Author: Evan Kirk (Page 2 of 3)

SOG Environmental Finance Ctr

Stormwater Utility Fees in North Carolina: Now and Then

On March 11, 2019, the Environmental Finance Center at the University of North Carolina at Chapel Hill (EFC) will host a free, interactive webinar on the current state of stormwater fees and finance in North Carolina. In addition to a brief trend analysis to show how stormwater fees have changed in the state since 2010, the webinar will include an update on the recently released Table of Stormwater Fees and Fee Structures in North Carolina for the 2018-19 Fiscal Year and a demonstration of the upcoming 2019 North Carolina Stormwater Rates Dashboard. You can sign up for the webinar here.

If you’re new to the world of stormwater, you may be interested in reading our NC stormwater fees survey update blog from last year. In it you will find a more in-depth explanation of some of the terminology used in this blog. Read on for a preview of what will be discussed in our upcoming webinar: Continue reading

Capacity and Environmental Services

Evan Kirk is a fellow in the 2018 Leaders in Environment and Finance (LEAF) program. As part of the LEAF Fellowship, Evan worked with Envirolink over the summer of 2018. Evan’s work with Envirolink relied on using information gathering and data communication to improve Envirolink’s managerial capacity survey. This survey assesses and scores a wide variety of utility managerial, financial, and policy performance metrics.

Capacity, as defined by the U.S. Environmental Protection Agency, includes technical, managerial, and financial capabilities, also known as TMF capacity. Systems with sufficient TMF capacity can safely and consistently provide drinking water and wastewater services to their customers and are far less likely to receive notices of violation (NOVs) for non-compliance than systems with insufficient capacity. Conversely, systems that are struggling to develop or maintain capacity may be at an increased risk for operational problems such as non-compliance violations. One option for these struggling systems is to contract with companies like Envirolink for excess technical, managerial, and financial capacity.

Envirolink is a full-service utility management company that specializes in providing water, wastewater, and public works services to both public and private clients across the Carolinas. One component of Envirolink’s business model is lending excess capacity to systems in two major ways: first, through the operation and maintenance of physical assets, and second, through the provision of managerial and financial consulting services. Continue reading

Exploring Public Fire Protection Charges in Wisconsin

In addition to Rates Dashboards, the Environmental Finance Center at the University of North Carolina at Chapel Hill regularly publishes tables of water rates and rate structures of various states. Last month, in addition to tables of water and wastewater rates, the EFC at UNC also published tables of public fire protection charges in Wisconsin as of January 2018. These data tables are one of several products created from data for water rates and rate structures of 575 water utilities throughout the state of Wisconsin. The data tables list each utility’s residential water rate structure details, monthly-equivalent bills computed at different consumption levels, and public fire protection charge information.

This post explores what fire protection charges are, how they are collected, and how system size plays a role.

Continue reading

I’ve Got the Rate Case Blues: How to Maintain Financial Health While Mounting Fewer Rate Cases

For water and sewer utilities regulated by a state’s public utilities commission (PUC), mounting a rate case can be an expensive proposition. In fact, for some particularly small utilities, mounting a rate case can be more expensive than operating the utility for many months. It’s no wonder, therefore, that utilities may be reluctant to undertake rate cases on a regular basis. Some utilities may even wait longer than a decade between rate increases, a decision that may preserve short-term fiscal health, but can be costly in the long term.

The unpredictability of future costs makes it difficult to design new rate structures in preparation for a rate case. In my study at the EFC of rate structures across four different states, I’ve found four, region-specific challenges utilities may confront that lead to financial instability. These are declining water sales due to reduced demand and conservation measures, volatility in the price of power, drought stressors, and environmental and health regulations. The challenge in a rate case, therefore, is, how can the utility commission ensure the cost of service is fair to the consumer and that rates allow the utility to remain fiscally healthy? The three strategies discussed below can help utilities remain fiscally stable while avoiding constantly mounting rate cases by designing rate structures that adjust for uncertainty in future conditions.

Continue reading

« Older posts Newer posts »