Other Utilities Industry Terminology

Advanced Metering Infrastructure (AMI)

A system of smart meters, communications networks, and meter data management that enables two-way meter communication for automated reads, remote connect/disconnect, time-of-use rates, leak alerts, and analytics.

We’re rolling out AMI to replace 50,000 manual-read water meters; AMI reads revealed continuous flow at night, triggering a leak alert; The commission approved AMI cost recovery in the GRC

American Water Works Association (AWWA)

Professional association that sets widely adopted standards and best practices for drinking water utilities, including design, operations, safety, and water quality.

Specify valves per AWWA C509; We benchmarked staffing using the AWWA utility survey; Operators earned AWWA backflow certification

Annual Revenue Requirement (ARR)

The total annual revenue a regulated utility must collect to cover operating expenses, depreciation, taxes, and an allowed return on rate base.

Our ARR increases 4% due to higher debt service; The rate case recalculates ARR with updated WACC; ARR shortfalls risk violating bond covenants

Asset Management Plan (AMP)

A strategic plan aligning service levels, risk, and lifecycle costs, including an asset registry, condition/criticality assessment, renewal strategy, and funding plan.

The AMP prioritized a 12-inch AC main for replacement; Council adopted the AMP to justify the 10-year CIP; ISO 55000 principles underpin our AMP

Automatic Meter Reading (AMR)

One-way meter data collection (drive-by or walk-by) that automates monthly reads but lacks two-way control found in AMI.

AMR cut meter reading time by 70%; We’re moving from AMR to AMI; RF interference degraded AMR accuracy in dense housing

Backflow Prevention

Devices and programs that prevent reverse flow from customer premises into the potable system, protecting against cross-connection contamination.

Install a RPZ backflow preventer on the boiler feed; Annual backflow test notices were mailed to customers; The cross-connection survey found missing backflow protection

Biosolids

Treated sewage sludge that meets regulatory criteria for land application, composting, or disposal; classified (e.g., Class A or B) under EPA 40 CFR Part 503.

We upgraded digestion to produce Class A biosolids; Biosolids hauling costs rose with diesel prices; The landowner paused biosolids application pending PFAS tests

Bond Covenant

Legal obligations in revenue bond agreements (e.g., rate covenants, reserve requirements, coverage ratios) that utilities must honor.

The rate ordinance ensures 1.5x debt service coverage per covenant; Breach of a bond covenant triggers technical default; Counsel reviewed covenant language for the new issuance

Build-Operate-Transfer (BOT)

Project delivery model where a private entity designs, finances, builds, and operates a facility for a term before transferring ownership to the public authority.

The waste-to-energy plant was procured as BOT; BOT shifted O&M risk to the concessionaire; Lenders required minimum offtake guarantees under the BOT

Capital Expenditure (CapEx)

Spending on long-lived assets such as pipes, pumps, treatment plants, and IT systems; capitalized and depreciated over useful life.

Pipe bursting is CapEx-eligible under SRF; We’re smoothing CapEx via a multi-year CIP; CapEx deferral increases long-term risk

CIPP (Cured-In-Place Pipe)

A trenchless rehabilitation method where a resin-impregnated liner is inserted and cured inside an existing pipe to create a new structural pipe within.

CIPP extended the sewer’s life by 50 years; We specified UV-cured CIPP for small-diameter mains; Bypass pumping was required during CIPP

Clean Water Act (CWA)

U.S. law governing water pollution, establishing NPDES permits, water quality standards, and TMDLs for surface waters.

The WWTP upgrade ensures CWA compliance; Our MS4 permit derives from the CWA; CWA penalties were assessed for unauthorized bypasses

Combined Heat and Power (CHP)

Onsite generation of electricity and recovery of useful heat, often integrated with district energy systems to improve overall efficiency.

CHP supplies steam to the campus loop; The payback improved after a CHP grant; We sized CHP to follow thermal load

Consent Decree

A court-enforceable settlement with regulators that outlines corrective actions, schedules, penalties, and reporting to resolve violations.

The CSO consent decree mandates green infrastructure; Missed milestones can trigger decree penalties; Rates fund projects under the decree

Customer Information System (CIS)

Core utility system for customer accounts, billing, rate configuration, collections, and service orders, often integrated with AMI and CRM.

We’re migrating the CIS ahead of AMI deployment; CIS integration enables real-time leak notifications; Tariff changes must be configured in the CIS

Decoupling

Regulatory mechanism that breaks the link between volumetric sales and revenue, stabilizing utility finances and supporting conservation.

