AWWA JTMGT61358

This slide presentation outlines information on a situation at Charlotte-Mecklenberg Utilities where total demand dropped for two consecutive years due to wetter and cooler weather than usual during the outdoor water season. This led to revenue shortfalls which resulted in fund balance withdrawals and cost cutting. The presentation presents project objectives that include: develop a demand risk profile and apply it to the financial planning model to determine the effects on revenue; balance the risk of revenue shortfalls with the impact of higher rates; and, develop contingency plans if revenues fail to meet projections. Project approach included: Task 1, develop detailed demand projections and variability profiles; Task 2, determine risk tolerance and finalize rate projections; and, Task 3, develop appropriate contingency plans to manage revenue risk.