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Don't Forget Water Utilities - They Can Be Connected Too

I posted a long (8 page) brief I had written on electric utilities, broadband and municipalities this morning, and yet that leaves out many of the conversations I had this week about water conservation and the role that broadband connectivity and AMI can play to help to stimulate movement in a positive direction when it comes to a dwindling water resource.

The theme of supply and demand and constrained resources kept coming up everywhere this week.

It's a big issue with electric utilities, of course, given the rising cost of fuel, constrained transmission resources, climate change, and pending carbon tax issues.

On the radio, Texas Public Radio broadcast in San Antonio had a discussion/debate on the Diane Rehm show about surface transportation policy and US Transportation Infrastructure, with differing opinions on whether we should focus on mass transportation, rail, and an integrated intermodal system, with information providing feedback on user behavior (demand side management), or whether that is doomed and what we really need to do is spend more money on building highways (supply side management).

But water is a huge issue and will get bigger and bigger as we move forward. I even had a discussion with a guy at dinner who is selling traditional water meters to water utilities in Louisiana that - sit down for this one - don't even have any meters at all on their accounts! They sell unmetered water as a service!

That is a traditional outmoded approach that assumes that the commodity of water is too cheap to meter - a flat rate is just fine, thank you very much. The problem with flat-rate services in general is that they end up with onerous cross-subsidization issues, where high consumers are subsidized by low consumers. With very cheap costs of commodity and very cheap transport costs, this may not matter, but the commodity cost is rising, and operation costs are rising as infrastructure needs upgrading and labor costs go up...there needs to be some rational mechanism to tie costs with revenue, and ultimately, to tie costs with benefits. High users should pay more than low users.

More below on the growing issues around constrained water resources and the need for better and smarter utility management.


Someone named Justin Hicks has a four-stroke lead on Tiger Woods in the first round of golf's U.S. Open, but the Plank's Michelle Cottle has golf news that's more likely to maintain long-term relevance than Mr. Hicks:

NPR commentator Frank Deford had a segment this morning about golf courses, in which he cited a Golf Digest poll showing that 41 percent of golfers believe global warming to be a myth. [See Water-Thirsty Golf Courses Need to Go Green]

This number struck me as surprisingly high. But then I did a little digging and discovered that, while an April Pew poll found that 71 percent of Americans say there is "solid evidence" the earth is getting warmer, only 49 percent of Republicans now believe that to be the case. More intriguing, Pew found the number of Republican skeptics to be on the rise - up 13 percentage points from a similar poll conducted in January 2007.

So if you assume that most golfers are Republicans, the stat makes perfect sense.

Well, if the rising of ocean levels means larger water hazards, Michelle, perhaps we'll see a shift of opinion on the links ... Few Greenies on These Greens By Tobin Harshaw

Until we can start to acknowledge reality, no matter how painful, change will remain extremely difficult. Denial is a powerful concept when it comes to human behavior and psychology, and denial is at its strongest when a change of facts - a new reality - threatens a comfortable lifestyle. It doesn't surprise me that golfers would be in denial, as a class, because they're very fond of their beautiful, lush courses and it's a great lifestyle to be attached to. The Country Club Life, if you've ever experienced it, is marvelous, but one must acknowledge, it really is an alternate reality. Few get to enjoy hanging out in beautiful circumstances where one is waited on hand and foot, where every whim is anticipated and met. Not that there is anything at all with that - I personally love country clubs (and I'm an avid golfer, whenever I get a chance).

But to live in a bubble and yet not realize that one is living in a bubble takes a special form of cluelessness - it's a rather lazy outlook on life, IMHO. And selfish too. My mama taught me in no uncertain terms that lazy and selfish are no ways to go through life.

In that same segment, there was this item as well: Drought Hits California's Already Tight Water Supply.

If you open your eyes and look, open your ears and listen, more and more you'll hear stories about water shortages and conservation, but it's amazing how many managers at water utilities can't see the forest for the trees. They're still behind the curve in implementing an automated meter infrastructure (AMI) system that will give them detailed digital data, which can be used not only for revenue measurement purposes, but also to improve their management of their systems and lower the wasted water that leaks from old pipes that have been buried in the ground for decades.

It reminds me of the Stephen Covey story about "sharpening the saw" - a euphemism for taking time out for personal regeneration. As the story goes, the man is sawing away, but not making much progress. An observer stops him and asks, "why don't you take a break and sharpen the saw, then you could cut faster?" The guy looks at him with disgust, "silly idea, take a break! I'm too busy to take a break!"

Too many managers of infrastructure - pick the infrastructure - see their jobs as maintaining a status quo. Dramatic changes look scary (negative economic outcomes followed by negative political outcomes - lost job, anyone?), and so emotional arguments are made against suggestions like AMI and broadband. "We could never afford the capital investment of thousands of meter end points" is the most common objection. Even when a financial analysis shows a reasonable payback, it is too often dismissed, not for rational reasons, but as an excuse based on irrational fear of risk.

As a public policy issue, we must all grow more aware of how we address the issue of shrinking resources. Otherwise we'll end up in a society where a privileged few enjoy dramatically more than the underprivileged masses, and that is a recipe for political instability, where all end up losers.

The Bottom Line

Data communication systems, which include both wireless AMI and wired and wireless broadband, provide society with the information it needs to manage more effectively its scarce resources and to ensure politically equitable outcomes and a sustainable economy, the twin pillars of a civilized society.

Posted on June 13, 2008 at 07:56 AM


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