation. The aims of the guidelines are to assist Hunter Water to meet its legislative responsibilities with respect to Aboriginal community consultation and assessment of the potential impacts of Hunter Water’s activities on Aboriginal cultural heritage. Compliance and Performance Report 2013-14 | 96

Minimise Impacts on the Community

Hunter Water undertakes appropriate consultation and community impact assessment for all new infrastructure projects and relevant operational activities. One engagement mechanism is the Community Consultative Forum (see chapter five).

6.9.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.8.

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Table 6.8 EMP Goal 6: Minimise the Environmental Impacts of Infrastructure Projects

Objectives Actions Targets Compliance

Conservation of natural resources Undertake appropriate environmental Full compliance with environmental Ongoing. Environmental Impact assessment for applicable new legislation Assessments were undertaken for all infrastructure and relevant operational applicable projects in 2013-14. activities.

Framework to be formalised to include Full compliance with safeguards Framework is in place and linked to the an environmental risk identification at nominated in impact assessment planning approval process. concept design inception stage and process. reviewed at various milestones during projects, as part of Asset Creation Framework. Improve linking risk assessment to Greenslip.

Revise environmental requirements in Complete. general specification for contracts to ensure all key issues are addressed at high level.

Develop internal guidelines regarding Complete. approvals required for dewatering and aquifer interference under the Water Act 1912 or Water Management Act 2000.

Conservation of cultural heritage Undertake appropriate indigenous and Full compliance with environmental Ongoing. Heritage assessments were non-indigenous heritage assessments in legislation. undertaken for all relevant projects. accordance with OEH Aboriginal Assessment Guidelines.

Finalise internal guidelines and provide Full compliance with environmental Complete. Hunter Water prepared and training in Aboriginal heritage by legislation. implemented the Guidelines for December 2013. Aboriginal Cultural Heritage Assessment and Consultation.

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Objectives Actions Targets Compliance

Minimise impacts on community Undertake appropriate consultation and Undertake annual customer surveys to Ongoing. community impact assessment for all gauge satisfaction with Hunter Water. new infrastructure and relevant operational activities.

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6.9.3 Activities Planned for 2014-15

During 2014-15 Hunter Water will continue to make improvements to the way that environmental management is incorporated into the delivery of new infrastructure. There will be a strong focus on development of new EMS procedures, environmental training in the areas of acid sulphate soils, environmental incident management and environmental impact assessment.

Hunter Water will continue to undertake appropriate consultation and community impact assessment for all new infrastructure and relevant operational activities. Annual customer surveys will be undertaken to gauge satisfaction with Hunter Water.

Improvements are also proposed to further embed risk identification and mitigation at all stages of the asset creation lifecycle.

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Compliance and Performance Report 2013-14 | 99

6.10 Goal 7: Promote efficient use of resources and minimisation of waste

Hunter Water is a medium level consumer of electrical energy, currently using about 70,000 – 80,000 MWh per annum. Drivers for a focus on energy management and efficiency include electricity price increases, government policy and regulations, and technology improvements. There is a strong business case for investment in energy efficiency, with current efficiency improvement achievements providing a significant return on investment to date. There are sufficient “low hanging fruit” for energy efficiency upgrades to continue to be implemented over the next four years. Hunter Water has had a Greenhouse Gas and Energy Management Policy in place since March 2009. The policy outlines Hunter Water’s commitments and areas of strategic focus.

Our other main priority with regard to efficient use of resources is to reduce and effective manage waste generated as a result of our operations. Hunter Water has a contract in place to remove and recycle waste spoil that results from operational activities. Waste generated on infrastructure delivery projects is managed by contractors in accordance with legislative requirements with recycling encouraged where ever possible.

6.10.1 Actions to Manage Risks

Energy consumption across the asset categories was dominated by wastewater treatment and water transport, which is similar to historical consumption. During 2013-14, recycled water from the KIWS was added as a new asset category. The KIWS provides high quality recycled water to industrial users on Kooragang Island.

Figure 6.9 Energy Consumption by Asset Category 2013-14

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Greenhouse gas emissions have increased compared to 2012-13, which can be mainly attributed to an increase in fugitive emissions from wastewater treatment plants. Fugitive emissions vary from year to year due to changes in calculation methods and the amount of sludge dewatering that occurs at certain plants.

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Figure 6.10 Historical Net Greenhouse Gas Emissions (Tonnes CO2 - Equivalents)

Greenhouse emissions from wastewater assets continue to comprise the majority of the overall emissions generated by Hunter Water.

Figure 6.11 Greenhouse Gas Emissions Breakdown

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Compliance and Performance Report 2013-14 | 101

Greenhouse Abatement Projects and Renewable Energy Opportunities

Hunter Water implemented a number of energy efficiency projects during the 2013-14 reporting period, including:

 Intermittent operation of mixers in bioreactor anoxic zones at six WWTW,  Cogeneration at Cessnock WWTW,  Control fixed at Raymond Terrace WWTW recycled effluent pumps,  Control scheme upgrade at Wallsend Water Pump Station to limit capacity charge,  Shortland WWTW – positive displacement blowers replaced with turbo blowers, and  Stockton No. 1 WWPS – Variable Speed Drives added.  The installation of variable speed drives and control scheme upgrades at Neath and George Schroder Water Pump Stations. The projects are expected to create annual savings of 560 MWh at Neath and 880 MWh at Schroder. 6.10.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.9.

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Compliance and Performance Report 2013-14 | 102

Table 6.9 EMP Goal 7: Promote Efficient Use of Resources and Minimisation of Waste

Objectives Actions Targets Compliance

Comply with all relevant energy and Fulfil reporting requirements relating to Full compliance with relevant legislation. Complete. greenhouse gas related regulation the National Greenhouse and Energy Reporting Act.

Undertake investigations to Update Hunter Water’s Energy Policy update was completed. Note that comprehensively understand future Management and Greenhouse the repeal of the Clean Energy Future liabilities and opportunities under the Abatement policy. legislation has occurred and Hunter Clean Energy Future legislation and Water will keep a watching brief on whether cost effective actions can be developments to national policy on taken to reduce greenhouse gas energy and carbon management. emissions.

Pursue financially viable greenhouse Offset greenhouse gas emissions from Total offsets required will be Offset projects have been completed and abatement projects and renewable the operation of the Lower Hunter approximately 68,000 tonnes over twenty offsetting requirements will be tracked, energy opportunities Recycled Water Initiative recycled water years or an annual average offset of reported and acquitted over time. projects over the next twenty years. 3,400 tonnes.

Pursue cost effective energy efficiency Achieve savings of $200,000 per year as Savings of $253,000 were recorded for projects for existing and new a result of implementation of energy 2013-14. infrastructure. efficiency projects.

Develop energy monitoring and reporting Develop energy management plans for Develop Energy Management Plans for Reprioritised. framework major assets. the ten largest energy consuming assets.

Maintaining a comprehensive energy bill Call tenders for new system. Complete. Contract has been renewed checking and data management system. with Energy and Management Services.

Comply with all relevant waste EMS waste management procedure to More than 80% of solid waste recycled or Solid waste reused or recycled in 2013- management related legislation be drafted with waste training to be reused. 14 was 69% which is lower than provided for all relevant staff. Internal achieved in recent years. audits of contracts and management to be undertaken.

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Objectives Actions Targets Compliance

Report on waste generation and Complete. This report is required to be recycling initiatives in accordance with sent to NSW Office Environment and WRAPP requirements. Heritage every two years. The report for the 2012-13 reporting period was completed in 2013-14, as required.

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6.10.3 Activities Planned for 2014-15

Neath WPS variable speed drives and control scheme upgrades will be commissioned and will help meet energy efficiency targets.

There are currently eight additional energy efficiency projects that can be implemented during 2014- 15. A review will be undertaken to during this time to assess which projects will commence.

Hunter Water will also continue to meet its commitment to annual National Greenhouse and Energy Reporting.

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Compliance and Performance Report 2013-14 | 105

6.11 Goal 8: Responsibly manage our land and property assets

Hunter Water owns a large amount of land and has total assets valued at approximately $3 billion. Effective land management is therefore a very important corporate responsibility. Public safety, site security, bushfire management, weed management, bush regeneration, grounds maintenance, feral animal control, asset protection, landscaping, control of illegal dumping, land contamination and flood management are just some of the many property related activities that Hunter Water has to regularly address and manage as part of its overall land management responsibilities. Whilst there are many land management activities that are required on an ongoing basis several key tasks have been specifically highlighted for inclusion in the Environmental Management Plan.

6.11.1 Actions to Manage Risks

Heritage Conservation

Built in 1882, Newcastle Reservoir No.1 was part of the original drinking water scheme for the people of Newcastle, which included water being pumped from Walka Water Works near Maitland. Newcastle Reservoir No.1 continued to serve Newcastle until 50 years ago when it was drained and closed. Hunter Water is opening the reservoir for public tours in early 2015, with participants selected by ballot. Work to make the site accessible for tour groups is underway including installing stairs, lighting and improved ventilation.

Effective Land Management

Land Management Plans have been progressively implemented for all rural Hunter Water land with Hunter Land Management engaged in 2013 to provide this service. Currently 90% of Hunter Water rural holdings now have up to date management plans in place. A number of these properties have already had follow up inspections during 2013-14 to check compliance. All landholder agreements are gradually being updated as they expire to capture new conditions and responsibilities for tenants. It is envisaged that all rural holdings will have Management plans adopted in this financial year.

The Newcastle Riparian-Ramsar Connections is a program led by WetlandCare Australia to restore urban waterways in Newcastle. The program aims to improve the condition, function, resilience and biodiversity of a highly modified aquatic corridor approximately 450 hectares in area and 4 km, and will run for 4 years. The project area includes Hunter Water’s North Lambton Reservoir. During the 2013-14 reporting period, weed management, land shaping and tree planting activities were undertaken. The program is funded by the Australian Government through its Caring For Our Country (CFOC) program.

A new security surveillance contract commenced on 1 April 2014 that now provides regular patrolling and surveillance of a number of critical infrastructure sites and key facilities including Chichester Dam, Grahamstown Dam, Dungog WTP and Gresford WTP. New security response protocols were Compliance and Performance Report 2013-14 | 106 developed for operations to ensure a consistent approach is undertaken during alarm response activities.

Feral animal control in the form of wild dog and fox baiting was carried out during 2013-14 in the Chichester Dam, Grahamstown Dam, Tomago Sandbeds and Balickera Canal catchment areas.

Contaminated Land Management

During 2014 Hunter Water developed new procedures for the identification and management of contaminated sites that may be encountered as a result of operational activities.

Asset and Facility Maintenance

Landscaping and rehabilitation plans are required for all new and upgrade infrastructure projects. Hunter Water will directly engage with an environmental specialist to provide advice or complete the plans for environmentally sensitive projects.

