Number
130383
Version
SUBSTITUTION 1
Reference
120642
Sponsor
THE CHAIR
Title
Substitute resolution relative to a rate adjustment process for Milwaukee Water Works.
Analysis
This resolution authorizes and directs the Milwaukee Water Works to begin drafting documents required by the Public Service Commission of Wisconsin to request a water rate adjustments and to reach out to stakeholders with the objective of identifying and resolving potential issues. This resolution further directs the Milwaukee Water Works to develop options for water rate adjustments and present these options to Common Council for approval prior to initiating rate adjustment requests with the Public Service Commission of Wisconsin.
Body
Whereas, The Milwaukee Water Works (MWW) has identified and communicated to the Common Council the need for regular water rate adjustments to support ongoing capital investment and plant quality; and
Whereas, In accordance with resolution file number 120642, MWW has engaged Raftelis Financial Consultants, Inc. and Trilogy Consulting, LLC, experts in the field of municipal water utility ratemaking, to assess MWW's existing water rates and fees and prepare documentation for rate adjustments for MWW ; and
Whereas, MWW has received direction from the Public Service Commission of Wisconsin (PSC) that to initiate the rate adjustment process, MWW will be required to submit a complete package consisting of the rate application, the revenue requirement, the cost of service study, and the proposed rate design; and
Whereas, Preparation of these components will be an iterative process with multiple
decision points affecting the outcome, which is a rate design that assures appropriate revenue for the utility with reasonable cost to ratepayers; and
Whereas, It will be in the best interest of MWW and the City of Milwaukee that issues with the potential to be contested be discussed with major customers and, if possible, resolved in advance of the rate filing; and
Whereas, Such outreach to major customers should occur with the knowledge and consent of the Common Council of the City of Milwaukee; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, That the Milwaukee Water Works is directed to proceed with the drafting of documents required by the PSC to request a water rate adjustment, to reach out to stakeholders with the objective of identifying and resolving potential issues which could otherwise lengthen the rate case process to the detriment of MWW and; be it
Further Resolved, That the Milwaukee Water Works develop options for water rate adjustments, including information on rate design and impact to ratepayers, and present same to Common Council for approval prior to initiating a rate adjustment request to the Public Service Commission of Wisconsin.
Requestor
Department of Public Works
Milwaukee Water Works
Drafter
Administration
Carrie M. Lewis
July 8, 2013