Gas Cost of Service Study

Location:	North Carolina
Posted:	Apr 8, 2026
Due:	Apr 15, 2026
Agency:	State Government of North Carolina
Type of Government:	State & Local
Category:	B - Special Studies and Analyses - Not R&D C - Architect and Engineering Services - Construction R - Professional, Administrative and Management Support Services
Solicitation No:	320-320-2026610
Publication URL:	To access bid details, please log in.

Solicitation Number:	320-320-2026610
Project Title:	Gas Cost of Service Study
Description:	The City’s Gas Utility Division is requesting a formal quote for professional consulting services to conduct a comprehensive Gas Cost of Service Study (COSS). The purpose of this engagement is to evaluate the full cost of providing natural gas service and ensure that rates are fair, equitable, defensible, and aligned with industry best practices and applicable regulatory standards.
Opening Date:	4/15/2026 2:00 PM
Posted Date:	4/8/2026
Status:	Open
Department:	CITY OF ROCKY MOUNT


Solicitation Number * 320-320-2026610	Department CITY OF ROCKY MOUNT	Status Reason Open
Opening Date 2026-04-15T14:00:00.0000000	Posted Date * 2026-04-08T14:07:08.0000000Z	Primary Commodity Code Oil and gas utilities
Mandatory Conference/Site Visit — —	Special Instructions —	Solicitation Type * Select RFP IFB RFI
Owner Tracy Winfield
Description The City’s Gas Utility Division is requesting a formal quote for professional consulting services to conduct a comprehensive Gas Cost of Service Study (COSS). The purpose of this engagement is to evaluate the full cost of providing natural gas service and ensure that rates are fair, equitable, defensible, and aligned with industry best practices and applicable regulatory standards.

Attachment Preview

City of Rocky Mount-Energy Resource

Competitive Request for Quotation (RFQ) – Informal Purchase (Under

$30,000.00)

Gas Cost of Service Study

RFQ Number: 320-2026610

Issue Date: April 8, 2026

Quote Due Date: April 15, 2026, at 2:00 PM

1. Purpose

The City’s Gas Utility Division is requesting a formal quote for professional consulting services

to conduct a comprehensive Gas Cost of Service Study (COSS).

The purpose of this engagement is to evaluate the full cost of providing natural gas service and

ensure that rates are fair, equitable, defensible, and aligned with industry best practices and

applicable regulatory standards.

Please provide a quote based strictly on the scope and requirements outlined below.

2. Compliance

All work shall be performed in accordance with applicable state and local procurement

requirements, municipal finance standards, and generally accepted utility ratemaking

principles.

3. Scope of Work / Specifications

At a minimum, the selected consultant shall perform the following:

A. Data Collection and Review

• Review historical financial statements, trial balances, budgets, and capital

improvement plans.

• Evaluate operating and maintenance expenses, administrative and general costs,

debt service, depreciation, and capital structure.

• Analyze customer class data, billing determinants, usage characteristics, and load

profiles.

B. Revenue Requirement Analysis

• Develop a test year (historical, forecasted, or hybrid, as approved by the City).

• Calculate the utility’s revenue requirement, including operating expenses,

depreciation, taxes (if applicable), and an appropriate rate of return.

• Evaluate capital structure and cost of capital, with financial analysis prepared or

reviewed by the assigned CFA.

C. Cost Allocation

• Develop and document functionalization, classification, and allocation

methodologies consistent with industry standards (e.g., AGA guidelines where

applicable).

• Allocate costs among customer classes (e.g., residential, commercial, industrial,

interruptible).

• Provide detailed workpapers supporting allocation factors and methodologies.

D. Rate Design

• Evaluate current rate structure and revenue recovery by class.

• Develop alternative rate designs, including fixed and volumetric components,

demand charges (if applicable), and other pricing mechanisms.

• Model bill impacts for representative customers within each class.

• Provide recommendations that promote revenue sufficiency, equity, and rate

stability.

E. Financial Forecasting and Sensitivity Analysis

• Develop multi-year financial projections.

• Perform sensitivity analyses related to load growth, wholesale gas cost volatility,

capital expenditures, and other key assumptions.

F. Reporting and Deliverables

• Provide a draft Cost of Service Study report for staff review.

• Incorporate staff comments and submit a final report suitable for presentation to

City management and the governing board.

• Provide all supporting financial models in editable electronic format.

• Present findings at up to two public meetings or work sessions, if requested.

3. Required Qualification

• Demonstrated experience performing cost of service studies for municipal or

public-sector gas utilities of similar size and complexity.

• A Chartered Financial Analyst (CFA), in good standing, who will play a

substantive role in financial modeling, revenue requirement development,

and rate design analysis.

4. Deliverables

• Data request list

• Revenue requirement model

• Cost allocation model

• Rate design alternatives with bill impact analysis

• Draft and Final Cost of Service Study Report

• Executive summary suitable for public dissemination

5. Quote Submission Requirements

Please include the following in your response:

• Proposed fee structure (lump sum or not-to-exceed amount)

• Estimated projected timeline

• Identification of the assigned CFA and project team

• Relevant experience performing similar studies for municipal gas utilities

Submit via email to: Fantashia.Dickens@rockymountnc.gov

6. Questions

All questions must be submitted via email to Fantashia.Dickens@rockymountnc.gov prior to the

due date.

7. Schedule

The term of this contract shall be from the date of approval through June 30, 2026.

8. Award

Award will be made to the lowest responsive, responsible vendor or in the best

interest of the City. The City reserves the right to reject any or all quotes.

This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.

Daily notification on new contract opportunities

With GovernmentContracts, you can:

Find more opportunities and win more business
Receive daily alerts for all new bid opportunities
Get contract opportunities matched to your business

ONE WEEK FREE TRIAL

Gas Cost of Service Study

Attachment Preview

See also