Revenue decoupling stabilized cash flow during drought; The PUC approved a water decoupling pilot; Decoupling adjustments appear on customer bills

Depreciation

Accounting allocation of an asset’s cost over its service life; reduces rate base and affects revenue requirement and earnings.

Accelerated depreciation reduces near-term earnings; Expense rose after placing the new plant in service; We updated service lives in the depreciation study

District Energy System

Centralized production and distribution of heating and/or cooling (and sometimes power) through a network of pipes to multiple buildings.

The hospital joined the district cooling network; Peak shaving uses chilled-water storage; Rates recover capital for system expansion

District Metered Area (DMA)

A discrete network zone with measured inflows/outflows used to manage pressure, monitor losses, and target leak detection.

Night flows in DMA 14 flagged a leak; We rebalanced pressures across DMAs; NRW audits are reported by DMA

Ductile Iron Pipe (DIP)

A durable and strong ferrous pipe commonly used for potable water and force mains; often specified with corrosion protection.

Specify zinc-coated DIP in corrosive soils; DIP joints must meet AWWA C151; We replaced cast iron with DIP along Main Street

Effluent

Treated wastewater discharged to surface waters or reused for irrigation, recharge, or industrial processes.

Effluent meets new ammonia limits; Advanced treated effluent supports aquifer recharge; We monitor effluent turbidity continuously

Energy-from-Waste (EfW)

Technologies that convert municipal solid waste to energy via combustion, gasification, or anaerobic digestion, reducing landfill volumes.

EfW offsets landfill methane; The P3 includes an EfW facility and MRF; Tipping fees underpin EfW project finance

Enterprise Asset Management (EAM)

Software and processes to manage assets, maintenance, work orders, reliability, and inventory across their lifecycle.

We implemented EAM to track pump failures; EAM-GIS integration improved locational accuracy; KPIs from EAM support the AMP

Environmental Protection Agency (EPA)

U.S. federal agency regulating water, wastewater, air, and waste; issues rules (e.g., SDWA, CWA) and funds infrastructure programs.

EPA issued the PFAS proposed rule; We won an EPA WIFIA loan; EPA audits verified LCR compliance

Fats, Oils, and Grease (FOG)

Substances that can accumulate in sewers, causing restrictions and blockages; managed via pretreatment and education.

FOG inspections target restaurants; A FOG spill caused a sanitary overflow; We launched a residential FOG outreach program

Fixed Charge Coverage Ratio (FCCR)

Financial metric indicating how well cash flow covers fixed charges like debt service; often required by bond covenants.

Our FCCR must stay above 1.5x; Rate increases improved the FCCR; Forecasts show FCCR pressure as debt ramps up

Force Main

A pressurized sewer pipeline that conveys wastewater from a pump (lift) station to a gravity sewer or treatment plant.

A force main rupture triggered an SSO; Surge analysis is required for the new force main; We upsized the force main to handle growth

Full-Cost Pricing

Rate-setting approach that recovers all O&M, capital, environmental, and reserve costs, avoiding intergenerational subsidization.

Full-cost pricing supports asset renewal; The council adopted phased full-cost pricing; Affordability programs accompany full-cost rates

General Rate Case (GRC)

A formal regulatory proceeding to determine a utility’s revenue requirement, rate base, and rate design for a multi-year period.

The GRC filing included a new rate design; Intervenors challenged the testimony; The decision authorized multiyear rates

Geographic Information System (GIS)

Spatial database and mapping platform for assets, networks, customers, and work management.

GIS maps all valves and hydrants; We linked CIS and GIS for addresses; GIS supports hydraulic model calibration

Green Infrastructure

Nature-based stormwater solutions (e.g., bioswales, rain gardens, permeable pavements, green roofs) that reduce runoff and improve water quality.

Green infrastructure reduces CSO volumes; The consent decree credits green projects; We compared lifecycle costs of green vs gray

Groundwater Recharge

Managed replenishment of aquifers via infiltration basins or injection wells, often using advanced-treated effluent or stormwater.

Recharge basins capture stormwater; The project uses advanced treated effluent; Permitting for managed aquifer recharge is underway

Horizontal Directional Drilling (HDD)

A trenchless construction technique to install pipelines under rivers, roads, or rail with minimal surface disruption.

