Development of performance indicators for small Quebec drinking water utilities

This study presents a comparative performance analysis of small drinking water utilities in Quebec (Canada). The investigation bears on 10 utilities that use surface water or groundwater under the direct influence of runoff and apply chlorination as the only treatment before distribution. The utilities under study were divided into two groups: four utilities that had never or rarely provided water violating provincial drinking water microbiological standards (relating to fecal and/or total coliform bacteria), called nonproblematic utilities, and six utilities that quite often violated the standards, designated as problematic utilities. The objective of the study is to develop utility performance indicators capable of explaining current and historical distributed water quality. Indicators are based on operational, infrastructure, and maintenance characteristics of utilities that are integrated using a multivariable weight-based index. Results show that utility performance indicators are systematically better for the nonproblematic group of utilities as compared to the problematic group. Disinfection-related, infrastructure, and maintenance variables are those that most contributed to indicator values. Sensitivity analyses served to assess the impact on indicator results of excluding variables and changing their weights.     

How does the operational environment affect utility performance? A parametric study on the waste sector

The urban waste treatment service has been a sensitive issue for the Portuguese governments in the past decades. Among other measures, the environmental and economical issues led to the creation of a sector-specific regulator for the waste sector. Considering this atypical circumstance in the worldwide context it is worth studying the external factors that may influence the waste utilities efficiency along with the regulation role. In this regard, we applied the parametric approach of the stochastic frontier analysis to evaluate the influence of the operational environment on the urban waste services performance. The sample included 32 utilities responsible for the waste treatment service in Portugal. The results showed a negative influence of factors, such as the existence of regulation, the distance to the waste treatment facilities and the provision of other services on utility performance. We also observed some benefits from privatisation and incineration, although these options have some particular features.     

ECONOMIES ASSOCIATED WITH SIZE OF WATER UTILITIES AND COMMUNITIES SERVED IN NEW HAMPSHIRE AND NEW ENGLAND1

ABSTRACT. This study investigates economies associated with size of New England water utilities. Regression analysis techniques were applied to annual water cost and production data reported in the American Directory of Water Utilities (1968-1969). Modest economies of size in the production of water were found. Because in large communities more water is used per person, total cost increases at a slightly faster rate than population increases, but per unit costs of producing water decline. Substantial economies occurred when the number of customers was held constant and volume of water per customer increased. This study indicates possible economies when two or more of the many very small utilities combine activities to form a larger unit and by encouraging present customers to use more water.     

MODELING WATER UTILITY FINANCIAL PERFORMANCE1

ABSTRACT: The purpose of this paper is to present a theory and model for assessing the financial health of public water systems. Using financial information from 25 water utilities in Georgia, the paper seeks to identify the causal relationships between the financial performance of a water utility and its fiscal position. The need for a theoretical understanding of water utility financial health is the result of the increasingly stringent performance requirements under the Safe Drinking Water Act (SDWA). The issue has become particularly important for small water systems that will be exposed to significant financial demands. A set of financial ratios were developed and tested in a model that was based on liquid asset theory. The model contained five variables designed to account for the size of liquid assets, current debt, cash-flow, and the level of expenses. The variables fit the need of water utilities: to provide an adequate level of operation and maintenance to meet current and future system needs as well as SDWA standards.     

Public Versus Private: Does It Matter for Water Conservation? Insights from California

