Typical Rate Study Steps

Review Revenue Requirements Define overall objectives Determine rate revenue requirements COSA Assignment of costs for a representative year to the user classes imposing the costs on the utility Functionalization Classification  Allocation Determine the calculated cost per user class Compare the cost per user class to actual revenue per user class Rate Design Assess potential rate … Read more

Rate Study 101

It’s that time of year again, initiation of the budget process and the associated assessment of utility rates for the upcoming budget year.  Questions may arise, such as “Are we charging enough?  Are we charging too much?  Can we afford to do the projects that we want or need to do? ” All of these … Read more

Federal Budget Likely to Provide Reduced Funding for SRFs

Work is underway in Washington to develop a budget for the upcoming 2012 fiscal year (FY2012) as well as a budget for the remainder of FY2011.  The government is currently operating under a Continuing Resolution (CR) that provides federal funding at levels appropriated for FY2010.  The current CR expires on March 4th and Congress is … Read more

Auditor Tips: How to Prepare for an Audit

Now that the rush of year-end is starting to come to a close, it is time to gather your information together from ALL of last year in anticipation of your annual audit.  Whether you are a community that has an audit done every year or every two years there are some things you can do … Read more

2011 Utility Rate Survey Data Collection Underway

In early February, questionnaires for the annual North Central Region Utility Rate Survey completed by AE2S Nexus were mailed to systems in North Dakota, Minnesota, Montana, South Dakota, and Wyoming.  Information gathered for the survey will be compiled into a booklet and complimentary copies will be distributed to all participating systems.  The annual AE2S rate … Read more