Integrated Water Resources (H 2 50) Plan Report

Transcription

1 Integrated Water Resources (H 2 50) Plan Report Annual Operating Licence Report

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3 Integrated Water Resources (H 2 50) Plan Report Annual Operating Licence Report

4 Integrated Water Resources (H 250) Plan Report Annual Operating Licence Report HW /7/ Hunter Water Corporation 36 Honeysuckle Drive Newcastle, NSW 2300 PO Box 5171 HRMC NSW 2310

5 About the Annual Operating Licence Reports Hunter Water Corporation (Hunter Water) delivers services under an Operating Licence granted by the NSW Government. The licence protects consumers by prescribing minimum standards of service that Hunter Water must meet in relation to: Drinking water quality - supplying customers with safe drinking water Water continuity - providing customers with a reliable supply of water Water pressure - providing customers with water pressure as specified in the licence Wastewater transport - providing the reliable transport of sewage. The Operating Licence also sets out conditions relating to community consultation, customer and consumer rights, customer complaint and dispute handling, managing water demand and supply, environmental management, publication of environmental and Ecologically Sustainable Development (ESD) indicators and independent auditing of operational performance. The current Operating Licence came into force from 1 July 2007 and is effective until 30 June The content of the licence was determined after a full public review by the Independent Pricing and Regulatory Tribunal (IPART) of the performance of the previous licence, which had been in place since A full copy of the Operating Licence is available on Hunter Water's website Each year, an independent audit of Hunter Water s operations is conducted to assess the Corporation's compliance with the Operating Licence. The audit assesses Hunter Water s performance against service standards and associated conditions of the licence. This annual audit is overseen by IPART. To assist in the audit process, the Operating Licence requires a number of reports to be provided annually to IPART. These reports are: Catchment Report Consultative Forum Report Customer Services Report Drinking Water Quality Management Report Environmental Performance Indicators Report Integrated Water Resource Plan Report Service Quality and System Performance Report The reports must be submitted by 1 September each year with the exception of the Drinking Water Quality Management Report, which is submitted by 31 December. All reports, or key elements of them as set out in the Operating Licence, must also be posted on Hunter Water's website or made available to the community free of charge at Hunter Water's offices. Integrated Water Resources (H 2 50) Plan Report i

6 Table of Contents About the Annual Operating Licence Reports... i Table of Contents... ii Executive Summary... iv 1 Introduction Integrated Water Planning at Hunter Water Purpose of this Report Existing Actions New Supply Development of the proposed 450 GL Tillegra Dam Capacity upgrade of Balickera Pump Station Potable Water Substitution Maintain existing recycled water supply Implement Kooragang Industrial Water Scheme Develop dual reticulation schemes for new residential subdivisions Assist the further development of recycled water schemes Review opportunities to expand volumes of wastewater recycled Leakage Reduction Maintain active leakage detection program Maintain water service replacement program Maintain watermain replacement program Maintain response time to known leaks Residential Water Efficiency NSW Climate Change Fund Home Savers Rebate Scheme Continue community education and awareness programs Continue outdoor/indoor metering trial Non-Residential Water Efficiency Continue school leakage detection program New Programs Potable Water Substitution Lower Hunter Water Plan Develop programs to encourage purchase of water efficient products Provide assistance to proponents of alternative water supply solutions Leakage Reduction Pressure management Residential Water Efficiency Promotion of water efficiency programs Develop an enhanced residential REFIT program Promote water saving products Provide a free DIY water saving kit Include an online garden plant selector on Hunter Water s website Shower timer give-away Establish web links to water efficiency websites Expand customer education and awareness program Website recognition of community water saving ideas Residential Water Efficiency: Introduce a smart water bill Toilet Replacement Service ii Integrated Water Resources (H 2 50) Plan Report

7 3.4 Non-Residential Water Efficiency Business water efficiency program Irrigation and Landscape Efficiency Program Large Customer Smart Metering Program Large Customer Water Efficiency Audits Program Reporting and Coordination General Water Efficiency Smart Grid, Smart City Wastewater Pump Station Review Karuah Water Usage Review Water Refill Stations Water supply operations Water supply balance Williams Valley source operations Water saving updates Operating Licence checklist Operating Licence Checklist: Section 9.2 Demand Management Strategy Summary of expenditure for improved yield or water savings for the Lower Hunter Integrated Water Resources (H 2 50) Plan Report iii