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6.11.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.10.

6.11.3 Activities Planned for 2014-15

The following activities are planned for the 2014-15 reporting period:

 Review of the Lead Management Plan for Chichester Trunk Gravity Main,  Preparation of landscape and rehabilitation plans for all new projects,  Preparation of a weed management strategy for Hunter Water treatment plant sites,  Continuation of land management activities by WetlandCare at North Lambton Reservoir,  The formation of risk based site specific security plans for critical infrastructure sites has been listed as a priority for a specialist Business Resilience Advisory Service Provider to investigate and provide specialist advice on, and  Investigate the potential to have Newcastle Reservoir No.1 listed on the State Heritage Register.

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Compliance and Performance Report 2013-14 | 107

Table 6.10 EMP Goal 8: Responsibly Manage Our Land and Property Assets

Objectives Actions Targets Compliance

Conserve our heritage Maintain register for Hunter Water’s Conservation management plans for all Complete. Conservation Management heritage assets and develop state significant heritage assets to be Plans have been completed for five of conservation management plans for any completed by June 2014. Hunter Water’s most significant heritage assets identified as having potential assets. state significance. Incorporate register attributes into ellipse.

Implement Heritage Asset Management Compliance with commitments. On track. The commitments in the Strategy. Heritage Asset Management Strategy will continue to be implemented.

Effective land management Implementation of Land Management Compliance with commitments. On track. Plans for HWC owned rural lands. Lease agreements to be monitored annually.

Continue weed and feral animal control Report annually on land management Ongoing. programs for land under Hunter Water’s activities. control.

Develop a weed management strategy Compliance with commitments. On track. for treatment plant sites by December 2015.

Improve site security at Hunter Water Risk based site security management On track. New security surveillance facilities. plans for critical infrastructure in place by contract and protocols have been July 2016. implemented, which will complement the site security management plans.

Develop biodiversity offsetting strategy Policy in place by July 2016. On track. for Hunter Water that allows for improved conservation outcomes whilst balancing the needs of Hunter Water’s infrastructure delivery program.

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Objectives Actions Targets Compliance

Contaminated land management to be Develop a Contaminated Site Policy and strategy in place by July New procedure in place as part of EMS. effectively managed Management Policy. 2016. Additional work to be undertaken in Prepare a strategy to prioritise site 2014-15. contamination management.

Implementation of Lead Management Full compliance with commitments. Complete. Plan for Chichester Trunk Gravity Main.

Assets and facilities are to be maintained Aesthetics to be factored into asset Review implementation of Hunter On track. in an manner that is aesthetically design. Water’s Aesthetics Policy and application acceptable to the community of standards.

Undertake landscaping programs in Landscaping plans for new infrastructure Ongoing. association with upgrades of operational including specified maintenance periods. facilities.

Use of spatial tools to improve property Develop GIS layer showing Aboriginal GIS layer available and information On track. and asset management relating to the heritage sites and areas of sensitivity loaded into Ellipse by December 2014. environment around operational assets to inform strategies for managing Aboriginal heritage in close proximity to Hunter Water assets.

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6.12 Goal 9: Organisational environmental resilience and emergency preparedness

To ensure Hunter Water Corporation remains an environmentally resilient organisation that can respond to a number of emergency situations while continuing with its day to day operations, future planning must be responsive to environmental incidents, storm events, drought, flooding and potential changes that may arise from climate change. Emergency preparedness, contingency planning and risk management assessments are all important aspects of Hunter Water’s business. Resource constraints, weather extremes and future climate uncertainty are all factors that will drive an increasing need to focus on business resilience.

6.12.1 Actions to Manage Risks

Emergency Preparedness

Hunter Water is currently preparing contingency plans for critical wastewater network infrastructure to aid in the rapid response to environmental incidents. Consultants have been engaged by Hunter Water to complete contingency plans by December 2014. Twelve of 32 plans have been prepared thus far.

Root cause analysis is to be undertaken for every serious incident was reported to the NSW Environment Protection Authority (EPA).

Hunter Water aims to develop and implement cross business emergency response preparedness and training. A number of training projects were implemented during the reporting period, including

 A simulated corporate emergency management exercise was conducted during December 2013 involving 30+ employees  Awareness sessions were conducted for approximately 50 employees during November 2013 following the launch of the latest version of the Emergency Management Response Guidelines

Hunter Water’s Climate Change Adaptation Plan

The development of the LHWP considered climate change issues as part of modeling the water supply system. As climate predictions continue to improve, the latest research findings will be included in the water supply modeling so the potential impacts can be better incorporated into future planning.

During the reporting period Hunter Water commenced work on a revision of its Bushfire Management Plan and bushfire threat assessments were undertaken for twenty vulnerable assets.

Work has been undertaken on updating incident management and emergency preparedness and Compliance and Performance Report 2013-14 | 110 response frameworks and procedures during the year.

Sustainable Decision Making

Revised business case guidelines and decision making guidelines were developed during the year.

6.12.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.11.

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Table 6.11 EMP Goal 9: Environmental Resilience and Emergency Preparedness

Objectives Actions Targets Compliance

Build resilience for Hunter Water’s dams Revise the Hunter Water Bushfire Revised plan in place by December In progress. Bushfire threat assessments and catchments Management Plan to set out best 2015. for twenty vulnerable assets were practice in relation to fire preparedness, completed during the year. The Bushfire emergency response and catchment Management Plan revision will be recovery to address the risk of bushfire. completed in 2014-15.

Keep watching brief on emerging Report to be done by December 2016. R&D coordinator attended Research technologies to respond to major algal Symposium on Water Quality, which blooms. included notable updates on responding to blue green algal blooms.

Prioritise emergency preparedness Root cause analysis to be undertaken for 100% compliance. Compliant. Root cause analysis within the organisation every serious incident that is reported to undertaken for two projects. the EPA.

Collation of all root cause analysis 100% compliance. Compliant. Corrective actions will be results and incident management incorporated into operational support corrective actions implemented. systems, such as the Planning and Operations portal, and in the new corrective action register, when available.

Undertake a review of environmental To be completed by July 2013. Complete. Environmental response response / reporting process (sampling, procedure and revised reporting process clean-up & reporting) including a review and template developed and of procedure for reporting wet weather implemented. overflows.

Undertake periodic hazardous goods Audits of all sites containing hazardous An audit covering five sites was audits at treatment plants containing chemicals to be completed by December completed during the year. A total of ten these materials. 2016. sites have now been audited since 2012. There was also a comprehensive hazardous chemicals safety audit completed in 2013.

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Objectives Actions Targets Compliance

Contingency plans to aid in the rapid Plans updated by December 2014. On track response to environmental incidents for critical wastewater network infrastructure are prepared /updated and implemented.

Engineering approval process for To be completed by July 2013. On track to be completed by September changes made to control systems 2014. governing wastewater pump stations.

Identify critical assets and map GIS layer available and information On track. surrounding environmental constraints to loaded into ellipse by December 2014. allow contingency plans for access and repair during emergency works.

Develop and implement cross business Relevant staff are trained in emergency Ongoing. emergency response preparedness and response and preparedness. training.

Implement Hunter Water’s Climate Undertake vulnerability mapping of GIS layer available and information On track. Change Adaptation Plan operating assets vulnerable to climate loaded into ellipse by December 2016. change impact (specifically focusing on sea level rise, flooding, coastal recession and bushfire). A risk assessment of Hunter Water’s critical infrastructure assets are evaluated, mapped and response preparedness plans are in place to minimise environmental hazards associated with climate change.

Incorporating climate change adaptation Climate change considerations build into On track. planning into decision making tools and asset creation procedures and frameworks. sustainable decision making tools and frameworks by December 2015.

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Objectives Actions Targets Compliance

Strategically invest in R&D and staff Inclusion of climate change adaptation Complete. knowledge management initiatives that outcomes in research collaboration will build Hunter Water’s resilience to assessment criteria. climate change.

Sustainable decision making tools All strategies or option selection 100% compliance Five business cases approved with processes for preparation of a business expenditure >$3m. Two of these case that involve potential investment of business cases did not consider non- more than $3m are to consider non-cost cost factors however these projects factors using the sustainable decision related to projects with low sensitivity in making framework. relation to environment and community impacts (e.g. IT upgrades).

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6.12.3 Activities Planned for 2014-15

Remaining contingency plans for critical wastewater network infrastructure will be completed by December 2014.

Preparation of Land Management Plans for remaining rural holdings and revisions to the Bushfire Management Plan will be completed.

Climate change vulnerability mapping will continue to be undertaken during 2014-15.

Hunter Water will continue to implement cross business emergency response and preparedness training to key personnel in the organisation. Training programs will include principles of emergency management, including incident command and control structures, working in an Emergency Operation Centre and major crisis incident management.

6.13 Goal 10: Contribute to sustainability and environmental awareness within the community

To achieve sustainable water resource management it is necessary for Hunter Water to provide for broad community involvement in issues that affect the way people interact with the water cycle. We promote community ownership and responsible use of water resources through public education programs and school and community group talks. Hunter Water also has an annual sponsorship program designed to support a wide range of community and environmental activities throughout the region. Hunter Water has been publicly reporting on its environmental performance for many years.

6.13.1 Actions to Manage Risks

Developing Partnerships within the Community

Community partnerships were developed through the implementation of sponsorship programs that support relevant environmental community initiatives. The Sponsorship and Grants program was revised in 2013. The main changes to the program were the introduction of the Sustainability Grants Program which is focused towards water and wastewater education; and the introduction of a Community Infrastructure Funding Program with the stipulation that any funds must be allocated within our area of operations. The changes also specified that Hunter Water is moving away from general type sponsorship i.e. funding towards events. All 13 successful projects aimed to improve water education and conservation.

The 2013-14 Sustainability Grants included the following activities: Compliance and Performance Report 2013-14 | 114  Water efficiency project for a community sports ground,  Water education shows for schools and preschools,  Sustainable gardens for schools and community groups,  Sensory gardens for children living with a disability, and  Rehabilitation projects conducted in local creeks to improve waterways. Consultation for Burwood Beach Wastewater Treatment Works Stage 3 Upgrade

Hunter Water is developing a long-term plan to ensure Burwood Beach WWTW is able to continue meeting the needs of our community until 2040. As part of the consultation for Burwood Beach Wastewater Treatment Works Stage 3 Upgrade community members were invited to comment on future options for the treatment plant including environmental outcomes and cost implications.

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As part of the survey completed at the Community Open Day community members were specifically asked about their views on Hunter Water’s environmental performance. Although the survey size was small, it indicated positive community sentiment regarding Hunter Water’s environmental performance. Of the respondents, 80% said they Strongly Agreed or Agreed with the statement “I believe Hunter Water acts responsibly to continuously improve the environmental performance of Burwood Beach WWTW”. 27% of respondents said that before the Community Open Day their attitude to Hunter Water’s environmental performance was Very Positive or Positive, and 45% of respondents had a neutral attitude. After the Community Open Day 59% of respondents said their attitude to Hunter Water’s environmental performance was either More Positive or Much More Positive.

