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Utility Optimization 7 Ways To Optimize Your Water Utility Streamlining utility management and operations yields significant savings. wateronline.com ■ Water Online The Magazine 30 "D o more with less" is a mantra that many companies and individuals have adopted over the past several years as they look for opportunities to streamline operations and manage budgets and resources more efficiently. Water utilities and public works agencies are no different. Recently, we have seen a trend in utility optimization as a way to operate water and wastewater systems more effectively, better manage limited budgets, and identify efficiencies to generate additional revenue. Utility optimization is similar to managing a household budget. When considering personal finances, a monthly budget that takes into consideration total income versus total living costs is beneficial in helping trim expenses and spend dollars more effectively. On a grand scale, this is what many utilities and public works agencies are doing. Rather than settling for a historically based plan and budgeting approach, advancements in best practices and technology have given utilities access to new tools and models for analyzing multiple alternatives to find the optimal solution to streamline business processes, manage capital spending and funding needs, make better decisions, train staff, and enhance facilities to ultimately lower costs. Operating and maintaining water infrastructure is costly, especially given that much of the United States' aging water infrastructure needs repair or replacement. Combine this with stricter environmental regulations and customer demands, and it's easy to see why utilities and public works agencies are looking for ways to streamline operations and do more with less while meeting safety, service, operational, and financial goals. Utility optimization involves finding the most favorable solution to generate cost savings and greater economic benefits for water and wastewater systems, while maintaining desired levels of service and managing risk. When streamlining utility management and operations, there are seven things to consider: • Cost efficiency: Identify early wins to get buy-in from stakeholders and provide the best value for taxpayers' dollars. • Risk management: Establish mitigation plans to more effectively manage risk and avoid surprises. • Maintenance effectiveness: Enhance reliability and reduce life cycle costs for assets. • Service levels: Continually improve regulatory compli- ance, customer service expectations, and design standards. • Sustainability: Approach green infrastructure opportunities, energy, and consumables holistically to maximize triple-bottom-line benefits. • Knowledge transfer: Share knowledge across organizations through training and documentation of best practices and procedures. • Technology: Invest in smart infrastructure and new technology to improve performance and overall efficiency. Utility Optimization In Action: 3 Examples The City of Columbus' Department of Public Utilities (DPU), one of the largest water, sewer, stormwater, and power utilities in the U.S., began its optimization journey in 2008 by adopting an asset management approach. DPU now implements a more rigorous business case analysis process before starting major capital improvement proj- ects. Rather than delaying necessary upgrades and asset replacements until after system failures, DPU has devel- oped long-range, data-driven infrastructure failure models that outline optimal levels of investment to replace and upgrade proactively to avoid service interruptions. In 2010 and 2011, DPU evaluated operations at its two wastewater treatment plants and three water treatment plants for potential energy and chemical savings. Using asset man- agement tools and process models, each plant was analyzed, and potential opportunities were identified, taking into con- sideration the feasibility and cost of necessary improvements when compared to the financial and operations gains. Since beginning its optimization initiative, DPU has saved millions, avoiding $55 million in capital and operations expenditures as a result of a $7 million investment. DPU will continue to keep operating costs down through its ongoing strategic plan, commitment to optimization, and further important recalibration of its maintenance and reliability efforts. The City of Cincinnati's Greater Cincinnati Water Works (GCWW) and the Metropolitan Sewer District of Greater Cincinnati (MSDGC), Ohio's largest water and wastewater utilities, providing drinking water and wastewater services to approximately 800,000 people, are leading the industry in terms of adopting transformative utility optimization practices. In an environment when budgets are strained, the city adopted an innovative, By Scott Haskins 3 0 _ V E R T _ 0 2 1 4 E Z i n e _ C H 2 M H i l l _ D G . i n d d 1 30_VERT_0214 EZine_CH2M Hill_DG.indd 1 1 / 3 1 / 2 0 1 4 1 : 1 6 : 3 1 P M 1/31/2014 1:16:31 PM