8 Executive Summary The Operating Licence issued by the NSW government requires Hunter Water to have in place an Integrated Water Resources Plan (IWRP) that responds to the water needs of its area of operations. Water security issues were addressed in Hunter Water s H 2 50 Water Plan published in The construction of Tillegra Dam was proposed as a means to secure water supplies through to at least The former government s decision to not proceed with the dam raises concerns about water security for this region for the short and long term. The former NSW Premier acknowledged these concerns and announced development of a new Lower Hunter Water Plan (LHWP) by the Metropolitan Water Directorate of NSW Department of Finance and Services in collaboration with Hunter Water, other government agencies and the community. Once complete, the LHWP will replace Hunter Water s H 2 50 Plan. In the meantime Hunter Water will continue to focus on water efficiency and recycling initiatives outlined in the existing H 2 50 Plan. The major highlights in were: Planning Supply Recycling Loss Minimisation Formation of the project team responsible for developing the Lower Hunter Water Plan, in conjunction with the Metropolitan Water Directorate. Construction of the upgrade of Balickera water pumping station was near completion at the end of the reporting year. Commencement of the Lower Hunter Recycled Water Initiative project and steering committee to oversee the projects included under the Australian Government grant. A revised procurement method was decided for the delivery of the Kooragang Industrial Water Scheme (KIWS). Negotiations for a commercial agreement with scheme partners was nearing completion. Construction is well advanced on the Branxton Irrigation Water Scheme (BIWS) which will provide recycled water to The Vintage residential golf course at Pokolbin. This $6 million scheme is expected to save at least 200 ML per annum from Hunter Water was on track to meet its Environmental Management Plan target of 8000ML per year recycled water usage by Options reports were completed for 63 areas identified as potential pressure management zones in Argenton, Redhead and Charlestown and the projects were programmed for delivery. iv Integrated Water Resources (H 2 50) Plan Report

9 Water Efficiency Leak detection surveys were completed in an area of approximately 849 kilometres across Newcastle, Braxton and Stockton. With the completion of the Newcastle area, the majority of the water network has been surveyed since the program began. Approximately 6.4 kilometres of small diameter watermains were replaced at an approximate cost of $1.7M, saving an estimated 28.2ML of water. During trunkmain reliability works, a section of pipeline scheduled for renewal was isolated to reduce ongoing leakage. It is estimated that 304ML (365ML annualised) of leakage was avoided by stopping this leak in the period. Compared to previous years, the response and rectification times for watermain leaks were consistent for Priority 1 and 3 jobs, however decreased for Priority 2 jobs. This is likely to be due to an increase (~9 per cent) in the number of Priority 1 jobs, which have constrained the resources available to complete lower priority jobs. Water efficiency programs delivered an estimated 847ML in water savings in , which has increased from the 603 ML estimated in Hunter Water continued with the New Loo for You Toilet Replacement program to target replacement of single flush toilets with new four star WELS rated dual flush toilets. The program was very successful, with 1730 toilets replaced, saving approximately 41 ML/year. Hunter Water continued the school leakage program in , and the number of schools partaking in the program increased to 24 Department of Education and Training schools and 21 schools in the Catholic School Diocese of Maitland/Newcastle. A summary of expenditure on securing the water future of the Lower Hunter and the benefits of that expenditure on increasing reliable supply or reducing potable water demand is included in Section 6.2. Integrated Water Resources (H 2 50) Plan Report v

10 1 Introduction 1.1 Integrated Water Planning at Hunter Water The Operating Licence issued by the NSW government requires Hunter Water to have in place an Integrated Water Resources Plan (IWRP) that responds to the water needs of its area of operations. The Lower Hunter is the sixth largest urban area in Australia and one of the State's major centres of economic activity. Its population is expected to continue to grow as people are attracted by its lifestyle and employment opportunities. Sufficient water supply and drought security is essential to support growth and continue the region s strong contribution to the state s economy. Water security issues were addressed in Hunter Water s H 2 50 Water Plan published in Hunter Water commenced work on the plan to better address climate trends, increased population growth and the need for a higher level of drought security. The plan set out how Hunter Water would meet water demands until 2058, with Tillegra Dam being the key supply strategy (as announced by the NSW government in 2006). Over the past three years Hunter Water has been implementing the H 2 50 Water Plan initiatives, within funding constraints set by IPART. In November 2010, the Minister for Planning announced that the Tillegra Dam proposal would not proceed. NSW Planning's final report supports Hunter Water's long held view that there is a need for additional water supply for the Lower Hunter.: There is a demonstrated need for the augmentation of the Proponent s water supply to address an existing shortfall and to provide sufficient water supply to meet the projected population growth of the Lower Hunter (NSW Department of Planning, 2010, page 48). The decision to not proceed with the dam has rendered the H 2 50 Plan obsolete and created the need to develop a new Lower Hunter Water Plan (LHWP) to ensure there is adequate water for the region s needs both in drought and for the future. The plan is being developed by the Metropolitan Water Directorate of NSW Department of Finance and Services in collaboration with Hunter Water, other government agencies and the community. Once complete, the LHWP will replace Hunter Water s H 2 50 Plan. In the meantime Hunter Water will continue to focus on water efficiency and recycling initiatives outlined in the existing H 2 50 Plan and delivering safe and reliable water and wastewater services to the lower Hunter region. The H 2 50 Plan incorporates the key actions announced by the State Government in 2006 and a number of new water efficiency programs. Integrated Water Resources (H 2 50) Plan Report

