Keystone Alliance Consulting conducted a water system valuation in order to provide the Erie City Water Authority and the City of Erie with an independent fair market value to aid in the possible transfer of ownership to the Authority that currently operates the system.

Keystone performed the following services in connection with the valuation study:

• Visited the aboveground facilities of the water system to assess the general condition of those facilities and to verify their remaining useful life.
• Examined the property records to determine the original costs, age and remaining service life of all facilities, whenever possible.
• Developed a water system inventory for all system components.
• Reviewed operating, financial and customer data.
• Developed a cash flow analysis for a 20-year period.

Both the Asset-Based and Income-Based valuation methodologies were applied resulting in a total fair market value in excess of $150 million.