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AWWA ACE58342

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AWWA ACE58342 Evaluating Use of Performance Contracting to Achieve Water Conservation Savings in the ICI Sector

Conference Proceeding by American Water Works Association, 06/15/2003

Scaramelli, Alfred B.; Scott, Kathy F.; West, Wayne W.

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The Southwest Florida Water Management District (SWFWMD), in conjunctionwith Pinellas County, Florida, is in the process of developing a pilot program to reducewater demand in the institutional, commercial, and industrial (ICI) sector. While muchhas been accomplished in residential water conservation, little success has been realizedin the ICI sector, a major source of water demand. Therefore, the pilot program plans totest the effectiveness of private sector performance-based contracting to achievereductions in process (non-domestic) water demand. Financial incentives to ICIcustomers are expected to be in the form of rebates based on "gallons of water saved peryear" for process water conservation measures. The pilot program will offer ICIcustomers a complete water conservation delivery system, including water use survey,conservation system design and installation, and savings measurement and verification, incontrast to the more common offering of free surveys and/or rebates without a directmethod for the ICI customer to procure a water conservation program.The pilot program will target the largest ICI water users including hospitals,schools, colleges, hotels, and industrial facilities. Although still in the planning stages,financial incentives to these customers are anticipated to be one time rebates equal toapproximately $7.00 (the current charge for water and sewer) per 1,000 gallons of watersaved in one year, with savings based on pre- and post-installation measurements ofprocess water use. The rebates are independent of conservation installation costs and arebased solely on water savings. Participating ICI customers will pay approximately 75%of the cost of a comprehensive water conservation project with the rebate coveringapproximately 25% of the cost. Net paybacks, including the value of the rebates, areexpected to be 2 to 3 years.

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Edition: Vol. - No. Published: 06/15/2003 Number of Pages: 6File Size: 1 file , 220 KB