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Q 11'1 f.~kE°f~;.; f~a 9~~ F~}ErC!~i~~e F~j~tiFRi.~[~~.1.~+~K Cc'? <br />The key findings of this research will not be <br />news to utilities who have routinely and consis- <br />tently "done the right thing" by communicating <br />with their stakeholders and keeping up with <br />local funding needs. The findings and recom- <br />mendations are summarized as follows: <br />Finding #1. People unrlervaiue Water, Wltict~ cor!;toun~l: <br />ti7e +,?faiEeri,:fe of geti:insl rate i!fcreases acce~~tFd, <br />Recommendations: <br />^ Know your customers-understand their <br />attitudes and values through internal and <br />external surveys and other research. <br />® Clearly explain the benefits of water ser- <br />vice and increased spending on infrastruc- <br />ture through simple, graphics-focused <br />presentations, personalized to the neighbor- <br />hood level. <br />^ Localize messages in alignment with com- <br />munity priorities. <br />^ Participate in local and regional water pol- <br />icy development. <br />Finding #2. r~ ci~nsisteni, structu!~~d ccrr.n~unicatiorss <br />outreach program builds rile rrs3dibi4ity necessary to <br />support tine ci;stor;zz,r-utiiity re!ati0nsbip ancl, ti~~retore, <br />rate ir,crQases. <br />Recommendations: <br />^ Formulate consistent messages, based on <br />an understanding of customer perceptions, <br />and repeat them often. <br />^ Develop and implement an ongoing strate- <br />gic communications plan. <br />^ Involve employees and decision-makers as <br />"ambassadors." <br />^ Don't make comparisons between water <br />rates and "discretionary" spending (e.g., <br />cable television). <br />^ Celebrate and publicize successful projects, <br />including-and perhaps particularly- <br />underground infrastructure projects. <br />Finding #3. !t'.. r:s-;~°~~; ~,:o ~<:,i~..:::*~,~i r-?;irlt,j ;ii rir(fi <br />1'~,r.~ (i`sfr[~i 1i;!liJ EF;tI?l; i!(,~. i:6,. t`i1rC it`s l= fl~','lli, <br />^f"iSif:. <br />Recommendations: <br />e Check and re-check your budget and rate <br />calculations. <br />o Take timing of other events (e.g., elections, <br />increases in other rates or taxes) into con- <br />sideration and navigate around them. <br />~ Adequately fund and staff communication <br />efforts; assign responsibility and establish <br />accountability. <br />a Avoid "rate management by crisis" by <br />thinking long-term and starting today. <br />a Adopt a comprehensive process for plan- <br />ning and implementing a rate increase. <br />Finding #4. !3i`ling practices and rate stri!cture options <br />can of#ect customer reactions and acceptance of rate <br />increases. <br />Recommendations: <br />~ Distinguish water charges clearly from <br />other portions of the bill. <br />^ Communicate and coordinate with any <br />other utilities for which you provide billing, <br />both to (1) control cumulative increases on <br />ratepayers and (2) coordinate communica- <br />tions campaigns. <br />^ Build outreach requirements into combined <br />billing agreements. <br />^ Include enough detail for the average rate- <br />payer to determine how the bill was computed. <br />^ Consider more frequent billing intervals to <br />smooth out impacts on ratepayers and <br />make budgeting easier. <br />^ Consider special rate structures and fee <br />options. <br />^ Use multiple tools and approaches to make <br />sure rates are equitable, defensible, and <br />affordable. <br />2 AVOIDING RATE SHOCK: MAKING THE CASE FOR WATER RATES <br />