City of Saginaw

Saginaw, Michigan, United States

Raftelis has provided wholesale and retail financial planning, cost-of-service, and rate design services to the City of Saginaw (City) for numerous engagements to date.

The City of Saginaw has 18 wholesale water customers. Prior to Raftelis’ first engagement with the City, the wholesale customers presented the City with a highly critical review of its current wholesale rate methodology. Raftelis was retained to review and comment on the issues raised in this study. After submitting these findings Raftelis was retained to create a new methodology which better comported with industry standards and the City’s contractual obligations to its wholesale customers.

Critical to this updated analysis was the significant amount of time and effort dedicated to engaging each wholesale customer throughout the process. Raftelis staff met with the wholesale customers, both as a group and individually, making sure each understood the changes and was comfortable with the new methodology. The ultimate outcome of this process was restored confidence on the part of the wholesale customers in the process used by the City to set their rates.

Since the initial engagement Raftelis was retained to update the rate study in 2009 (for the period (2010 to 2012), and in 2015 (for 2016 to 2018). Each time, Raftelis staff have held individual meetings with each wholesale customer as well as follow-up phone calls to address any questions. Raftelis staff are currently engaged updating the study.