Are Your C&I Meters Delivering on their Full Revenue Potential?

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1 Are Your C&I Meters Delivering on their Full Revenue Potential? MARCH 2, 2017 Webinar Moderator Adam Carpenter, Manager - Energy and Environmental Policy, AWWA 2 Adam T. Carpenter works in AWWA s DC Government Affairs Office, and serves as an expert and advocate on a diverse set of drinking water issues including climate change, hydraulic fracturing, the energy-water nexus, carbon capture and storage, consumer confidence reports, and other environmental policy issues. Along with his colleagues, he works to further AWWA s mission of supporting clean, affordable drinking water through sound application of science into policy, sensible regulation, public awareness, and building stakeholder consensus. He holds a bachelor s degree from George Washington University in biology, a master s degree from Johns Hopkins in environmental sciences and policy, and is pursuing a Ph.D. in environmental policy from George Mason University. In his studies, he is researching the development of community based sea level rise policies for vital sectors, such as water supply. Please consider the environment before printing. 1

2 Enhance Your Webinar Experience Close Programs Instant messengers Other programs not in use GoToWebinar Support 3 Webinar Survey Immediately upon closing the webinar Survey window opens Thank you 4 Please consider the environment before printing. 2

3 Products or Services The mention of specific products or services in this webinar does not represent AWWA endorsement AWWA does not endorse or approve products or services 5 Webinar Presenters Jeff Cunningham Business Development Manager, M.E. Simpson Robert Rider Superintendent of Technical Services, City of Cumberland, Maryland Public Works Water Distribution Department AJ Casini Product Manager Water Metrology, Sensus, a Xylem brand 6 Please consider the environment before printing. 3

4 Agenda I. Large Meter Testing Protecting and Maintaining your Revenue Jeff Cunningham II. Meter Testing Programs: One Utility s Journey Robert Rider III. Realize the Full Revenue Potential of your C&I Meters AJ Casini 7 Ask the Experts Jeff Cunningham Robert Rider AJ Casini Enter your question into the question pane at the lower right hand side of the screen. Please include your name and specify to whom you are addressing the question. 8 Please consider the environment before printing. 4

5 Large Meter Testing Protecting and Maintaining your Revenue Jeff Cunningham, Business Development Manager, M.E. Simpson 9 Agenda Why start a meter testing program? How to identify the priority meters and accounts Setting up a schedule What are the guidelines? Resources 10 Please consider the environment before printing. 5

6 Why start a meter testing program? Maintain revenue- a small percentage of inaccuracy can equal large revenue declines- Meters are your CASH REGISTER! Controlling apparent water loss Maintain a realistic view of consumption versus rates for different meter classifications An opportunity to address meter sizing and application, as customers processes change 11 Commercial and Industrial Meters High Revenue Meters Usually 10-12% of the customers use 50-60% of the water Test and repair industrial and commercial meters Replace obsolete meters 12 Please consider the environment before printing. 6

7 Large Meter Testing Program 3% of annual revenue should be earmarked for meter testing Meter testing should be performed as on-going maintenance program An annual testing program will ensure that revenues stay up Test meters within 6 months of installation 13 Testing Frequency Influenced by the cost of water - as water costs increase more accounts require annual testing The water quality - harsh water requires more frequent testing 14 Please consider the environment before printing. 7

8 Using Revenue as a Basis for Testing Frequency Using the rule of investing 3% of a meter s annual revenue in the maintenance of that meter the following averages apply: $10,000 or greater = annual testing $7,000 to $10,000 = every 2 years $4,000 to $7,000 = every 3 years Less than $4,000 = every 4 years 15 Why develop a meter testing program? To ensure that the utility is receiving the revenue it deserves To promote conservation, reduce water loss and use best management practices To make sure that the cost of operating the utility is spread fairly among all customers 17 Please consider the environment before printing. 8

9 AWWA M6 Guidelines Meter Size Test Frequency 2 inch 4 years 3 inch 3 years 4 inch 2 years 6 inch and above 1 year 19 Meter Testing Flow Rates 4 inch turbine type- High 600 gpm Intermediate 60 gpm Low 15 gpm *When the maximum flow rate is not available, or the test meter will not reach the limit, use percentages. Example- 300 gpm vs. 600 *Common and accepted practice, just be consistent in your methods. 20 Please consider the environment before printing. 9

10 Evaluate Existing Meter Is it the right type? Is it the right size? Is it properly installed? Are the valves in working order? 21 Restoring Accuracy Repair costs Consider all repair costs - Parts - are they readily available? - Labor - can your personnel repair the meter? - Downtime - how much does it cost? - Retesting after repair - What is the expected repair frequency? 23 Please consider the environment before printing. 10

11 Restoring Accuracy Does the manufacturer offer a chamber or meter exchange program? Is it more economical to replace the entire meter? 24 Key Takeaway Establish a Long-term Testing and Maintenance Program Stick With It! Meters Are Your Cash Registers! Accurate Meters = Accurate Billings 25 Please consider the environment before printing. 11

