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Case Studies

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Coastside County Water District

Water Cost-of-Service Study (2015, 2016)

Project Background

HF&H assisted the Coastside County Water District in developing drought rates. The rates were designed to recover the cost of the revenue shortfall resulting from conservation due to the Governor’s Executive Order, which mandated a 25% statewide cutback in water use. In the course of the analysis, we also conducted a detailed cost-of-service analysis, which redistributed costs among the District’s residential and non-residential classes based on the effects of conservation. The study included the development of a rate design which included cost-based tiered consumption charges for residential customers.

Project Results

  • The redistribution of costs based on the cost-of-service analysis resulted in differing rate adjustments by customer class.
  • Adjustments to both the service and consumption charges were evaluated to improve revenue stability (increasing projected revenue by 24%) and rate payer equity across the range of residential consumption.