ABSTRACT
A computer model is an important component of developing a long-term financial plan and rate plan. For purposes of this chapter, the financial planning and rate model used as the case study to demonstrate the rate setting process will be referred to as the “computer rate model.” There are many ways to develop such a model and this chapter will walk the reader through the process of creating a model that can be used to develop rates and also perform various financial planning tasks. A “Dashboard” component is not an essential component of a computer rate model in the strictest sense, but it does facilitate the financial planning process, management reporting, and is highly recommended.
