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Water & Sewer

Authorized Return on Rate Base

Note 1: Where there is little or no water utility net investment rate base upon which to calculate a "reasonable rate of return", a net operating income based on “percent of operation and maintenance expenses” (% of O&M) or "adequate times debt service coverage" (Xdebt) or "adequate times interest coverage" (Xinterest) may instead be used to provide funds for fluctuations in expenses and/or annual debt obligations. Therefore, % of O&M, Xdebt or Xinterest is reported in the authorized return column.

Note 2: For some utilities where there is not an authorized rate of return or net income based on the methods explained in Note 1, the authorized return is reflected as “none”.

If you have any questions or comments, please contact David Prochaska at or 608.266.5739.

excel document(195kb) Rate of Return
pdf document(34kb) Rate of Return