Performance Contracting for Advanced Metering Infrastructure Las - - PowerPoint PPT Presentation

Performance Contracting for Advanced Metering Infrastructure Las Cruces Utilities

Performance Contract with Johnson Controls Inc. (JCI) Presented at Two Nations One Water US-Mexico Border Water Summit 2019

What is a Performance Contract?

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• Performance Contracts are a procurement vehicle that allows
• Make improvements today and pay for those improvements over

time

• Payments made with savings or revenue generated from the

upgrades

• Named “performance contracting” because the results are

guaranteed.

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55,982 (69.23%) 19,252 (23.81%) 5,627 (6.96%)

Initial LCU Gas and Water Metering System

Investment Grade Audit (IGA)

• Perform field meter audit
• Sample of Residential meters and Commercial meters
• Identify water and wastewater revenue enhancements by implementation of

new meter technology

• Operating budget review
• Identify potential reductions in operating expenses with implementation of AMI
• Perform water audit to identify potential benefits of leak detection

system

• Quantify potential revenue enhancements from leak detection system
• Develop a financial model that identifies costs and benefits

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Investment Grade Audit Results

AWWA Water Audit Reporting Year - 2016

Category Acre-feet per year Water Supplied 20,061 Water Consumption 16,793 Water Losses (water supplied – authorized consumption) 3,268 Apparent Losses 1,167 Real Losses (water losses – apparent losses) 2,101 Project Opportunities Category Acre-feet/year Gallons/year Customer Metering Inaccuracies (Apparent Losses) 949 309,000,000 Automated Leak Detection System (Real Losses) 630 205,000,000

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Scope of Work

Meter Upgrades

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Meter Type Replace Meters & Upgrade to AMI Meters Replace Meters Only (Existing AMI Meters) Upgrade to AMI Meters Only Existing AMI Meters (to Remain) Totals Small & Intermediate Water Meters 28,963 2 8,468 37,433 Large Water Meters 16 64 113 193 Natural Gas Meters 27,003 16,232 43,235 Totals 28,979 66 27,003 24,813 80,861

Project Cost & Savings

Cost Annual Meter Accuracy Benefits Annual Leak Detection Savings Annual O&M Cost Avoidance Total Annual Project Benefits $22,124,000 $455,657 $105,270 $791,671 $1,352,598 Simple Payback - 16.4 Years

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Project Benefits

• Accelerate the completion of the AMI solution across the entire water and

natural gas systems (less than 2 years)

• Reduce apparent water losses (customer metering inaccuracies)
• Reduce real water losses (LCU distribution systems)
• Increase billable water and sewer revenues
• Reduce operation and maintenance expenditures
• Proactively maintain utility revenue streams
• Increase levels of customer service
• Reduce water leaks and breaks resulting in public health and safety

improvements

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Questions…?

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