Rate
Increases
10%
Utility Sources of Capital, 2010
Operational
Savings
47%
Other
15%
Bonds
9%
Courtesy of
Mueller using
data from AW WA
Grants
3%
Loans
16%
biggest concern.)
The significant rate increases occurring in many cities across the U.S. show
we are heading toward pricing that
could provide additional funding for
repairs and replacement. The New York
Water Board recently adopted a rate
increase of approximately 13% for
2011, marking the fourth consecutive
year the city’s rates have increased by
more than 10%. The city council of
Pasadena, CA, recently approved a 30%
increase in water rates. Numerous other
cities, such as Indianapolis; Phoenix;
Houston; and Toledo, OH, to name a
few, are taking similar actions. In fact,
the U.S. Bureau of Labor Statistics
indicates water and sewage services
have experienced significantly greater
long-term consumer price increases
than any other utility service—even natural gas—since 1990.
Some municipalities have also started moving forward with projects using
technologies to help improve operational efficiencies. For example, the
Sewerage and Water Board of New
Orleans (SWBNO) recently began
using an acoustic-based leak detection
system to assess the structural condition of its underground water pipes.
This advanced method enables
SWBNO to efficiently prioritize the
replacement of pipes in its water system based on the extent of deterioration. Using the technology, the city can
also pinpoint water main leaks without
having to undergo expensive and disruptive excavations. The SWBNO
credited this process with locating
numerous leaks in its mains that were
causing between 75,000 and 100,000
gallons of water loss per day (the
equivalent to filling one Olympic swimming pool every six days).
New Orleans and other cities that
have started using acoustic-based leak
detection, such as Las Vegas; Chicago;
Portland, OR; and Oakland, CA, can
take phased, cost-effective and non-invasive approaches to prioritizing
water system repairs and replacements
before serious main breaks occur.
Winston-Salem, a city with the third
largest water system in the state of
North Carolina, and Port Angeles, WA,
are other areas with forward-thinking
municipalities. Both have started
upgrading their water infrastructures to
improve customer service and opera-
tional efficiencies and to address non-
revenue water. Winston-Salem
announced plans to upgrade its water
metering system with AMR, and Port
Angeles plans to implement AMI for its
water and electric services.
1916
1919
1922
1925
1928
1931
1934
1937
1940
1943
1946
1949
1952
1955
1958
1961
1964
1967
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
Long-term trends in consumer prices (CPI) for utilities [1913-2008]
350
325
Water and
sewer
300
275
250
225
200
175
150
125
100
75
50
25
0
1913
Source: Beecher IPU-MSU
Local phone
Natural gas
ALL ITEMS
(CPI)
Electricity
Telephone
services
(1997=100)
THE BOTTOM LINE
The condition of America’s water infrastructure remains critical. However,
increased awareness of its condition
appears to be prompting actions that
can help move it in the right direction.
Despite the current spending shortfall to
replace aging water infrastructure,
improvements are being made in many
areas of the country through tools such
as rate increases, municipal bonds and
new technology. All of this effort is
working toward ensuring we continue to
have access to an adequate supply of
safe, clean drinking water. VM
MARTIE ZAKAS is senior vice president, strategy,
corporate development & communications, for
Atlanta-based Mueller Water Products, Inc.
( www.muellerwaterproducts.com), a North
American provider of water infrastructure
products and services.
