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ATTACHMENT "A" SCOPE OF SERVICES 5-1 ELECTRIC UTILITY RATE STUDY TASKS The scope of services to be performed by the consultant for the preparation of an electric utility rate study includes: i) a five year fmancial forecast to develop projected revenue requirements and evaluate capital funding requirements; ii) a cost of service study to determine the City's individual customer classes' revenue responsibility; and iii) rate design analyses to develop rates for electric service that recover the projected revenue requirements. The proposed scope of services is summarized below by the following tasks: Task I — Data Request and Data Gathering Consultant will prepare a written data request for the collection of financial, customer billing, budgetary, operating and planning data necessary to conduct an electric utility rate study. Information requested will include, but is not limited to, financial statements, detailed accounting records such as general ledger trial balances, existing rate and fee schedules, wholesale power bills, operating budgets and capital work plans, existing debt service schedules, summaries of utility plant investment, and customer billing data by customer class and service area Location. Task II — Five Year Financial Forecast The development of the five year financial forecast, which will provide the basis for subsequent development of cost of service analyses and rate design, consists of the following activities: 1. Identification of Fiscal Policies aril Objectives — This task will include the review of existing City Ordinances, financial policy, audited financial statements, adopted budgets and five year capital plans, and any loan agreements associated with outstanding loan obligations. Based on this review consultant will identify goals related to financial performance indicators, capital funding practices and reserve fund policies to provide financial guidelines and support for the rate and fee setting. 2. Customer and Sales Forecast — Consultant will prepare a projection of customer and usage requirements based on detailed customer accounting information provided by the City. This task will include a review of historical customer growth and usage statistics and consideration of future development activity, as well as, development of a profile of billing determinants The billing statistic profiles will be prepared for both existing and proposed customers classes, if different, and reflect appropriate rate structure criteria. The first step of this task will be to work with City staff to specify the billing data to be provided. In addition, alternative rate/customer classes and rate design options to be considered in the study will be identified in conjunction with staff in order to assemble appropriate billing profiles. 242