New York City Water Board
RFC assisted the New York City Water Board (Board) with its rate update for FY 2013. The proposed 7% rate increase was approved by the Board in late March 2012. RFC reviewed the multi-year financial plan prepared by the Board’s other financial consultant and participated in various meetings with Board staff. RFC also prepared a detailed analysis of the impact from shifting away from frontage charges which was incorporated into the rate study. Under the frontage charge approach, multi-family residential customers are charged a fixed rate based on the characteristics of the building (height, width, depth, number of units, etc.). The new approach would still include a fixed charge, but would require a meter and would allow a customer to shift to a metered approach. This analysis was critical because of the cash flow implications.
Currently, RFC is preparing a white paper on conservation rates for the Board. The Board needs to reduce water consumption within the next five years to help accommodate reduced water availability due to a project that will take the Rondout-West Branch tunnel out of service to repair a leak. In addition to the white paper, RFC will offer recommendations for the Board with respect to conservation rates.