AF Form 3556: Utility Sales Rates Computation Worksheet – The AF Form 3556, titled Utility Sales Rates Computation Worksheet, is a critical Excel-based tool used by U.S. Air Force installations to calculate accurate, cost-based utility sales rates for electricity, water, natural gas, wastewater, and other utilities. Prescribed by DAFMAN 32-1061, Providing Utilities to Department of the Air Force Installations, this form ensures fair reimbursement from various customers while supporting transparent financial management across bases.
Air Force civil engineers, energy managers, and resource advisors rely on AF Form 3556 to determine rates charged to different customer categories, including Military Family Housing (MFH), privatized housing, Non-Appropriated Fund (NAF) activities, Morale, Welfare, and Recreation (MWR), DoD agencies, and non-federal/commercial users.
What Is AF Form 3556 Used For?
AF Form 3556 computes utility sales and reimbursement rates by aggregating:
- Purchased utility costs (from commercial providers, including UESC/ESPC projects)
- Base-produced utility costs
- Operations and Maintenance (O&M) expenses
- Military labor adjustments
- Other utility costs (ancillary services like electricity for pumping water or treating wastewater)
- Line losses, connection fees, capitalized charges, and administrative overhead (typically 3%)
The worksheet supports multiple utility types through dedicated sheets and includes a built-in Other Utility Cost Calculation Worksheet to allocate indirect costs properly.
Key outputs include per-unit rates (e.g., $/kWh for electricity, $/kGal for water) tailored to customer classifications:
- Category A: MFH and Privatized MFH
- Category B: Non-Federal & Commercial
- Category C: Non-DoD Federal
- Category D: DoD Federal (including golf courses in some contexts)
- Category E: MWR (excluding golf courses)
It also tracks the impact of utility provider rate changes (notably those exceeding 5%) and helps forecast costs for future projects.
The form pairs with related documents such as AF Form 3555 (Utility Sales Rates Exhibit) and AF Form 3557 (for annual reviews of utility agreements and rates).
Who Uses AF Form 3556?
- Installation Energy Managers
- Base Civil Engineers (BCE) and their staffs
- CE Squadron resource advisors
- Personnel managing utility sales to tenants, privatized housing, NAF/MWR activities, and external customers
Accurate use of the form supports compliance with DAF policy for providing utilities at fair, cost-based rates while maximizing reimbursement where required (e.g., for certain lodging or commercial activities).
How to Use the AF Form 3556 Worksheet
- Download the Official Form: Access the current Excel version directly from the Air Force e-Publishing site:
Download AF Form 3556.xlsx - Enter Base and System Information: Include the name of the base, specific utility system (e.g., Electric, Water, Natural Gas, Wastewater), energy manager contact details, capitalized investment costs, and maximum annual capacity.
- Input Cost Data:
- Annual costs from purchased and produced utilities
- O&M expenses
- Military labor (with adjustments)
- Other utility costs (using the dedicated calculation sheet for ancillary consumption)
- Apply Customer Classifications and Factors: The form automatically incorporates elements like line losses, connection fees, and overhead based on DAF guidance. Reference Figure 14.1 Utility Rate Factors in supporting publications for chargeability rules (e.g., sole benefit test for infrastructure).
- Calculate and Review Rates: Generate final sales rates per customer category. The Base Energy Manager and Base Civil Engineer must sign the completed worksheet.
- Annual Review and Updates: Conduct reviews (often documented via AF Form 3557) and adjust for significant provider rate changes or new projects. Invoices to reimbursable customers are processed through systems like NexGen IT.
Tip: Document all assumptions clearly, especially in the “Other Utilities” section (e.g., electricity used to pump water). Contact AFCEC for the latest guidance if the online version requires clarification.
Related Air Force Publications
- DAFMAN 32-1061 (current version as of 2025): Primary guidance on providing utilities, rate computation, invoicing, and customer responsibilities.
- AFPAM 32-10144: Additional details on computing utility reimbursement rates and rate factors.
- AFI 32-6000 series: Housing management, including utility reimbursement for privatized and government housing.
Utility rates must align with broader DoD and DAF policies emphasizing reliability, mission support, efficiency, and proper cost recovery.
Why Accurate Utility Rate Computation Matters?
Proper use of AF Form 3556 helps:
- Ensure mission readiness by maintaining reliable utility infrastructure funding
- Comply with fiscal accountability requirements
- Support energy resilience and cost management initiatives
- Facilitate fair billing to tenants, privatized entities, and MWR/NAF operations
- Enable effective budgeting and forecasting for capital projects and rate adjustments
Installations use the worksheet alongside tools like the Utility System Operational Report Tracker (USORT) for comprehensive utility management.
Download AF Form 3556
Official Link:
https://static.e-publishing.af.mil/production/1/af_a4/form/af3556/af3556.xlsx
Always verify you are on the official e-Publishing.af.mil domain when downloading Air Force forms. For questions on implementation, consult your local Civil Engineer squadron or reach out to AFCEC.
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This guide is for informational purposes and is based on publicly available official Department of the Air Force publications and forms as of 2026. Always refer to the latest versions on e-Publishing.af.mil and consult your chain of command or AFCEC for installation-specific guidance.