PRMG - Public Resources Management Group

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Our Services

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Our Services

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Strategic, Financial, Economic,
& Business Planning

PRMG is experienced in developing strategic, financial, economic, and business plans for local government enterprises with the main objective of identifying strategic issues, evaluating business decisions, and promoting the core mission of the utility enterprise.

Our Approach to Business Plans:

  • Mapping the current organizational structure, business and financial model
  • Reviewing existing contracts and agreements
  • Developing performance and financial metrics and/or policies
  • Identifying strategic issues affecting the business
  • Outlining management and action plans to achieve desired short-term and long-term goals

Our Services

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Financial Forecasts
& Business Models

PRMG develops interactive utility business models that are comprehensive and support our client's budgeting and financial reporting process yet are easy to use and update in order to meet our client's specific financial and business objectives. Our models provide the ability to monitor financial trends and evaluate financial targets/performance measures.

Our Business Tools:

  • Allow for alternative cost recovery strategies and financial sensitivity analyses
  • Produce reports for both internal and external use
  • Support management requirements for financial compliance purposes
  • Provide financial performance dashboard for strategic planning and analysis, and presentation of results to utility management

 

 

Our Services

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Cost of Service & Rate Studies

PRMG has prepared hundreds of Cost of Service and Revenue Sufficiency (Rate) Studies for water, sewer, reclaimed water, electric, natural gas, solid waste, and stormwater enterprises that provide service to millions of customers. Aspects of cost of service and rate studies include the preparation of detailed customer forecasts and billing analyses, identification of expenditure requirements to be funded from rates, development of capital improvement funding plans, evaluation of financial performance and policy development, and design of various utility rates and service charges.  PRMG offers exceptional client support throughout all stages of the cost of service process, including development of presentations and participation in the public hearing process for rate approval, assistance in drafting of rate ordinances and resolutions, and other related services.

Our approach to Cost of Service and Rate Studies involves interactive working group meetings with our clients to perform sensitivity analyses, and evaluation of study assumptions that enhance the decision-making process for management.
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We Have Experience in the Development of:

Water and Wastewater Cost of Service and Rate Studies

PRMG has prepared hundreds of Water and Wastewater Cost of Service and Rate Studies for water and wastewater utilities across the Country.Objectives of Water and Wastewater Cost of Service and Rate Studies prepared by PRMG include:

  • Meet the utility system's financial obligations and performance objectives.
  • Maintain the overall financial position consistent with management policies and strategic business objectives.
  • Promote compliance with rate covenant, additional bonds test, and flow funds provisions based on authorizing bond documents and maintain credit rating position.
  • Provide capital for system expansion and renewal and replacement. 
  • Develop equitable and defensible retail and bulk service rates and fees based upon cost of service principles.
  • Encourage and promote conservation of water resources.
  • Incorporate newly-acquired business segments to consolidate utility rate schedules within the expanded service territories.

Services offered related Water and Wastewater Cost of Service and Rate Studies include:

  • Develop comprehensive cost recovery utility business plans.
  • Develop detailed bill frequency and customer usage profiles.
  • Establish water conservation pricing policies.
  • Develop ERC based and meter equivalence based rate structures.
  • Prepare capital financing plans and cost sensitivity analyses.
  • Develop rates designed to recover carrying cost of investment of capital facilities.Conduct public relations programs for customer information and rate impact needs.
  • Develop performance measurements, financial targets and compliance analyses to promote creditworthiness of utility.

Water and Wastewater Impact Fees (Capacity Charges)

PRMG has extensive experience developing water and wastewater impact fees (sometimes referred to as capacity charges). Impact fees developed by PRMG meet the conditions set forth in statutory and case law and are:

  • Designed to meet the "rational nexus" test
  • Designed so that there is not an intentional windfall to existing users
  • Designed, to the extent practical, to only cover the capital cost of construction and related costs (engineering, legal, financing, administrative, etc.) for capital expansions or other additional capital requirements that are required solely due to growth.

PRMG also offers expert witness services in impact fee challenges. Additionally, PRMG has developed numerous line extension and other capital recovery fees for our clients.

Municipal Impact Fee Studies

PRMG has extensive experience developing municipal impact fee studies for different services such as fire, police, recreation, library, and administrative service. Our services also include:

  • Development of non-ad valorem assessments for stormwater, fire, and highway maintenance/districts
  • Development of municipal rates and fees for stormwater, solid waste permitting, building inspection, and various miscellaneous services
  • Development of internal administration cost allocation methods

Wholesale Service

PRMG has extensive experience drafting contracts for service and assisting in negotiation of large user agreements; development of capacity and variable allocation factors for cost apportionment; analysis of avoided cost of utility services; development of bulk rate methods and "true-up" formulas for full cost recovery.

