Water Portfolio Diversification
M&A plays a crucial role in helping the Hopi Tribe diversify its portfolio of water and energy resources.
- Client: Hopi Tribe
- Time frame: 2008–present
- Location: Hopi Reservation and federal trust lands, northern Arizona
The Hopi Tribe wanted to optimize the reliability of its water supply, especially during times of shortage. M&A was retained to help the Tribe evaluate its existing water resource portfolio and identify ways to optimize its water supply reliability. One of our Water Policy & Economics experts is also currently participating in ongoing northern Arizona water-settlement negotiations, supporting the Tribe’s water team, general counsel, and outside counsel.
- Evaluated not only the tribe's current water portfolio but also potentially available resources in the context of quality, reliability, and availability
- Quantified the economic- and policy-related tradeoffs associated with each portfolio component
- Based on the results of an optimization model, recommended mechanisms for securing ("firming") supplemental water supplies for shortage periods
- Helped the Hopi Tribe implement the firming strategy, which required agreements for the acquisition, underground storage, and future recovery and exchange of CAP water
- Constructed an economic optimization model to test the reliability and cost of various resource-acquisition scenarios
- Provided expert advice to the tribal negotiating team on the economic, policy, and institutional factors affecting Hopi water-resource interests
- Prepared briefing papers on key settlement-related water issues and worked with a technical / financial subgroup to develop maps, white papers, and factual evaluations for the negotiating team
Our work has helped the Tribe evaluate a range of settlement proposals offered by multiple parties.