PCWA Board Begins Independent Study to Support Long-Term Water Planning
Auburn, Calif. – At its July 2 meeting, the Placer County Water Agency (PCWA) Board of Directors received the first phase of an independent review designed to better understand the cost of providing water service and support informed, long-term planning for the future.
The review, known as a Cost of Service Study, is being conducted by independent consulting firm Water Resources Economics using industry-standard practices and California law. Public water agencies routinely complete these studies to evaluate the actual cost of providing service and help ensure future decisions are based on objective analysis.
"Every few years, it's important to take an objective look at what it costs to provide reliable water service," said General Manager Andy Fecko. "An independent review gives the Board accurate information to support thoughtful planning."
The preliminary presentation focused on evaluating the costs of providing service to PCWA's different customer classes based on the services they receive and their use of the water system. It marks the beginning of a multi-phase process that will help inform future financial planning.
Cost of service studies are a standard practice among public water agencies. They help ensure water rates are based on the actual cost of providing service and comply with California's Proposition 218 requirements. They also provide an important foundation for transparency, accountability, and long-term financial planning.
The study will be completed in phases. Phase 1 evaluates the cost of providing reliable water service to each customer class. Phase 2, expected to begin later this year, will build on that analysis by evaluating long-term financial needs of the Agency's raw and treated water systems and the revenue required to operate those systems in a financially sustainable way.
If future rate adjustments are recommended as a result of the study, they would be presented through a public process that includes additional Board meetings, customer notification, and opportunities for public participation before any decisions are made.
Following Thursday's discussion, the Board directed staff to continue refining the analysis before returning this fall with the completed Phase 1 study.
PCWA will continue providing updates throughout the process, including educational information explaining how cost of service studies work, how public water rates are developed, and how customers can participate in future discussions.