By - Jon Brown

Fundamentals of Cost of Service and Rate Design for Water Utilities
May 4-5, 2020 | Denver, CO

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Water utilities are facing constant pressure to replace aging infrastructure and meet increased regulatory demands, while meeting enhanced levels of service at a reasonable cost.  Cost of service and rate design studies are necessary to assist a water utility in setting rates that are fair and equitable to its customers.  These studies also support the water utility’s mission.

This introductory course reviews the basic mechanics of a cost of service and rate design study for water utilities. Participants will also learn valuable tools on obtaining buy-in or “selling” the need for a revenue increase to its constituent groups.  Real world examples based on generally accepted ratemaking principles will be utilized throughout the course.

Learning Outcomes

  • Identify how a cost of service & rate design study supports the utility’s mission 
  • Discuss the impact of policy and financial considerations on customer rates
  • Define the data requirements needed to begin a cost of service & rate design study
  • Identify revenue requirements and recognize the importance of a multi-year financial plan 
  • Explain the cost of service allocation process
  • Assess design rates that are defensible based on the cost of service and/or policy considerations
  • Discuss contractual pricing and other sources of revenue for the utility
  • Recognize the importance of customer outreach to sell your needed revenue increase



EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for this event.

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 12.0
There is no prerequisite for this Course.
Program Level: Beginner/Intermediate
Delivery Methood: Group-Live
Advanced Preperation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.


Requirements for Successful Completion of Program

Participants must sign in/out each day, be in attendance for the entirety of the course

Instructional Methods

Case studies, PowerPoint presentations, open discussion


Monday, May 4, 2020

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 5:00 p.m. :: Course Timing

12:00 – 1:00 p.m. :: Group Luncheon

Introduction and Overview of Course

How Financial Planning, Cost of Service (COS) Studies, and Rate Design Supports a Water Utility’s Mission

  • Examples of Utility Missions
  • Commonalities
  • What is Financial Planning?
  • What is Ratemaking (COS Studies & Rate Design)?
  • Constituents to the Process

Policy/Financial Considerations

  • Debt Service Coverage
  • Operating Reserves
  • Infrastructure Planning & Investment

Data Requirements

  • Types of Data Needed
  • Tips

Developing Revenue Requirements/Financial Plan

  • Process
  • Fundamental Principles
    • Cash Basis vs. Utility Basis
  • Methodology
  • Multi-Year Financial Plan

Cost of Service Allocation Process

  • Functionalization
  • Classification
    • Base-Extra Capacity Method
    • Commodity-Demand Method
  • Allocation (Distribution) to Customer Classes

Rate Design

  • Options – Rate Structures
  • Conservation Pricing
  • Examples

Tuesday, May 5, 2020

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 a.m. – 12:00 p.m. :: Course Timing

Review of Day One

  • Development of Revenue Requirements/Financial Plan
  • Cost of Service Process
  • Rate Design

Contractual Pricing & Sources of Revenue

  • Wholesale/Contractual/Industrial Pricing
  • Non-Rate Fees and Charges

Communications Outreach

  • Purpose/Goals
  • Toolbox
  • Case Study Example – Fort Worth Water

Case Study – Small Water System Rates


Andy McCartney, C.P.A. / Manager – Fiscal Service / Fort Worth Water

Andy McCartney is a Manager for the Fort Worth Water Department and has 30 years of experience in utility finance and cost of service & rate design for Water, Wastewater, Stormwater, Solid Waste, and Electric Utilities.  He is a former Consulting Manager for Black & Veatch that provided multi-year financial planning, cost of service studies, rate design, impact fee studies, and strategic valuation services throughout the United States.  He has also taught cost of service and rate design courses for the Government Finance Officers Association of Texas as well as the Texas Section of the AWWA.

Mr. McCartney is a licensed Certified Public Accountant in the state of Texas.  He holds a BBA degree in Finance from Texas A&M University, a BBA degree in Accounting as well as a BS degree in Economics from the University of Texas at Arlington.  He also obtained his MBA in Finance & Accounting from Dallas Baptist University.

Chris Ekrut/Director, Environmental Practice/ NewGen Strategies and Solutions

Chris Ekrut has been providing financial and management consulting services to the public and private utility industry since 2004.  He assists clients in pricing services and developing rates and fees for their water, wastewater, reuse, drainage, natural gas and electric utilities.  Chris works actively before rate regulatory agencies, assisting clients and customer groups with regulatory filings and proceedings and serves as an expert witness on cost of service and rate design matters.  He also specializes in assisting utilities in business and implementation planning, focusing on long-term strategy and policy.  Chris is a partner with and currently serves as the Director of the Dallas office of NewGen Strategies & Solutions. 


EUCI Conference Center

6400 S Fiddlers Green Cir.

Greenwood Village CO, 80111

The EUCI conference center is conveniently located adjacent to the Arapahoe at Village Center Light Rail Station, allowing easy access to and from DIA, Downtown, and Local Area Attractions.

Nearby Hotels

Each of these hotels offers a complimentary shuttle to and from the EUCI conference center.

Hyatt Regency Denver Tech Center
7800 East Tufts Ave
Denver, CO 80237
Phone: 1-303-779-1234
2.8 miles away
Special EUCI Room Rate: $179.00
To access EUCI room rate visit
Click “Book Now”, then click “Special Rates”
Click “Corporate or Group Code” and enter CR102338
You may also call our central reservation at 1-800-233-1234 and give them the corporate code of CR102338

Double Tree by Hilton DTC
7801 East Orchard Rd.
Greenwood Village, CO 80111
Phone: 303-779-6161
0.5 miles away

Wingate by Wyndham
8000 East Peakview Ave
Greenwood Village, CO 80111
Phone: 303-626-2641
0.3 miles away

Hyatt Place Denver Tech Center
8300 E.Crescent Parkway
Greenwood Village, CO 80111
Phone: 1-303-804-0700
2.1 miles away

Denver Marriott Tech Center
4900 S Syracuse St
Denver, CO 80237
Phone: 303-779-1100
3.1 miles away


Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, April 17, 2020
Standard RateAttendees
Fundamentals of Cost of Service and Rate Design for Water UtilitiesUS $ 1195.00 US $ 1395.00

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before April 03, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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