Utility Financial Management and Rates
Utilities face many challenges – AE2S Nexus can help
We offer several services to help utilities ensure their financial health
Cost of Serivce Analysis (COSA)
A Cost of Service Analysis provides you with an awareness of how your costs are allocated among your users. This understanding provides a sound basis for making informed decisions and setting equitable rates, increases the accuracy and credibility of your budget and long-range capital improvement planning processes, and promotes self-sufficiency. Collectively, these ultimately translate to strong financial health for your utility.
Revenue Adequacy Evaluation
A Revenue Adequacy Evaluation involves development of a financial model that projects annual revenue requirements and anticipated revenues. It provides you with a robust tool that can be used to manage projected revenues against projected O&M costs, debt service, and capital improvements. A Revenue Adequacy model can also be a useful tool in analyzing the rate effects of various capital funding strategies, as well as planning for prudent reserves and tracking reserve balances.capital improvement planning processes, and promotes self-sufficiency. Collectively, these ultimately translate to strong financial health for your utility.
Rate Design
Rate design focuses on the development of rates that are “fair and equitable” and reflective of the full cost of services provided. Our team utilizes leading-industry methods to evaluate existing rate structures and recommend adjustments which enable you to best maintain the financial viability of your system
Long Term Rate Planning
No one can predict the future - but AE2S Nexus can help you prepare for the ups and downs in the economy and appropriately plan your utility's rates.
Annual Utilility Finance Review
We'll help you review your utility's financial state, analyze future growth, and secure revenue to meet the demand on your system.