This article asks three connected questions: First, does the public view private and public utilities differently, and if so, does this affect attitudes to conservation? Second, do public and private utilities differ in their approaches to conservation? Finally, do differences in the approaches of the utilities, if any, relate to differences in public attitudes? We survey public attitudes in California toward (hypothetical but plausible) voluntary and mandated water conservation, as well as to price increases, during a recent period of shortage. We do this by interviewing households in three pairs of adjacent public and private utilities. We also survey managers of public and private urban water utilities to see if they differ in their approaches to conservation and to their customers. On the user side we do not find pronounced differences, though a minority of customers in all private companies would be more willing to conserve or pay higher prices under a public operator. No respondent in public utility said the reverse. Negative attitudes toward private operators were most pronounced in the pair marked by a controversial recent privatization and a price hike. Nonetheless, we find that California’s history of recurrent droughts and the visible role of the state in water supply and drought management undermine the distinction between public and private. Private utilities themselves work to underplay the distinction by stressing the collective ownership of the water source and the collective value of conservation. Overall, California’s public utilities appear more proactive and target-oriented in asking their customers to conserve than their private counterparts and the state continues to be important in legitimating and guiding conservation behavior, whether the utility is in public hands or private.     

An Experiment in Making Water Affordable: Philadelphia’s Tiered Assistance Program (TAP)

The ability to pay for water and wastewater services is a growing issue in the developed world. To this point in time, utilities have helped customers grappling with affordability issues using different types of customer assistance programs (CAPs). Income‐based billing approaches differ from CAPs in that bills are structured so as to be affordable for customers at the outset. Recently, the City of Philadelphia implemented an innovative program to work towards resolving the affordability problem in their city using income‐based billing. This tiered assistance program or TAP structures bills for water, wastewater, and stormwater services to program enrollees’ income. Given the innovative nature of the program, this paper describes the rollout of TAP and assesses the impact of the program on customers and utility revenues. The paper closes with a critical assessment of TAP and considerations for utilities evaluating the implementation of similar programs.     

Gauging the Vulnerability of Local Water Systems to Extreme Events

Water utilities that rely on surface water may be vulnerable to future droughts and floods, a vulnerability that may be magnified by climate perturbations as well as shorter-term and, in some cases, ongoing changes in the political and regulatory environment in which utilities operate. Unfortunately, day-to-day responsibilities currently occupy most utility operators, leaving little time to plan for inherently uncertain effects. The record of actual responses to past droughts and floods can be illuminating, however, particularly when placed in the context of plausible hydrologic disruption and pressures such as population growth, floodplain development and new regulatory demands. This paper draws on interviews with water utility operators in the northwestern USA to highlight opportunities and constraints that water utilities may face vis-à-vis such disruptions. Key considerations affecting vulnerabilities include water rights, institutional barriers to efficient utility operations, hazard management policy and the fiscal status of utilities.     

Residential Water Demand Management: Lessons from Aurora,Colorado1

Abstract: Residential water demand is a function of several factors, some of which are within the control of water utilities (e.g., price, water restrictions, rebate programs) and some of which are not (e.g., climate and weather, demographic characteristics). In this study of Aurora, Colorado, factors influencing residential water demand are reviewed during a turbulent drought period (2000‐2005). Findings expand the understanding of residential demand in at least three salient ways: first, by documenting that pricing and outdoor water restriction policies interact with each other ensuring that total water savings are not additive of each program operating independently; second, by showing that the effectiveness of pricing and restrictions policies varies among different classes of customers (i.e., low, middle, and high volume water users) and between predrought and drought periods; and third, in demonstrating that real‐time information about consumptive use (via the Water Smart Reader) helps customers reach water‐use targets.     

A CATALYST FOR REGIONALIZATION OF RURAL WATER SYSTEMS1

ABSTRACT: The National Regulatory Research Institute has recommended the merger of small rural water districts in the United States. Success at bringing about merger of these districts, which contain fewer than 3,500 customers, has been highly limited. The subject of this paper is a demonstration project that may act as a catalyst to achieve the desired goal of regionalization. A computerized hydraulic data management program (CHDMP) was developed for a case study in Nelson County, Kentucky. University professors, graduate students, and two water utilities’ staffs cooperated in network analysis employing computer hardware and software. The utilities’ staffs were taught the science and technology of hydraulic model preparation, simulation, and analysis for the case study distribution systems. As an integrated system, the model contained 294 pipes, 234 nodes, six pumps, and 11 tanks. Each utility's problem areas were identified and some of the individual and mutual benefits of hydraulic planning were illustrated. A dialogue resulted between the managers. Each manager described his goals and agreed that, although political merger was not feasible at the present time, future economic factors could be a definite influence in reversing that decision.     

