Economic Analysis of Appomattox River Water Authority’s 10-Year Capital Planning Program
![](https://optimise2.assets-servd.host/hazen-sawyer/production/projects/economic-analysis-of-appomattox-river-water-authoritys-10-year-capital-plan/arwa_brasfield_dam.jpg?w=1920&auto=compress%2Cformat&fit=crop&dm=1634918743&s=9607c8cb9a04218dff1c55dc450ca6a0)
Hazen and Sawyer’s key tasks were to: (1) Develop and run a financial model for evaluating the 10-year CPP; (2) Identify “equitable and reasonable” principles for allocating CPP capital and O&M costs among the five shareholder jurisdictions and estimate wholesale price impacts to each of those jurisdictions; and (3) Evaluate alternative financing methods including establishing of a reserve fund to determine impact on wholesale water rates over the planning period.
![Alan Karnovitz, MPP](https://optimise2.assets-servd.host/hazen-sawyer/production/people/Karnovitz_Alan.jpg?w=160&h=160&auto=compress%2Cformat&fit=crop&dm=1637346548&s=6ce356dcb5c98090f92b9e68509fedaa)
Alan Karnovitz serves as Group Leader for Hazen’s Economic and Financial Services Group.
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Project Outcomes and Benefits
- Our financial evaluation allowed the Authority to fully consider the financial impacts of a broad array of CPP project configurations and alternative cost allocation methods to better optimize its decision process.
- Financial evaluation, based on recommendations of the engineering study, determined that the Authority would be better served by deferring the addition of a new transmission line for at least 10 years, reducing the net present value of debt service cost by about $3.5 million over the CPP planning period.