Environmental Finance Center Receives Funding for Water Utility Financing Study

The Environmental Finance Center (EFC) has been awarded $250,000 in funding by the Water Research Foundation for a study to define new approaches and models for water utilities in addressing current and future financial challenges. The economic recession, reductions in water demand, weather variability, and other factors all characterize the “new normal” under which water utilities now operate.

The EFC research team will work on defining a resilient business model for water utilities founded on integrated financial and management practices, systems, and processes adapted for this new environment.

The EFC will partner with Raftelis Financial Consultants Inc. (RFC). Twenty-six utilities of varying size, governing structures, business models, and geographic locations—throughout the United States and in Canada—will serve as advisors and subjects of the research. The project, initiated in November 2011, will be active through April 2013.

The EFC supports local governments by helping them identify ways to leverage their efforts through sustainable financing mechanisms, private investment, or projects that can recirculate funding, such as revolving loan programs that promote job creation. The work of the EFC is focused on a variety of environmental areas including water resources, energy solid waste management, air quality, and land conservation.

Raftelis Financial Consultants was established in 1993 to provide financial, pricing, and management consulting services to public and private water and wastewater utilities. RFC has been instrumental in developing utility best practices in the areas of financial planning and rate setting.

The Water Research Foundation sponsors research to help water utilities, public health agencies, and other professionals provide safe and affordable drinking water to the public.

For more information about the project, contact Jeff Hughes (pictured above), director, Environmental Finance Center, at 919.843.4956 or jhughes@sog.unc.edu.