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- Review Revenue Requirements
- Define overall objectives
- Determine rate revenue requirements
- COSA
- Assignment of costs for a representative year to the user classes imposing the costs on the utility
- Functionalization
- Classification
- Allocation
- Determine the calculated cost per user class
- Compare the cost per user class to actual revenue per user class
- Rate Design
- Assess potential rate structure modifications to address any inequity between user classes
- Consider the effect of potential changes against overall objectives
- Evaluate sensitivity of potential Rate Design
- Recommend rate structures designed to achieve overall revenue adequacy and support utility objectives
- Revenue Adequacy Evaluation
- Project revenue requirements
- Project revenue based on recommended rate structure
- Evaluate financial performance over time
