Financial Sustainability: The Case for Full Cost Pricing

Sustainability is the buzz word of the industry.  Common topics include sustainable water supplies, sustainable construction methods, sustainable infrastructure, and sustainable financial management, to name a few. Sustainability is achieved when we are able to meet our needs today without compromising the opportunity for future generations to meet their needs. “Sustainability means providing an adequate and … Read more

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

2011 Rate Survey Questionnaires Coming Soon!

AE2S Nexus will soon be distributing questionnaires to gather information for our 2011 North Central Utility Rate Survey. Each year, AE2S conducts surveys of water, wastewater, stormwater, and solid waste utility rates for cities throughout the region and regional water systems. The information is compiled in an easy to read report with graphs for quick … Read more

Assessing Affordability

Water is a basic human need. As a result, the cost of an average level of residential water service cannot be fairly compared to the cost of non-essential items such as cable TV, soda pop, and other discretionary items when determining whether the cost is “affordable”.  Affordability means different things to different communities and varies … Read more

Inclining Block Rate Structures as a Price Incentive for Conservation in the North Central Region – Part II of a Two-Part Series

Inclining block rates can be an important component of a multi-faceted conservation plan. In recent years, many water utilities in our region have moved away from declining block and uniform block rates to an inclining block rate structure. If you are contemplating the benefits of such a change, there are some considerations to be taken … Read more