1. www.efc.unc.edu Public Enterprise Revenue and Rate Trends Jeff Hughes Environmental Finance Center School of Government University of North Carolina jhughes@sog.unc.edu 919 843 4956 www.efc.unc.edu

3. Presentation The Enterprises Water Wastewater Stormwater Electricity A dash of trash… The Outline State of rates State of revenues Notable trends

4. State of Rates Water and Wastewaterhttp://efc.unc.edu/RatesDashboards/ nc.htmlhttp://efc.unc.edu/RatesDashboards/ nc.html Stormwater http://efc.unc.edu/tools.htm#nc_stormwater_dashboard Electricity http://efc.unc.edu/projects/NCElectricityRatesDa shboard.htm http://efc.unc.edu/projects/NCElectricityRatesDa shboard.htm

5. Trends Revenue increases Attention to fixed vs. variable revenue Decreasing sales Rate increases More attention on role of municipal utilities

7. 4.0 4.5 5.0 1980198219841986198819901992199419961998200020022004 Billed Water (MGD) Trends

8. The challenge of driving revenue increases through rate increases : HH rate versus revenues increases (2004 to 2010) Preliminary Results Data 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

9. 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

10. Charlotte-Mecklenburg Utilities Water and Sewer Revenues Fixed versus variable Data sources: Mickey Hicks, CFO, Charlotte-Mecklenburg Utilities

12. Annual Rate Increases

13. Outside service getting more attention

14. Do prices reflect the true cost of water?