public enterprise dashboards: water, wastewater ... · 05/03/2015 · median charged by nc utility...
TRANSCRIPT
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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
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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
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http://efc.sog.unc.edu
@EFCatUNC
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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
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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
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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.)
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N.C. Water/Sewer Rates Dashboard (2015)
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N.C. Stormwater Rates Dashboard (2012)
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N.C. Electricity Rates Dashboard (2014)
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© 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
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© 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
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© 2015 Water Research Foundation. ALL RIGHTS RESERVED. Analysis Conducted by UNC Environmental Finance Center
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© 2015 Water Research Foundation. ALL RIGHTS RESERVED. Analysis Conducted by UNC Environmental Finance Center
Frame 1:
Data
Inputs
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© 2015 Water Research Foundation. ALL RIGHTS RESERVED.
Frame 2:
The
$napshot
Analysis Conducted by UNC Environmental Finance Center
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Deep Dive: N.C. Water & Sewer Rates
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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
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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
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Factual Report and Data Tables http://efc.sog.unc.edu – Find it in Programs / Drinking Water
Or http://nclm.org
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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
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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
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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)
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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
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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%
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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.
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REVENUE SUFFICIENCY
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Do Water and Wastewater Rates Cover
System Costs?
n = 438 (FY 2014)
Source: 2015 NCLM/EFC North Carolina Water & Wastewater Rates Survey Report
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FY 2014 Rates and Operating Ratios
Source: 2015 NCLM/EFC North Carolina Water & Wastewater Rates Survey Report
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OTHER TOOLS & RESOURCES
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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.
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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
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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!
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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***
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www.efc.unc.edu
Questions?
David Tucker
Project Director
Environmental Finance Center
UNC School of Government
(919) 966-4199