Raftelis was engaged by Des Moines Water Works (DMWW) to review their existing cost-of-service methodology and ultimately develop a new cost-of-service model for the utility. DMWW provides not only retail service within the City of Des Moines but also retail service on a contract basis to some of the close-in Des Moines suburbs as well as wholesale water supply to a majority of the Des Moines metropolitan area. DMWW has increased rates based on factors other than cost of service in some cases so Raftelis has been assisting the utility in developing strategies to move the rates all customers pay back to cost of service.
There has also been a movement in the Des Moines metropolitan area to regionalize the water supply, as has been done previously for the wastewater treatment functions in the region under the Des Moines Metropolitan Wastewater Reclamation Authority. Raftelis has been assisting DMWW with development of potential cost recovery methodologies under such a regionalization.
Raftelis continues to support DMWW with both cost-of-service development for the existing utility and potential cost recovery and contract mechanisms under potential regionalization.
