HomeMy WebLinkAboutF-1 Drought Enforcement Update Information Item
Pres F—i
ented ID Uc Ih
A.ZLISA
. CNI 6 k'4t El.
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: GEORGE F. MORROW, DIRECTOR OF UTILITIES _fn,
DATE: OCTOBER 26, 2015
SUBJECT: DROUGHT ENFORCEMENT UPDATE
As you know, on April 1, 2015 Governor Brown issued an executive order to address
California's severe drought conditions. On May 5, 2015, the State Water Resources Control
Board (State Water Board) adopted an emergency regulation to address specific provisions of the
April 1 Executive Order, including how the mandatory 25 percent statewide reduction in potable
urban water would be accomplished, between June 2015 and February 2016.
Through the State Water Board's process, Azusa Light & Water was given a mandatory 20
percent water reduction target. In reviewing recent monthly water consumption data, Azusa
Light & Water customers have reduced water consumption by 28% during the June—September
2015 period compared to the same period during 2013, the required base year for comparison.
This is a significant accomplishment considering that Azusa Light & Water initiated a phase II
drought declaration program in June 1, 2013, and a number of customers were continuing to
conserve water from the 2007-2010 drought.
The table below shows the monthly reductions in consumption:
Sales in CCF
Year June July August September
2013 756,937 811,019 813,455 826,100
2014 703,965 789,430 720,913 730,418
2015 504,494 614,859 604,342 583,175
%Change
From 2013 -33.4% -24.2% -25.7% -29.4%
These water use reductions represent a significant step up in conservation during 2015. As you
may recall, a phase III drought was declared by Azusa Light & Water effective May 1, 2014,
which triggered two day per week watering limitation and a three tier rate schedule. During FY
2014-15, this, combined with other activities, reduced consumption by 12% over a 12 month
period. However, we did not see a significant jump in conservation until June 2015 which
UB-57
Drought Enforcement Update
October 26, 2015
Page 2
followed stepped up marketing and enforcement efforts to comply with the State's mandate.
Enforcement activities include the following:
• Onsite education about water use restrictions and handout of promotional items such as
positive shutoff nozzles and shower buckets along with flyers or door hangers
• Issuance of Warning Letters/door hangers and notation in billing system of customer
receiving warning
• Issuance of Citation Letters with fine charged to customer's account for 1st, 2nd and 3+
violations
To ensure that Drought Patrol was not focused on specific geographic areas, staff requested the
City's IT department to plot the warnings and citations on a map of the Azusa Light & Water
Service area. Attached are three maps, one for calendar year 2013 showing distribution of 800
violations; one for calendar year 2014 showing distribution of 2,555 violations; and one for 2015
showing distribution of 2,395 violations as of August 2015. As you can see from the attached
maps, the distribution of enforcement activities has been fairly well disbursed throughout our
service territory, which includes areas in the cities of Azusa, Covina, West Covina, Irwindale and
Glendora.
Azusa Light & Water issued mostly non-fine "warnings" for violations plotted on attached maps.
For instance, during FY 2014-15, 82% of the violations issued were in the form of a warning
letter/door hanger. This resulted in about 260 warnings being issued on monthly basis during FY
2014-15, and about 46 citations being issued on a monthly basis. (See attached sample form
letters.) In June 2015, when watering days/times changed, more lenience was granted to
customers to adjust to the new watering times, and from June through September 2015 we
averaged about 169 warnings and about 15 citations per month. These reduced numbers also
reflect greater compliance with our water use restrictions and the results of prior enforcement
efforts.
In addition to above activities, the Drought Penalty/Charge went into effect in FY 2015-16, and
now appears on utility bills. Because our tiered rates are so low, we programmed this item to
display on a single line of the utility bill in a lump sum amount. Billing of the charge started in
September, and this has led to numerous informational conversations between Customers and
Customer Service staff about the drought. These conversations are opportunities to talk about
indoor water usage with some customers, and so the drought penalty/charge is expected to
contribute to lower levels of consumption in the months ahead.
Prepared by: Cary Kalscheuer, Assistant Director—Customer Care & Solutions
Exhibits:
A. 2013 Drought Violations Map
B. 2014 Drought Violations Map
C. 2015 Drought Violations Map
D. Drought Warning Letter
E. Drought Citation Letter
UB-58
Drought Enforcement Update
October 26, 2015
Page 3
Exhibit A
iii-
....N.- l,�r 4- d ir`
,1,./t 'I \
1 `
_
e 6
G • �•� ant co
• • O.i6 p6
0
• ed i
c
G (�
1 -, ,..,"1e • 6 O O
O41,
e 010 0
a' g 0. 66666
O 8 O 0..•�y•,ar ®O'C^may-/..
6 $a4� $a (6 �4 •
s.. 11 Cobey c�68 e-g 6 C O 6 0 6 • ,
e
6 �• 6
• C
11I {� f •
1 O O G A6•
c o
t 4 Q
I,' O 8 ®re • v i7 ®C'
• 3C 6 06 O it 6 •. (`
Chi , G 00 �® i
C 60 0 fit eat& 0°. 0.. /
C s
, S6
II c
&e61 �� -a • } _
e en*c au
`" Legend j
e
66�'° • 2013 0300)
ire e • g 0 • c ii
tkf. 6 C8
.a.. J' c
\` _.- 6440_2,v
' oI.tha :».ung roffma�nw rt y ( _Iyc.
M..i,
Kzi1 `- -!. •. 4 ""tio-r...1.6.I.".6. trip pl . i
,-.wte 'AO*f ..P"6111.w663 ss+baa.wMOCtr
1
ln:h-3.OBSteec
,nw
111 Azusa Light & Water
PM c6646 wr.ra ren
ar ar*roto a*a
UB-59
Drought Enforcement Update
October 26, 2015
Page 4
Exhibit B
J.... .. +°
.\f"1_ ti \ _
.f`,
a
r,
•
0
• :�
S'c: :.3
4t, .4.:
4
+Ca
=2s",
-•s
yOtt t}
- - f --.. i
.0
ti,.
r' 'i .. ' { yr^
y r
Cr3 r.:t �
_ ..1.04.;. r
c
xi , - , ; Legend
r .t_.r-t ...
