On May 23. 2017, CAPITAL OBJECTS hosted a long distance learning webinar demonstrating a rate calculation and financial analysis software program that blows away the power of spreadsheet models!
The AQUA RATES PLANNER robustly calculates the revenue stream originating from the most valuable commodity on the planet – WATER! This tool can handle connection-related and volume-related charges across residential, commercial, and industrial categories. It brilliantly handles volume charges, including inverse block rates, conservation rates, and drought rates. The platform also excels with the calculation of system development charges. Inﬂow projections combine the O&M, CIP, and debt service, providing comprehensive revenue suﬃciency cash ﬂows and cost-of-service analysis with fully documented calculated rates.
The AQUA RATES PLANNER calculates waste-water-related product revenue precisely with the ability to create any ﬁxed or volume fee charge for commercial, industrial, or residential customers. Additional categories for industrial rates are straightforward to set up. All cost accounts are available for allocation to products, cost pools, and customer service classes. Reclaimed water can also be priced and analyzed along with required, CIP master plan, capital ﬁnancing plan, and calculation of a fully documented and defensible rate structure. Also included is the ability to set aside and apply reserves, test out rate increase years, and dashboard the results.
The AQUA RATES PLANNER will manage storm-water-related products derived from impervious surface on residential, commercial, or industrial properties and precisely calculate the rate per ERU. The CIP, O&M budget, and debt service cash ﬂows are allocated to customer service classes for complete recapture by customer service class rates. Utilizing the direction of cost allocations and applying the Rates Visualizer, a rate increase can be tested by simply clicking on the target year(s). The Reserves Visualizer automatically calculates a rate stabilization fund or a capital reserve fund – a funding source for CIP projects. These funding sources can be applied on demand.
The ENERGY RATES PLANNER accommodates natural gas utilities robustly, managing revenues from gas meter connections as well as gas service volume charges. The O&M budget, CIP master plan, and customer service class projections are tailored for natural gas utility operations. For ﬁnancial planning purposes, the separation of the operating and capital cash ﬂow projections provides a clear picture of the revenue suﬃciency for each product line and service class combination. Each product line of the utility can be sliced, both in terms of revenue suﬃciency, as well as for the cost-of-service analysis. Rates are instantly calculated and available using the Rates Visualizer.
The ENERGY RATES PLANNER handles both retail electric and wholesale electric customers with the ability to calculate customer monthly minimum charges as well as block-based KWH consumption tiers. The ENERGY RATES PLANNER can also model industrial demand charges, calculate seasonal rates, and automatically apply the cash ﬂows to revenue suﬃciency analysis. The O&M budget, CIP master plan, and customer service class projections are tailored to electric utility operations. The cost-of-service analysis calculates rates for every customer class, from product to cost pool and customer service class, providing powerful what-if rate increase testing using the Rates Timing Visualizer.
The ENERGY RATES PLANNER models any unit-based or volume rate structure associated with renewable energy. The O&M budget, CIP master plan, and customer service class projections are tailored to each type of renewable product. The Visual Cashﬂow Pro Forma combines ﬁnancial inﬂows and outﬂows for enterprise-level fund projections, including reserves. The designated versions of the CIP master plan, O&M budget, and service class projections support the cash ﬂow projections and cost of service analysis. Rates can be calculated on demand, picking target years for rate increases with the Rates Visualizer. Thus, wind, solar, and other renewables are cleanly modeled.