Home » Louisville Water, MSD collaborative expected to save $9.3 million in 2016

Louisville Water, MSD collaborative expected to save $9.3 million in 2016

Creates combined customer service operation

LOUISVILLE, Ky. (Aug. 30, 2016) — A collaboration between Louisville Water and Metropolitan Sewer District (MSD) is expected to provide a benefit to ratepayers at an estimated $9.3 million in 2016, Mayor Greg Fischer and One Water Board announced.

Launched in 2012, One Water combines some elements of the two agencies to increase efficiency and improve services. Key initiatives so far include:

  • Cooperatively identifying and billing accounts that historically were not included in the billing system, resulting in additional recurring revenue.
  • Implementing a combined Customer Service operation for both utilities, resulting in annual operational savings.
  • Implementing a combined Information Technology operation for both utilities, resulting in annual operational and capital savings.

The board also passed a resolution to begin planning for integration of the Communications and Human Resources departments at MSD and Louisville Water.  A plan detailing steps and completion dates will be presented at the October meeting of the board, which is chaired by Ellen Hesen, Fischer’s chief of staff.

One Water will pursue additional initiatives in coming years to achieve benefits for Louisville Water and Louisville MSD customers, including:

  • Pursuing projects at energy-intensive facilities to reduce energy consumption and achieve annual operations and maintenance savings.
  • Implementing a coordinated approach to fleet management for additional efficiencies and savings.
  • Pursuing a One Water solution for disposing of construction material.
  • Implementing combined operations for additional office function areas.

These and other initiatives being developed are expected to increase the cumulative net benefits of One Water to about $15 million annually by the year 2022. The utilities have created cross-functional teams that continue to meet regularly, with the goal of pursuing best practices and efficiencies within their respective areas. Where practical, those will be integrated to provide One Water support and service across both organizations.