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Issaquah committee leans toward phased cost-of-service approach for utility rates
Summary
Committee reviewed consultant—ost-of-service analysis for water and sewer rates, discussed options to phase adjustments and flagged a separate Newport sewer relocation bid that adds roughly $2.9 million to the CIP; staff will return with rate design and follow-up information in June.
May 15, 2025 —00: The City Council Mobility and Infrastructure Committee on Thursday reviewed a consultant—ost-of-service analysis for the city—lectricly managed utilities and signaled support for a phased move toward cost-of-service rates for water and sewer.
The analysis, presented by consultant Sergei Trossa and reviewed by Public Works Director Emily Moon, found most customer classes fall within a conventional —range of reasonableness— (plus or minus about 10 percent of cost-of-service), but singled out single-family residential and some irrigation classes as outliers. Committee members favored a gradual approach that spreads adjustments across years rather than applying full reallocations in a single year.
The study covered three steps: (1) revenue requirement, (2) cost-of-service allocation by customer class, and (3) rate design. Sergei Trossa told the committee the city—urrently can avoid adding new debt during the next five-year period by changing…
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