9/10/2026
1 RiversideCA.gov1
RiversideCA.gov
ELECTRIC COST OF SERVICE ANALYIS AND RATE DESIGNCity Council September 22, 2026Public Utilities Department RiversideCA.gov2
1. Previous Electric Cost of Service Analysis (COSA) and Rate Design completed in 2023a. Supported the Electric Utility Five-Year Rate Planb. Effective January 1, 2024, with final year effective January 1, 20282. Updated Electric Cost of Service Analysis and Rate Design necessary to plan beyond current Electric Utility Five-Year Rate PlanBACKGROUND1 2 9/10/2026
2 RiversideCA.gov3
1. Comprehensive review of all rate schedules2. Forecasts future revenue requirements3. Equitable allocation of costs among customer classes4. Electric utility rate trends study5. Five-year proposed rate design recommendation6. Customer impact rate design model7. Analyzing Advanced Metering Infrastructure customer data to support rate design8. Evaluate opportunities to revise programs such as Self-Generation9. Develop new potential rates for electrification10. Provide two workshopsELECTRIC COSA AND RATE DESIGN PROJECT RiversideCA.gov4
Considerations:1. Changing Industry and Regulatory Requirements – The impacts of distributed generation, electrification, and renewable energy portfolio requirements 2. Operating and Infrastructure Costs – Production, transmission, distribution, and capital improvements3. Essential to identify the cost to serve the City’s customers and ensure equitable allocation of cost responsibility among customer rate classes.FUTURE ELECTRIC REVENUE REQUIREMENTS3 4 9/10/2026
3 RiversideCA.gov5
1. January 16, 2026 – RFP was posted on PlanetBids2. February 11, 2026 – Proposals were received from five consultants3. RPU staff completed proposal reviews, evaluation, and scoring4. Evaluation Scoring:a) Qualifications and project approach 25%b) Experience and references 25%c) Overall proposal 25%d) Proposal pricing 25% 5. Negotiated clarifications of Phase IV Enhancements to Studya) Analyzing Advanced Metering Infrastructure customer data to support rate designb) Evaluate opportunities to revise rate programs such as Self-Generationc) Develop new potential rates for electrificationd) Provide two workshopsRFP 2531 RiversideCA.gov6
1. NewGen Strategies and Solutions, LLC. received the highest scorea. Experience includes multiple similar projects in California and across the United Statesb. Includes the customer impact rate design model providing a comprehensive and complete view of all rate impacts to all customersRFP 25315 6 9/10/2026
4 RiversideCA.gov7
RFP 2531 RANKINGRankWeighted Score EvaluationsProposed Cost LocationVendor Total Evaluation ScoreProposal Pricing (25%)Overall Proposal (25%)Professional References (25%)Qualifications and Experience (25%)1852.50244.17200.00208.33200.00$119,600Lakewood, CONewGen Strategies and Solutions, LLC2700.01250.00141.67141.67166.67$116,810Marietta, GAGDS Associates Inc3628.09136.42175.00141.67175.00$214,065San Francisco, CAEnergy and Environmental Economics, Inc. (E3)4534.59117.92133.33141.67141.67$247,640Madison, WIBaker Tilly5437.82146.16158.3358.3375.00$199,800Miami, FLQuantum America RiversideCA.gov8
ELECTRIC COSA AND RATE DESIGN PROJECTAmountNewGen Strategies & Solutions, LLC.$55,900Phases I- Cost of Service Analysis and Project Management$9,500Phase II- Electric Utility Rate Trends Study$34,100Phase III- Rate Design Recommendation$44,300Phase IV – Enhancements to the Study including AMI Data Assistance, Rate Alternatives for Customers with Solar, Electric Vehicles, and other Electrification, and Workshops $5,000Expenses and Travel$148,800Grand Total7 8 9/10/2026
5 RiversideCA.gov9
That the City Council:1. Approve Professional Consultant Services Agreement from RFP No. 2531 with NewGen Strategies and Solutions, LLC of Lakewood, Colorado for Electric Cost of Service Analysis and Rate Design with a term ending December 31, 2028, in the amount of $148,800; and2. Authorize the City Manager, or designee, to execute the Agreement with NewGen Strategies and Solutions, LLC including making minor and non-substantive changes, including extensions up to one (1) two-year term, subject to availability of budgeted funds. RECOMMENDATION9