THE POLITICAL INFLUENCE OF RESIDENTIAL CONSUMERS ON WATER RATES1

ABSTRACT: The regulatory process such as that for water rates can be viewed as a bargaining process between regulators, utility management, and consumers. This bargaining process involves both political and economic influences. In an attempt to empirically verify that utility rates are a product of both economic and political factors, a sample of publicly-owned water utilities was subjected to regression analysis. As expected, cost and cost-related factors were positive and significant determinants of residential water rates. Using an admittedly imperfect measure of residential user political influence, there was evidence that increased political activity results in lower water rates. Furthermore, the political influence and water rate linkage is more evident in small water utilities than in larger suppliers.     

SIMULATION AS AN AID TO DECISION MAKING IN A WATER UTILITY1

ABSTRACT. Middle and high management levels within water utilities would find their decision making activities greatly enhanced if provided with a set of techniques having the following characteristics: (1) the ability to procure information and knowledge about real-life systems, (2) the ability to promote analysis of the real life system and (3) the capacity to gauge the impact of decisions. A model/simulation is presented, having the capability to mime operational aspects of water supply systems. The simulation produces time series of what are considered relevant operational variables. These series are amenable to analysis of both static and dynamic effects of alternative policies, changing environmental conditions and varying parametric specifications. Because of its modular structure and the ad hoc programming language utilized, it offers great flexibility. The model/simulation allows extensions, deletions and modifications without consequent reformulation or extensive reprogramming. It performs a number of statistical tests useful for its own verification and validation. Also available are a suggested methodology and procedures for model use, possible difficulties with data gathering and operation, plus an idea of what cannot be done with the currently extant model version.     

Irrigation and collective action: A study in method with reference to the Shiwalik Hills, Haryana

In recent years decentralized development approaches have gained prominence in the agricultural sector. A host of community based watershed management projects have been implemented that encourage community organizations to undertake management of previously government controlled irrigation systems and forests. Community organizations have been given the responsibility of managing water distribution, collection of irrigation service fees and undertaking routine maintenance of irrigation infrastructure. In this context, analysis of irrigation management has concluded that groups that are relatively homogeneous may fare better than heterogeneous groups in facilitating collective action. However, this article argues that analysis of the influence of group heterogeneity on collective action is complicated because of its multi‐dimensional nature and the presence of non‐monotonic effects in mechanisms linking heterogeneity and collective outcomes. The article discusses the importance of context specification in analysis of group heterogeneity through a discussion of elements of a joint management contract in Haryana (India), identification of key variables with a potential to explain collective action in irrigation management and construction of household endowment and water interest scores to account for the influence of group heterogeneity in facilitating collective action. In the process of applying household endowment and water interest scores, the authors highlight the role of local ecological variation and non‐farm employment in influencing collective action. Proper specification of local context enables the researchers to rely on household endowment and water interest scores to predict conflicts and potential for irrigation service provision and compliance with irrigation service rules.     

Canopy slope effect on the performance of the solar chimney power plant

Solar chimney power plants constitute an impressive construction by its size and its output seems low for its dimensions. Although many works have been carried out on the subject, there is still much scientific and technical improvement to be done. In the present work, we consider the modeling of turbulent flow under the effect of natural convection within a solar chimney power plant (SCPP) by performing numerical simulation using the Saturne Code coupled with Syrthes code. The objective of the study is the analysis of the collector cover slope influence on the performance of the SCPP in two cases. In the first case, the storage system considered is composed solely of the ground under the collector. For the second case, the storage system is made, in addition to the ground, of a 10 cm thick tub filled with water, covering the entire surface of the collector. The concept of minimizing the entropy production is also studied with the objective of optimizing the geometric configuration as well as the effect of the collector cover slope on the efficiency of SCPP. The boundary conditions are defined according to the meteorological data for a typical day available on the site of Adrar, Algeria. The results allow us to focus on the storage system influence on the SCPP performance and the duration of its operation after sunset. This leads to the improvement of the global efficiency of the SCPP. Results show the positive impact of the extra storage media use and the configuration which improves the velocity at the chimney entrance.     

