Maintaining a financially sound utility is imperative for public health and safety. This task has gotten more challenging in today’s economic environment.

GAI’s utility rate and financial analyses services range from calculating and implementing cost-of-service based rates and charges that satisfy regulatory and bond covenant requirements, to the preparation of multiyear financial forecasts used for budgeting and strategic planning.

These services are required by utilities for various reasons, such as ensuring sufficient recovery of expenditure requirements, establishing equity among ratepayers, improving administrative efficiencies, and estimating the financial impacts of future capital improvement needs. For water and wastewater utility systems with significant capital needs (i.e. capacity expansion projects, acquisition of other utility systems, etc.), such capital requirements are often funded with the issuance of revenue bonds. The terms under which the bonds are issued are a function of market conditions as well as the financial feasibility of the project.

GAI provides services associated analyzing the financial impact and resulting feasibility of funding capital projects with debt, preparing written documentation in the way of a Consulting Engineer’s Report, and providing presentations to applicable rating agencies and bond insurers to promote the proposed funding and assist the client in securing good credit ratings.

To learn more, view our Utility Management Consulting Feature Projects.