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HomeMy WebLinkAbout10-16-2012 ss1 water rate structure studyMeeting Date October 16, 201 2 Item Number ss 1council agenOa aepont C I T Y O F S A N L U I S O B I S P O FROM : Carrie Mattingly, Utilities Directo r Prepared By :Wade Horton, Deputy Director of Wate r Ron Munds, Conservation Manage r SUBJECT :WATER RATE STRUCTURE STUDY SESSIO N RECOMMENDATIO N Participate in the fourth and final water rate structure study session with HDR Engineering . DISCUSSIO N Backgroun d During the third water rate structure study session held at its September 18, 2012 meeting, Counci l reviewed the outcome of the goals and objectives ranking exercise from its August 7, 2012 stud y session. HDR Engineering presented information and Council discussed five conceptual singl e family and three multi-family and non-residential rate structures . • This report presents the "road test" of the final selected potential rate structures which suppor t Council's prioritized goals and financial policies . Actual rates and bill comparisons are used t o assess customer impacts . Although there are numbers associated with the "road test", this is not a n exercise in setting the actual rates . A recommendation on the rates will be presented to the Counci l as part of the 2013-2015 financial planning process . During this study session, the Council and community will discuss five single family and fiv e corresponding multi-family and non-residential rate structure options . Based on the input provide d at this study session, a final water rate structure recommendation (along with alternatives) will b e developed for the Council's consideration and action at a regular meeting . The meeting is tentatively scheduled for November 20, 2012 but may be changed due to a potential schedulin g conflict for the City's consultant . Water Rate Structure Alternative s Using Council's prioritized goals and objectives and input from the discussion at the September 18 , 2012 study session, five rate structure options for single family residential customers and five fo r the remaining customer classes have been developed for the Council's consideration . In order t o equitably compare and "road test" each option, it is -assumed each option must generate the sam e amount of revenue as the current 2012-2013 rate structure . The term "revenue neutral" is use d when describing this concept in the report . A technical memorandum prepared by HD R Engineering analyzing each option can be found in Attachment 1 . During the study session, Council expressed consensus with a "comfort level" of the customer or "fixed" charge being set somewhere between $5 .00 and $10 .00 . The HDR Engineerin g ss1-1 Water Rate Structure Study Page 2 •memorandum details the customer impacts of this charge at $7 .50 and $10 .00 on pages four an d five of Attachment 1 . The following options (where applicable) only use a $5 .00 customer or "fixed" charge fo r comparison purposes . A complete analysis of alternative customer or "fixed" charges is provide d in Attachment 1 . 1 . Single Family Residential Water Rate Structure Option s Five single family water rate structure options were developed based on the Council's prioritize d goals and objectives and incorporate the concepts and comments communicated by the Council a t the last study session . Option 1 — Current Rate Structur e The current rate structure is an increasing block rate structure and is 100% volumetric with n o customer or "fixed" charge . Single Family Rate Structure Option 1 Monthly Customer Charge $0 .0 0 Consumption Charges Per Unit Block 1 First 5 units $6 .2 5 Block 2 6 – 25 units '$7 .8 2 Block 3 > 25 units $9 .8 0 Option 2 — Revised Block Structur e Like Option 1, Option 2 does not include a customer charge . To increase revenue stability, the first block is expanded to include 8 units of water and the third tier is eliminated . In order to remai n revenue neutral, the pricing in blocks one and two are increased slightly . Single Family Rate Structure Option 2 Monthly Customer Charge $0 .0 0 Consumption Charges Per Unit Block I First 8 units $6 .43 Block 2 >8 units $8 .04 Option 3 — Current Rate Structure with Customer Charg e This option retains the current three block increasing rate structure and-adds-a monthly customer . charge . This rate structure enhances the revenue stability through the monthly customer charge an d remains easy to understand by maintaining the current rate structure . The block pricing is lowe r than the current rate structure in order to remain revenue neutral . SS1-2 • Water Rate Structure Study Page 3 Single Family Rate Structure Option 3 Monthly Customer Charge $5 .00 Consumption Charges Per Unit Block 1 First 5 units $5 .9 4 Block 2 6 — 25 units $7 .43 Block 3 > 25 units $9 .3 3 Option 4 — Increasing Block Rate Structure with Revised Block Sizes, Plus Customer Charg e Rate structure Option 4 maintains the current three block increasing rate structure . However, thi s rate structure 1) expands the first block from 5 to 8 units, 2) maintains the existing block leve l (ending level) for the second block, and 3) adds the customer charge . The block pricing is slightl y lower than the current rate structure in order to be revenue neutral . Singl e Monthly Customer Charge Family Rate Structure Option 4 $5 .00 Consumption Charges Per Uni t Block 1 First 8 