,?- ' 2014(2555) 1
(I "" "rts. r : � w
=,_,....., .b;.e + �t*f.., ,,a0001k pc 4[^rirl+Cv(M.AwM0y,+"aD/tn GrpluG.i�Gr+wn
0000
1 inch-3,G65 tee ,..7",.4.
1 Azusa Light & Water
.....4.-............, Chu W..Wi,.r./2 IMI
UB-60
• Drought Enforcement Update
October 26, 2015
Page 5
Exhibit C
- 41---\
( f \
..........
. J.,
,.......... ,.. • I
is
1/t '- \
' / ••
'
A
• •
% 6:
1/5 •4•0 % • •
, 41.41P • •6 31,14)
es ••
•
-IF 41r iltble 44
1P4:11,1"-it •e _ ........
•
• - --Iiititi
40.
S
e.• ••
".;-,- • • • •
--.„, •Si••
•,,,, •41 • , •
• •, • et • ,
• • oki
•
-,----•--"" '..,... •I
4 •
• alk--4AFt ill! 4111'•.11: • •111P", • •
•
•• ql• \4• • • A.: i 6.1114....•••••
•)44° 0‘..i PP
••
•
.illtft ;.....11. 7 -,-....•‘ --.*•'Niro•
I • ...........„,f
11;11114,:a ,1 4 4 6, ,,,, e,
11 ak, lit .741.
I • .• tip• forliks, 4, rg---4
1 • id1/44, lin •'":111 • ,
• • •• .
ir; I
f,
• Ur., ID 1
3 ••
: , ill
i I • .4b( 1. • •s •
•Ici:
•
as •
• . lis• 0 ;
..._ .
---41 1 46.- % • 11 et • - .
• • • •
• • •
4i . 6.18 ,m14. as4t,I
' 4.• lit ••• •
«Pao
des 4• • 4".*.11'
• A, ••••;
• v.....
---. •&amt.," : n•q• I • t_rg •_ •$.1111 i
••t---- i
, ig ...w.„.-•;It ,
,
• s •. :, ,
t, .. •
i • I IP • •
- , ft & _1,1 °ALA mik • , ,,I II 1 i
_
1 I
to, • SitIl 1
li
AI • V : Legend
• ,
N
.• ...Ili • : ik• 41%, 11:111 ill
• esi li , • 2016 12396)
.2,•11: 1
41 *tro , 1 i
ob. :...,
4, 4.„.•• an 4 tolonm. ••••••••elle....K me...ern I.
..,: 4--
....... ....... Am...- - a. •....,-,4:, _ 7, ,,,, Q.......%.......'0.,
.,....,,a
aloft li••••••••,likii:Aeses:ftAkior ire.IDies-UseMIC.4,21...Edw.,**-........*
,.
1 11101.1056 feet
Tr.*
II Azusa Light & Water ......•.
\ 1
............
.3 LU
UB-61
Drought Enforcement Update
October 26, 2015
Page 6 Exhibit D
WARNING
DROUGHT VIOLATION
DATE
NAME
ADDRESS
ADDRESS
Subject: Water Patrol Warning /Account No. XXX-XXXX.XXX
Azusa Light&Water Customer:
A Phase III drought is in effect for the Azusa Light & Water service territory due to emergency
water supply conditions. This "No-Fine" Warning provides information about the mandatory
water use restrictions in effect, or Rule No. 21 of Azusa Light & Water's Rules and Regulations
in light of a noted violation at above property address.
The following violation(s) occurred at the above referenced property address:
❑ Excessive Runoff
❑ Watering during wrong time of day. TIME:
I: Watering on wrong day of week. DAY:
O Using a hose without a positive shut off nozzle
O Washing down driveway or other hardscape
❑ A leak. This warning serves as Notice* to make repairs within 48 hours or by:
*Notice was provided by:
❑ Watering while raining or within 48 hours of measurable rain event
The time and date of checked violation(s) are imprinted on the photos attached.
NOTE THAT
• Excessive runoff suggests that: (a) irrigation timers are keeping the water running too
long; (b) water is not absorbed into the turf or soil; (c) sprinklers are not adjusted
properly; or (d) sprinklers are not sized right and over-spray the landscaped area. In
these cases, water is wasted or not used for the intended purpose.
✓ Using water outside of those days or times allowed by current rules may indicate you are
overusing water or not conserving water as required by current rules. We need to
enforce our water use restrictions consistently amongst all customers, to limit water use
and conserve water.
See Next Page for Corrective Actions and Other Requirements
UB-62
Drought Enforcement Update
October 26,2015
Page 7
You are urged to take corrective action to comply wil:h our water use restrictions as further
violations will result in fines.
WHAT TO DO
1. If you are being warned about a leak that is causing runoff you must make repairs
within 48 hours or your property is subject to citation.
2. Avoid any runoff into the gutter and beyond your property line.
3. Only water outdoor landscaped areas on your designated watering days and do
not water between 9 a.m. and 6 p.m.:
2-Days Per Week Watering from April 1st through October 31st
0 Residential Odd Numbered Addresses are restricted to watering on Wednesdays and
Saturdays at any time EXCEPT from 9 a.m. to 6 p.m.
1-Day Per Week Watering from November 1st through March 31st
0 Residential Odd Numbered Addresses are restricted to watering on Saturdays ONLY
at any time EXCEPT from 9 a.m. to 6 p.m.
