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Financing
scenario spreadsheet (xls)
(How
to use the spreadsheet - pdf; 40 KB)
Interactive, Online Dashboard to Using a Capital Reserve Fund to Avoid Rate Shock
The EFC assisted the Corinth Gas and Water Department
(CGWD) to develop a cash flow analysis for their plan to replace their
groundwater source with surfacewater from the Tennessee - Tombigbee
Waterway.
EFC staff produced a spreadsheet model that shows how
various financing scenarios for the project would impact CGWD’s
cash flow. (View
the model; xls)In particular, the model helps CGWD answer the questions:
What is the lowest possible rate increase needed each year to maintain a positive balance in all years of the project?
and
What affect will the capital reserve fund have on rate increases and the amount of funding required?
The EFC also helped CGWD gauge the perceptions of the five nearby utilities regarding the surface water project and to investigate how the existing capital reserve fund could be used to finance the project.
EFC staff met with various representatives and stakeholders from these utilities to discuss the project. EFC also conducted an analysis of utility expenditure and groundwater usage in order to determine potential impacts for the utilities if they choose to purchase surface water.
For more information on this project, contact Stacey Isaac Berahzer.
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