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Rate and Connection Fee Studies

Regulatory-Compliant Rates and Fees Tailored for Every Jurisdiction

Fair, equitable, and sensible rates, which ensure revenue stability, play a key role in adequately funding water, wastewater, and stormwater operations and maintenance, while encouraging conservation. Our rate-making approach is to balance equity among rate payers and revenue stability for the jurisdiction, while meeting the requirements of Proposition 218.

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Rate Studies:

HF&H’s rate work is supported by extensive experience with utility operations and resource management. At HF&H, we work with each jurisdiction to tailor our rate models and rate structures to meet their individual needs. We do not rely on a cookie-cutter approach.

We produce simple spreadsheet models which consolidate the inventory, cost, and acquisition date information for the existing facilities and expansion plan, respectively.

Connection Fee Studies:

HF&H derives connection fees which equitably allocate the cost of capacity between current rate payers and growth. The connection fees typically include a buy-in component for existing capacity as well as a component for additional capacity required by growth. Our calculations reflect the capital improvements identified in the jurisdiction’s master plan and other known capital improvement plans during the planning period, which is typically five to ten years.

We produce simple spreadsheet models which consolidate the inventory, cost, and acquisition date information for the existing facilities and expansion plan, respectively.

Is Your Connection Fee Revenue Less Than It Should Be?

HF&H recently conducted a water connection fee study for a city which had not updated its water connection fee in over 20 years. Our review found the cost of capacity for a single-family residence was 5 times higher than the city was currently charging.

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Client Success Stories