PM Network - June 2016

“If you don’t
have good
project
going to
deliver good
results.”

—Mark Strauss,
American Water,
Voorhees, New Jersey, USA

Voorhees, New Jersey. Larger utilities like American Water benefit from having the resources to invest in projects—and the project managers to ensure successful planning and execution.

The organization has a five- to 10-year project roadmap that prioritizes regulatory compliance and customer reliability projects. “That drives the vast majority of our project decision-making,” Mr. Strauss says. Building a project roadmap is a fairly common process for large utilities that need to align their regulatory compliance, upgrade and maintenance projects with anticipated budgets.

Smaller utilities often lack the resources and strategic planning expertise to plan far in advance.

Because his team is accountable to customers
and the state regulatory commission for capital
expenditures, it has to be vigilant about meeting
budget and schedule goals on all projects, from
leak fixes to major new infrastructure. This is
especially true when a project is tied to a water
price increase. In those cases, Mr. Strauss’ team
has to develop a strategic plan that describes all
year in upgrades, in exchange for a 40-year lease
to operate and maintain the water and wastewa-
ter system. Early projects include cleanings and
inspections via remote video cameras of water and
sewer mains, and installation of new water meters
to expedite the discovery and repair of leaks.

But compared to other parts of the world, PPPs remain fairly novel in the U.S. That means most municipalities will keep waiting for WIFIA or other funds to arrive. If they do secure federal financing, Ms. Leiby emphasizes the importance of detailed planning and reporting on how funds are spent. “There will likely be a lot of scrutiny for projects that do receive funding,” she says. “Careful reporting will be key.”

Planning at Scale

In terms of both capital project funding and execu-
tion, it helps to be a larger water utility, says Mark
Strauss, senior vice president of corporate strategy
for American Water, an investor-owned U.S. water
and wastewater utility company headquartered in
theEdge

Above It All
The world’s largest aircraft is prepared for takeoff.

n The Airlander 10 was originally developed as a surveillance craft by the U.S. Army. n After plowing US$154 million into the project, however, the organization abandoned the project in 2013. n It was designed to fly at speeds of 92 miles (148 kilometers) per hour.

n It can stay above ground up to two weeks unmanned. n A private equity firm has breathed new life into the aircraft—with commercial benefits in mind.