Asset Management Page

The Asset Management Page displays the financial analysis of when it makes sense to repair or replace a pump based on the value of energy savings and the repair cost based on the station’s operation history. For more on how these calculations are performed, see this blog post on pump optimization.

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Pump Repair Financial Factors

Annual Discount Rate: Your organization's cost of capital or project hurdle rate – consult with your finance department to determine the appropriate value.

Expected Pump Life: Specify an estimate of how long the pump is expected to last once repaired or replaced.

Average Energy Cost: Specify an estimate of the utility’s average total cost of energy at the pump station including demand and any other charges.

Projected Energy Reduction: Energy savings

Present Value of Energy Reduction: A

Pump Repair Financial Analysis

Repair As: Select the pump make and model with which to replace the current pump. If you intend to repair, rather than replace the pump, choose the current pump’s make and model.

Repair Cost: Specify an estimate of the cost to either repair, refurbish or replace the pump. This should be based on a quote from a pump supplier or repair company.

Specific Energy suggests the following items be included in the quote:

• Pulling the pump and transport

• Replacing impeller and wear rings (if repairing the pump)

• Re-installing pump

• In-situ testing

• All parts, labor, delivery, and travel costs

• Estimate of any additional repairs that may be required based on inspection of the pump.

Recommendations

If the Net Present Value (NPV) and Return on Investment (ROI) are positive for repairing one or more pumps, then the DPO will recommend a repair/replacement.

A positive NPV for a pump repair/replacement means it is cheaper to repair/replace the pump than to keep it in its current state (even if the DPO is currently not using the pump).

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