Cost of Service / Rate Studies

Our approach is based on the premise that there are two separate issues involved in this area:

  • Cost of Service, or how much revenue must be raised, and
  • Rate Design, or (once revenue needs have been defined) who should pay how much?

We believe that expenses drive revenues, and that cost of service is tied to operating and capital budgets and must take into account properly allocated indirect costs.  We have developed rate structures based on both cash and utility rate approaches.  All data sources and assumptions are clearly identified, and extensive public participation, under client control, is emphasized.

While primarily working within the Mid Atlantic region, MFSG has performed cost of service/rate and bond studies for many major municipalities and entities across the nation:

Mid-Atlantic Clients

National Clients

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