Fixed Costs Versus Fixed Revenue

摘要

The District of Columbia Water and Sewer Authority (DC Water), like many utilities, puts arnstrong emphasis upon Financial Sufficiency and Revenue Stability in their approach to fiscalrnplanning and setting rates and charges. Revenue Stability can be directly linked to the volatilityrnof revenue recovery, which in turn is most likely the result of volumetric charges assessed onrnpotentially volatile customer demand. In 2011, DC Water engaged Raftelis FinancialrnConsultants, Inc. (RFC) to conduct an analysis to evaluate its current revenue recovery and thernrelationship between DC Water’s fixed revenue and fixed costs. This study presents the Fixedrnversus Variable revenues and expenditures for DC Water, evaluates customer impact analyses,rnand offers conclusions on existing revenue recovery and recommendations for future revenuernrecovery.