June 15, 2009
description
Transcript of June 15, 2009
![Page 1: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/1.jpg)
June 15, 2009
Pipeline Safety &
Efficiency
![Page 2: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/2.jpg)
Pipeline Safety & Efficiency
Our aging infrastructure not only poses significant safety hazards, but can impact public health. What strategies and best
practices can be used to improve our infrastructure?
![Page 3: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/3.jpg)
Current operationsCurrent operations
Operating Locations
![Page 4: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/4.jpg)
U.S. Water Industry Today
Highly fragmented; few providers of scale
No substitute exists
Only utility that is ingested
Infrastructure concerns – EPA Needs Survey - $335 billion over the next
20 years
Water is subject to multiple state regulatory jurisdictions (environmental & economic)
![Page 5: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/5.jpg)
Aging Infrastructure
Ongoing Problem: high plant rehabilitation and pipe replacement costs– Municipalities are deferring costs– Private companies face regulatory lag
(disincentive to invest)
![Page 6: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/6.jpg)
$335 Billion Needed Over the 2007-2027 period up from $277 from 2003 Report to Ensure Compliance with Existing and Future Water Regulations
Treatment, $75.1
Storage, $36.9
Transmission and
Distribution, $200.8
Source, $19.8 Other, $2.3
EPA’s Estimate of the National Need for Water Infrastructure Investment
Source: 2008 EPA Needs Survey
![Page 7: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/7.jpg)
U.S. Water Industry: The Most Capital Intensive Industry
EPA rules require large investment in filtration plants
Immense investment needed for distribution system and road repair
More capital per revenue than all other utilities
$0.00
$1.00
$2.00
$3.00
$4.00
Capital Invested per $1 of Revenue
$0.94 $1.11 $1.61 $3.45
Gas-Dist Telephone Electric Water
Source: 2005 AUS Utility Reports
![Page 8: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/8.jpg)
Pipe Cleaning and LiningBefore After
![Page 9: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/9.jpg)
Candidate for pipe replacement
![Page 10: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/10.jpg)
![Page 11: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/11.jpg)
![Page 12: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/12.jpg)
Infrastructure Surcharges
Connecticut –WICA
Delaware - DSIC
Illinois - QIP
Indiana - DSIC
Missouri – DSIC
New York - SIC
Ohio - SIC
Pennsylvania - DSIC
![Page 13: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/13.jpg)
Potential Benefits of a DSIC Program
– Address aging infrastructure that presents water quality problems
– Proactively addresses main breaks (boil water notices)
– New mains installation to eliminate dead ends (facilitates looping projects)
– Reduce unaccounted for water – Replace fire hydrants and larger pipe for fire
flows– Provides economic reliability in the community– Allows coordination with DOTs and local
government
![Page 14: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/14.jpg)
Potential Benefits of a DSIC Program
Mitigates rate shock Reduces rate case expense Promotes the acquisition of small and non-
viable water systems Allows for pro-active planning Positive impact on capital attraction and
cost of capital Accelerates the replacement of aging
infrastructure Rate payer protections
![Page 15: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/15.jpg)
Proactive Service
![Page 16: June 15, 2009](https://reader036.fdocuments.in/reader036/viewer/2022081506/568152c4550346895dc0e24e/html5/thumbnails/16.jpg)
Summary
Prepare and plan for the future now
Infrastructure surcharges target environmental, operational and public safety concerns
Encourage economic development