Water storage facility
Utility Rate Studies
Developing and implementing fair, equitable and financially sensible utility rates is a critical component in the operation of any public utility. Our utility rate consultants have the experience and skills to help guide agencies through the development of comprehensive financial plans and the process of designing and implementing water, wastewater and solid waste utility rates.
Utility rates should be based on:
- A sound and comprehensive financial plan which includes a thorough evaluation of the revenues and costs associated with the provision of the service;
- Sound cost-of-service principles that appropriately allocate cost to various customer classes, striving for equity between and within customer classes;
- Consideration of other critical policy objectives such as affordability, water conservation, financial stability, fairness and ease of understanding for ratepayers.
Willdan Financial Services will:
- Develop a comprehensive model that incorporates revenue requirements, cost of service details, capital improvement requirements and rate scenarios.
- Conduct meetings and interactive discussions with agency staff and policy makers, using the GUIDE scenario manager that is incorporated into our model, to demonstrate the direct and indirect effects of changes in assumptions and imputs and the impacts of various rate structure scenarios.
- Communicate the objectives and results of the rate analysis to key stakeholders.
- Assist in complying with the requirements of Proposition 218 when implementing new utility rates.