BENEFITS OF ITERATIVE WATER SUPPLY FORECASTING IN THE WASHINGTON,D.C., METROPOLITAN AREA1

The three largest water utilities in the Washington, D.C., metropolitan area (WMA) rely on the Potomac River and its reservoirs for water supply. These utilities have committed to a periodic review of the system's adequacy to meet future demands. In 1990, 1995, 2000, and again in 2004 (for publication in 2005) the utilities requested that the Interstate Commission on the Potomac River Basin (ICPRB) conduct a 20‐year water demand and resource adequacy study to fulfill this need. The selection of the five‐year interval provides multiple benefits. It allows regular updates and incorporation of recent demographic forecasts, and it increases visibility and understanding of the adequacy of the region's water resources. It also provides adequate time to conduct research on the physical system and to incorporate modifications based on this research into subsequent studies. The studies and lessons learned are presented in this case study of the WMA. The work has been a natural outgrowth of a long history of cooperative water supply planning and management among the main WMA water utilities and ICPRB.     

Communicative diagnosis of cost-saving options for reducing nitrogen emission from pig finishing

Reducing nitrogen emission from livestock production is usually perceived as costly. Nevertheless, production process related measures addressing the transformation of input(s) into output(s) may result in a cost-saving reduction of nitrogen emission. This paper explores the separate and combined use of traditional key performance indicators and an environmentally adjusted Data Envelopment Analysis (DEA) to reveal firm-specific cost-saving mechanisms for pig-finishing farms. Traditional key performance indicators are easy to communicate but have shortcomings when assessing benchmarks for comparative farm analysis. The environmentally adjusted DEA decomposes both cost and environmental efficiencies into technical and allocative efficiency components, separating the physical production analysis from price and nutrient content information. DEA makes efficiency benchmarks and improvement paths explicit, but the practical value of such efficiency scores is low. This paper proposes to take advantage of both methods: concrete benchmarks and eligible improvement paths are assessed using frontier methods, while the decision variables that steer farmers towards changes are described in terms of traditional key performance indicators. This leads to an improved diagnosis that is easy to communicate to farmers and may therefore facilitate decision support. Our pig-finishing case study shows that farms can achieve economic-environmental win–win situations through improving technical, cost allocative and cost efficiencies, which are mainly driven by feed conversion. Less technical efficient farms are found to require a lower delivery weight in order to minimize costs, which shows the farm-specificity of economic-environmental improvement advice.     

EFFECTIVE WATER PRICING1

ABSTRACT: When the goal of water pricing is elevated from mere cost recovery to deriving the greatest value from scarce water and associated nonwater resources, conventional rate regimes are found to be deficient. To address the challenge of creating rates that are both efficient and budget-balancing, several theoretical and practical aspects of rate-making are considered. Purposeful selection of rate parameters for a specific billing system is demonstrated to serve efficiency and cost recovery objectives. Attention to non-accounting opportunity costs is an important system element, but these costs are often not fully borne by the utility or its customers. In situations where this issue is serious, state or federal pricing policy may be necessary.     

