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Stormwater Utility (SWU) Basics
- A SWU is a legal entity that can provides services such as:
- management & administration
- finance and billing
- planning and engineering
- regulatory and permitting
- maintenance
- capital improvements
Storm Water Utility: Creation Update AWWU Presentation to the - - PowerPoint PPT Presentation
Storm Water Utility: Creation Update AWWU Presentation to the - - PowerPoint PPT Presentation
Storm Water Utility: Creation Update AWWU Presentation to the Assembly Enterprise and Utility Oversight Committee July 18, 2019 Stormwater Utility (SWU) Basics A SWU is a legal entity that can provides services such as: management
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SWU Purpose
- Provides a mechanism for cohesive drainage management and
coordination and eliminates the shifting of drainage problems from
- ne location to another;
- Provides for a dedicated revenue source for stormwater
management, maintenance, and capital improvements;
- Provides an equitable distribution of the stormwater costs among
stormwater system users and contributors; and
- Provides a way to incentivize good stormwater management
practices, such as utilizing Green Infrastructure and onsite storm water management techniques. Summary of Advantages of an SWU from January 2019 MOA Stormwater Utility Findings Report and Recommendations
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Stormwater Infrastructure is out of site and out of mind…………until it fails………….
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……….then the repairs are expensive, inconvenient, but necessary for safety and public health
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AWWU’s Role
- AWWU has been tasked with initiating and integrating a
SWU into AWWU’s existing utility structure
- Accomplishes multiple Goals:
- Cost efficiencies through economies of scale by utilizing existing
AWWU structures such as billing, customer service, engineering, and finance
- Eliminates the need for a stand-alone Utility; reduces stand up time
and minimizes government footprint
- Utilizes existing Utility expertise such as management, finance and
equitable cost causer-cost payer relationship
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Next Steps
- AWWU is moving forward with Phase 2, Utility Formation, as
recommended in the January 2019 MOA Stormwater Utility Findings Report and Recommendations
- AWWU is soliciting through a Request For Proposal (RFP) to
procure professional services to assist in applying for a RCA required CPCN
- RCA – Regulatory Commission of Alaska
- CPCN – Certificate of Public Convenience and Necessity
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CPCN General Requirements
Required of all Utilities by State of Alaska Regulatory Commission:
- Key Management
- Benefit to Public
- Service Area
- Utility Practices and Procedures
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CPCN: Specific Financial Requirements
- Schedule of Operating Revenues
- Schedule of Operating Expenses
- Plant-in-Service and Depreciation Schedule
- Computation of Utility’s weighted cost of capital
- Computation of Utility's rate base and return
- Revenue Requirement and calculation of proposed rates
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Milestone Schedule
- Create Utility through Municipal Code (initial set-up)
- RFP: Advertised May 2019, Award August 2019
- CPCN Application Submission: March 2020
- RCA Review and approval (6 to 9 months): January 2021
- Public Involvement Campaign (on-going)
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Assembly Ordinances
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Assembly Ordinances
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