Efficient operation of a city water supply system is an important goal of all municipalities. Efficient operation should result in minimum operation cost through reduction in total energy use and/ or reduction in on‐peak energy consumption. An optimization model was designed for operating the water supply systems of cities using groundwater. The Newton‐Raphson pipe network was used for network analysis and a dynamic programming optimization algorithm was used for determining a schedule for pump operation in the pipe network system. The model is most suitable for use in small cities with up to 45,000 in population, but with large‐scale disintegration techniques may also be used for larger cities. The savings in operation costs are a function of energy cost and energy use pattern and water use pattern in the area.

Construction of a "peaking storage tank" may reduce the operational cost of municipal water in the availability of a time-of-use energy rate. A peaking storage tank is used for storing water that is pumped from wells or other sources of supply during off-peak periods when energy costs are less for use during periods of on-peak water demand. The optimal size of a peaking storage tank is that which results in the minimum total cost, which includes both the storage construction cost and the cost of operation of the pumps. The operational cost for a given time-of-use rate is determined by help of a pipe network simulation model solved by the Newton-Raphson technique and a dynamic programming optimization model. A more simplified method is also introduced. Analyses show that low off-peak energy costs make the construction of peaking storage tanks economically attractive and reduce on-peak energy use, which results in electrical load leveling.(KEY WORDS: pipe network, peaking storage tank, water supply, time-of-use, dynamic programming, Newton-Raphson.)

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A large‐scale simulation/optimization model provides schedules for operation of water and power for the California State Water Project (SWP). The SWP consists of a series of reservoirs linked by rivers, pumping plants, canals, tunnels, and generating plants and is operated by the California Department of Water Resources. The Department provides water to municipal and agricultural users, and manages its electrical loads and resources. The model, therefore, performs hydraulic and electrical computations leading to optimal operation of the entire system. It consists of hydraulic network programming components to meet the storage objectives at all the reservoirs, a linear programming component to determine the schedules at pumping and generating plants, an electrical network programming component to balance electrical loads and resources, and a number of other simulation components. It operates on yearly, weekly, and daily bases. It is primarily used for real‐time operation of the SWP and can provide hourly detail schedules which are implemented by the SWP staff via a computerized system.