Getting Rates Approved in the Big Easy Isn’t Easy

摘要

The Sewerage and Water Board of New Orleans (SWBNO) is facing significant capital demandsrnto upgrade a system that has been undercapitalized for decades and severely damaged byrnfloodwaters following Hurricane Katrina. At the same time, its financial position has beenrncompromised due to a significantly smaller population base from which to recover these costs.rnTo determine the amount of revenues needed to fully restore the system, the Board of Directorsrnapproved a comprehensive financial planning and rate study (Rate Study), which has expandedrnin scope and increased in duration due to the challenges associated with gaining approval for thernproposed rate increases. Utility managers need to be prepared for the various twists and turnsrnthat can occur during a rate setting process due to competing interests among and between keyrnstakeholder groups. A strong working relationship between utility staff, key stakeholders, andrnthe consultant will help the utility to meet and overcome these challenges.