Understanding and communicating the interplay between water use and conservation, rates, and revenue stability can be a challenge for many utilities. As customers use less water through conservation, revenues decline. There is a need for utilities to promote and track water use conservation, and be able to quantify the portion of revenues that may be at risk of decline with decreasing demands. Finally, utilities should be able to plan to mitigate these revenue risks and communicate these plans to their boards and customers.
The Environmental Finance Center and the Alliance for Water Efficiency have a suite of fare-free tools to assist water utilities in evaluating water use, rates, and revenue risk. This half-day workshop included a discussion and demonstration of four tools designed to help the resource-limited financial savvy utility manager:
- AWE's Water Conservation Tracking Tool
- EFC's Water Utility Revenue Risk Assessment Tool
- AWE's Sales Forecasting and Rate Model
- EFC's Utility Financial Sustainability and Rates Dashboards
Presenters included Jeff Hughes and Shadi Eskaf of the EFC, and Mary Ann Dickinson and Bill Christiansen of the Alliance for Water Efficiency.