7.
.
Brief resume of Key Person, Specialists, and Individual Consultant Anticipated for this Project.
Name & Title:
William W. Wade, PhD
President
g.
b. Project Assignment:
Water Resource
Economics & Finance
c. Name of Firm with
which Associated
Energy and Water
Economics, 39 Public
Square, Columbia TN
d. Years experience:
With This Firm:
10
With Other Firms:
27
e. Education: Degree(s)/
Year/Specialization:
PhD/1973/Resource and
Applied Economics;
MS/1971/Agricultural
Economics; BS/1963/English
& Journalism
f. Active Registration:
(Year First Registered/
Discipline)
Other experience and qualifications related to the proposed project:
Dr. Wade specializes in issues related to environmental resources and water policy,
single-family residential water users. Dr. Wade worked throughout much of 2002working with executives, lawyers, engineers, and scientists on multidiscipline
2003 on the Tennessee Valley Authority’s Reservoir Operations Study, conducting
regulation, litigation, and planning projects. He has 33 years’ experience managing
the economic analysis of alternative TVA operations.
and conducting financial and economic evaluations of policies and decisions bearing
on natural resources and infrastructure. Since 1986 he has conducted hundreds of
From 1998-2001, he worked on issues related to the ACF/ACT Water Supply
studies on various aspects of water supply problems, including tradeoffs between
disagreement developing NED and RED benefit estimates for Atlanta water supply
protection of instream fisheries, habitat and recreation values vs. consumptive use
reliability and Lake Lanier recreation usage. From 1995 to 1999 he led a team of
and residential reliability values. He pioneered the use of supply reliability valuation
economists forecasting visitation and evaluating amenity options to implement the
and the estimation of reliability values during the California Drought of 1987 – 1991.
$300 million recreation master plan for Diamond Valley Reservoir, Riverside County,
These techniques are a standard part of Least Cost Planning in the water industry
CA, which opened in 2000.
today. Dr. Wade’s Cost of Industrial Water Shortages, November, 1991, done for
California Urban Water Association remains the industry standard analysis of large
In California he presented testimony at SWRCB Bay-Delta Hearings on supply
industrial water users and industry-specific water conservation and
shortage costs before CPUC and CA Legislative Committee on
Key Selection Criteria:
reuse. The report can be found at energyandwatereconomics.com.
water rates to induce conservation by private water agencies, and
 Extensive financial
presented information on drought impacts to California economy to
For the last three years, 2007 – 2009, Dr. Wade has been involved in
economic analysis
Associated California Water Agencies Drought Hearings, and other
four large and forthcoming lawsuits involving the values of surface water
experience
forums. Other water agency clients include: TVA, Santa Clara
and groundwater used for agricultural, municipal and industrial water
 Demand side price
Valley Water District, California Urban Water Agencies, California
supplies. Work in these lawsuits has relied on standard methods of
elasticities and benefit
Water Association, Los Angeles Department of Water and Power,
resource valuation as required in federal guidelines at 43CFR11.83 and
estimates experience
USBR, CDWR, Army Corps of Engineers and Duck River
WRC, Principals and Guidelines. Part of this work is described in a 2008
 Extensive water supply
Development Agency.
article,“Valuation of Water Supplies in Eastern Watershed Conflicts and
Planning,” Eastern Water Law and Policy Reporter, v. 3, no. 8,
August/September 2008.
& recreation planning
experience
 Abundant government
agency experience
Throughout much of 2006, Dr. Wade worked for a group of western
United States urban water agencies to estimate indoor and outdoor
demand curves, derived indoor and outdoor price elasticities and
evaluate the effect of various pricing policies aimed at reducing water use among
STANDARD FORM 255 (REV. 11-92)
Representative projects include the following:
Valuation of Contaminated Groundwater serving a small
community in Virginia, 2009. Following federal guidelines from 43
CFR11.83 and Principles and Guidelines, a contaminated drinking water supply was
valued to support a lawsuit for damages. Leachate from the local County landfill,
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7.
Brief resume of Key Person, Specialists, and Individual Consultant Anticipated for this Project.
migrate into the groundwater supply causing it to be replaced with sharply higher
public water supply. A manufactured housing community of 450 people and the
owners of the property incurred significant economic costs. These losses were
estimated and explained to a jury in a local circuit court, which brought a decision for
the plaintiff. ($115,000)
State of MS v. City of Memphis, 2007 – ongoing. (>$200,000) State of Mississippi
sued City of Memphis because City water agency (MLGW) has caused the State’s
groundwater from the Memphis Sands to cross the border for decades. The annual
amounts of water has been estimated by hydrologists. Dr. Wade, together with Dr.
