Efficient Operations

Utilities strive to reduce costs and improve operations for the benefit of their customers.

Good municipal utilities are always looking for ways to increase efficiency and save their ratepayers money. It’s part of providing the best service possible.

In Farmington Hills, Mich., profiled in this month’s issue of Municipal Sewer & Water, it’s all about reducing the amount of water drawn during peak use periods, because that water is more expensive.

Farmington Hills owns its own water and sewer systems, but the Detroit Water and Sewerage Department (DWSD) provides all of the city’s water. Rates are calculated for each of the communities served by the DWSD on different models, based on peak hour demand or maximum day demand, and distance and elevation from the water treatment facility.

Water rates are based on meeting peak demand with a certain pressure and flow. For Farmington Hills, peak demand hours are from 6 to 10 a.m. To help offset those peak rates, the city decided to build a new water tower, allowing the utility to shave off the peak demand and satisfy it with water drawn into the system at off-peak hours.

In addition to adding storage to reduce peak demand, the water tower also provides Farmington Hills with additional supply and capacity during power outages and improves fire protection for the city.

Detroit announced water rate hikes in January 2014, and it looks as though the new water tower is already making a difference. On July 1, Farmington Hills’ residential water rates will rise about 1.5 percent, compared to neighboring Farmington’s 4.2 percent. Local officials attribute the difference to the tower’s anticipated effect on peak demand.

In next month’s issue of MSW, you’ll read about the Mesa Water Resources Department in Mesa, Ariz., another utility working hard to reduce expenses during peak demand periods.

Like all water and wastewater utilities, MWRD’s systems consume a lot of electricity, so the emphasis has been on reducing energy use and cost wherever possible.

The MWRD’s SCADA system monitors and controls pump stations, and manages the water distribution system and storage reservoirs for energy savings. The utility tries to run equipment at off-peak hours as much as possible, and the savings continue to grow.

MWRD is constantly monitoring pump performance at its well sites, pump stations and throughout the distribution system. Older models are replaced with high efficiency pumps whenever and wherever necessary. At three of Mesa’s largest pump stations, higher efficiency pumps resulted in electrical cost savings of 15 percent.

Energy consumption is also on the radar screen at the treatment plants. Digester methane gas captured at one of the utility’s reclamation plants is used as fuel for cogeneration, saving about $5,500 per month.

For its overall efforts to improve operations, MWRD received a Gold Award for Exceptional Utility Performance from the Association of Metropolitan Water Agencies in 2013. The utility was honored for several reasons, including cost control.

The Gold Award from the AMWA made specific mention of the utility’s per capita operating costs, which are 30 percent lower than the national average.

Clearly, both of these utilities have efficiency and the interests of their customers high on their priority lists. Most utilities do, but these two are great examples of how to implement strategies to support those priorities.

Enjoy this month’s issue, and keep an eye out for the July issue.



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