Public-private partnerships (P3s) are a method of alternative procurement for government infrastructure projects. Rather than following the traditional design-bid-build process in which each procurement step is separately contracted for by a government agency, two or more of those steps are combined for improved efficiency and risk transfer. The result is a procurement method that is generally faster and less expensive for delivery of infrastructure projects. Continue Reading »
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I have been asked several times in the past few weeks whether California mutual water companies are authorized to transfer water to non-shareholders at a profit. It appears some activists have begun arguing that California Public Utilities Code § 2705 prohibits mutual water companies from making money on water transfers. This challenge is part of a broader opposition to water transfers in the state, based on a public policy concern that some individuals are profiting from selling water, which is a public resource. As I explain below, § 2705 does not prohibit mutual water companies from transferring water to non-shareholders at a profit, and California law generally supports the right of any water rights holder, mutual or otherwise, to sell water for financial remuneration. Continue Reading »
Posted in Mutual water companies, Private investment, Private v. public, Public utilities regulation, Water companies, Water markets/transfers, Water rights | 2 Comments »
Over the past decade, urban water utilities in California have sought to adopt rate structures that combine, to the extent possible, the goals of financial stability and incentives for efficient water use. This is often accomplished through shifting a relatively larger proportion of costs from fixed service charges to variable commodity rates, dividing commodity rates into multiple tiers with each tier for higher use bearing a higher rate, and disincentivizing the use of urban water supplies for irrigation. A recent California Court of Appeal case, City of Palmdale v. Palmdale Water District, Case No. B224869, tested the intersection of such rates with the primary restriction on public agency water rates, Proposition 218. The result: a moderate collision, with potential for a future pile-up. Continue Reading »
Posted in Economics of water, Water conservation | Leave a Comment »
Last week, the U.S. District Court for the Eastern District of California (Judge Wanger) issued a decision in Tehama-Colusa Canal Authority v. U.S. Department of the Interior, Case No. 1:10-cv-0712 OWW DLB (August 2, 2011), holding that Central Valley Project (CVP) contractors in the Sacramento Valley are not entitled to an area of origin priority over contractors in the San Joaquin Valley (see general area map below). This decision is the latest in a long series of disputes between north-of-Delta and south-of-Delta contractors, with the U.S. Bureau of Reclamation (USBR) in the middle as owner of the CVP. Continue Reading »
Posted in California, Water markets/transfers, Water rights | 1 Comment »
The City of San Antonio has been one of the fastest growing urban areas in the United States for over a decade, and providing water security for the city has required the development of new water supplies. The San Antonio Water System (SAWS) was historically dependent on groundwater supplies from the Edwards Aquifer, but has sought to diversify its water asset portfolio through conjunctive use of imported surface water and groundwater supplies. One of those efforts involved an agreement with the Lower Colorado River Authority (LCRA), under which SAWS would fund certain agricultural conservation and groundwater development projects in the Colorado River Basin and in exchange would receive a portion of the conserved water for up to 80 years. The proposed transaction was similar to large agricultural conservation-based transfers from the Imperial Valley to San Diego, California and from northern Victoria to Melbourne, Australia in recent years. Unlike those transfers, however, the proposed LCRA-SAWS transaction faltered before it even began. Continue Reading »
Posted in Texas, Water markets/transfers | 3 Comments »
I am pleased to share details about an upcoming conference on public-private partnerships (P3s) for infrastructure in California. The one-day event is being organized by the National Council for Public-Private Partnerships and will examine the basics of P3s, the legal framework in California, practical advice on how to implement a P3 and some good case studies of past projects. The conference will be held at the Portofino Hotel in Redondo Beach on September 9, 2011. Continue Reading »
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I have received many comments and questions on my earlier post about California Mutual Water Company Basics. In order to protect the privacy of questioners, I have responded to most individually rather than on this blog. In the belief that there may be value in providing answers to some of the most frequently asked questions here, this post elaborates on a few issues regarding mutual water companies. Continue Reading »
Posted in Mutual water companies, Public utilities regulation, Water companies | Leave a Comment »
