1. THE VALUE OF RESEARCH IN THE CHANGING UTILITY ENVIRONMENT Water Research Foundation Robert Renner, Executive Director 1© 2009 Water Research Foundation. ALL RIGHTS RESERVED. No part of this presentation may be copied, reproduced or otherwise utilized without permission.

2. Water Research Foundation New Name, Same Mission Advancing the science of water to improve the quality of life © 2009 Water Research Foundation. ALL RIGHTS RESERVED.2

3. Foundation’s Contribution to the Water Community n Practical applications to help utilities optimize operations and ensure customer satisfaction n Early alert and proactive solutions on future issues n Direct, immediate benefits to utility subscribers © 2009 Water Research Foundation. ALL RIGHTS RESERVED.3

4. Current Topics of High Interest n Climate change n Distribution system water quality & infrastructure n Endocrine disruptors and pharmaceuticals n Work force issues © 2009 Water Research Foundation. ALL RIGHTS RESERVED.4

5. Public Health n Drinking water treatment protects public health –Multiple barriers n Thousands died in the early 20 th century in developed countries n Millions still die n Water is life n You are the guardians of life © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

6. A Strategic Assessment of the Future of Water Utilities Top Ten Trends 1.Population 2. Political Environment 3. Financial Constraints 5. Customer Expectations 4. Total Water Management 6. Workforce Issues 8. Energy 7. Technology 9. Increasing Risk 10. Regulations © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

7. Population Growth n World population is growing explosively –About 1 billion in 1830 –6.6 billion today –9.2 billion by 2050 n Population movement –Urban and water short areas n Population demographics –People older than 60 will match less than 14 © 2009 Water Research Foundation. ALL RIGHTS RESERVED.7

8. Potential Climate Change Impacts © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

9. Hydrological Impacts of Climate Change Warming intensifies the hydrologic cycle Surface temperature increase Increased water holding capacity Increased atmospheric moisture Changing Increased Frequency Intensity Droughts & Floods © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

10. Climate Change Impacts on Water Utilities Quantity uncertainties Increasing unpredictability of precipitation More difficult to capture Increased evaporation from reservoirs Quality degradation Flooding - Increased erosion/turbidity Increased water temperatures Changes in watershed vegetation Salt-water intrusion Demand Increased due to higher temperatures © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

11. Technology Multiple drivers  Impaired/degraded sources  Increased demand  Regulations  Emerging contaminants Helsinki WTP Photo: WEDECO AG Water Technology © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

12. Technology n Nearly unchanged since 1900 n Considered new –Ozone –UV –Membranes n Cutting edge –Forward osmosis –Monitoring/smart chips –Nanotechnology © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

13. Energy n New technologies require significant energy increase n It takes water to produce energy and energy to produce water © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

14. Energy-Water Nexus n Thermoelectric power requires 136 billion gallons (515 million m 3 ) of water per day in the U.S. –39 % of freshwater withdrawals –3.3 billion gallons (12.5 million cubic meters) per day consumptive use n Coal accounts for 52% of U.S. energy generation –Each kWh from coal requires 3.3 gallons (12.5 l) of water n Consumers use more water turning on the lights than showering and drinking © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

15. Energy Water Nexus n Water/wastewater sector consumes about 3% of US energy n 10 % - 35 % of utility’s total operating costs is for energy n 50% increase in energy use for water in next 50 yrs © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

16. Finance: Utility Constraints  Cost drivers – Infrastructure – Technology – Regulation  Utility rate base can cover  Requires political will/leadership

17. Political Environment n US is complex n NGOs powerful –Surf rider association n Requires high degree of utility GM talent –Public involvement –Legislative skill –Labor relations © 2009 Water Research Foundation. ALL RIGHTS RESERVED.17

18. Paradigm Shift n Old paradigm –Treat water –Pollute water –Use energy n New paradigm - Sustainability –Treat water –Isolate wastes –Reduce energy © 2009 Water Research Foundation. ALL RIGHTS RESERVED.18

19. How Does Research Help? n Addresses problem issues n Saves money n Provides credible information on highly visible issues © 2009 Water Research Foundation. ALL RIGHTS RESERVED.19

20. March 9, 2008 Cleveland $1M Tidal Wave “We hope that the work we’re doing in project #4035 with the NRC will help us avoid this kind of thing in the future.” Alex Margevicius, Assistant Commissioner © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

21. Fracture Failure of Large Diameter Cast Iron Water Mains #4035 © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

22. Who do you want to do this work? © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

23. Risks and Benefits of Energy Management n Peak demand caps & peak shaving: $100K- $200K savings for Newport News RO system n Hydro-generation to sell back to grid: saves 30% of energy costs at Mohawk Valley Water Authority n Energy audit credit with retrofits to improve efficiency: 6-7% increase in efficiency at Des Moines Water Works © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

24. Applied Value Research at Las Vegas Valley Water District n Problem: Identify innovative ways to reduce energy use without compromising water quality n Implemented an Energy and Water Quality Management System (EWQMS) n Obtained $3.3 million in savings in 4 years © 2009 Water Research Foundation. ALL RIGHTS RESERVED.24

25. Applied Value Research at Las Vegas Valley Water District n Unexpected benefits: n Reduced THMs n Enhanced emergency response n Improved pressure complaint resolution n Streamlined operational troubleshooting © 2009 Water Research Foundation. ALL RIGHTS RESERVED.25

26. EDC’s - The Problem Defined… n What are they and why are there concerns? n Occurrence – which ones should be measured? n Treatment Process Effectiveness n Toxicological Relevance n How do you communicate about emerging contaminants? © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

27. Climate Change Clearinghouse Web site © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

28. Regulation-Oriented Research Benefits n Research provides credible data to standard setting process –Origin and level of contaminants –Level and type of exposure and health risk –Compliance technology performance n Promotes the development and application of new technologies –Contaminant removal or inactivation –Monitoring and analytic methods © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

29. Benefits of UV Research n The 2003 value of UV-related savings estimated at over $3 billion –Water Research Foundation UV research investment: ~ $10 million –Payoff of research: from 100:1 to 300:1 © 2009 Water Research Foundation. ALL RIGHTS RESERVED.

30. Summary: Utility world is changing, but research can help: n Save dollars—reduced or avoided cost n Solve problems n Arm with credible info on highly visible issues n Do the “right thing” for water community –Technical and business practice advances –Cultivating next generation of professionals –Improved public health, customer satisfaction © 2009 Water Research Foundation. ALL RIGHTS RESERVED.30

31. Remember: n Wonderful time to be a water professional –Billions of people on the planet –Only thousands providing safe water n Honorable profession n Remember your mission –Protect public health © 2009 Water Research Foundation. ALL RIGHTS RESERVED.31

32. Questions For more information on Water Research Foundation Visitwww.waterresearchfoundation.orgThanks! © 2009 Water Research Foundation. ALL RIGHTS RESERVED.