Rate Studies

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Sub-standard housing and poverty are commonplace in low-income rural communities. Many of these communities also face daunting challenges to access safe, clean drinking water and to develop other vital infrastructure. These issues are often overlooked in policy because rural communities lack the resources, training or social networks that are found in urban areas. Learn how you can advocate for the under-served population in the West.

Founded in 1978, RCAC is a 501(c)(3) nonprofit organization that partners with rural and Indigenous communities to achieve their vision and well being through technical assistance, training, financial resources and advocacy. For more than 45 years, our dedicated staff and active board, coupled with our key values: leadership, collaboration, commitment, quality and integrity, have helped effect positive change in rural communities across the West. Learn more about who we are and how we operate.

Rate studies

RCAC provides rate studies to water and wastewater utilities to promote utility sustainability, rate stability and fairness to rate payers. While it can be challenging in tough economic times, setting an adequate rate structure is essential for the utility’s sustainability. Rates must recover the “true costs” of providing service, including all operational costs, funding of necessary reserve accounts and debt service, if applicable.

To conduct a rate study, RCAC will review a utility’s current rate structure, historic financial and use information, balance sheet obligations, equipment and planned improvements. From this information and factoring in inflation, a five-year annual cost estimate will be projected. Once the projected costs have been determined, an analysis of the current rate structure’s ability to produce adequate revenue to recover the costs for the five year period will be conducted. Depending on the analysis results, a rate adjustment or alternative rate structure may be recommended.

If you would like to talk to an RCAC environmental staff member about these or other services, refer to our staff directory on the contact page or complete our Request for Assistance.