units $5 .90 Block 2 9— 25 units $7 .3 8 Block 3 > 25 units $9 .2 6 •Option 5 — Revised Block Rate Structure plus Minimum Bil l Rate structure Option 5 is similar to Option 2 . However, this rate option includes a monthly customer charge and includes 1 unit of water in the monthly customer charge . The customer charg e is set to be approximately the same cost as the second block rate . This rate structure enhances revenue stability through the addition of the monthly customer charge and changing the bloc k structure . The monthly customer charge would be billed regardless of water use which could b e difficult to understand or explain . This rate structure enhances the revenue stability through th e monthly customer charge and increased block sizing ; it maintains equity . Single Family Rate Structure Opt on 5 Monthly Customer Charge $6.0 0 Consumption Charges.Per Unit Block 1 First 1 unit $0 .0 0 Block 2 2 — 8 units $6 .1 3 Block 3 > 8 units $7 .66 Single Family Monthly Water Bill Compariso n Based on the various block pricing alternatives and customer charges (if applicable) of each option , HDR Engineering calculated the impacts to single family customers under various consumptio namounts. The following table is a summary of the billing information . SS1-3 Water Rate Structure Study Page 4 Single Family Monthly Bill Compariso n Consumption 3 units 7 units 12 units 25 unit s Option 1-Current $18 .75 $46 .89 $85 .99 $187 .6 5 Option 2-Revised blocks $19 .29 $45 .01 $83 .60 $188 .1 2 Option 3-Current +customer charge $22 .82 $49 .56 $86 .71 $183 .3 0 Option 4-Revised blocks +custome r charge $22 .70 $46 .30 $81 .72 $177 .6 6 Option 5-Revised blocks +minimum $18 .26 $42 .78 $79 .55 $179 .1 3 Council will have the opportunity to work with HDR Engineering during the study session to adjus t components of any of these water rate structure options . Maintaining revenue neutrality will b e critical . 2 .Multi-family and Non-residential Water Rate Structure Option s Five rate structure options for multi-family and non-residential customers were developed based o n the Council's prioritized goals and objectives . They correspond to the single family options in orde r to create consistency between customer classes when selecting a final alternative . Option 1 — Current Rate Structur e The option aligns with the single family Option 1 ; the current rate structure for multi-family an d non-residential is a two block rate structure {residential has three blocks) and is 100% volumetri c with no customer charge . Multi-Family and Non-Residential Rate Structure Option 1 Monthly Customer Charge $0 .0 0 Consumption Charges Per Unit Block 1 First 5 units $6 .2 5 Block 2 >6 units $7,8 2 Option 2 — Revised Block Structure Option 2 aligns with the residential Option 2 . It increases the number of units in Block 1 and increases pricing in each block in order to remain revenue neutral . Multi-Family and Non-Residential Rate St ructur e Option 2 Monthly Customer Charge $0 .0 0 Consumption Charges Per Uni t Block 1 First 8 units $6 .43 Block 2 >8 units $8 .04 Option 3 — Current Rate Structure with Customer Charg e This option is similar to single family Option 3 but it has two blocks instead of the three blocks i n single family ; consistent with the current rate structure philosophy . SS1-4 • • Water Rate Structure Study Page 5 Multi-Family and Non-Residential Rate Structure Option 3 Monthly Customer Charge $5 .0 0 Consumption Charges Per Uni t Block 1 First 5 units $5 .94 Block 2 >25 units $7 .4 3 Option 4 — Uniform Rate with Customer Charg e The multi-family and non-residential rate structure Option 4 would eliminate block pricing in favo r of a uniform rate plus a customer charge . This option could be used in conjunction with any of th e single family options . The rate structure increases customer understandability, revenue stability , equity, and predictability although it differs significantly from the corresponding single family rat e structures and does not encourage conservation through block pricing . Multi-Family and Non-Residential Rate Structure Option 4 Mon hl Customer Char e $5 .00 Consumption Charges Per Uni t All Consumption $7 .5 0 Option 5 -Revised Block Rate Structure plus Minimum Bill Option 5 corresponds to the single family Option 5 and has the same attributes . Multi-Family and Non-Residential Rate Stricture Option 5 Monthly Customer Charge $6 .00 Consumption Charges Per Unit Block 1 First 1 unit $0 .00 Block 2 2— 8 units $6 .1 3 Block 3 > 8 units $7 .6 6 Multi-family and Non-residential Monthly Bill Compariso n The HDR Engineering technical memorandum (Attachment 1)compares the rate structure option s for various customer classes at different water consumption levels on pages 8, 9, and 10 . Th e analysis indicates there are cost differences between each option . Studying how these cos t differences impact different users will assist in decision making . As with the single family rat e structure options, Council will have the opportunity to work with the consultant to adjust optio n components . Next Step s HDR will provide the Council with a final report summarizing the steps taken to review the rat e structure, an overview of the rate structures reviewed during the study, recommendations of th e analysis HDR will undertake, and a recommended final proposed water rate structure . A fina l meeting has been tentatively