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Developing Risk-Based Spending Programs for Pump Stations

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The process for planning Seattle Public Utilities' (SPU) long-range pump station rehabilitation program is based on a methodology of minimizing the life-cycle cost of ownership. Balancing the cost from increasing risk of failure as the pump station assets age against the benefit of delaying capital expenditures results in an optimized and justified timing strategy for pump station rehabilitation. The consistent risk-based economic optimization provides a basis for prioritizing expenditures across asset classes.

The methodology also supports real time repair versus replace decisions for failed assets, as well as pump station upgrade decisions based on capacity constraints and avoided overflows.

Keywords: Risk; capital planning, budget; life-cycle cost

Document Type: Research Article

DOI: http://dx.doi.org/10.2175/193864709793847023

Publication date: January 1, 2009

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  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

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