public enterprise revenue and rate trends
DESCRIPTION
Public Enterprise Revenue and Rate Trends. Jeff Hughes Environmental Finance Center School of Government University of North Carolina [email protected] 919 843 4956 www.efc.unc.edu. Presentation. The Enterprises. The Outline. State of rates State of revenues Notable trends. Water - PowerPoint PPT PresentationTRANSCRIPT
www.efc.unc.edu
Public Enterprise Revenue and Rate Trends
Jeff HughesEnvironmental Finance Center School of GovernmentUniversity of North [email protected] 843 4956www.efc.unc.edu
Presentation
The Enterprises• Water• Wastewater• Stormwater• Electricity• A dash of trash…
The Outline• State of rates• State of revenues• Notable trends
State of Rates
• Water and Wastewaterhttp://efc.unc.edu/RatesDashboards/nc.html
• Stormwaterhttp://efc.unc.edu/tools.htm#nc_stormwater_dashboard
• Electricity http://efc.unc.edu/projects/NCElectricityRatesDashboard.htm
Trends
• Revenue increases• Attention to fixed vs. variable revenue• Decreasing sales• Rate increases• More attention on role of municipal utilities
1998 (n=498)
1999 (n=496)
2000 (n=498)
2001 (n=500)
2002 (n=501)
2003 (n=504)
2004 (n=0)
2005 (n=0)
2006 (n=498)
2007 (n=485)
2008 (n=478)
2009 (n=501)
2010 (n=491)
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000Total Operating Revenues
Linear (Total Operating Revenues)
Total Operating Expendi-tures
Linear (Total Operating Expenditures)
Fiscal Year (FY)
$ (M
illio
ns)
Data analyzed by the Environmental Finance Center at the University of North Carolina.Data source: NC Department of State Treasurer-Local Government Commission
4.04.55.0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Bill
ed W
ater
(MG
D)Trends
The challenge of driving revenue increases through rate increases:
HH rate versus revenues increases (2004 to 2010)
0% 25% 50% 75% 100% 125% 150%
-50%
-25%
0%
25%
50%
75%
100%
125%
150%
% Water Bill Increase for 10 ccf/month (from 2004 to 2010; wintertime rates)% W
ater
Rev
enue
Incr
ease
(fro
m 2
004
to 2
010)
Preliminary ResultsData analysis by the Environmental Finance Center at the University of North Carolina.Data sources: 2010 and 2004 RFC/AWWA Water and Wastewater Rates Survey Data for 82 Utilities
Fixed versus variable
Data analyzed by the Environmental Finance Center at the University of North Carolina. Data source: Each utility’s customer billing records, project funded by NC Urban Water Consortium
Charlotte-Mecklenburg Utilities Water and Sewer Revenues Fixed versus variable
2009 2010 2011 2012*0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VariableFixed
Data sources: Mickey Hicks, CFO, Charlotte-Mecklenburg Utilities
Annual Rate Increases
Outside service getting more attention
Do prices reflect the true cost of water?