2-Days Per Week Watering from April 1st through October 31st
❑ Residential Even Numbered Addresses are restricted to watering on Thur= and
Sundays at any time EXCEPT from 9 a.m. to 6 p.m.
1-Day Per Week Watering from November 1st through March 31st
0 Residential Even Numbered Addresses are restricted to watering on Sundays ONLY
at any time EXCEPT from 9 a.m. to 6 p.m.
2-Days Per Week Watering from April 1st through October 31st
❑ Commercial and Large Multifamily Complexes, including HOAs are restricted to
watering on Mondays and Fridays at any time EXCEPT from 9 a.m. to 6 p.m.
1-Day Per Weekst
Watering from November 1 through March 31 s
❑ Commercial and Large Multifamily Complexes, including HOAs are restricted to
watering on Mondays ONLY at any time EXCEPT from 9 a.m. to 6 p.m.
UB-63
Drought Enforcement Update
October 26, 2015
Page 8
4. Special Notes to All Customers— Effective June 1, 2015:
• Residential and Commercial Customers may use drip irrigation systems, buckets,
watering cans, rain barrels, recycled water, reclaimed water, gray wastewater, on any day of
the week at any time EXCEPT no watering from 9:00 a.m. to 6:00 p.m.
• No watering during rain event or within 48 hours after rain with measurable rainfall.
5. Washing of vehicles must be done with a bucket or hose with a positive shutoff
nozzle. No runoff into the street is allowed.
6. Fines for Residential customers range from $50 to $200 per violation, and fines for
commercial customers range from $100 to $600 per violation.
7. If you have any questions regarding your watering days, times or how to prevent
runoff from sprinkler systems, please call our office at 626-812-5225. To report a
water use violation, call 626-812-5119.
Sincerely,
Drought Patrol
Azusa Light and Water
Attachments:
Drought Declaration and Photos of violation(s)
cc: Assistant Director—Customer Care&Solutions
Drought Patrol
UB-64
• Drought Enforcement Update
October 26,2015
Page 9 Exhibit E
DROUGHT VIIOLATION
& CITATION
DATE
NAME
ADDRESS
ADDRESS
Subject: Water Patrol Citation /Account No. xxx-xxxx.xxx
Azusa Light&Water Customer:
A Phase III drought is in effect for the Azusa Light & Water service territory due to emergency
water supply conditions. Notices were previously provided to you about mandatory water use
restrictions or Rule No. 21 of Azusa Light &Water's Rules and Regulations.
The following violation(s) occurred at the above referenced property address:
❑ Excessive Runoff
❑ Watering during wrong time of day. TIME:
❑ Watering on wrong day of week. DAY:
0 Using a hose without a positive shut off nozzle
❑ Washing down driveway or other hardscape
❑ A leak not repaired within 48 hours. Notice was provided at on
0 By Phone
❑ In Person
0 By Letter
❑ Watering while raining or within 48 hours of measurable rain event
The time and date of checked violation(s) are imprinted on the photos attached.
NOTE THAT
❑ Excessive runoff suggests: (a) that irrigation timers are keeping the water running too
long; (b) that water is not absorbed into the turf or soil; (c) sprinklers are not adjusted
properly; or (d) that sprinklers are not sized right and over-spray the landscaped area. In
these cases, water is wasted or not used for the intended purpose.
✓ Using water outside of those days or times allowed by current rules may indicate you are
overusing water or not conserving water as required by current rules. We need to
enforce our water use restrictions consistently amongst all customers, to limit water use
and conserve water.
As a result of this violation, a fine of$xx.xx will be billed on your next water bill. You are
urged to take corrective action to comply with our water use restrictions as further violations will
result in higher fines.
UB-65
Drought Enforcement Update
October 26,2015
Page 10
According to your street address, your watering days and times are as follows:
2-Days Per Week Watering from April 1st through October 31st
❑ Residential Odd Numbered Addresses are restricted to watering on Wednesdays and
Saturdays at any time EXCEPT no watering between 9 a.m. to 6 p.m.
❑ Residential Even Numbered Addresses are restricted to watering on Thursdays and
Sundays at any time EXCEPT no watering between 9 a.m. to 6 p.m.
1-Day Per Week Watering from November 1st through March 31st
❑ Residential Odd Numbered Addresses are restricted to watering on Saturdays only at
any time EXCEPT no watering between 9 a.m. and 6 p.m.
O Residential Even Numbered Addresses are restricted to watering on Thursdays only
at any time EXCEPT no watering between 9 a.m. to 6 p.m.
2-Day Per Week Watering from April 1st through October 31st
❑ Commercial and Large Multifamily Complexes, including HOAs are restricted to
watering on Mondays and Fridays at any time EXCEPT from 9 a.m. to 6 p.m.
1-Day Per Week Watering from November 1st through March 31st
❑ Commercial and Large Multifamily Complexes, including HOAs are restricted to
watering on Mondays ONLY at any time EXCEPT from 9 a.m. to 6 p.m.
Special Notes to All Customers— Effective June 1, 2015:
• Residential and Commercial Customers may use drip irrigation systems, buckets,
watering cans, rain barrels, recycled water, reclaimed water, gray wastewater, on any
day of the week at any time EXCEPT no watering from 9:00 a.m. to 6:00 p.m.
• No watering during rain event or within 48 hours after rain with measurable rainfall.
Southern California is experiencing one of the worst droughts in its history. To ensure that
water is available for essential purposes, it is imperative that all customers reduce water
consumption. Please follow the water use restrictions provided to you by our Water Patrol, and
enclosed, to ensure that we can all have an adequate supply to meet our needs.
Should you have any questions regarding this matter, please call our office at (626) 812-5225.
Office hours are Monday through Thursday, from 7:00 a.m. to 5:30 p.m.
