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Utilities Concerned For Affordability

August 30, 2010 by Jason Mumm · Leave a Comment
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A recent investigation now suggests that a major concern for providers of water and wastewater services in the United States is ‘affordability.’ Affordability has always been an issue for consumers but some newly released information reveals some surprising trends. Personal income has actually declined for the first time in the US since the 1950s as consumers have experienced negative annual ‘real’ growth in personal income. And when personal incomes decline, raising rates for water and wastewater services becomes even less popular.

Managing Trust In Public And Private Utilities

June 23, 2010 by Jason Mumm · Leave a Comment
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Customers never want to pay more for something unless they see an increase in value. Paying for water and utility services is no exception. Utility customers expect to receive the same services at the same or reduced costs that they previously enjoyed. This makes raising water or utility rates a tricky proposition indeed.

Utility Fees And The “Revenue Requirement”

June 12, 2010 by Jason Mumm · Leave a Comment
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The process for raising utility and water service rates frequently involves emotional meetings between customers and providers. As nobody likes to see their monthly expenses increase, these meetings are difficult for both provider and customer. Water Rate Consultants are often hired to help utilities manage costs and keep rate increases to a minimum.

Legal Costs Can Lead To Increased Utility Fees

June 12, 2010 by Jason Mumm · Leave a Comment
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Overhead and personnel costs are not the only things that can drive up water and wastewater service fees. Consumer wastewater fees in one California service area could jump this year in response to legally required increases in operating costs. The San Carlos, CA sewage treatment system was recently sued by a San Francisco area group over the number of waste overflows of untreated sewage that the wastewater service provider supposedly allowed to flow into the bay. Now costs associated with the settlement could wind up being passed on to customers in the form of yet another rate increase.

Increased Spending on Water Utilities Likely

May 10, 2010 by Jason Mumm · Leave a Comment
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The US Conference of Mayors predicted in a recent report that overall spending for water and wastewater facilities and systems may increase significantly in the near term. Local water customers are sure to feel the impact as increased spending is almost always passed on directly to users. And as the country’s population grows, demand that drives expansion will grow as well. In the end, spending on water delivery and wastewater treatment infrastructure may increase by up to four times over previous levels.

Will Rising Interest Rates Impact Water Fees?

April 20, 2010 by Jason Mumm · Leave a Comment
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Eventually the piper must be paid. For municipal governments, balancing the budget is a constant concern and one that is becoming more difficult reduced revenues have force many to cut funding for some core services. In Washington however, balanced budgets are not a concern, nor it seems is the staggering deficit that comes with massive spending programs that are unsupported by revenues.

Water Utility Fees – Huge Increases on the Horizon?

March 7, 2010 by Jason Mumm · Leave a Comment
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Pennsylvania Governor Ed Rendell is fond of repeating a story from his days as Mayor of Philadelphia. After a prolonged cold snap, temperatures quickly soared into the upper 50s causing 58 water main breaks in the city service area. The Philadelphia water managers reported back to him that some of the pipes had been installed in the 19th century and were not buried deep enough. When the rapid change in weather occurred, the ancient parts of the water service infrastructure simply failed.

Water Utilities can Avoid Disaster when Replacing Infrastructure

March 5, 2010 by Jason Mumm · Leave a Comment
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A major concern for water utilities nationwide is the intensifying need to replace old and aging infrastructure. However, utility managers that delay replacement of older plant and equipment can be setting their customers up for shocking rate increases. The subsequent conflict between payer and provider is unpleasant at best – even for communities with larger water systems. For smaller water utilities, though, infrastructure replacement problems can be – if not catastrophic – financially painful for the community.

Does Conserving Water Save Money Over the Long Term?

March 2, 2010 by Jason Mumm · Leave a Comment
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A recent Sonoma County California case brings to light an interesting relationship between conservation and water utility rates. Last October, residents of the local Sonoma users undertook some significant conservation measures and were rewarded with an 8% rate increase. The lead line from a local community radio website then read “Apparently, conserving water won’t necessarily save you money.” Water Utility Consultants have seen this before.