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    Surcharge Rate Updates... : Avoid Undercharging (Or Overcharging) Your Industrial Users

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    Surcharge Rate Updates... : Avoid Undercharging (Or Overcharging) Your Industrial Users

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    nawajha
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    Download as pdf or txt
    19 views30 pages

    Surcharge Rate Updates... : Avoid Undercharging (Or Overcharging) Your Industrial Users

    Uploaded by

    nawajha
    ff

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Surcharge Rate Updates...

    Avoid Undercharging (or Overcharging)


    Your Industrial Users
    Jerald O. Thaler, PE
    FISHBECK, THOMPSON, CARR, & HUBER INC.
    AGENDA
     Background
     Methodology for Updating Surcharge Rates
     Case Study
     Discussion

    IPP Seminar - 2015


    BACKGROUND

    IPP Seminar - 2015


    STRENGTH SURCHARGES
     Utility wastewater billings to industrial users can include:
     Service charge
     Volume charge
     Strength surcharge
     Strength surcharges used to recover costs to treat more
    concentrated wastes
     Strength surcharges are not penalties or fines, and do
    not replace enforcement for limit exceedances

    IPP Seminar - 2015


    APPLICABILITY
     Strength surcharges generally focus on:
     BOD5
     TSS
     Total P
     Ammonia-N (or TKN where appropriate)
     Not recommended for FOG
     Not appropriate for toxics

    IPP Seminar - 2015


    HISTORY
     Strength surcharges began in 1972 with Clean Water Act
     Part of construction grant requirements
     Intent was to recover O&M costs
    due to industrial users
     Exclude non-O&M costs (depreciation,
    debt service, etc.)

    IPP Seminar - 2015


    STRENGTH SURCHARGE BASIS
     Threshold concentration (mg/L)
     Surcharge rate ($/lb)

    Example
    Assume 200 mg/L threshold and
    $0.50/lb rate. If user discharges
    0.015 MGD at 400 mg/L:

    IPP Seminar - 2015


    THRESHOLD CONCENTRATIONS
     Should represent median-to-high domestic waste
     Typically set based on literature values, but can use site-
    specific background data if available:

    IPP Seminar - 2015


    SURCHARGE RATES
     Should represent treatment cost difference between
    high strength waste and normal domestic waste
     May be inaccurate (high or low) if not specific to the
    POTW and/or not based on current O&M costs
     Traditional calculation methods
     Survey of other POTWs
     General rule-of-thumb
     Estimated distribution factors

    IPP Seminar - 2015


    METHODOLOGY FOR UPDATING
    SURCHARGE RATES

    IPP Seminar - 2015


    OPTION A -- SURVEY OF OTHER POTWs
     Wide range of values
     Unknown when/how calculations performed
    Example

    IPP Seminar - 2015


    OPTION B – GENERAL RULE-OF-THUMB
     Standard factors to distribute the total O&M cost
    → What is a “standard” POTW?
     Origin unknown; most likely came from USEPA

    IPP Seminar - 2015


    OPTION C – ESTIMATED DISTRIBUTION FACTORS
     Generally developed for a particular POTW
     More complicated to apply and keep current
    Example

    IPP Seminar - 2015


    OPTION D (NEW) -- COMPUTER SIMULATION
     Run O&M costing software with increasing pollutant load:
    5 5
    4 4
    3 O&M Cost 3

    lb/day

    $/day
    2 Software 2
    1 1
    0 0 1 2 3 4
    0 0 1 2 3 4

     Plot incremental O&M cost vs. incremental load to yield


    $/lb rate: 5

    3
    $/day
    2

    1 slope (Δ$/Δlb) = surcharge rate


    0
    0 1 2 lb/day3 4

    IPP Seminar - 2015


    O&M COSTING SOFTWARE
     1970s EXEC (U.S. Environmental Protection Agency)
    Executive Digital Computer Program for Preliminary Design of
    Wastewater Treatment Systems
     1980s CAPDET (U.S. Army Corps of Engineers)
    Computer Assisted Procedure for the Design and Evaluation of
    Wastewater Treatment Systems
     1990s CAPDET-PC® (Hydromantis, Inc.)
    Rewritten version of CAPDET for personal computers
     2000s CapdetWorks® (Hydromantis, Inc.)
    Updated CAPDET-PC for Windows

    IPP Seminar - 2015


    CAPDETWORKS® FEATURES:
    Fast, friendly, and accurate
    Powerful
     Models for typical wastewater unit operations
     Models for typical biosolids unit operations
     Steady-state mass balance analysis (with recycle streams)
     Automatic cost index updates
     Highly detailed O&M cost data

    IPP Seminar - 2015


    CASE STUDY

    IPP Seminar - 2015


    LAKEWOOD WASTEWATER AUTHORITY
     Rural facility with very large industrial component:
     50% of flow
     95% of BOD5 load
     75-85% of other compatible loads
     Unique design
     Dissolved Air Flotation + Oxidation Ditch
     Biosolids storage lagoon (no disposal)
    → Definitely not a “standard” POTW

    IPP Seminar - 2015


    PERFORMANCE/COST DATA
     Pollutant Removals:

     O&M Costs:

    IPP Seminar - 2015


    OPTION A – SURVEY OF OTHER POTWs
     Based on most recent survey of Michigan POTWs:

    IPP Seminar - 2015


    OPTION B – GENERAL RULE-OF-THUMB
     Based on factors for “standard” POTW:

    IPP Seminar - 2015


    OPTION C – ESTIMATED DISTRIBUTION FACTORS
     Based on example:

    IPP Seminar - 2015


    OPTION D – COMPUTER SIMULATION

    CapdetWorks®

    IPP Seminar - 2015


    CURRENT O&M COST BREAKDOWN

    IPP Seminar - 2015


    COST VS. LOAD PLOTS

    IPP Seminar - 2015


    COST VS. LOAD PLOTS

    IPP Seminar - 2015


    RESULTS SUMMMARY

    IPP Seminar - 2015


    PERSPECTIVE
     Strength surcharges key component of O&M cost recovery
     Strive to have appropriate surcharge rates
     If undercharging, lose justifiable revenues
     If overcharging, may harm local economy
     Traditional calculation methods vary in accuracy/complexity
     Computer simulation method accurate, straightforward,
    and relatively inexpensive

    IPP Seminar - 2015


    Thank You
    Jerald O. Thaler, PE
    E-mail: [email protected]
    Office: (517) 887-4080
    Cell: (248) 207-1710

    FISHBECK, THOMPSON, CARR, & HUBER INC.


    LIST OF ACRONYMS & ABBREVIATIONS
     Ammonia-N ̶ ammonia, as nitrogen
     BOD5 ̶ 5-day biochemical oxygen demand
     FOG ̶ fats, oil, and grease
     IPP ̶ industrial pretreatment program
     lb ̶ pound
     mg/L ̶ milligrams per liter
     MGD ̶ million gallons per day
     MWEA ̶ Michigan Water Environment Association
     O&M ̶ operating and maintenance
     POTW ̶ publicly owned treatment works
     TKN ̶ total Kjeldahl nitrogen
     Total P ̶ total phosphorus
     TSS ̶ total suspended solids
     USEPA ̶ U.S. Environmental Protection Agency

    IPP Seminar - 2015

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