- Water Cost-of-Service & Rate Study - Owensboro
We completed a comprehensive water financial planning, cost-of-service and rate study for Owensboro Municipal Utilities (OMU), developing a five-year financial plan based on revenue and expenditure projections to assess the adequacy of the existing schedule of rates. Next, we completed an evaluation of the equity of cost recovery under the existing schedule of rates and identified cost responsibility among the various customer classes. Cost assignment was completed in accordance with industry guidelines.
Finally, we developed proposed schedules of rates for implementation over a five-year period that will achieve the necessary revenues and reflect the cost-of-service results. Our analysis, findings and recommendations were presented to the Utility Commission and to City Council. An updated model was provided as a part of the study and was subsequently used to assist in supporting revenue bond issuance in 2014.
Before the most recent studies, updated the water and electric system financial planning models. This project required a complete restructuring of the water and electric system forecasting models in Excel files. Our team worked with OMU staff in the restructuring process to assure the models would be consistent with other OMU financial information. We also trained OMU staff on using the model and making future adjustments.
- Financial model development
- Financial planning
- Cost-of-service analysis
- Rate design
- Board and city council presentation