demand management for financial control
TRANSCRIPT
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WATERSMART SOFTWARE 1
Jeff Lipton, Director of Marketing
Demand Management for Financial Control
Water Finance Conference - Denver, CO: August 31, 2016
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WATERSMART SOFTWARE 2
Agenda
• About WaterSmart
• Current challenges
• Demand management
• Data analytics
• Engaging customers
• Financial benefits
• A new framework
• The data-driven utility
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WATERSMART SOFTWARE 3
About WaterSmart®
WaterSmart offers a comprehensive
customer lifecycle management platform
that uses customer data and behavioral
science to manage water demand.
Our award winning software is designed,
developed and delivered in the United
States.
OUR PARTNERS INCLUDE
50+ Utilities
3M+ Water Meters
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WATERSMART SOFTWARE 4
A challenging landscape• Rising operating costs amid uncertain demand
• Deferred infrastructure investment
• Customer demands for modern information systems
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WATERSMART SOFTWARE 5
Impact: rising costsDriven by $4.8T* infrastructure backlog
and increasing cost to source and supply
Beecher IPU-MSU 2012
Postage
CPI
Electricity
Natural Gas
Postage
Telephone Services
WATER & SEWER
IND
EX
(1
98
3=
100)
*http://www.usmayors.org/publications/media/2013/04-water-localcosts.pdf
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WATERSMART SOFTWARE 6
Demand Supply
Water balance
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WATERSMART SOFTWARE 7
Demand management
• Less demand = increased (new) supply
• Reduce demand variability
• Improve revenue predictability
• Increase O&M efficiency
• Extend asset lifetimes
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WATERSMART SOFTWARE 8
Cost comparisonsDemand management is the least expensive source of water
supply
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WATERSMART SOFTWARE 9
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WATERSMART SOFTWARE 10
Putting it in action…
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WATERSMART SOFTWARE 11
Behavioral efficiency
ENGAGE
Customer Portal,
Outbound Comm.
ANALYZE
Utility Dashboard
MEASURE
Report results,
outcomes, and trends
UTILITY DATA
Meters, Rebates &
Incentives, Violations
EXTERNAL DATA
Surveys, Property,
Climate
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WATERSMART SOFTWARE 12
Start with data analysis…
• Segment customer usage
• Identify pressure districts for
priority rehabilitation
• Track progress toward
efficiency goals
• Compare ROI of
various programs
• Improve demand forecasting
• Build consensus through
information transparency
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WATERSMART SOFTWARE 13
then use household level data
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WATERSMART SOFTWARE 14
to communicate budgets, allocations, tiers & goals
Combine with
social norms
When budget exceeded
Target messages
Based on level of
compliance
Display on
Customer Portal
Self-service tracking
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WATERSMART SOFTWARE 15
to engage customers…
• Proactive communications accelerate demand control
• Consumers become more educated on the value of water
• Customer satisfaction soars
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WATERSMART SOFTWARE 16
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WATERSMART SOFTWARE 17
Benefits
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WATERSMART SOFTWARE 18
Operational benefits
• Avoided cost of water supply purchases
• Reduced energy charges for conveyance
• Lower cost for treatment chemicals
• Faster customer support call times
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WATERSMART SOFTWARE 19
Capital benefitsReduce and Defer CapexREDUCE OR DELAY CAPACITY BY REDUCING PEAK DEMAND
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WATERSMART SOFTWARE 20
Interest expense benefits
Deferred investment yields substantial savings
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WATERSMART SOFTWARE 21
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WATERSMART SOFTWARE 22
A new framework
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WATERSMART SOFTWARE 23
The data-driven utility
Who wins?
The utility
“My day has changed because I can engage
customers in conversations about water-use
efficiency in a sustainable way.”
City of Newport Beach
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WATERSMART SOFTWARE 24
The data-driven utility
Who wins?
The utility The consumer
“You notified me of a possible leak the
weekend of August 31…you were correct. I found it.
THANKS. Your system is TERRIFIC.”
Glendale Water and Power customer
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WATERSMART SOFTWARE 25
The data-driven utility
Who wins?
The utility The consumer The community
Lower pace of rate increases, reduced debt burden,
less environmental impact
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WATERSMART SOFTWARE 26
The data-driven utility
• Engage customers to make case for Smart Meters
• Deploy powerful analytics and presentment tools to
derive data insights
• Prioritize demand management for cost control
•Reduce pace of rate increases
• Deliver value to customer, utility, and community