Water Rates and Sewer Rates
Trilogy Consulting works with utilities and communities of all sizes to develop water rates and sewer rates that are reasonable, fair, understandable and defensible.
We have worked for many utilities with complex service arrangements and are known for our creative solutions to complicated problems, the high quality of our analysis and the sound basis for our recommendations. Our specialized expertise includes developing new rate structures; financial analysis and negotiations for utility mergers and acquisitions; and successfully defending or challenging rates if they are contested. As a firm that is based in Wisconsin, we are very experienced working in the regulated environment of the Public Service Commission (PSC).
It is our goal not only to prepare an excellent water or sewer rate study, but also to help you implement the rates. That’s why we place an emphasis on clear and understandable presentations, both in our reports and at public meetings.
Services Offered
Project Highlights
Madison Water Utility, Wisconsin - Trilogy performed a full water rate study and long-term plan for the City of Madison Water Utility between 2014 and 2015. This was a comprehensive study that included the following services:
Milwaukee Water Works, Wisconsin - Trilogy led the development of new peak demand ratios for all customer classes that were used within the cost-of-service study and rate design that was submitted to the Wisconsin Public Service Commission. These peak ratios were based on an analysis of hourly demand data that was collected from a sample of customers of each retail customer class (residential, commercial, industrial, public authority) during three different time periods during 2012 and 2013. Hourly demand data for each wholesale customer was also analyzed to determine appropriate peak ratios for use in the cost-of-service study.
Trilogy provided a number of other services during the overall PSC water rate case process, including:
Testimony and briefs were prepared by all parties during summer of 2014, with final implementation of the rates in fall of 2014.
We have worked for many utilities with complex service arrangements and are known for our creative solutions to complicated problems, the high quality of our analysis and the sound basis for our recommendations. Our specialized expertise includes developing new rate structures; financial analysis and negotiations for utility mergers and acquisitions; and successfully defending or challenging rates if they are contested. As a firm that is based in Wisconsin, we are very experienced working in the regulated environment of the Public Service Commission (PSC).
It is our goal not only to prepare an excellent water or sewer rate study, but also to help you implement the rates. That’s why we place an emphasis on clear and understandable presentations, both in our reports and at public meetings.
Services Offered
- Customer Growth and Demand Projections
- Revenue Requirement Determination
- Cash Flow Projections
- Utility Reserve Projections and Analysis
- Cost-of-Service Analysis
- Water Rate and Sewer Rate Design, including
- Conservation Water Rate Pricing
- Wholesale Rate Pricing
- High-Strength Waste Pricing
- Rate Analysis and Negotiations for Service Contracts
- Contested Rate Cases and Expert Witness Services
- Impact Fees and Connection Fees
- Long-Term Capital Improvement Funding Plans
- Equipment Replacement Fund Creation and Analysis
- Customer Demand Studies and Data Analysis
Project Highlights
Madison Water Utility, Wisconsin - Trilogy performed a full water rate study and long-term plan for the City of Madison Water Utility between 2014 and 2015. This was a comprehensive study that included the following services:
- Developing the revenue requirements, including working with utility staff on updating the net investment rate base and working with Wisconsin Public Service Commission staff on acceptance of the proposed revenue requirements;
- Performing a long-term cash flow and rate analysis that would seek to eliminate the need for future rate spikes while maintaining adequate revenue to fund the Utility's significant capital improvement program;
- Performing a full cost-of-service study. This, along with the rate design, utilized data from the Utility's new Advanced Metering Infrastructure (AMI) system that was installed throughout the entire system from 2012 to 2014. For this analysis, the data was used to determine updated peak demand allocation factors for all retail and wholesale customer classes in the system, which had previously been based on outdated assumptions.
- Development and evaluation of alternative rate structures. Again, this analysis utilized the Utilitys' AMI data by taking a detailed examination of the demand patterns within each retail customer class. One of the Utility's goals was to reduce water consumption and implement conservation rates as a part of that effort. The final proposed rates included different rate structures for each customer class, including inclined-block conservation rates for the residential class.
Milwaukee Water Works, Wisconsin - Trilogy led the development of new peak demand ratios for all customer classes that were used within the cost-of-service study and rate design that was submitted to the Wisconsin Public Service Commission. These peak ratios were based on an analysis of hourly demand data that was collected from a sample of customers of each retail customer class (residential, commercial, industrial, public authority) during three different time periods during 2012 and 2013. Hourly demand data for each wholesale customer was also analyzed to determine appropriate peak ratios for use in the cost-of-service study.
Trilogy provided a number of other services during the overall PSC water rate case process, including:
- Preparing written testimony regarding the development of the proposed peak demand ratios, plus oral testimony at the public hearing;
- Meeting with representatives from suburban communities to discuss the rate case and proposed rate increases prior to submitting the application;
- Providing input on appropriate cost-of-service methodology and rate design;
- Providing input on overall messaging and strategy for legal arguments.
Testimony and briefs were prepared by all parties during summer of 2014, with final implementation of the rates in fall of 2014.