Brian Roach, has used standards methods of economic valuation to estimate the
demand curve for water and determine the values for the annual amounts of water
lost by State of Mississippi. Trial was set for February 2008 when sua sponte
Federal District trial judge decided that matter as an interstate issue and gave up
jurisdiction.
Demand Estimates, Price Elasticities and the Effect of Price policies on
Future Single-family Residential Water Use, confidential, 2006 - 2007: The
estimation of empirical water demand curves has progressed in the last ten
years such that price signals can support agency policies aimed either at
reducing demands or increasing revenues. Price signals can to be used to
better manage water use. Indoor and outdoor price elasticity is estimated
in this project to allow agency management to predict the effect of price
increases on indoor and outdoor residential water use. The work is on the
frontier of economic knowledge, 2006. (<$100,000)
Evaluation of Water Supply Alternatives to meet City of Franklin Future
Demand, Harpeth River Watershed Association, 2006. (<$20,000)
Evaluation of Piney River Alternatives to Meet Water District Demand,
confidential, 2005. (<$15,000)

Each of these two projects entailed supplementing and correcting
existing engineering analyses to correct shortcoming, apply
probabilistic effects of dry season raw water supply availability, and
upgrade the project economic feasibility analysis per se. The Piney
River analysis became the basis for a presentation at the 2006
TNAWRA Water Resource Symposium, “ARAP and the economics
of Piney River Supply Planning.”
STANDARD FORM 255 (REV. 11-92)
Effect of increasing Hispanic population on California outdoor water
recreation preferences and facility needs, 2005.
Evaluation of Environmental Benefits of Hetch Hetchy Dam Removal, 2005.
Evaluation of Effect of SFPUC Water Supply Improvement Plan on San
Francisco Bay Area Water Supply Reliability, 2005. (<$100,000)
During much of 2005 Dr. Wade conducted sequential research projects aimed at
evaluating the effect of removing the source of northern California’s major water
supply reservoir, Hetch Hetchy, to restore the valley to its pristine environmental
glory. These studies were aimed at various elements to understand the
environmental and recreation benefits gained and the water supply reliability values
lost by such a policy. Part of this work became an article last year, “Achieving
Reliability and Sustainability in Water Supply Planning,” California Law and
Water Policy Reporter, October 2005.
Economic Impacts of Reservoir Operating Alternatives, TVA, 2002 – 2003. To
re-evaluate its 10-year operating plan, TVA formulated seven final
alternatives to manage reservoirs and flows in the rivers of the Tennessee
Valley to achieve different policy options. Alternatives were formulated to
maximize power, maximize recreation, mimic nature, achieve flood control
and navigation targets. Recreation effects were measured in terms of the
ripple effects of recreation spending at the system reservoirs for different
recreators classes. Dr. Wade evaluated each of the alternatives in terms of
the economic impacts to the region. ($175,000)
Effect of Water Supply Allocations on Value of Republican River Watershed
Agricultural Production and Reservoir Recreation, State of Nebraska, DNR,
2002 & revised in 2003. This project entailed a number of deliverables
aimed at the agricultural production values affected by allocations of the
Republican River flows between Nebraska and Kansas. Recreation usage
of reservoirs and the Republican River were reviewed and evaluated in
relation to flows. Ultimately, a model was developed that estimated crop
production by county in relation to county-specific agroclimatic conditions
and applied irrigation. The model was used to predict county changes in
corn, wheat and soybean production values in relation to changes in
applied irrigation. (~$100,000)
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7.
Brief resume of Key Person, Specialists, and Individual Consultant Anticipated for this Project.
Evaluation of Missouri River Master Water Control Plan on Upper Missouri
Watershed, State of Nebraska, DNR, 2003: USACE benefit values were
evaluated for multiple uses of the watershed. Critiques and comments
were submitted. Written testimony was provided to State of Nebraska.
(Confidential)
Water Supply Planning for the Duck River Watershed, Duck River
Development Agency: Dr. Wade conducted statistical studies to show that
streamflows and storage in the Duck River were adequate to meet both
instream flow targets and M&I water demands to 2050. IRP procedures
were used to calculate likelihood, amount and duration of supply shortfalls.
