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Title: Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory

Abstract

This study introduces an approach using Modern Portfolio Theory (MPT) to consider hydraulic resilience and economic consequence resilience of a water distribution system (WDS) to identify critical assets. ECLIPS (Economic Consequence Linked to Interruption in Providing Service), a way to represent loss of water provision as economic loss, is used to measure economic consequence following a reduction of WDS functionality. The approach is demonstrated using a hypothetical WDS and tested for pipe breakage and replacement scenarios using EPANET hydraulic simulations. First, the correlation between hydraulic resilience and economic consequence resilience was investigated to assess differences between two resilience measures for identifying pipe’s criticality for replacement. The results confirmed the two resilience measures exhibited differing responses (covariance = 0.2), suggesting that use of both would provide complementary insight. Results of the MPT analysis identified the benefits of balancing hydraulic and economic consequence resilience measures to yield lower risk. This study provides a practical approach to incorporate economic consequence into planning, design, and research applications identifying critical WDS assets.

Authors:
ORCiD logo; ; ; ;
Publication Date:
Research Org.:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
1525914
Alternate Identifier(s):
OSTI ID: 1559991
Report Number(s):
PNNL-SA-146055
Journal ID: ISSN 2073-4441; WATEGH; PII: w11061222
Grant/Contract Number:  
AC05-76RL01830
Resource Type:
Published Article
Journal Name:
Water
Additional Journal Information:
Journal Name: Water Journal Volume: 11 Journal Issue: 6; Journal ID: ISSN 2073-4441
Publisher:
MDPI AG
Country of Publication:
Switzerland
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; asset management; pipe replacement prioritization; consequence analysis

Citation Formats

Lee, Seungyub, Shin, Sangmin, Judi, David R., McPherson, Timothy, and Burian, Steven J. Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory. Switzerland: N. p., 2019. Web. doi:10.3390/w11061222.
Lee, Seungyub, Shin, Sangmin, Judi, David R., McPherson, Timothy, & Burian, Steven J. Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory. Switzerland. doi:10.3390/w11061222.
Lee, Seungyub, Shin, Sangmin, Judi, David R., McPherson, Timothy, and Burian, Steven J. Wed . "Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory". Switzerland. doi:10.3390/w11061222.
@article{osti_1525914,
title = {Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory},
author = {Lee, Seungyub and Shin, Sangmin and Judi, David R. and McPherson, Timothy and Burian, Steven J.},
abstractNote = {This study introduces an approach using Modern Portfolio Theory (MPT) to consider hydraulic resilience and economic consequence resilience of a water distribution system (WDS) to identify critical assets. ECLIPS (Economic Consequence Linked to Interruption in Providing Service), a way to represent loss of water provision as economic loss, is used to measure economic consequence following a reduction of WDS functionality. The approach is demonstrated using a hypothetical WDS and tested for pipe breakage and replacement scenarios using EPANET hydraulic simulations. First, the correlation between hydraulic resilience and economic consequence resilience was investigated to assess differences between two resilience measures for identifying pipe’s criticality for replacement. The results confirmed the two resilience measures exhibited differing responses (covariance = 0.2), suggesting that use of both would provide complementary insight. Results of the MPT analysis identified the benefits of balancing hydraulic and economic consequence resilience measures to yield lower risk. This study provides a practical approach to incorporate economic consequence into planning, design, and research applications identifying critical WDS assets.},
doi = {10.3390/w11061222},
journal = {Water},
number = 6,
volume = 11,
place = {Switzerland},
year = {2019},
month = {6}
}

Journal Article:
Free Publicly Available Full Text
Publisher's Version of Record
DOI: 10.3390/w11061222

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