Benefit-Cost Analysis
Many of our clients require analysis to determine the level of efficiency or cost-effectiveness of various programs, plans, or resources. EES Consulting provides benefit-cost analysis for a variety of applications. In particular EES Consulting has specific experience with the federal standards for evaluating benefits and costs of water supply and related resources according to the Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies (March 10, 1983). Resources evaluated under a Principals and Guidelines approach include water supply systems, irrigation pumping, and dams. Other benefit cost studies include evaluation of current and planned fiber optic systems and conservation measure cost-effectiveness.
Los Angeles County Aliso Canyon
EES Consulting, Inc. (EES) was asked by the County of Los Angeles to evaluate alternatives that would mitigate or eliminate the need to withdraw natural gas from the Aliso Canyon storage facility. The facility was used to supply gas during times of peak winter usage as well as to supply natural gas-fired generators during peak summer demand, but was effectively shut down after a massive leak released more than 100,000 metric tons of methane.
EES found that mitigation measures put in place by utilities in southern California to maintain system reliability without the use of Aliso Canyon were working, and that the resumption of injections of natural gas were unnecessary in the near term. In the longer term, the acquisition of demand response, energy storage, and energy efficiency could effectively displace the need for Aliso Canyon. EES also provided a series of recommendations to improve the implementation of the mitigation measures.
Columbia Basin Irrigation Districts
EES Consulting was asked to develop a benefit-based cost allocation framework for capital and operation and maintenance costs for the John Keys III Pump Generating Plant (JKPGP). The plant is part of the Columbia Basin Project which delivers irrigation waters to Central Washington. In addition to providing irrigation water supply, the plant is also used to meet power supply requirements. EES estimated benefits for the project users according to the Principles and Guidelines methodology. The cost allocation methodology was based on project users shares of total benefits.
Garrison Diversion Conservancy District
EES Consulting worked with Garrison Diversion Conservancy District in updating a benefit-cost analysis of the Red River Water Supply Project. The benefit-cost analysis followed the Principles and Guidelines methodology to show that the preferred water supply alternative has the highest benefit-cost ratio and lowest risk compared to the other alternatives.
Lewis County PUD and Chehalis River Basin Flood Authority
EES Consulting has worked with both the Lewis County PUD and the Chehalis River Basin Flood Authority (Flood Authority) in identifying and evaluating upstream floodwater storage facilities in the Chehalis River basin. Due to frequent and damaging flooding in the basin, the Flood Authority and Lewis County PUD asked EES Consulting to conduct feasibility-level analysis of upstream storage options. The most recent study, “Phase IIB,” evaluated two storage options and two conception configurations for each option. One configuration allowed for year-round water storage and summer flow augmentation while the other configuration stored water only during flood events. The benefit-cost analysis consisted of both a Principles and Guidelines analysis and an Alternative Analysis which included additional benefits and costs not typically included in a Principles and Guidelines analysis.
Chelan County PUD
Chelan County Public Utility District (PUD) has invested in fiber to the home (FTTH) infrastructure for most residents in Chelan County. While most residents and businesses currently have access to fiber connections, the PUD was faced with the decision of whether or not to continue investments so that all customers could be connected to the fiber network. In order to evaluate the estimated infrastructure costs, the PUD asked EES Consulting to prepare a benefit-cost analysis of the current and proposed expansion. EES Consulting evaluated the social and economic benefits of the public fiber infrastructure which included rate reductions and service improvements. The results of the study were presented at a public meeting where PUD commissioners could receive feedback from stakeholders and make a decision about further fiber network investments.
