Rate Analysis

A good rate analysis will do several things for you, including:

• Show your current and future financial status under various scenarios
• Help you develop new rates that are adequate, equitable and either proportional to use or proportional to cost to serve
• Help you make grant and loan applications
• Show your affordability index, operating ratio, coverage ratio and other important indicators
• Show the rate effects of fixed and variable costs, repair and replacement costs, interest rates and inflation rates
• Show the annual annuity needed for repair and replacement
• Give graphical illustrations for management decisions and public meetings

To examine your rates, you have options:

• You can devise your own analysis
• You can hire a financial consultant to analyze your system
• You can purchase commercial analysis software
• You can have us do your analysis

To begin your rate analysis you need the following information:

• Customer billing records for the year you want to analyze
• Your user charge rate schedule, hook up and other relevant fees
• Financial records for the year that includes the income received and the costs incurred
• Flow volume
• Your equipment repair and replacement schedule
• The annual median income of your customers

Contact us today to begin your own FREE rate analysis!