Company Profile

Organized around enabling industry to quantify and mitigate impact of water-related risks to operations and financial performance, the principals of Lotic Labs have deep experience helping utilities manage environmental risks to make better financial decisions. The firm specializes in leveraging advanced data science techniques and machine learning technologies to protect utilities against weather risk. Principals of the firm hasve worked in a variety of water-dependent commodity industries, as well as finance organizations managing trillions of dollars of assets. The approach entails conducting a risk assessment of the client's current financial and operational exposure to weather volatility. The assessment provides managers with a detailed, quantitative understanding of the relationship between weather variables, revenue, budget variance, and demand for water. These analyses inform mid- and long-term decisions regarding the implementation of risk transfer or insurance contracts to protect against weather. In addition, the assessment can be used to improve rate setting, financial planning, supply and demand forecasting, and integrated water resource modeling. Clients are prvided with the cleaned and normalized data that underpins Lotic assessments, so that managers can continue to gain insights over time. Customize-designed Weather Risk Transfer contracts provide utilities with payouts during droughts and abnormally wet conditions. Like insurance, these policies protect utilities against the destabilizing consequences of lost revenue and increased costs. Risk Transfer contracts reduce the need for budget cuts, maintenance deferral, and surcharges to fund cash reserve funds. The firm work with utilities to design optimal protection, including smaller, pilot-scale contracts when desired.