• LaBella Associates

LaBella's Brian Houston presents Risk-Based Infrastructure Mangement

Brian Houston presented a novel Risk-Based Infrastructure Management approach at the 17th Annual North Carolina American Water Works Association - Water Environment Federation (NC AWWA-WEA) Spring Symposium in Asheville on Monday. The approach he presented, called Capital Efficiency (CapEff for short), uses a customized predictive failure algorithm and monetizes all risks (much like insurers do) to remove and/or clarify subjectivities that are pervasive in widely-accepted points-based approaches. CapEff has several key differentiators from the traditional approach, including:

  • providing the economic life of each asset instead of relying on generic useful life;

  • presenting risk as cost, in lieu of vague point values; and

  • and scheduling replacements rather than only prioritizing them.

This approach is designed to provide an economically-optimized Capital Replacement Schedule. Brian will be giving an expanded version of this presentation at the NC AWWA-WEA Utility Management Committee’s (UMC’s) Asset Management Seminar in Greensboro on April 17. Brian has chaired the UMC since its re-boot in December 2015.

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