public enterprise dashboards: water, wastewater ... · 05/03/2015  · median charged by nc utility...

www.efc.unc.edu

Public Enterprise Dashboards: Water,

Wastewater, Electricity, Stormwater, and Other

Innovative Environmental Finance Tools

David Tucker

Project Director

Environmental Finance Center

UNC School of Government

Thursday, March 5, 2015

Research Triangle Park, NC

http://efc.sog.unc.edu

@EFCatUNC 2

Dedicated to enhancing the ability of

governments and other organizations

to provide environmental programs and

services in fair, effective, and

financially sustainable ways through:

• Applied Research

• Teaching and Outreach

• Program Design and Evaluation

How you pay for it matters

http://efc.sog.unc.edu

@EFCatUNC

What’s Your Utility’s/Public Enterprise’s

Biggest Financial Challenge?

1. Changing business model (e.g. selling less water /

wastewater / electricity)

2. Customer affordability

3. Revenue shortfalls

4. “Funding depreciation”

5. Communication

6. Governing board’s unwillingness to raise rates

7. Pressure to keep rates comparable to other utilities

8. Other

How satisfied are you with the utility

rates you have today?

1. Not at all – need an overhaul

2. Not very – they need a lot of work

3. Somewhat – tweaks needed

4. Very – no changes needed

EFC Public Enterprise Dashboards

• Drinking Water (NC + many more)

• Wastewater (NC + many more)

• Stormwater (NC + GA)

• Electricity (NC)

• Other innovative environmental finance

tools (Excel-based, web-based, etc.)

N.C. Water/Sewer Rates Dashboard (2015)

N.C. Stormwater Rates Dashboard (2012)

N.C. Electricity Rates Dashboard (2014)

© 2015 Water Research Foundation. ALL RIGHTS RESERVED. © 2015 Water Research Foundation. ALL RIGHTS RESERVED.

Communicating a RateCase: Beta RateCase Tool

Analysis Conducted by UNC Environmental Finance Center

© 2015 Water Research Foundation. ALL RIGHTS RESERVED.

RateCase Tool

• Audience: Utility governing boards via

water utility/administrative staff

• Objective: Provide snapshot of the

utility’s key metrics

• Inspiration: SFPUC Ratepayer Assurance

Scorecard

Analysis Conducted by UNC Environmental Finance Center

© 2015 Water Research Foundation. ALL RIGHTS RESERVED. Analysis Conducted by UNC Environmental Finance Center

© 2015 Water Research Foundation. ALL RIGHTS RESERVED. Analysis Conducted by UNC Environmental Finance Center

Frame 1:

Data

Inputs

© 2015 Water Research Foundation. ALL RIGHTS RESERVED.

Frame 2:

The

$napshot

Analysis Conducted by UNC Environmental Finance Center

Deep Dive: N.C. Water & Sewer Rates

Anticipated Water / Sewer Rate

Increase Request for Next Year

1. No change

2. 0 to 2.99%

3. 3 to 5.99

4. 6 to 9.99

5. 10 or above

Annual NC Water and Wastewater

Rates Survey

• Collaboration since 2005

• 2015 survey just completed. 496 utilities included.

• Free, online information: tables, summary report, Rates

Dashboard, rate sheets at http://www.efc.sog.unc.edu and

http://www.nclm.org

NC League of Municipalities Environmental Finance Center

at the School of Government

Factual Report and Data Tables http://efc.sog.unc.edu – Find it in Programs / Drinking Water

Or http://nclm.org

Which Rates were Studied?

• January 2015 rates for 496 utilities across NC

• Rates for water, irrigation, and wastewater

services

• Rates for residential and for non-residential

(small commercial) customers

• Rates for inside and outside customers

• Including base charges and allowances

Draft 2015* by the Numbers

(Based on data submitted as of 2/1/15)

Operating revenues collected by

governmental utilities (FY 2014)

>$2.2 billion

Highest (SUBMITTED TO DATE) (FY

2014)

$197 million (Raleigh)

Lowest (FY 2014) $1,178 (Boiling Springs Lakes)

Median charged by NC utility $31.32 Water

$38.42 Sewer

$67.80 Combined

Average number of blocks 4

Median multiplier for out-of-city rates (Among 83% percent of municipalities)

1.84x Water

1.92x Sewer

Percent of utilities that raised rates (376 water + 318 sewer rate structures)