Sincerely,
Azusa Light and Water Customer Service
Enclosure:Phase Ill Water Shortage Declaration
Enclosure:Drought Citation Appeals Process
cc: Water Patrol
UB-66
Once the value proposition is identified,project financing Where the business and investment community takes the
comes into play.It is important to note that there is no lead on smart city planning, successful cases show the
"one size fits all"plan to address funding needs.One private entity in a funding role. Some employ the"if you
solution is financing through public private partnerships build it they will come"strategy of developing hardware
(Figure 21). and deploying fiber networks and showing stakeholders
how they can benefit from new services and technologies.
Kansas City has collaborated with technology company
Cisco which will deliver several phases of smart city Organizations such as Cleantech San Diego,the Smart
programs.Another option is via grant-based pilots.The Cities Council and the Top 100 Resilient Cities count
University of Chicago and Argonne National Laboratory members from all stakeholder groups reflecting a best
are currently partnering to collect data from sensors practice approach to ensure that the needs of their
placed throughout the city.The City of Chicago has stakeholders are met.These organizations facilitate
also defrayed costs for other initiatives by relying on collaboration across a public, private and academic
open source software to build out its data platform. membership to encourage Investment in smart city
Other cities have created plans using a mix of bond infrastructure and related sustainability initiatives.
measures and government subsidies.Energy savings Black&Veatch partners with several organizations in order
from initial undertakings,such as light emitting diode to advance the partnership dialogue.
(LED)streetlight retrofits,can serve as budget to finance
subsequent phases of smart city development.
New York City might be one of the most visible examples
of a smart city vision being customized to meet the needs
of its business stakeholders.Among flagship projects
that showcase this approach to planning is an initiative It
that integrates data from local government programs, There is no one
businesses and consumers to provide information through size fits all"plan
publicly accessible screens and on multiple devices {
including city kiosks.Applications include real-time to address funding
information about public and commercial services.ROI for
business includes monetization via advertising revenue needs
derived from digital signage.For the municipality,gains
in awareness from a public safety perspective along with
quality of life benefits for city residents appear to be
markers of success.Elsewhere,business and cities alike
are closely watching Hong Kong's Wise City scheme,eager
to benefit from lessons learned from an early adopter.
50 I 2015 Strategic Directions:Smart Utility Report UB-123
Figure 21
What would be the most effective financing model for smart city initiatives?
69.1% r
�� � k � � � ,�� � Public/private partnerships
42.8% Tax incentives,
33.0% Government subsidies
11.6% Property taxes
61% Only municipal funds
53% �; Only private funds
10.9% I don't know
Source:Black&Veatch
BtaCkUB-124
•
PERSPECTIVE:
POLICY
Smart Collaboration
By Clint Robinson
Smart city collaborations will be shaped and/or stymied by the formal
and informal rules that govern multi-stakeholder partnerships. In the
absence of a common vision for smart infrastructure, municipal and
federal regulations can be at odds with proposed investment strategies.
These mandates,when coupled with informal pressures such as
etectability and shareholder demands,can make it challenging for
utilities, municipalities and private industry to realize their common
goals. It is no wonder then that survey respondents ranked policy as
the third biggest hurdle to overcome en route to managing systems in a
more integrated way(Figure 22).
Figure 22
What are the top three hurdles that must be overcome to enable utility,city/community or campus systems to be
managed in a smarter,more integrated way?
64,0% Budget constraints
36.9% Lack of resources or expertise
31.0% Policy hurdle
25.6% Gaining stakeholder support
18,3% Ownership across departments
18.1% Short-term mindset
17,9% .—. Security concerns
17.7% Time constraints/other priorities
14.9% Lack of incentives
13.4% Process hurdles
Source:Black&Veatch
Black UB-1126
Frequently discussed are the privacy and data security challenges posed by the data that is collected,stored and
analyzed for use in smart city initiatives(Figure 23).These technology projects in particular often fall under a variety
of state and federal regulations.From a privacy perspective,regulations may define protected or sensitive data
using disparate criteria.In terms of data security,high-profile breaches and infrastructure initiatives have prompted
two executive orders in the last 20 months,At the state level,17 states have adopted or have advanced metering
infrastructure(AMI)requirements pending(Environmental Impact Assessment,2011).Other states have made significant
progress in codifying privacy restrictions.
California,for example,currently restricts electric corporations from"sharing,disclosing,or otherwise making
accessible to any third-party a customer's electrical consumption meter data without the consent of the customer."
What this means for collaborators is that any smart city road map must reference and include strategies for meeting and
addressing complex regulatory requirements.Another tactic might be proposing and enacting legislation that takes new
technologies and the data economy into account.
For utilities,rate recovery also presents a policy hurdle.Public,regulated utilities have to apply for permission to invest
recovered capital outlay via the ratepayer.While municipalities have more freedom to adjust rates because they are run
by elected officials,that flexibility is hampered because their positions are determined by the ratepayer(i.e.,the voter)
which often has the effect of making them fess likely to raise rates because of electoral issues.
Figure 23
What is your organization's biggest security concern regarding management and use of data?