11 The key actions outlined in the plan which are still relevant include: New Supply The key remaining action is to upgrade of Balickera Pump Station, to improve Hunter water s ability to extract water from the Williams River during high river flows. Recycling Key recycling actions include a major recycled water scheme for industrial customers in the Kooragang/Mayfield West industrial precincts, development of dual reticulation third pipe recycled water schemes for large greenfield residential subdivisions and ongoing maintenance of existing recycled water programs. Loss Minimisation Actions include maintenance of existing programs and development of a new pressure reduction program to minimise losses from the water distribution system. Water Efficiency Actions are focused on maintenance of existing programs and a large number of new programs aimed at improving water efficiency for residential and business customers. Implementation of the H 2 50 Plan involves investment to maintain existing programs, continue to develop existing commitments and develop and implement new water efficiency programs. 1.2 Purpose of this Report Clause of the Hunter Water Corporation Operating Licence requires that: Hunter Water must report to IPART by no later than 1 September each year on its performance against the Integrated Water Resources Plan. This report presents performance against key actions in Hunter Water s H 2 50 Plan for Prior to the reporting year, the IWRP annual report also reported water demand and supply indicators required under section 9.3 of the operating licence. Clause of the licence allows these indicators to be reported with other environmental indicators. Accordingly, from the indicator reporting requirements under section 9.3 of the operating licence are reported only in the annual report covering Environmental Performance Indicators. Progress against existing water supply and demand reduction commitments, predating the H 2 50 Plan, are outlined in Section 2 of this report. New programs introduced as part of the H 2 50 Plan or in the past reporting year are discussed in Section 3. 2 Integrated Water Resources (H 2 50) Plan Report

12 2 Existing Actions Section 16.1 of the H 2 50 Plan details currently committed projects and programs and proposed actions for their continuation. Progress on these actions is reported below. 2.1 New Supply Development of the proposed 450 GL Tillegra Dam As at 1 July 2010, Hunter Water was awaiting a decision on the development approval for Tillegra Dam. In November 2010, the former NSW Premier announced that the Tillegra Dam proposal would not proceed, following a 14 month environmental and technical review by NSW Planning. Work on the project has subsequently ceased. $24.8 million in project expenditure to date was transferred from capital costs and expensed in the profit and loss statements for , following the decision. This has resulted in expenditure for all H 2 50 projects for the reporting year being negative. It is recognised that the Hunter still has a supply demand imbalance. Working with the Metropolitan Water Directorate and other government agencies, Hunter Water are collaborating on the development of a Lower Hunter Water Plan (LHWP). As the LHWP is a new program, reference should be made to section for further details Capacity upgrade of Balickera Pump Station At the beginning of the reporting year, the project to increase the pumping capacity of the Balickera water pumping station from 1300ML/day to 1800ML/day was progressing, with new pumps commissioned at the end of July Pumping from the Williams River was undertaken during high flows though the reporting year. A number of changes in scope and contractor issues with regards to new standard designs of mechanical and electrical items resulted in delays to commencing the defects period for the pumps. Expenditure on the project was $167,201 during the reporting year. The defects period for the pumps is due to commence in August 2011, with final practical completion expected afterwards. 2.2 Potable Water Substitution Maintain existing recycled water supply As at 1 July 2011 Hunter Water has 16 direct recycled water schemes, as well as onsite wastewater treatment works usage. During , approximately 2258 ML of recycled water was supplied to directly substitute the use of potable water. This is down from last year s 2903ML due to decreased industrial and commercial use. Integrated Water Resources (H 2 50) Plan Report

13 A breakdown of recycled water supplied during the period can be seen in Table 2.1. Table 2.1 Detailed breakdown of recycled water supply Use ML Percentage Total (%) ML Percentage Total (%) Change vs (%) Agricultural extraction from stream flows (indirect farm irrigation) Agriculture - direct farm irrigation Tree plantations Process water at wastewater treatment plants Recycled water enterprises Golf courses & TAFE Industrial reuse Total Reuse Table 2.2 Summary of recycled water supply as per Operating Licence Section applications Use ML Percentage Total (%) ML Percentage Total (%) Change vs (%) Total industrial, municipal and commercial (Industrial & golf courses) Total direct use irrigation (Agriculture direct, tree plantations, recycled water enterprises and TAFE) Uses other than industrial, commercial or direct irrigation (Indirect farm irrigation and WWTW process water) Total Reuse Integrated Water Resources (H 2 50) Plan Report

