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I DESCRIPTION OF PROPOSI <br />The proposed rate structure for water service has four customer classes: <br />single-family residential, multi -family residential, non-residential, and recycled <br />water users. The proposed sewer rate structure also has four customer <br />classes: single-family residential, multi -family residential, non-residential, <br />and FOG customers. <br />I AT <br />111 <br />n C'NA <br />WATER RATE STRUCTURE <br />The proposed water rate structure is comprised of two components: a fixed <br />monthly service charge (the "Water Utility Charge"), and the variable water <br />consumption charge (the "Water Usage Charge"). Four customer classes would <br />be established — Single Family, Multi -Family, Non -Residential and Recycled <br />Water users. Commodity costs would be distributed among them based on <br />each customer classes' total water use. Commodity costs for recycled water <br />would be allocated 100 percent to those customers. Utility costs would be <br />allocated to each respective customer class based on meter size. <br />Water usage charges would have two tiers based on the source of the water <br />and its availability. The Tier 1 rate would recover the cost of groundwater <br />extraction, the electricity for producing and distributing that water, and some <br />other costs. Tier 2 would recover the costs of purchasing imported water, the <br />electrical costs for distributing that volume of water. The allocation of water in <br />each tier would be based on the amount of water supply that is available from <br />each respective source. <br />SEWER RATE STRUCTURE <br />The variable Sewer Commodity Charge and fixed Service Charge would be <br />replaced by a single fixed Sewer Utility Charge, based on the size of the water <br />meter and customer class. <br />FIXED CHARGES are independent of <br />the amount of water used. They cover <br />non -fluctuating costs such as capital <br />projects, transmission, distribution, <br />meters and service. <br />VARIABLE CHARGES are calculated <br />based on the amount of water <br />moving through a customer's meter. <br />These charges cover expenses such <br />as purchased water, electricity and <br />treatment chemicals. <br />M • <br />