38,2xUnauthorized system access
18,6% Data integrity
13 Regulatory compliance
9.6% IIII Maintaining customer privacy
8.4% Data loss
2.0% Data security is not a big concern
Source:Black&Veatch
54 i 2015 Strategic Directions:Smart Utility Report UB-12'7
EI tit arl;t
rJJn..EEL! Jt it
H, �,tl„r I>�-t,�rS aEil l t, , I --Ettr r
tor
One anecdote that illustrates some of the challenges _!!/.f:Ir.GOVvr.t,_i cSHIP. -rntErac+no tn1e
utilities and municipalities face involves a five-year- en.el;t
long pilot project,initiated by a utility whose aim was ,,,�a,-Et,n ipr .nt r-nil p
to establish the first smart city.Several different r, III , Cf 031 ITC) r c= r n if',ic, W-10 ;r,
technologies were installed with the goal of improved n t ,;t s t r a
•
service delivery.However,the pilot's Implementation I;u; ;I„ • t I :, eL I E t t a-eta rn
resulted in cost overruns,which were then passed ulat ,; ,nt P.,r t rrn. ._rlRrt
on to ratepayers. I ,rete trot ti
I i lora nil'at o ri any
This particular case is a cautionary example of
how the energy portion of a smart city plan ;C:TTI,!� S ". ' 'u r r e .n t
will need to have expectations and funding t� rl ;, tl,,r. r,r c,enrt i Er_EEIE, r,1 ,r
clearly set;especially if an Investor-owned r,nfrai t n� anu Ln; _ t�ni,cls c,,cte r�: ti
utility 00U)is involved.In summary,the 5rna-t , t; t F:,, ut.I t t r, :, n u Erct
participating municipality believed that the �� •;,,.-
utility overpromised and under delivered
on its smart city pilot at the ratepayers'
expense and,as a result,disallowed the
1 . ri ; . ie. larmor; Itr
utility's cost of the project during two 1 ,-.1, '. 1.L.� IEriI
ratemaking cycles.Further,the city ar C,�� cir ,,_:n,t'rE, , I hottcu
voted to form its own municipal utility -rin tt,r r-;i�= -Emt
thereby terminating the other's o��n. r t , ., r a ;::tr I ,r
franchise.The ensuing legal battle
is expected to last for years.
celab �tl_ii nc t l c r t_�,.1_ r �_i nC,- I 7_lr 711
; rt•
,PU1 Tc, pr.111 hr 'f-i,1_r�,
Thus,a conversation that
began with disparate entities
sharing the goal of increasing t'I I L., t:, l,e , a„ u t!.,
operational efficiencies un ,�rrtan it ;:loot o ;11 t,nk.ane rr.� p .t� , ,�a��„ ,na, c�>>r�>
becomes an exercise In O t n�:1,-it r Ir-;Ill t ) ; of ;,r�-1.4-1 ,�rl O o.ac
figuring out which methods
of data sharing can be I.Jr: etc .l
done legally and with
sensitivity to stakeholder
t ccE tr at cit r�,a,E-.i utut
concerns.It is an Issue
if �1 r1EEI E [Ern,.:krEt_tin rItr, Of PI,
that many cities face.
int t" -r ,. E"ir J CInid Uf,Lr ;` ra
til.r1 or , r laru ,'i� �t nu1i, 0 ,l,Pti,, -lr.E n',--r tpt..r r.`..
in sty, n:non it )011 fo, 000...
PERSPECTIVE:
GLOBAL
India's 100 Smart Cities
By G."Satya"Sathiamoorthy
56 I 2015 Strategic Directions: Smart Utility Report
India's new government is wise to the potential of digital communications.
Prime Minister Narendra Modi sees it as a way to improve public access to
government services. The need for visits to municipal offices will be cut as
services, which Indians will access with slnartphones, are made available
online. To make its Digital India aspiration work, the government wants to
put a smartphone in the hand of every citizen by 2019.
Enuatl r ; ,_at h�ra I_,t �e oh`mart c:t Pa Oak The
Irclar nwerrm t -31,1,its‘-,n1.-it clt;r to nOe p=opte a jd inl.l ui- , 00 _,rn .rt .. ..�.f cf
uuud n,ar iy of I to aria roc ori rnp',:r-/rn rt,and to attract tr t rcr o a _:::r u a tr ob;of
rrvastrri;, _ tau cit _S trot .un;p_t,t .0 r the be�r:ni;
centres
int o r d bus r o-saro ,I poo,_r',u t Lacer for
(_,enp'a tc >-ttr pnsur ng teat .road ci acs are c Si
er:iir,r n:nta..,or s �a tai^abl a centrai to I e
r iectiru vitas that meet t J_,.ernrnert acp;rat ors
er! ntrip a -a cc I :sp,ecif urb n rpr,rg anG
u„ rnnot onS,.
mkt r a-rern t. the r.earr of cr,_rr.art os;rerrcr.
smart r tegrat� �r;fractr,�turra Cit:toe n aoraton
ts'acitpare_to Hpi. ai ycor!, o :nrert arta of pr, , r:'atei and
o Inti Ti a,the•countryf ,,_im a n_r.a!,actricur c ra
t aeon e or_ rn, to so urban, 11q,1,,.` one
I prc,r rnatel: - C,0 nu �oct a e�r tiaa urnt_ers
stn/cf Urban Dratt Cr r , at
amu'.,+ z aitr p,
c ntribut it t , r i �,ng rriar . ,f mese:At* Lute, rcl;ci:ay:
V/AT E
• ,n ',a '.ahi:it''rf 24
• lOO percent 1-21`0 lin,1 it tr' sa tabor s', tern.
•iaooht nee rrruthnd f:.,[ Irss d i creno; -_uraurr�pt ur i pater r _t,::rri_,.
• -4-pr--,arn.Tnis Inn lu,.es ft .cr:,rn and rn nta nirnl
the natural lr;dre,lc ica' cycle.
• pt-icer�t rnetei ung o:,' l he esscrtia=-..
• Ur.i.,-r.;al .lectf`r-t,,,2,1,
• Smart tr,e ,;seri f . _,,,,rt �rld
and its integrate .r :1.tn renes, rr�cr r c �u n ,sc 'r,t rii=-t iien r n
■P .) Int ,r,,.=t I lone r _ eu
,.In MO i>r tr. nr c' r ui I;y�c 'i ph: r t<�a,ci -dh�d d r ra in:,.
of tc_ 'phone I enehat °.pili ra smart clay.
• Fhre spt c r_c i r _cti:�t in ear home dr i ' Fi Ir al.
public ptaces-
In addition to the attributes above,SII has a major role
to play in the smart cities'overarching environmental
sustainability goats by helping reduce consumption of
water and energy,and facilitating use of renewable energy.
