Rate Modeling & Cost of Service Studies
Rate Modeling and Cost of Service Studies
At Sycamore, we firmly believe that the capital requirements and schedule should drive the financing. The best transactions are the direct result of capital schedules planned well in advance in accordance with regulatory standards and financial capability. Particularly with respect to transactions involving rates and/or user fees, Sycamore offers clients thoughtful analysis and options for reaching their goals.
Sycamore provides recommendations on rate increases and revenue strategies based upon the needs of the capital program and on the resources of the community. This includes recommendations on how best to allocate rates to different classes of ratepayers and proposed rate adjustment strategies and impacts to affected classes. Sycamore works with engineering firms and municipal staff to test the reliability of revenue forecasting assumptions and ensure that the system can support the needed infrastructure improvements over the long term. In a capital program that is largely driven by federal regulatory issues such as a Combined Sewer Overflow Consent Decree, it is essential that the financing team be closely tied to capital planning. In turn, communication to the public and to public officials is a critical part of building support for a sustained period of rate increases.
Please feel free to contact us with any inquiries regarding our services. We look forward to the opportunity to design a custom scope of work depending on your specific needs.