14 Of the total reuse presented in Table 2.2, 2903 ML was used for potable water substitution in , and 2258 ML was used for potable water substitution in Notable differences in reuse between the year and the year include: Eraring Energy used approximately 150 ML less recycled water on the previous two financial years. This is due to a number of maintenance shut down periods over the year (approximately 8) as well as a period of time in October/November 2010 where reuse had to be limited to 3 ML/day due to critically low dam levels. Oceanic Coal Washery has used approximately 350 ML less recycled water over the reporting year. This is due to algal issues on the recycled water storage pond in July 2010 as well as the construction of the new UV disinfection system and recycled water storage at Edgeworth Wastewater Treatment Works, which limited supply from April Golf course usage has reduced due to the Cessnock Golf Course undergoing refurbishment during the year, with no recycled water used. Recycled water usage monitoring Hunter Water is working towards improving the accuracy of current recycled water usage monitoring. Ideally all sites would be flow metered, which would allow more accurate understanding of recycled water usage. In the coming year, there are plans to install flow meters at Oceanic Coal Washery and Waratah Golf Course to improve data reliability. The accuracy of the various sites data is summarised in Table 2.3. Table Recycled Water Usage Data Accuracy Data Source Data Accuracy Sites Flow meter High Branxton farmer, golf course and woodlots; Eraring Power Station, Kurri TAFE, Paxton woodlot, Cessnock Golf Course. Pump hours run Medium Farley farmer (also based on number and size of pipes), Kurri Golf Course, Waratah Golf Course, Maitland Golf Club, Morpeth farmers, Oceanic Coal Teralba Colliery. Calculated from theoretical models Low Morpeth Trotting, Cessnock farmer, indirect use. In the forthcoming year, Hunter Water also plans to update risk assessments for all current recycled water schemes to ensure that all risks are appropriately addressed. Integrated Water Resources (H 2 50) Plan Report

15 2.2.2 Implement Kooragang Industrial Water Scheme The Kooragang Industrial Water Scheme (KIWS) will transfer 12 million litres a day of treated effluent from Shortland Wastewater Treatment Works to the new Kooragang Industrial Water Plant (IWP) at Steel River. The IWP will further treat this effluent to produce around 9 millions litres a day of recycled water suitable for industrial use. Three million litres of membrane reject will be discharged to the Burwood Beach sewerage catchment in dry weather and the Hunter River in wet weather. The benefits of the KIWS include the substantial replacement of potable water with recycled water for customers in the Kooragang Industrial precinct. This allows Hunter Water to defer by 12 months upgrades at the Grahamstown and Dungog Wastewater Treatment Works. As of 1 July 2010 Hunter Water had completed preconstruction activities including a draft concept design, risk assessment, draft Review of Environmental Factors (REF) and budget estimates. During the year, Hunter Water finalised the concept design of the scheme and the REF. Comments from a NSW Office of Environment and Heritage review of the REF were addressed. A revised procurement method for delivery of the project was decided. Negotiations for a commercial agreement with scheme partners were nearing completion. A Hazard Analysis Critical Control Point planning workshop with NSW Health and Scheme partners was undertaken. Designs for an educational facility have been developed, as part of the Lower Hunter Recycled Water Initiative, as discussed in Section The objectives for KIWS for include: executing a binding commercial agreement for supply of recycled water with scheme partners formally engaging the Hunter Treatment Alliance to undertake turn out cost development of the treatment plant component of the project, and finalising detailed design for the remaining components, including product supply pipelines, river crossing, diversion pipeline and pump station augmentation. Construction of the recycled water treatment plant to treat approximately 3300 ML of potable water replacement per year is scheduled to begin in July of 2012 and will take approximately 23 months to complete. Expenditure on KIWS for the reporting year was $415,500, which was under budget due to the delay in signing the commercial agreement for supply of recycled water with scheme partners Develop dual reticulation schemes for new residential subdivisions Larger-scale residential dual reticulation schemes will provide recycled water to residents in new developments at Gillieston and Chisholm (Thornton North). 6 Integrated Water Resources (H 2 50) Plan Report

16 At Gillieston Heights, potable and recycled water will be provided to approximately 1200 residents in a new development around the existing village of Gillieston. The development is being managed by Mirvac (400 lots), Stockland (200 lots) and a number of minor developers. At Chisholm, potable and recycled water will be provided to approximately 5,000 new homes. During , preconstruction activities continued for the schemes. At the end of the financial year approximately 154 houses had pipework connected in the recycled water development area of Gillieston Heights and 72 at Thornton North for a total of 226 properties to date. Another 204 vacant lots in these areas now have recycled water services in place. Expenditure for the reporting year was $69,562, which was below budget due to slower than expected growth in the district, which has slowed proposed major works by Hunter Water. The timing of both these recycled water initiatives will continue to be reviewed in line with growth rates and strategy outcomes. Connection of pipework will continue in the forthcoming year as lots continue to be developed in the area. Due to slow growth in the area, it is expected that there may be delays in development of the full scheme Assist the further development of recycled water schemes In June 2009, Hunter Water submitted a grant application with the Australian Government Department of Climate Change, Energy Efficiency and Water for partial funding of its recycled water projects under the National Urban Water and Desalination Plan (NUWDP). The NUWDP provides funding to contribute to capital costs of major infrastructure and components for recycling, stormwater harvesting or desalination projects delivered between 2010 and 2014 that improve water security in major urban centres. Hunter Water s application sought funding up to the value of 10 per cent of the capital costs (excluding land) associated with the $89 million Lower Hunter Recycled Water Initiative (LHRWI). On 7 June 2010, Australian Government Minister for Climate Change, Energy Efficiency and Water, Penny Wong MP, announced that Hunter Water s bid for $8.85 million in Australian Government funding was successful. The Australian Government funding will specifically: support the expansion of the Kooragang Industrial Water Scheme (KIWS) from 6 ML/day to 9 ML/day provide an education facility to showcase recycled water and water efficiency to the community, and allow greenhouse gas emissions from the operation of the recycled water projects to be fully offset. On completion, the LHRWI will result in potable water savings of 3,600 ML/year, which is equivalent to 5 per cent of current annual water demand. The greenhouse gas emissions of the LHRWI will be fully offset through investment in greenhouse gas offset projects, saving 3,900 tonnes of carbon emissions annually. Integrated Water Resources (H 2 50) Plan Report

