Providing a comprehensive utility rate study and customized training for future use of our modeling tools
The Harpeth Valley Utilities District (HVUD) is a public utility providing water and wastewater services to customers in portions of Davidson, Williamson, and Cheatham counties in Tennessee. Serving approximately 250,000 people through both retail and wholesale customer relationships, we were engaged by the HVUD to address several issues relating to its multi-jurisdictional water and wastewater system.
The first work emphasis was to customize FAMS, our financial planning model, to reflect HVUDs operations and create a tool in alignment with current budgeting and fund management processes. The policy driver? The opportunity to provide wholesale wastewater treatment services to a new jurisdiction. To that end, we developed a cost allocation framework that specified costs for services, service customers, and retail customer classes.
The second phase focused on the retail rate structure, which had evolved over time and tended to reflect assumed conditions that no longer applied. Our analysis documented—and justified—the need for increases in base charges for customers. Through special purpose workshops, we offered training to ensure HVUDs ability to use our modeling system for future financial planning.
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