2.6. ERMUSR 06-14-2016 - Laserfiche WebLink

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adjustments are warranted. Additionally, the cost-of-service study yields specific demand, energy and customer related costs for each class which can be utilized in the design of demand, energy and customer charges for each class of customers. Task 5— Interim Report An interim report will be prepared summarizing the analyses prepared to date. This interim report will be sent to Client staff for review and comment. The purpose of the interim report is to clearly demonstrate to Client the basis for moving forward with rate design. Task 6—Rate Design Discussion A telephone conference call will be conducted with Client staff to discuss specifics related to alternatives for consideration in the design of proposed retail rates. Task 7— Rate Design Based on the revenue needs of the utility, the results of the cost-of-service analysis and discussions with Client staff, proposed rates will be developed for each of the retail customer classes. The rates will be designed to meet the overall revenue goals of the utility as well as specific Client rate design goals. Task 8 - Financial Forecast— Proposed Rates The financial forecast prepared as part of Task 3 will be revised to show the impact of the proposed rates on Client's five year study period. A primary focus of the analysis will be the resulting cash balances in Client reserve funds. Task 9— Preliminary Report The results of Tasks 6-8 will be added to the Interim Report prepared in Task 5 and submitted to Client for review as a preliminary report for the study. Task 10—Report Review A telephone conference call will be held with Client to discuss the preliminary report with a focus on any areas requiring additional explanation or areas of the study requiring additional analysis. Task 11 — Final Report Based on the discussions in Task 10, the preliminary report will be finalized and both electronic and hard copies of the report will be provided to Client. 2 68