NewGen was retained by the City of Fort Worth to conduct a review of the City’s Wholesale Water and Wastewater Cost of Service and Rate Study. The City provides water service to 32 wholesale water customers and 23 wholesale wastewater customers within Tarrant, Johnson, Denton, and Parker counties. Consequently, The Fort Worth Water Department provides water and wastewater services to approximately 1.2 million people in Fort Worth and surrounding areas. By contract, the Fort Worth Water Department conducts annually a Cost of Service Study to determine the wholesale water and wastewater rates for the upcoming fiscal year.

 As part of this peer-review process, NewGen was retained to review the City’s calculations and methodology based on information provided to establish the FY 2021 wholesale water and wastewater rates. The City provided the Project Team with Excel-based models and supporting calculations, and historical reports and presentations to assist with the peer-review process.

 NewGen presented its finding to the City’s Wholesale Customer Advisory Committee in July 2020 and described the analysis performed by the City in a final report. This final report included a summary of the methodology, a review of the cost components, calculation of the revenue requirements, a discussion of the cost allocation and rate development process, and finally the proposed rates recommended for the upcoming fiscal year.