Public Enterprise Revenue and Rate Trends
description
Transcript of Public Enterprise Revenue and Rate Trends
www.efc.unc.edu
Public Enterprise Revenue and Rate Trends
Jeff HughesEnvironmental Finance Center School of GovernmentUniversity of North [email protected] 843 4956www.efc.unc.edu
Presentation
The Enterprises• Water• Wastewater• Stormwater• Electricity• A dash of trash…
The Outline• State of rates• State of revenues• Notable trends
State of Rates
• Water and Wastewaterhttp://efc.unc.edu/RatesDashboards/nc.html
• Stormwaterhttp://efc.unc.edu/tools.htm#nc_stormwater_dashboard
• Electricity http://efc.unc.edu/projects/NCElectricityRatesDashboard.htm
Trends
• Revenue increases• Attention to fixed vs. variable revenue• Decreasing sales• Rate increases• More attention on role of municipal utilities
1998 (n=498)
1999 (n=496)
2000 (n=498)
2001 (n=500)
2002 (n=501)
2003 (n=504)
2004 (n=0)
2005 (n=0)
2006 (n=498)
2007 (n=485)
2008 (n=478)
2009 (n=501)
2010 (n=491)
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000Total Operating Revenues
Linear (Total Operating Revenues)
Total Operating Expendi-tures
Linear (Total Operating Expenditures)
Fiscal Year (FY)
$ (M
illio
ns)
Data analyzed by the Environmental Finance Center at the University of North Carolina.Data source: NC Department of State Treasurer-Local Government Commission
4.04.55.0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Bill
ed W
ater
(MG
D)Trends
The challenge of driving revenue increases through rate increases:
HH rate versus revenues increases (2004 to 2010)
0% 25% 50% 75% 100% 125% 150%
-50%
-25%
0%
25%
50%
75%
100%
125%
150%
% Water Bill Increase for 10 ccf/month (from 2004 to 2010; wintertime rates)% W
ater
Rev
enue
Incr
ease
(fro
m 2
004
to 2
010)
Preliminary ResultsData analysis by the Environmental Finance Center at the University of North Carolina.Data sources: 2010 and 2004 RFC/AWWA Water and Wastewater Rates Survey Data for 82 Utilities
Fixed versus variable
Data analyzed by the Environmental Finance Center at the University of North Carolina. Data source: Each utility’s customer billing records, project funded by NC Urban Water Consortium
Charlotte-Mecklenburg Utilities Water and Sewer Revenues Fixed versus variable
2009 2010 2011 2012*0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VariableFixed
Data sources: Mickey Hicks, CFO, Charlotte-Mecklenburg Utilities
Annual Rate Increases
Outside service getting more attention
Do prices reflect the true cost of water?