In addition to reducing pressure on resources,greater use
of renewables and reduced consumption of power and
water will also cut the cities'greenhouse gas emissions.
The many definitions for smart city differ.It is worth noting,
however,that attributes like those sought by the Indian
government concerning water,power,telecommunications
and sustainability are common to most of them.
58 I 2015 Strategic Directions:Smart Utility Report Ulf-131
India's 100 smart cities are unlikely to be purpose-built management,distributed generation and microgrids.
on greenfield sites.Rather,there will be a modernisation The task force's work wilt inform the 100 smart cities'
of mid-sized cities and satellite towns of Larger cities. development.
Many regional governments have short-listed cities for the
initiative,but no locations have been confirmed.
Addressing limited spectrum availability is a prerequisite
to the development of 511,and by extension,India's smart
The 2014 Union Budget allocated Rs 7,060(US$)core cities.MoUD.'s Draft Concept Note acknowledges that
for building the smart cities.A significant amount of the extensive use of smart devices requires a"sound
additional funding is required;this is expected to come communications backbone:'
from public-private partnerships.Although no formal
deadline has been set for completion,100 smart cities
in 10 years is seen as practical in some quarters.Many in
India's telecommunications providers,most recently
Bharti Airtel and Vodafone India,have made presentations
government and industry,however,think this is a much
longer-term project and that it could be between 15 to to i he government about the allocation of spectrum.
Chris Houghton,Head of India Region,Ericsson,also
20 years.
raised the point in The Hindu Business Line"...you
invest in a lot of things like smart cities.However,the
Solar power will have a significant role in providing the infrastructure needs to be taken care of.Challenges such
smart cities with a 24x7,environmentally sustainable as spectrum allocations are there."This area has to be
power supply.The Ministry of New and Renewable Energy managed to allow the smart cities to come to fruition.SII
aims to have 20,000 megawatts(MW)of solar generation also requires the storage and easy access of significant
by 2022.Distributed rooftop generation has a major amounts of data.Cloud computing is likely to have a role
part to play.A€1 billion(USS)soft loan with German In meeting this element of the smart cities'S11 needs.
development bank KfW is being sought exclusively for To manage the huge volumes of data generated by AMI,
rooftop solar plants.Half a dozen state governments have cloud services offer a level of flexibility and efficiency
already introduced net metering for renewable energy to previously unavailable through hardwired connections.
allow the generation of power on individual properties. It has been suggested that a potential successor to the
Jawaharlal Nehru National Urban Renewal Mission could
be a centrally funded cloud-based suite of smart city
Distributed generation,such as rooftop solar,can have a
applications.
profound impact on daily demand curves.511,in the form
of distribution automation,can provide an excellent way to
integrate power from renewable and traditional sources, Smart cities'attributes,like the technology that makes
by scheduling each energy source to optimize value. them possible,are continuously evolving.At less than a
year old,India's 100 smart cities programme Is very much
in its infancy and,like the concept of a smart city Itself,Is
Current work to help the introduction of SII includes 14 likely to change.The need for SII is fundamental to India's
pilot projects being undertaken by India's Smart Grid Task vision for the smart city now and in the future.
Force.The pilot projects involve deployment of advanced
metering infrastructure(AMI),peak load management
systems,outage management systems,power quality
BlackUB-132
CLOSINGThe past several years have seen an unprecedented level of technology
deployments across public and private electric,water, natural gas and
COMMENTARY
telecommunications networks. From internal network functions to
insight on how customer behavior is shaping the consumption of power,
water and broadband, leaders are harnessing technology to manage
Smart Utilities,
complex challenges.
Smarter Cities
By Marty Travers
and John Chevrette Though benchmark rates for capital in the United States are tow,many utility service
providers and municipalities find capital resources scarcer and economic pressures
greater than at any time in decades.This reality is complicated by tighter regulation that
is causing water and energy providers to embark on or consider billions of dollars in new
capital outlays.Further,expectations from customers for more and faster response from
their service providers are rising as an exodus of experienced workers and shortage of in-
house IT skill strain resources.
As discussed throughout the 2015 Strategic Directions:Smart Utility report,the increasing
use of technology offers utility operators greater understanding of their networks,
other utilities and the communities they serve. Investments in cloud services,AMI and
advanced data analytics solutions are shifting how utilities use data to more effectively
plan for the future rather than provide a record of the past.Critically,the Implementation
of predictive analytics used for Adaptive Planning solutions presents one example of how
utilities are embarking on the transition to a smart utility.
IMPROVING PERFORMANCE AND REDUCING RISK
Adaptive Planning is a dynamic approach that uses advanced analytics to address
interdependencies between asset management,capital investments,market dynamics
and operations;outputs from each planning area can be used as inputs into the others.
Leveraging cloud-based computational capabilities,Adaptive Planning solutions use
data to create,compare and optimize complex planning decisions,including the visual
identification of investment priorities using a risk-based approach.A more informed utility
is a smarter utility.
Recognizing the potential benefits to customer billing and operational efficiency,most
utilities have embraced some level of technology and deployed two-way sensors and
supervisory control and data acquisition(SCADA)systems.Yet,as the report shows,
in many instances the data collected is limited,or the ability to manage the wave of
Information generated by the system has not kept pace.
60 I 2015 Strategic Directions:Smart Utility Report UL-133
Similarly,due to technological limitations,most utilities In the case of Hawaii,Hawaiian Electric,the state's
have approached distinct operational or planning issues largest electric service provider is faced with the most
separately.For decades,the development of system aggressive moves to adopt renewable energy by any
intelligence required teams of engineers and process electric utility worldwide.The influx of unprecedented
experts to review reams of data to develop a snapshot of a amounts of rooftop solar has created issues ranging from
given historical period.This required significant personnel grid instability to a shifting revenue base.To meet these
resources to create a report that was limited(at best)In its challenges.Hawaiian Electric is using Adaptive Planning
tangible forward-looking planning value.This snapshot,in analytics to help make more informed decisions about
turn,was used to inform long-term organizational plans, its increasingly complicated service criteria,By running
typically developed independent of resiliency planning or numerous operational and business-case scenarios,they
other operational plans. are able to be more proactive in their planning.
