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In the field of engineering, the concept of sustainability refers to designing and managing to fully contribute to the objectives of society, now and in the future, while maintaining the ecological, environmental, and economic integrity of the system.  Most people would agree that structures such as buildings that have a lifespan measured in decades to centuries would have an important impact on sustainability, and as such, these buildings must be looked at as opportunities for building sustainably. When people think about green buildings, what generally comes to mind is solar panels, high efficiency lighting, green roofs, high performance windows, rainwater harvesting, and reduced water use.  This is true, but building green can be so much more.

The truth is that the built environment provides countless benefits to society; but it has a considerable impact on the natural environment and human health (EPA 2010). U.S. buildings are responsible for more carbon dioxide emissions annually than those of any other countries except China (USGBC 2011). In 2004, the total emissions from residential and commercial buildings were 2,236 million metric tons of carbon dioxide (CO2), more than any other sector including the transportation and industrial sectors (USGBC 2011). Buildings represent 38.9% of U.S. primary energy use,72% of U.S electricity consumption (and 10% worldwide), 13.6% of all potable water, and 38% of all CO2 emissions (USGBC 2011).  Most of these emissions come from the combustion of fossil fuels to provide heating, cooling, lighting, and to power appliances and electrical equipment (USGBC 2011). Since buildings have a lifespan of 50 to 100 years during which they continually consume energy and produce carbon dioxide emissions, if half of the new commercial buildings were built to use only 50 percent less energy, it would save over 6 million metric tons of CO2 annually for the life of the buildings. This is the equivalent of taking more than one million cars off the roads each year (USGBC 2011).

The United States Green Building Council (USGBC) expects that the overall green building market (both non-residential and residential) to exceed $100 billion by 2015 (McGraw Hill Construction 2009).  Despite the economic issues post 2008, it is expected that green building will support 7.9 million U.S. jobs and pump over $100 million/year into the American economy (Booz Allen Hamilton, 2009). Local and state governments have taken the lead with respect to green building, although the commercial sector is growing.

Green building or high performance building is the practice of creating structures using processes that are environmentally responsible and resource efficient throughout a building’s life cycle, from site to design, construction, operation, maintenance, renovation, and deconstruction (EPA 2010). High performance building standards expand and complement the conventional building designs to include factors related to: economy, utility, durability, sustainability, and comfort. At the same time, green building practices are designed to reduce the overall impact of the built environment on human health and use natural resources more responsibly by more efficiently using energy, water, and other resources, while protecting occupant health and improving employee productivity.

High Performance Buildings are defined by incorporating all major high performance attributes such as energy efficiency, durability, life-cycle performance, natural lighting, and occupant productivity (EPA 2010). High performance buildings are constructed from green building materials and reduce the carbon footprint that the building leaves on the environment. A LEED-certified green building uses 32% less electricity and saves around 30% of water use annually (USGBC 2011). Building owners know that there is a return on investment of up to 40% by constructing a green building as a result of savings to energy and water (NAU 2012).

The cost per square foot for buildings seeking LEED Certification falls into the existing range of costs for buildings not seeking LEED Certification (Langdon, 2007).  An upfront investment of 2% in green building design, on average, results in life cycle savings of 20% of the total construction costs – more than ten times the initial investment (Kats, 2003), while building sale prices for energy efficient buildings are as much as 10% higher per square foot than conventional buildings (Miller et al., 2007). At the same time, the most difficult barrier to green building that must be overcome includes real estate and construction professionals who still overestimate the costs of building green (World Business Council, 2008).

New data indicates that the initial construction cost of LEED Certified buildings can sometimes cost no more than traditional building practices.  A case study done by the USGBC showed that the average premium for a LEED certified silver building was around 1.9% per square foot more than a conventional building.  The premium for gold is 2.2% and 6.8% for platinum.  These numbers are averaged from all LEED-registered projects, so the data is limited, but demonstrates that in some cases it does not cost much extra to deliver a LEED certified project which greatly improves the value of the building and lowers operating costs (Kuban 2010).  The authors’ experience with the Dania Beach nanofiltration plant indicated the premium was under 3% to achieve LEED-Gold certification compared to standard construction.