A Community Reference Group, consisting of seven representatives of local community organisations, and two independent customers, and an independent chair, met twice (in October 2013 and March 2013) to consider all aspects of this project, including environmental impacts.

Community Consultative Forum

Hunter Water’s Community Consultative Forum, which has a strong focus on environmental issues, met in September 2013, February 2014 and June 2014. The Forum comprises representatives of fifteen community organisations and local councils (see section 5.2). Environmental issues discussed at the Forum included:

 New land developments in the Port Stephens area affecting water quality in the catchment,  Recreational boating in waterways leading to bank erosion and lowered water quality,  Hunter Water fencing riparian zones on river banks to improve water quality,  Hunter Water cleaning up urban waterways, and  Weed control programs on Hunter Water owned land.

Infrastructure Projects

Hunter Water’s community consultation planning process evaluates and communicates environmental outcomes to the community. Examples include the Windale/Gateshead Wastewater Transfer Upgrade, completed in early 2014, which will reduce future system failures that previously led to untreated wastewater flowing to Jewells Swamp SEPP14 (state significant) Wetland; and the first stage of consultation for the Belmont No. 6 Rising Main Renewal, where the community were advised that a key reason for implementing the project was to prevent future network failures, which can lead to untreated wastewater flowing to Lake Macquarie.

Increase Community Awareness of Environmental Impacts Compliance and Performance Report 2013-14 | 115 Hunter Water is committed to consulting with the community and other stakeholders in relation to environmental impacts of operational activities and infrastructure projects. The following activities were undertaken by Hunter Water to inform the community of the Corporations activities and its impacts on the environment:

 Media releases were distributed for a number of sustainability initiatives, including a new cogeneration facility at Cessnock, business water efficiency and Water Wise Rules.  Hunter Water website was used to promote initiatives such as sustainability grants and showerhead exchanges.  Stalls at community events and hardware stores were used to promote catchment management, Water Wise Rules and showerhead exchanges.

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Community Awareness

In February 2014 Hunter Water engaged the Wetlands Environmental Education Centre (WEEC) to develop a school education program that will utilise the Steel River Advanced Water Treatment Plant education centre which is linked to the new KIWS. The education centre internal fit out is currently being designed and it is expected that the centre will open in early 2015.

Hunter Water actively promoted the vulnerability of our water supplies in the lead up to the LHWP being released in April 2014. This included radio interviews and newspaper articles, such as ‘top tips’ for saving water.

Hunter Water embarked on a marketing campaign promoting Water Wise Rules, which included advertising in print, on radio, television and local buses. This has also involved such initiatives as sponsoring the evening news weather segment, where dam levels were reported.

6.13.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.12.

6.13.3 Activities Planned for 2014-15

Activities planned for the 2014-15 reporting period include:

 Complete the fit-out of the education centre at Steel River.  A trial of the Hunter Water Education Program is planned for late 2014 and the program will commence in the 2015 school year.  The next round of sustainability grants will be announced mid-2014, with media releases, website updates and community events.  Hunter Water will continue the marketing campaign to promote the Water Wise Rules.

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Compliance and Performance Report 2013-14 | 116

Table 6.12 EMP Goal 10: Community Sustainability and Environmental Awareness

Objectives Actions Targets Compliance

Develop partnerships with the Maintain a sponsorship program which Inclusion of environmental outcomes in Complete. A review of the sponsorship community supports relevant community sponsorship assessment criteria. program was undertaken during the environmental initiatives. reporting period.

Seek opportunities to partner with Conduct annual community sponsorship Ongoing. stakeholder organisations and program. community groups in environmental initiatives.

Continue to inform the community of the Utilise the Consultative Forum, media, Increase awareness of Hunter Water Ongoing. Corporation’s activities and its impact on Hunter Water website, Hunter Water’s sustainable initiatives (measured by the the environment. community newsletter, school curriculum annual customer reputation survey). support materials and other information packages.

Consult with stakeholders and the Maintain and /or improve improved Ongoing. community in relation to operational reputation of Hunter Water as per above. activities and infrastructure project.

Assist the community understand the Prepare an annual report on Hunter Environmental Performance and This Compliance and Performance true value of water Water’s environmental performance and Compliance Report and Key Report will be available on the Hunter compliance with relevant requirements. Performance Indicators Report to be Water website by 1 September 2014. posted on the Hunter Water website by September each year. Promote community education around Ongoing. water efficiency and sustainable urban water management.

Fit out education facility at the recycled In progress. Due for completion in late water plant at Steel River. 2014.

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Objectives Actions Targets Compliance

Work with AWA to develop water Increased awareness of the water cycle, Hunter Water has been working with education resources for schools to tie in treatment, water efficiency waste water Wetlands Environmental Education with the National Curriculum. Promote treatment and other water related Centre (WEEC) to develop a school use of the resources in the Lower Hunter matters. education program that will utilise the once developed. Steel River Advanced Water Treatment Plant education centre.

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6.14 Goal 11: Continue to improve environmental management practices and promote an environmentally responsible culture

Hunter Water’s Environmental Management System provides a framework for developing, implementing, and monitoring our corporate environmental commitments. We will strive for continual improvement in our environmental and social performance which will be measured by performance indicators and publicly reported each year. Hunter Water has committed to having an Integrated Quality Management System developed by December 2015 which will include a certified Environmental Management System which is also a requirement of the 2012-2017 Operating Licence.

6.14.1 Actions to Manage Risks

ISO Certification of Environmental Management System (EMS)

A pre-certification audit was conducted in June 2014 with six minor non-conformances noted. These non-conformances were already part of the EMS Project Plan and activity is in-progress to close out these actions prior to certification. The pre-certification audit found that Hunter Water are adequately prepared for the ISO 14001 Certification Audit.

6.14.2 Performance Against Targets

The performance against the 2013-17 EMP targets for this goal is shown in Table 6.13.

6.14.3 Activities Planned for 2014-15

Environmental Management System

The ISO 14001 Certification Audit will be undertaken in October 2014. Surveillance Audits will be conducted by a certifying body in December 2014 and June 2015, in order to confirm ongoing implementation of the EMS. Hunter Water’s aim is to maintain certification. This will be managed by addressing any non-conformances identified in the external audits within the timeframes issued by the certifying body.

An environmental risk assessment and EMP review is scheduled to be undertaken during 2014-15.

Environmental Training

Environmental training for Hunter Water staff is proposed in the following areas: Compliance and Performance Report 2013-14 | 119  Environmental incident management,  Acid sulphate soils,  Aboriginal heritage conservation guidelines, and  Environmental impact assessment and environmental management in construction.

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Table 6.13 EMP Goal 11: Promote an Environmentally Responsible Culture

Objectives Actions Targets Compliance

Achieve and maintain ISO certification of Implement the Environmental Achieve certification by September 2014. On track. Pre-certification audit Hunter Water’s Environmental Management System Project completed in June 2014. Certification Management System Improvement Plan. audit scheduled for October 2014.

An environmentally aware and Maintain an environmental training All training to be completed in Training needs analysis was updated in committed workforce needs analysis and forward training accordance with needs analysis. 2014. program for staff

Develop an online environmental All staff to complete training module by Complete. awareness training program that will be December 2013. completed by all staff and be incorporated into new staff induction process

Participate in NSW Government Achieve gold membership status by Participation in Sustainability Advantage Sustainability Advantage program. December 2014. will continue, however the gold membership application has been deferred to focus on the EMS certification.

Environmental awareness and proven Environmental inductions and 100% compliance. Environmental inductions and performance from our contractors preparations of site specific preparation of site specific Environmental Management Plans Environmental Management Plans were mandatory for all construction works that completed for all construction works. can affect environment

Audit environmental performance Undertake routine internal and external Maintain certification. An Annual Internal Management System audits of environmental system to Audit Program is in place. Certification maintain certification. audit by external independent auditor is scheduled for October 2014.

Periodically undertake internal Minimum of 2 internal environmental Two internal environmental compliance compliance audits against environmental compliance audits each year. audits were completed during the year. requirements.

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7 PERFORMANCE MONITORING

7.1 Introduction

Chapter seven provides an overview of Hunter Water’s performance monitoring. It reports on the 2013-14 performance against the system performance standards for water pressure, water continuity and wastewater overflow, as set in the Operating Licence. For 2013-14 Hunter Water achieved full compliance with these standards.

This chapter also reports on performance against National Water Initiative (NWI) indicators, for the 2013-14 National Performance Report, and supplementary indicators set by IPART covering the areas of water quality, environment, infrastructure and customers.

7.1.1 Water Pressure Standard

The water pressure standard is:

Hunter Water must ensure that no more than 4,800 properties experience a water pressure failure in a financial year (Water Pressure Standard).

Water Pressure Performance

Hunter Water met the performance requirement of this standard for 2013-14. A total of 1,920 properties experienced low pressure, which is below the limit specified in the standard.

Performance in 2013-14 was consistent with the previous year, whereby water pressures were affected by a typical increase in demands during January due to warm and dry weather conditions. Notably, the maximum daily demand that occurred on 21 January 2014 was 316 ML/day compared to 330 ML/day maximum in January 2013.

Figure 7.1 Water Pressure Standard

Compliance and Performance Report 2013-14 | 121

Compliance and Performance Report 2013-14 | 121

7.1.2 Water Continuity Standard

The water continuity standard is:

Hunter Water must ensure that in a financial year:

a) No more than 10,000 properties experience an unplanned water interruption that lasts more than 5 continuous hours; and

b) No more than 5,000 properties experience 3 or more unplanned water interruptions that each lasts more than 1 hour.

Water Continuity Performance Standard (a)

Hunter Water recorded 2,347 properties with an unplanned outage of more than five hours during 2013- 14. Two events of significance contributed to the outcome, both of which involved complex management and impacted approximately 1,000 properties between them. Hunter Water’s Emergency Operations Centre was activated to manage a main break at Pelton, which involved laying 200 metres of temporary main through an operational mine site. A large 600mm main break at Wangi impacted the high areas of Morisset, Mirrabooka and Cooranbong. Restoration was delayed due to logistical issues including the size of the break and distance between isolating valves.

Figure 7.2 Water Continuity Standard (a)

Compliance and Performance Report 2013-14 | 122

Compliance and Performance Report 2013-14 | 122

Water Continuity Performance Standard (b)

Hunter Water recorded 1,653 properties that experienced 3 or more unplanned outages during 2013- 14. The result is consistent with Hunter Water’s long term average for this measure. Hunter Water manages perofrmance through analysis of water main failure history and use of a water main replacement model to determine when water mains are to be replaced.

Figure 7.3 Water Continuity Standard (b)

Compliance and Performance Report 2013-14 | 123

Compliance and Performance Report 2013-14 | 123

7.1.3 Wastewater Overflow Standard

The wastewater overflow standard is:

Hunter Water must ensure that in a financial year:

a) No more than 5,000 properties (other than public properties) experience an uncontrolled wastewater overflow in dry weather.

b) No more than 45 properties (other than public properties) experience 3 or more uncontrolled wastewater overflows in dry weather.

Wastewater Overflow Performance Standard (a)

The slight increase for the 2013-14 reporting year can be attributed to a reduction in annual rainfall for the majority of the operational area, contributing to increased root intrusion and associated effects. Notwithstanding the result for number of uncontrolled overflows, the 2013-14 result was well below the long-term trend, which can be attributed to an ongoing program to line mains affected by repeat overflows, improved jetting equipment and work practices.

Figure 7.4 Wastewater Overflow Standard (a) Performance

Compliance and Performance Report 2013-14 | 124

Compliance and Performance Report 2013-14 | 124

Wastewater Overflow Performance Standard (b)

This indicator measures repetitive impact to private properties. The result for the 2013-14 year is slightly higher than the past two reporting years, which can be attributed to a reduction in annual rainfall for the majority of the operational area. The result was well below the long-term trend and is attributable in part to targeted maintenance of assets identified as being at risk. In the event a property suffers a second overflow within twelve months, related assets are inspected by CCTV, and if necessary the main is lined to further reduce the likelihood of a third incident.

Figure 7.5 Wastewater Overflow Standard (b) Performance

Compliance and Performance Report 2013-14 | 125

Compliance and Performance Report 2013-14 | 125

7.2 Performance Indicators 2013-14

In addition to the suite of NWI Indicators that Hunter Water report performance against each year, a supplementary set of indicators is set by IPART under the Operating Licence. Table 7.2 summarises performance against these indicators.

7.2.1 IPART Performance Indicators: Water Quality

WQ1 (H) Microbiological compliance - percentage of routine water quality samples that comply with the Australian Drinking Water Guidelines for E. Coli

Figure 7.6 shows that in 2013-14 99.9 per cent of all routine water quality samples complied with the Australian Drinking Water Guidelines for E.coli.

Figure 7.6 WQ1 (H) Performance – Microbiological Compliance

Compliance and Performance Report 2013-14 | 126

Compliance and Performance Report 2013-14 | 126

WQ1.2 Chemical/physical compliance - percentage of routine water quality samples that comply with the Australian Drinking Water Guidelines for key chemical/physical parameters

In 2013-14, 99.7 per cent of all routine water quality samples complied with the Australian Drinking Water Guidelines for chemical/physical parameters, as shown in Figure 7.7. This represents five routine samples from over 1,800 samples returning a result above aesthetic guideline levels. This is an indication of the high quality of water supplied to customers with respect to chemical/physical parameters.

Figure 7.7 WQ1.2 Performance – Compliance with Chemical/Physical Parameters

“In general, the physical characteristics of water are not of direct public health concern, but they do affect the aesthetic quality of the water, which largely determines whether or not people are prepared to drink it”. Compliance and Performance Report 2013-14 | 127

(ADWG, Version 2.0 Updated December 2013).

Compliance and Performance Report 2013-14 | 127

7.2.2 IPART Performance Indicators: Infrastructure

I1 The number of properties affected by an unplanned water interruption duration of more than 1 hour and less than or equal to 5 hours

Hunter Water has managed an increase in the number of properties experiencing a supply interruption over the 2013-14 reporting year, without adversely impacting the Operating Licence target (see section 7.1.2). There were 34 events involving more than 200 properties per interruption, and contributed to the count by approximately 18,000. The remainder of the count were due to lesser scale events.

The two most significant events measured both involved breaks on 500mm trunk mains in the areas of New Lambton / Charlestown (3,248) and Maryland (1,625). A reduction in pressure and supply interruption is an expected consequence of major supply main breaks, however supply was returned to the majority of these customers within 5 hours due to sound incident management and maintenance response.

Figure 7.8 I1 Performance: Properties Affected by an Unplanned Water Interruption

Compliance and Performance Report 2013-14 | 128

Compliance and Performance Report 2013-14 | 128

I2 Occurrences of water interruptions to affected properties (i.e. the number of properties experiencing 3 or more planned and unplanned water interruptions of more than one hour duration)

Results indicate performance in 2013-14 is consistent with the long term average. Approximately 500 of those properties experiencing multiple interruptions were related to the main break at Pelton, detailed under Indicator I3.

Figure 7.9 I2 Performance: Properties Experiencing Multiple Interruptions

Compliance and Performance Report 2013-14 | 129

Compliance and Performance Report 2013-14 | 129

I3 Events leading to planned or unplanned water interruption where 250 or more properties experience an interruption of over 5 hrs duration

Figure 7.10 and Table 7.1 highlight an improved result this year, in part due to Hunter Water’s increased focus on incident escalation.

Figure 7.10 I3 Performance: Events interrupting at least 250 Properties for Over Five Hours

Table 7.1 I3 Interruptions to at least 250 Properties for Over Five Hours: Overview of Events

Job Date Location - Number of Duration Comments Interruption Number Street/Suburb Properties (hours) Type

427980 19.10.13 Ellalong Rd Pelton 498 5.3 250mm break Unplanned

Compliance and Performance Report 2013-14 | 130 435455 22.04.14 Various streets – Wangi 494 10.4 600mm break Unplanned

The incidents at Pelton and Morisset are examples where a combination of factors can increase the interruption times. These factors included:

 Location of the break. At Pelton the main was located within an operational coal mine, the main was inaccessible, and the installation of 200m of a temporary above ground polyethylene main was required (necessitating on-site plastic welding). The break was located between the water pump station and the reservoir, which impacted customers in the high areas of Bellbird, Kitchener and Abernethy. A replacement main has since been commissioned outside the boundary of the mine site to improve system performance, improve accessibility and mitigate risk.

Compliance and Performance Report 2013-14 | 130

 Large assets with multiple valves. The break at Wangi impacted a wide area as the 600mm main is the primary supply between Wangi and Morisset. The remaining two 375mm trunk mains were insufficient to maintain full water supply whilst water was discharging from the break. Multiple valves both on the main and cross connections increased the time required to isolate the main and restore supply. As the main was off-line for several days to undertake repairs, Hunter Water utilised the connection with Wyong Shire Council’s water supply system to assist with replenishment of local storage reservoirs.

Compliance and Performance Report 2013-14 | 131

Compliance and Performance Report 2013-14 | 131

I4 (H) The number of residential properties affected by planned water supply interruptions in peak hours (5am-11pm)

The level of planned interruptions for 2013-14 was consistent with the previous reporting year. The primary reason was a reduction in the number of planned water main replacements and new main connections over the last two years.

Figure 7.11 I4 (H) Performance: Residential Properties Affected by Peak Hour Planned Interruptions

Compliance and Performance Report 2013-14 | 132

Compliance and Performance Report 2013-14 | 132

I5 The number of properties in the utility's drinking water supply network experiencing a water pressure failure which is occasional or recurrent, but not permanent

The water pressure indicator result is impacted by weather patterns and is associated with instantaneous demand during events occurring in a given year. Performance in 2013-14 was consistent with the previous reporting year, with a typical increase in demands during January 2014 due to warm and dry weather conditions. Notably, the maximum daily demand that occurred on 21 January 2014 was 316 ML/day compared to a 330ML/day maximum in January 2013.

Figure 7.12 I5 Performance: Properties Experiencing a Water Pressure Failure

Compliance and Performance Report 2013-14 | 133

Compliance and Performance Report 2013-14 | 133

I6 Number of High Priority sewage overflows per 100km of sewer main responded to in a year

A slight decline in performance against this indicator can be attributed to decreased rainfall for the majority of the Hunter Water operational area, which results in increased tree root intrusion. The result represents the mean for the past five reporting years. The trend in the volume of high priority sewage overflows is consistent with the overall trend for all uncontrolled overflows.

Figure 7.13 I6 Performance: High Priority Sewage Overflows per 100km of Sewer Main

Note: In 2012-13 Hunter Water reported the number of Priorirty 1 sewage overflows. IPART’s Hunter Water Corporation Reporting Manual (Issue No. RM-HWC-V2, June 2013) now requires reporting of High Priority sewage overflows, which is noted to be equivalent to Priority 1 for Hunter Water.

Compliance and Performance Report 2013-14 | 134

Compliance and Performance Report 2013-14 | 134

I7 Number of Medium Priority sewage overflows per 100 km of sewer main responded to in a year

Medium priority overflows were slightly higher than the previous two reporting years. The proportion of medium priority overflows to total overflows (25%) is consistent across the long term. The current reporting year saw the region experience long dry-spells interspersed with intense rain events, which increases the incidences of medium priority overflows.

Figure 7.14 I7 Performance: Medium Priority Sewage Overflows per 100km of Sewer Main

Note: In 2012-13 Hunter Water reported the number of Priorirty 2 sewage overflows. IPART’s Hunter Water Corporation Reporting Manual (Issue No. RM-HWC-V2, June 2013) now requires reporting of Medium Priority sewage overflows, which is equivalent to Priority 2 for Hunter Water.

Compliance and Performance Report 2013-14 | 135

Compliance and Performance Report 2013-14 | 135

I8 Number of residential customers' dwellings affected by sewer spills not contained within 1 hour of notification

This is the third year of improved performance in containment of all medium and high priority sewer spills. Within one hour the job is logged, dispatched to crews and the blockage or other problem is rectified. Improvements have been a result of a number of factors, including the increased visibility of pending jobs by maintenance staff since the introduction of mobile computing in vehicles.

Figure 7.15 I8 Performance: Residential Dwellings Affected by Sewer Spills for Over One Hour

Compliance and Performance Report 2013-14 | 136

Compliance and Performance Report 2013-14 | 136

7.2.3 IPART Performance Indicators: Environment

E1 Total number of proceedings and Penalty Notices under the Protection of the Environment Operations (POEO) Act 1997 issued to the water utility

Hunter Water received no penalty infringement notices from the NSW Environment Protection Authority in 2013-14.

Figure 7.16 E1 Performance: POEO Act Proceedings and Penalty Notices - Hunter Water

Compliance and Performance Report 2013-14 | 137

Compliance and Performance Report 2013-14 | 137

E2 Total number of proceedings and Penalty Notices under the Protection of the Environment Operations (POEO) Act 1997 issued to contractors engaged by the water utility

During 2013-14, there was one penalty infringement notice issued to a contractor engaged by Hunter Water under the Protection of the Environment Operations (POEO) Act 1997. The contractor was working on the Kooragang Industrial Water Scheme (KIWS) pipeline and the infringement notice related to inadequate erosion and sediment controls in place.

Figure 7.17 E2 Performance: POEO Act Proceedings and Penalty Notices - Contractors

Compliance and Performance Report 2013-14 | 138

Compliance and Performance Report 2013-14 | 138

E3 Total electricity consumption by water assets (kWh/ML of water supplied to be included)

Electricity consumption per ML of water supplied has been trending down over the past six years, showing a 23 per cent decrease over five years. Hunter Water has implemented a range of energy efficiency initiatives at key water pumping stations that have contributed to this result, such as replacing standard drives, improvements to pumping and control schemes and replacement of inefficient pumps.

Figure 7.18 E3 Performance: Total Electricity Consumption by Water Assets

Compliance and Performance Report 2013-14 | 139

Compliance and Performance Report 2013-14 | 139

E4 Total electricity consumption by sewer assets (kWh/ML of sewage collected)

Electricity consumption per ML of sewage collected has increased in 2013-14 compared to 2012-13. Energy efficiency initiatives have been implemented across sewer assets however it is noted that wastewater treatment plant upgrades can often increase energy consumption requirements. Upgrades at Farley, Shortland, Edgeworth, Toronto and Branxton have been completed in the last three years. It is also noted that there has been reduced inflows into the plants in 2013-14 which would be associated with reduced wet weather flows resulting from the reduced rainfall. So whilst energy consumption has remained similar to 2013-14 the reduction in inflows has caused the energy consumption per ML to increase.

Figure 7.19 E4 Performance: Total Electricity Consumption by Sewer Assets

Compliance and Performance Report 2013-14 | 140

Compliance and Performance Report 2013-14 | 140

E5 Electricity consumption from renewable sources or generated by water utility expressed as a percentage of total electricity consumption

During 2013-14, a cogeneration facility was commissioned at Cessnock Wastewater Treatment Works to generate electricity from digester biogas. Photo-voltaic solar panels installed on Hunter Water’s Head Office roof in 2013 continued to generate renewable energy to supplement power requirements for the Head Office building. The commissioning of the cogeneration facility and solar panels explains the increase in electricity consumption from renewable sources. Also, in May 2014 Delta Electricity handed over hydro-electric power generators located at Chichester Dam and within the Chichester Trunk Gravity Main to Hunter Water to own and operate.

Figure 7.20 E5 Performance: Electricity from Renewable Sources or Self-Generated

Compliance and Performance Report 2013-14 | 141

Compliance and Performance Report 2013-14 | 141

E6 Total mass of biosolids produced by the water utility

Biosolids production increased slightly in 2013-14. A number of the treatment plant sludge lagoons were dewatered during 2013-14, including Dora Creek, Branxton, Farley, Cessnock, Paxton, Shortland, Dungog and Tanilba Bay. Dewatering sludge lagoons involves removal of biosolids that have been accumulating over a number of years, therefore resulting in a large volume of biosolids requiring management.

Figure 7.21 E6 Performance: Total Mass of Biosolids Produced

Compliance and Performance Report 2013-14 | 142

Compliance and Performance Report 2013-14 | 142

E7 Percent of solid waste recycled or reused expressed as a percentage of solid waste generated

In 2013-14, Hunter Water continued to undertake waste recycling, with the majority of waste being generated by capital works projects and operational spoil management reuse contract. The recycling percentages were lower than achieved in recent years, due to a large amount of water treatment residuals being stockpiled onsite rather than being sent off-site for recycling.

Figure 7.22 E7 Performance: Solid Waste Recycled or Reused

Note: This indicator does not include biosolids reuse, in accordance with the definition in IPART’s Hunter Water Corporation Reporting Manual (Issue No. RM-HWC-V2, June 2013).

Compliance and Performance Report 2013-14 | 143

Compliance and Performance Report 2013-14 | 143

E8 Total area of clearing of native vegetation

During 2013-14, approximately 0.56 hectares of native vegetation was cleared for Hunter Water capital projects and developer works projects related to system upgrades.

Figure 7.23 E8 Performance: Total Area of Clearing of Native Vegetation

Compliance and Performance Report 2013-14 | 144

Compliance and Performance Report 2013-14 | 144

E9 Total area of native vegetation rehabilitated

During 2013-14, Hunter Water rehabilitated approximately 160 hectares of land in the drinking water catchment. The locations of the tree plantings include Hunter Water land adjacent to Grahamstown Dam, Chichester Dam and at Irrawang Swamp.

The tree planting has been funded by a grant from the Australian Government’s National Urban Water and Desalinisation Plan. The plantings will contribute to Hunter Water’s carbon offsets with the plantings from this program offsetting the emissions produced from the operation of recycled water plants at Kooragang and Branxton. The tree planting will also improve the protection of our drinking water catchments and biodiversity on Hunter Water land.

Figure 7.24 E9 Performance: Total Area of Native Vegetation Rehabilitated

Compliance and Performance Report 2013-14 | 145

Compliance and Performance Report 2013-14 | 145

E10 Total area of native vegetation gain due to rehabilitation, replanting and protection by the water utility

Hunter Water undertook a considerable amount of tree planting within the drinking water catchment during the reporting period. The total area of native vegetation gain for 2013-14 was approximately 159 hectares. The tree planting was funded by the Australian Government’s National Urban Water and Desalinisation Plan.

Figure 7.25 E10 Performance: Total Area of Native Vegetation Gain

Compliance and Performance Report 2013-14 | 146

Compliance and Performance Report 2013-14 | 146

E11 Total number and nature of proceedings or penalty notices of conditions under licences issued to the water utility by NSW Office of Water for water management

No proceedings or penalty notices relating to Water Management Licence conditions have been issued to Hunter Water by the NSW Office of Water since the licence arrangements have been in place.

Figure 7.26 E11 Performance: Proceedings or Penalty Notices Issued by NOW

Compliance and Performance Report 2013-14 | 147

Compliance and Performance Report 2013-14 | 147

7.2.4 IPART Performance Indicators: Customers

C1 The percentage of complaints resolved within 10 business days

Complaint resolution remained a focus for Hunter Water in 2013-14 with a seven per cent improvement in performance achieved compared to 2012-13. Strategies put in place during 2012-13 have proven effective in reducing the number of aged complaints. Active complaint volumes have remained stable throughout the year. Hunter Water introduced proactive internal stakeholder engagement to assist complaint resolution performance in the last quarter of 2013-14. Early indications have been positive.

Figure 7.27 C1 Performance: Complaints Resolved Within 10 Business Days

Compliance and Performance Report 2013-14 | 148

Compliance and Performance Report 2013-14 | 148

C2 Per cent of calls abandoned

The percentage of calls abandoned decreased in 2013-14. This is an overall 43% decrease from 2011-12 and the best result in five years. This is a result of two factors: the introduction of a knowledge management tool enabling the Customer Services representatives to access information easier; and a good understanding of call volumes and call arrivals to ensure Hunter Water’s Call Centre is correctly resourced. Hunter Water’s measure of calls abandoned provides a good indicator of the customer’s experience with the Hunter Water Call Centre by measuring the ‘actual’ waiting time to speak to a Customer Service Representative. There is no industry customer service standard for measuring per cent of calls abandoned with Hunter Water opting for a measure that provides a responsive customer service channel to assist with satisfying customers.

Figure 7.28 C2 Performance: Per cent of Calls Abandoned

Compliance and Performance Report 2013-14 | 149

Compliance and Performance Report 2013-14 | 149

C3 Per cent of metered accounts of customers that receive a bill not based on a business meter read for one year

There is no comparison data for this new measure. It reflects the percentage of accounts that have either required a customer read or have had the volume of water used based on their average during the 2013-14 period. It is an indication of properties that are difficult to access for meter reading purposes, which is an ongoing challenge due to Work Health and Safety (WHS) and customers increasing their property security. During 2014-15 a review of the causes of inaccessible meters and development of a strategy to mitigate the increasing number of properties in this category will be completed. The strategy may include proposing additional Miscellaneous Fees to encourage customers to resolve these issues.

Figure 7.29 C3 Performance: Metered Accounts with Bills Not Based on a Meter Read

Compliance and Performance Report 2013-14 | 150

Compliance and Performance Report 2013-14 | 150

C4 The total number of residential customers disconnected for non-payment of amounts owed to the utility

There were no residential customers disconnected from Hunter Water’s services in 2013-14.

Figure 7.30 C4 Performance: Residential Customers Disconnected for Non-Payment

Compliance and Performance Report 2013-14 | 151

Compliance and Performance Report 2013-14 | 151

C5 The total number of non-residential customers disconnected for non-payment of amounts owed to the utility

There were no non-residential customers disconnected from Hunter Water’s services in 2013-14.

Figure 7.31 C5 Performance: Non-Residential Customers Disconnected for Non-Payment

Compliance and Performance Report 2013-14 | 152

Compliance and Performance Report 2013-14 | 152

C6 Total number of residential customers on whom water flow restrictions have been imposed

There were 1,381 residential properties restricted for non-payment during 2013-14, which was an increase on previous years. The increased number of restrictions occurred during the transition of a new debt collection agency contract from one provider to another and was undertaken to prevent further debt growth during this period. Restriction is an effective method of debt recovery and is used selectively in situations where it is considered most suitable.

Figure 7.32 C6 Performance: Water Flow Restricted Residential Customers

*Note: the data for 2008-09 up to and including 2011-12 includes non-residential properties.

Compliance and Performance Report 2013-14 | 153

Compliance and Performance Report 2013-14 | 153

C7 Total number of non-residential customers on whom water flow restrictions have been imposed

There were 49 non-residential properties restricted for non-payment during 2013-14. This method of debt collection is used where it is considered the most effective and cost efficient means of debt recovery, as assessed on a case-by-case basis. The low levels of aging non-residential debt reflects the success of Hunter Water’s credit management policy and strategies deployed to prevent debt growth in this category.

Figure 7.33 C7 Performance: Water Flow Restricted Non-Residential Customers

Compliance and Performance Report 2013-14 | 154

Compliance and Performance Report 2013-14 | 154

C8 Number of residential customers per 1000 residential properties experiencing financial difficulty who are being assisted through the utility’s hardship program or payment plans

Hunter Water recognises it is sometimes difficult for individual customers to find the money to cover all their household bills. These periods of financial pressure may be short or long term and usually cause considerable stress for both individuals and families.

Hunter Water seeks to identify and assist customers experiencing financial hardship.

Hunter Water has had its Account Assistance (hardship) policy in place since 2012 with 2013-14 being the first full year of its implementation. Customers that are part of the Account Assistance Program are supported with ongoing scheduled payments and interest free plans to help manage and reduce outstanding debt. This measure also includes any account that had a payment plan (more than two instalments) started or active during any part of 2013-14 but may not necessarily be part of the Account Assistance Program as the support required was short term.

This new indicator has no comparison data to assess trends.

Figure 7.34 C8 Performance: Residential Customers Assisted Through Hardship Programs

Compliance and Performance Report 2013-14 | 155

Compliance and Performance Report 2013-14 | 155

C9 Percentage of residential customers in C8 who are: (a) not meeting ongoing water and sewerage costs (debt increasing) (b) covering ongoing water and sewerage costs (debt stable) (c) covering ongoing costs and portion of arrears (debt reducing)

The majority of customers being assisted through hardship programs during the period (76%) are either maintaining stable debt or reducing their arrears. The minority of customers (24%) with debt increasing will be analysed further to ensure adequate assistance and arrangements are in place.

This new measure has no comparison data to assess trends.

Figure 7.35 C9 Performance: Residential Customer Debt Trends

Note: The calculation of these percentages was undertaken by deducting the end of year balance from the start of the year balance. It did not take into consideration the timing of entry into either a payment plan or the Account Assistance Program and how the account has been managed during the assessed period.

Compliance and Performance Report 2013-14 | 156

Compliance and Performance Report 2013-14 | 156

C10 Percentage of residential customers in C8 who pay by: (a) payment plan (b) Centrepay

Hunter Water offers various account assistance programs for customers experiencing financial hardship. The majority of customers in C8 (being assisted through hardship programs) are using scheduled payment plans to pay their debts and smooth payment. Centrepay was introduced from 1 July 2013. Centrepay involves direct transfers from customers’ Centrelink welfare payments towards their Hunter Water account. The take-up of this option is continuing to grow.

The remaining 5.1% not shown in Figure 7.37 do not use either of these options and have scheduled direct debit payments deducted or have only recently signed onto the Account Assistance program and yet to commence payments.

Figure 7.36 C10 Performance: Residential Customers Using Payment Plans or Centrepay

Compliance and Performance Report 2013-14 | 157

Compliance and Performance Report 2013-14 | 157

C11 Break up by percentage of residential customers who no longer meet C8 by exiting the utility’s hardship program or payment plans because: (a) they have paid off their outstanding debt (b) they have been flow restricted (c) other

The vast majority of residential customers experiencing financial difficulty (67%) leave the Account Assistance Program or finalise their payment plans because they have met the requirements and overcome their need for ongoing payment assistance. The small proportion of customers that were restricted (9%) were made up of 271 accounts of which 240 failed to comply with the agreed payment plan terms. The remaining 31 restricted customers had participated on the Account Assistance program and were not compliant with its requirements. Those customers being case managed under the Account Assistance Program are given multiple chances to comply with agreed arrangements before they are exited from the program.

Figure 7.37 C11 Performance: Residential Customers Exiting Hardship Programs

Compliance and Performance Report 2013-14 | 158

Compliance and Performance Report 2013-14 | 158

Table 7.2 IPART Indicators IPART Indicator Units 2009-10 2010-11 2011-12 2012-13 2013-14 WQ1(H) Microbiological compliance – percentage of routine water quality samples that % samples 99.9 99.4 100 99.9 99.9 comply with the ADWG for E. Coli WQ1 Chemical/physical compliance – percentage of routine water samples that % samples 99.6 99.9 99.9 99.9 99.7 comply with the ADWG for key chemical/physical parameters I1 The number of properties affected by an unplanned water interruption duration Properties 43,705 42,322 34,993 35,870 48,014 of more than 1 hour and less than or equal to 5 hours I2 Occurrence of water interruptions to affected properties (i.e. the number of Properties 2,737 6,624 3,177 1,834 2,466 properties experiencing 3 or more planned and unplanned water interruptions of more than one hour duration) I3 Events leading to planned or unplanned water interruption where 250 or more Events - 5 4 3 2 properties experience an interruption of over 5 hours duration I4(H) The number of residential properties affected by planned water supply Properties 12,980 16,844 17,152 11,760 12,275 interruptions in peak hours (5am-11pm) I5 The number of properties in the utility’s drinking water supply network Properties 1,182 1,860 698 1,473 1,447 experiencing a water pressure failure which is occasional or recurrent, but not permanent I6 Number of high priority1 sewage overflows per 100 km of sewer main Overflows 19.1 24.1 18.9 15.7 21.1 responded to in a year I7 Number of medium priority2 sewage overflows per 100 km of sewer main Overflows 68.3 67.5 51.6 51.0 59.4 responded to in a year I8 Number of residential customers’ dwellings affected by sewer spills not Dwellings 2,503 2,807 2,334 2,036 1,417 contained within 1 hour of notification E1 Total number of proceedings and penalty notices under the Protection of the Number 1 - - 2 - Environment Operations (POEO) Act 1997 issued to the water utility E2 Total number of proceedings and penalty notices under the Protection of the Number - - - - 1 Environment Operations (POEO) Act 1997 issued to contractors engaged by the water utility E3 Total electricity consumption by water assets (kWh/ML of water supplied) kWh/ML 503 498 456 435 430 E4 Total electricity consumption by sewer assets (kWh/ML of sewage collected) kWh/ML 673 612 559 624 672 E5 Electricity consumption from renewable sources or generated by water utility % of total - - - 0.03 0.29 expressed as a percentage of total electricity consumption E6 Total mass of biosolids produced by the water utility Tonnes 4,920 4,911 5,532 5,778 5,116 E7 Percent of solid waste recycled or reused expressed as a percentage of solid % recycled 93 95 91 87 69 waste generated E8 Total area of clearing of native vegetation Hectares 3 3 3 3 0.6

Compliance and Performance Report 2013-14 | 159

IPART Indicator Units 2009-10 2010-11 2011-12 2012-13 2013-14 E9 Total area of native vegetation rehabilitated Hectares 3 3 3 3 160.1 E10 Total area of native vegetation gain due to rehabilitation, replanting and Hectares 3 3 3 3 159.5 protection by the water utility E11 Total number and nature of proceedings or penalty notices of conditions under Number - - - - - licences issued to the water utility by NOW for water management C1 The percentage of complaints resolved within 10 business days % of complaints - - - 81 88 C2 Percent of calls abandoned % abandoned 4.1 5.4 6.1 4.7 3.5 C3 Percent of metered accounts of customers that receive a bill not based on a % of accounts 3 3 3 3 3.05 business meter read for one year C4 The total number of residential customers disconnected for non-payment of Number - - - - - amounts owed to the utility C5 The total number of non-residential customers disconnected for non-payment Number - - - - - of amounts owed to the utility C6 Total number of residential customers on whom water flow restrictions have Number 1,016 908 350 1,118 1,381 been imposed C7 Total number of non-residential customers on whom water flow restrictions Number - - - 74 49 have been imposed C8 Number of residential customers per 1,000 residential properties experiencing Number/ 1,000 3 3 3 3 18.8 financial difficulty who are being assisted through the water utility’s hardship properties program or payment plans C9 Percentage of residential customers in C8 who are: % 3 3 3 3 a. Not meeting ongoing water and sewerage costs (debt increasing) 24.4 b. Covering ongoing water and sewerage costs (debt stable) 36.8 c. Covering ongoing costs and portion of arrears (debt reducing) 38.8 C10 Percentage of residential customers in C8 who pay by: % 3 3 3 3 a. Payment plan 88.1 b. Centrepay 6.8 C11 Break up by percentage of residential customers who no longer meet C8 by % 3 3 3 3 exiting the water utility’s hardship program or payment plans because: a. They have paid off their outstanding debt 66.7 b. They have been flow restricted 8.5 c. Other 24.8 Notes: 1. High priority is equivalent to Priority 1 for Hunter Water, in accordance with IPART’s Hunter Water Corporation Reporting Manual (Issue No. RM-HWC-V2, June 2013). 2. Medium priority is equivalent to Priority 2 for Hunter Water, in accordance with IPART’s Hunter Water Corporation Reporting Manual (Issue No. RM-HWC-V2, June 2013). 3. New indicator from 1 July 2013. Historic data is not available for comparison.

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Table 7.3 National Water Initiative Indicators NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 W1 Volume of water sourced from surface water (ML) 63,433 65,676 61,035 66,060 67,253 W2 Volume of water sourced from groundwater (ML) 7,117 2,333 2,159 2,561 4,230 W3 Volume of water sourced from desalination (ML) - - - - - W3.1 Volume of water sourced from desalination of marine water - - - - - W3.2 Volume of water sourced from desalination of groundwater - - - - - W3.3 Volume of water sourced from desalination of surface water such - - - - - as dams, rivers or irrigation channels W4 Volume of water sourced from recycling (ML) 2,899 2,186 1,873 1,874 2,505 W5 Volume of water received from bulk supplier (ML) - - - - 267 W5.1 Volume of potable water received from bulk water supplier - - - - 267 W5.2 Volume of non potable water received from bulk supplier - - - - - W6 Volume of bulk recycled water purchased (ML) - - - - - W7 Total sourced water (ML) 73,449 70,195 65,067 70,495 74,255 W8 Volume of water supplied – Residential (ML) 38,463 37,087 34,911 38,370 40,150 W8.1 Volume of potable water supplied – residential - 37,087 34,911 38,370 40,150 W8.2 Volume of non-potable water supplied – residential - - - - - W9 Volume of water supplied – commercial, municipal and industrial 21,081 21,068 20,923 22,670 23,580 (ML) W9.1 Volume of potable water supplied – commercial, municipal and - 21,068 19,225 21,026 21,306 industrial (ML) W9.2 Volume of non-potable water supplied – commercial, municipal and - - 1,698 - - industrial (ML) W10 Volume of water supplied – Other (ML) 8,689 9,539 9,226 9,198 9,995 W10.1 Volume of potable water supplied – other - 9,539 9,046 9,198 9,995 W10.2 Volume of non-potable water supplied – other - - 180 - - W10.3 Volume of water supplied – managed aquifer recharge - - - - W10.4 Volume of water supplied – agricultural irrigation - - - - W11 Total urban water supplied (ML) 68,233 125,849 120,894 70,238 73,725 W11.1 Total urban potable water supplied - 67,694 63,182 68,594 71,451 W11.2 Total urban non-potable water supplied - - 1,878 - -

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 W11.3 Total volume of potable water produced - - 63,182 68,623 71,483 W12 Average annual residential water supplied (kL/property) 184.0 175.0 162.9 175.8 180.9 W13 Volume of water supplied – environmental flows (ML) 5,110 5,110 5,110 5,110 5110 W14 Volume of bulk water exports (ML) 2316 315 12 29 299 W14.1 Volume of potable bulk water exports - 315 12 29 299 W14.2 Volume of non-potable bulk water exports - - - - - W15 Volume of bulk recycled water exports (ML) - - - - - W16 Volume of waste collected – residential sewage, non-residential 52,379 63,971 76,388 63,400 59,904 sewage and non-trade waste (ML) W17 Volume of waste collected – trade waste (ML) 3,102 3,898 4,389 4,697 4,974 W18 Total sewage collected (ML) 55,481 67,869 80,777 68,097 64,878 W18.1 Volume of sewage supplied to other infrastructure operators - - - - - W18.2 Volume of sewage taken from other infrastructure operators - - - - - W18.3 Volume of sewage taken from sewer mining - - - - - W18.4 Volume of sewage measured at inlet to treatment works - 67,869 80,777 68,097 64,878 W18.5 Volume of sewage treated effluent - 63,190 80,777 68,097 64,878 W19 Sewage collected per property (kL/property) 260.5 314.2 368.9 307.5 289.2 W20 Volume of recycled water supplied – residential (ML) - - - - - W21 Volume of recycled water supplied – commercial, municipal and 2,648 2,006 1,643 1,644 2,274 industrial (ML) W22 Volume of recycled water supplied – agricultural (ML) 2,520 2,488 2,824 2,445 2,441 W23 Volume of recycled water supplied – environmental (ML) - - - - - W24 Volume of recycled water supplied – on site (ML) 180 180 198 180 180 W25 Volume of recycled water supplied – other (ML) - - - - - W25.1 Volume of recycled water supplied – managed aquifer recharge - - - - - W26 Total recycled water supplied (ML) 5,348 4,674 4,664 4,269 4,895 W27 Recycled water (percent of effluent recycled) 9.6 7.4 5.8 6.3 7.5

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 W28 Total volume of urban stormwater discharges from a stormwater - - - - - discharge point W28.1 Volume of urban stormwater supplied to other infrastructure - - - - - operators W28.2 Volume of urban stormwater - - - - - W28.3 Volume of urban stormwater supplied for managed aquifer - - - - - recharge W28.4 Volume of urban stormwater used - - - - - W29 Total volume of treated and untreated sewage discharges from a - 63,971 75,915 63,828 59,983 sewage discharge point A1 Number of water treatment plants providing full treatment 6 6 6 6 6 A2 Length of water mains (km) 4,856.6 4,896.1 4,930.0 4,819.7 4,893.1 A3 Properties served per km of water main 46.3 46.6 46.7 48.3 48.2 A4 Number of sewage treatment plants 18 18 18 19 19 A5 Length of sewerage mains and channels (km) 4,667.0 4,729.9 4,791.6 4,851.5 4,903.1 A6 Properties served per km of sewer main 45.6 45.7 45.7 45.6 45.7 A7 Number of recycled water treatment plants - - - - - IA8 Total number of water main breaks 1,553 1,526 1,244 1,538 1,479 A8 Water main breaks (per 100km of water main) 32.0 31.2 25.2 31.9 30.2 A9 Infrastructure leakage index (ILI) 1.3 1.2 1.1 1.1 1.2 A10 Real losses (L/service connection/d) 88 84 75 75 82 A11 Real losses (kL/km water main/d) 3.5 3.4 3.2 3.4 3.6 A14 Sewer main breaks and chokes (number per 100km sewer main) 58.2 59.9 46.6 42.3 53.5 A15 Property connection sewer main breaks and chokes (per 1000 12.7 12.7 9.3 8.6 10.1 properties) C1 Population receiving water supply services (000s) 522 539 540 545 550 C2 Connected residential properties – water supply (000s) 209 212 214 218 221 C3 Connected non-residential properties – water supply (000s) 16 16 16 15 13 C4 Total connected properties – water supply (000s) 225 228 230 233 235

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 C5 Population receiving sewage services (000s) 501 520 517 523 528 C6 Connected residential properties – sewerage (000s) 201 204 207 209 212 C7 Connected non-residential properties – sewerage (000s) 12 12 12 12 11 C8 Total connected properties – sewerage (000s) 213 216 219 221 224 IC9 Total number of water quality complaints 775 636 660 684 794 C9 Water quality complaints (per 1000 properties) 3.4 2.8 2.9 2.9 3.3 IC10 Total number of water service complaints 63 60 39 54 17 C10 Water service complaints (per 1000 properties) 0.28 0.26 0.17 0.23 0.07 IC11 Total number of sewerage service complaints 459 483 481 344 173 C11 Sewerage service complaints (per 1000 properties) 2.15 2.24 2.20 1.55 0.77 IC12 Total number of billing and account complaints – water and 502 508 477 523 416 sewerage C12 Billing and account complaints – water and sewerage (per 1000 2.23 2.23 2.07 2.24 1.76 properties) IC13 Total number of water and sewerage complaints for the reporting 1,848 1,737 1,741 1,643 1,406 period C13 Total water and sewerage complaints (per 1000 properties) 8.21 7.62 7.56 7.54 5.96 C14 Per cent of calls answered by an operator within 30 seconds (%) 70 60 71 79 71 C15 Average duration of an unplanned interruption – water (minutes) 118.6 140.7 121.7 142.4 128 C16 Average sewerage interruption (minutes) - 142.0 155.9 153.9 148 IC17 Total number of unplanned interruptions 57,484 58,918 47,393 54,995 71,567 C17 Average frequency of unplanned interruptions – water (per 1000 255 258 206 236 303 properties) IC18 Total number of customers to which restrictions applied for non- 1016 908 350 1,192 1,787 payment of water bill C18 Number of restrictions applied for non-payment of water bill (per 4.5 4.0 1.5 5.1 7.5 1000 properties) IC19 Total number of customers to which legal action applied for non- 2 20 16 631 192 payment of water bill

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 C19 Number of legal action applied for non-payment of water bill (per 0.0 0.1 0.1 2.7 0.8 1000 properties) IE1 Total volume of sewage treated to a primary level - - - - - E1 Percent of sewage treated to a primary level - - - - - IE2 Total volume of sewage treated to a secondary level 32,781 36,916 45,311 37,919 36,713 E2 Percent of sewage treated to a secondary level 59.1 54.4 56.1 55.7 56.5 IE3 Total volume of sewage treated to a tertiary level 22,700 30,952 35,466 30,178 28,165 E3 Percent of sewage treated to a tertiary or advanced level 41.0 45.6 44.0 44.3 43.4 E4 Percent of sewage volume treated that was compliant (%) 95 100 99.4 100.0 99.8 E5 Number of sewage treatment plants compliant at all times 17 of 18 7 of 18 12 of 18 15 of 19 13 of 19 E6 Public disclosure of your sewage treatment plants performance Yes Yes Yes Yes Yes E7 Compliance with environmental regulator – sewerage (yes/no) No N/A No No No E8 Percent of biosolids reused 104 95 86 92 85 IE9 Net greenhouse gas emissions (net tonnes CO2 equivalents) – 32,317 32,020 26,417 26,589 27,363 water E9 Net greenhouse gas emissions (net tonnes CO2 equivalents) – 143.6 140.4 114.7 114.1 116.1 water (per 1000 properties) IE10 Net greenhouse gas emissions (net tonnes CO2 equivalents) – 62,567 65,466 67,871 56,351 64,008 sewerage E10 Net greenhouse gas emissions (net tonnes CO2 equivalents) – 293.7 303.1 309.9 254.5 285.3 sewerage (per 1000 properties) IE11 Net greenhouse gas emissions (net tonnes CO2 equivalents) – 5,886 6,258 6,582 5,904 5,718 other E11 Net greenhouse gas emissions (net tonnes CO2 equivalents) – 26.2 27.5 28.6 25.3 24.2 other (per 1000 properties) IE12 Total net greenhouse gas emissions (net tonnes CO2 equivalents) 100,770 103,745 100,870 88,844 97,089 E12 Total net greenhouse gas emissions (net tonnes CO2 equivalents) 447.9 455.0 437.9 381.4 411.6 (per 1000 properties) IE13 Total number of sewer overflows reported to the environmental 5 4 2 4 3 regulator E13 Sewer overflows reported to the environmental regulator (per 0.11 0.08 0.04 0.08 0.06 100km of main)

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 P1 Tariff structure – water Two part Two part Two part Two part Two part tariff. Fixed tariff. Fixed tariff. Fixed tariff. Fixed tariff: fixed service service service service service charge + charge + charge + charge + charge + usage usage usage usage usage charge charge charge charge charge P1.1 Free water allowance (kL) – water 0 0 0 0 0 P1.2 Fixed charge – water 39.94 18.80 18.84 18.92 17.02 P1.3 Usage charge 1st step 1.57 1.71 1.90 2.08 2.13 P1.4 Usage charge 2nd step - - - - 0 P1.5 Usage charge 3rd step - - - - 0 P1.6 Usage charge 4th step - - - - 0 P1.7 Usage charge 5th step - - - - 0 P1.8 Usage charge 6th step - - - - 0 P1.9 Usage charge 7th step - - - - 0 P1.10 Usage charge 8th step - - - - 0 P1.11 Usage charge 9th step - - - - 0 P1.12 Special levies ($) – water - - - - 0 P1.13 Income from special levies retained by utility? (Yes/No) – water - - - - 0 P2 Annual bill based on 200kL/a – water 353.94 360.80 398.84 434.92 443.02 P2.1 Average annual residential water supplied (kL/property) 184.0 174.9 162.3 175.8 180.9 P3 Typical residential bill – water 328.873 317.945 328.296 384.519 402.378 P3.1 Number of meter readings per annum – water 3 3 3 3 3 P3.2 Number of bills per annum – water 3 3 3 3 3 P4 Tariff structure – sewerage Service Service Service Service Service charge only charge only charge only charge only charge only P4.1 Fixed charge – sewerage 462.43 489.36 521.25 555.28 569.11 P4.2 Usage charge – sewerage - - - - -

