Miranda Kleven, PE There are many potential objectives for your community to complete a Rate Study. The most basic reason is to maintain financial viability for your system now and into the future. The information developed throughout the study analysis and from financial modeling tools developed for the study can be used both to help guide long-term strategic … Read more
A Cost of Service Analysis (COSA) is the allocation of costs to the various customer classes served (i.e. residential, commercial, industrial, etc.) corresponding to the level of service provided. Many costs are incurred for the joint benefit of all customers, some costs benefit certain customers more than others, and other costs may benefit only specific … Read more
Each year, utility managers and policy makers analyze the cost of operating the utility in the upcoming year, as well as the revenues the utility can reasonably expect in that year. Any anticipated shortfall is then addressed by making adjustments to the budget, delaying capital investment, or increasing user fees. This exercise is generally a … Read more
In recent years, there has been a trend in declining residential water use. Much has been studied and written about the trend in reference to the effect across the country. Closer to home, a review of historic utility rate survey data verifies the presence of a similar reduced residential water use trend in our region. … Read more
I recently ran across an article from a 1948 AWWA Journal where it was noted that significant future rate increases will be imperative unless utility managers abandon the practice of implementing rate increases only as a last resort and begin to implement rate increases adequate to address rising operational costs and capital requirements. It appears … Read more
AE2S is pleased to announce that the 11th annual North Central Region Utility Rate Study is complete, and it will soon be distributed to all of the participating utilities. This year, survey respondents included 75 systems with populations greater than 5,000 people outside of the Minneapolis/St. Paul Metro area, 27 systems serving greater than 5,000 … Read more