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This presentation premiered at WaterSmart Innovations
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1 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
FEDERAL ENERGY MANAGEMENT PROGRAM
National Water Rate Escalation Elisabeth Giever Pacific Northwest National Lab [email protected]
October 6, 2011
Federal Energy Management Program
The mission of the Federal Energy Management Program is to facilitate the Federal Government’s implementation of sound, cost-effective energy management and investment practices to enhance the Nation’s energy security and environmental stewardship.
3 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Agenda
• Increased water rates
– Escalation rates
– Example
• Rate increases by region
• Rate increases by water source
• Rate increases by historical drought tendencies
4 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Study Cities
• Selection based on distance to Department of Energy
facilities
• Data from voluntary surveys to Ernst & Young, Raftelis
Financial Consultants, and American Water Works
Association
• Survey years: 1994, 2002, 2008
• Non-manufacturing and industrial rates analyzed
5 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Study Cities
6 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Escalation Rate
Time between
Years 1 and 2
Year 2 water cost
Year 1 water cost
Escalation Rate
Escalation Rate = e(ln(Y2/Y1)/n)-1
7 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Escalation Rate = 3.9%
14 years
$84.30
$49.50
Water Rate Escalation Example
8 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Rate Escalation Results
9 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Study Cities by Region Cities by Region
10 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Regional Trends
11 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Study Cities by Water Source
Purchased Surface Mixed Ground
Cities by Water Source
12 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Water Source Trends
13 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Impacts
• Palmer Drought Severity Index
• 1895-1995 long range historical drought conditions
• 1996-2010 short range historical drought conditions
• 3 month forecast drought conditions
14 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Palmer Drought Severity Index
• Established to compare meteorological moisture conditions of climate regions
• Positive Palmer numbers indicate excess moisture – flooding
• Negative Palmer number indicate lack of moisture – drought
15 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Current Drought Map
16 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Impacts 1895-1995
17 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Impacts 1996-2010
18 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Tendency Trends 1895-1995
75%
35%
58%
119%
32% 47%
62%
162%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0-5 5-10 10-15 15-20Per
cent
age
Incr
ease
from
199
3-20
07
Percentage of 1895-1995 Spent in Drought Conditions
non-manufacturing/commercial industrial
19 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
Drought Tendency Trends 1996-2010
50% 40%
52%
140%
57%
17%
88%
163%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0-5 5-10 10-15 15-20
Pere
ntag
e In
crea
se fr
om 1
993-
2007
Percentage of 1996-2010 Spent in Drought Conditions
non-manufacturing/commercial industrial
20 | FEDERAL ENERGY MANAGEMENT PROGRAM femp.energy.gov
National Water Rate Escalation
Questions?
Elisabeth Giever [email protected] 509-372-6179 www.pnnl.gov FEMP Water Efficiency Program http://www1.eere.energy.gov/femp/program/waterefficiency.html
mailto:[email protected]://www.pnnl.gov/http://www1.eere.energy.gov/femp/program/waterefficiency.htmlhttp://www1.eere.energy.gov/femp/program/waterefficiency.html
FEDERAL ENERGY MANAGEMENT PROGRAMSlide Number 2AgendaStudy CitiesStudy CitiesEscalation RateWater Rate Escalation ExampleRate Escalation ResultsStudy Cities by RegionRegional TrendsStudy Cities by Water SourceWater Source TrendsDrought ImpactsPalmer Drought Severity IndexCurrent Drought MapDrought Impacts 1895-1995Drought Impacts 1996-2010Drought Tendency Trends 1895-1995Drought Tendency Trends 1996-2010National Water Rate EscalationWSI Cover Sheet.pdfSlide Number 1