Faced by the need to repair and replace aging infrastructure
and at the same time build new systems to
meet population growth, US water utilities must make
increasingly complex decisions about where, when, and
how to invest their capital improvement dollars. What's
more, their decisions must involve a range of stakeholders
and win their "buy in" in order for projects to
receive necessary financial and community support.
A decision-making process has been developed to help
utilities systematically and objectively prioritize capital
improvement projects on the basis of financial risk and
other defensible planning criteria. In addition, the methodology
described in this article enhances both internal and
external communication, can help stabilize rate increases,
and potentially lower bond interest rates by providing
rating agencies with evidence of comprehensive planning.
Water suppliers can use this information to begin
transforming the way they establish and prioritize their
capital improvement programs. By following the step-by-
step approach described here, utilities can turn the
daunting challenge of capital improvement choices into
a process that leads to sound financial policies and
fosters collaborative partnering with their customers
and communities. Includes 2 references, table, figures.
| Edition : | Vol. 98 - No. 1 |
| File Size : | 1
file
, 270 KB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 8 |
| Published : | 01/01/2006 |
