Energy Management & AlternativeEnergy Use in the Water Sector

John S. Young, Jr., P.E.President – American Water Works Service Co.November 19, 2008

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Utility Only

O&M Only

Both

We manage more than 350 individual water systems in 32 states serving approximately 15M people in 1,600 communities

Every day we operate and manage:

• 45,000 miles of distribution and collection mains

And more than:

• 80 surface water treatment plants

• 600 groundwater treatment plants

• 1,000 groundwater wells

• 40 wastewater treatment plants

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How Much Electricity Does the Water Industry Use?

• Drinking water and wastewater consume: 3% of domestic electricity1

7% of worldwide electricity 19% of California electricity2

• Water utility energy use varies widely from 0.25 to 3.5 kWh per 1,000 gallons of drinking water produced and delivered3

• The median 50% of water utilities serving populations >10,000 have electricity use between 1.0 and 2.5 kWh/1,000 gallons3

1. Electric Power Research Institute (Burton 1996)2. Energy Down the Drain: The Hidden Costs of California’s Water Supply 3. AwwaRF 91201.Energy Index Development for Benchmarking Water and Wastewater Utilities

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Why does it take so much electricity to pump water?

Water is Heavy! Over 4 tons per 1,000 gallons!

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Emerging Technologies Use More Energy

New regulations are increasing the use of the following, energy intensive treatment processes:

Added Technology Additional Energy• UV Disinfection 70-100 kWh/MG• Ozone 170 kWh/MG• Membranes

Nano and RO 1,800 kWh/MGUltrafiltration 1,000 kwh/MGMicrofiltration 100 kwh/MG

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Water Resource & Water Quality Challenges

Climate Change

Drought, Saltwater Intrusion,Unpredictable Weather Patterns,

Lower Raw Water QualityIncreased Energy Consumption

Technology SolutionsE.g. UV, Ozone, &

Membranes

Water Resource & Water Quality Solution Cycle

Innovative Solutions are

needed to break this cycle!

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Climate Leaders

• A voluntary EPA partnership with U.S. companies to develop long-term, comprehensive climate change strategies

Inventory corporate GHG emissions

Set corporate-wide GHG reduction goals

Measure and report GHG emissions to the EPA

• For more information and a list of Climate Leaders partners, please visit www.epa.gov/climateleaders

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Project Status

• January 2006: American Water signs Climate Leaders Partnership Agreement

• March 2006: Submit draft GHG inventory to EPA

• March 2006: AW Climate Leaders Kick-off Workshop

• March 2007: Submit database tracking plan to EPA

• December 2008: Complete 12 months of GHG emission monitoring and report same to EPA….baseline

• September 2009: Submit GHG emissions reduction plan to EPA

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Creating a GHG Inventory

Conduct inventory using internationally recognized protocol (United Nations IPCC-Intergovernmental Panel on Climate Change) which includes:

Stationary Combustion: Fuels burned on-site for Furnaces, On-Site Generators, Hot Water Heaters, Engine Driven Devices (e.g. pumps), etc.

Mobile Combustion: Cars, Trucks, Boats & Planes

Fugitive Emissions: Refrigeration and Air Conditioning Units, Process emissions, Landfill emissions

Indirect Sources: From the fuels used to produce Purchased Electricity or Steam

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AW Inventory of GHG Emissions

Emissions in metric tons CO2e includes CO2, N2O and methane emissions

Emissions from flared methane gas and HVAC were both <0.5%

Emissions Source Category

Fuel Quantity Units Emissions (Metric Tons

CO2e)

Percent Total

EmissionsStationary Combustion Natural Gas 3,707,312 therms 19,614 2.32%

Diesel 427,632 gallons 4,323 0.51%

Mobile Combustion Gasoline 2,410,653 gallons 22,603 2.68%Diesel 409,189 gallons 4,126 0.49%

Purchased Electricity Electricity 1,258,761,005 kWh 793,536 94.00%

Total Emissions 844,203 100.00%

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Strategies to Reduce Energy and GHGe Intensity

• Establishment of an Energy Management Group• Decreasing Non-Revenue Water (NRW) decreases water

pumped = lower electrical use• Increase Pumping Efficiency

Conduct pump tests and optimize efficiency by trimming or replacing impellers

Install VFDs to maximize pump efficiency at each pump demand Install new high efficiency pumps and motors

• Upgrade lighting to latest generation florescent lighting• Optimize HVAC systems to provide only that level of cooling

or dehumidification that is needed

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What About “Green Power?”

• Solar

• Wind

• Bio-methane from plant and landfill recovery

Purchasing or producing “Green Power” will decrease a utility’s greenhouse gas emissions, but it will not lower the power consumed.

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Canal Road Solar Array

590 kW ground-mounted photovoltaic system

Produces 687,000 kilowatts of energy / year

Eliminates 721,245 pounds (327 metric tons) of CO2e per year

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Benefits of On-Site Solar Generation

• Fixed effective power cost for system life (25 years or more) Last 30 years, electricity has increased 4.6% annually

• Hedge against electricity/fossil fuel price volatility Mitigate exposure to price spikes with Time Of Day rates

• Reasonable return on investment Availability of significant NJ rebates, federal tax incentives and

tradable Renewable Energy Credits (SREC) yield a return on investment

• Environmental Stewardship – Greenhouse Gas Reduction Community goodwill Positive publicity

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Project Timeline

• June 2004 - NJ Clean Energy Program rebates secured• December 2004 – Supply Contract Awarded to Dome-Tech

Solar• January 2005 - Site Plan Submitted to local officials• February 2005 – Solicit Installation Bids & Award Installation• April 2005 Obtain Planning Board Approval• May 2005 – Installation Begins• September 2005 – System Startup

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NJAW - Canal Road System Performance

0.00

10000.00

20000.00

30000.00

40000.00

50000.00

60000.00

70000.00

80000.00

90000.00

100000.00

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Months of Year

En

erg

y P

rod

uced

(kW

H)

PV Watts Expected (kWH)

Actual Measured (kWH)

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Economic Benefit

• Total cost of project: $3.5 million

• Net cost of project: $1.6 million (after receipt of rebates from NJ Clean Energy Program)

• Generate over 585,000 kwh/year.

• Annual savings: $61k/yr in avoided electricity purchase $99k/year for 5 years in sale of Renewable Energy Credits $803k in tax benefits over six years

• Approximately 5 year payback

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Other Environmental Equivalents

One year reduction from a 585,000 kWh solar plant.• 699,856 pounds of carbon dioxide

This is equivalent to:• Planting 94 acres of tree seedlings• 2.6 Acres of forest preserved from deforestation• 36,163 gallons of gasoline • 13,230 propane cylinders used for home barbeques

Sources: US EPA and U.S.- Climate Technology Cooperation

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Conclusions

• Addressing climate change makes good business sense

• Water utilities are not just the recipients of the effects of climate change, they are also part of the problem!

• Multiple mechanisms exist for water systems to control impact climate change

Reduce electrical use

Remember: 80-90% of water treatment plant electric consumption goes to pumping

Look beyond just reducing electrical use – be creative!

• Climate Leaders and other programs like it provide a structured mechanism for documenting and minimizing GHG emissions