07272017Thu
Last updateWed, 26 Jul 2017 7pm

i

How to Choose the Best Rapid Prototyping Method

How to Choose the Best Rapid Prototyping Method

As new products are designed, including ...

Monitoring Valve Health via the Internet

Monitoring Valve Health via the Internet

Most valve end users are already using s...

Valves in Oxygen Service

Valves in Oxygen Service

In his presentation at VMA’s 2017 ...

Thermal Spray Coating

Thermal Spray Coating

Q: What are the pros and cons of us...

Subscribe SUM17

FREE SUBSCRIPTION*

•  Print magazine
•  Digital magazine
•  VALVE eNews
Read the latest issue

*to qualified valve professionals in the U.S./Canada

The Weekly Report

New Products

  • ja-news-2
  • ja-news-3

Industry Headlines

TAQA Awards Schlumberger EPCIC Contract for Otter Field

Wednesday, 26 July 2017  |  Chris Guy

OneSubsea, a Schlumberger company, has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract for a s...

Readmore

Loading...
Advertisement
i

Web Only

The Actuation Selection Process

The Actuation Selection Process

Tuesday, 25 July 2017  |  Carlos Gamero

A common misconception in our industry is that actuating a valve is as simple as putting the most cost-efficient actuator on top of your valve of choi...

Readmore

Loading...

Industry Headlines

TAQA Awards Schlumberger EPCIC Contract for Otter Field

8 HOURS AGO

OneSubsea, a Schlumberger company, has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract for a subsea multiphase boosting system by TAQA for the Otter field in the UK North Sea. OneSubsea leverages Cameron flow control, process technologies and m...

Readmore

Crane Co. Reports Second Quarter Results

1 DAY AGO

Crane Co. reported second quarter 2017 earnings of $1.14 per diluted share, compared to $1.15 per share in the second quarter of 2016. Excluding Special Items, second quarter 2017 earnings per diluted share were $1.17, compared to $1.21 per share in the second quarter of 2016.

Second quarter 2017 sale...

Readmore

Shale Sector to Be Cash Flow Positive by 2020

8 HOURS AGO

The tight oil sector has struggled to generate positive cash flow since 2010. Last year, only one company in the sector posted positive cash flow. But there is light at the end of the tunnel. Wood Mackenzie’s new report " When will tight oil make money? " calculates that the five largest tight oil...

Readmore

U.S. Chemical Production Moved Higher in June

1 DAY AGO

According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) edged higher by 0.3% in June, following a 0.3% gain in May, and a 0.4% decline in April, as measured on a three-month moving average (3MMA) basis. During June, output grew in all regions except t...

Readmore

U.S. Consumer Confidence Rebounds in July

14 HOURS AGO

The Conference Board Consumer Confidence Index, which had declined marginally in June (a downward revision), improved in July . The Index now stands at 121.1, up from 117.3 in June. The Present Situation Index increased from 143.9 to 147.8, while the Expectations Index rose from 99.6 last month to 103...

Readmore

IHS Market PMI Index Reached Four-Month High in July

1 DAY AGO

July data revealed a further acceleration in business activity growth across the U.S. private sector. At 54.2, up from 53.9 in June, the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index signaled the strongest rate of expansion since January.

The pickup in business activity growth ...

Readmore

Making Progress On Improving Our Aging Water Infrastructure

spr11_watermain_break_photo.jpg

The nation’s utilities are employing rate increases, technology and other tools to maintain and, in some cases, upgrade or replace, our water infrastructure.

The frequency of water leaks and main breaks occurring across the U.S. is increasing at a steep rate as years of unchecked deterioration take their toll on a water infrastructure that, in places, dates back to the second half of the 19th century. Utilities and state and federal agencies are well aware of this growing dilemma. However, the unusually high number of devastating main breaks is significantly increasing public awareness of the dire condition of the country’s water system.

In February 2011, news outlets across the country reported that Kansas City, MO, experienced 467 main breaks this winter alone—a 73% increase in the number of breaks the city experienced during the winter of 2010. Montgomery and Prince George’s County, MD, which deliver water to 1.8 million people, also made news headlines for breaks in their water systems. According to one article, both counties set a record in December 2010 for having the largest number of water main breaks in a single month—647. The following month, Prince George’s County experienced a 54-inch water main break that damaged nearby businesses and leaked an estimated 50 million gallons of water.

While municipal spending on water systems is taking place, much of it is for emergency repair, and it is not nearly enough to cover the estimated spending gap for necessary repairs and replacement. As stated by the American Society of Civil Engineers (ASCE) in its 2009 report, “America’s drinking water systems face an annual shortfall of at least $11 billion to replace aging facilities that are near the end of their useful lives and to comply with existing and future federal water regulations. This does not account for any growth in the demand for drinking water over the next 20 years.”

To address the shortfalls, municipalities and water utilities are looking at a variety of funding sources, including municipal bond issuance, higher water rates and increasing operational efficiencies.

Municipal bond issuance is a common funding source for water systems. However, some investors have recently expressed concern about the risk of possible municipal defaults. Results of a Reuters poll published in February 2011, found that more than half of Wall Street professionals, including municipal bond traders and investors, anticipate that up to four multibillion-dollar municipal bond defaults will take place this year.

Fortunately, certain investment analysts and ratings agencies have a more optimistic view of municipal bonds that focus on water systems. A recent Fitch Ratings report explained the relatively stable credit quality of water bond issuers. The report cites numerous supporting factors, including the essentiality of water and its monopoly status, which has helped shield the water sector from certain economic factors.

Some analysts say that recovering more of the actual cost of water—if not moving toward full-cost pricing—could be an important avenue to increase the investment needed in our aging water infrastructure. They point out that water rates in the U.S. are typically less than in other developed countries. In fact, results of the International Water Report and Cost Survey, conducted by NUS Consulting Group in 2007, indicated that U.S. water rates were the least expensive at 66 cents per cubic meter average compared to the 13 other developed countries that were surveyed (Denmark’s rates were the highest at $2.25 per cubic meter).

A significant source of funding for water and wastewater comes from the revenues generated by user rates; therefore, pricing water to accurately reflect the costs of providing quality water services is one strategy that utilities are using to maintain infrastructure and encourage conservation.

However, as rates increase, utilities will need to proactively educate consumers on the true value of water to absorb the shock of higher rates and ease consumer acceptance of those rates, according to Avoiding Rate Shock: Making the Case for Water Rates, a study sponsored by the AWWA [American Water Works Association] Water Utility Council. The study found that consumers get upset over rate increases because of misunderstandings about the true value of a safe, adequate supply of water, and that a consistent, structured communications strategy can build support for rate increases.

  • Latest Post

  • Popular

  • Links

  • Events

Advertisement

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association