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United Water at a Glance
• 138 years in the US water market
• 2000: Became wholly owned subsidiary of Suez Group
• Key Highlights
Revenues $535M Total assets $3.1B 2,200 employees Active in 21 States 7.7 Million people served
• Two Business Segments:
Regulated and Contract Services
21 Regulated utilities 145 O&M contracts*
Strategy:
Develop a balanced portfolio of Regulated and Contract Services operations that generate value in line with their risk profiles
* includes 2007 Aquarion and AOS Acquisitions
NYPSC Revenue Reconciliation
• Revenue “decoupling”= Revenue Reconciliation”; Revenue Adjustment Clause (RAC)
• In use for many years for larger NY utilities
• NYPSC “rate year” concept—fully projected rate year starts on effective date of new rates (Statement of Policy)
• New tariffs approved by PSC reflect rate year revenue requirement
• Rockland and Westchester Counties—summer irrigation, summer rates 1.5x
NYPSC Revenue Reconciliation
• Seasonal rate+low fixed charge=revenue volatility
• Post rate year reconciliation—compare actual to forecast metered revenue
• Refund overcollections, surcharge undercollections based on a percentage of the bill (winter months)
• Adjustments for variable costs (purchased water, power, chemicals), change in unbilled revenue and unaccounted for water
• Allows seasonal pricing signals, but protects customers and company