GCWW Cost of Service and Rate Study

Background
The City of Cincinnati, through its Greater Cincinnati Water Works (GCWW), is issuing this Request for Proposals (RFP) for a comprehensive Cost of Service and Rate Study. GCWW is the largest water utility in the Greater Cincinnati area, serving over 240,000 retail customers with an annual operating revenue of $204 million in FY 2024. The goal of this contract is to evaluate the utility’s revenue needs, allocate costs to customer classes, and recommend rate structures that ensure financial sustainability, equity, and regulatory compliance. The selected consultant will also provide ongoing consulting services as needed.

Work Details
The selected consultant will perform a comprehensive Cost of Service and Rate Study for GCWW, which includes:

1. Revenue Requirement Analysis: Review historical financial data and identify total annual revenue requirements using defensible methods consistent with the AWWA M1 Manual.

2. Cost Allocation to Customer Classes: Analyze customer usage characteristics and allocate costs across customer classes ensuring equitable treatment.

3. Rate Design and Alternatives: Develop at least three rate structure alternatives addressing conservation, equity, affordability, and full cost recovery.

4. Stakeholder Communication Support: Assist GCWW staff in developing public-facing communications regarding proposed changes.

5. Final Report and Presentation: Submit a comprehensive final report including methodology, findings, rate alternatives, customer impact analysis, and implementation roadmap.

Period of Performance
The contract will begin in July 2025 and is expected to be completed by December 2025. The services may extend for up to five years for ongoing support after the initial study.

Place of Performance
The services will be performed primarily at the Greater Cincinnati Water Works facilities located in Cincinnati, Ohio.

Bidder Requirements
Offerors must demonstrate successful completion of similar work for public water utilities and have relevant project experience within the last five years. They should also comply with the City’s Equal Employment Opportunity Program and may need to partner with certified Small Business Enterprises (SBE), Minority Business Enterprises (MBE), or Women Business Enterprises (WBE).