12 Resources 26 Ask the Experts Jeff Cunningham Robert Rider AJ Casini Enter your question into the question pane at the lower right hand side of the screen. Please include your name and specify to whom you are addressing the question. 27 Please consider the environment before printing. 12

13 Meter Testing Programs: One Utility s Journey Robert Rider, Superintendent of Technical Services, City of Cumberland, Maryland Public Works Water Distribution Department 28 Learning Objectives From my utility s story, you will understand: 1. How meters contribute to non-revenue water reduction 2. How to set the foundation for a successful large meter testing program 3. Why investment and commitment are both key requirements for successful large meter testing programs 29 Please consider the environment before printing. 13

14 Agenda Overview of the City of Cumberland, MD Building the case for large meter testing programs The technological journey Large meter testing program: Past, present and future Lessons learned 30 City of Cumberland at a Glance Located in Maryland, USA 21,518 population* Rich colonial history Industrial legacy Water Distribution System: Fed by Lake Gordon and Koon Feeds through two 36 Mains 140 miles of water mains 10,000 Service Connections 900 Hydrants Supports customers in MD, PA & WV *Source: 31 Source: Please consider the environment before printing. 14

15 Large Meter Testing Programs: Building the Case at Cumberland Industry transition, production decrease Water value has increased Non-revenue Water Reduction Asset Protection 32 A Champion for Innovation Building upon technology to be more effective Meter Testing Meters Meter Reading 33 Please consider the environment before printing. 15

16 Advancing the Meters Legacy Technology 1 ½ and 2 SR PD Meters Sensus SRH Compound Meters OMNI F 2 meter New Technology Programs iperl static meter installation for residential accounts OMNI meters for all 1 ½ and larger connections 4-10 OMNI Fireline (F²) Meters IPERL meter 34 OMNI Residential (R 2 ) meter Evolution of Meter Reading Remote Reading TouchRead RadioRead in remote locations FlexNet communication network 35 Please consider the environment before printing. 16

17 Meter Testing Programs: The Beginning 1970s: Started a Large Meter Testing Program Contracted testing service Result: Required testing completed but lacked repair actions 1990s: Started an in house testing program Result: Recognition of lost revenue due to meter inaccuracies 36 New Large Meter Testing Program Current program objective: Test all current Large Meters Replace low performers (less than 90% accuracy level) Next advancement: Test the meters based on: Usage sent over FlexNet Installation time Supported by OMNI Verification (V²) portable test meter 37 Please consider the environment before printing. 17

18 Lessons Learned from the Journey There is a great opportunity for revenue recovery and protection in the metering infrastructure NRW rate in mid 1980s was approx. 50% After new metering technologies implemented, NRW rate down to 15% Large Meter Testing helps sustain continued revenue recovery Inaccurate meters = lost revenue Success requires commitment for long-term results Continued investment in new metering technologies Make the effort to maintain ongoing meter testing programs 38 Ask the Experts Jeff Cunningham Robert Rider AJ Casini Enter your question into the question pane at the lower right hand side of the screen. Please include your name and specify to whom you are addressing the question. 39 Please consider the environment before printing. 18

19 Realize the Full Revenue Potential of your C&I Meters AJ Casini, Product Manager Water Metrology, Sensus, a Xylem brand 40 Learning Objectives After the section you will understand: 1. The importance of knowing your assets 2. Why you should not make meter replacements solely based on finances 3. Importance and Benefits of a Large Meter Testing Program 41 Please consider the environment before printing. 19

20 Agenda Assessing your Meter Assets Asset Repair or Replacement Importance of Meter Asset selection Benefits of implementing a large meter testing program Realizing the True Potential of your C&I Meters 42 How to Realize the Potential Assess the Meter Assets in the Network Repair or Replace Aging Assets Implement a Large Meter Testing Program 43 Please consider the environment before printing. 20

21 Assess Meter Assets Sometimes a simple task Only as good as the data you have on hand Site visits may be required What do we want learn from this process? 44 Assess Meter Assets We learn the following: Age of our assets Technology of our assets Customer use of the meter 45 Please consider the environment before printing. 21

22 Repair or Replace Existing Assets Based on the Meter Assessment Implement a given age for action Make decisions based on product lifecycle, technology and budget Caution: Do not make decisions solely on budget Verify the meter is still correct for the application Repurposed production facilities Large office building conversions 46 Repair Key Considerations How long will the manufacturer carry these parts Is there better technology available How accurate will the meter be after repair How difficult is the repair How long will the repair last 47 Please consider the environment before printing. 22

23 Accuracy (%) Replace Key Considerations Do we need to spec a different meter for the application Size Flow Range Technology Metrology Smart Metering Testing Cross Over Loss Flow (gpm) 48 Benefits of Large Meter Testing Revenue Protection New meters are more accurate Keep your meters registering at new meter accuracy More accurate meters = more revenue Asset protection Large amount of capitol investment for Large Meters 49 Please consider the environment before printing. 23

24 Benefits of Large Meter Testing Non-Revenue Water Reduction Metering inaccuracies are a large driver to NRW One bucket of NRW we can attack with a solid plan A 10% drift in accuracy is a substantial loss Meter registering 10,000 Gallons per day A 10% loss is 10,000 Gallons per Day 70,000 Gallons per week 3,650,000 Gallons per year That s an average flow rate of the meter of 70 GPM That s one large meter registering at 90% Accuracy Level 50 Benefits of Large Meter Testing Customer Perception Scenario: Old meter was registering at 80% for years, New meter is installed and registering at 100% Result: Customer sees difference in water bill, believes there is an issue with new meter 51 Please consider the environment before printing. 24

25 Large Meter Testing Needs Equipment Portable Large Meter Tester (i.e. OMNI V²) Fire hose and test risers Site equipment Preparation Prepare site per AWWA requirements Safety is the most important preparation factor Decide on meters to attach Handling Results Be sure to have a system in place before testing Lost results are just like no results 52 Available Technologies OMNI V 2 Portable Test Meter Single Register/Chamber design Flow Rates from.5 500GPM Patented OMNI Floating Ball Technology Less Maintenance Software driven Test Results 53 Please consider the environment before printing. 25

26 Available Services Revenue meter testing and calibration Production meter testing Distribution system leak surveying and monitoring Transmission line leak detection and monitoring Water Audits Waterline condition assessment 54 Conclusion Asset management is a key part of control Large meter testing is imperative to a utility Revenue Protection is paramount in today s world Don t leave stranded assets Implementation of a Large Meter Testing Program takes effort and commitment Contract Meter Testing can help lower the burden Testing technologies like the OMNI V² can lower equipment cost and support ongoing testing programs Large meter testing helps reduce NRW 55 Please consider the environment before printing. 26

27 Ask the Experts Jeff Cunningham Robert Rider AJ Casini Enter your question into the question pane at the lower right hand side of the screen. Please include your name and specify to whom you are addressing the question. 56 For more information VISIT SENSUS.COM VISIT MESIMPSON.COM Stop by the Sensus booth PENNSYLVANIA CONVENTION CENTER, BOOTH Please consider the environment before printing. 27

28 Thank you! 59 Presenter Bio Jeff Cunningham, Business Development Manager, M.E. Simpson Company Jeff Cunningham is the Business Development Manager at M.E. Simpson Company, a company whose primary focus is to continually support clients Asset Management and Revenue Protection Programs, through a unique offering of professional services. He has over twenty five years experience in the water industry. This experience includes 16 years as a Territory Manager and Manager of Technical Sales for a major meter and AMI/AMR systems provider. Prior to that, Jeff was a project manager and business development representative for a national water supply and services contractor. He is a member of the AWWA Customer Metering Practices Committee, the Water Loss Control Committee and the Meter Madness Competition Committee. Additionally, he is involved in many Section level committees in Indiana. He is a member of the Indiana, Ohio, Illinois, Kentucky-Tennessee and Texas Sections of AWWA. 59 Please consider the environment before printing. 28

29 Presenter Bio Robert Rider, Superintendent of Technical Services, City of Cumberland, Maryland Public Works Water Distribution Department Robert Bob Rider is the Superintendent of Water Services at the City of Cumberland, Maryland Public Works. Over the last 44 years, Bob has held many positions in the water industry ranging from labor to operations to management. For over 25 years, Bob has served as management of the City of Cumberland Public Works, which supports a population of water customers in Maryland, Pennsylvania and West Virginia. Over the course of his water industry career, Bob has also served as a union president for a decade and has been an asset to helping the City adapt for many changes ranging from population shifts to new technologies. He is a member of AWWA, the Maryland Rural Water Association, and the Eastern Meter Management Association. For a couple of years, his expertise was leveraged by the Maryland Rural Water Association to present a class on customer service in billing and meters. 60 Presenter Bio AJ Casini, Product Manager Water Metrology, Sensus, a Xylem brand AJ Casini is Product Manager of Water Metrology at Sensus, a Xylem brand. With 12 years experience in the water industry, AJ is responsible for Sensus line of OMNI, SR II, accustream and other C&I metering products. Prior to product management, AJ held positions in technical support and sales. He is an active member of AWWA and holds a bachelor s degree in computer science from Allegheny College. 61 Please consider the environment before printing. 29

30 CE Credits (CEUs) and Professional Development Hours (PDHs) AWWA awards webinar attendees CEUs. If you wish to take advantage of the opportunity to earn CEUs, visit Certificates will be available within 30 days of the webinar. 62 How To Print Your CEU Certificate of Completion Within 30 days of the webinar, login to or register on the website. If you are having problems, please Once logged in, go to: My Account My Transcript Information To print your official transcript, click Print list To print certificates, click Download certificate 63 Please consider the environment before printing. 30