17 A funding agreement for the LHRWI funding was signed by Hunter Water and the Department in February The funding is contingent upon the delivery of specified projects by milestones dates in the agreement, to The scope of work for the LHWRI includes: delivery of the KIWS (as discussed in Section 2.2.2) delivery of The Branxton Irrigation Water Scheme (as discussed in Section 2.2.5) delivery of Gillieston Heights Dual Reticulation Scheme Phase 1 (as discussed in Section 2.2.3) delivery of a program of works in accordance with the Greenhouse Gas Offset Strategy, to offset greenhouse gas emissions from the operation of the LHRWI recycled water projects over the life of those projects. This will include construction of a cogeneration facility at Cessnock Wastewater Treatment Works. delivery on a Community Engagement and Consultation Strategy a purpose built Recycled Water Educational Facility at the Steel River Industrial Water Plant, and delivery of a Water Quality Monitoring Strategy for wastewater discharges from wastewater treatment plants associated with the LHRWI. In the forthcoming year, key milestones for the project will include: Commencement of construction for the cogeneration facility at Cessnock. The cogeneration facility will burn biogas produced as a waste product during the treatment process to generate electricity, reducing the overall energy requirements of the plant and reducing greenhouse gases. Completed construction of the 11 kilometre pipeline that will deliver recycled water from Branxton Wastewater Treatment Works to the Vintage golf course as part of the Branxton Irrigation Water Scheme, which is discussed in Section Review opportunities to expand volumes of wastewater recycled Hunter Water completed a Recycled Water Strategy study in 2007 which identified a number of recycled water opportunities. Subsequently, an expression of interest for recycled water products was called in the Branxton, Farley, Kurri Kurri, Morpeth, Raymond Terrace and Tanilba Bay wastewater treatment work catchments between 2007 and Branxton Irrigation Water Scheme In 2008 Hunter Water signed a Heads of Agreement to supply recycled water to The Vintage golf course, as part of the Branxton Irrigation Water Scheme (BIWS). This will completely substitute the use of water supplies from river sources for the golf course, providing a consistent water supply, as well as significantly reducing Branxton Wastewater Treatment Works requirement for discharge to nearby waterways. By 2013, it is expected that the majority of effluent from Branxton Wastewater Treatment Works will be recycled. 8 Integrated Water Resources (H 2 50) Plan Report

18 During the reporting year, a new treatment plant with membrane bioreactor technology was constructed at Branxton Wastewater Treatment Works. Validation monitoring at the Branxton Wastewater Treatment Works will be completed in mid August 2011 which will allow for completion of the Recycled Water Quality Management Plan. Once this plan has been reviewed and approved, recycled water supply from the BIWS can commence - this is expected to occur by late During the reporting year a new plant with membrane bioreactor technologies was also constructed at Paxton Wastewater Treatment Works. Eraring Energy In 2010 Hunter Water signed an agreement with Eraring Energy to continue to supply recycled water from Dora Creek Wastewater Treatment Works to Eraring Power Station. Clarence Town Effluent Reuse Enterprise Hunter Water is currently constructing a new wastewater treatment plant to service the community at Clarence Town. The new plant is part of the Clarence Town Effluent Reuse Enterprise, a Hunter Water owned fodder irrigation scheme which will utilise 100 per cent of the effluent produced by Clarence Town Wastewater Treatment Works. The Clarence Town Effluent Reuse Enterprise has been developed as part of the recent construction of the Clarence Town sewer network and due to strict limitations on the discharge of treated effluent. The effluent will be reused on-site for growing farm fodder. This plant is expected to be operational by the end of Hunter River Effluent Management Master Plan The Hunter River Effluent Management Master Plan commenced during to develop a long term strategy for effluent management for all of Hunter Water s wastewater treatment plants located within the Hunter River catchment. One of the key objectives is to identify feasible water recycling initiatives in the study area. Outcomes of this investigation will feed into the Lower Hunter Water Plan. The Hunter River Effluent Management Master Plan will be completed in Leakage Reduction Maintain active leakage detection program In general active leakage control initiatives assess the level of leakage through flow monitoring allowing the development of a targeted approach for a leak detection survey. Leaks will occur in any system as pipes age and begin to fail. Without an active leakage strategy the majority of these leaks gradually worsen to a point where they are typically reported by the public. Active leakage control may be considered as an early intervention in this process in that it aims to identify leaks before they would normally be reported. Some leaks may not be visible, and might never be reported, such as leaks that drain to the stormwater system or waterways. Integrated Water Resources (H 2 50) Plan Report