scheduled for November 20, 2012 at which the Council will be aske d•to take action and make a final decision on a rate structure design . • • SS 1-5 Water Rate Structure Study Page 6 FISCAL IMPAC T There is no fiscal impact associated with participating in the water rate structure study session . ATTACHMENT S 1.HDR Engineering Technical Mem o 2.HDR Engineering Presentatio n T :\Council Agenda Reports\2012\2012-10-16\Water Rate Structure Study (Mattingly-Horton • • SS1-6 Attachment 1 Technical Memorandum H R To :Ron Munds, City of San Luis Obisp o From :Shawn Koorn, HDR Engineering, Inc . Date :10/02/1 2 Subject :Overview of the Rate Design Option s Introductio n HDR and City staff have been working through a review of the current water rate structure with th e City Council . This has included presentations to the Council on "Rates 101", Goals and objectives , and conceptual rate structures . These meetings provided the basis and method of setting rates t o meet their goals and objectives . During the second meeting the City Council and staff prioritized the goals and objectives that wer e presented . Provided below is a summary of the prioritized goals and objectives . Prioritization of the Rate Design Goals and Objective s By The City Council and City Staff city couneil pa*jtizatlon Rank City Staff Prioritizatlof t Revenue Stability & Predictability 1 Stability and Predictability of Rate s Stability and Predictability of Rates 2 Revenue Stability & Predictabilit y •Easy to Understand and Administer 3 Fair Allocation of Costs Fair Allocation of Costs 4 Reflect Present and Future Cost s Discourage Wasteful use 5 Easy to Understand and Administer The above goals were used to develop the conceptual rate structures . These rate structures were presented to the City Council and staff in a workshop setting . At the completion of that workshop , several of the conceptual rate structures were determined move forward for further analysis . Thos e options are presented in more detail below . Single Family Rate Design Option s HDR has developed 5 alternative single family rate structures for review by the City Council an d staff . These options, with the exception of the current rate structure, were designed to meet th e prioritized goals and objectives of the City Council and staff . The alternatives include adding a monthly customer charge, revising the sizing of the consumption blocks/tiers, or a combination o f both . • HDR Engineering, Inc .Page 1of1 0 SS1-7 Attachment 1 Option 1-Current Rate Structur e Single Family Rate Structure Option 1 Monthly Customer Charge $0 .0 0 Consumption Charge s Block 1.First 5 CCF $6 .2 5 Block 2 6 CCF - 25 CCF $ 7 .8 2 Block 3 > 25 CCF $9 .8 0 No revisions or enhancements have been made to the current rate structure . Option 2 - 2 Block Increasing Rate Structure Single Family Rate Structure Option 2 Monthly Customer Charge.$0 .0 0 Consumption Charge s Block I First 8 CCF $6 .43 Block 2 > 8 CCF $8 .04 Rate structure Option 2 does not include a fixed charge, rather to increase revenue stability the firs t block was expanded to 8 CCF . In addition, the third block was eliminated which is similar to pas t rate structures the City has had in place . Under this option it is recommended that the City includ e a reserve policy (i .e ., rate stabilization), to minimize rate impacts as a result of future additiona l declines in consumption patterns for added revenue stability . Option 3 - Current Rate Structure, Plus a Monthly Customer Charg e Single Family Rate Structure Option 3 Monthly Customer Charge $5 .0 0 Consumption Charge s Block 1 First 5 CCF $5 .9 4 Block 2 6 CCF - 25 CCF $7 .4 3 Block 3 > 25 CCF $9 .3 3 Rate structure Option 3 maintains the current three block increasing rate structure . However, this rate structure includes a monthly customer charge . Each customer will pay the fixed custome r charge regardless of monthly water consumption . This rate structure enhances the revenue stability through the monthly customer charge as well as maintains customer understandability b y maintaining the current rate structure . • • HDR Engineering, Inc .Page 2 of 1 0 SS1-8 Attachment 1 Option 4 - Increasing Block Rate Structure with revised block sizes, Plus a Monthly Customer Charge Single Family Rate Structure Option 4 Monthly Customer Charge $5.00 Consumption Charge s Block I First 8 CCF $5.90 Block 2 9 CCF - 25 CCF $7 .38 Block 3 > 25 CCF $9 .2 6 Rate structure Option 4 maintains the current three block increasing rate structure . However, thi s rate structure modifies the block sizes to include 8 units in the first block, and maintains th e existing block levels (ending levels) for the second and third block. In addition, a monthly custome r charge is added to the bill . Each customer will pay the customer charge regardless of monthl y water consumption . This rate structure enhances the revenue stability through the monthl y customer charge and expanded first block . This rate structure is still simple and easy t o understand and administer and adds additional equity between customers . Option 5 - Two block Increasing rate structure, Plus a Monthly Customer Charge, up to one uni t included In the monthly customer charg e Single Family Rate Structure Option 5 Monthly Customer Charge $6 .0 0 Consumption Charges Block 1 First 1 CCF $0 .0 0 Block 2 2 CCF - 8 CCF $6 .1 3 Block 3 > 8 CCF $7 .66 Rate