The Water Industry is at the threshold of a profound transformation with smart operations slated to dominate the future. PROTEUS Consulting is defining Water-Energy Nexus 2.0 - beyond reduction of water and energy footprints by the respective industries, towards collaboration, solving common problems and attaining win-win solutions. We ensure consistent progress towards identification of technology and resources that will provide maximum return on investment to not only achieve energy efficiency, but also develop synergistic relationships between water and energy utilities towards a common goal of providing sustainable and fiscally responsible services to the communities they serve. While PROTEUS Consulting works to help municipal clients achieve benefits from traditional energy efficiency (EE) and Demand Response (DR) programs, we are currently working with CPUC, CEC, CalISO, CalEPA, and the IOUs to establish a groundbreaking program to allow water utilities leverage their flexibility in operations and capacity to help balance the grid (as a fast responding flexible load) and in turn receive a revenue stream that is independent of the volume of sales of water.

1. © 2013
Water+Energy
Water and Energy are Intertwined and
Interdependent. What is the Next Frontier?
presents

2. © 2013
Water and Energy
Sectors are Linked
BUT separate structures for regulation, rate, oversight,
performance measures, administration, financial tracking ….

3. © 2013
© California ISO
Energy Sector’s Reality
• Energy Independence - needs
scalable generation and distribution,
takes time, very expensive
• 2020 California Goals
o 33% Renewables
o 12,000MW local generation
o 20% GHG reduction
o Retiring once-through cooling power plants
• Renewables
o Base load (coal, natural gas, nuclear) – dirtier, more
reliable, cheaper
o Alternatives (solar, wind, tidal, biofuels) – intermittent,
cleaner, less reliable, more expensive

4. © 2013
Consumer bases Energy
Choice on Price
• Established programs
o Energy Efficiency
o Demand Response
o What NEXT??
• Focus on Efficiency and
Energy savings
o BUT cannot “save” our way out of a
crisis
o New renewable supply changes the
nature of “peak load”

5. © 2013
Future Electricity Grid
• Supply will be:
o Less predictable, controllable, and firm
o More distributed
o Both closer to and further from loads
• Demand will be:
o More dispatchable, predictable and controllable
o Look for more price responsive, temperature/voltage-sensitive
o More coupled to reliability needs of the grid
• Power Grid will be:
o More observable, more dynamic, coupled with controllable
devices
o Buffered with the deployment of storage

6. © 2013
SMART Grid
Smart
appliances
will shut off
in response
to frequency
fluctuations
A network of integrated microgrids
that can monitor and heal itself
Generators,
small and
local
Energy
generated
off-peak
times will be
stored in
batteries
Sensors will detect
fluctuations and
disturbances and signal
for areas to be isolated
System processors
execute special protection
schemes in microseconds
Demand
management on
a 5-minute scale
or less

7. © 2013
The Electricity System
Must Always Balance
• Re-configuring Demand Response as a flexible
resource that can help balance the grid and
improve operational and market efficiencies
o Peak Load Reduction
o Intra-Hour Variability
o Ramp Smoothing
o Load Shifting/Over
Generation Mitigation
© California ISO

8. © 2013
Water Sector’s Energy Use
• 19% of Energy in CA
• 30% of non-power plant natural gas (CA)
• 88 billion gallons of diesel
• Over $500 million on energy costs

9. © 2013

10. © 2013
Water Sector’s Reality
• What are we doing?
o Energy Audits
o Focus on Energy Efficiency /
Savings Plan
• rebates by utilities on
pumps, VFDs, motors
• Capital projects with
reasonable ROI
o Time of Use pumping
strategy/ going off-grid
• Energy costs going up,
water is more
expensive to
produce/treat
• Aging infrastructure
needs investment
• Reliability investments
required
• Rate hikes are
unpopular
• Built-in excess capacity