So the question is, why don’t we see more green buildings?  We know water plants can be green (Dania Beach Nanofiltration Plant), but that was the first nanofiltration plant in the world to be certified Gold.  The SRF programs prioritize green infrastructure – so why do more people not pursue them?  It may be an education process.  Or maybe the market just has not caught up.  CIties and states are leading the way here.  Utilities may want to look at this as well.Image


Communicating effectively in both written form and public speaking is critical for the success of the utility.  I have been reading several books on leadership and communication remains an ongoing issue throughout.  We see many schools trying to incorporate this into the engineering curriculum, but that leaves far too many outside the training “program.”  The problem is that many people think they communicate well, when in fact they do not.  Nothing is  more of a reality check than college students, too many of which write in “text message form” as opposed to real written words.  Presenting utility concepts and ideas to different audiences is an integral part of the profession and unfortunately the technical nature of many of our issues requires technical people to communicate concepts to non-technical audiences.  This s far more difficult than it appears, which is part of why the message may be lost.  .Knowing this fact, aspiring utility employees must become familiar with using visual aids and computer-based tools to convey the important design details, so that, the client, regulators, politicians, the public and even other engineers can envision what the final product will look like and evaluate their ability to successfully execute the project. 

We tell our students that technical communication for civil engineers is essential to the profession and is a prerequisite for a successful engineering career. It assists in conveying information, serves as a thought process tool, and is arguably just as essential as excellent analytical or computational skills. For some, writing well comes naturally, for others, it can be a struggle. The difference can be experience, confidence, and proper planning. Planning makes writing easier. A good place to start would be to make an outline of topics to adequately cover the necessary content and in the appropriate order that allows the reader to follow along in a logical fashion. Of course too many of them resist outlines and read very little.  

Reading and writing go hand in hand.  If you read a lot, you have a better chance of being a good writer than those o do not.  The saving grace of the vampire books, Hunger Games, Game of thrones and 50 Shades series is that someone is actually reading the books. That is a first step.  Of course the news is another matter.  History, of course no so much.  For utility folks, it is technical materials that must be read, digested and conveyed to the ratepayers.  People are naturally suspicious of those they cannot understand, a huge barrier for the industry to overcome. I remind our students than when the general public is asked what engineers do, more than half answer:  drive trains.  Wow.  the disconnect!

It is important to avoid overly long documents with too much technical detail, jargon or specialized terms, distractions and tangents.The consequences of poor communications clearly justify the amount of time and effort required to write well because, for example, the written word in a document is permanent; therefore, the bad impression left with the reader of sloppy work can be extremely damaging.  We need to engage the public in a positive way.  Communication needs to be a more robust goal for all of us than it currently is to engender that needed support.


I worked for a while in rural North Carolina.  I confronted two issues there that are instructive. The first was that many people did not value education because for the most part they expected to do menial labor activities on farms or in construction.  They figured they did not need much education. That was the adults!!  Kids in such situations have little hope of succeeding academically when their parents do not value education, and in some cases may either ridicule their efforts or at least be un-supportive of same.  The second was the idea that the “guys” who could not work anywhere but needed a job should get a job with the “city.”  Wow, I’d like to hope we are past both of these, but the Census statistics clearly show we are not on the education part at least.  Census data indicates that when you look at educational spending, per capita income, graduation rates and unemployment rates, the bottom 10 states are:

North Carolina

Tennessee

South Carolina

Nevada

Kentucky

Alabama

Mississippi

West Virginia

Louisiana

Arkansas

All but Nevada (#35) are in the bottom 12 in spending per student and the academic achievement of their students appears to indicate the efforts are inadequate.  For the most part these are largely rural southern states, so my experiences 25 years ago may be no different now. Kids see low wages, higher unemployment and figure what does education get them?, so it perpetuates the myth of their parents. Or maybe it is not a myth afterall?  Interesting these are primarily the states with the highest number of students in poverty, lead my Mississippi’s whopping 71%.  All are over 50%. All among the states with highest rates of food stamp recipients.  So the kids are living the low income expectations.

Where I currently am I periodically interact with inner-city kids. No surprise, there is a similar mindset – the kids see their future as minimum wage jobs that require no skills, or the expectation that the violence of their surroundings will catch up to them (crime, welfare, etc).  None of their expectations require education (although it is surprising how sophisticated their understanding of all of these issues are), so many do not pursue learning with vigor after 10 or 12 years old. Skipping school, suspensions, lower scores and grades are common.  Too many parents do not encourage their kids and the mindset creates deterioration of urban schools. Periodically I have students who are actively trying to escape the stereotypes, but they will confirm that school is not a priority for far too many  inner city kids.  No surprise they learn this from their parents who are often underemployed or lack good employment because they never obtained the education needed to escape the neighborhood. 

