Electric Rate Study

Location: City of Jackson, Mo.

Client: City of Jackson

Burns & McDonnell assisted the city of Jackson with an evaluation of the costs of providing electric service and development of a schedule of electric rates designed to meet overall project objectives. The key objectives were:

  • Generation of adequate revenues to meet all projected operating and capital costs and maintain sound financial of the city’s electric system
  • Reflect the costs of providing electric service to customers in the city of Jackson
  • Meet Jackson’s electric system service policies and objectives

The project approach utilized included development of a system financial plan and the completion of electric rate design. The projection of revenues under existing rates and system expenditures were summarized in a cash flow analysis to assess the adequacy of revenues to meet all operating and capital requirements. The cash flow analysis identified the overall increase in revenues needed on an annual basis to meet the overall financial objectives.

Two options were developed for consideration by the city. Once the city decided which option to utilize, the analysis moved into the rate design. The objective of this step in the study was to design a set of electric rates to achieve overall goals. Burns & McDonnell provided recommendations to the city and presented the recommendations and results in a public meeting.