In contrast,new Adaptive Planning solutions leverage an Th s ability to model potential market factors has
ensemble of layered data including historical data along implications for other utilities and essential infrastructure
with real-time incoming network intelligence from existing services that rely on energy to function.Given the rapid
sensor networks that allows leaders to effectively address rate of technological change,volume of data created by
core management functions such as: utility networks and shifts in business models,it is no
longer possible to plan utility operations in isolation and
• Strategic Options Assessment:Advanced scenarios be effective.As operators gain a greater understanding of
and comparison analytics can be used to evaluate capital their businesses,there is a corresponding awareness that
investment,maintenance,operations or compliance utility planning must incorporate sharing information with
options against a wide-range of metrics. other utility service providers and local municipal services.
•Asset Management:Analytics can inform asset
Investment and maintenance plans with an The same is true from the perspective of city managers.
understanding of risks,impacts and criticality.For Faced with challenges from climate change,aging assets
example:assessing the implications of changing capital and evolving transportation/workforce conditions,the
plans on system reliability and demand fluctuations. move towards greater coordination of city resources and
• Operational Planning:Analytics can project variances
the delivery of service among critical lifeline utilities
between actual and planned performance and reveal is an essential component of the Smart Integrated
infrastructure systems that enable smart city programs.
improvement opportunities.For example:anticipating
how different operating decisions Impact regulatory
compliance.
The benefits of this agility is important across
geographies.Increasing urbanization is placing new
stresses on aging infrastructure.Elsewhere,regions
with large distributed generation bases are experiencing
different,but no less challenging situations.
BlackWI-134
In the past several years,vast portions of North America
have experienced severe drought conditions and/
or flooding.Other cities have faced challenges from
To put it bluntly, combined sewer overflow(CSO)decrees or nutrient
control concerns in their water system.The diverse
customers are less challenges associated with water management are
concerned with the likely key reasons why nearly 50 percent of municipal
respondents identified Smart Water programs as the
complexity of service most important systems to invest in first and 75 percent
of cities that are investing in smart city initiatives are
delivery when their implementing smart water systems(Table 10).Although
service works. the common role that municipalities play as water service
providers may also influence these figures,45 percent
also indicated smart electric grid activity underway in their
communities.Clearly,the interdependencies between city
and utility smart initiatives are evident to those who are
actually implementing smart programs.
Table 10
What do you see as the top three most important systems for a smart city program to invest in first?
LocalMost Important Smart City Electric Water Combined
University)
Systems to Invest in First Utility Utility Utility Government/ College
Municipality
High-speed data network 38.1'" 38.7" 47.4" 39.8` 10.0"
Smart transportation 14.3' 22.6" 15.8" 27.3" 14.3"
*11114-44461;'40,0. Y
� WX - "
Smart electric grid 68.4" 34.9" 68.4" 30.7" 28.6"
Renewable/distributed 277" 19.9% 21.1" 15.9" 32.1"
generation
Smart street lighting 10.8" 4.8" 5.3" 12.5' 7.1%
Smart buildings(energy/
water efficient,smart 31.2' 25.7" 29.8" 28.4' 46.4'
appliances)
Energy management systems
(buildings,campuses, 45.9% 37.0% 42.1% 40.9" 46.4'
regions)
Microgrids or nanogrids 10.0' 4.8" 14.0% 4.5" 3,6'
Smart waste systems 3.0' 17.1" 8.8% 19.3" 10.7'
Interactive kiosks/
community information 2.6" 4.1" 3.5" 10.2' 10.7%
systems
Source:Black&Veatch
62 I 2015 Strategic Directions:Smart Utility Report UB-135
While much progress has been made over the past several
years in terms of making utilities and cities smarter,there
is a tremendous amount of work to be done.Municipalities
and utility service providers are alt too often labeled as
slower to embrace or adapt to new technologies than their
high-profile counterparts in the retail or financial sectors.
The ability to finance smart city investments is reminiscent
of the"chicken and the egg:'Customer reluctance to fund
efficiency improvement programs is proportional to the
success of utilities in providing their core function.
• To put it bluntly,customers are less concerned with the
complexity of service delivery when their service works.
As previously noted,electric utilities in particular and
commercial interests in general are thought to be the
primary beneficiaries of smart city programs.With this
perception in mind,nearly 70 percent of respondents
identified public-private partnerships as the way that these
initiatives should be financed.To facilitate the greater
use of alternative financing methods like public-private
partnerships will require municipalities and utilities to take
a more active rote in educating their residents/customers
about the need to invest in technology.It will also require
municipalities and utilities to embrace alternative
financing methods to obtain the necessary funding.
For organizations that provide essential services,
this represents the greatest transformation in utility
operations in decades.For the smart city,it will facilitate
the transformation to becoming a better place to live and
a more friendly and desirable place to do business for
generations to come.
Blackly K436
LIST OF FIGURES
Figure 1 Figure 12
What do you see as the primary driver of What does your organization see as its two most
smart city initiatives in your region? significant gaps in its current automation state?
Figure 2 Figure 13
When do you believe there will be widespread What types of data analytics does your
adoption and implementation of the smart city organization currently use to improve its
model across the United States? operational performance?
Figure 3 Figure 14
What are the top three business/administrative What are your organization's three biggest
areas in your organization that would be best obstacles to more fully capitalizing on data
served by increased data management and analytics opportunities?
analytics capabilities?