53% Water

52% Sewer

Median increase for those that increased

bills

4.6% Water

4.9% Sewer

Highest rate per 1,000 gallons at 5,000

gallons/month

$20.00 Water

$21.00 Sewer

Median base charge $15.00 Water

$16.00 Sewer

$31.00 Combined

Highest base charge $94.37 Water

$65.21 Sewer

$90.07 Combined

Lowest non-zero base charge

$2.47 Water

$1.97 Sewer

$6.14 Combined

Median percentage of customer bill due to

base charge at 5,000

48% Water

43% Sewer

Draft 2015* by the Numbers

(Based on data submitted as of 2/1/15)

Rates Dashboards

• Interactive tool to compare water & sewer rates (bills) among all utilities, or utilities with similar characteristics:

– System size (number of accounts or revenues)

– Technology (water source type or river basin)

– Location (regional council, 25 / 50 / 100 miles)

– Same rate structure (uniform, incr. block, etc.)

– Demographics (median household income)

– County economic development tiers

• Available online at http://efc.sog.unc.edu

New Features -- New Technology!!!

• Much faster load and response times

• Access it on tablets (e.g. iPad)

• Type in your utility's name to select

• Click on and select any utility on the map

• Edit your utility's data (temporarily and locally)

• View your rates at 500 gallon/month increments

• Simulate raising rates up to 100%

Future improvements could include:

1. Selecting more than one comparison group at a time.

2. Benchmarking residential Water Outside and Sewer

Outside rates.

3. Benchmarking commercial rates (WIC, WOC, SIC, SOC).

4. Presenting historical data (e.g. rates from last 5-10 years).

5. Reevaluating thresholds for the financial indicators.

6. Additional financial indicators (LT debt per customer).

7. Additional rates indicators (% of bill from base charge).

8. Benchmarking residential irrigation rates.

9. Creating a multi-state / regional rates dashboard.

REVENUE SUFFICIENCY

Do Water and Wastewater Rates Cover

System Costs?

n = 438 (FY 2014)

Source: 2015 NCLM/EFC North Carolina Water & Wastewater Rates Survey Report

FY 2014 Rates and Operating Ratios

Source: 2015 NCLM/EFC North Carolina Water & Wastewater Rates Survey Report

OTHER TOOLS & RESOURCES

Webpage on NC Rates

(with report, tables, Dashboards, more)

http://efc.sog.unc.edu – Find it in Programs / Drinking Water

The 2015 Rates Dashboard, report, and tables are now posted on the EFC

website, and an email will be sent to utility managers, finance directors and

town clerks/administrators.

NC Rate Setting Resources • Call the EFC / SOG

• Guide to Billing and Collecting Public Enterprise Utility Fees for Water,

Wastewater, and Solid Waste Services (by Kara Millonzi, SOG)

• NC Rates Dashboard (EFC web)

• Do-it-yourself Excel tools for rate scenarios and capital planning (EFC web)

• Designing Rate Structures that Support Your Objectives guide (EFC web)

• 2010 NCLM/EFC Financial Practices & Policies Survey (EFC web)

• Other EFC web resources (blog posts, data, guidelines/reports, tools) at

http://efc.sog.unc.edu

• LGC Fiscal Analysis Dashboard

• “Painful Art of Rate Setting” article in Popular Government

• AWWA M1 Manual, EPA Rate Setting workbooks, etc.

• Rural Water Association, Consultants, etc.

• EFC’s blog: http://efc.web.unc.edu

Subscribe to Keep Up-to-Date with

the Environmental Finance Blog

http://efc.web.unc.edu

Examples of relevant blog posts:

• Declining demands in NC

• Increasing rates in NC

• Operating ratios in NC

• Water debt in NC

• What’s wrong with %MHI

• Financial strategies

• And much more!

Other Environmental Finance Tools

• Water Utility Revenue Risk Assessment Tool

• Water & Sewer Rates Analysis Model

• User-Friendly Capital Improvement Plan (CIP) Tool for

Water & Wastewater Utilities

• Financing Wetland and Water Quality Improvements Tool

• Subsidized Funding Benefits Calculator

• Dashboard for Using Capital Reserve Funds to Avoid Rate

Shock

• Clean Energy Durham’s Home Energy Share and Compare

• ***and many more***

www.efc.unc.edu

Questions?

David Tucker

Project Director

Environmental Finance Center

UNC School of Government

drtucker@sog.unc.edu

(919) 966-4199