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Cost of Services and Water Budget Rate

Water system financial security now and into the future

Palm Springs, California

Coachella Valley Water District (CVWD) services 1,000 square miles in California’s palm desert, delivering irrigation and domestic (potable) water, collecting and recycling wastewater, managing stormwater, and importing water to replenish its groundwater basin. When CVWD wanted to complete a cost-of-service and rate design study, they brought in our team to get the numbers.

CVWD’s goal was to fund their long-term needs while making sure costs were allocated proportionally among customers. Using our water budget model to better understand the current and anticipated effects of an ongoing drought, we created a clearer picture of CVWD’s situation.

Our team and CVWD staff collaborated on a group of recommendations including eliminating separate rates in a series of service areas (a legacy from historical acquisitions) and merging three separate replenishment programs into one, strengthening each the replenishment fund for future revenue challenges.

With this information in hand, Coachella Valley Water District can now explore design solutions to mitigate their risks and reduce financial burden. As they move forward with their upgrades and changes, we’re helping them stay on track with California’s challenging and still-emerging legal requirements, and we’re working together to make sure the changes minimize the impact to the local economy. 

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