- Electric Cost-of-Service Rate Study, Glenwood Springs
Burns & McDonnell conducted a cost-of-service and rate study for the City of Glenwood Springs, Colo., electric utility system. The study has included development of a forecast of net revenues for the utility system to determine the adequacy of revenues provided by existing rates for a 10-year forecast period.
Burns & McDonnell identified the overall change in revenue required to provide adequate funding to meet annual operating and capital expenditures, to cover debt service, and to meet to financial targets identified by the city.
Next, Burns & McDonnell completed a cost-of-service analysis to identify the relative responsibility of each rate classification for the recovery of the costs of service for the utility system. The cost-of-service analysis included development of appropriate allocation factors based on statistical units of service and generally accepted allocation methodologies.
The final portion of the study was the design of utility rates that provide revenue recovery sufficient to cover the total system revenue requirement taking into consideration the revenue responsibility indicated by the cost-of-service analysis and the city’s rate design policies and objectives.