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 P4.3 Special levies ($) – sewerage 33.23 33.86 34.86 35.89 36.79 P4.4 Income from special levies retained by utility (Yes/No) – sewerage Yes Yes Yes Yes Yes P5 Annual bill based on 200kL/a – sewerage 495.66 523.22 556.11 591.12 605.9 P6 Typical residential bill – sewerage 495.66 523.22 556.11 591.12 605.9 P6.1 Number of bills per annum – sewerage 3 3 3 3 3 P7 Annual bill based on 200kL/a (water & sewerage) 849.6 884.02 954.95 1026.04 1,048.92 P8 Typical residential bill (water & sewerage) 824.53 841.17 884.41 975.64 1,008.28 F1 Total revenue – water ($000) 112,479 108,880 112,961 134,290 144,370 F2 Total revenue – sewerage ($000) 121,808 129,974 148,487 157,664 157,812 F3 Total income for utility ($000) 234,792 239,724 261,010 291,953 302,182 F4 Residential revenue from usage charges – water (%) 64 66 66 95 96 F5 Revenue per property for water supply services ($/property) 499.91 477.54 490.39 576.44 612.17 F6 Revenue per property for sewerage services ($/property) 571.87 601.73 678.02 712.01 703.49 F7 Income per property for utility ($/property) 1043.52 1051.42 1133.12 1253.21 1281.33 F8 Revenue from Community Service Obligations (%) 4.82 4.94 4.83 4.67 4.57 F9 Nominal written down replacement cost of fixed water supply 1,579,034 1,642,790 1,930,105 2,260,902 2,332,222 assets ($000s) F10 Nominal written down replacement cost of fixed sewerage assets 2,715,289 3,001,406 3,195,059 3,224,788 4,519,324 ($000s) IF11 Operating cost – water (000s) 42,859 43,516 51,780 54,393 54,029 F11 Operating cost – water ($/property) 190.49 190.86 224.79 233.49 229.10 F11.1 Operating cost – water ($/ML) – bulk utility 0.58 0.62 0.82 0.77 0.73 IF12 Operating cost – sewerage (000s) 65,018 69,752 63,120 79,302 76,369 F12 Operating cost – sewerage ($/property) 305.25 322.93 288.22 358.13 340.44 F12.1 Operating cost – sewerage ($/ML) – bulk utility 0.89 0.99 1.00 1.12 1.03 F13 Combined operating cost – water and sewerage ($/property) 496 514 513 592 569 F13.1 Combined operating cost – water and sewerage ($/ML) – bulk utility 1.47 1.61 1.82 1.90 1.76

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NWI Indicator 2009-10 2010-11 2011-12 2012-13 2013-14 F14 Total water supply capital expenditure ($000s) 53,567 24,926 34,637 28,880 76,276 F15 Total sewerage capital expenditure ($000s) 106,368 135,155 79,815 58,842 32,628 F16 Total capital expenditure for water and sewerage ($000s) 159,934 160,081 114,452 87,722 108,904 F17 Economic real rate of return for water supply (%) 3.7 3.3 2.2 2.8 3.5 F18 Economic real rate of return – sewerage (%) 1.8 1.8 1.8 2.1 1.7 F19 Economic real rate of return – water and sewerage (%) 2.5 2.3 2 2.5 2.3 F20 Dividend ($000s) 34,100 16,600 20,820 15,600 36,300 F21 Dividend payout ratio (%) 75.8 69.6 62.8 113.0 74.0 F22 Net debt to equity % 38.6% 40.0% 58.8% 75.1% 78.3% F23 Interest cover 2.36 2 1.69 1.44 2.00 F24 Net profit after tax ($000s) 44,974 24,004 33,153 13,798 50,327 F25 Community service obligations ($000s) 11,328 11,852 12,618 13,636 13,808 F26 Capital works grants – water ($000s) - - 108.5 107.5 276.37 F27 Capital works grants – sewerage ($000s) - - - - - H1 Water quality guidelines ADWG 2004 ADWG 2004 ADWG2011 ADWG2011 ADWG 2011 H2 Number of zones where microbiological compliance was achieved 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 H3 % of population where microbiological compliance was achieved 100 100 100 100 100 H4 Number of zones where chemical compliance was achieved 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 H5 Risk-based drinking water management plan externally assessed No No No No No H6 Risk-based drinking water management plan (Please specify plan ADWG ADWG ADWG ADWG ADWG in place egg ISO9001, HACCP, ADWG, Aquality assessment) H7 Public disclosure of drinking water performance (yes/no) Yes Yes Yes Yes Yes

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8 GLOSSARY

8.1 Acronyms

Process Description %ile Percentile ADWG Australian Drinking Water Guidelines AGWR Australian Guidelines for Water Recycling CFU Colony-forming units CIP Catchment Improvement Plan 2013-2017 DP&E Department of Planning and Environment EEC Endangered ecological community EMP Environmental Management Plan EMS Environmental Management System EPA NSW Environment Protection Authority EP&A Act Environmental Planning and Assessment Act 1979 EPL Environmental Protection Licence ERC Expenditure Review Committee – internal committee established to provide oversight of and make decisions on all major financial commitments and undertakings with a view to protecting and improving the financial viability of Hunter Water. EWON Energy and Water Ombudsman of NSW GDE Groundwater dependent ecosystem HESS Australian Government Home Energy Saving Scheme HLT High level tank HRNILS Hunter Region No Interest Loans Scheme ILI Infrastructure Leakage Index IQMS Integrated Quality Management System IPART Independent and Regulatory Tribunal KIWS Kooragang Industrial Water Scheme ML/d Megalitres per day – one megalitre is a measure of volume equal to one million litres MPN Most Probable Number NWI National Water Initiative NOW NSW Office of Water OEH NSW Office of Environment and Heritage SCADA Supervisory control and data acquisition SEPP 14 State Environmental Planning Policy No. 14 – Coastal Wetlands Compliance and Performance Report 2013-14 | 169 SWMS Safe Work Methods Statement WELS Water Efficiency Labelling and Standards Scheme WHS Work Health and Safety WPS Water Pump Station WTP Water Treatment Plant WWPS Wastewater Pump Station WWTW Wastewater Treatment Works

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8.2 Water Treatment Processes

Process Description Bioreactor A bioreactor is a device that supports an aerobic or anaerobic biological environment. Coagulation / Flocculation During coagulation, liquid aluminium sulphate (alum) and/or polymer is added to untreated water (raw water). When mixed with the water, this causes tiny particles that are naturally present in the source water, when extracted, to stick together or coagulate. The heavier / larger coagulated material called ‘floc’ is easier to remove by settling or filtration. Disinfection Water is disinfected before it enters the distribution system to ensure that any disease-causing bacteria, viruses, and parasites are destroyed. Chlorine is used because it is a very effective disinfectant, and residual concentrations can be maintained to guard against possible biological contamination in the water distribution system. CT values are used to calculate disinfectant dosage for the chlorination of drinking water. The CT value is the product of the concentration of chlorine and the contact time with the water being disinfected. It is expressed in units of min.mg/L. Filtration Water flows through a filter designed to remove particles in the water. The filters are made of layers of sand and gravel, and in some cases, crushed anthracite. Filtration collects the suspended impurities in water and enhances the effectiveness of disinfection. The filters are routinely cleaned by backwashing. Microfiltration is a filtration process which removes particles from water by passage through a microporous membrane. Fluoridation Water fluoridation is the treatment of community water supplies for the purpose of adjusting the concentration of the free fluoride ion to the optimum level sufficient to reduce dental decay. Hunter Water is required to fluoridate in accordance with the NSW Fluoridation of Public Water Supplies Act 1957. pH Correction Lime is added to the filtered water to adjust the pH and stabilise the naturally soft water in order to minimise corrosion in the distribution system, and within customers’ plumbing. Sedimentation As the water and the floc particles progress through the treatment process, they move into sedimentation basins where the water moves slowly, causing the heavy floc particles to settle to the bottom. Floc which collects on the bottom of the basin is called sludge, and is piped to drying lagoons.

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8.3 Key Physical, Chemical and Microbiological Drinking Water Quality Parameters

Water Quality Description Parameter Turbidity Turbidity refers to the cloudiness or dirtiness of water, and is measured by a light scattering technique. Turbidity is measured in Nephelometric Turbidity Units (NTU). Aluminium Aluminium occurs naturally in untreated water in the form of silts and clays. Aluminium sulphate (alum) is also used as a flocculant to remove unwanted colour and turbidity from water supplies. Research has shown that aluminium in drinking water does not make up a substantial proportion of aluminium ingested, and that aluminium in drinking water is no more bio-available than any other source Chlorine Chlorine is used as a disinfectant in water treatment. It controls potentially harmful micro- organisms to ensure the safety of drinking water Colour Colour is measured in Hazen Units (HU). Colour can originate from organic matter in the soil through, or over, which the water has passed. Copper Copper is naturally present in both treated water and throughout the distribution system. However, soft water in contact with copper plumbing systems can on occasion give higher concentrations of copper at the customer tap. The incidence of high copper concentrations within Hunter Water’s area of operation is very low, and customer complaints are infrequent. E. coli Escherichia coli is an indicator bacteria, that is, bacteria which are not normally harmful in themselves, but may indicate the presence of other pathogenic (disease-causing) micro- organisms. E. coli is a type of thermo tolerant coliform bacteria, and is nearly always present in the faeces of humans and other warm-blooded animals. E. coli is generally regarded as the most specific indicator of faecal contamination, and therefore an important indicator for public health. Fluoride In accordance with the Fluoridation of Public Water Supplies Act 1957, fluoride is added to the water to help prevent tooth decay and generally improve dental health. Iron and Manganese Iron and manganese may occur naturally at low levels in the water and may be responsible for taste and staining problems with the water. Lead Lead levels in Hunter Water’s distribution system are typically less than the 0.001 mg/L limit of detection and well below the health guideline of 0.01 mg/L. Lead levels in customer plumbing can occasionally be elevated where water has lengthy residence time in contact with brass plumbing fittings. These contain small quantities of lead, and leaching into the water can occasionally occur. However this is very unlikely to cause continually elevated lead levels. Note that within the area serviced by Hunter Water, there is little or no lead pipework left in the plumbing systems. pH pH is a measure of the hydrogen ion concentration of water. A pH of 7 is neutral, greater than 7 is alkaline, and less than 7 is acidic. pH is important because it can affect the disinfection process. Trihalomethanes THMs are formed during the disinfection process by reaction between chlorine and mainly naturally-occurring organic substances. Treatment processes are controlled to minimise their production. Zinc As with other heavy metals, treated and reticulated water supplied by Hunter Water contains only very low levels of naturally occurring zinc. Some elevated levels in customer plumbingCompliance and Performance Report 2013-14 | 171 can be caused by old galvanised pipes and some leaching (“dezincification”) from older style brass fittings. Newer plumbing systems do not use galvanised steel, and brass fittings are normally “dezincification resistant”, so levels of zinc at the tap are rarely elevated.

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8.4 Wastewater Environmental Protection Licence Parameters

Parameter Description Biochemical Oxygen Biochemical Oxygen Demand or BOD limits are set to measure the amount of dissolved Demand (BOD) oxygen required by aerobic biological organisms to break down organic material in a water body. Chlorophyll ‘a’ Chlorophyll ‘a’ is used to monitor and measure rates of algal growth. pH pH is used to test whether a water body is acidic or alkaline and has an effect on the rate of microbial growth. Exceedances of pH levels can result in removal of organic compounds, which in turn can affect the BOD. Phosphorus Phosphorous limits are set to improve water quality during the treatment process and reduce the rate of algae growth. Total Nitrogen Excessive amounts of Total Nitrogen may lead to low levels of dissolved oxygen, therefore load limits are set to protect downstream water quality from algal blooms.

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