|
2019 Water, Recycled Water, and Sewer Rate Study
<br />3. Cost -of -Service Analysis
<br />Step 4 - Water
<br />For the Water Enterprise, the Potable Water Commodity Costs are distributed across customer classes
<br />based on each customer classes' total use of water use of potable water, Recycled Water Commodity
<br />Costs are allocated 100% to the recycled water customers, and Utility Costs are allocated to each
<br />respective customer class based on their respective number of equivalent meters (see Table 3-12 and
<br />Table 3-13). For example, in Step 3 we calculated the revenue requirement for Potable Water
<br />Commodity Costs to be $39,339,769 (see Table 3-9). Single Family customers account for 37.34% of the
<br />total annual potable water use (see Table 3-12) and therefore are charged for that percentage of the
<br />potable water revenue requirement, totaling $14,692,083 (see Table 3-13).
<br />Table 3-12: Water Customer Class Units of Service
<br />Multi -Family Residential 4,257,723 29.4% 3,713 8.2% 44,254 12,542 14.8%
<br />Non -Residential 4,812,323 33.2% 5,672 12.5% 5,672 29,810 35.1%
<br />Recycled Water 124,997 NA— 25 0.1% 25 489 0.6%
<br />'Values are based off of FY 2018 water use data
<br />'-` Recycled water use is not considered in the allocation of retail water use among retail customers.
<br />Table 3-13: Water revenue requirement allocation to each customer class
<br />Single Family Residential
<br />$14,688,232
<br />$10,330,420
<br />$25,018,652
<br />Multi -Family Residential
<br />$11,567,253
<br />$3,086,399
<br />$14,653,652
<br />Non -Residential
<br />$13,073,974
<br />$7,335,955
<br />$20,409,929
<br />Recycled Water
<br />$268,937 $120,276
<br />$389,213
<br />TOTAL:
<br />$39.329.459
<br />$268.937 $20.873.051
<br />$60.471.446
<br />Step 4 - Sewer
<br />For the Sewer Enterprise, the Account Costs are distributed across customer classes by the proportional
<br />number of accounts served by the Sewer Enterprise and Utility Costs are allocated by the percent of the
<br />overall adjusted (as explained below) EMS in each customer class (Table 3-14 and Table 3-15).
<br />While an EM is a good proxy for the capacity demand of an account on a water utility, the size of the
<br />meter is only an indirect measure for sewer use since not all water use returns to the sewer in the same
<br />proportion for different types of sewer customers. To account for this difference in sewer usage, a "return -
<br />to -sewer" factor is applied to the EM calculation for each customer class (provided by City staff based on
<br />their understanding of their customer's water usage). This adjusted EM calculation allows for costs to be
<br />allocated to each customer class, respective to their relative demand they may put on the sewer
<br />collection system.
<br />City of Santa Ana Stantec 124
<br />
|