Figure 15
Figure 4 What systems are you currently implementing?
What are the top three reasons why you
are planning on upgrading or building Figure 16
communications infrastructure in the next Which of the following automation initiatives are
5 years? you currently implementing?
Figure 5 Figure 17
Select the top two reasons you are considering, Why have you not considered a smart initiative?
planning or currently deploying IP network Figure 18
convergence. What systems are you currently implementing?
Figure 6 Figure 19
What do you see as the two biggest challenges to
Please rank the following organizations in terms
deploying an IP network convergence solution? of which organizations benefit most from a
Figure 7 municipal-wide smart city initiative.
Do you currently have a long-range plan for Figure 20
development of your telecommunications Please rank the following city agencies in terms
networks? of which agencies benefit most from a municipal-
Figure 8 wide smart city initiative.
When did or will you start to roll out major Figure 21
changes in the following automation programs? What would be the most effective financing model
Figure 9 for smart city initiatives?
What does your utility include in its definition of Figure 22
distribution automation? What are the top three hurdles that must be
Figure 10 overcome to enable utility,city/community or
Which of the following statements best reflects campus systems to be managed in a smarter,
your approach to the implementation of smart more integrated way?
grid and automation programs? Figure 23
Figure 11 What is your organization's biggest security
What are the three primary business drivers for concern regarding management and use of data?
your automation programs?
64 I 2015 Strategic Directions:Smart Utility Report UB-137
LIST OF TABLES
Table 1
Are you planning on replacing,upgrading or
building communications infrastructure in the
next 5 years?
Table 2
Do you operate a private communications
network to support transmission and distribution
operations?
Table 3
What are the top three reasons you are planning
on upgrading or building communications
infrastructure in the next 5 years?Figure 4
Table 4
What are the three primary business drivers for
your automation programs?
Table 5
What are the top three reasons you are planning
on upgrading or building communications
infrastructure in the next 5 years?
Table 6
What types of data analytics does your
organization currently use to improve its
operational performance?
Table 7
What are your organization's three biggest
obstacles to more fully capitalizing on data
analytics opportunities?
Table 8
What top three operational areas in your
organization would be best served by expanded
data management and analytics capabilities?
Table 9
What are the reasons your organization is
currently collecting and transmitting field data to
a central location?
Table 10
What do you see as the three most important
systems for a smart city program to invest in
first?
Black
U13-138
BUILDING A WORLD OF DIFFERENCE®
Black&Veatch is an employee-owned, global leader in building critical human infrastructure
in Energy,Water,Telecommunications and Government Services. Since 1915,we have helped
our clients improve the lives of people in over 100 countries through consulting,engineering,
construction,operations and program management.Our revenues in 2013 were US $3.6 billion.
Follow us on www.bv.com and in social media.
LEGAL NOTICE
Please be advised,this report was compiled primarily based on information Black&Veatch received from third parties,and Black&Veatch was not
requested to independently verify any of this information.Thus,Black&Veatch's reports'accuracy solely depends upon the accuracy of the information
provided to us and Is subject to change at any time,As such,it is merely provided as an additional reference tool.in combination with other due diligence
inquiries and resources of user.Black&Veatch assumes no legal liability or responsibility for the accuracy,completeness,or usefulness of any information,
or process disclosed,nor does Black&Veatch represent that its use would not infringe on any privately owned rights.This Survey may include facts,views,
opinions and recommendations of individuals and organizations deemed of interest and assumes the reader is sophisticated in this industry.User waives
any rights it might have in respect of this Survey under any doctrine of third-party beneficiary,including the Contracts(Rights of Third Parties)Act 1999,Use
of this Survey is at users sole risk,and no reliance should be placed upon any other oral or written agreement,representation or warranty relating to the
information herein.
THIS REPORT IS PROVIDED ON AN"AS-IS"BASIS.BLACK&VEATCH DISCLAIMS ALL WARRANTIES OF ANY KIND,EXPRESSED OR IMPLIED,
INCLUDING,WITHOUT LIMITATION,ANY WARRANTY OF MERCHANTABILITY,FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.
BLACK&VEATCH.NOR ITS PARENT COMPANY,MEMBERS,SUBSIDIARIES,AFFILIATES.SERVICE PROVIDERS.LICENSORS,OFFICERS,DIRECTORS
OR EMPLOYEES SHALL BE LIABLE FOR ANY DIRECT,INDIRECT,INCIDENTAL,SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR
RELATING TO THIS REPORT OR RESULTING FROM THE USE OF THIS REPORT.INCLUDING BUT NOT LIMITED TO DAMAGES FOR LOSS OF PROFITS,
USE,DATA OR OTHER INTANGIBLE DAMAGES,EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
In addition,user should place no reliance on the summaries contained in the Surveys,which are not Intended to be exhaustive of the material provisions
of any document or circumstances.If any point is of particular significance.reference should be made to the underlying documentation and not to this
Survey.This Survey(and the content and information included therein)is copyrighted and is owned or licensed by Black&Veatch.Black&Veatch may
restrict your access to this Survey,or any portion thereof,at any time without cause.User shall abide by all copyright notices,information,or restrictions
contained in any content or information accessed through this Survey.User shall not reproduce,retransmit.disseminate,sell,distribute,perform,display.
publish,broadcast,circulate,create new works from,or commercially exploit this Survey(including the content and Information made available through
this Survey),in whole or In part,in any manner,without the written consent of Black&Veatch,nor use the content or information made available through
this Survey for any unlawful or unintended purpose.
BLACK&VEATCH ,1 Black&Veatch Corporation.2015.
AU Rights Reserved,The Black&Veatch name and logo are registered
11401 Lamar Avenue,Overland Park,KS 66211 trademarks of Black&Veatch Holding Company.
P+1 913-458-2000 I E Medialnfo@bv.com I W bv.com REV2015-01
UB-139