Utility Rate Studies

Public water agencies are required by law to operate so that their costs are recovered from water sales. Market discipline requires that investor-owned water utilities operate in much the same way, with allowances for competitive returns to their shareholders. We have assisted both public and investor-owned water utilities with critical components of their rate setting, demand forecasting, and resource management functions. This work has been performed throughout California, with particular focus on drought contingencies, conservation, and usage tradeoffs among agriculture, municipal, and other uses.

We have conducted both comparative rate studies and cost-recovery water rate analyses for private and public entities throughout California. Additionally, we have projected municipal, industrial, and agricultural water demands for public and investor-owned water systems in both economically depressed areas and diverse jurisdictions. Water demand functions were developed incorporating population growth, planted acreage, and water prices.