In both cases the problem is lack of employment expectations. The kids look around them and figure they have no hope of escaping the minimum wage, limited skill jobs. Unfortunately our job resurgence indicates that these are the jobs we are producing the most on far too many areas.  In the past 2 years, the State of Florida suggests that 90% of the jobs created are minimum wages jobs.  The local casinos are advertising for hundreds of jobs – as waiters, kitchen help, maintenance, etc. most starting at or just above minimum wage rate.  The hospitality industry is full or low wage, limited skill jobs. So is agriculture in rural areas. The problem is the message sent to kids?  Education is not rewarded, so why bother.

So what does this have to do with utilities?  Utilities are everywhere and inn every community. Education affects utilities because as technology grows, we need better job skills from workers.  Gone are the days of hiring people to dig ditches that may not need to read, write or do math.  We are computerizing everything.  As a result all of our jobs, regardless how much labor may be involved, need skills.  Utility field people are the face of the utility.  We need qualified, employees to can represent the utility well, not uneducated, ignorant people who can’t answer questions or who cannot communicate with the public about what they are doing.  The question is how to solve this problem especially in rural areas where education may not be valued. 

First, we need to get into the schools.  Not colleges, but middle schools.  That is where many students appear to be lost.  They get to be 16 and drop out.  Hanging out, not working, gangs, crime, drug cultures, etc all appear to be “easier” than going to school and then working to earn a living.  We need to create value in all of our jobs.  Certainly not all jobs need a college education, but  a high school diploma with basic abilities to read, write, do math and communicate to the public are needed to create value for us. We need to impress on rural communities and inner city kids that we provide desirable jobs and encourage them toward us.  That may mean internships, student efforts in schools, tours, and lots of interaction with teachers.  It takes time, but may be worth our while on many levels.  


I recent Wall Street Journal article outlined where growth is likely to be coming.  Of no surprise, Arizona, Las Vegas, Central Valley, San Antonio, Dallas, Houston, Denver, Albuquerque, Boise, Pensacola, Tallahassee, Raleigh, Atlanta, and the Washington DC area.  Only one of those areas is has water much water availability.  It means that all of these communities are in areas that are water limited.  We already know that Texas, Las Vegas and Arizona have lots of water problems.  Most of these areas have had issues in the past as well, and will have more in the future. 

Low growth areas:  Detroit, Cleveland, Chicago, Buffalo, Cincinnati, Omaha, and a variety of areas with plenty of water, but old infrastructure and limited funding.  So the big questions is how do we redirect development to areas with plenty of water as opposed to allowing development in areas where we know that there will be serious water supply consequences in the future?  It’s a leadership issue, but local officials and states are so in need to the growth we have discussed in prior blogs, that the long-term realities of water supply limits overrides the short term need to show growth in the communities to delay tax increases, water increases and the like.  But is delays the inevitable, with potentially serious future impacts.

 


SUSTAINABILITY OF UTILITIES – PART 2

Let’s take a look at some scenarios. Let’s assume you are a utility that serves 20,000 people (8000 customers), with 60 miles of water pipe, 60 miles of sewer pipe, 17 lift stations, and a water and wastewater plant.  Replacing this infrastructure might be valued at $90 million for pipe, $35 million for treatment plants, water supply and pumping equipment (current day dollars).  Let’s also assume that their annual budget is $11 million and the typical demands are 3 MGD yielding a monthly bill of $115/mo (water and sewer).

Let’s make some general assumptions like that the pipe infrastructure might last 100 years, but clearly the treatment and mechanical parts would mot.  They would need ongoing maintenance and replacement.  50 years is probably too long, but let’s go with it.  If the overall costs increase at 3% per year and money is set aside for repair and replacement. The utility will see fairly steady rates if the customer base grows 2-3% per year.  Ten years out, the budget will be $16 million.  Now for the scenarios.

