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Q2
2016
Waterside Chat: Industry One on One Interview
How have recent events at Flint, MI impacted your business?
Consumers are seeking peace-of-mind over the quality and safety of their drinking water now more than ever. As a result of the Flint,
MI, lead problems, we are seeing more lead testing conducted by cities, schools, institutions, and individuals. In light of the indictments
coming down in Flint, we are also seeing regulators act with more scrutiny of nearly every operator action or inaction on water systems.
I expect to see more regulation imposed for public transparency, testing, and operational oversight before we are through. Nearly all
drinking water actions are being looked at through a lens tinted by the Flint crisis.
How does Severn Trent view their organic vs acquisition growth initiatives?
Over the past few years we have focused on portfolio rationalization, and have sought to shed ourselves of underperforming contracts.
We are opportunistically looking at bolt-on acquisitions that could leverage our existing business. We are also seeing increasing interest
from industry to operate their water and wastewater assets, as they turn their attention to their core business.
Is there anything else that you would like to talk about or emphasize?
We are in the midst of a substantial business improvement initiative in our North American business. We have complemented our
existing staff with several new and capable additions and we are set to transform our business for our customers. We aim to be the
most trusted O & M provider in the market.
How is technology impacting your business and the industry?
While the trend has been occurring for some time, automatic meter reading (AMR) is providing greater insight into non-revenue water
(NRW) by detecting leaks and usage as well reducing the cost of meter reading. Along with AMR, we are also seeing an increased use of
GIS (geographic information systems) to map system assets, document problem hotspots, and predict future failures. Computerized
maintenance management systems (CMMS) and data management systems (DMS) help to manage asset lifecycle costs, and to assist in
process control.