structure Option 5 is similar to Option 2 . However, this rate option includes a monthl y customer charge, and includes 1 unit of water in the monthly fixed charge . This rate structure enhances the revenue stability through the addition of the monthly customer charge, an d expanding the first block . In order to minimize the impacts of the monthly customer charge 1 uni t of water was included in the monthly charge . This rate structure enhances the revenue stabilit y through the monthly customer charge and increased block sizing, as well as maintains custome r understandability and fairness (equity) of the current rate structure . Provided below is a comparison of the monthly bill impacts to a single family customer for eac h option under various consumption amounts . • HDR Engineering, Inc .Page 3 of 1 0 SS 1-9 Attachment 1 Residential Monthly Bill Compariso n $200 .00 $180 .0 0 $160 .00 $140 .0 0 $120 .00 $100 .00 $80 .0 0 $60 .0 0 $40 .0 0 $20 .0 0 $0 .0 0 ■ Present Rates 'T. ■ Option 2 a Option 3 $46 .89 $85 .99 188 .1 2 783 .3 0 177 .6 6 187 .6 5 $22 .70 $46 .30 $81 .7 2 $45 .01 $83 .6 0 $49 .56 $86 .7 1 As part of the review, a comparison of additional customer charge options was developed . Th e additional customer charges included a charge of $7 .50 per month and $10 .00 per month . Provided below is a comparison of the average customer bill impacts for Option 3 and Option 4, th e two options with a monthly customer charge . Residential Monthly Bill Comparison - Option 3 Compariso n $200 .0 0 $180 .0 0 $160 .0 0 $140 .0 0 $120 .0 0 $100 .0 0 $80 .0 0 $60 .0 0 $40 .0 0 $ 20 .0 0 $0 .0 0 ■ Present Rates - --_; !x$7 .50 Customer Charg e ■$5 .00 Customer Charge ~~ la $10 .00 Customer Charge{ 3 7 ]1 2 $18 .75 $46 .89 ~I $85 .99 $22 .82 _$4_9 _56____$86 .7 1 $24 .84 $50 .86 $87 .0 1 $26 .86 $52 .16 $87 .31 2 5 $187 .6 5 $183 .3 0 $181 .0 0 $178 .70 —~!, Attachment 1 As can be seen in the chart above, for rate Option 3, the monthly bill impacts increase unti l approximately 12 units per month, and then the impacts begin to decline based on the variou s customer charge levels . Residential Monthly Bill Comparison-Option 4 Compariso n $200 .0 0 $180 .0 0 $160 .0 0 $140 .0 0 $120 .0 0 $100 .0 0 $80 .0 0 $60 .0 0 $40 .0 0 $20 .0 0 $0 .00 3 7 12 2 5 $187 .65 $177 .66 $171 .3 0 I $165 .1 1 ■ Present Rates $18 .75 $46 .89 $85 .9 9 N $5 .00 Customer Charge $22 .70 $46 .30 $81 .7 2 e$7 .50 Customer Charge $24 .30 $46 .70 $80 .3 0 ■$10 .00 Customer Charge $25 .90 $47 .10 $78 .9 2 For rate Option 4, the bill increases until approximately 7 units per month, and then the monthl y bill impacts begin to decline . Given the increase in the monthly bill to the lower use customers as part of implementing a monthly customer charge, and decrease to the larger use customers, the level of the custome r charge must be considered . Commercial Rate Design Option s Five rate options were developed for the commercial customer class of service as well , which generally link to the residential rate options . In other words, for many of the rat e options, the Council and staff must determine which combined option (both residential an d commercial) best fits their goals and objectives . Option 1-Current Rate Structur e Commercial Rate Structure Option 1 Monthly Customer Charg e Consumption Charges Block 1 2 HDR n nee Ing, 25E f S XHS s "rorN~"?h ~,.*~'t_,$ $0 .0 0 First 5 CCF $6 .2 5 >5 CCF $7 .8 2.82 nc .Page 5 of 1 0 SS1-1 1 • • Attachment 1 No revisions or enhancements have been made to the current rate structure . Option 2 -2 Block Increasing Rate Structure,Revised 1n Block Siz e (Ties to Residential Rate Option 2) Commercial Rate Structure Option 2 Monthly Customer Charge $0 .00 Consumption Charges Block 1 First 8 CCF $6 .43 Block 2 > 8 CCF $8 .04 The second rate option is based on the current rate structure where the rates, and first block size, i s the same as the residential rates, and block size, for Option 2 . Revenue stability is enhance d through the increase in the first block, while customer understanding is maintained as it is base d on the current rate philosophy . Option 3 - Current Rate Structure, Plus a monthly customer charg e (Ties to Residential Rate Option 3) Commercial Rate Structure Option 3 Monthly Customer Charge $5 .0 0 Consumption Charges Block 1 First 5 CCF $5 .94 Block 2 >5 CCF $7 .43 The third rate option is similar to Option 2, however, it adds a monthly customer charge that i s billed regardless of monthly consumption . In addition,_ this rate structure maintains th e relationship to the residential rate structure pricing for Option 3, similar to the current rate structure. Revenue stability is enhanced through the addition of the monthly customer charge . Customer understanding is maintained and fairness (equity) is also increased with the monthl y fixed charge . Option 4 - Uniform Rate Structure, Plus Monthly Customer Charg e Commercial Rate Structure Option 4 Monthly Customer Charge $5 .0 0 Consumption Charge s All Consumption $7 .50 HDR Engineering, Inc .Page 6 of 1 0 SS1-1 2 Attachment 1 The commercial rate Option 4 adds a monthly customer charge to enhance the revenue stability . In addition, the increasing block rate structure has been restructured to a uniform rate, or a rat e • that is the same for all consumption . This rate structure increases customer understandability , revenue stability, fairness (equity), and