Packaging glass contained in the heavy residual fraction refused by Portuguese Mechanical and Biological Treatment plants

Mechanical and Biological Treatment (MBT) is an important strategy to manage Municipal Solid Waste (MSW) in Europe. The presence of recyclable materials on MSW depends on different factors such as inefficiencies in the Municipal Solid Waste collecting schemes and to the low level of citizenship environmental education. Among other products, MBT plants produce a residual fraction, named here as heavy residual fraction, that contains a significant amount of packaging glass which in Portugal is currently landfilled. This material is not recycled because it is heavily contaminated with other materials, preventing its processing in Material Recovery Facilities (MRF).In this paper the characterization, including particle size and composition, of the residual fraction of six Portuguese MBT plants is presented. The relevant variables that determine the heavy residual fraction characteristics were identified. It was observed that the MBTr particle size distribution is different and depends mainly on the place on the flowsheet where the MBTr exits the process, which is determined by the type of biological process and by the aperture of the last screen where the product passes through. The content in glass varies from 33 to 83%. These values are mainly related with the upstream glass sorting and with the efficiency of the recovery of the organic fraction which is the glass main contaminant. The second main contaminant is “stones”.The quantity of glass contained in this product in all the plants that will be in operation in Portugal in 2014 was estimated. The work shows that if all the 48,000 of glass could be recovered the Portuguese recycling rate would increase by 4.4%.     

Universal access to water and sanitation: Why the private sector must participate

Against the background of the current state of provision of drinking water and sanitation in the world — with one billion lacking safe water, and 2.2 billion not having adequate sanitation — this article argues that private participation is necessary. The most important issues for the management of water utilities in the 21^st century are identified as mobilizing investment for the highly capital intensive operation of water supply and sanitation infrastructure, and achieving efficiency in the delivery of services. The article highlights the issues that need to be raised if private investment is to be seriously considered as an alternative. Case studies, especially from Latin America (Argentina, Chile, Peru, Bolivia), illustrate different modes of private participation, and possible reasons for successes and failures are discussed. The article stresses that regardless of the modality of private sector involvement, on‐going government regulatory responsibility in the water sector is crucial. It suggests that regulatory policy must go beyond just setting tariffs, to develop standards for drinking water quality and waste treatment, as well as other standards. In conclusion, the article recognizes that numerous and increasingly difficult challenges face utilities in fulfilling their responsibility to deliver drinking water of adequate quality, in sufficient quantity, and at affordable prices, as well as safe and sustainable disposal of wastewaters for members of urban and rural communities.     

Governance of water supply systems in the Palestinian Territories: A data envelopment analysis approach to the management of water resources

This study demonstrates that data envelopment analysis (DEA) can be a useful tool to assess the relative efficiencies of water supply systems and to establish benchmarks with which to measure progress in the management of water resources. Frontier efficiency models measure the efficiency of water use in the Palestinian Territories (West Bank and the Gaza Strip). At the municipality level, sufficient data for the years 1999-2002 were available to estimate efficiency and stability scores. The Gaza Strip efficiency scores were considerably lower than those of the West Bank. Water losses were the major source of the inefficiency as indicated by the large slacks of this input. The relative sizes of the municipalities affect efficiency scores little. Palestinian policy makers should focus on rebuilding the infrastructure of the water networks, beginning with the most DEA inefficient municipalities in order to minimize water losses.     

Does performance evaluation help public managers? A Balanced Scorecard approach in urban waste services

The urban waste market has evolved significantly in the past decades, which among other changes, has led to the creation of new utilities and new business models. However, very few things have changed for the users. Urban waste collection remains mainly under the responsibility of local authorities and the charges paid by the users in most countries are very low compared to the provision costs. This situation forces the injection of public money into the system, encouraging the ‘quiet-life’ within the utilities and, therefore, inefficiency. The present study intends to analyze the potential for the application of the Balanced Scorecard (BSc) methodology into the waste utilities. After a comprehensive revision of the urban waste sector in Portugal, the methodology of BSc and its application in local public services is described and discussed. Focusing on implementation rather than on strategy, a set of performance indicators is proposed to be utilized in the different management models of waste utilities in Portugal: the municipalities, semi-autonomous utilities, municipal companies and mixed companies. This implementation is then exemplified through four case studies, one for each type of utility. This paper provides a flexible framework proposal to be applied to waste utilities operating both in Portugal and abroad.