Cost of Service and Rate Design Studies

The City of Norwich, Connecticut, on behalf of Norwich Public Utilities (NPU), has issued a Request for Proposals seeking qualified financial consulting firms in the utility industry to conduct comprehensive Allocated Cost of Service and Rate Design Studies for its Gas, Electric, Water, and Sewer utility divisions. The scope of work includes reviewing existing rate and service fee structures, developing rates and charges consistent with NPU's rate design strategies (which prioritize financial and revenue stability, rate competitiveness, growth promotion, affordability, cost equity, cash flow management, and efficiency), and ensuring charges reflect current costs of providing utility services. Deliverables include five-year financial projections, allocated cost of service studies, rate design development, presentations to staff and board, and comprehensive reports, with Year 1 requiring full services across all four utility divisions and Years 2-3 focusing primarily on sewer services. The contract runs through December 31, 2028, with options for up to two three-year negotiated renewals. Qualified firms must have provided similar services for at least ten years and must assign a principal project manager with specific experience in allocated cost of service studies and rate design for gas, electric, water, and sewer utilities. The selection committee will evaluate proposals based on competence and ability to perform, past performance, qualifications of assigned personnel, conflict of interest avoidance, responsiveness to the RFP, customer service record, and proposed fees. Proposals are due by 2:00 P.M. prevailing time on October 29, 2025, submitted via the City of Norwich Procurement Portal, with a solicitation opening date of October 10, 2025. Inquiries should be directed to Robert Castronova at 860-823-3770 or rcastronova@cityofnorwich.org.

This procurement is open to all vendors with no specified set-asides or restrictions based on disadvantaged enterprise designations. No incumbent vendors or current contractors are documented in the solicitation materials. Selected consultants must maintain professional liability insurance of $1,000,000 per claim and $1,000,000 annual aggregate, along with other specified insurance coverages, and must release all Excel models developed during the engagement to NPU for internal use. Proposers must provide detailed fees for six distinct service items: five-year financial projections, allocated cost of service studies development, rate design development, presentations, reports, and sewer service annual updates, with the option to propose alternative fee structures or additional services. Payment terms indicate invoices will be due and payable within thirty days of receipt for monthly billing of services performed. The RFP does not specify an estimated total value or budget range for this engagement.