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Course Orientation and Foundations

Introduction: The Foundation of a Sustainable Utility

What Will I Learn?

Why is the Rate Setting Process Important?

Key Principles of Good Rate Setting

Building a Cost and Revenue Baseline

Determining Your Full and True Costs

Annual Costs Worksheet

Determining Your Current Revenue

Annual Revenue Worksheet

Accounting for Subsidies

Asset Management, Reserves, and Revenue Requirements

Asset Management: A Plan for the Future

Depreciation and GASB 34

Step 3 – Setting Aside a Reserve

Step 4 – Determining Revenue Required from Your Customers

Designing Cost-Based, Fair, and Conservation-Oriented Rates

Considerations for Choosing a Rate Structure

Common Rate Structures

Base Rates and Flow Rates (Fixed and Variable Charges)

Estimating the Amount of Water Used by Customers

Setting Your Rate

Equity and Affordability Considerations

Implementation, Communication, and Governance

Step 6 – Implementing the Rate

Educate Yourself and Your Board First

Educate Your Customers: No Surprises!

State, Territorial, and Tribal Requirements

Performance Review and Continuous Improvement

Step 7 – Reviewing the Rate

The Annual Rate Review Process

The Importance of Strategic Planning

Quizzes

Quiz: Foundations and Principles of Rate Setting

Quiz: Cost and Revenue Determination

Quiz: Reserves, Depreciation, and Revenue Requirement

Quiz: Designing Effective and Fair Rate Structures

Quiz: Implementation, Communication, and Compliance

Final Survey

Course Feedback Survey

Build a resilient, equitable, and financially sound water utility with data-driven rate design. This practical course walks utility leaders, analysts, and board members through a proven, step-by-step process to set cost-based rates that recover full costs, fund reserves, and protect affordability. You’ll learn how to determine your true cost of service, analyze revenue sufficiency, and align fixed and variable charges with usage patterns and conservation goals. We translate guidance from leading rate-setting frameworks into actionable tools—worksheets, templates, and checklists—so you can move from analysis to adoption with confidence. By the end, you will know how to evaluate common rate structures, incorporate asset management and depreciation (including GASB 34 considerations), and forecast revenue requirements that support long-term sustainability. You will also gain strategies to educate boards and customers, comply with state, territorial, and tribal requirements, and implement transparent communication to minimize surprises. Finally, you’ll establish an annual review cadence that keeps your rates fair, defensible, and aligned with changing demand, costs, and community needs. If you’re tasked with achieving stable revenue while advancing equity and conservation, this course provides the roadmap.

Data-Driven Water Utility Rate Design for Sustainable, Equitable Revenue

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            <p>Data-Driven Water Utility Rate Design for Sustainable, Equitable Revenue equips utility managers and governing boards with a rigorous, step-by-step framework to build resilient finances, protect infrastructure, and deliver fair, affordable service. Grounded in best practices and practical tools, the course begins by establishing the foundations of a sustainable utility—clarifying why rate setting is a strategic function, not just an accounting exercise—and distills the key principles that underlie defensible, transparent decisions. From the outset, participants will understand how rate design influences long-term asset health, regulatory compliance, conservation behavior, and the public’s trust.</p>

<p>The curriculum then advances into constructing a reliable cost and revenue baseline, including identifying full and true costs, completing annual cost and revenue worksheets, and accounting accurately for subsidies. With that baseline, the course integrates asset management practices, depreciation concepts (including GASB 34), appropriate reserve setting, and the calculation of revenue requirements customers must support. Participants will evaluate cost-based rate structures—balancing fixed and variable charges, common structure options, and demand estimation—while embedding equity, affordability, and conservation objectives. Finally, the program addresses implementation and governance: educating boards, aligning with state, territorial, and tribal requirements, communicating changes to avoid surprises, and instituting annual review and continuous improvement. Quizzes and a closing survey reinforce learning and promote a durable shift in mindset—from short-term price setting to long-term, data-driven stewardship of the utility’s financial and service mission.</p>
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