Utility Rate Development
Revenue from water rates is typically the principal source of income available to the utility to maintain operations. There are three primary types of revenue common to most utilities; rate or user charge, miscellaneous operating fees and non-operating revenue. The specialists at Nussbaumer understand the delicate art of water pricing, helping utilities balance competing priorities such as affordability and system sustainability.
Development of a Utility Rate Plan will become a critical element in the utilities’ Financial Plan, and should include:
- Analysis of the customer base
- Consumption patterns
- Cost of service analysis