Full Description

There are three areas that utilities should address inorder to improve their financial strength: financialplanning and management, effective pricing, andaffordability. This article discusses these areas, as wellas their benefit and importance in encouraging effectiveplanning and preparation for utilities to meetfuture challenges. First, financial planning and managementinvolve an iterative process through whichstrategic business planning, capital planning, andfinancial planning are considered. Second, effectivepricing is a key component to help utilities realize theirgoals and objectives through an equitable rate structure.Third, affordability and factors affecting theaffordability of water and wastewater service offerinsights into circumstances and limitations that mayaffect the revenue-earning potential of utilities. Byaddressing these areas, utilities are further enhancingtheir financial strength.With water rates increasing at a rate nearly twicethat of the consumer price index, affordability isbecoming an increasingly important, as well as challenging, issue. The steady upward climb of waterrates, and the associated challenges that will likelycome with this trend, will make sound financial planningone of the more important issues to be faced byutilities in the coming decade. Includes reference, table, figures.

Product Details

Edition: Vol. 97 - No. 4 Published: 04/01/2005 Number of Pages: 10 File Size: 1 file , 450 KB