Water System Valuation of American Water (New York) for the Service Area of East Massapequa for the Massapequa Water District (2020)

Walden completed a Water System Valuation Study to support the Massapequa Water District’s decision-making regarding a potential acquisition of an adjacent private water system. The District’s interest in the system includes approximately 5,800 customers, three (3) wells, one (1) booster pump station, one (1) above-ground storage tank, and below-ground supply/transmission lines, water mains, approximately 400 hydrants, and service line connections.  The engineering and water system assessment included a service area demand and production analysis in addition to a determination of costs.  The Water System Valuation and Appraisal process included four (4) different methods as required by the District: Asset (Cost) Method; Income Method; Market (Comparative Sales) Method; and Rate Base Method.  The Asset (Cost) Method utilizes Original and Replacement Cost information and the determination of Replacement Cost New Less Depreciation (RCNLD) values for the assets. The District has found that public ownership of the water utility assets can result in lower cost, better water quality and better resiliency for the community.


Posted on

April 27, 2021