We have worked with both investor- and municipal-owned water and waste-water utilities on regulatory matters such as the appropriate cost of capital, recovery of infrastructure costs, and cost benefits of water plant investments.
Our work has included drought-prone areas in the Southwest and Western U.S., as well as environmentally sensitive areas such as Alaska. We have assisted equity investors to assess the ability of water and waste-water utilities to earn the allowed return on equity, evaluate conditions on mergers or acquisitions, and analyze other factors that may impact the economics of an acquisition.
Because water is exceptionally capital-intensive, the assessment of any water industry investment must consider the need for future capital investments. Evaluating water infrastructure projects also requires careful consideration of safety-related capital expenditures given the environmental impact of both water consumption and waste-water release.