If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

Your Utility Financial Health Exam: The What, Why, When and How to Achieve Optimal Financial Health

$17.50 plus tax (Refund Policy)

Buy Article:

Abstract:

There are four basic questions surrounding the financial health of a utility:

What does financial health mean for a public sector utility?


Why should a utility strive to be financially healthy?


When should a utility consider itself financially healthy?


How can a utility improve its financial health?


Answering these questions can help utility management understand where they stand and the direction they should head to maximize financial health. While it seems obvious that all utilities would want to be labeled as financially healthy, there are certain aspects of reaching this goal that may have undesirable impacts on rate payers. Public sector utilities must strike a balance between financial health (a cash-rich position) and affordability. The general litmus test for measuring financial health throughout the United States is revenue bond ratings. This paper summarizes some of the rating agencies' key metrics for establishing bond ratings and identifies other measures of financial health. Achieving financial health is not a simple exercise for utility management. Rather, utility managers must be willing to commit to a broad range of actions that focus on enhancing the value the utility provides to its owners, the citizens of the municipality, district or authority where the utility is located. This paper also identifies different options for improving a utility's financial position.

Document Type: Research Article

DOI: http://dx.doi.org/10.2175/193864706783789626

Publication date: January 1, 2006

More about this publication?
  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

    WEF Members: Sign in (right panel) with your IngentaConnect user name and password to receive complimentary access.
  • Subscribe to this Title
  • Membership Information
  • About WEF Proceedings
  • WEFTEC Conference Information
  • ingentaconnect is not responsible for the content or availability of external websites

Tools

Favourites

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more