If the customer base has grown at 3% per year, the customers will increase to almost 27,000.  More of an issue is what happens if that increase in demand (from 3 to over 3.4 MGD) needs to come from a new water source and requires new capacity.  Many utilities will use impact fees to offset this cost to current customers so as not to adversely impact current customers too severely .That’s the current assumption.  The result looks like this at 10 and 20 years:

 

Component

 

Value today

10 years

20 years

Customers

 

20000

26878

36122

 

Accounts

 

8000

10751

14449

 

Water  Pipe

60 mi

 $   45,000,000

 $     98,509,418

 $215,646,786

Sewer Pipe

60 mi

 $   45,000,000

 $     98,509,418

 $215,646,786

Treatment Plants and Pumping

3 MGD

 $   35,000,000

 $     76,618,436

 $167,725,278

Operations budget

 

 $     9,000,000

 $     16,255,001

 $  29,358,340

Capital Budget

 

 $     1,600,000

 $       3,502,557

 $    7,667,441

Debt

 

 $        400,000

 $         400,000

 $      400,000

Monthly Amount

 

 $              115

 $                156

 $             216

Increase per year

   

5%

5%

 

         

 

Assume 1% of pipe Replacement Costs +2% Plant

   

 

Assume operating budget inc 3%/yr but construction increases 5%/yr

 

 

                     

 

But what if the new treatment and supply are 50% more costly and impact fees assume the lower investment (typical)?  The cost for the budget and for the infrastructure replacement increases (with the delta from debt).  Cost are 50% higher:

 

Component

 

Value today

10 years

20 years

Customers

 

20000

26878

36122

Accounts

 

8000

10751

14449

Water  Pipe

60 mi

 $   45,000,000

 $     98,509,418

 $215,646,786

Sewer Pipe

60 mi

 $   45,000,000

 $     98,509,418

 $215,646,786

Treatment Plants and Pumping

3 MGD

 $   35,000,000

 $     92,289,117

 $202,029,937

Operations budget

 

 $     9,000,000

 $     23,731,487

 $  42,861,706

Capital Budget

 

 $     1,600,000

 $       3,815,971

 $    8,353,534

Debt

 

 $        400,000

 $       1,325,000

 $    2,825,000

Monthly Amount

 

 $              115

 $                224

 $             312

Increase per year

   

8%

7%

 

The normal assumptions are that growth will continue, but what if it does not?

 

What can be gleaned as a result of a non-growth or net decrease scenario?  How does sustainability get affected?  Let’s look at the no growth scenario.  In this light, rates will need to increase at least 5% per year to insure that the utility remains rate neutral.  If there is significant deferred maintenance, which is typical of may utilities, that cost will be added to the bill.  There are examples of utilities in Florida who finally caught up with deferred obligations which doubled their customers’ bill.  This scenario is doable, but the only real assumption changes that can be made are related to the lack of growth.  Deferring maintenance will once exacerbate the problem as there is not guarantee that growth will return.  Rate neutrality becomes a public relations issue, but not insurmountable.

 

Component

 

Value today

10 years

20 years

 

Customers

 

20000

20000

20000

Accounts

 

8000

8000

8000

Water  Pipe

60 mi

 $   45,000,000

 $     73,300,258

 $119,398,397

Sewer Pipe

60 mi

 $   45,000,000

 $     73,300,258

 $119,398,397

Treatment Plants and Pumping

3 MGD

 $   35,000,000

 $     57,011,312

 $  92,865,420

Operations budget

 

 $     9,000,000

 $     12,095,247

 $  16,255,001

Capital Budget

 

 $     1,600,000

 $       2,606,231

 $    4,245,276

Debt

 

 $        400,000

 $         400,000

 $      400,000

Monthly Amount

 

 $              115

 $                157

 $             218

Increase per year

   

5%

5%

               

Now let’s look at the decline issue.  If the population decreases by 25% over the ten year horizon, what does this say?  The costs will remain relatively constant, but the number of customers and demands for water will drive the rates up significantly. In ten years the rates could double in a community that is likely economically disadvantaged.  The higher rates may begin to discourage economic development, rate neutrality exacerbate the problem and may increase in costs for regulatory or deferred maintenance obligation becomes a significant issue:

 

Component

 

Value today

10 years

20 years

Customers

 

20000

16341

13352

 

Accounts

 

8000

6537

5341

 

Water  Pipe

60 mi

 $   45,000,000

 $     73,300,258

 $119,398,397

 

Sewer Pipe

60 mi

 $   45,000,000

 $     73,300,258

 $119,398,397

 

Treatment Plants and Pumping

3 MGD

 $   35,000,000

 $     57,011,312

 $  92,865,420

 

Operations budget

 

 $     9,000,000

 $     12,095,247

 $  16,255,001

 

Capital Budget

 

 $     1,600,000

 $       2,606,231

 $    4,245,276

 

Debt

 

 $        400,000

 $         400,000

 $      400,000

 

Monthly Amount

 