($25,000)
Economic Benefits of M&I Water Supply Reliability for Metropolitan Atlanta,
Plus Recreational Benefits of Lake Lanier Water Levels, Atlanta Regional
Commission: This project entailed numerous deliverable products over 1998 2001, beginning with comments on ACE-contractor deficiencies in the record.
Subsequently, rigorous NED and RED benefits were estimated based on demand
curve estimates and benefit transfer methods for supply reliability and recreation.
Trade offs among water supply alternatives among the three states were evaluated
using the SCRB methodology. The effects of alternative Lake Lanier water levels on
recreation was estimated based on pro forma spending patterns from Corps of
Engineers research. (~$200,000)
Forecasting & Evaluating Reservoir Recreation Financial Feasibility and
Regional Economic Effects, 1995-1999, Metropolitan Water District of
Southern California: Dr. Wade's California Travel Cost Recreation Demand Model
was used to predict visitation and related recreation benefits for a new reservoir in
1988. Beginning in 1994, this forecast was updated and integrated into a financial
feasibility model developed for the project capable of predicting the synergies
among recreation activities at the new reservoir. Literally, hundreds of project
amenities alternatives have been evaluated with the model. The model was used to
eliminate financially uneconomic amenity mixes and expansion plans. A $300 million
complex was planned. Management changes at MWD caused the recreation
complex not to be developed as planned. ($250,000 annually for five years.)
Chevron Gulf of Mexico Business Unit and Minerals Management Services,
1994-1999: Beginning in 1994, Dr. Wade and his group at Foster Associates
initiated a series of studies, first for Chevron's Destin Dome EIS and subsequently
for the Minerals Management Services. This work entailed substantial local area
research to develop the social and economic impact analyses required by MMS's
rigorous guidelines. This body of work included social impacts assessment under
the SIA guidelines. It documented local and regionwide economic impacts from
historic and proposed gas development; Analyzed demographic changes, fiscal
impacts to region and community infrastructure impacts related to proposed offshore
development scenario. In the modeling element, we calibrated and ran REMI and
IMPLAN I-O Models for Norphlet gas production inputs. The following report titles
illustrate the work. (~$500,000 for Chevron work; $265,000 for MMS)







“Regional Social and Economic Effects of Mobile Bay and Florida Destin Dome
Norphlet Gas Development and Production,” 1994, 1996, 1998.
Chevron Destin Dome DPP, Volume IV.A, “Economic, Fiscal and Infrastructure
Impacts,” 1994 & 1996.
“Case Study of Coastal Alabama Mutual Use of Resources: Gas, Tourism and
Fisheries,” 1997.
“Research and Modeling Challenges to Estimate Economic Effects of Coastal
Alabama Exploration and Development,” 1998.
“Effects of Oil and Gas Support Industries on Florida and Panhandle Economy,”
1998.
“History of Coastal Alabama Natural Gas Exploration and Development,” 1998.
“Potential Gulf of Mexico Gas Supply Forecast,” 1999.
Three reports were issued by MMS Social and Economic Impact Mission under
contract 1435-01-CT-96-30829:
 Social and Economic Consequences of Onshore OCS-Related Activities in
Coastal Alabama; MMS Publication 98-0046;
 History of Coastal Alabama Natural Gas Exploration and Development; MMS
Publication 99-0031;
 Economic Effects of Coastal Alabama and Destin Dome Offshore Natural Gas
Exploration, Development, and Production, OCS Study MMS 2000-044.
MMS Offshore Environmental Cost Model Project.
STANDARD FORM 255 (REV. 11-92)
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7.

Brief resume of Key Person, Specialists, and Individual Consultant Anticipated for this Project.
Forecasting Environmental and Social Externalities Associated with OCS Oil
and Gas Development: The Offshore Environmental Cost Model, OCS Study
MMS 2001 - 017& 018.)
Dr. Wade led a team that developed a large model to forecast social and
environmental costs associated with OCS development for 50 years. The model
estimates environmental and social damages for each of 26 OCS planning areas in
relation to OCS lease sales and assigns dollar costs for subsequent cost-benefit
analysis. The environmental and social costs estimated with the model are used in
subsequent benefit-cost analysis of OCS lease sales. ($265,000)
STANDARD FORM 255 (REV. 11-92)
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