... are adequate, fair and appropriately simple or complex. It's a simple concept with difficult math. That's where we come in.
Most of our clients are cities and districts that want to get great rates proactively. Most of the rest simply need more revenue. It happens.
We calculate rates by starting with the process described in the American Water Works Assocation's M1 Manual; Principles of Water Rates, Fees and Charges. These principles and methods work just as well for other utilities, with a few modifications to account for the differences in those services. We don't stop at calculating rates that are in a "cost-to-serve" structure at the rate class level. We go all the way to the ratepayer level. Why? Ratepayers pay utility bills, rate classes do not. If you need rates or fees that diverge from a "cost-to-serve" structure, once we have your analysis model built, we can run variations of that model (scenarios) and calculate other rate structures, calculate rates needed to fund more or less capital improvement costs, you name it. All of our full rate analyses project incomes, costs, rates and more ten years into the future, so you will have a good financial roadmap for future do-it-yourself rate adjustments, too.
You may be located in one of the states with a "RATES Program." Click the drop down menu above to learn about those programs. If you are in one of those states, getting rate analysis is easier, surer and at discounted fees. Membership has its privileges.
There is a lot to know about rate analysis, proper rate setting and many things related. Some of these you should just leave up to your rate analyst. But some are critical for you to know. To start learning those things, click the "Freebies" link above and start reading. Especially have a look at the "Rate Setting Best Practices Guide," the newest addition to those resources. Everything in the Freebies locker is... free.
When it is time to talk about a rate analysis for your system or systems, just call to get the process started. Actually, you may want to first read Chapter 3 of the "Rate Setting Best Practices Guide." On the phone we will, first of all, figure out if you even need rate analysis. Most systems do, but I will not analyze your rates before it is worthwhile for you. If rate analysis is needed now, and you desire it, I will scope your project. It takes about 30 minutes per utility. Then, I should have a proposal like this to you in a day or two.
If you approve the proposal, we will proceed. We will get your rates in great shape. That probably will boost your revenue markedly. Of course, your ratepayers would rather not pay more. But at least (most of them) will be happy to know that they will be paying fairly structured rates. That will be the start of a happy beginning for your ratepayers and the utility that serves them.