19 Leak detection technology has developed significantly in recent years with the application of acoustic loggers. This has allowed a significant reduction in the time and cost of leak detection by focusing skilled operators (using acoustic listening devices) into areas of known leakage. Hunter Water has been steadily increasing its investment in leak detection surveys since the program s recommencement in The current rolling program involves surveying approximately 20 per cent of the water distribution system each year. The active leak detection program covered 849 kilometres of watermains across Newcastle, Branxton and Stockton. The survey found 365 leaks corresponding to an estimated water loss reduction of 171 ML at a cost of $100,671. The program was packaged into a single contract and combined with improvements in leak detection efficiency was the lowest cost per kilometre of all leak detection projects initiated under this program. With the completion of the Newcastle area, almost the whole of the water network has been surveyed since the program began. The program for will focus on areas scheduled for investigation and areas identified as requiring further investigation from previous leakage surveys. The budget for the period is $250, Maintain water service replacement program For many years, small diameter galvanised iron pipe was used to connect the watermain (in the street or footpath) to the customer s water meter. This part of the water service is owned by customers. Many of these galvanised service pipes have now reached the end of their serviceable life and are deteriorating to the point where they are a source of leakage. While these water services are the responsibility of the property owner Hunter Water has been replacing them at its own cost as a direct leak minimisation initiative. In the previous reporting year, 382 galvanised water services were replaced saving an estimated 73ML at a cost of $282,000. In , 268 water services were replaced saving an estimated 51ML at a cost of $306,875. Whilst down on the previous year, the quantity saved is ahead of the annual 20ML target outlined in the 2008 H 2 50 Plan Maintain watermain replacement program The watermain replacement program targets small diameter watermains (200mm and less) known to leak or having a history of failures. A spreadsheet based economic evaluation model has been developed which compares the cost of continuing maintenance versus replacement. The model also takes account of other relevant factors such as service disruption to customers and the cost of lost water. Water loss from watermain failures can be as high as 750ML per annum and this program, by reducing the number of failures over time, is having a significant impact. In approximately 6.4 kilometres of small diameter watermains were selected for replacement at a total cost of $1.7 million. It is estimated that approximately 28.2ML of water has been saved from this program. 10 Integrated Water Resources (H 2 50) Plan Report

20 The program has been expanded for the reporting year, with an allocated budget of $2 million. In addition to the above program, as part of trunkmain reliability works, a section of pipeline scheduled for renewal was isolated to reduce ongoing leakage prior to the renewal works commencing. Based on flow gauging from the system, it is estimated that 304ML (365ML annualised) of leakage was avoided by stopping this leak in the period. The total cost of the replacement work was budgeted at $1.5 million, with $0.2 million spent to date Maintain response time to known leaks Hunter Water has four classifications for unscheduled water maintenance work ranging from priority 1-emergency to priority 4-routine. The majority of water leaks are given a routine classification and in 2006 the rectification time requirement for this classification was reduced from 14 to six days. A brief definition of each priority classification is presented below: Priority 1 jobs are emergency jobs relating to a complete failure to maintain continuity or quality of supply to a large group of customers or to a critical user at a critical time. The response time for a Priority 1 job is within one hour of notification by the Call Centre with reinstatement of service to be within six hours of notification. Priority 2 Urgent jobs are jobs relating to a failure to maintain continuity or quality of supply to a small group of customers. The response time for a Priority 2 Urgent job is within 3 hours of notification by the Call Centre with reinstatement of service to be within 6 hours of notification. Priority 2 Non Urgent jobs are defined as water leaks which do not affect supply continuity or water quality. The response and reinstatement time for a Priority 2 Non Urgent job is within 3 days of notification by the Call Centre. Priority 3 Routine jobs relate to a non-urgent fault with minimal effect on customers or the environment such as minor leaks on mains and service connections. The response and reinstatement time for a Priority 3 Routine job is within 6 days of notification by the Call Centre. Any improvement to response times results in water savings from breaks and leaks. In , each month an average 99.2 per cent of Priority 1 jobs were responded to in less than 1 hour, 77.4 per cent of Priority 2 jobs were rectified within 24 hours and 98.3 per cent of leaks were rectified in less than six days. In Hunter Water maintained the same classifications for unscheduled maintenance work. Each month on average 84 per cent per cent of Priority 1 jobs were responded to in less than 1 hour, 80 per cent of Priority 2 jobs were rectified within 3 days of notification and 71 per cent of leaks were rectified in less than six days. Compared to previous years, the response and rectification times were consistent for Priority 1 and 3 jobs, however there has been a decrease in performance of Priority 2 rectification times. While the number of Priority 2 jobs has been relative stable an increase (~9 per cent) in the number of Priority 1 jobs is Integrated Water Resources (H 2 50) Plan Report

