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I~ ~~~~ ~7~~"1,+ EFL.AND SEWER 5YS1~EM Proposal ~o Rate Study for Srna~~ wastewater Collection Ut~Nty R~FT~E~"AN~' :~~1'~RI~NC:~ ANT] ~k"F~NC:~S RFC has extensive experience in serving clients on similar engagements across the country. C)ur experience spans cost of service analysis, rate design., conservation rates, benchma~rking and billing. 'I'la.e principals of the fig. have provided assistance tv over 4Q4 water and wastewater utilities. As a result of this experience, we are very familiar with local, national and international issues and challenges that utilities face and we are able to provide our clients with a varier of solutions for their f~nan.cial. Alarming and pri~ng needs. Qur experience allows us to see client issues from different perspectives and to ensure value-added solutions. PROJ~eT DETAILS Grange Water anti Sewer Authority, North Caroli7aa Cast ai" Service Study RF'C assisted the Grange vVatex and Sewer Authority ~"C}wASA"} with the development of Rate Study a rate structure that would rovide meanie incentives to conserve water, but would not Rate Model p ~ have undue adverse rate impacts vn its customers. C~wASA, which had a unifox~n rate REI=ERENCE structurre, wanted tv evaluate a number of different rate structures to determine which Mr. Kevin Ray Director of Finance structure would satisfy the Board of Dixector's objectives. RFC held a workshop for the and Customer Service Board to describe vati.ous conservation rate structures. Based on the workshop and a Orange water antl Sewer Authority conceptual design presentation, the Board directed :RFC to evaluate three alternative rate 20~ Janes Ferry Rand structure scenarios. In order to evaluate these three alternative :rate structures fox QwASA, Carrbaro, NC X751 U Phone; ~9~9~ 53T~~36 tiae revenue requirements were developed by updating a cost of service study. RFC then used bill frequency analyses to dete~e the appropriate block cut offs, seasons, and rates under each alternative. wrth this information, :RFC was able to calculate customer impacts and to approxitx~ate the demand reductions under each alternative. Based or the results of this analysis, the seasonal rate structure was chosen by QwASA as the must beneficial alternative due to its moderate customer impacts, ease of implementation, and additional equity relative to the existing rate structure Eby forcing heavy summer users to bear the cyst burden for the peak demand}. UwASA also asked RFC to review its availability fees. 4wASA uses a unique methodology for calculating availability fees. Based on a study they conducted which found that water use was directly related to size of houses, QwASA bases its availability fees on the square footage of the house. PROJECT DETAILS City of Durham, North Caro~u.a Rate and Financial RF'C has provided professional assistance to the City of Durham, NC ~"City"} since I99G. Planning Model gFC is contently engaged in a study to update the City's existing water and wastewater Miscellaneous Fee Updates Rate and Financial Tanning Model ~"Model"}, originally developed by RFC in 1 ~9G; REI=ERENCE update the City's existing capital. facility fees; and calculate certain miscellaneous utility fees Mr. Terry Ralan and char es. 5 eaficall RFC is a datin the Ci 's Model to both reflect the content cost i.tt~lity D~rectar g p y~ p g ~ City of Durham of utility vpexations and to evaluate the implications of various capital plarmi:ag scenarios. 1a City Hall Playa RFC is also reviewing the City's cost basis and methodology for assessing capital faality Durham, NC 2718 Phone; ~9~9~ 5fi~~438~ fees, and, if necessary, recvrnmending an alternative methodology that is more consistent with the cost of providing capacity for growth. T'h.e study also includes assisting the City to ONSULTANTS, NC.13