As part the Defining a Resilient Business Model for Water Utilities project, the EFC developed this tool to allow utilities and technical assistance providers to quickly determine the proportion of residential revenues from water sales that may be at risk of loss when residential customers change demand patterns. When residential customers reduce demand, utilities collect less revenue from customer sales than anticipated. Utilities often ask how much of their revenues are really and realistically at risk of loss if their customers lower their consumption. This tool allows utilities and their technical assistance providers to quickly determine these estimates based on the utility’s own rate structure, customer demand profile and weather conditions.
The tool requires only minimal data input and uses simplifying assumptions as well as detailed models developed after analyzing hundreds of thousands of real customer water records to understand how water customers change demand patterns.
This simplified tool is focused solely on revenue projections and assessment. Costs and revenue requirements based on customer classifications are not incorporated into this model. The tool allows the user to compare two different residential rate structures and determine which rate structure offers greater revenue resiliency.
Note: There is not an interactive, web-based dashboard for this tool.
To access the full report associated with these tools, visit the Water Research Foundation website.
To learn how to use the tool, download this example spreadsheet.
View The Tool
Accessibility Statement
The University of North Carolina at Chapel Hill believes everyone in our community deserves equal access to information. Water Utility Revenue Risk Assessment Tool is available to provide data to make decisions for public policy. We are committed to creating an inclusive digital experience. If you are unable to access this information, please contact the Environmental Finance Center for more options.
