Financial Feasibility
EES Consulting can evaluate the overall technical and economic viability of nearly any project. For new resources, we perform conceptual design and engineering, including site selection, equipment selection and layout, performance estimates, capital and O&M cost estimates. The availability and price of water, fuels, and electric transmission capacity are assessed. We also assess environmental impacts and regulatory constraints to development. Finally, we assess alternative ownership structures and provide full pro forma financial statement projections of long term plant economic performance. Similar studies are performed to support due diligence efforts concerning acquisition, retrofitting, or sale of existing facilities.
At EES Consulting, we can assist in acquisition financing and permitting for projects. In conjunction with the feasibility studies described above, we prepare engineering letters in support of official statements. We develop capital budgets and cash flow projections, along with O&M budgets, including the impact of overhauls and performance degradation. We perform due diligence reviews of existing projects, including assessment of plant operations, organization, and potential performance improvements. We prepare environmental impact statements; air and water related permit applications, as well as prepare and defend applications in front of all levels of governmental energy permitting agencies.
Truckee Meadows Water Authority
Truckee Meadows Water Authority (TMWA) is a joint powers authority formed to acquire the water utility previously owned and operated by the Sierra Pacific Power Company (Sierra). With the assistance of EES Consulting, TMWA purchased water rights, storage, treatment, distribution and hydroelectric facilities from Sierra to serve approximately 75,000 customers in the Reno-Sparks metropolitan area.
EES Consulting’s involvement in this utility acquisition began prior to the formation of TMWA and continued through the transition of ownership. EES Consulting staff served as the lead consultant and overall project manager for the acquisition. As part of these roles, EES participated in and coordinated financial, engineering and operational due diligence efforts, developed an initial business and operating plan for TMWA, negotiated a series of transition services agreements to ensure a seamless transfer of ownership for the newly acquired TMWA customers and employees, provided expert witness testimony in the regulatory approval process in support of the transaction and authored a Financial Feasibility Study and met with rating agencies, bond insurers and institutional investors in support of TMWA’s initial $450 million bond issue.
City of Shoreline
The City of Shoreline (the City) has entered into a verbal Agreement with Seattle Public Utilities (SPU) to purchase SPU’s water facilities inside the City boundaries in the year 2020. Currently water service is provided to the City residents directly by SPU. The acquisition will allow the City to operate the water utility on behalf of its residents. Prior to finalizing the purchase agreement, the City conducted due diligence on the acquisition and put the issue up for a city-wide vote. As part of the due diligence, the City retained EES Consulting to provide three inter-related analyses. The first was an Engineering Review to assess the SPU assets that are included in the acquisition, develop operating costs and procedures for the new utility, and develop the short-term and long-term capital needs of the utility. The second piece was a long-term financial analysis to determine the projected revenues and costs associated with operating the water utility, along with the associated financial risks. The final component was the development of a Business Plan to address how the tasks and responsibilities required of the new water utility will be carried out. The vote of the residents resulted in 2/3 approval for proceeding with the acquisition.
