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Water Industry Trends

As the new century dawns, there are more than 55,000 water systems in the United States employing nearly 30,000 people. Despite outward appearances as a staid, unchanging field, the water industry today is changing on a number of fronts. From issues of privatization to new sources of clean water to newer and ever more stringent, drinking water regulations, exciting new challenges face the water industry professionals of today - and tomorrow.

Privatization

    Competition - the great engine of the American economy thrives on the concept of competition. How about the water industry? Both domestically and internationally, the issue of privatization is a hot topic of conversation. While the majority of water purveyors in this country are publicly owned, the number of investor-owned water (and wastewater) utilities is growing. The largest domestic investor-owned utility operates in nearly half the states and serves tens of millions of customers. Some private international firms are even larger.

    This trend has not gone unnoticed by the municipally owned systems. They have responded by launching benchmarking programs to demonstrate their efficiencies and effectiveness as well as embarking on internal changes to make their organizations ever more competitive.

    Is there an ultimate winner in this competition? Yes - it's the consumer, who can rely on continued supplies of clean water at competitive rates.

Infrastructure

    One of the great challenges facing water utility managers today is the replacement of critical, but aging, infrastructure components. What do we mean by critical infrastructure? That's simply the term used to describe the physical works, mechanisms, and machinery that obtain, treat, and deliver clean water to the customers.

    In a few major urban areas, some water pipes are over 100 years old. Many pump stations and filters date from the great construction boom that followed World War II. These devices have served faithfully and well, but like anything else they are aging, and must be replaced soon.

    There are two major concerns with the infrastructure issue: 1) how to conduct the necessary upgrades and expansions while continuing to supply clean water to customers, and 2) how to pay for it. How do you replace miles of aging water pipe and still supply the growing demand for water? More importantly, how do you finance these massive projects? Cost estimates to replace aging infrastructure have ranged into the trillions of dollars.

    These challenges await the civil engineer, the construction superintendent, the finance manager...all of whom will participate in one of the great civil works projects of all time - the replacement of the key physical components that will continue to provide safe, clean drinking water to America's cities.

Public Involvement

    An entire generation has been raised with the understanding that they are a key link in environmental issues. Citizens today are more aware of the foods they eat, the air they breathe, and the water they drink. They want to know what's in it, how it's treated, and how that process occurs. And that's their right!

    The improvements in drinking water quality (and more importantly, safety) are truly one of the 20th century's greatest achievements. One hundred years ago, 25,000 people died annually from typhoid in the United States alone. Because of chlorine and other disinfection processes, these killer outbreaks have been eliminated. The public knows this fact and recognizes this accomplishment. But they also know that new challenges lie ahead - both technically and fiscally; and they want their voices heard in determining the solutions to those challenges.

The public today wants a utility, whether public or private, to be aware and responsive of their concerns. The successful utility of today and tomorrow must respond to the concerns of their customers and in fact, anticipate those concerns and be prepared with accurate facts and information. These issues have increased the importance of providing better customer service to the water consumer. No longer does customer service merely mean paying bills and establishing service. These days it consists of community outreach, educational programs, and establishment of innovative rate structures.

One component of the educational process is the newly required Consumer Confidence Report or CCR. Mandated by the federal Safe Drinking Water Act, these reports deliver specified information to the consumer about the quality of the water they drink. While water utilities are free to modify their CCRs in any useful way, each report must provide consumers with the following fundamental information about their drinking water:

    · The lake, river, aquifer, or other source of drinking water

    · A brief summary of the susceptibility to contamination of the local drinking water

    · Source, based on the source water assessments that states are completing over the next five years

    · How to get a copy of the water system's complete source water assessment

    · The level (or range of levels) of any contaminant found in local drinking water, as well as EPA's health-based standard, maximum contaminant level (MCL), for comparison

    · The likely source of that contaminant

    · The potential health effects of any contaminant detected in violation of an EPA health standard, and an accounting of the system's actions to restore safe drinking water

    · The water system's compliance with other drinking water-related rules

    · An educational statement for vulnerable populations about avoiding Cryptosporidium

    · Educational information on nitrate, arsenic, or lead in areas where these contaminants are detected above 50% of EPA's standard

    · Phone numbers of additional sources of information, including the water system and EPA's Safe Drinking Water Hotline (800-426-4791)

Gathering and disseminating this information is quite a task. Yet this is the environment in which utilities must learn to exist and, more importantly, thrive. Responding to the concerns of their customer base will be an issue faced by water utility managers for years to come.

