Does your utility bill itself for usage in buildings you own? At first, this may sound like an odd question, but let’s look a little closer.
Three possible scenarios
When it comes to your own usage, there are three possible billing scenarios:
- Don’t meter or bill yourself
- Meter the usage but calculate bills using a no charge rate
- Bill yourself at your normal rate for commercial customers
Clearly, the first option is not a good one. If you’re not metering your own usage, you have no way to look for usage trends or, for water utilities, check for leaks.
In my experience, the second choice is far and away the most common. Metering and tracking usage with a no charge rate provides a way to compare usage trends for your own accounts, just as you would with any other customer. Additionally, if you are a water utility and monitor your water loss, your own usage represents non-revenue water that should be tracked.
Why would you bill yourself?
The third option makes the most sense for local governments, especially those that operate their utilities as enterprise funds. Good accounting practice (and the law in some states) frowns on inter-fund transfers, such as the General Fund supporting the Water or Electric Fund.
Since many government buildings (think City Hall, Police Department, Fire Department, Parks and Recreation facilities) are part of the General Fund, “paying” yourself in the form of a utility bill is a perfectly legitimate way to transfer funds from the General Fund to a utility fund.
2017 Utility Fee Survey
The 2017 Utility Fee Survey is still open. If you haven’t already completed it, and would like to participate, please click here to complete the survey. It should take less than five minutes to complete.
If you have any questions, please feel free to e-mail me at email@example.com or call me at 919-232-2320.
I’m hoping for as much participation as possible in the survey, so please feel free to pass this on to your colleagues at other utilities.
Thank you in advance for your participation in the 2017 Utility Fee Survey.
Last chance to register for aging workforce seminar
A major issue facing management of all utilities, large and small, is an aging workforce. As more key employees approach retirement age, utilities across the country are having to face the issue of replacing the loss of institutional and operational knowledge these long-time workers hold.
Does your utility have a plan in place to deal with the aging workforce?
The Utility Management Committee of the NC AWWA-WEA, of which I am a member, is sponsoring an Aging Workforce Issues – Best Practices Panel & Luncheon seminar. This seminar, originally scheduled for last October, has been rescheduled to Thursday, May 4 from 11:30 am to 1:30 pm.
If you are located within driving distance of the University of North Carolina at Chapel Hill, I encourage you to join us. If not, you can still participate in a live webcast of the seminar.
The seminar moderator is J.D. Solomon, PE, CRE, CMRP; Vice President of CH2M. The panelists are:
- Rod Dones, Organizational Development & Learning Specialist, Charlotte Water
- Tamara Byers, Human Resources Manager, Charlotte Water
- Ed Kerwin, PE, Executive Director, Orange Water & Sewer Authority
- Matt Bernhardt, Director of Public Works and Utilities, City of Gastonia
- Courtney Driver, PE, Utilities Director, City of Winston-Salem
For more information, or to register for the seminar, please click here.
North Carolina Rural Water Association presentation
If you or any of your co-workers or board members will be attending the North Carolina Rural Water Association Annual Conference, please be sure to attend my presentation on Improving Revenue Collections for Utilities at 8:30am on Thursday, May 18.
Part of this presentation includes an exercise for calculating how much your security deposit should be, based on your days of exposure.
If you or someone from your utility does attend, please be sure to introduce yourselves!
If, after completing the 2017 Utility Fee Survey, you’re wondering if your fee schedule is up-to-date, or if you need to find ways to reduce your days of exposure, please give me a call at 919-232-2320, or email me at firstname.lastname@example.org for more information about how a business review could help you review your entire office operation.
© 2017 Gary Sanders