The state of California is uniquely challenged in its delivery of water, sewer, and stormwater services. Drought and mandated conservation have created uncertainty in both short-term and long-term water supplies. FG Solutions has over 13 years of experience and a unique knowledge base to guide clients successfully through the highly dynamic circumstances that define this state.
Water, sewer, and stormwater services are intertwined
Recycled water and effluent recharge blur the lines between wastewater disposal and water supply. Stormwater capture blurs the lines between water supply and stormwater.
FG Solutions provides: A single point of contact with water, wastewater, and stormwater expertise.This means an efficient project team with the right experience. We understand the linkages among the utilities and can defensibly allocate costs
Historically used water supplies are scarce
The drought has increased concerns that State Water Project supplies will not be available.
FG Solutions provides: Feasibility evaluations that appropriately consider costs, risk, and implementation considerations. We work to provide communities with the details and information to make good decisions. We prepare interlocal agreements that are necessary for obtaining water supplies and services.
Water consumption patterns are changing
Conservation resulting from the drought observed has impacted utility revenues.
FG Solutions provides: Analysis of water use data on an account-by-account basis to project how revenues change in light of tiered rate structures and seasonal water use patterns. Accuracy of projections is improved, and financial risks to utilities are lowered.
Utility ratemaking practices are changing
The San Juan Capistrano decision requires cost-substantiated rate tiers. Because of conservation resulting from the drought, water utilities have seen a sharp decrease in their revenues. These factors are spurring utilities to rethink their rate structures.
FG Solutions provides: Budget-based rates experience that allows utilities to implement a rate structure that many customers consider easy to understand and more equitable. We leverage our engineering experience to create defensible cost-based rate tiers. We can articulate how fixed costs can be recovered from fixed charges, and discuss the trade-offs between revenue stability and affordability.
Customers demand transparency
The public understands water supply issues and demands accountability and information from their utility purveyors and elected officials.
FG Solutions provides: Staff that are experienced at successfully presenting to utility staff, utility management, elected officials, and the public.
Proposition 218
California law requires notification of all proposed water and wastewater rate increases, and establishes a protest procedure that can lead to a public vote. Further, fees charged for a service cannot exceed the cost of providing the service.
FG Solutions provides: Defensible rate calculations that are documented in our rate models and included as appendices in our reports.
“More than ever, defensibility and transparency are critical to successful utility management in California”