SUA Special Meeting Recap

(STILLWATER, OKLA. / Jan. 27, 2015) — The Stillwater Utilities Authority met for a special meeting Thursday, Jan. 22, 2015 (View agenda here.)

General Orders

a.       Trustees roundtable discussion with Raftelis regarding the Water and Wastewater Cost of Service Study

Utilities Authority Director Dan Blankenship presented the goal of the study, which was to determine the cost of providing these services to the community and establish a rate structure that would reasonably ensure sustainable systems to meet the needs of current and future customers.

Raftelis Senior Manager Tom Beckley presented the report. Raftelis developed three different scenarios:

• Scenario 1 – No rate increases
• Scenario 2 – Just in time rate increases
• Scenario 3 – Smoothed rate increases

Beckley presented how each of these scenarios would affect both water and wastewater rates and how it would affect revenue goals. He said using scenario 3 for water and scenario 2 for wastewater would produce the lowest rate increases for customers while still meeting city revenue goals.

Beckley then presented six volume rate structures

• Uniform volume rate – Same rate year-round
• Seasonal volume rate – Rate varies depending on season
• Declining block volume rate – Declining rate as larger volume is used
• Inclining block volume rate – Inclining rate as larger volume is used (helpful for conservation)
• Individualized volume rate – Based on average winter consumption on a block basis
• Water budget – More complicated format based on weather patterns

Rate Design Options:

Water Options:

• Existing structure – Any changes to revenue recovery will be implemented through an across the board increase of all current fees and rates
• Alternative 1: Increasing block rates – Volumetric rate will increase for residential customers and consumption increases through the defined blocks
• Alternative 2: Increasing block rates based on avg. winter consumption – First usage block will be based on customer’s average winter consumption (AWC), and additional usage tiers will be based on a factor of AWC.

Wastewater Options:

• Existing structure – Any changes to revenue recovery will be implemented through an across the board increase of all current fees and rates
• Alternative 1: Base charges by meter size – All customer will be required to pay a minimum charge based on the size of their water meter, similar to the current water rate structure; charge increases as meter size increases (uniform volumetric rate)
• Alternative 2: Uniform rates by class – Some (or all) non-residential customers will be placed in a class whole uniform rate reflects the higher strength loadings of their effluent (Ex. restaurants, automobile service facilities, laundromats)

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Written by Zachary Kinder, Marketing and Public Relations