HDD avoided open-cut across the river; Geotech data is critical for HDD success; We selected steel pipe for the HDD segment

Hydraulic Grade Line (HGL)

Profile of hydraulic head along a pipe or channel; used to verify pressures, avoid cavitation, and design tanks/PRVs.

Maintaining HGL prevents negative pressures; The model shows HGL below tank overflow; We plotted HGL to size PRVs

Inflow and Infiltration (I&I)

Stormwater (inflow) and groundwater (infiltration) entering sanitary sewers, consuming capacity and increasing treatment costs.

Wet-weather I&I causes SSOs; CCTV surveys target I&I sources; The rehab program reduced I&I by 25%

Integrity Management

Risk-based program to assess, prioritize, and mitigate pipeline threats (e.g., corrosion, third-party damage) per regulations.

HCAs drive integrity management priorities; We scheduled inline inspections under the plan; MAOP reconfirmation is part of integrity management

ISO 55000

International standard providing a framework and terminology for asset management systems and practices.

We aligned our AMP with ISO 55000; Certification was a board goal; Training covered ISO 55000 principles

IT/OT Convergence

Integration of information technology systems with operational technology (SCADA, PLCs) to enable secure real-time data and control.

IT/OT convergence enables analytics from SCADA; Cyber protocols were standardized across IT and OT; The CIO leads our convergence roadmap

Joint Use Agreement (JUA)

Contract that governs shared use of poles, ducts, conduits, or corridors by multiple utilities, setting fees, standards, and responsibilities.

The JUA sets attachment fees; We negotiated a JUA with the telecom provider; Safety clearances are defined in the JUA

Key Performance Indicator (KPI)

Quantifiable metric used to gauge performance against targets for reliability, quality, safety, finance, and customer outcomes.

Main breaks per 100 miles is a KPI; We report KPIs quarterly to the board; KPI dashboards come from EAM data

Lead and Copper Rule (LCR)

EPA rule that limits lead and copper in drinking water through corrosion control, sampling, public notification, and service line replacement.

We updated the LCR sampling plan; Lead service line inventory is an LCR requirement; The PWS exceeded the LCR action level

Leak Detection and Repair (LDAR)

Program to locate and fix leaks in water or gas systems using acoustic, correlator, smart meter, or sensor methods.

Acoustic LDAR cut NRW by 2%; We prioritize LDAR in high night-flow DMAs; LDAR reduced methane emissions on the gas network

Lift Station

A pump station that raises wastewater to a higher elevation for gravity conveyance; also called a sewage pumping station.

SCADA alarms monitored the lift station; We replaced pumps at the Cedar station; Backup power is critical for lift station resilience

Main Replacement Program (MRP)

Planned renewal of aging distribution mains, sequenced by risk, condition, and consequence of failure, often funded by bonds.

The MRP targets 1% of mains annually; Risk scoring prioritizes the MRP; Bond proceeds fund the MRP

Maximum Allowable Operating Pressure (MAOP)

The maximum pressure at which a gas pipeline may legally operate, established via design, testing, and records per PHMSA rules.

Records gaps required MAOP reconfirmation; We derated MAOP pending hydrotests; MAOP exceedance alarms are configured

Maximum Contaminant Level (MCL)

Regulatory limit for specific contaminants in drinking water to protect public health under the SDWA.

PFAS MCLs will tighten compliance margins; We violated the nitrate MCL last quarter; Treatment upgrades ensure MCL adherence

Materials Recovery Facility (MRF)

A plant that receives, sorts, and bales recyclables from municipal solid waste or single-stream collection.

The MRF added optical sorters; Contamination rates strain MRF operations; MRF tip fees vary with commodity markets

National Pollutant Discharge Elimination System (NPDES)

Permit program under the CWA regulating point-source discharges, including WWTPs and municipal stormwater (MS4).

Our NPDES permit sets ammonia limits; Stormwater NPDES requirements drive BMPs; We appealed a compliance schedule in the NPDES

Non-Revenue Water (NRW)

Water produced but not billed due to real losses (leaks), apparent losses (meter error, theft), and authorized unbilled use.

NRW fell from 28% to 20% after LDAR; We conduct annual AWWA water audits to quantify NRW; Pressure management is part of our NRW strategy

Operating Expenditure (OpEx)

Ongoing costs to operate and maintain utility services (labor, energy, chemicals, contracted services), distinct from CapEx.

AMI reduces OpEx for meter reading; We balanced OpEx and CapEx in rate design; Chemical OpEx rose with supply chain inflation