Raftelis assisted the New York City Water Board (Board) and the NYC Municipal Water Finance Authority (Authority) with rate updates for FY 2013 and 2014, and subsequently worked to enhance NYC’s rate model to improve its capabilities as a decision-making tool.
Raftelis also worked with Board staff on several different engagements:
- Frontage Analysis – Raftelis 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.
- Water Shortage Rate Study – Raftelis assisted the Board in the development of a water shortage rate that could be potentially implemented in cases where NYC’s water supply is reduced for one reason or another. This effort involved the analysis of daily consumption data for all of NYC’s metered water customers (over 800,000 customers) and developing a financial model that could help predict the revenue impacts of various water shortage rate options.
- Fixed Rate Study – Raftelis assisted the Board in identifying fixed rate structure options to be considered for future implementation. The Board’s current water/sewer rates for metered customers does not have a fixed component other than a minimum charge that is assessed to customers that use less than 9,000 gallons per quarter. Raftelis identified different fixed rate structure options and vetted them against a set of criteria (such as compatibility with the billing system, customer impacts, etc.) and identified costs that could recovered from the fixed component. Raftelis calculated fixed fees under various cost recovery options and determined the customer impacts to various users. The study was completed in the fall of 2017.
