|
.r+.\.s~r.w.u.:w- - ...W.........,......»...._....._....,..........~...--~------__.._._..._....._~_....._...,J...~.~.._....._._.....,,._.......~..~..~.~,.~.~,..~.s,..,y......w.....~.»w..z,.~,;...::.....,....r......,m.r,..,._...w...,..~~.;..u:
<br />T-,e MuriiciYra9 !utility has many issues to (leal avith relative to its
<br />fuscil arld operational trealth. Most decisions impact thf: utility's
<br />finalrcEa, Which u'Itimately affect rates. The Municipal Utility is
<br />concerned at)out how ii -vill -nanage its rates and pricing pro-
<br />gram to keep (I,p vvith the changes :in its operating environment,
<br />send tare correct price signals and be fair ul customers.
<br />,-
<br />f
<br />'flm ~(.llrnic~p;il Utiait}' h<IS ileci(Icil it needs 9n o\cer;III rat4• slrilte~ry
<br />t(1 hfap grli(le Ls ra4c:'ision-:making process going Icllwar(I. "fhc rrltr
<br />str;dc~' -ull pror•ide (fiirecUnn lclr 1 dE~-rel9t4i1 decisions. Ctolh the
<br />utility rn9nage.a74'nt and goverrlirlg body \-'ill 64 rurol\'ed in (Ic\'clol>-
<br />'I:ng t~#1.15 SY.r9te~)'. '.Che titr9t6~y IS E:IIt'IS10rIG(l t(1 he' 9 Ilsl OI C(rl'e
<br />1,~Ite-rcl9te(I plarlcples u7cludrlg;
<br />~• ~~BY'C~ltll)Ing'9rld mAl'r1t;11flllr~~ r1 •11\'e'yE:ll ' h119r1f'lill pl;ll{
<br />• ;~f'tlfrlg lrllrli rrllanl Ir1i1nC191 'I'9f IC,S ~LE.'. , (lel.ll SBI\9CC CO\'E I`il~e,
<br />d(~htlE:rldi#y rl-d'i(a, I:nargirrs)
<br />• ;tlnticp9timg rate neeils and ilevelr ,ping apllr(Ipri:lte rate
<br />cll9nge transitirnls
<br />• C)(:rcaopiggantalecti-e plililic: rela- r
<br />r
<br />t1UrIS plClgl';l'Il9 th9t Slll)pol'ts r' ~
<br />~ ~~~si
<br />con\4r\^at.iail„ flenrlnd response and 'art
<br />~
<br />oth(rl:niru'Igulxlxroaches • ~'
<br />• ,~fllh'f15tillil~ :lf:e 5t1'IICI'1:11'C ~l.f:., Ilfr\\' {
<br />C(Irlllf('lS,-p4C.liLIS41l7Cf'S,) ~~ 9 h r! f~L.?
<br />• ~t9tinf; pu#ics' r4~nrlint; carlrpcliti~e ' t'~F, 4 w))`Y :;i ,
<br />A i.
<br />prit.in~{i.E.., to:ils tornparE'(I lu nci~hla(n- ~
<br />?~r\ ~ ;' f~ ` , ~~ ' ~'
<br />`
<br />rlglrtilities) t,',~~~i ','
<br />f ,~
<br />
<br />• l_)Ehlllfl { ffl(a114{d(,IU I'c191c'd IO T'lt- r
<br />~ r; ~{r ~
<br />~
<br />li uu E; ou crrtit.b,u~E(1 pricing ~ "t`
<br />• SF.,`ttlll ~ 165E'IY4 .Irlrld )fYIlClftS
<br />~
<br />i .1.. L
<br />r
<br />.
<br />,
<br />• hat9hlisllirlt; raft: rifler gui(Ic~lirlcs ~ r.;Y ,f 1 z
<br />r; ,
<br />,1k'"~
<br />,', ;"
<br />?,-7;
<br />~i.c., J~uel ulp.h~trc-cn.ts, re~!ulatnry :r('- ,
<br />jl,r't,-~'~
<br />~
<br />8
<br />i ~
<br />
<br />rpulementt) ,
<br />1
<br />i
<br />',.i- }l~
<br />a!.
<br />• .IIdC till ll4'~1' \\'ll he in \\'ritin~ :lily qq
<br />{ r;
<br />~~{7'~~~Itrf ~!~'1{! lF)t~~
<br />
<br />rUlc,l',)l~c'(11)r t.l:le lIG,17'd 10 Sf r\C 9ti .Irl C,II- } F ~lti.
<br />ye
<br />1 ,2
<br />j
<br />~l~
<br />
<br />~fllrl~ kr11dB l(',:I' t~IB •1>U211d -911(.1 Iltlllt\' '
<br />l
<br />~3i)i~:
<br />C L,^y tl`li+•i;~;J` k
<br />~llif~
<br />.
<br />~
<br />'
<br />~
<br />rn urrgr:rncrd :ual N ao c(hlc (tlon.(1 tot:ll ~s {'
<br />cif ~~ff~t
<br />" 11
<br />llY t If I Ilrl~ IS-
<br />lot IIP 14' lK{'t1Y1 (1141141,41 \. t
<br />~
<br />~ 1 t~ 4ti~~l
<br />( +
<br />~
<br />4
<br />'
<br />SIIC'h ,1:1 l{art f1l .1 lylt(. St1.9t44;1' h4f(,1'C' tllcl~ l ~
<br />)
<br />~
<br />T
<br />lt
<br />~
<br />~ ; ~ 1.~{ x,11,,,+ I
<br />( SSS
<br />I
<br />9nse, tIIC 7~fIlrllCllY11 1.1 trlLt~' \1111 hl: hl (t(.'1' , ., 7' {~J~)i~~~'
<br />~~
<br />l-IeJrlreil fo (It'aa \1'ith its r,Ite-rclat('d ~,' EI',iJ~ln~
<br />~~f:'~`
<br /> {
<br />
<br />wwvv. s\P 1?An n't. o.r~,l
<br />`s ,
<br />t ~ I t'~k~~ t±~~~~~ ~ ti.,
<br />T#ie~Municipe) Utiiity.fi
<br />s u es i t h ate- a ffact~ ui i k ty;; f
<br />'siaccessfully~fnar~a ~ra~
<br />~_ , ,,,~ .
<br />ang~yze~~itt
<br />{r
<br />i understarl
<br />•-.diligent; al
<br />tom~flt3e;i
<br />as'part of
<br />thQ:impQH
<br />l,to It~ej~k~i
<br />.t.~tn,•u,, ,~'ia.9
<br />`,i1i::
<br />. ~r,, t`.
<br />,. (
<br />David fiery, P.E., is a prin(~pol in the SI. Peal, Mina, oflice of R.W. Beck,
<br />a SAIC cempaoy. Ho is national direclf>er of thD Rates. Valuation aad
<br />Finance Group ul R.W. Buck, pa SAIC cftrr-ptlny.
<br />~~ YY ~^`
<br />CNGINC_ERS
<br />SFI''F rr~ADEF{ 2f,t/J 2'1
<br />' ,.,i {
<br />~i a'. a r t .,. r 1 _. ~ ,
<br />
|