Understanding Customer Billing Data

Transcription

1 Understanding Customer Billing Data Florida Water Resources Conference By: Joe Williams April 24,

2 Uses of Customer Billing Data Establishing a basis Usage Trends Historic & Future Growth Revenue Forecasting Rate Design 2

3 Usage Per Capita (GPD) Industry Usage Trends All Systems Average Year * Source: U.S. Water & Wastewater Rate Survey, Raftelis Financial Consultants and AWWA (since 2004) 3

4 Approach Billing Frequency Analysis What is happening in the system? Identifies salient customer characteristics» By class and equivalency: events & consumption What is needed?» 12 consecutive months of billing data Is the data reliable?» Scrub data for outliers and adjustments Extremely high use Billing adjustments (leaks) Special agreements 4

5 Scrubbing Are the adopted rates being applied correctly? Has the billing system been appropriately programmed? What special agreements does the utility have? Examples: Discovered error for billing larger meters water usage blocks» Who is filling out the rate tables for the billing system?» Has the rate structure been properly explained? 5

6 BF Results Event and Flow Frequency Chart 6

7 BF Results Event Frequency Table Average Monthly Use: 4,200 Gallons Median Monthly Use: 3,000 Gallons Only 7.8% use above 10,000 Gallons Consumption Level Annual Events Percentage Cumulative Percentage 0 32, % 11.5% 0 1k 34, % 23.5% 1k 2k 36, % 36.4% 2k 3k 41, % 51.1% 3k 4k 37, % 64.2% 4k 5k 27, % 73.9% 5k 6k 19, % 80.7% 6k 7k 12, % 85.2% 7k 8k 8, % 88.4% 8k 9k 6, % 90.6% 9k 10k 4, % 92.2% 10k 11k 3, % 93.5% 11k 12k 2, % 94.5% 12k 13k 2, % 95.3% 13k 14k 1, % 95.9% 14k 15k 1, % 96.5% 15k 16k 1, % 96.9% 16k 17k 1, % 97.3% 17k 18k % 97.6% 18k 19k % 97.9% 19k 20k % 98.1% 20k 30k 3, % 99.3% 30k 40k 1, % 99.7% Above 40k % 100.0% 7

8 Customer Characteristics Example 1 Determine average cost per thousand gallons Rate structure appropriateness (Base vs. Consumption) Example 1 8

9 Customer Characteristics Example 1 Distribution of classes and flows: Single Family Mobile Home Inside Mobile Home Outside Multifamily Nonresidential % of Total Customers 58% 13% 21% 4% 4% Average Use per Month 4,200 2,700 2,800 3,600 7,000 9

10 Customer Characteristics Example 2 Determine average cost per thousand gallons Rate structure appropriateness (Base vs. Consumption) 10

11 Occupancy vs. Weather BF Results Seasonal Trends Winter/Spring Summer/Fall Feb Mar Apr Aug Sep Oct Average Consumption Percent of Bills Less than 3,000 Gallons 4,300 4,200 5,100 3,300 3,500 3, % 45.9% 37.7% 62.4% 59.4% 65.5% 11

12 BF Results Drilling Down Example within Single Family class Water Only, Water, Sewer, Reclaimed Water and/or Irrigation Indoor Use: 5,000 Outdoor Use: 10,000 12

13 BF Results Bill Impacts Understand Median and Average Impacts Larger user bill impacts Elasticity (potential responses) Provides ability for both Transparent and Focused messages 13

14 BF Results Other Uses Sensitivity analysis Basis for consumption projections Weather patterns Conservation trends httpimage/image.jpg_gen/derivatives/landscape_490/image.jpg 14

15 Forecasting Consumption Description Wet Weather Scenario No. of Customers 12,002 12,062 12,122 12,183 12,244 Use per Customer per Month (1,000 Gallons) Total Annual Consumption (1,000 Gallons) 684, , , , ,900 Dry Weather Scenario Number of Customers 12,002 12,062 12,122 12,183 12,244 Use per Customer per Month (1,000 Gallons) Total Annual Consumption (1,000 Gallons) 823, , , , ,600 15

16 Forecasting Revenues Projected Fiscal Year Ending September 30, Description Wet Weather Scenario $5,490,000 $5,597,100 $5,622,200 $5,647,500 $5,672,900 Dry Weather Scenario $5,914,200 $6,030,000 $6,057,200 $6,084,600 $6,112,000 16

17 Key Takeaways Critical for rate studies Useful for engineers to understand Promotes credibility 17

18 Contact Joe Williams Consultant Raftelis Financial Consultants, Inc. Casselberry, FL Office: