AWWA DPOC56492

The American Water Works Association is developing an evaluation system that will recognize those water and wastewater utilities that meet the highest standards of operations effectiveness and management efficiency. This paper describes how a number of the important operational, managerial and public acceptance benefits of accreditation would have a positive benefit on utility finances. Because accreditation would inherently indicate quality in operations and management, for example, accredited utilities would be in a stronger position to request necessary funding from ratepayers and to achieve enhanced credit ratings. This paper focuses most directly on two of these opportunities with the strongest potential for achieving quantifiable financial benefits: the impact of accreditation on bond ratings and resulting debt service expenditures; and, reduced debt service through partnership with SRFs. In addition, preliminary findings are outlined in other areas of potential benefit. Includes 9 references, tables.