10.3 CASE STUDY ONE

Conservation Project Saves $24M for Utilities

Tim Brown, Heath Consultants, Inc.

One of the largest energy and water conservation projects carried out in the United States saved $24.4 million per year at a cost of $2.7 million for 278 water utility companies in the state of Tennessee as of January 1991. This is a benefit-cost ratio of 9.5:1 and represents a payback period of just 38 days. The average system savings was $91,398 per year.

The Tennessee department of Economic and Community Development, Energy Division, provided the funding for and implemented the water accountability project. More than 400 water utilities were eligible for participation in the program.

The Tennessee Energy and Water Conservation Program was submitted to the State of Tennessee and was nominated by Governor Ned McWherter for national award consideration by the U.S. Department of Energy. Government officials, scientists, engineers, and others then evaluated the project. Upon completion of the evaluations, the program won honors in the National Awards Program for Energy Innovation.

The Tennessee Association of Utility Districts oversaw and administered the project on behalf of the State of Tennessee, and the water system audits, meter accuracy testing, and leak detection/pinpointing surveys were performed by a consultant. The project was divided into two phases: (I) to identify energy and water loss and to make recommendations for corrective action; (II) to conduct a leakage detection/pinpointing survey of the distribution system. Phase II was scheduled to be initiated if the benefit-to-cost ratio was favorable.