Solid Waste Rate Studies

PRMG offers preparation of solid waste rate studies. Our approach to solid waste rate studies include:

  • Development of rates for full-recovery of cost
  • Allocation costs for disposal (experience in both landfill and waste-to-energy facilities) and collection and recycling services
  • Evaluation of financial objectives and needs of system
  • Analysis for long-term closure / new disposal site development requirements

Our services related to solid waste rate studies include:

  • Development of detailed financial forecasts of solid waste operations
  • Allocation of costs between classes of customers for collection and recycling service
  • Assistance in development of solid waste collection agreements and evaluation of proposals
  • Development of solid waste residential and commercial rates billed as a non-ad valorem assessment
  • Development of other solid waste fees including roll-off fees, license fees, and new customer service initiation fees
  • Development of tipping fees for various waste disposal requirements
  • Assistance in evaluation of public / private service options
  • Assistance in developing and review of collection service request for proposals

Stormwater Client Services

Our services related to stormwater client services include:

  • Development of cost of service rates based on effective impervious service method that recognize runoff contribution by parcel characteristics
  • Evaluation of operating and capital budgets and five-year financial program
  • Development of capital finance plans recognizing funding alternatives such as stormwater enterprise fund revenues and other traditional sources (gas tax revenue, bond financing)
  • Development of detailed customer billing database for program implementation and perform billing audits for application correctness

Reclaimed Water Services

Objectives of reclaimed water rate studies prepared by PRMG include:

  • Comply with regulatory requirements
  • Expand alternative water supply resources
  • Reduce irrigation demands on potable water system
  • Provide for effluent disposal
  • Identify revenue impacts due to new water alternatives
  • Minimize the impact on water and sewer system costs and rates

Our services related to reclaimed water rate studies include:

  • Development of business policies for reuse service
  • Identification of reuse system costs
  • Analysis of least-cost alternative effluent disposal system
  • Allocation of reuse system costs among water, wastewater, and reclaimed water customers
  • Development of reclaimed water rates for bulk, residential and small commercial users (high and low pressure use)
  • Evaluation of the impact of reclaimed water service on water and wastewater sales and revenues
  • Development of service extension policies and ancillary fees and charges
  • Assistance in preparing rate resolutions and ordinances and negotiating reclaimed water service agreements
  • Preparation of rate and fee evaluations for reuse feasibility studies submitted to regulatory agencies

Water Conservation Rates

Objectives of water conservation rates include:

  • Develop rates to provide incentives to eliminate excessive use of water resources
  • Meet the conservation program goals
  • Reflect cost of service principles and equitable distribution of costs to users and customer classes
  • Reduce water system peak demands of system

Our services related to water conservation rates include:

  • Development of rates that encourage conservation for residential, commercial, and multi-family customers
  • Identification of essential, discretionary, and excessive use by customer class for ratemaking considerations
  • Recognition of pricing differentials based on incremental costs, peak use factors, and other means
  • Evaluation of price elasticity considerations based on class of customers and level of use
  • Development of innovative conservation rates using inverted, peak demand surcharge, seasonal and pervious surface area-based rate structures
  • Development of customer usage profiles based on detailed billing data

Electric Rate Studies

PRMG provides electric consulting services to municipal and cooperatively owned utilities that provide electric service. Our services include:

  • Supply cost analyses
  • Cost of service studies
  • Alternative pricing methods that include wholesale and retail:
    • Economic development rates
    • Time-of-use rates
    • Interruptible rates
    • Rates for non-firm economic services
    • Expert testimony before regulatory agencies

PRMG also assists our clients in updating their financial policies and establishing new guidelines for financial performance in competitive business environments. These guidelines include earnings targets, capital funding criteria, and cash reserves optimization.

PRMG prepares electric financial forecasts that allow for evaluation of capital funding alternatives on distribution systems revenue requirements. We also develop analyses to benchmark operating costs with competing regional electric systems.

 

Our Approach to Cost of Service and Rate Studies:

 

 

Our Services

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Regulatory & Rate Case Evaluations

PRMG provides utility rate and utility consulting services associated with the preparation and review of rate case filing before regulatory commissions that have jurisdiction over such rates. PRMG has participated in regulatory and rate case services for major rate and cost of service filings, limited proceedings dealing with a specific set of issues, and price index and pass-through rate applications and has assisted in establishing rules and procedures for rate filings and public – private rate overview agreements. PRMG professionals have served as an expert witness before federal, state and local (county) regulatory agencies regarding the evaluation and recommendation of rates charged for service. Such testimony has included water and wastewater, electric and natural gas proceedings.

Our Services Have Included:

  • Evaluation of rate base (primarily equity funded plant investment), including performance of
    field work to verify plant additions
  • Review of Operating Expenses and associated company / corporate overhead allocations
  • Performance of billing frequency analyses and revenue verification
  • Evaluation of extraordinary adjustments such as property losses, carrying charge analyses,
    acquisition adjustments, and other utility cost adjustments
  • Allocation of costs and design of rates for service, including service availability and
    miscellaneous charges
  • Preparation of expert testimony and serving as an expert witness during the rate deliberation
    process
  • Providing assistance to client legal representatives during the rate preparation and hearing
    process, including the preparation of interrogatories and evaluation of responses provided by
    the utility
  • Providing assistance in rate settlement negotiations

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Business Valuations & Acquisitions

Services provided for supporting utility system acquisition include:

  • Evaluation of customer trends and capacity utilization requirements
  • Review of utility operations
  • Identification of operational efficiencies or economies of scale
  • Development of cash flow/capital improvement program funding analyses
  • Evaluation of sufficiency of rates to support the acquisition
  • Development of going concern and comparable sales and valuation analyses
  • Utility transition services

PRMG has extensive experience preparing acquisition funding analysis for buyers and bond feasibility reports for issuance of debt associated with the purchase of utility systems.