21 likely to have constrained the resources available to complete lower priority jobs. Further work is required to accurately quantify the impact of response times on water loss volumes. The performance for response time is shown in Figures Figure Priority 1 Jobs Water Response Figure Priority 2 Water Rectification 12 Integrated Water Resources (H 2 50) Plan Report

22 Figure Priority 3 - Water Leakage Rectification 2.4 Residential Water Efficiency NSW Climate Change Fund Home Savers Rebate Scheme The NSW Home Savers Rebate Scheme includes the following rebates aimed at water efficiency: Washing Machine rebate Rainwater Tank rebate Hot Water Circulator rebate Dual Flush Toilet rebate Hunter Water has supported these rebates by advertising on the Hunter Water website. A total of 2307 rainwater tank rebates were given out prior to July 2010 under Hunter Water s rebate and the NSW Climate Change fund rebate. Hunter Water works with the NSW Office of Environment and Heritage to process rebate applications and inspect rainwater tanks with internal connections. Whilst inspection costs are recovered from customers, application processing costs are not. During the reporting year, Hunter Water has specifically focussed on rainwater tank rebates and toilet replacement. A total of 35 washing machine rebates were provided for washing machines bought in year. This is estimated to have saved 1ML/yr assuming a saving of 20kL per washing machine rebate. Integrated Water Resources (H 2 50) Plan Report

23 In , 651 rainwater tank rebates were paid in Hunter Water s area of operations, which is similar to last year. Estimated water savings were 97ML/yr (Office of Environment and Heritage). No hot water circulator rebates were paid in the region in The toilet replacement program and associated dual flush toilet rebate is discussed in Section The NSW Home Savers Rebate Scheme has now ended. Final applications for the rebates are allowed until the end of September Continue community education and awareness programs Hunter Water has developed a diverse community education and awareness program across its area of operations. The program has historically been delivered in partnership with other agencies such as local government, Hunter-Central Rivers Catchment Management Authority (HRCMA), Together Today and Hunter Wetlands Centre Australia. A range of initiatives have been delivered including school and community education programs, events, publications and media campaigns. Together Today Together Today is a group formed to provide the people of the Hunter with simple and practical information on how to take environmental action. Its vision is to establish the Hunter as Australia s most energy, water and waste efficient region by reducing the overall impact on our environment. A not-for-profit co-operative board, represented by foundation and associate members, is responsible for developing and guiding Together Today's strategic direction. Hunter Water continues to be involved in Together Today through membership of the board, business development committee and marketing and communications committee. In Hunter Water actively participated in Together Today engagement activities including Earth Hour and the Energy Town Meeting, held in Newcastle in July In partnership with the Together Today program, Hunter Water ran a water efficiency mass media campaign promoting water saving behaviours over summer, which was delivered via print and radio advertising and the Hunter Water website. Community Education Programs Hunter Water s community education programs in included the Ship O Fools Bubbles & Squirt water education show which was delivered to over 10,000 primary students this year, with excellent reviews and requests for more bookings. Education initiatives were also undertaken on behalf of Hunter Water by Hunter-Central Rivers Catchment Management Authority (HCRCMA) via their Waterwatch Program and active Catchment Crawls with students and Hunter Water staff. The Waterwatch program was established by the Australian Government in It is a national community water quality monitoring network that encourages the community to 14 Integrated Water Resources (H 2 50) Plan Report

24 become involved and active in the protection and management of their waterways and catchments. Waterwatch groups conduct biological and habitat assessments as well as physical and chemical water tests. Primary schools, high schools and community groups participate in the Waterwatch program. An activity under the Waterwatch program is the Catchment Crawl. As part of the Catchment Crawl, particular groups or schools participate in a comprehensive tour and study of their local catchment. The catchment crawl is an effective way for students and teachers to learn more about their local environment and the impacts of urbanisation, farming and other human activities on the environment. In addition to the above activities, Hunter Water ran a water efficiency garden program in conjunction with lower Hunter nurseries, as well as a series of highly successful showerhead exchange days in partnership with lower Hunter councils. Practical water saving education and information was provided by Hunter Water staff via a series of events including the HIA Homeshow, Newcastle Home Show and Tocal Field Days where our staff were on hand to discuss catchment management, our water efficiency residential programs and rainwater tank plumbing and greywater systems. In addition to our range of water saving publications, the Hunter Water website continued to be a key communication and education key tool, receiving 166,588 visits in In a total of $127,000 was invested in community and environmentally focussed sponsorships. Our corporate sponsorship program is a 3-year program. Call for applications for the current program occurred in and the program will end June In Hunter Water will continue to deliver its community education program via a range of channels in partnership with local government, Hunter-Central Rivers Catchment Management Authority (HRCMA), Together Today and Hunter Wetlands Centre Australia. Activities will again include the Ship O Fools Bubbles & Squirt Show, participation in HRCMA s Waterwatch and Catchment Crawl programs, and active participation in the Together Today program, as well as education and engagement opportunities leveraged via our events, sponsorships, publications and website. A total budget of approximately $175,000 is available for support of these initiatives in Continue outdoor/indoor metering trial During the early 1980s the Corporation initiated a metering survey to determine the proportion of water consumed internally and externally in single dwelling domestic properties. The internal use proportion was initially used to calculate the volume of water being discharged to sewer. However, recently the data has been identified as critical for the development of domestic consumption profiles and changes in consumption behaviour in the lower Hunter area of operations. Hunter Water commenced the re-establishment of the survey in To re-establish the project, both the existing participants and a random selection of new customers have been Integrated Water Resources (H 2 50) Plan Report

