Water Energy Nexus: Estimating Embedded Water energy reductions FROM An electrical BILLING review January 18, 2016

Agenda Study Origins and Objectives Methods Results Objective 1 Conclusions Next Steps

Study ORIGIN and Objectives

Water Energy study Milestones 2015: CPUC commissioned water-energy calculator February 2016: UC Davis water-energy web tool shows high electricity savings from water conservation July 2016: Itron starts work on WE Nexus project December: Presentation at the CPUC December-January 2016: Incorporate stakeholder feedback in Draft Reporting TODAY: Public Webinar February 2017: Draft and Final Reporting

definitions Per the current study Embedded Energy (upstream of user): The amount of energy that is used to collect, convey, treat, and distribute a unit of water to end users Energy Intensity (EI): The amount of energy that is required to extract, transport, and treat a parcel of water from its source to urban end-users. Unit: kwh per acre-ft

Study Origins/BASIS High Potential Energy Reductions and a Data Opportunity Historical lack of highly granular data for estimating embedded water energy reduction Water-energy calculator approach: Hydrologic region level EIs are used to estimate water-energy reductionin 2015Q3 Shows high electricity reductions from water conservation Data Opportunity: California 2015 water emergency mandate 25% urban water-use reduction Water agencies report monthly water production

Study Objectives Objective 1: Recalculate energy reductions associated with 2015 water conservation mandate using methods in literature Objective 2: Estimate embedded water energy reductions using an electricity billing review Objective 3: Provide commentary on the potential sensitivity and drivers of water agency EI variability

Levels of granularity for EI calcs Most Granular : Water Agency System Component Energy Intensities Hydrologic Region EI Extraction/Conveyance “Historical Supply” Treatment Distribution to User Water Agency Water Agency + +

Levels of granularity for EI calcs Sum Water System Components for Water Agency Energy Intensity Hydrologic Region EI Extraction/Conveyance “Historical Supply” Treatment Distribution to User Water Agency Water Agency + +

Extraction/Conveyance A Simplified view Visualization of Hydrologic Region EI Hydrologic Region EI Extraction/Conveyance “Historical Supply” Treatment Distribution to User Water Agency Lowest Granularity Average + + Highest Granularity

EXISTING APPROACH to estimating embedded water energy Reductions Hydrologic Region EI Extraction/Conveyance “Historical Supply” Treatment Distribution to User Water Agency Average + + Water Agency Energy Reduction = Hydrologic Region EI Water Agency Water Savings

Methods

Objective 1 Recalculate energy reductions associated with 2015 water conservation mandate using methods in literature Navigant 2015 Errata AVG Hydrologic Region Outdoor EI values State Water Board Data (Lacks complete 2014 record) Water Agency Energy Reduction = Hydrologic Region EI Water Agency Water Savings

+ + Aggregate Water Agency Outdoor Electricity Accounts Objective 2: estimating embedded water energy Reduction using billing review Hydrologic Region EI Extraction/Conveyance “Historical Supply” Treatment Distribution to User Water Agency Aggregate Water Agency Outdoor Electricity Accounts + +

Objective 2: Defining Scope of Billing Analysis Return to Environment Extraction: - Groundwater - Surface Water Water Treatment Water Imports: - Whole-Sale - Conveyance Distribution: -Booster Pumps -Storage/Tanks User: -Water End Use Waste Water Treatment Outdoor Water Agency Energy Consumption: Up-Stream of the User

Objective 2: Aggregating Water Agency Bills Identifying accounts in CIS Billing Data Urban Water Management Plans 2015 Google Earth Extraction kWh Water Treatment kWh Distribution Itron Estimate kWh

Objective 2: bottom-up and Top-Down approach Matching CIS Billing Data with Publicly Available Resources and Identifying Accounts: Extraction, Storage/Distribution, Treatment Itron Identified Electric Accounts UWMP Scotts Valley Well Sites Corroborate Bottom-Up results with water agency supplied data

Objective 2: Methods breakdown Distribution of methods for data collection: Top-Down Bottom-Up Dominated

Additional Considerations: Total water production of a water agency Itron captures energy consumption associated with the production of a water agency’s total supply including water in use (SWB), raw water, recycled water, and exports SWB: Water in Use Raw Water Recycled Water Water Exports Itron: Total Supply

For most water agencies in the itron sample: Total reported supplies in the 2015 UWMP are within 10% of supplies reported to the SWB conservation data set Select Agencies Exceed this Range Due to Large Percentages of Exported and Recycled Supplies in Total Supply

Solution and Future recommendations For ~20% of Water Agencies in Itron Sample: Percent of supply total > 15% different from SWB Recycled Supply Water Agencies: Alameda, Scotts Valley Exporting Water Agencies: East Niles, West Kern, Humboldt Decision: Flag agencies especially when making comparisons with AVG EI derived analyses Looking forward: Require water agencies to report total supplies for conservation data sets

Objective 3: Exploration of Trends in Water Agency kWh 2013 to 2015 Trends ? Drought Less Volume Less Volume Extraction EI Water Treatment EI Distribution Itron Estimate EI Implications for Water Agency EI?

Shifts in Water Agency Supply Mix Objective 3: Focus on Groundwater Extraction EI and Shifts in supply mix Implications for water agency energy intensities Extraction: - Groundwater Pumping Water Treatment Water Imports: - Whole-Sale - Conveyance Distribution: -Booster Pumps -Storage/Tanks User: -Water End Use Waste Water Treatment Drought Less Volume Extraction kWh Water Treatment kWh Distribution Itron Estimate kWh Extraction EI Less Volume Shifts in Water Agency Supply Mix

RESULTS Objective 1

Objective 1 Adjustments to Energy Reduction estimates in the literature Adjusting existing estimates for comparability with Itron study: UC Davis Q3 2015 Itron Itron AVG 2015 Quarter 460 GWh 223 GWh 130 GWh * Includes wastewater treatment Excludes wastewater treatment IOU-ONLY Water Agency Energy Reduction = Hydrologic Region EI Water Agency Water Savings * Still requires filtering for non-IOU powered WAs

RESULTS Objective 2

Itron Water Agency Selection 32 Water Agencies 10 Hydrologic Regions Diversity of Water Supplies >70% groundwater Supply >70% Imported Supply Mixed Supply

Comparing Itron sample with CA Itron sample broadly matches state-wide supply mix distribution Itron sample mean is within 10% of CA mean for each supply mix source State-Wide Itron Selected WA Close Match: Line Marks Supply Type Mean