Water Resources

    Americans are among the world's leading water consumers, using an estimated 339 billion gallons of water a day. Manufacturing, agriculture, health-care, and just simple thirst quenching account for this enormous use of water. Essentially, almost everything we do or touch utilizes water.

    Global water consumption increased sixfold during the last century, and it continues to skyrocket. This trend is expected to continue in both developing and industrialized nations. Adding to the complexity of the problem is the fact that while water supplies are generally abundant, they are unevenly distributed among and within countries. Other factors affecting water supply include excessive drawdown of groundwater sources and water pollution.

    There are two possible answers to this vexing problem of dwindling water supplies - find more water or use the water we have more efficiently. Huge strides have been made in acquiring and developing new sources, but the real key to the water supply problem lies in conservation. Simply installing more efficient water fixtures (e.g., washers, showerheads, toilets, and dishwashers) and regularly checking for leaks could reduce daily per capital water consumption in this country by 30% - that's over 5 billion gallons and more than $11 million saved daily.

    Who will implement this change? Water utilities have assumed an active role. The managers and water resource specialists who work for the local water utility know that if a sufficient supply of clean water is to be available tomorrow, newer and more effective water conservation measures must be enacted today. Being part of a water utility means participating in this vital effort to assure an adequate supply of clean water for future generations.

Regulatory Trends

    The history of public water supplies reaches far back into history. In ancient Rome, society knew the importance of a clean, safe, and abundant supply of water. Thus were born the aqueducts of old, many of which are still in existence (although not in use.). Modern methods of treating and delivering water to the public appeared in the mid-19th century in response to the high rates of waterborne disease that periodically afflicted the growing urban centers.

    Limited local, state, and federal water quality standards began to appear as the 20th century progressed, and tremendous advances in treating water were made. In 1972, Congress enacted the first comprehensive national clean water legislation in response to growing public concern regarding water pollution. The Clean Water Act (CWA) provides a comprehensive framework of standards, technical tools, and financial assistance to address the many causes of pollution and poor water quality.

    Companion legislation to the CWA is the Safe Drinking Water Act (SDWA). Originally passed in 1974, this legislation was amended twice, in 1986 and again in 1996. The SDWA authorizes the EPA to establish standards for public supplies of drinking water as well as requiring other actions to protect the many sources of drinking water including rivers, lakes, reservoirs, springs, and ground water wells.

    While focusing first on treatment methodologies intended to produce clean water at the tap, the CWA has expanded to such areas as source water protection, operator training, and public information about drinking water. Both CWA and SDWA continue to produce new and increasingly stringent regulations regarding water quality and drinking water safety.

    Among the current regulatory issues on the table are:

    _ Microbial contamination and the means to remove these disease causing organisms

    _ Radon and arsenic contamination and treatment methodologies

    _ Disinfection byproduct removal

    _ Public notification issues

    _ Analytical standards

    _ Operator certification

    _ Small systems capacity development

Regulations affecting these and many other crucial water supply and drinking water quality issues are being considered.

    How will water utilities meet these increasingly stringent standards? Certainly new treatment, analytical, and water delivery technologies are in development. But more importantly, who will participate in the many challenges that lie ahead in the water industry? Who will contribute to this massive public health effort that will affect their communities, friends, and families?

    Staffing issues are of paramount importance to every industry. Whether it's manufacturing, health care, technology, or a service industry - recruiting and retaining qualified staff is at the top of everyone's "to-do" list.

    The water industry is no exception. In the years to come, increasing numbers of qualified staff will be necessary in the areas of operations, maintenance, water supply, engineering, information technology, customer service, finance, and management. But the water industry is more than just another sector of the American economy. When you're a part of the water industry, you don't just produce another game or widget or service, you're part of an industry that's responsible for the very stuff of life itself - water.