Services

Since 1992, URM has identified more than $70 million in potential unbilled revenue for 26 water and wastewater utilities. No other company in the United States can offer the services and expertise that URM combines to provide a program that is politically acceptable, technically feasible, and financially sound.

Our goal is to work with the utility staff to ensure that all the services delivered to its customers are fairly and accurately metered and billed.

The three general areas of revenue enhancement are billing inconsistencies, wastewater exceptions, and meter malfunction or tampering. Identification of revenue losses require a detailed analysis of billing systems, class codes, consumption patterns, credits given for water not returned to the wastewater system, all policies, procedures and practices as they relate to the correct billing of individual water and wastewater customers for services rendered, as well as identification of structural barriers within an organization to the correct billing of individual customers for water and wastewater services rendered.

URM’s revenue enhancement program is performance fee based. We get paid a percentage of the increased revenues that are actually collected, not estimated or projected, which means we don’t get paid until you do. URM bear all start-up costs, as well as all ongoing costs associated with its Program (except for the hardware, installation, bench testing and related service costs associated with the repair, replacement and/or installation and calibration of meters) thereby eliminating any risk for the client utility.

The function of the billing system is simply to provide the customer with an accurate bill that reflects the amount of service (water and wastewater) utilized during a specified period of time, normally 30 to 90 days, based on the ordinances that govern water and wastewater rates and service provision policies for that particular water utility. The billing system is the “cash register” of a water and wastewater utility, accounting for the majority of the operating income used on a day-to-day basis. It has also been used as a vehicle to bill for other services, such as stormwater and solid waste.

However, the data contained in the billing system is critical for the efficient operation of the water and wastewater system. Short and long-range operational and financial planning and water conservation utilize the consumption and financial information to make decisions on how the utility is financed and operated.

The billing system is composed of hardware and software that is dependent on correct programming and accurate information being received from the meter reading system. These meter reads, translated to electronic data, are an integral part of the components of the overall customer communication system: billing, meter reading and metering.

A schematic is displayed in Figure x, the origin of the data from new account set-up and meter installation is depicted. The flow of electronic meter reading information through the meter reading system to the billing system is also depicted and is a critical component in generating an accurate bill and storing accurate customer consumption data for use by all components of the utility.

The individual components of this flow of data are highlighted where, through human or technical error, there could be resulting water loss.

Figures xx.xx and xx.xx highlight the distribution of water loss based on these potential errors. Figure xx.xx includes metering malfunctions because some metering issues will be identified through consumption pattern evaluation of individual accounts on the billing system, not just meter testing or other forms of data analytics.

Potential Water Loss Associated with Billing and Meter Reading Systems

It is recommended that the billing system analysis always be performed as the initial step of a water audit, because gaps in this process could affect the data that are evaluated in other portions of the audit.

The Customer Billing System

The audit of the billing system should focus on three areas: identifying new (lost) accounts (new account setup), open bypasses/unauthorized consumption and meter reading issues.

New (lost) accounts.

Taxing authorities now have interactive maps of all parcels on the tax rolls. The Utility that has GIS/Mapping capability can explore the possibility of overlaying the customer addresses with tax parcel information to identify those tax parcels that are presently not on the billing system and not receiving a water bill. A better alternative may be, using the GIS water distribution system overlay and the customer accounts from meter reading, overlaying these two layers and looking for anomalies between the two overlays. Obviously, known areas where there might be water wells will have to be taken into account.

Another situation that can be troublesome concerning lost accounts is where the water utility is providing service to another entity, directly metering that entities customers, and that entity is billing the customers. In this situation, the contract normally stipulates that the entity will furnish the water utility with a list of all new customers and accounts on a monthly basis. When this doesn’t happen, there can be a substantial mismatch between water supplied to the entities’ customers and water accounted for by the water utility, not to mention financial loss if the new customers aren’t reported on a timely basis. At this point the water utility will need to audit the entities billing system to correct any deficiencies.

Open Bypasses.

There are three circumstances that lead to a bypass being open:

The bypass is left open on meter installation,
The bypass is left open after routine meter maintenance or emergency repair, and
Unauthorized usage.

While not 100% effective, requiring all bypasses to be locked upon installation will eliminate the majority of water loss due to these three circumstances.

A sampling of all meters with bypasses should be conducted, first on the billing system by reviewing consumption patterns, and then in the field to verify those meters where consumption patterns on a particular account are not in line with the meter size and land use for that particular account.

Since large meters, three (3) inch above, can account for up to or over 50% of all water consumed in a utility, a significant sample of accounts with large meters whose consumption patterns are not consistent with meter size and associated land use should be utilized in the audit.

Meter Reading/Billing.

It is difficult to separate meter reading, manual, AMR (walk-by or drive-by) or AMI from billing. Without access to accurate meter reading data, the billing system starves to death and cannot function.

There are specific areas of meter reading that will lead to inaccurate information and water loss:

Installation of an incorrect register or improperly installing the correct register.
The meter interface with the ert/miu/ume. Correct programing of number of digits and multiplier, wiring (faulty, incorrect) and battery life.
The meter reading interface with the billing system. The issues are the same as number two (2) above only in the billing system itself, correct number of digits and multiplier.

Once again, a sampling of all meters 3 inches and above should be conducted, first on the billing system by reviewing consumption patterns, and then in the field to verify those meters where consumption patterns on a particular account are not in line with the meter size and land use for that particular account.

Since large meters, three (3) inch above, can account for up to or over 50% of all water consumed in a utility, a significant sample of these meters should be utilized in the audit.

The Billing System.

The biggest cause of water loss in the billing system is related to human error. Inaccurate information input, or receipt of inaccurate information by the Customer Service Representative (CSR) such as meter size and land use type, which is necessary for correct customer class coding, will lead to incorrect minimum gallons of usage where gallons are associated with the minimum bill or first billing tier as applicable. Also, as stated above, correct programing of number of digits and multiplier for each account (received from the field technicians installing the meter or the field technicians inputting the data into the billing system directly).

Data Analytics.

With the advent and development of AMI technology, large amounts of consumption data are now available that can be analyzed on an account-by-account basis electronically. This analytical process will allow the water utility or its consultant to determine from the office if there are specific issues associated with the consumption data that should be analyzed further. Specific algorithms are and can be developed to determine meter reading and metering issues that could lead to revenue and water loss.

For example, a steady downward trend in consumption or a sudden drop in consumption with no rebound could tell the data analyst that there could be a meter that is slowing down, sticking, or that there may be unauthorized consumption as a result of meter tampering. There could also be associated wiring or battery issues with the ert/miu/ume.