Tucson Water

Tucson, Arizona, United States

Raftelis has assisted Tucson Water with the development of water rates since 2010. Until 2016, the rate-setting process involved annual updates of the cost-of-service analysis and the development and approval of new rates. In 2016, Tucson Water implemented a two-year rate plan and anticipates doing the same in 2020. Our team has led the technical and public outreach effort to restructure the water rates to address revenue stability and equity issues. This restructuring has included redefining cost recovery from fixed charges and modification of the residential inclining block rate structure to more accurately reflect current usage patterns and community objectives. The public outreach process included participation in customer focus groups, town halls, and meetings of two Tucson Water rate advisory committees. Additional analyses have included evaluation of water utility revenue requirements, financial plans, cost-of-service analyses, rate designs, and special research. Some of the special issues that have been addressed include financial policy evaluation, low-income assistance programs, pricing of reclaimed water, and development of wheeling rates. Raftelis has also prepared annual bond reports, developed a new system development charge, and updated wheeling rates assessed to neighboring utilities that utilize Tucson Water’s transmission infrastructure to provide water to their customers.