Companion files · The Water Infrastructure Investor

The Water Infrastructure Investor

Utilities, Treatment Plants, Desalination and Water Rights: How Private Capital Finances the Most Essential Infrastructure.

Julian R. Sterling

These are the companion files of the book. One workbook rebuilds the two assets the book follows: Pell River Water Company, a fictional state-regulated water and wastewater utility that a core infrastructure fund buys at 1.60x its rate base, and Sorrel Bay, a fictional 150,000 m3 a day seawater desalination plant bid as a build-operate-transfer project. For the utility it builds the capital plan, PFAS and lead line programs, every rate case, the DSIC, earned against authorized return, debt, bills and affordability, the buyer's flows, IRR and price at the target return. For the plant it builds the capital cost, the capacity charge solved for the equity return, sculpted debt, the wet year under take-or-pay, the Authority's levelized cost and the public financing alternative. A second file holds the diligence checklists of Appendix B in editable form. No sign-up, no email is asked for, nothing is locked. Amounts are in US dollars; blue type is an input, black type is a formula.

The files

• Chapters 1 to 15 · Appendix A

  Water_Infrastructure_Investor_Model.xlsx

  One Inputs sheet holds every assumption, the scenario switches and the definitions of the book's sensitivities. Utility runs Pell River year by year from 2027 to 2037: rate cases on a test year, the DSIC between cases, rate base, debt, earned return and cash to the shareholder. Deal turns that into the fund's flows, IRR, price at the target and the exit table. Sorrel Bay runs on four sheets: plant and capital cost, operations and debt service from 2030 to 2059, financing with a visible bisection that solves the capacity charge, and the Authority's view. Then the Fennick purchase and concession, the reclaimed water contract, water rights, credit, bills, the diligence bridge, a Scenarios sheet that reruns the model for each sensitivity, and a Checks sheet that sets 474 figures the book prints beside the cells that compute them.

  Download the workbook353 KB

• Appendix B

  Water_Infrastructure_Diligence_Checklists.docx

  Screening a water utility, reading a rate case order, asset condition and operations, PFAS and lead programs, BOT and water purchase agreements, desalination technical diligence, industrial water contracts, and commission approval. Edit them for your own deal.

  Download the checklists39 KB

Three numbers to reproduce first

The price	Brannock pays $1,840 million for Pell River, 1.60x the $1,150 million rate base, and expects a levered return of 8.06 percent if it sells at the same multiple in 2037; the price that gives exactly 8.0 percent is $1,845 million
The tariff	Sorrel Bay sells water at $1.72 per m3 delivered in 2030 ($2,118 per acre-foot), of which $1.09 is the capacity charge solved for an 11.00 percent pre-tax equity return
The risk	If the customer-side lead cost had to be expensed, the levered IRR would fall to 6.72 percent; O&M inflation of 4.0 percent moves it by only 0.02 points, because the next rate case passes it to customers

The files are provided as they are, without warranty of any kind. The model is illustrative: Brannock, Pell River, Corliss, Fennick, Sorrel Bay, the Tidewell Regional Water Authority, Kestle, Halcyon Ridge and Northvale Digital are fictional, and the figures are the book's assumptions, not market statistics or forecasts. Regulatory mechanics are case assumptions; rules differ by state and change. Nothing here is investment, legal, tax, accounting or engineering advice.