1. AMI Hidden Costs and Hidden Values
Feb 2017
AMI Hidden Costs and Hidden Values
Travis Smith
Director of NA Smart Water Strategy

2. Hidden Operating Costs
Back Haul Maintenance Data Plans Coverage Issues Field Issues, Obsolescence, Replacement Costs

3. Back Haul Costs Sensus Less Collectors $120-600 per collector/yr
Other RF
5-10X collectors
$12,000-$120,000 more over the life

4. Base Station Maintenance Costs
Issues
Sensus
Others
Natural Disasters (10% once over the 20 years)
~$2500
~$12,500-$25,000
Vandalism/Damage
Rare due to harden sites
~$10,000-$100,000
Upgrades
~$1,500
~$7,500-$15,000
Product Issues
Significantly more labor to diagnose the issue

5. Sensus Cellular $0 / end point $720 / end point over 20 years
Data Plans
Sensus
$0 / end point
Cellular
$720 / end point over 20 years
Escalation?

6. Coverage Issues
RF Installation of More Collectors $1,500 Power Supply $5,000 Site Rental ~$10,000 over 20 years Back Haul $2,400-$12,000 over 20 yrs Cellular Alternative Infrastructure for non coverage or labor

7. Field Issues, Obsolescence, 10 yr Life
Obsolescence – 10 Year Life Install $30-$50 / endpoint Replacement $60-$100 / endpoint Total $90-$150 more per endpoint than FlexNet What if the user has to experience end of life and obsolescence? $180-$300 per endpoint more than FlexNet Field Issues Site Visit $30-$50 / endpoint
Per Occurrence

8. Total Hidden Costs Items Cost Increase Over FlexNet over 20 years
Back Haul
$12,000 - $120,000
Maintenance
$27,000 - $127,000
Data Plans
$720 / end point
Coverage
$18,900 - $ 28,500
End of Life, Obsolescence
$90-$300 per end point
Sensus
Other RF
$57,900 - $275,500
Why the need for pilots?
Do other RF AMI systems work?
Costs of no reads, on demand reads – labor, trucks, back office
Sensus
Cellular
$810-1,020 / end point

9. Enhance Customer Service
Value Propositions
Water Utility Charters
Water Utility Objectives
WaterView
Clean Drinking Water for Public Health
HydroView
Flow of Water for Fire Safety
SourceView
Sustainability of the Supply
Account View
Customer Service
Financial Management
AssetView
Manage the life of the assets
Increase Revenue
Lower Costs
Optimize Assets
Reduce Risks
Enhance Customer Service
Return on Investment

10. Why More Often

11. Use Patterns

12. Action 2 am, Node 72 Historical Trends 325 Ft of Water 35 Psig 20 Gals
Water Withdrawl
Population est
Mgal/day
Mgal/yr
Price of water ($/Kgal)
Total Revenue $
20% Loss Value
10% Loss Value
Value of a 2.5 year payback based upon 10% recovery
Totals Domestic Public Supply
264,444,444.44
23,800
8,687,000 4
$ 34,748,000,000
$ 6,949,600,000
$ ,474,800,000
$ ,687,000,000
less PR and USVIS
23,566
8,601,710
$ 34,406,841,800
$ 6,881,368,360
$ ,440,684,180
$ ,601,710,450
23% market share
5,420
1,978,393
$ 7,913,573,614
$ 1,582,714,723
$ ,357,361
$ ,978,393,404
5 mgd
55,556 5
1825 3
$ ,475,000
$ ,095,000
$ ,500
$ ,368,750
10mgd
111,111 10
3650
$ ,950,000
$ ,190,000
$ ,095,000
$ ,737,500
20 mgd
222,222 20
7300
$ ,900,000
$ ,380,000
$ ,190,000
$ ,475,000
50 mgd
555,556 50
18250
$ ,750,000
$ ,950,000
$ ,475,000
$ ,687,500
100 mgd
1,111,111
100
36500
$ ,500,000
$ ,900,000
$ ,950,000
$ ,375,000
200 mgd
2,222,222
200
73000
$ ,000,000
$ ,800,000
$ ,900,000
$ ,750,000
Action
Historical Trends
2 am, Node 72
325 Ft of Water
35 Psig
20 Gals

13. Value Propositions – Non Revenue Water
Increase Revenue
Improved accuracy with Low Flow Registration, 20 Year accuracy, and Field Adjustable Accuracy
Revenue from Tamper Detection and Unauthorized Use
Lower Pressure Loss for more Consumption
Revenue from Dispute Resolution
Billing Error Corrections
Lower Costs
Reduce Leaks (Production and Transport Costs)
Reduce Bad Debt, and Collections Costs
Lower Repair Costs
Reduce Costs for Dispute Resolution
Reduce Replacement Costs
Optimize Assets
Extend the Life of Production and Treatment Facilities
Optimize Storage and Pumping Operations
Extend the Life of Mains and Service Lines
Reduce Risks
Fewer Main Breaks
Better Fire Fighting Capabilities with Hydrant Monitoring and Pressure Management
Predictive Analysis
Reduce Water Quality Risk from Breakage
Enhance Customer Service
Improve Service Pressure
Less Billing Disputes
5-15%
5-15%
Return on Investment

