Laserfiche WebLink
2019 Water, Recycled Water, and Sewer Rate Study 4. Rate Structure <br />4,2 PROPOSED RATE STRUCTURE CHANGES <br />This Study recommends implementing the following changes to the water rate structure. <br />Refer to the fixed water charge as the Water Utility Charge (replacing "Basic Water Service <br />Charge"), <br />2. Refer to the consumption -based rate as the Water Usage Charge (replacing "Metered Water <br />Rate"), <br />3. Establish three distinct retail customer classes: <br />a. Single Family Residential <br />b. Multi -Family Residential <br />c. Non -Residential <br />4. Identify specific costs that are designated to be recovered through fixed Water Utility Charge <br />revenue vs. variable Water Usage charge revenue (see Section 4.3), <br />5. Scale the Water Utility Charges based on an updated meter equivalency schedule (see Section <br />3.1.4), <br />6. Reflect the cost of the Water Enterprise's water supply costs through the tiered Water Usage <br />Charges (see Section 4.5), and <br />7. Update the formula used to calculate the annual pass -through cost adjustments (see Section <br />4.7). <br />This Study recommends implementing the following changes to the City's sewer rate structure. <br />1. Establish three distinct retail customer classes: <br />a. Single Family Residential <br />b. Multi -Family Residential <br />G1•►GTi1l:Zmr:m, in <br />2. Shift all cost recovery to a fixed Sewer Utility Charge (thereby eliminating the sewer Commodity <br />Charge), <br />3. Scale the Sewer Utility Charges based on an updated meter equivalency schedule, <br />4.3 RATE STRUCTURE COST CATEGORIES <br />Water Rates <br />As will be explained in detail in the following sections, the proposed water rate structure is divided into <br />components based on two cost categories: the utility's Commodity Costs and Utility Costs. The <br />Commodity Costs will be recovered through the Water Usage Charge (based on water usage) and the <br />City of Santa Ana Stantec 128 <br />