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l~ o~••~° ~ ~•••. A £ ~"~f ta~•NJ EFLAND SEWER SYSTEM Proposal for Rate Study for 5rnall Wastewater Collection Utility RELEVANT EXPERIENCE AND REFERENCES RFC has extensive experience in serving clients on similar engagements across the country. Our experience spans cost of service analysis, rate design, conservation rates, benchmaxking and billing. The principals of the firm have provided assistance to over 400 water and wastewater utilities. As a result of this experience, we axe very familiar with local, national and international issues and challenges that utilities face and we are able to provide our clients with a variety of solutions for their financial planning and pricing needs. Our experience allows us to see client issues from different perspectives and to ensure value-added solutions. PROJECT DETAILS Orange Water and Sewer Authority, North Carolina Cost of Service Study RFC assisted the Orange Water and Sewer Authority ("OWASA") 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 on its customers. OWASA, which had a uniform rate REFERENCE structure, wanted to evaluate a number of different rate structures to determine which Mr. Kevin Ray Director of Finance structure would satisfy the Board of Director's objectives. RFC held a workshop for the and Customer Service Board to describe various conservation rate structures. Based on the workshop and a Orange Water and Sewer Authority conceptual design presentation, the Board directed RFC to evaluate three alternative rate 200 Jones Ferry Road structure scenarios. In order to evaluate these three alternative rate structures for OWASA, Carrboro, NC 27510 Phone: (919) 537-4236 the revenue requirements were developed by updating a cost of service study. RFC then used bill frequency analyses to deterlniue the appropriate block cut-offs, seasons, and rates under each alternative. With this information, RFC was able to calculate customer impacts and to approximate the demand reductions under each alternative. Based on the results of this analysis, the seasonal rate structure was chosen by OWASA as the most beneficial alternative due to its moderate customer impacts, ease of implementation, and additional equity relative to the existing rate structure (by forcing heavy summer users to bear the cost burden for the peak demand). OWASA also asked RFC to review its availability fees. OWASA 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, OWASA bases its availability fees on the square footage of the house. PROJECT DETAILS City of Durham, North Carolina Rate and Financial RFC has provided professional assistance to the City of Durham, NC ("City") since 1996. Planning Model RFC is currently engaged in a study to update the City's existing Water and Wastewater Miscellaneous Fee Updates Rate and Financial Planning Model ("Model', originally developed by RFC in 1996; REFERENCE update the City's existing capital facility fees; and calculate certain miscellaneous utility fees Mr. Terry Rolan and char es. S eaficall RFC is u datin the Ci 's Model to both reflect the current cost Utility Director g P Y~ P g ty City of Durham of utility operations and to evaluate the implications of various capital planning scenarios. 101 City Hall Plaza RFC is also reviewing the City's cost basis and methodology for assessing capital facility Durham, NC 27701 Phone: (919) 560.4381 fees, and, if necessary, recommending an alternative methodology that is more consistent with the cost of providing capacity for growth. The study also includes assisting the City to CONSULTA TS, NC.13