Rate Study – The most comprehensive financial analysis we perform for utilities, and typically includes a Revenue Sufficiency Analysis, Cost of Service Allocation, and Rate Design Analysis. In some cases, the study may also include a Capital Planning & Funding Analysis, Impact Fees/Capital Charges Analysis, and/or the development of Miscellaneous Service Fees.
Revenue Sufficiency Analysis – Provides a multi-year projection of the sufficiency of a utility’s revenues to meet all of its current and projected financial requirements. We determine the level of rate adjustments necessary in each year to provide adequate revenues to fund all of the utility’s cost requirements.
Rate Design Analysis – Begins with a diagnostic rate structure evaluation to determine whether the existing rate structure conforms to industry/legal guidelines and achieves other industry-specific objectives. Based upon the results of this evaluation, a detailed billing analysis is used to develop a new rate structure that will satisfy community objectives while ensuring adequate revenue to satisfy the utility's cost requirements.
Cost of Service Allocation – Apportions the costs of each department or division of a utility system to each respective service (such as water vs. wastewater), system functions and/or customer class (retail vs. wholesale and/or residential vs. non-residential). These allocations are typically relied upon in the performance of a Revenue Sufficiency Analysis and/or a Rate Design Analysis.
Capital Planning & Funding Analysis – Evaluates the timing and funding sources for annual capital improvement plans and individual projects. The evaluation focuses on maximizing the use of existing funding sources and matching the type of funding with the useful life of each project while minimizing the impact to customers.
Impact Fee / Capital Charge Study – Develops capital charges that are designed to recover the cost of providing capital facilities (infrastructure) needed to serve new development. These charges are the mechanism by which new growth can "pay its own way" and minimize the extent to which existing customers must bear the cost of new or expanded facilities which are necessitated by additional customers.
Utility System Valuation – Determines the value of a utility system for potential divestment or acquisition using several alternative valuation methods such as Reconstruction Cost New Less Depreciation (RCNLD), Income/Debt Bearing Capacity Analysis, Comparable Sales, etc.
Private Utility Rate Case & Regulatory Assistance – Includes the calculation of rates for private utility systems in accordance with the appropriate regulatory agency rules and filing requirements as well as legal precedent and industry practice. This typically includes the preparation of financial/accounting related schedules required to support rate applications as well as the provision of written and oral expert witness testimony.
Alternative Water Supply Economics – Identifies and assesses the financial and customer implications of various water supply alternatives, such as surface water, ground water, wholesale purchases versus self-production, alternative treatment methods, participation in regional water supply solutions, etc.
Financial Feasibility Analysis – Examines the financial consequences of potential initiatives, such as divestment/acquisition, substitution of alternative water supply (such as reclaimed water for potable water), annexation, impact fee waiver programs, growth moratoriums, operational configurations/changes, etc.
Special Assessment & Fee Studies – Calculates non-ad valorem assessments for various utilities to be billed on the annual tax bill. Can also include the development of special benefit assessments/fees for areas with localized benefits within a utility system or service area.
Calculation of Miscellaneous Service Fees – Identifies the costs and develops appropriate fees for providing specific services to individual customers, such as tap fees, meter set fees, service installation fees, disconnection fees, reconnection fees, late payment charges, etc.
Ordinance Development & Revision – Creates a new ordinance for the provision of utility service or amends/revises an existing one to: adequately describe rules/terms of service, achieve desired policy and procedure objectives, and to accurately present the rates of the utility.
