Utility Rate Studies
Is your utility letting revenue go down the drain?
Are your utility revenues keeping pace with rising costs? Schenck can help you prepare a utility rate study filing with the Public Service Commission of Wisconsin so your utility can improve your rate of return and enhance your revenue.
Studies involve minimal time investment from you and your staff—but can result in significant enhancements in revenue to your utility. As part of our fee, we will assist with communications with the Public Service Commission of Wisconsin, and will appear at any required hearings.
Our government services team focuses on meeting the audit, accounting and advisory needs of government organizations across Wisconsin. Let us put our expertise to work for you to help your utility earn the revenue you should be earning.
To learn more, contact Tom Karman, CPA, at 800-676-0829.
Utility Rate Study FAQs
1. What types of utilities can Schenck complete rate studies for?
On an annual basis, we assist a number of municipalities in the preparation of water and electric rate filings with the Public Service Commission of Wisconsin (PSC). However, we also assist a number of municipalities in the development of utility rates for non-regulated wastewater operations.
2. What information will you need from me?
For any filings with the PSC, the PSC has established standard water and electric templates into which they will import a significant amount of historical information relating to your utility. Typical information we will need from you would be sales information by customer class, budgeted revenues and expenses of the utility, the estimated cost of any capital improvement projects and the methods of financing those projects.
3. How long does the process take?
Once we set a date to start the process, we would expect to spend one or two days at your location to gather the information required to complete the application. We would then review the results with you to determine if the final outcome is acceptable. After your approval, we would file the application with the PSC. Our participation in the process will continue as PSC staff review the application and present follow-up questions. Our stated fee will include continued correspondence with PSC staff through the final development of new rates. We will also appear at the public hearing with the PSC and testify on behalf of the utility, if so desired.
4. Who needs to get involved to complete the rate study?
Rates studies tend to be a joint effort between the financial staff of the utility, the utility superintendent or general manager, and the consultant. Therefore, it will be important that utility management be available during the time the application information is being gathered.
5. What is the cost?
For utilities that only need an increase in rates due to increases in expense or decreases in revenues, the cost typically ranges from $4,000 to $7,000, depending on the size and complexity of utility operations. For utilities that require an increase in rates as a result of significant capital projects, the cost typically ranges from $5,000 to $9,000, depending on the size and complexity of the project and utility operations.
Contact us today to find out if a rate study can benefit your utility.