New Orleans taxpayers lose millions to water loss, report says


The New Orleans Inspector General has issued a report regarding high water losses across the city. He says this is costing taxpayers millions. The Office of Inspector General conducted an evaluation of the Sewerage and Water Board of New Orleans’ policies and procedures regarding water loss control from Feb. 1, 2019, through April 1, 2023. According to the report, the city’s water loss exceeds what is normally expected for a utility. “After reviewing internal documents and published reports, the OIG concluded that the SWBNO experienced water losses far greater than industry averages and did not have comprehensive water loss control policies and practices consistent with best practices,” the report said. Investigators found consistently high levels of non-revenue water.That included water losses due to both infrastructure weaknesses and metering and billing errors, according to the inspector general. Each year for a decade, the water losses were around 70%.Because of the loss of water, the IG found that for the years 2021 and 2022, $19 million in expenditures to treat water was ultimately never billed. The report also states that while the SWBNO utilized intervention activities employed by some other water utilities, it did not adopt many of the best practices recommended by the American Water Works Association or the U.S. Environmental Protection Agency for water loss control programs. The agency recommends an annual water audit to assess the amount of water lost through infrastructure leaks. The IG said that the SWBNO lacked the capability to collect the data necessary to conduct the recommended audits. The report also claims the agency did not have a formal framework for water loss control through which it could evaluate the effectiveness of its water loss intervention activities. The IG says a law was broken as SWBNO officials did not report water losses to the New Orleans City Council on a quarterly basis, as required by state law La. R.S. 33:4091.”As part of the City’s critical infrastructure, the Sewerage and Water Board of New Orleans has a duty to provide safe drinking water to the citizens of New Orleans in a manner that is fiscally responsible and protects our natural resources,” Edward Michel, Inspector General, said. “While the OIG is encouraged that the utility has taken steps towards improving its ability to measure leaks in the system, the lack of a comprehensive plan to evaluate and control water loss impacts the effectiveness of SWBNO operations.”To address these findings, the OIG recommends:• The SWBNO should firmly place its water loss control programs within best practice frameworks, beginning with annual water audits, and dedicate the necessary resources to keep these programs on track over the long term.• The SWBNO should enhance its data collection efforts to ensure it can provide meaningful data in complying with reporting requirements.The S&WB issued the following statement regarding the report: “SWBNO agrees that water loss control is an important course of action, and we are well on our way to implementing the processes, tools, and procedures that will make annual audits a standard practice within the organization. Additionally, our smart metering program will allow us to monitor water use in real-time and give us the tools needed to isolate problem areas so we can more proactively address system breaks in the future.”Notably, the $10.6 million in water lost due to leaks during the last cycle amounts to a replacement cost of a little over two miles of water mains out of our 1,700 total miles of water mains. SWBNO’s current revenue level does not allow for the replacement of water mains at the level needed to address all leaks within the system. “Information about our non-revenue water, as well as other aspects of our challenges and improvements can be found in our quarterly reports to the City Council. Click here to read the most recent report.”

The New Orleans Inspector General has issued a report regarding high water losses across the city. He says this is costing taxpayers millions.

The Office of Inspector General conducted an evaluation of the Sewerage and Water Board of New Orleans’ policies and procedures regarding water loss control from Feb. 1, 2019, through April 1, 2023.

According to the report, the city’s water loss exceeds what is normally expected for a utility.

“After reviewing internal documents and published reports, the OIG concluded that the SWBNO experienced water losses far greater than industry averages and did not have comprehensive water loss control policies and practices consistent with best practices,” the report said.

Investigators found consistently high levels of non-revenue water.

That included…



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