Full Description

This paper describes how the management team at Jamaica Water Supply Company was successful in obtaining a lower cost debt structure, embarking on an aggressive capital replacement program, and installing over 104,000 meters into customers' homes who were previously flat rate customers over a span of ten years. During this campaign, management installed numerous volatile organic compound treatment facilities throughout its service territory as well as faced the ever increasingly stringent federal, state and local health regulations that resulted in spiked capital spending during the 1980's. The aging of the water system infrastructure along with tighter environmental requirements contributed to the industry's evolution in the United States. In addition to increased outside contractor costs exceeding the level of general inflation, this management team had to deal with increased union salary and benefit demands including post retirement benefit costs. All of these upward pressures on the cost of service required funding which was solved by including them in internally generated funds through rate relief. This management team was highly successful in the rate-making arena thereby sending rates into a steep escalating spiral from year to year. Also discussed are the team's efforts regarding outreach to its customer base explaining the reasons for the significant increase in the average annual water bill.

Product Details

Edition: Vol. - No. Published: 06/01/2001 Number of Pages: 10File Size: 1 file , 260 KB