Consultants outline Boulder City utility rate study; committee flags electric capital and water cash‑flow timing

A consultant team led by Melanie presented a draft utility rate study to the Boulder City Utility Advisory Committee on the study steps, draft cash‑flow forecasts and policy choices for the city’s electric, water, wastewater and landfill utilities. The presentation described the study as a living 20‑year model and said the immediate focus is to finalize the revenue requirement that will inform later cost‑of‑service and rate‑design work.

Melanie said the study will treat each utility separately to avoid masking cross‑subsidies and highlighted three principles for rate setting: full cost recovery, incentives for efficient use where appropriate, and proportionality of rates to customer demand. “A rate study enables each utility to remain self‑sufficient,” she said, adding that the model would also support capital funding decisions and public education about rate changes.

The consultants presented draft forecasts showing electric as the dominant capital burden and the largest revenue source; they said electric operating revenues currently cover ongoing expenses and power purchases but that capital timing is the primary stressor. “What’s driving electric is the capital,” the presenter said,…