Case Study

Erie Water Utility Starts a "Pay for What You Use" Program

N/AIZE=+1>The Erie Water Authority has approximately 51,000 direct customers and supplies water to a number of neighboring water systems. Of the Pennsylvania city's 51,000 customers, 28,000 residential customers within the city limits were not metered. That will change as a result of a project that now is well underway.

Flat rate customers of the city's water utility never had to be conscious of their water use habits in the past. Up to now, Erie has been one of the few communities in the United States where a majority of the utility's customers have received water service based on flat rate charges.

The Erie Water Authority must of course comply with mandates from the Pennsylvania Department of Environmental Protection (DEP) by obtaining a Water Allocation Permit and showing accountability for the water used. By practicing conservation, which means pumping less water, the Authority will save on major operating costs such as electricity and treatment chemicals. As a start to developing customer awareness of what had to be done, the Authority launched the campaign, "You Pay for What You Use."

The Chestnut Street Water Filtration Plant supplies customers of the Erie, Pennsylvania, Water Authority

To begin the transition from flat- rate to metered consumption, city management created a committee to choose a system that would make the transition easy and efficient. Because the water utility was facing problems such as estimated reads, lockouts, and inaccurate meter readings, they eventually decided to replace existing water meters with the ProRead Encoder and the Advance Meter Reading System.

The committee reviewed the various solutions available to automate the reading of meters still to be added to the system. These solutions included telephone, radio frequency (RF), and hand-held devices. To see how these technologies could be applied, the committee visited other water systems to determine the most effective solution for the situation in Erie. During their evaluation, the members' interest in Central Meter Reading (CMR) increased. Both Inbound Telephone and Fixed Base Radio-Frequency provided means to read the meters without additional labor. The panel members liked the fact that their existing encoder meters could be upgraded to an automated, fixed-network technology at a minimal cost.

The committee's other big decision was to determine how to implement an installation program. A great deal of emphasis was placed on managing a smooth program without interrupting service to customers. They evaluated both internal and external staffing resources.

Although the committee was very interested in providing a centralized reading solution (telephone or RF), its members were not confident they could secure enough bond money at that time to complete the project. They decided to purchase an encoder style water meter that could be read with the existing Advance hand-held units, and to choose an outside contractor approach to install and manage the project, which was large. They believed that the encoder meter option gave them the ability to transition to a centralized solution in the future.

After reviewing the proposals, the Erie staff asked vendors to make oral presentations. <%=company%> was chosen because the approach they offered was based on a turnkey solution that would provide meters, installation, and project management. One of the city's selection criteria was that a project management team from the contractor would work with the Authority to provide the expertise needed to accomplish the sizable meter installation task. The entire undertaking has been scheduled over five years, and completion is expected by the year 2000.

The committee appointed Ron Loader as meter manager for the Authority to work with Mike Presto, Schlumberger's Utility Service Division's regional service manager, to handle public relations and route mapping. Together they developed a 14-page handout to inform customers of the importance of the program. This includes details about the Erie Water Authority, ways to conserve water, energy savings tips, and other information useful for increasing customer awareness.

With the project partially complete, the city is well on its way toward meeting the goal of metering the entire distribution system. And the equipment installed lends itself to future expansion and upgrading to automated status.

Editor's Note: This article is a modified version of a case study that appeared in the Summer 1997 issue of Water Watcher, a publication of the Schlumberger Water Division.