2022-063 - Cost of Service Utility Rate Analysis and Business Plan

The City of Aspen seeks to update its cost of service electric and water utility rates and associated business plan. The last cost of service rate analysis was completed in 2018. This update is necessary to accommodate emerging utility policy directions; address program and infrastructure needs; and respond to changes in consumer growth, technology use and demand patterns.  

The overall goal is to update city utilities existing cost of service rate structure and thereby provide City Council with sound decision support.  In refining the cost of service approach, the city seeks to assure that rates and fees are efficient and equitable throughout customer classes and service areas. Rates and fees must be sufficient to:
 

• Cover annual utility operating and maintenance expenses
• Finance the utility capital plan
• Fund certain utility initiatives
• Maintain a sufficient level of reserves
• Ensure city rates and fees are tied to cost of providing electric and water to each customer class/expense bucket