AWWA JAW36145
Journal AWWA - Managing the Financial Condition of a Utility
Journal Article by American Water Works Association, 04/01/1994
Amatetti, Edward J.
Full Description
The ability of a utility to obtain needed financing depends on its ability to convince the investor market of its creditworthiness. It follows that creditworthiness should be an explicit goal of utilities, like good customer service and an adequate supply of safe water. Managing creditworthiness effectively means managing future financial risk. The source of financial risk in water utilities is discussed, as are ways to lower the financial risk profile over time. The minimization of risk through growth management, effective rate design, and the regulatory process is covered, and the changing role of the financial manager is explained. Includes table.