Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH COURTNEY & ASSOCIATES FOR THE PREPARATION OF THE CITY'S ELECTRIC RATE AND FUNCTIONALIZED COST OF SERVICE STUDY.
Brief Description: The City's electric rate structure is currently due to be reviewed. Rates are typically reviewed on a five (5) year rotation to evaluate and align with the cost of power and delivery of services to HPP customers. As in the past, the City will utilize the public power consulting firm of Courtney & Associates to prepare an Electric Rate and Functionalized Cost of Service Study and to recommend rate structure adjustments.
Body
Legislative History
None
Purpose & Explanation
The Electric Rate and Functionalized Cost of Service Study scope of work consists of the following items
* Acquisition, review, and verification of historical billing, operating and financial data for the electric department.
* Preparation of a five-year (2020-2024) projection of electric revenue requirements and electric revenues at current rates.
* Preparation of a functionalized cost-of-service analysis to identify, to the extent practical, the unbundled cost of serving each customer class.
* Preparation of detailed electric rate schedules, including terms and conditions of service.
* Comparison of proposed rates to existing rates and rates of adjacent utilities.
The Study will be completed in the following phases over a four (4) to five (5) month period to begin with the execution of the contract.
* Data Acquisition and Verification
* Revenue Requirements
* Cost of Service
* Rate Design
* Final Results and Recommendations
Courtney & Associates consulting fee has been submitted as a time and expense basis at a not to exceed amount of $30,000.00
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint...
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