Financial Capability and Performance: Assessing Trends Among North Carolina Utilities

Of 301 analyzed utilities in North Carolina, 51% reported operating revenues less than operating expenditures—operating ratios (ORs) less than 1. Affordability burden and OR were both affected by utilities’ respective population size, population growth or loss rate, and median household income. Annual supplemental funding would be needed to provide all 301 utilities with sufficient revenue to cover operating expenses to ensure ORs are greater than 1. When evaluating consolidation of the utilities into a collective entity, the cumulative revenue of the 301 utilities well exceeded the sum of operating expenses.

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Author Lauren Patterson  

Author Martin Doyle Environmental Sciences and Policy