The Water Research Foundation

Buyer seeks to understand system development fees and upgrade requirements across water utilities in North America. Research will analyze different methodologies for collecting funds from developers and their impacts on existing ratepayers and new customers. The project will evaluate the pros and cons of different approaches including pay-as-you-go versus depreciation accounting. Buyer aims to develop a framework to help utilities determine which policy options best meet their community needs and values.

• 3/4/2025 - Date Posted
• 5/7/2025 - Proposal Due Date

• Conduct literature review on system development fee methodologies
• Investigate state-enabling legislation for system development fees
• Collect utility data on development fees across North America
• Survey utilities on development fees and infrastructure requirements
• Analyze methodologies across different utility governance structures
• Evaluate impacts on existing and new customer bases
• Assess impacts on low-income ratepayers
• Compare infill versus greenfield development fee approaches
• Evaluate Buy-In, Incremental Cost, Hybrid, and No Fee approaches
• Compare pay-as-you-go versus depreciation accounting practices
• Analyze financial, accounting, economic, and legal implications
• Develop framework for utilities to determine optimal fee policies
• Prepare case studies highlighting diverse methodologies
• Create white paper summarizing research findings
• Conduct webcast to disseminate research results