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Contr olling Appar ent Losses—Capturing Missing Revenue and Data Integrity       163




                                                Replacement every 0.35 million gal (5 yrs)
                               Cost of meter replacement  Replacement every
                                                   Replacement every 0.7 million gal (10 yrs)
                                                       Replacement every 1 million gal (15 yrs)




                                             1.4 million gal (20 yrs) Replacement every
                                                              1.75 million gal (25 yrs)

                                       Apparent losses due to customer meter
                                            under-registrations (MGD)

                    FIGURE 11.4  Cost curve for meter replacement programs. (Source: Ref. 7.)

                       When setting an apparent loss reduction target there exists a breakeven point,
                    beyond which the effort to control the apparent losses costs more than the likely recov-
                    eries. In this case, further apparent loss control effort is not economic to pursue. This is
                    the ELAL, or the optimum target of apparent losses to seek. The ELAL for customer
                                                              7
                    meter inaccuracy is shown graphically in Fig. 11.5.  In this figure, the meter replacement
                    cost curve is matched against the cost recovery line, which reflects the savings gener-
                    ated by apparent loss recovery. A third curve is generated by adding the two values and
                    plotting, thus a curve of total annual apparent loss cost is derived. The ELAL for appar-
                    ent loss due to meter inaccuracy is found by taking the level of loss at the minimum
                    point of this curve, as shown in Fig. 11.5. The optimum level of apparent loss reduction
                    at the ELAL is determined by reading back off the apparent loss reduction cost curve.
                    For apparent losses due to customer meter inaccuracy, the optimum frequency of meter
                    replacement can be determined by selecting the point on the meter replacement cost
                    curve that matches the minimum point of the total cost curve.
                       In setting out to generate a particular curve, the economic analysis should start by
                    determining the volume and cost value of the most significant sources of apparent loss.
                    For each apparent loss component, it is necessary to analyze the problem and determine



                                 Cost of apparent loss reduction  and value of recoverable loss  Value of recoverable apparent loss
                                         Where the total cost is at a minimum
                                           economic level of apparent loss








                                                      Cost of apparent loss reduction

                                                     Losses (MGD)
                    FIGURE 11.5  The economic balance for an apparent loss reduction solution. (Source: Ref. 7.)
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