Water & Sanitary Utility Rate Models & Strategies

The CORVUS Water and Sanitary Rate Model is used by municipalities to develop rate strategies for their water and sanitary utilities.

The CORVUS Utility Rate Model does much more than calculate rates; and we provide it to our clients for ongoing use without any licensing fees or maintenance obligations. The model:

  • Tracks actual cost of construction on a project-by-project basis.
  • Tracks capital plan financing on a project-by-project basis for both system acquired and contributed assets.
  • Determines depreciation for individual asset classes for existing and new infrastructure over the rate planning period.
  • Determines debt impacts (principal payments, interest payments, ending balance) for existing and new infrastructure over the rate planning period.
  • Segregates operations & maintenance costs into ‘customer’, ‘capacity’, and ‘consumption’ components.
  • Inflates operations & maintenance costs each year over the rate planning period.
  • Adds step increases or decrease to operations &maintenance costs each year over the rate planning period.
  • Utilizes customer consumption and services sizes to develop equitable rates.
  • Sets the deemed capital structure for the utility for each year of the rate planning period.
  • Calculates returns on asset base for each individual component and for each year over the rate planning period: system acquired (debt), system acquired (equity), contributed, and working capital.
  • Calculates full cost revenue requirements (O&M, depreciation, return on asset base) for each year of the rate planning period.
  • Compares the full cost revenue requirements with the cash revenue requirements for each year of the rate planning period.
  • Develops and adjusts the rate strategy for the ‘customer’, ‘capacity’, and ‘consumption’ rate components, for each year of the rate planning period.
  • Adjusts the implementation month of each rate strategy element.
  • Develops and adjusts minimum charges (if any) for the ‘consumption’ rate component.
  • Develops and adjusts volume discounts (if any) for the ‘consumption’ rate component.
  • Displays revenue/recovery impacts of the rate strategy and compares these impacts to full cost requirements.
  • Enables “what if” scenarios for each element of the rate strategy.
  • Enables “what if” impacts for capital plans changes (e.g., accelerate / decelerate construction staging).
  • Forecasts reserve balances over the rate planning period based on the rate strategy developed.
  • Forecasts the impact of rate strategies on various customer types: small residential, average residential, large business, etc.
CORVUS Utility Rate Model Control Panel

CORVUS Utility Rate Model Control Panel (click to enlarge)