11. © 2013
Energy Audits
• Level I
o Walk-through, low cost improvements (HVAC, lights), quick payback, use
utility rebates, usually free for the water utility
• Level II
o Energy survey and analysis, several hours per facility, look at power usage
by equipment type; low cost improvements suggested (lights, HVAC,
equipment upgrades such as VFDs, premium efficiency motors, etc.),
quick payback, use utility rebates, Costs about $10,000, shared by energy
utility
• Level III
o Detailed process audits, several weeks of data collection and analysis,
review energy use rates, energy balance, pumps, process, operations;
alternatives with cost benefit analysis; costs $8,000 - $60,000. Some cost
share possible with energy utility, but commitment required by water utility
to implement measures
• Renewable Energy Assessments
o Costs $100,000+; very detailed analysis of renewable options within the
system; only viable after all the efficiency / savings projects have been
implemented

12. © 2013
CalEPA (Region 9) Pilot
• 2010 – 2011 pilot with 15 water agencies, mixture of
Level II and Level III audits, at no cost to facility
owners
o 17% savings in energy use, 26% savings in energy costs
o No statistical differences between small and large utility results
o 15 recommendations with <1yr payback period, with total annual
savings of $190,000/yr. (>100% ROI)
o Recommended projects had maximum payback period of 7.5
years
• $1.4 million / year cost savings with a 4.5 year payback (16%
ROI/yr.)
• 6900 MWhr/yr. reductions
• BUT cannot “save” our way out of a crisis

13. © 2013
So, Where is the Nexus?
Dynamic Real-time Optimization

14. © 2013
Opportunity in Water
• 30+ Year planning horizon
• Excess capacity
• Investment made in SCADA
• VFDs, premium motors
• Water/Process Models (Static)
• Operations Strategy currently
based on low-priced but fixed off-
peak energy tariff
• Operations independent of
Engineering

15. © 2013
Provide signals based on grid
conditions
Signaling provided through smart
meters or facility energy
management system to reflect
system conditions
Water utility utilizes smart controls
that communicate to equipment
within the facility
ISO publishes
signals as an
indicator of grid
condition
© California ISO

16. © 2013
Technology exists today to enable
robust wholesale demand response
2-way
Communications
Control Systems
Dispatch Signals
Price Signals
Advanced Metering
Infrastructure
OpenADR
Smart Energy Profile
Legacy Direct Load
Control
ISO IOU
3rd Party Aggregator
Commercial, Industrial &
Agricultural, Residential
Consumers
Smart metering
Information
Enabling technology & devices
Tariffs & programs
© California ISO

17. © 2013
When applied to Water
and Wastewater Systems
• Participate in grid reliability (day-ahead, real-
time, reserve, 5-minute, or even faster)
• Full connection to SCADA, automated system
• Hourly or half hourly upgrades to operating plan
• In-time response to real-time events
• Achieve incremental additional efficiencies
• Revenue generated by flexibility

18. © 2013
Dynamic Real-time
Optimization
Energy
Optimizer
Hydraulic /
Process Optimizer
Energy Signal
SCADA

19. © 2013
Hydraulic /
Process
Model Runs
SCADA
Information
Decision
Process Notes
/ Chats
Control
Strategy
Visualization
Module
Boundary
Conditions
Observed
World
Conditions
Rules of
Operation
Decision
Logic
Business
Intelligence
DATAMINING
INPUT ANALYTICS PREDICTIVE
Query Based
Retrieval and
Operations
 Whole business
 Accurate State of
System
• History
• Confidence level
• Control Logic
• System
Constraints
• Energy Programs
LEARNING NETWORK
Energy Use

20. © 2013
The Future
Generate Revenue by leveraging the inherent
flexibility of your system while assisting the regional
electricity grid
• Receive a new and continuous revenue stream
• Specify constraints on flexibility - No impact on
effective operation of equipment or processes
• Knowledge management, SMARToperations
• Reduce GHG emissions by increasing the efficiency
of the electricity system
• Improve the stability of the regional electricity
system and the market’s ability to integrate
renewable power generation

21. © 2013
Water+Energy = Dynamic
Real-time Optimization
Soma Bhadra, CEO
(858) 353 2805
soma@consult-proteus.com