PRINCIPAL INVESTIGATORS:
Thomas W. Chesnutt, Gary Fiske, Janice A. Beecher, and David M. Pekelney
OBJECTIVES:
The objectives of this project were to (1) develop a rigorous and universally-applicable set of definitions of benefit and cost components from different perspectives, (2) compile, in an easily-accessible form, the best available information on water use efficiency (WUE) program costs and savings, and (3) provide clear guidance to water utilities on program cost and benefit estimation.
BACKGROUND:
Improved water-use efficiency is seen as a viable complement to, and in some instances, a substitute for, investments in long-term water supplies and infrastructure. This understanding of water efficiency includes outdoor as well as indoor WUE, nonresidential water customers as well as residential customers, and utility delivery efficiency as well as end use efficiency. At the heart of the new understanding of water efficiency is an economic standard: a good WUE program produces a level of benefits that exceed the costs required to undertake the program.
HIGHLIGHTS:
• A Conceptual Framework for Integrating Water Efficiency is a means of organizing information about WUE programs (costs, savings, and benefits) in ways that make for more informed water resources decisions.
• WUE Planning Models--the first spreadsheet planning tool analyzes the direct costs that utilities can avoid via demand reduction, thereby defining the benefits produced by WUE programs. The second planning tool calculates water savings, costs, economic benefits, benefit-cost comparisons, and bill impacts for individual conservation programs.
• A Compendium of WUE Water Savings and Cost Estimates was compiled from an extensive literature review and assessment. Key uncertainties are highlighted.
APPROACH:
The project began with a telephone survey of the participating utilities to obtain a better understanding of current WUE planning practices and perceived needs for improvements. The survey, and a follow-up panel discussion, revealed that water utility planning practices vary widely. Three categories of strong need were identified:
• Conceptual--How are the benefits and costs of conservation programs defined? How do those benefits and costs differ when viewed from different perspectives? Why are those different perspectives important?
• Analytical--How should utilities empirically define the benefits that result from conservation programs? How should the benefit and cost information be properly compared to make the correct decisions? What analytical tools can facilitate these comparisons?
• Informational--From where is a water utility to obtain valid and reliable information to estimate the benefit and cost components?
RESULTS/FINDINGS:
The research provides a conceptual framework organizing information about WUE programs (costs, savings, and benefits) in ways that make for more informed water resources decisions. Chapters are provided for each of these concepts. In addition, two planning models developed and tested in the research process--a Water Utility Direct Avoided Cost Model and a Benefit-Cost WUE Planning Model--are provided on CD-ROM. A compendium of working assumptions for WUE savings and costs estimates was compiled as part of this research. A survey was undertaken to better understand current water utility conservation planning practices.
IMPACT:
Water use efficiency (WUE) programs are most valuable when they have been incorporated into ongoing utility planning for meeting future water demand. The conceptual framework, analytical planning tools, and informational results of this research project directly address the needs identified by water industry professions in the initial survey of this project. This research describes the logic of efficiency that applies to all these practices while focusing development of applied work on water use efficiency programs. The project provides practical tools to enable water utilities of different sizes and differing levels of sophistication to better integrate their supply-side and demand-side planning.
MULTIMEDIA:
A CD-ROM accompanies the research report, containing two adaptable spreadsheet-based WUE planning tools: avoided cost estimation (the benefit of WUE) and a Benefit-Cost Model for individual WUE programs.
RESEARCH PARTNERS:
PARTICIPANTS:
Eleven water utilities from the United States, Canada, and Australia participated in this project.
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