Utility Financial Management

Utilities face many challenges - AE2S Nexus can help

Utilities have seen many changes that have driven increasing capital, operation, and maintenance costs in recent history. Among these changes are the continued aging of infrastructure installed over the last century and heightened regulatory requirements associated with the implementation of the Clean Water Act and the Safe Drinking Water Act.
We offer several services to help utilities ensure their financial health

Cost of Service (COSA)

A Cost of Service Analysis provides you with an awareness of how your costs are allocated among your users.  This understanding provides a sound basis for making informed decisions and setting equitable rates, increases the accuracy and credibility of your budget and long-range capital improvement planning processes, and promotes self-sufficiency.  Collectively, these ultimately translate to strong financial health for your utility.

Revenue Adequacy

A Revenue Adequacy Evaluation involves development of a financial model that projects annual revenue requirements and anticipated revenues.  It provides you with a robust tool that can be used to manage projected revenues against projected O&M costs, debt service, and capital improvements. A Revenue Adequacy model can also be a useful tool in analyzing the rate effects of various capital funding strategies, as well as planning for prudent reserves and tracking reserve balances.

Rate Design

Rate design focuses on the development of rates that are “fair and equitable” and reflective of the full cost of services provided. Our team utilizes leading-industry methods to evaluate existing rate structures and recommend adjustments which enable you to best maintain the financial viability of your system

Long-Term Rate Planning

No one can predict the future – but AE2S Nexus can help you prepare for the ups and downs in the economy and appropriately plan your utility’s rates.

Annual Utility Finance Review

We’ll help you review your utility’s financial state, analyze future growth, and secure revenue to meet the demand on your system.