In the water and sewer utility, costs tend to pile up quick and they are seemingly endless if not formidable. As an industry, water and sewer utility services are among the most capital intensive anywhere. There are very few industries in the world where one has to invest so much capital to produce even the [...]
As the Global Water rate case in Arizona unfolds, we are starting to see “under the skirt” of the water utility that is seeking a 34% increase to its approved water rate and 130% for its sewer rate. We were pretty sure that we would see some fireworks in this case given the size of [...]
The cost of equity is an often overlooked aspect of water and sewer rate setting. It isn’t always relevant to the rate setting situation, but when it is it is extremely important and most so-called experts get it wrong. This article explains the cost of equity, and some of our approach to quantifying it.