14. Typical 5 MGD Utility

15. Common Losses

16. Revenue Water Measurement Grouping Billed Water Exported
Billed Metered Consumption
Billed Unmetered Consumption
Billed Not Collected Metered Use
Unbilled Metered Consumption
Unbilled Unmetered Consumption
Unauthorized Consumption
Customer Metering Inaccuracies
Systematic Data Handling Errors
Leakage on Mains
Leakage on Service Lines
Spills and Overflow

17. Non Revenue Water
Measurement Grouping
Billed Water Exported
Billed Metered Consumption
Billed Unmetered Consumption
Billed Not Collected Metered Use
Unbilled Metered Consumption
Unbilled Unmetered Consumption
Unauthorized Consumption
Customer Metering Inaccuracies
Systematic Data Handling Errors
Leakage on Mains
Leakage on Service Lines
Spills and Overflow 1 2 3 9 4 2 7 1 7 5 4 6 5 8 7 3 6 8 9

18. Non Revenue Water Status Quo
Costs Increase as Leaks Grow
Revenue Decreases as Apparent Losses Grow

19. Solution Packages 93-97% Revenue Water Apparent Losses Real Losses 1 2
C & I accuracy improvements
Improve Residential Accuracy and Reduce Billing Errors
Reduce Unauthorized Use and bad debt
Mass Balance
Acoustic View
Fluid Energy
Advanced Leak Detection
Apparent Losses
Real Losses 1 2 3 4 5 6 7

20. Non Revenue Solutions 10% Cost Reduction 11% Revenue Gain
Revenue Increases as Apparent Losses are Reduced
Costs Reduced as Real Losses are Controlled
Infrastructure Expansion is Deferred
Customer Service Is Improved
Labor is Optimized
11% Revenue Gain

21. Lost Opportunity Basis
Sensus Water Balance
Source
Input
Delivery
Consumption/ Loss
Type of Use or Loss
Revenue/ Non-Revenue
Measurement Grouping
Examples
Lost Opportunity Basis
Surface Water
Total System Input
Water Exported
Authorized Consumption
Billed Authorized Consumption
Revenue Water
Billed Water Exported
Municipal Transfer Water
None
Water Supplied
Billed Metered Consumption
Residential, Commercial, Industrial Use, Including Customer Leaks
Billed Unmetered Consumption
Flat Fee Structures for Accounts
Non- Revenue Water
Billed Not Collected Metered Use
Residential, Commercial, Industrial Use, but payment not collected for leak adjustments, bad debt, or forgiveness.
Revenue Lost
Unbilled Authorized Consumption
Unbilled Metered Consumption
City Use, Other Authorized Non payment Applications, Flushing
Unbilled Unmetered Consumption
City Use, Other Authorized Non payment Applications, Flushing, Firefighting
Water Losses
Apparent Losses
Unauthorized Consumption
Unauthorized use, Tamper
Customer Metering Inaccuracies
Residential, Commercial, Industrial Meters accuracy errors
Ground Water
Systematic Data Handling Errors
Billing errors, unit errors, resolution errors, estimated reads
Real Losses
Leakage on Mains
Leaks on Transmission and/or Distribution Mains
Production Costs Lost
Purchased or Imported Water
Leakage on Service Lines
Leaks on Service Connections Up to Customer Meters
Leakage & Overflows at Storage
Storage Tank Leaks and Overflows

22. Asset Optimization

23. Main Break Costs REPAIR
According to the American Society of Civil Engineers, the U.S. suffers from 240,000 water main breaks a year. That's roughly 700 water main breaks each day.
15 breaks per 100 miles (161 km) per year of water main is common.
@ $3,205 (USD) per break of repair costs, = $48,075 / year / 100 miles of mains
WATER COSTS
1-4 hours duration 10-1,000 GPM = ,000 gallons
@ $1.25/1000 gallons = $ $300
BUSINESS – SOCIAL COSTS
Street closures and citizens quality of life ?????
Lost business productivity ????

24. Replacement Costs $ 926,807 (US$) / Mile of Pipe
$ 579,254 (US$) / km of Pipe

25. Value Propositions – Asset Management
Increase Revenue
Lower Pressure Loss for more Consumption
Lower Costs
Reduce Leaks (Production and Transport Costs)
Lower Repair Costs
Reduce Costs for Dispute Resolution
Reduce Replacement Costs
Optimize Assets
Extend the Life of Production and Treatment Facilities
Optimize Storage and Pumping Operations
Extend the Life of Mains and Service Lines
Reduce Risks
Fewer Main Breaks
Better Fire Fighting Capabilities with Hydrant Monitoring and Pressure Management
Predictive Analysis
Reduce Water Quality Risk from Breakage
Enhance Customer Service
Improve Service Pressure
Avoid Lost Business Revenue
Daily Disruptions
5-15%
Return on Investment

26. Asset Values
AWWA Benchmark is 11 breaks per 100 miles of water mains per year.
What if we could reduce that by 36% - 80 fewer breaks over 20 yrs
$6M in rehabilitation and replacement costs
What if we could reduce that by 10% per year - $12M over 20 years

27. Thank You