For many water utilities, the first question about smart valves is not how the technology works. It is much simpler: How do we justify the investment?
The answer starts with understanding what utilities are already spending to manage service connections. When the full cost of sending employees into the field is considered, the return on investment for smart valves may come much faster than expected.
Start With the Cost of a Truck Roll
A utility may look at the cost of a disconnect and count only the employee’s time. That leaves out much of the real expense.
Every truck roll can include technician wages, vehicle costs and maintenance, fuel, insurance, scheduling and administrative time. There is also an opportunity cost. While an employee is driving to perform a routine disconnect or reconnect, that employee is not available for other work.
The more often a utility sends crews into the field, the more those costs add up.
This is why calculating smart valve ROI should start with a basic question: What does a truck roll really cost your utility?
Look at the Entire Disconnect and Reconnect Process
The traditional process for a delinquent account can require far more work than simply turning a valve.
A utility creates a work order, schedules a field crew, sends an employee to the service location and manually disconnects the water. The employee then returns to the office. After the customer pays, another trip may be required to return to the location and reconnect service.
That is a lot of time and travel for a routine task.
A smart valve changes the process. When service needs to be disconnected, the utility can operate the valve remotely. Once payment is received, service can also be restored remotely.
The truck rolls disappear from the process, along with many of the costs that come with them.
The Number of Disconnects Matters
There is no single ROI calculation that works for every utility.
Bobby Barker’s ROI presentation uses examples ranging from a small utility performing about 25 disconnects each month to a medium utility performing 200 and a large utility performing 1,000. The greater the number of service calls that can be handled remotely, the greater the opportunity to reduce operating costs.
This also means utilities do not have to think about smart valves only in terms of a system-wide deployment. The business case can begin by identifying the service connections that create the most field activity.
A smaller, targeted deployment can put smart valves where they have the greatest opportunity to eliminate repeat truck rolls.
The Value Does Not Stop With Non-Payment
Disconnects and reconnects make ROI easy to understand because utilities can count the trips they avoid. But they are not the only situations where remote valve control can create value.
The same technology can support move-ins and move-outs, leak response, emergency shutoffs and service for seasonal residents. Each time a utility can safely handle a task remotely instead of sending an employee to the site, the valve has another opportunity to create value.
That is important when calculating payback. A smart valve may be purchased for one reason but used for several.
Faster Service Has Value Too
ROI is not limited to reducing operating costs.
Remote control can also improve customer service. A new customer may receive same-day service activation without waiting for a field appointment. A customer who has paid an overdue bill can have service restored immediately instead of waiting for a crew to become available.
Removing scheduling delays can make the process easier for both the utility and its customers.
So, How Quickly Can a Smart Valve Pay for Itself?
The answer depends on the utility.
Start by determining how many disconnects, reconnects and other service calls are performed each month. Then calculate the full cost of those truck rolls, not just direct labor. Compare that cost with the number of field visits that could be eliminated through remote valve control.
For utilities with frequent service activity, the savings can build quickly.
More importantly, the calculation can reveal something that is easy to overlook: the utility is already spending money to perform these tasks. Smart valves offer a way to redirect that spending toward a more efficient process.
The business case is not simply about buying new technology. It is about reducing operating costs, improving customer service and helping a limited workforce spend more time on the jobs that truly require someone in the field.