 $              115

 $                193

 $             326

 

     

7%

7%

 

         

 

Assume 1% of pipe Replacement Costs +2% Plant

   

 

Assume operating budget inc 3%/yr but construction increases 5%/yr

 

 

                         

 What can we glean from this?  Interestingly the failure to accumulate costs for growth, and the declining rate base end up with similar monthly costs.  Only by the no growth and collecting appropriate impact fees will costs be controlled, and even in that case, costs will double every 20 years or less.  The reality is that the failure to follow proper revenue collection protocols will severely limit the utility in future years.  High capital costs impact rates significantly.  Leaving it to some future commissioner to raise the rates is unfair to both the future decision-makers and customers.  It does not make you a leader either. 


Pipe wears out.  Concrete deteriorates, Steel rusts.  Aluminum pits. Mines play out.  Wells run dry.  But we strive for sustainability.  How do these disparate facts coexist simultaneously?  And if they don’t, how does this impact our long term prospects for our utility systems and communities.  And how do the decisions impact our understanding of sustainability.

An AWWA publication from 2010 was a compendium of thoughts on the meaning of sustainability form the perspective of water utilities.  One of the findings of the publication was that the understanding of sustainability had more to do with the perspective of the person being asked about sustainability than an overall comprehension of the inter-relationships of the concept of sustainability among different sectors.  For water supply entities, the economic sustainability of the community is not really their primary concern.  Instead they focus more on impacts to customers.  But water is a driver for economic development in a community. 

The message is that water utilities may need to look at the broader picture of sustainability in their community and extend the definitions to a wider range because no one else is and the community is looking for leadership.  The first paragraph focuses on infrastructure issues, which are commonly ignored in dealing with the concept of sustainability, but they are the ones traditionally focused on water supply issues.  The utility needs to look at infrastructure and financial outlook as a part of an overall sustainability strategy. 

There are certain assumptions that we make on many of our systems, and perhaps we need to revisit some of these assumptions in light of potential future realities.  For example, what happens to communities that do not grow?  Our current assumptions generally assume that there will be an ongoing increase in population or water use that will drive increases in revenues without specific increases on customers.  However what if you are Detroit where the populations has dropped in half in the past 50 years.  How do we deal with aging infrastructure and demands for increased water quality and reliability while maintaining fees at affordable levels for customers?  This is a particular problem when there are economic disruptions that create a large group of disenfranchised people who become more economically disadvantaged than they might otherwise already be.  The competition for sustaining water rates, infrastructure condition and water supplies can be a difficult conundrum.


A recent article in the South Florida SunSentinel newspaper raised an interesting question.  What they did was line up all the cities in the county and identify the total fees paid to the City by residents.  They took the tax rates, plus water, sewer, storm water, fire, garbage and any other fees.  The article raised an interesting question.  For example, Hollywood, West Park and Lauderdale Lakes had the highest cost per household – in excess of $3500/year.  The other end of the spectrum was Hillsboro Beach, Sea Ranch Lakes and Southwest Ranches, each under $2000/household.  Of note is that Southwest Ranches provides no water or sewer service (all wells and septic tanks on large lots), so a direct comparison is not really appropriate.  Property taxes were low, but fire fees were really high.  Sea Ranch Lakes is a tiny community with no sewer, so again, not really a good comparison.  Hillsboro Beach is among the wealthiest communities, but also tiny. 

 Most communities had total fees between $2100 and 3200/resident.  Why the difference? First, the value of property varies widely.  West Park and Lauderdale lakes have among the lowest values per household, so their taxes must be higher to provide the same level of service.  Hollywood, and Dania Beach (#4 on the list) had higher water, sewer and storm water costs.  While both have recent, ongoing infrastructure programs, both have large transfers from the water and sewer fund to the general fund, and in both cases the water and sewer customer base does not match the property tax base.  In Dania Beach’s case, the service area is half the City, so those residents are supporting the property tax funded services at a higher rate than their neighbors.  Hollywood struggled with major budget issues to used water and sewer funds to balance the budget.

The problem that this article did not address, but should have was that where water, sewer and storm water costs were high, what was driving this? Was in infrastructure investments that others simply have yet to make?  That’s ok and the fact that these utilities invested now may be more timing.  If the result is due to transfers to the general fund, that is an entirely different, and somewhat disconcerting problem.  First since the service areas are not the same. There is a fairness issue.  Some residents pay more for the same services.  It means the water and sewer system is not really an enterprise, with rates based on service costs.  Instead it is being used as a tax source.


