Lawrence Park Township Sewer System Rate Study
Lawrence Park Township authorized the preparation of a sewer rate study by Keystone Alliance Consulting. The goal of the study was to develop and recommend a sewer rate structure that would satisfy the sewer revenue requirement of the Township and provide funds sufficient to pay for capital projects or the principal and interest on the sewer portion of the Township’s debt incurred for capital projects.
Keystone undertook the following in connection with the rate study:
• Reviewed the latest financial data, including the current operating budget.
• Determined the annual revenue requirements of the Township’s operations for the study period and allocated those requirements between its fixed and variable components.
• Analyzed the pattern of water customer usage for a 12-month period.
• Incorporated the impact of anticipated capital projects as recommended by the Township’s consulting engineer.
• Compared the revenues projected for the study period under the current rate structures with the annual revenue requirements and quantified any deficiencies.
• Developed alternative rate structures consistent with the goals of the Township.
• Compared the impact of these alternative rate structures on customers at various usage levels.
• Created a rate calculator for the Township’s use that would allow to the annual calculation of a rate which adheres to the principals of this rate study.
As part of this study Keystone Alliance Consulting played a significant role in resolving a long standing dispute between the Township and their largest customer General Electric. During this a new process for cost sharing was developed between the Township and General Electric.
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