Florida utility determines utility rates to meet revenue targets

Organization challenge

A large utility in Florida with over $350 million in revenue and over 90,000 retail and wholesale customers was in need of a comprehensive rate study in order to meet revenue projections for future needs.  Utilities rely on equitable rates in order to sufficiently forecast the needs of customers and provide reliable service. 

Baker Tilly solution

The energy and utilities team at Baker Tilly prepared cost of service and rate design studies for the electric, gas, water, and wastewater systems in order to determine the most appropriate structure for utility rates.  As part of the study, the team determined historical cost of service for the previous year for retail and wholesale customers and provided projections for revenue requirements. The team developed models for the utility tailored directly to its chart of accounts, cost reporting an d customer load profiles.

Results

The rate study provided the utility with the detailed support to present the rate design to its Board of Directors and ratepayers. The design allowed it to appropriately adjust rates to meet future goals.   Through implementing a new rate structure for customers, the utility will be able to continue to provide excellent customer service, reliable distribution of electricity, water, and gas services, and allow for future infrastructure improvements.