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Capital Improvement Plan (CIP) Prioritization
Project Name
Tulsa Metropolitan Utility Authority (TMUA)
Client
Tulsa, Oklahoma
Location

Advanced Analytics Help Leaders Make Better Investment Decisions on Capital Spending and Maintenance

Every year, utility leaders across the country must answer difficult questions regarding where to spend capital and maintenance budgets. Few have the luxury of a fully funded capital and maintenance program that covers all areas of need. In Tulsa, Oklahoma, the Tulsa Metropolitan Utility Authority (TMUA) is using advanced analytics and improved collaboration to make more informed investment decisions to the benefit of its customers and overcome these challenges.

“Every utility leader must make hard choices when developing annual budgets and programs. Most have a general idea of what programs can be pushed back, but we don’t always have a clear picture of how deferred projects or programs affect our overall risk levels. This process quantifies risk and enables us to prioritize based on our risk tolerances, budget and available resources.”

Joan Arthur, Asset Manager for TMUA

Capital Prioritization

TMUA’s capital prioritization implementation is now in its fourth annual cycle. It has grown from its initial pilot of 55 projects to full analysis of all water and wastewater projects within the 5-year capital improvement plan (CIP). Throughout the program, Black & Veatch has worked with TMUA leaders to build in-house capability with robust business case development, software tools and processes. Now, TMUA is leading the capital prioritization process with Black & Veatch’s support.

The results:

  • The pilot study identified $11 million of cost-saving benefits by delaying 18 projects and maintaining risk tolerance levels. 
  • Year 2 evaluated the full wastewater CIP and identified $48 million in cost savings by delaying projects outside of the 5-year CIP. This also reduced TMUA’s total risk-weighted cost by nearly $8 million. 
  • Year 3 evaluated the full water and wastewater CIP and identified $49 million in cost savings by delaying projects outside of the 5-year CIP. This also reduced TMUA’s total risk-weighted cost by nearly $4 million.

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