One of the more interesting issues in Congress the past years is the Farm Bill which did not pass the House.  The issue was too many food stamp recipients.  The program has doubled in the past 10 years and now 1 in 7 families depend on supplemental assistance.   But here is an interesting question – wouldn’t you assume that the states with the greatest percentage of people getting food stamps would be those states that voted for the Farm Bill.  That would be those Democratic states like California, Colorado, the New England States, Pennsylvania and New York?  Well interestingly enough, you would be wrong.  The state with the highest percentage of people receiving food stamps is Alabama, followed by New Mexico and Tennessee, which are red states.  In fact all of the southeastern states are in the upper two third, all exceeding 15% of households.  Yet their representatives voted against their constituents!  This should not be a surprise.  All of the “blue” states, except Washington and Oregon were below 15%.  Some were below 10%. 

So how does this affect water and sewer systems?  There is an ongoing effort at the EFC at UNC Chapel Hill and other areas regarding the concept of affordability of water and sewer services.  The concept is that costs in excess of 3.5 or 4.5 % of income may be burdensome on residents.  Effort is trying to come up with ideas to address low income ratepayers.  The loss of food stamps actually exacerbates this problem since most of these same ratepayers are the ones receiving food stamps.  The conflict between paying for food and water/sewer service increases, putting more low income residents at risk.  Congress is doing utilities no favors by disrupting embedded programs that people depend on.  We can debate whether the program, a transfer of funding from wealthier, blue states, to poorer, red states is a appropriate federal revenue transfer, but the reality is that the dependency has been created.  Compounding the problem is that employment is not nearly back to 2007 levels, and salaries for most of us have declined with respect to buying power over the past 30 years.  As a result, many residents, including many hardworking, employed residents, continue to struggle.  We should be concerned about the acts of Congress and remember some of our representatives may not be voting to help their constituents.  


In June, President Obama made a speech about the increase in renewable power that the United States had created in the last 4 years, and announced goals to double this amount in the next four.  Virtually all of this power was solar and wind power.  Little mention was made of hydroelectric or onsite sources.  But the latter have been around much longer than the former sources and there may be options to increase their contributions under the right circumstances. 

 

Hydroelectric power has been in use in the US for over 100 years.  By the 1930s, 40 percent of the nation’s power came from hydroelectric dams, including some fantastic accomplishments of the time like the Hoover Dam.  Today we have over 100,000 dams in the US, most of which provide power.  Today hydroelectric is only 6 percent of our total.   The reluctance to continue with hydroelectric power involved fisheries, land acquisition costs and legal issues.  Some hydropower options are excellent.  Hurting fisheries (which disrupt local economies dependent on those fisheries) may not be, and therein lies part of the dilemma.

 

But water and wastewater utilities are actively looking for means to reduce power costs.  Depending on the utility, pumping water can account for 80-90 percent of total power consumption, especially with high service pumps on water systems that require high pressures.  More efficient pumps is one obvious answer, but of fairly limited use unless your pumps are really old.  Variable speed drives can increase efficiency, and the cost is dropping.  But note that with all that high pressure, how do utilities recapture the energy?  We often don’t and the question is whether there is a means to do so that can benefit up.  The first step is looking at plant hydraulics.  Is there a way to recapture energy in the form a pressure.  For example of reverse osmosis systems, we can install a turbine to recapture the pressure on the concentrate side.  They are not very efficient at present, but the potential is there.  On long gravity pipe runs for water supply, a means to recapture pressure might also be available. 

 

Of course on-site generation of power is a potential solution. Water and sewer utilities have land, and on the wastewater side, methane, so producing power is possible.  This solution, however, may not be embraced by power utilities due to the potential revenue reduction potential and loss of embedded reserve capacity at water and wastewater plants.  As the water facility takes on on-site generation, their load profile may shift significantly placing them in under a different rate structure. This may greatly reduce the benefit to the facility.  There are, however, approaches to permit win-win solutions. The goal is to put willing power and water utilities together to permit local generation that will benefit both power and water utility systems to encourage public – private partnerships.  A medium to large wastewater plant can generate at least a third of its power needs.  Some even more if they take in grease, oils and other substances that should not be put into the sewer system.  The potential there is significant.  EBMUD has a plant that is a net seller of power.  We should look for opportunities.  But don’t forget, water utilities can create hydropower without impacting fish populations. We just need to seek out the right opportunities.