SOURCE: Energy Points

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July 15, 2014 13:00 ET

New Research: U.S. Water Pricing Disincentivizes Investment in Water Savings

Corporations and Residents Risk Depleting Their Water Supply If They Base Water Decisions on Price Alone; Water Utilities and Municipalities Must Look at the Energetic Price of Water

BOSTON, MA--(Marketwired - July 15, 2014) - In the wake of the Department of Energy report, The Water-Energy Nexus: Challenges and Opportunities, the source energy intelligence company, Energy Points, today released new research on U.S. municipal water pricing. The findings are compiled in the white paper, How Not to Price Water. It concludes that U.S. water pricing ignores local water scarcity and is instead primarily based on infrastructure spending, creating disincentive to invest in water efficiency planning and infrastructure.

Current water pricing mechanisms are incapable of driving decision-making that supports the long-term, sustainable supply of water. As such, corporations and residents are at risk of depleting their water supply, if they base water conservation efforts on pricing alone. In How Not to Price Water, the authors write, "Consider that the price of municipal water in Boston, where water is abundant, is over four times what it is in Albuquerque, where water is scarce. Financially, it is clear that saving a thousand gallons in Boston is better than saving a thousand gallons in Albuquerque, but environmentally, the opposite is true." The financially costly consequences of drought and water scarcity are already being felt by businesses across the U.S. Yet most have only anecdotal evidence on which they can drive water conservation efforts. Energy Points' source energy analytics, however, provide physics-based, geospatial analysis that integrates water, energy, and environmental realities on the ground. It provides the insight that businesses need to drive sustainable decision-making around water.

"We have collected data that affirms that organizations put themselves at great risk if they just look at the financial cost of water and ignore its energetic price," says Ory Zik, Energy Points CEO. "We measure water in terms of the energy it takes to sustainably produce, treat, and deliver it. It offers our customers a way to avoid the risk of water shortages. They are able to view their water use in terms of its energetic price, as well as the financial cost, and make better business decisions as a result."

In The Energy Solution to De-Risking Water Supply, Dr. Zik and Energy Points Senior Scientist, Dr. Seth Sheldon, write: "We know that, given enough energy, we can provide water anywhere on earth. Even the most extreme water scarcity can be mitigated, but at a very high energy cost. Therefore, the first thing that organizations (C&I) need to understand is their vulnerability to water scarcity within the context of their total energy exposure." Energy Points offers an undistorted view of water availability. With it, organizations can identify where new infrastructure and better planning are needed.

Download How Not to Price Water

Download The Energy Solution to De-Risking Water Supply

About Energy Points

Energy Points provides Source Energy Analytics software that enables organizations to maximize the energy and financial payback of energy eff­iciency, distributed energy, and water conservation initiatives. It is the only energy management solution that quantifies and analyzes source energy -- measuring electricity, water, fuels, and materials from the source through the site of consumption, while accounting for resource scarcity and environmental impact.

The physics-based, geospatial analytics platform simultaneously achieves the highest level of granularity in energy and environmental analysis and makes it intuitive. Organizations can now strategically diagnose, flag, and address the most energy intensive areas of their supply chain first.

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