predictability . This rate structure could be combined wit h any of the residential rate structures, although minor modifications may need to be necessary t o collect the total revenue needs depending on the option chosen . Option 5 - Two block Increasing rate structure, Plus a Monthly Customer Charge, up to one unit included In the monthly customer charge (Ties to Residential Rate Option 5 ) Commercial Rate Structure Option 5 Monthly Customer Charge $6 .0 0 Consumption Charges Block 1 First 1 CCF $0 .0 0 Block 2 2 CCF - 8 CCF $6 .13 Block 3 >8 CCF $7 .66 Rate structure Option 5 is similar to Option 2 . However, this rate option includes a monthl y customer charge, and includes 1 unit of water in the monthly fixed charge . This rate structur e enhances the revenue stability through the addition of the monthly customer charge, an d expanding the first block . In order to maintain consistency between the residential an d commercial rate structure 1 unit of water was also included in the commercial monthly custome r • charge . This rate structure enhances the revenue stability through the monthly customer charg e and increased block sizing, as well as maintains customer understandability and fairness (equity ) of the current rate structure . Provided Below is a comparison of the rates for the various types of commercial customers . • HDR Engineering, Inc .Page 7 of 1 0 SS1-1 3 Attachment 1 Multi-Family Monthly Bill Compariso n j•Present Ratesl $109 .4 5 1g Option 2 ■Option 3 I■Option 4 ®Option 5 $102 .53 $33233 $562 .1 3 All Other Commercial Monthly Bill Compariso n (includes Restaurants, Sm . Warehouse, Laundry, Churches, Sm . Commercial ) $600 .0 0 $500 .0 0 $400 .0 0 $300 .0 0 $200 .0 0 $100 .0 0 $0 .0 0 2 0 IN Present Ratesl $148 .5 5 lOption 2 $147 .9 2 i Option 3 $146 .1 5-}- Option 4 $155 .0 0 la Option 5 $140 .83 $600 .00 $500 .00 $400 .00 $300 .00 $200 .00 $100 .00 $0 .00 $107 .7 2 $109 .0 0 $117 .50 $348 .9 2 $331 .9 0 $342 .50 $590 .1 2 $554 .80 $567 .50 5 0 $383 .1 5 $389 .1 2 $369 .0 5 $380 .0 0 --_--_$370 .63 __ . $523 .8 3 Attachment 1 Hotel/Motel & Lg . Warehouses Monthly Bill Compariso n $1,200 .00 $1,000 .00 $800 .0 0 $600 .0 0 $400 .0 0 $200 .00 95 135 $735 .05 $1,047 .8 5 $750.92 $1,072 .5 2 $703 .40 $1,000 .60 Option 4 ■Option 5 $1,017 .50_ $1,021 .7 3 $717 .5 0 $715 .33 $1,328 .1 3 $1,317 .5 0 Schools Monthly Bill Compariso n $7,000 .0 0 •$6,000 .0 0 $5,000 .0 0 $4,000 .0 0 $3,000 .0 0 $2,000 .00 $1,000 .00 $0 .0 0 ■ Present Rate s W Option 2 ®Option 3 !•Option 4 Is Option 5 500 $3,902 .1 5 $1,997 .12 $4,007 .1 2 $1,855 .05 $3;712 .5 5 $1,880.00 I $3,755 .00 $1,902 .63 li $3,817 .6 3 $1,947 .15 $5,857 .15 $6,017 .12 $5,570 .05 $5,630 .00 $5,732 .63 Page 9 of 1 0 SS1-15 Attachment 1 Irrigation Monthly Bill Compariso n $1,000 .0 0 $900 .0 0 $800 .0 0 $700 .0 0 $600 .0 0 $500 .0 0 $400 .0 0 $300 .0 0 $200 .0 0 $100 .0 0 $0 .00 25 75 12 5 ■ Present Rates $187 .65 $578 .65 $969 .65 Ie0 ption2 $188 .12 $590 .12 $992 .12 r■Option 31 I $183 .3 0 ■Option4 i $192 .5 0 e Options $179 .13 $562 .13 $945 .13', • HDR Engineering, Inc .Page 10 of 1 0 SS1-1 6 $926 .3 0 $567 .50 $942 .50 S Attachment 2 The ."Road Test " Water Rate Structure Revie w October 16,201 2 Presented by: Shawn Koorn Associate Vice Presiden t HDR Engineering,. Inc . city o f al r san Luis o131sp o SS1-17 ', Overview of the Presentation a p 5 H2'c?.,r ..d...a ~J ,.r.:.p pl 51~~4`%{~. 1~k .i. Present rate design option s Council input on final rate structures Prioritization of Attributes By CounAa andBy Staff Revenue Stability & Predictabilit y Stability & Predictability of Rate s Simple and Easy to Understand and Administer 1 Stability & Predictability of Rate s 2 Revenue Stability & Predictability 3 Fair Allocation of Total Cost of Service Amon g Customer Classes Fair Allocation of Total Cost of Service Amon g Customer Classes Reflect All Present and Future Costs & Benefit s of Providing Utility Service s Discourage Wasteful Use, While Promoting Al l Justified Types and Amounts 5 Simple and Easy to Understand and Administe r SS1-19 1 L3.3 Single Family Consumption Summar y Average Monthly Single Family Consumptio n JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DE C Billing Mont h *Based on billing period SS1-2 1 5 Customer Use Summary (ccf ) Single Family Usage Patterns NOV DEC 469 48 8 1,695 1,95 4 3,865 F 4,29 1 3,324 F 2,62 2 93 5 9 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT n Up to 1 456 }478 570 586 528 j 271 428 414 414 38 1 n Up to 3 1,747 2,014 2402 2,483 { 1,971 1,196 1,296 1,460 1,259 1,49 8 I lm UP to 7 3,659 1 4,141 4 ,36.8 4,433 4,006 1 2,900 2,777 2,760 12,735 3,19 5 n Up to 25 3,504 T 2,769 2,358 2,040 3,069 4,994 4,473 1j 4,370 4,644 4,16 7 3 Over 25 83 1 65 43 39 76 J 413 320 I 243 302 192 • %Single Family Consumption By Bloc k Average Monthly Single Family Consumption by Bloc k Current Block Sizin g Block 1 (0-8)Block2 (9-25)Block3 (>25 ) Average Monthly Single Family Consumption by Bloc k Revised Block Sizin g 7 • Road Test Rate Structure Ove Arvie w Focus was on revenue and rate stability and simplicit y Developed 5 rate alternative s —Includes the current rate structur e These were achieved through : Fixed charg e —Revised block/tier sizin g —Revised block/tier pricin g Each residential option coincides with the commercia l rate optio n —Exception is commercial rate option 4 Fixed charge was set at $5 .00/month for example s —Also developed a $7 .50/month and $10 .00/month fo r comparison SS1-24 i R Residential Rate Structure Option s Option 1 –Current Rate Structur e No fixed charg e –Increasing 3-block structur e Option 2 –Increasing 2-block structur e –No fixed charg e –Removed 3 rd bloc k –Increased size of 1St bloc k Option 3 –Increasing 3-block structur e –Fixed charg e –Current rate structure block size s Option 4 –Increasing 3-block rate structur e –Fixed charg e –Revised block sizes (increased 1 St block ) Option 5 –Increasing 2-block rate structur e –Minimum charg e –Includes 1 unit in minimum charg e –Revised sizing and 2-block rate structur e 9 SS1-25 Fill Option 1 Rate Structure Attachment 2 •May not meet revenue/rate stability goa l Simple and easy to understan d ®Maintains conservation incentiv e ®Recommend adding a rate stabilization policy an d reserve SS1-26 ~ Option 1 - Current Rate Structur e Fixed Monthly Charge $0 .0 0 Consumption Charge ($/CCF) First 5 CCF $6 .2 5Block1 Block 2 6 CCF - 25 CCF $7 .8 2 Block 3 25+ CCF $9 .80 Option 2 Rate Structure Attachment 2 11 Option 2 -2-Bock Increasing Rate Structur e Fixed Monthly Charge $0 .0 0 Consumption Charge ($/CCF ) Block 1 First 8 CCF $6 .4 3 Block 2 9+ CCF $8 .0 4 •Increase revenue/rate stability through increase d first block allowanc e ® Still may not meet revenue/rate stability goa l •Simple and easy to understand - predictabl e •May minimize conservation incentiv e •Recommend adding a rate stabilization policy an d reserve SS1-27 Attachment 2 SS1-28 N Option 2 Bill Compariso n City of Luis Obispo - Water Utilit y Rate Evaluation Stud y Proposed Rate Design -Option 2 -Adjusted 2-Block s CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $0 .00 $0 .00 0 .0 % 3 1875 19 .29 0 .54 2 .9 % 31 .25 32 .15 0 .90 2 .9 % 7 46 .89 45 .01 (1 .88)-4 .0 % 10 70 .35 67 .52 (2 .83)-4 .0 % 12 85 .99 83 .60 (2 .39)-2 .8 % 14 101 .63 99 .68 (1 .95)-1 .9 % 16 11727 115 .76 (1 .51)-1 .3 % 18 132 .91 131 .84 (1 .07)-0 .8 % 20 148 .55 147 .92 (0 .63)-0 .4 % 25 187 .65 188 .12 0 .47 0 .3 % PROPOSED RATE S Consumption Charges Consumption Charge s 0 - 5 ccf $6 .25 0 - 8 ccf $6 .4 3 5 - 25 ccf 7 .82 9+ ccf 8 .04 26+ ccf 9 .80 Attachment 2Option 3 Rate Structur e Option 3 -Current Rate Structure, Plus Monthl y Customer Charg e Fixed Monthly Charge . Consumption Charge ($/CCF ) Block 1 First 5 CCF $5 .9 4 Block 2 6 CCF - 25 CCF $7 .4 3 Block 3 25+ CCF $9 .3 3 5 .0 0 Provides additional revenue/rate stabilit y -Through the fixed charg e .Simple and easy to understan d Similar to current rate structur e Maintains conservation incentive SS1-2 9 13 U Option 3 Bill Compariso n City of Luis Obispo - Water Utilit y Rate Evaluation Stud y Proposed Rate Design - Option 3 - Current Rate Structure With Fixe d Month Charg e CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $5 .00 $5 .00 0 .0 % 3 18 .75 22 .82 4 .07 21 .7 % 5 31 .25 34 .70 3 .45 11 .0 % 7 46 .89 49 .56 2 .67 5 .7 % 10 70 .35 71 .85 1 .50 2 .1 % 12 85 .99 86 .71 0 .72 0 .8 % 14 101 .63 101 .57 (0 .06)-0 .1 % 16 117 .27 116 .43 (0 .84)-0 .7 % 18 132 .91 13129 (1 .62)-1 .2 % 20 148 .55 146 .15 (2 .40)-1 .6 % 25 187 .65 183 .30 (4 .35)-2 .3 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $5 .0 0 Consumption Charges Consumption Charge s 0 -5 ccf $625 0 - 5 ccf $5 .94 5 -25 ccf 7 .82 5 - 25 ccf 7 .4 3 26+ccf 9 .80 26+ ccf 9 .33 Option 4 Rate Structur e •Provides additional revenue/rate stabilit y Through fixed charge and increased 1 st block siz e •Simple and easy to understan d •Maintains conservation incentive SS1-31 'Dz15 Option 4 Bill Comparison City of Luis Obispo - Water Utilit y Rate Evaluation Stud y Proposed Rate Design - Option 4 - Fixed Monthly Charge Wit h Adjusted Block On e CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $5 .00 $5 .00 0 .0 % 3 18 .75 22 .70 3 .95 21 .1 % 5 31 .25 34 .50 3 .25 10 .4 % 7 46 .89 46 .30 (0 .59)-1 .3 % 10 70 .35 66 .96 (3 .39)-4 .8 % 12 85 .99 81 .72 (4 .27)-5 .0 % 14 101 .63 96 .48 (5 .15)-5 .1 % 16 11727 111 .24 (6 .03)-5 .1 % 18 132 .91 126 .00 (6 .91)-5 .2 % 20 148 .55 140 .76 (7 .79)-5 .2 % 25 187 .65 177 .66 (9 .99)-5 .3 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $5 .0 0 Consumption Charges Consumption Charge s 0 -5 ccf $625 0 - 8 ccf $5 .9 0 5 -25 ccf 7 .82 8 - 25 ccf 7 .3 8 26+ccf 9 .80 26+ ccf 9 .26 Attachment 2 SS1-32 U Option 5 Rate Structur e 17 Attachment 2 SS1-33 a ®Provides additional revenue/rate stabilit y —Through not significantl y •Simple and easy to understan d •May minimize conservation incentiv e Option 5 - Revised 2-Block Structure, Plus Monthl y Customer Charge (First CCF included ) Fixed Monthly Charge $6 .0 0 Consumption Charge ($/CCF ) Block 1 First 1 CCF $0 .0 0 Block 2 2 CCF - 8 CCF $6 .1 3 Block 3 9+ CCF $7 .66 Option 5 Bill Comparison Attachment 2 City of Luis Obispo - Water Utilit y Rate Evaluation Stud y Proposed Rate Design - Option 5 - Adjusted 2-Blocks With Minimu m Charg e CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $6 .00 $6 .00 0 .0 % 3 18 .75 18 .26 (0 .49)-2 .6 % 5 31 .25 30 .52 (0 .73)-2 .3 % 7 46 .89 42 .78 (4 .11)-8 .8 % 10 70 .35 64 .23 (6 .12)-8 .7 % 12 85 .99 79 .55 (6 .44)-7 .5 % 14 101 .63 94 .87 (6 .76)-6 .7 % 16 117 .27 110 .19 (7 .08)-6 .0 % 18 132 .91 125 .51 (7 .40)-5 .6 % 20 148 .55 140 .83 (7 .72)-5 .2 % 25 187 .65 179 .13 (8 .52)-4 .5 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $6 .0 0 Consumption Charges Consumption Charge s 0-5ccf $625 0-1 ccf $0 .0 0 5 - 25 ccf 7 .82 2 - 8 ccf 6 .1 3 26+ ccf 9 .80 9+ ccf 7 .66 SS1-34 1 L~ • Attachment 2Single Family Rate Design Compariso n Residential Monthly Bill Compariso n $200 .0 0 $180 .0 0 $1 60,00 $140 .00 $120 .00 $100 .00 $80.00 $60 .00 $40 .0 0 $20 .0 0 $0 .0 0 m Present Rate s i IM Option 2 Option 3 NI Option 4 m Option 5 $18 .75 $46 .89 $85 .99 187 .6 5 $19 .29 $45 .01 $83 .60 188 .1 2 $22 .82 $4956 $86 .71 183 .3 0 $22 .70 $46 .30 $81 .72 177 .6 6 $1826 $42 .78 $79 .55 179 .13 19 SS1-35 lilt S Fixed Charge Structure Comparison hment 2 Option 3 Residential Monthly Bill Comparison - Option 3 Compariso n $200 .0 0 $180 .0 0 $160 .0 0 $140 .0 0 $120 .0 0 $100 .0 0 $80 .0 0 $60 .0 0 $40 .0 0 $ 20 .0 0 $0 .0 0 ■ Present Rates $187 .6 5$85 .9 9$46 .8 9$18 .7 5 ■ $5 .00 Customer Charge $22 .82 $183 .3 0$86 .7 1$49 .5 6 $7 .50 Customer Charge $24 .84 $181 .0 0$87 .0 1$50 .8 6 ■ $10 .00 Customer Charge $26 .86 $178 .7 0$87 .3 1$52 .16 Fixed Charge Structure Comparison hment 2 Option 4 Residential Monthly Bill Comparison - Option 4 Compariso n $200 .0 0 $180 .0 0 $160 .0 0 $140 .0 0 $120 .0 0 $100 .0 0 $80 .0 0 $ 60 .0 0 $40 .0 0 $20 .0 0 $0 .0 0 ■Present Rates $187 .6 5$18 .75 7 $46 .8 9 ■$5 .00 Customer Charge $177 .6 6 12 $85 .9 9 $81 .7 2$22 .7 0 ■$7 .50 Customer Charg e ■$10 .00 Customer Charge $171 .3 0 $46 .3 0 $46.7 0$24 .3 0 $25 .90 $165 .1 1 $80 .3 0 $78 .9 2$47 .10 SS1-37 '~ All Other Customers Rate Structures Multi-Family Usage Patter n Multi-Family Usage Under 5 CC F Multi-Family SS1-3 923 U Commercial Usage Pattern s Commercial/Churche s Commercial/Church Usage Under 5 CCF 7-i JAN FEB MAR APR MAY JUN 1 JUL AUG SEP OC TF-`' r —i--—f -----r .L .NOVDE C—~Commerciaf/Church 718 730 744 761 745 632 699 686 671 705 731 744 • Commercial Usage Pattern s Care Facilities and Manufacture s Commercial Usage Under 5 CC F (Care Facilities and Manufactures) SS1-4 125 Restaurants Fast Food Hotel/Motels Laund r Commercial Usage Under 5 CC F (Restaurants, Fast Food, Hotel/Motel, and Laundry Facilities) JAN FEB MAR APR 1 MAY JUN JUL AUG SEP OCT NOV DE C Ba r/ Restaurant 1 8 10 9 9 9 9 8 8 10 i 9 8 8 Fast Food/Deli 6 7 8 7 7 7 7 5 5 6 5 5 Hotel/Motel 2 2 4 2 3 2 1 0 8 0 0 2 Laundry Facility 12 13 12 10 14 15 15 1.2 12 12 10 12 U Schools Usage Pattern SS1-43 Hia27 Urrigation Usage Patter n Irrigation Usage Under 5 CC F o SE P )ANFEB1MARAPRMAYJUN: JUL AUG __1_95 NOVL 30 8 III Irrigation 292 29 8 29$281 322 281 193 ' 204 188 181 195 232 308 • Attachment 2Average Monthly Consumptio n JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Bar/Restaurant —Care Facility —Child Care Faci —Commercial/Chur —Fast Food/Deli/ —Hotel/Motel —Laundry Facilit —Manufacturer/Wa•-°°-Schools Irrigation SS1-45 FD°,29 Atta hment,2All Other Customer Rate Structure Option s Option 1 –Current Rate Structur e No fixed charg e —Increasing 3-block structur e Option 2 –Increasing 2-block structur e —No fixed charg e Removed 3 rd bloc k —Increased size of 1 st bloc k Option 3 –Increasing 3-block structur e Fixed charg e Current rate structure block size s Option 4 –Uniform Rat e Fixed charg e —No block s Option 5 –Increasing 2-block rate structur e —Minimum charg e —Includes 1 unit in minimum charg e —Revised block size 2-block rate structure SS1-46 'Z • Option 1 Rate Structur e May not meet revenue/rate stabilit y •Possible intra-class inequitie s •Is simple and easy to understand SS1-47 'Z31 Option 2 Rate Structure Attachment 2 •Enhanced revenue stability through increased firs t block sizin g —May not meet revenue/rate stabilit y •Is simple and easy to understand SS1-4 8 S Option 2 Bill Comparison Attachment 2 City of Luis Obispo - Water Utilit y Rate Evaluation Stud y Pro •osed Rate Design - O . Lion 2 - Adusted 2-Block s CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $0 .00 $0 .00 0 .0 % 5 31 .25 32 .15 0 .90 2 .9% 15 109 .45 107 .72 (1 .73)-1 .6% 20 148 .55 147 .92 (0 .63)-0 .4% 25 187 .65 188 .12 0 .47 0 .3% 35 265 .85 268 .52 2 .67 1 .0% 45 344 .05 348 .92 4 .87 1 .4 % 50 383 .15 389 .12 5 .97 1 .6 % 55 422 .25 429 .32 7 .07 1 .7 % 65 500 .45 509 .72 9 .27 1 .9 % 70 539 .55 549 .92 10 .37 1 .9 % 75 578 .65 590 .12 11 .47 2 .0 % 85 656 .85 670 .52 13 .67 2 .1 % 95 735 .05 750 .92 15 .87 2 .2 % 125 969 .65 992 .12 22 .47 2 .3 % 135 1,047 .85 1,072 .52 24 .67 2 .4 % 175 1,360 .65 1,394 .12 33 .47 2 .5 % 250 1,947 .15 1,997 .12 49 .97 2 .6 % 500 3,902 .15 4,007 .12 104 .97 2 .7 % 750 5,857 .15 6,017 .12 159 .97 2 .7 % 1,000 7,812 .15 8,027 .12 214 .97 2 .8 % 1,250 9,767 .15 10,037 .12 269 .97 2 .8 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $0 .0 0 Consumption Charges Consumption Charge s 0 - 5 ccf $625 0 - 8 ccf $6 .4 3 6+ ccf 7 .82 8+ ccf 8 .04 SS 1-49 I I_.J~33 Option 3 Rate Structur e •Provides additional revenue/rate stabilit y-Through the fixed charg e •Simple and easy to understand Attachment 2Option 3Bill Comparison City of Luis Obispo - Water Utility Rate Evaluation Stud y Proposed Rate Design - Option 3 -Current Rate Structure With Fixe d CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $5 .00 $5 .00 0 .0 % 5 31 .25 34 .70 3 .45 11 .0 % 15 109 .45 109 .00 (0 .45)-0 .4 % 20 148 .55 146 .15 (2 .40)-1 .6 % 25 187 .65 183 .30 (4 .35)-2 .3 % 35 265 .85 257 .60 (8 .25)-3 .1 % 45 344 .05 331 .90 (12 .15)-3 .5% 50 383 .15 369 .05 (14 .10)-3 .7% 55 422 .25 406 .20 (16 .05)-3 .8% 65 500 .45 480 .50 (19 .95)-4 .0 % 70 539 .55 517 .65 (21 .90)-4 .1 % 75 578 .65 554 .80 (23 .85)-4 .1 % 85 656 .85 629 .10 (27 .75)-4 .2 % 95 735 .05 703 .40 (31 .65)-4 .3 % 125 969 .65 926 .30 (43 .35)-4 .5 % 135 1,047 .85 1,000 .60 (47 .25)-4 .5 % 175 1,360 .65 1,297 .80 (62 .85)-4 .6 % 250 1,947 .15 1,855 .05 (92 .10)-4 .7 % 500 3,902 .15 3,712 .55 (189 .60)-4 .9 % 750 5,857 .15 5,570 .05 (287 .10)-4 .9 % 1,000 7,812 .15 7,427 .55 (384 .60)-4 .9 % 1,250 9,767 .15 9,285 .05 (482 .10)-4 .9 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $5 .0 0 Consumption Charges Consumption Charge s 0 - 5 ccf $6 .25 0 - 5 ccf $5 .94 6+ ccf 7 .82 6+ ccf 7 .43 SS1-5 135 U Option 4 Rate Structure Attachment 2 ®Provides additional revenue/rate stabilit y —Fixed charge and uniform rate structur e ®Simple and easy to understan d ®Provides intra-class equities SS1-52 ID'-( Option 4 -Uniform Rate, Plus Monthly Custome r Charge Fixed Monthly Charge 5 .0 0 Consumption Charge ($/CCF ) Block 1 Uniform Rate $7 .50 • Option 4 Bill Comparison City of Luis Obispo - Water Utilit y Rate Evaluation Stud y Proposed Rate Design - Option 3 - Fixed Monthly Charge With A Uniform Rate CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $5 .00 $5 .00 0 .0 % 5 31 .25 42 .50 11 .25 36 .0 % 15 109 .45 117 .50 8 .05 7 .4 % 20 148 .55 155 .00 6 .45 4 .3 % 25 187 .65 192 .50 4 .85 2 .6 % 35 265 .85 267 .50 1 .65 0 .6 % 45 344 .05 342 .50 (1 .55)-0 .5 % 50 383 .15 380 .00 (3 .15)-0 .8 % 55 422 .25 417 .50 (4 .75)-1 .1 % 65 500 .45 492 .50 (7 .95)-1 .6% 70 539 .55 530 .00 (9 .55)-1 .8% 75 578 .65 567 .50 (11 .15)-1 .9% 85 656 .85 642 .50 (14 .35)-2 .2 % 95 735 .05 717 .50 (17 .55)-2 .4% 125 969 .65 942 .50 (27 .15)-2 .8 % 135 1,047 .85 1,017 .50 (30 .35)-2 .9 % 175 1,360 .65 1,317 .50 (43 .15)-3 .2 % 250 1,947 .15 1,880 .00 (67 .15)-3 .4 % 500 3,902 .15 3,755 .00 (147 .15)-3 .8 % 750 5,857 .15 5,630 .00 (227 .15)-3 .9 % 1,000 7,812 .15 7,505 .00 (307 .15)-3 .9 % 1,250 9,767 .15 9,380 .00 (387 .15)-4 .0 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $5 .0 0 Consumption Charges Consumption Charge s 0 -5 ccf $6 .25 Uniform Rate $7 .5 0 6+ ccf 7 .82 Attachment 2 Option 5 Rate Structur e ®Provides additional revenue/rate stabilit y Through the fixed charg e •Simple and easy to understand Option 5 Bill Comparison Attachment 2 City of Luis Obispo -Water Utility Rate Evaluation Study Proposed Rate Design - Option 5-Adjusted 2-Blocks With Minimu m Chang e CONSUMPT PRESENT PROPOSED $DIFF %DIF F 0 $0 .00 $6 .00 $6 .00 0 .0 % 5 3125 30 .52 (0 .73)-2 .3 % 15 109 .45 102 .53 (6 .92)-63 % 20 148 .55 140 .83 (7 .72)-52 % 25 187 .65 179 .13 (8 .52)-4 .5 % 35 265 .85 255 .73 (10 .12)-3 .8 % 45 344 .05 332 .33 (11 .72)-3 .4 % 50 383 .15 370 .63 (12 .52)-3 .3 % 55 42225 408 .93 (13 .32)-3 .2 % 65 500 .45 485 .53 (14 .92)-3 .0 % 70 539 .55 523 .83 (15 .72)-2 .9 % 75 578 .65 562 .13 (16 .52)-2 .9 % 85 656 .85 638 .73 (18 .12)-2 .8 % 95 735 .05 715 .33 (19 .72)-2 .7 % 125 969 .65 945 .13 (24 .52)-2 .5 % 135 1,047 .85 1,021 .73 (26 .12)-2 .5 % 175 1,360 .65 1,328 .13 (32 .52)-2 .4% 250 1,947 .15 1,902 .63 (44 .52)-2 .3% 500 3,902 .15 3,817 .63 (84 .52)-2 .2 % 750 5,857 .15 5,732 .63 (124 .52)-2 .1 % 1,000 7,812 .15 7,647 .63 (164 .52)-2 .1 % 1,250 9,767 .15 9,562 .63 (204 .52)-2 .1 % PRESENT RATES PROPOSED RATE S Monthly Fixed Charge Monthly Fixed Charg e per customer $0 .00 per customer $6 .0 0 Consumption Charges Consumption Charge s 0 - 5 ccf $625 0 -1 ccf $0 .0 0 6+ ccf 7 .82 2 - 8 ccf 6 .1 3 9+ ccf 7 .66 SS1-55 R39 $300 .0 0 $200,0 0 $100 .00 $0 .00 1 5 $109 .4 5 $107 .7 2 $109 .0 0 $117 .5 0 $102 .53 4 5 $344 .0 5 $348 .9 2 $331,90 7 5 $578 .6 5 $590 .1 2 $554 .8 0 $567 .5 0 $562 .1 3 •Present Rates _ r- Option 2 Option 3 S Multi-Family Rate Design Comparison • Multi-Family Monthly Bill Comparison Smaller Commercial Rate Design Attacl,ment 2 All Other Commercial Monthly Bill Compariso n (includes Restaurants, Sm . Warehouse, Laundry, Churches, Sm . Commercial ) $600 .0 0 $500 .0 0 $400.0 0 $300 .0 0 $200 .0 0 $100 .0 0 $0 .00 $ u ^, $549 .92 $517 .6 5 $530 .0 0 $523 .83 SS157 1-3441 $147 .92 46 .15 Larger Commercial Rate Desig n Compariso n Hotel/Motet & Lg . Warehouses Monthly Bill Compariso n $1,400 .0 0 $1,200 .00 $1,000 .0 0 $800 .0 0 $600 .00 $400 .0 0 $200 .0 0 $0 .00 Present Rates $735 .05 $1,047 .85 $1,360 .6 5 Option 2 $750 .92 $1,072 .52 $1,394 .1 2 Option 3 $703 .40 $1,000 .60 $1,297 .8 0 Option 4 $717 .50 $1,017 .50 $1,317 .5 0 Option 5 $715 .33 $1,021 .73 $1,328.13 95 17 5135 C a a MI Attachment 2Schools Rate Design Compariso n 250 500 75 0 ▪Present Rates .$1,947 .15 $3,902 .15 $5,857 1 5 Vr Option 2 $4,007 .12 $6„017 .12 * Option 3 $1,855 .05 $3,712 .55 $5,570 .0 5 S Option 4 I $1,880 .00 $3,755 .00 1 $5,630 .00 1 Option 5 $1,902 .63 53,817,63 1 $5,732 .6 3 $7,000 .0 0 $6,000 .00 $5,000 .0 0 $4,000 .00 $3,000 .00 $2,000 .00 $1,000 .00 43 SSI-59 U Attachment 2rrigation Rate Design Compariso n Irrigation Monthly Bill Compariso n 25 75 12 5L■ Present Rates $187 .65 $578 .65 $969 .6 5 I i, Option 2 $188 .12 $590 12 $992 .1 2 *Option 3 $183 .30 $554 .80 $926 .3 0 Option 4 $192 .50 $567 50 1 $942 .5 0 a Option S ,$179 .13 $562 .13 $945 .1 3 $1,000 .00 $900 .0 4 $800 .0 0 $700 .00 $600 .0 0 $500 .0 0 $400 .0 0 $300 .0 0 $200 .0 0 $100 .0 0 $0 .00 SS1-60 hD3. Attachment 2 Determine Rat e Structure Goin g Forward SS1-6 1 45 Page intentionally left 0 blank .