22.4 Asset Management, Energy Optimization & Water Loss Control

Key Takeaways

  • Asset criticality combines likelihood of failure with consequence of failure, so a rarely failing asset with no redundancy can outrank a frequently failing one.
  • The AWWA water audit separates apparent losses, which are metering and accounting errors, from real losses, which are physical leakage.
  • Infrastructure leakage index compares current real losses against the technically achievable minimum, allowing systems of different sizes to be compared.
  • Percent unaccounted-for water is a poor performance metric because it varies with consumption, which is why the water balance uses volume-based indicators instead.
  • Aeration and pumping dominate utility energy use, so variable frequency drives, dissolved oxygen control, and pump efficiency testing produce the largest savings.
Last updated: September 2026

22.4 Asset Management, Energy Optimization & Water Loss Control


Asset Management

Asset management answers five questions:

  1. What do I own? — the asset inventory
  2. Where is it and what condition is it in? — location and condition assessment
  3. What is its remaining useful life? — residual life estimation
  4. What is the cost to repair versus replace? — economic analysis
  5. What is my best long-term funding strategy? — the financial plan

Criticality

Criticality=Likelihood of Failure×Consequence of Failure\text{Criticality} = \text{Likelihood of Failure} \times \text{Consequence of Failure}

AssetLikelihoodConsequenceCriticality
Redundant small pumpHighLowLow
Single transmission main under a freewayLowVery highHigh
Chlorine feed system with no backupMediumVery highHigh
Spare valve in inventoryLowLowLow

[!IMPORTANT] Criticality is not the same as failure frequency. A pump that fails twice a year but has a redundant standby and takes an hour to swap is low criticality. A 36-inch transmission main that has never failed but has no parallel path and would take a week to repair is high criticality. Maintenance and capital resources should follow criticality, which frequently means spending more attention on assets that have never given trouble.

Condition assessment methods include visual inspection, CCTV for sewers, leak detection and C-factor testing for water mains, vibration and thermographic analysis for equipment, coating and cathodic protection surveys for tanks, and break history analysis.

Remaining useful life blends age against expected service life with observed condition and performance. Typical expected lives: cast iron main 75 to 100 years, PVC main 70 to 100 years, ductile iron 50 to 100 years, pumps 15 to 25 years, mechanical equipment 15 to 20 years, instrumentation 10 to 15 years, and SCADA hardware 10 to 15 years.

Level of service is what the asset management plan is protecting: pressure, reliability, water quality, response time, and compliance. Defining it explicitly is what converts asset management from a maintenance exercise into a business decision.


Water Loss Control

The AWWA Water Audit Method replaced the older "percent unaccounted-for water" approach with a standard water balance.

The Water Balance

ComponentDefinition
System input volumeAll water entering the system
Authorized consumptionBilled and unbilled, metered and unmetered
Water lossesSystem input minus authorized consumption
Apparent lossesCustomer metering inaccuracies, systematic data handling errors, unauthorized consumption
Real lossesPhysical leakage from mains, services, and storage overflows
Non-revenue waterAll water not billed: unbilled authorized consumption plus apparent plus real losses

[!IMPORTANT] Apparent and real losses require completely different responses, which is why the distinction matters. Apparent losses are paper losses — the water reached a customer but was not correctly measured or billed — and they are addressed by meter testing and replacement, billing system audits, and theft detection. Real losses are water physically escaping and are addressed by leak detection, pressure management, and infrastructure renewal. Apparent losses are usually worth more per gallon, because they are valued at the retail rate, while real losses are valued at the cost of production.

Why Percent Is a Bad Metric

[!WARNING] "Percent unaccounted-for water" is discouraged as a performance metric because it moves with consumption rather than with utility performance. A system whose losses are unchanged will report a higher loss percentage in a wet year when customers irrigate less, and a lower percentage in a hot dry year — the opposite of what a performance metric should do. AWWA recommends volume-based indicators instead.

Performance Indicators

IndicatorMeaning
Real losses per service connection per dayNormalizes for system size; the standard operational indicator
Apparent losses per service connection per dayMetering and billing performance
Infrastructure Leakage Index (ILI)Current annual real losses divided by unavoidable annual real losses
Non-revenue water as a percent by costFinancial rather than volumetric view

ILI is the most useful comparative figure. Unavoidable annual real losses is the technically achievable minimum for a system of that size, pressure, and connection density. An ILI of 1.0 means the system is at the practical minimum; an ILI of 8 means real losses are eight times the achievable minimum and there is substantial recoverable water.

Controlling Real Losses

The four recognized components of intervention:

  1. Pressure management — reducing excess pressure reduces leakage rate at every existing leak and reduces new break frequency. This is often the fastest and cheapest intervention available.
  2. Active leakage control — finding unreported leaks rather than waiting for them to surface: acoustic leak surveys, correlators, leak noise loggers, and district metered areas with night-flow analysis.
  3. Speed and quality of repairs — the volume lost is the leak rate multiplied by the time to repair, so awareness and response time are half the equation.
  4. Infrastructure renewal — replacing the mains that leak chronically.

District metered areas (DMAs) isolate a portion of the system with a single metered inlet and analyze minimum night flow, typically between 2 and 4 a.m. when legitimate consumption is at its lowest. Whatever is flowing at that hour beyond a small legitimate allowance is leakage, and a rising night flow in a DMA identifies a new leak within days rather than months.


Energy Optimization

Energy is typically the largest controllable operating cost after personnel.

FacilityDominant energy use
Water treatmentPumping (raw, high-service, distribution)
Wastewater treatmentAeration (45 to 60 percent of plant electricity)
DistributionBooster pumping
CollectionLift station pumping

Opportunities

MeasureTypical benefit
Variable frequency drivesPower varies with the cube of speed; large savings on centrifugal loads
Pump efficiency testing and impeller trimmingRestores efficiency lost to wear; matches pump to actual duty point
Aeration control (DO-based, most-open-valve, ammonia-based)The single largest wastewater opportunity
Fine-bubble diffuser upgrade and cleaningSubstantially higher oxygen transfer efficiency
Premium efficiency motorsModest but permanent
Peak demand managementShift pumping off-peak using storage; demand charges can approach half the bill
Power factor correctionAvoids utility penalties
Digester gas cogenerationConverts a waste product into electricity and heat
Solar generationWell suited to Arizona; utilities commonly host large arrays
Lighting and HVACStraightforward and often utility-rebated

[!IMPORTANT] Understand your electric rate before optimizing. Many utility accounts carry a demand charge based on the highest 15-minute demand in the billing period, and that charge can rival the energy charge. Starting two large pumps simultaneously can set a demand peak that is billed for the entire month, so staggered starts, soft starts, and using storage to shift pumping to off-peak hours can reduce a bill substantially without reducing a single kilowatt-hour of actual consumption.

Energy audits benchmark consumption per million gallons treated or per pound of BOD removed, establishing where the energy actually goes and which measures will repay their cost.

Test Your Knowledge

A utility's water audit shows real losses of 62 gallons per service connection per day and an infrastructure leakage index of 7.5. What does the ILI value indicate?

A
B
C
D
Test Your Knowledge

A utility discovers that a large commercial meter has been under-registering by 12 percent for three years. Under the AWWA water audit method, how is this water classified and what is the appropriate response?

A
B
C
D
Test Your Knowledge

A wastewater plant reduces total kilowatt-hours consumed but sees little change in its electric bill. What is the most likely explanation?

A
B
C
D