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    Utility Rate Setting for Cost Recovery and Conservation in NC

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A summary of research support services for the NC State Water Infrastructure Commission
Final Report
(pdf)

In the summer of 2008, the North Carolina General Assembly passed House Bill 2499, commonly known as the 2008 Drought Bill, into Session Law (SL) 2008-143. Among other requirements, the law requires local governments and large community water systems to have full-cost pricing in order to be eligible for state funds for water infrastructure. In addition to covering the costs of operations, maintenance, repair and debt service, the legislation further recommends that the water rate structure support water conservation efforts. In support of this legislation, the State Water Infrastructure Commission (SWIC) engaged the Environmental Finance Center at the UNC School of Government (EFC) to study the relationship between water rates and water use, as well as to provide recommendations on how state funders can evaluate utilities' water rates and pricing in light of the legislation. This research was conducted between March 2009 and the end of June 2009. This report linked above is a summary of that study.

Results: Rate Design Guidelines (pdf)

Analysis for the report included:

Background

June 19, 2008 Presentation to SWIC Members (pdf)

EFC research on drought surcharges

NC Annual Rates Surveys

More rates...

Shadi Eskaf and Mary Tiger were the analysts working on this study.
Please contact us for more details.