Water and wastewater systems require significant capital investment and involve complex infrastructure that must be evaluated in the context of regulatory and policy considerations.
In this webinar, Marshall & Stevens professionals discuss how water and wastewater assets are valued, the methodologies applied, and how valuation conclusions are used in rate cases, transactions, and public policy discussions.
Watch Below
Speakers
- Anthony Festa, Managing Director, Machinery & Equipment, Marshall & Stevens
- Juozas Pranckevicius, Senior Manager, Energy & Infrastructure, Marshall & Stevens
- Hosted by Karen Stachowski, Chair, NASUCA Water Committee
Overview of the Discussion
This session provides a practical framework for understanding how water and wastewater systems are valued.
The discussion begins with the scope of assets involved, including physical infrastructure such as pipelines, pumps, and treatment facilities, as well as land, buildings, and intangible assets. The speakers outline how these systems function across their lifecycle—from water sourcing and storage to distribution and wastewater treatment—and how that system complexity is considered in the valuation process.
The webinar then explains how standard valuation approaches—cost, income, and sales comparison—are applied to utility systems. Given limited comparable data and transparency challenges, the cost approach is often emphasized, particularly for specialized infrastructure.
The discussion also addresses key challenges, including aging infrastructure, regulatory pressures, and incomplete data, all of which influence assumptions, methodology selection, and final value conclusions.
What You’ll Learn
- What assets are included in a water or wastewater system valuation
- How fair market value is determined for water and wastewater systems
- When the cost, income, and sales comparison approaches are applied
- How valuation results are used in rate cases, transactions, and policy decisions
Key Takeaways
Water and wastewater valuations involve more than assessing physical assets—they require understanding infrastructure systems, available data, and the regulatory and operational context.
Key insights from the session include:
- Fair market value depends on informed participants, reliable data, and timing
- The cost approach is frequently relied upon due to limited comparable data as well as reliable financial information
- Infrastructure age and condition influence replacement cost and depreciation assumptions
- Regulatory pressures shape financial assumptions and investment decisions
- Valuation conclusions often play a central role in rate-setting and acquisition discussions
Why This Matters
Valuation conclusions for water and wastewater systems play a role for multiple stakeholders, including utilities, regulators, municipalities, and investors.
Well-supported valuations help:
- Support rate cases and regulatory filings
- Inform infrastructure investment decisions
- Evaluate acquisitions and potential transactions
- Inform public policy discussions
Given the importance of these systems and the complexity involved, valuation analyses must be clearly supported and able to withstand review in regulatory and stakeholder settings.
