Water Utility

Valor Water Analytics Acquired by Water Giant Xylem

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We are excited to announce that Valor Water Analytics (Valor) was recently acquired by industry leader Xylem Inc (NYSE: XYL). Xylem is a $13B water technology company that services utility and commercial clients across 150 countries.

Dr. Christine Boyle founded Valor in 2013 with a mission to bring big data solutions to water utilities in order to improve their financial and water resource sustainability. To accomplish this, Valor created a suite of world-class software products. Valor’s products are now deployed in ten states across the USA, including notable utilities such as American Water and Suez. Its “Hidden Revenue Locator” product is widely recognized as a best-in-class technology for automated loss detection. The company remains committed to integrating its technology with all meters across the US and beyond. Valor will now execute on this ambitious vision under the Xylem umbrella.

The alignment of Valor and Xylem in product and vision made this acquisition the right strategy for Valor’s next stage of growth. Under Xylem, Team Valor continues and will spearhead Xylem’s Silicon Valley branch and lead Xylem’s advanced data science initiatives. Valor’s product lines will join Xylem’s existing suite of advanced analytics products. This exit demonstrates the value of building an innovative water technology that brings measurable value to the water sector.

Valor had previously raised $2.8M from investors such as the Urban Innovation Fund, Y Combinator, 500 Startups, Apsara, Hydro Venture Partners, Shore Ventures, Syzygy, and Matadero Ventures. These investors supported this exit and are excited for the next chapter of Valor.

Valor is looking forward to solving the world’s water issues as part of Xylem’s world-class team of dedicated water professionals.

How Dashboards Helps Decision-Makers at Water Utilities

How Dashboards Helps Decision-Makers at Water Utilities

By Renee Jutras, Full Stack Developer

Data has become part of the way we tell stories today. Online articles use maps and graphs to add a splash to their stories because, as they say, “a picture is worth a thousand words”. And it’s true - a well thought out data visualization can convey much more information than just a description, and let the viewer draw their own conclusions about the information. The difference between a clear positive trend and a potentially coincidental trend is instantly recognizable on a graph.
Dashboards take graphs even further by adding organization and interactivity. The best dashboard helps you continuously monitor whatever your pain points are while giving you the power to explore your data visually as freely as possible.

In order to take water utilities further into the future, better technology is needed. Valor Water Analytics’ dashboards put vital information at the fingertips of the decision-makers at utilities, so that they can start to make actionable decisions based on their data.

Mind The Data Gap

There is a lot of talk about Big Data these days, and if you are anywhere near Silicon Valley, it is more like a deafening roar. As important and difficult as Big Data is, we are also working to solve challenges of a different sort that gets relatively little attention: what we call Diverse Data. The key distinction between Big Data and Diverse Data is how structurally similar one piece of data is to another.

How Can Utilities Cope With Mounting Financial Challenges?

Water utility financial practices are constantly evolving. According to Dr. Christine E Boyle, the optimal strategy for each utility to meet challenges successfully is to minimize risks associated with external changes and to increase internal financial resilience.

Rate changes are often used by utilities as a way to cope with financial problems. Budget-based rates, also known as individualized rates, have emerged as a way to meet efficiency, cost-recovery, and social equity goals (Mayer et al, 2008). Valor Water Rate Simulator helps utilities understand revenue profiles and plan strategy and visualize the impact of new rate structures like budget-based rates, peak set rates and customer select rates, and has been successfully leveraged by utilities in California and South-East USA.

In addition to rate adjustment, efficient water use can also be important in minimizing risk and building financial resilience.

The cycle of the conservation - revenue resilience is presented below:

  1. Conserving water allows utilities to cut operation and maintenance costs and defer expensive supply expansion projects.
  2. As conservation policies go into effect, the seasonal fluctuation of water use decreases, resulting in more stable customers use and associated customer sales.
  3. Reducing seasonal use eases the pressure to supply water during peak seasons and also helps achieve revenue stability.
  4. Minimizing costs and stabilizing revenue are help utilities strengthen their financial and credit standing with rating agencies. This is a major shift from previous views in which conservation was evaluated as a credit weakness that would result in decreased revenue.

To read the full article on Adapting to change: Water utility financial practices in the early twenty-first century, click here. 

We welcome your comment and questions. Feel free to contact us at [email protected]

Using Big Data to Improve Water Utility Revenues with Valor Water President Christine Boyle

Dig deeper into Valor Water through The Water Values Podcast!

During this episode, you will learn more about:

  • How Christine started Valor Water
  • The University of North Carolina’s water program
  • The four platforms Valor Water has commercialized for utility revenue
  • Using software to find anomalies in the water distribution system
  • “Real losses” from the water distribution system
  • Using software to identify customers with potential payment problems
  • How Valor Water identifies and segments customer classes for messaging about bill payment and cut-offs
  • Using software to assist utilities with rate optimization and climate change planning
  • “Stress testing” utilities for climate change scenarios
  • Using software for conservation planning
  • Meter fleet management applications
  • The different data points and types that Valor Water uses
  • How Valor Water helps utilities “unleash the power of their data”

When Big Customers Make Big Changes

Valor Water Analytics recently built Non Residential Customer Sales Dashboards for four utilities in North Carolina. Read about the project’s Plateau Analysis and how these utilities are putting findings into action on project partner University of North Carolina’s Environmental Finance Center blog, here: When Big Customers Make Big Changes.

Untangling Public Benefits of California’s Prop. 1

On November 4, 2014, California voters overwhelmingly approved Assembly Bill 1471, Water Quality, Supply, and Infrastructure Improvement Act of 2014, more commonly known as Proposition 1 or the Water Bond. This bill unlocked $7.12 billion in bond funds to pay for water projects throughout the state. Many aspects of the bill were written in rather general language, and this and subsequent pieces aim to unravel key elements of the bill.

Excellent descriptions of the full bill have been written by the Association of California Water AgenciesSPUR, and the Legislative Analyst’s Office, as well as others.