City of Austin

Austin, Texas, United States

Raftelis conducted a water and wastewater cost of service rate study for the City of Austin Water Utility (AW). The project included cost of service and rate studies for the water and wastewater utilities and development of cost of service and rate models. Raftelis led/facilitated 10 public meetings each to educate the Public Involvement Committee (PIC) and the Wholesale Involvement Committee (WIC) about issues relating to cost of service methodologies and rate design. Raftelis prepared and presented information on select topics to PIC, WIC, and the AWU Executive Committee. These topics included: utility versus cash basis revenue requirements, fire protection costs and allocation, water use costing, test year selection, wholesale versus retail cost assignments, etc. The final product included a cost of service rate model for future use by AW.  

Raftelis has also assisted the City and AW in litigation brought by four of its wholesale water and wastewater customers before the Texas Public Utilities Commission. The litigation centered on the types of costs included in the revenue requirements that are allocated to both retail and wholesale customers. Raftelis provided expert witness testimony and support that included a detailed assessment of the revenue requirement determination and costs of service processes.