Utility Rate Studies for Municipalities
Building Sustainable Utility Systems Through Data-Driven Rate Studies
As utility demands increase across urban and rural communities, municipalities are facing heightened regulations, aging infrastructure, and evolving funding challenges. Many communities are finding that their current rate structures are not designed to sustain long-term operations or meet future demand.
EisnerAmper partners with communities to conduct targeted, data-driven rate studies that go beyond recommending rate structure changes. Through transparent communication, disciplined financial analysis, and sound accounting practices, we help utilities establish financial frameworks that support operational stability and long-term community growth.
Why Rate Studies Matter
Utility rate studies are not just technical assessments; they are essential planning tools that guide the financial stability of water, sewer, gas, and other public utility systems. Recommended every three to five years; rate studies make sure that municipalities align infrastructure investments, operational costs, and rate structures with long-term community goals.
EisnerAmper brings deep experience in partnering with organizations to conduct rate studies that balance fiscal sustainability, regulatory compliance, and public accountability. Our approach transforms data into actionable strategies that strengthen a utility's ability to plan, invest, and communicate effectively.
For rural and at-risk systems, rate studies often become the foundation for unlocking infrastructure funds, restoring regulatory compliance, and rebuilding trust with ratepayers, boards, and funding agencies. With EisnerAmper's guidance, these studies move beyond financial tools; they become roadmaps for resilience and long-term utility health.
A well-executed rate study helps utilities:
Our Approach
EisnerAmper’s approach to utility rate studies combines financial data input, regulatory awareness, and practical implementation. Our team specializes in helping utilities translate complex financial and operational challenges into clear, actionable plans that accomplish sustainable results.
Whether supporting rural water systems seeking long-term sustainability or utilities in need of financial stability, our team develops unique strategies tailored to each utility’s unique environment and community priorities while focusing on fiscal responsibility and the lasting impact.
Utility Rate Study Capabilities
Comprehensive Financial Forecasting
We develop short- and long-term financial viability forecasts that capture customer trends, operational costs, and capital projects. These forecasts give utilities a clear understanding of their fiscal outlook and help guide decision-making related to funding, affordability, and rate adjustments for years in the future.
Rate Structure Review & Affordability Analysis
EisnerAmper evaluates existing rate structures for alignment with operational and capital needs for long term sustainability and streamlined billing. Using data-driven affordability analysis based on usage trends and community attributes such as income; we help utilities design rate strategies that balance financial stability with fairness to ratepayers.
Corrective Action & Policy Development
When municipalities are faced with challenges such as redistricting utilities or financial and regulatory changes, EisnerAmper assists in developing corrective action plans that align with state and federal funding requirements, such as ARPA. We also help establish or revise financial and reserve policies to build and manage capital and emergency funds.
Operational Governance & Compliance
Our expertise extends beyond rate analysis. We support organizations in strengthening their governance structures and aligning financial operations with utility compliance standards. This includes collaborating with engineering and legal partners to make sure financial models reflect infrastructure and capital improvement timelines.
Delivering Practical, Fundable Solutions
EisnerAmper’s rate studies focus on best practices that are both practical and fundable for the unique challenges facing utilities. Our team supports organizations in developing grant-aligned financial forecasts, establishing reserve policies tailored to their specific risk profiles, and producing deliverables that strengthen internal decision-making and external accountability.
Is Your Utility Financially Sustainable?
Understanding when it might be necessary to conduct a rate study is key to maintaining fiscal balance, compliance, and infrastructure upkeep. Below are some questions to ask to determine if a rate study is appropriate.
- Do rates recover the full cost of service?
- Is there a minimum sustainability factor in place?
- Are reserve policies established and funded?
- Is long-term capital planning funded and forecasted?
- Has affordability been measured and addressed?
- Are state or federal funding requirements met?
What's on Your Mind?
Start a conversation with the team