RFP-24-073 COST OF SERVICE ANALYSIS AND RATE DESIGN STUDY

The City of Banning's Electric Department seeks an experienced technical and financial consulting firm to complete a comprehensive Cost-of-Service (COS) Analysis and develop a robust financial model and rate structure. The project aims to develop a rate restructuring proposal that ensures revenue adequacy and fair cost allocation while balancing customer affordability and compliance with California law.

Banning Electric Utility (BEU) is a municipally-owned utility established in 1922, serving approximately 13,500 customers (12,200 residential and 1,300 commercial) in northwestern Riverside County. The utility generated approximately $28 million in revenues during FY 2023 from power sales of 150,000 MWh. BEU's energy portfolio includes nuclear, geothermal, solar, landfill gas-to-energy, and hydroelectric resources, meeting 81% renewable energy requirements in 2022. The system includes six substations, 27 distribution feeders, and approximately 147 miles of overhead and underground distribution lines operating at 7,200/12,470 volts.

The resulting financial planning model must support rate design under multiple scenarios and enable future decision-making as conditions change. The project requires iterative design components to provide BEU with resilient financial resources for long-term sustainability. Deliverables will include a comprehensive rate design proposal and public engagement activities to garner understanding of and support for the chosen rate structure. The consultant must comply with all California regulatory requirements and coordinate with the Electric System Master Plan currently under development.

Key dates: Pre-Proposal Meeting on September 10, 2024 at 6:00 PM; Questions and Answers deadline September 18, 2024 at 6:59 AM; Proposal submission deadline October 2, 2024 at 6:59 AM Pacific Time.