25 asked to be involved in the project. Approximately 225 customers are now participating in the program. As part of the recruitment process, customers participated in a survey that was designed to develop a profile of water use habits and demographic information about the household. This information, which will be periodically updated, will provide important background information for future analysis of data from the program. The program involves the installation of new water meters that can be read remotely. The meters have a remote meter reading device which can store up to 13 monthly readings. These readings can be collected once a year without entering the property. A financial analysis indicated that rather than using traditional water meters it would be more cost effective to use more modern water meters. The use of this new technology will present Hunter Water with an opportunity to utilise remote meter reading technology that could have wider applications, such as for customers that currently have meters that are in places that are hard to read or present an occupational health and safety risk. The program began in the year 2006 with outdoor meters installed in all 225 participating properties. Results in showed that outdoor residential water consumption was a significant influence on the total system demand trends. In that year, outdoor water consumption represented 23 per cent of total consumption. Hunter Water in conjunction with the University of Newcastle analysed project data collected from 2007 to The key research findings of the analysis were: Indoor usage was reasonably stable throughout the year, whereas outdoor usage was found to be seasonal with more water being consumed in the summer months. Average 2010 per capita water consumption of 194L per capita per day of which 156L or 80 per cent was consumed indoors and 38L or 20 per cent consumed outdoor. This compares with the lower Hunter average per capita daily consumption of 192L/day. It was found that there was a strong correlation between occupancy and indoor water consumption. Consumption on a per capita basis decreased as the number of people within the home increased. However per capita consumption was steady for households with three to five occupants. No correlation between outdoor consumption and occupancy was found. The portion of homes with a rainwater tank doubled between 2008 and 2010, with 23 per cent having a rainwater tank in Water consumption for homes with rainwater tanks was lower when plumbed into the toilet and/or washing machine. No savings were observed for homes with rainwater tanks installed for outdoor water use only. 16 Integrated Water Resources (H 2 50) Plan Report

26 The portion of homes with front loading washing machines almost doubled between 2008 and 2010, with 21 per cent having a front loading washing machine in Households with front loading washing machines used less water than homes with top loading machines. Homes with a swimming pool used significantly more water outdoors than homes without a swimming pool. Homes with irrigation systems used more water than those without. Those homes with an automatic irrigation system used more water than those homes with a manual irrigation system. Cessnock, Maitland and Port Stephens local government areas (LGAs) had the highest variability in summer outdoor usage while Lake Macquarie and Newcastle had the smallest variation. These variations were believed to be a result of the different climatic conditions in each of the LGAs. Outdoor consumption was found to be influenced more by temperature than by rainfall. Property size was not found to have an effect on outdoor water usage. The Project results have allowed Hunter Water to better understand customer s consumption behaviours and identify the factors that influence water use both indoors and outdoors. This information will allow Hunter Water to implement better targeted demand management programs in the future. Expenditure on the program was lower than budgeted due to delays in completed meter reading due to equipment failure. Equipment issues have been subsequently been resolved. Integrated Water Resources (H 2 50) Plan Report

27 Figure Monthly Household Consumption for the Indoor / Outdoor Metering Program Figure Monthly Household Consumption for the Indoor / Outdoor Metering Program As shown by both Figure 2.4 and Figure 2.5, the correlation between the metered residential consumption and the total Hunter Water supply indicates that outdoor residential water consumption is a significant influence on the total system demand trends. It can be seen that total water consumption, consists mostly of indoor water usage. However, during warmer drier months outdoor consumption represents a more significant portion of the total water used. 18 Integrated Water Resources (H 2 50) Plan Report

28 As shown by Figure 2.6, had a marginally hotter and drier summer than However, higher rainfall in during winter and spring resulted in external water demand being suppressed well into early summer. This weather influence resulted in outdoor water consumption in being lower compared to the same period in as shown by Figure 2.7. Figure 3.7 also shows there is a significant increase in outdoor water consumption during February 2011 as a result of high temperatures and lower than average rainfall. Figure Weather Conditions at Williamtown Weather Station Integrated Water Resources (H 2 50) Plan Report