TFTT Report
New Resource Answers Most Frequently Asked Questions About Utility Valuation Reform
Utility valuation reform – often referred to as Fair Market Value – establishes a clear process for independent appraisal experts to calculate a reasonable and fair value for water and wastewater systems. This ensures local governments and taxpayers get a fair deal for their assets if they wish to sell.
While the benefits of utility valuation reform are clear, we’ve heard some good questions about the process and about why so many states are adopting this reform.
A new Truth from the Tap resource answers the most commonly asked questions about utility valuation reform, including:
- What is the difference between selling a system at fair market value versus selling it at book or appraised value?
- How many states have utility valuation reform?
- What impact does selling a system have on rates?
- Is valuation reform only for distressed systems?
Short case studies from communities across the country that have adopted utility valuation reform are also included in the resource, which is available for download here in the Truth from the Tap Utility Valuation Reform microsite.