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Bond Feasibility Studies

PRMG has participated in the issuance of billions of dollars of utility financings. Services that we provide include development of financial forecast and bond feasibility studies, additional bonds test analyses, bond compliance evaluations, providing assistance in drafting of bond resolutions and other financing documents, presentations before rating agencies and bond insurance companies, and other related services.

Bond Feasibility studies are important for both the issuer and prospective bond buyers, as they allow the issuing entity to provide full disclosure to rating agencies and lenders, comply with flow of funds, additional bonds tests and rate covenant requirements, and project utility operations over time. The studies also allow for development of alternative funding analyses for debt structuring.

Capital Finance Planning

PRMG has also assisted numerous clients in the development of capital financing plans that:

  • Identify recommended capital re-investment rate based on consequence and risk of failure considerations
  • Balance capital funding requirements with affordability considerations
  • Segregate capital costs between new and existing customers for appropriate funding
  • Develop a detailed construction cost cash flow monitoring and evaluation program

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Litigation, Contract Negotiations,
& Other Services

Contract Negotiations

PRMG has been involved in numerous contract negotiations and drafting of contracts, policies and agreements. Negotiations include capacity sales and leases, service contracts as well as extension policies, and cost recovery programs.

Expert Testimony Services and Litigation Support

PRMG has extensive experience in providing expert testimony and litigation support for utility rate and financial matters. Services include the performance of evaluation of rates, operating expenses, rate base, and rate of return for public entities regarding a rate filing by a franchised utility, providing expert testimony for rate cases for public government intervenors, providing expert testimony during bond validations, rate and fee challenges and other utility needs, as well as other related services.

Contact & Directions

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Address

341 North Maitland Avenue
Suite 300
Maitland, FL 32751

Telephone

Phone: (407) 628-2600
Fax: (407) 628-2610

Email

PRMG@prmginc.com

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Our Process

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Our Process

Based on the client's needs, PRMG prepares a tailored approach to each project we are tasked to complete. The proposed approach for each project is based on PRMG's understanding of the major objectives to be accomplished by the project and is created based on feedback from our client and our experiences with successfully providing consulting services. Our typical process includes:

About Us

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Company Overview

Public Resources Management Group, Inc. (PRMG) is a financial and management consulting firm with a reputation for providing value to our clients.  Founded in 1994, PRMG specializes in strategic, financial, economic, and business planning services, with a focus on the public enterprise sector.

The PRMG team is a multi-disciplinary group of utility business analysts with experience in utility cost of service analyses, capital recovery fees, resource and utility financial planning, and other related areas.  Our experience includes electric, water, wastewater, reclaimed water, solid waste, natural gas, and stormwater business sectors.

We provide client-oriented service and comprehensive analyses to support management and public officials in making important utility business decisions and strategic plans.  Our goal is to provide value to our clients by offering high-quality service at a reasonable cost.

PRMG's Team of Professionals

PRMG offers highly-specialized capabilities, skills, and expertise required to successfully deliver utility business consulting services to our customers.

PRMG's professionals have experience involving a wide variety of consulting projects for numerous public utility clients, including development of utility rates, preparation of financial plans, assistance in securing external funds for capital expansion programs, development of uniform extension policies and developer agreements, development of utility and public service impact fees, presentation of expert testimony on utility financial matters, assisting with contract negotiations, and development of interlocal agreements, and acquisition and establishment of utilities.

Careers at PRMG

Careers

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Careers with PRMG

PRMG is continually looking for talented and dedicated individuals to join our team. It is the PRMG policy to employ the applicant who best meets the qualifications established for a position without regard to race, sex, sexual preference, religion, national origin, marital status or disability; provide opportunities for advancement for all qualified employees, provide safe and pleasant working conditions; compensate employees at competitive salary levels and provide excellent benefits. PRMG is an equal opportunity employer and drug-free workplace.

Qualifications We Are Looking for:

  • Different levels of experience: Entry, mid and senior level professionals
  • Bachelor’s or Master’s degree in Economics, Accounting, Finance, Business, Statistics, or related field
  • Proficient in MS Excel®, Access®, and other related business software applications
  • Ability to interact with team members and clients in a professional manner
  • Strong analytical, mathematical, and problem-solving skills
  • Motivated individuals able to work independently, contribute as team players, and possessing strong communication skills

If interested in joining our team, please submit your résumé via email to hthomas@PRMGinc.com with the subject line "Career Opportunities".