Water/wastewater utility updates rates following cost of service and rate design study

Client need

A Midwest municipal utility needed assistance developing cash flow forecasts for its water and wastewater operations due to significant operational changes with respect to wholesale water needs, capital improvement programs and unrestricted cash reserve policies.

Baker Tilly solution

Baker Tilly helped the water/wastewater utility forecast its cash flow, revenue requirement, and a cost of service study and rate design application to its regulatory body, the state public service commission. Our energy and utilities specialists also participated in rate study working sessions with the commission and utility stakeholders to provide both an understanding regarding the utility’s rate application and any answers to questions posed.


The municipal utility gained regulatory approval from its state commission for its tariff rates. Further, through the revenue requirement analysis and cost of service and rate design studies, the utility updated its retail customer rates.

For more information on this topic, or to learn how Baker Tilly energy and utility specialists can help, contact our team.