Helping a water conglomerate utilize COST™ to achieve budget forecasts in multiple territories

Background

A large water company needed a Cost of Service model to provide full details over 20 jurisdictions and to easily expand when additional properties were acquired.

The conglomerate’s individual territories and acquired companies each had unique models that could not be directly compared to each other. Analysts had to spend valuable time learning each model in order to cross-train with the other areas.

The utility engaged MCR to provide a solution allowing for a single model to be used throughout the company’s 20+ jurisdictions.

Solution

To implement the Cost of Service Tool (COST™), MCR developed a revenue requirements model, complete with standard filing schedules for water and wastewater that could be adapted, as needed, to each jurisdiction’s specific requirements while maintaining a single model’s programming.

The model’s revenue requirement feature also allowed the company to develop a forecast for a 2-year budget throughout its territories.

Results

The COST™ model’s easily adaptable formulas and layout allowed the company to have a singular model for various territories.