RFQ for SUA Rate Study

RFQ for Stillwater Utilities Authority Cost of Service Study and Rate Design

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Included utilities:

Stillwater | Welcoming, Future-Oriented, Proud Past, Youthful Spirit, Educated

Frequently Asked Questions

When was the last full electric cost of service/rate study completed; and is a copy of the report publicly available?

  • The last study was completed in 1998.  It can be made available to the selected consultant.

For the last electric cost of service/rate study, was the utility or cash basis for accounting employed? Is SUA interested in pursuing a different accounting basis for this study?

  • Current staff is unsure what methodology was used for the last electric cost of service rate study.  We are interested in discussing this with the selected consultant and reaching a mutual agreement as to the most appropriate method.

Does SUA have electric load data available to develop demand cost allocators? AMI is being implemented, but are sample meters and load data available for at least 12 months?

  • We have customer class data that can be used to determine proportional demand share for each class since we do not have AMI implemented.

For the electric rate study, does SUA have an estimate for the number of onsite meetings (public, governing authorities, etc.) that the utility expects to conduct?

  • We have no pre-determined number of onsite meetings. We will rely on the selected consultant for advice and recommendations regarding public meetings.

How are the costs and revenues associated with the Stillwater Energy Center accounted for in SUA’s books?

  • Direct costs and revenues for SEC are segregated by cost center and/or general ledger account number.

Does the capacity and energy offset SUA’s GRDA bill, does GRDA dispatch the unit and pay SUA for its services, or does SUA sell into the market and generate revenue?

  • The capacity and energy payments are reflected on the monthly bill from GRDA, but are not intended to offset the cost of purchased power. These are revenue sources used to retire the debt incurred to construct SEC, to cover ongoing maintenance of the SEC, and to fund other operations of the Stillwater Utilities Authority. GRDA dispatches our units and pays SUA for energy generated. 

When was the last water and wastewater cost of service/rate study completed, and is a copy of the report publicly available?

  • The last water/wastewater cost of service study was undertaken in 2015.  It was not completed and remains in draft form.  The information can be made available to the selected consultant.

Has a solid waste cost of service/rate study ever been completed for the City, and if so, is a copy of the report publicly available?

  • Current staff is unaware of any prior rate study for solid waste.

As it relates to the submittal, do resumes count towards the 15-page limit?

  • Yes.

Is there a specific targeted deadline for study completion? 

  • There is no specific targeted deadline and any timelines in the RFQ should be considered tentative.  We would like to be prepared to implement the new rates in January of 2020, but this is also tentative at this point.

Given that SUA’s fiscal year ends on June 30, does SUA intend to wait until FY 19 data is available for a test year for the cost of service study, or does it anticipate using FY 18 data and starting sooner?

  • Appropriate and available data to be used for the study and timing of the study will be discussed as part of contract negotiations with the selected consultant.

What is the City’s reason for conducting this Study now? 

  • We constantly evaluate budget and revenue data and feel it is time to ensure that we have the best possible rates for our customers.

Is there a specific reason for aggregating the cost of service studies for all four utility areas into one project?

  • The SUA is one entity and the revenue impacts the City budget across all areas.  It seemed more effective and efficient to complete a study of all utilities at one time.