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2019 Water, Recycled Water, and Sewer Rate Study 4. Rate Structure <br />4A CALCULATION OF FIXED UTILITY CHARGES <br />Water Rates <br />As summarized in Section 3.1.2, the COSA allocated costs to the Cost Groups of Potable Water <br />Commodity Costs, Recycled Water Commodity Costs, and Utility Costs. Of those groups, the Utility <br />Costs are fixed, therefore, those costs are proposed to be collected through the fixed Water Utility <br />Charge. The total Utility Costs from all customer classes make up for 34% of the revenue requirement, <br />yielding a significant increase from the current percentage of fixed revenue (approximately 16%). The <br />remaining 66% of costs are variable and are proposed to be collected through the Water Usage Charge. <br />4.4.1 Water Utility Costs <br />As discussed in Section 3, the Utility Costs are made up of expenses such as capital spending, salaries, <br />maintenance, and other fixed operating costs. These costs are driven by the size (i.e. capacity) of the <br />utility. As such, these costs are allocated to customers based on the demands that they place on the <br />system, which is measured based on the size of the customer's meter. <br />As summarized in Section 3.1.4, the revenue requirement designated as Utility Costs, after non -rate <br />revenue was discounted, totaled $10,330,420 for Single Family Residential. Given the meter equivalency <br />schedule described in Section 3.1.1, there are 41,979 equivalent meters in the system which yields a <br />charge of $20.511 per equivalent meter per month for each customer class. Since the Utility costs were <br />allocated to customer classes on an Equivalent Meter basis, the Utility Cost is the same for all customer <br />classes. Table 4-4 provides the scaled Utility Cost by meter size which makes up the fixed Water Utility <br />Charge. The proposed schedules of Water Utility Charges for the planning horizon are presented in <br />Schedule 13 through Schedule 17 of Appendix E. <br />Table 4-4: Monthly Water Utility Charge (FY 2019/20) <br />5/8" x 3/4" <br />1.00 <br />$20.51 <br />3/4" <br />1.50 <br />$30.76 <br />V <br />2.50 <br />$51.27 <br />11/2" <br />5.00 <br />$102.53 <br />2" <br />8.00 <br />$164.04 <br />W <br />17.50 <br />$358.84 <br />4" <br />31.50 <br />$645.91 <br />V <br />65.00 <br />$1,332.83 <br />8" <br />120.00 <br />$2,460.60 <br />1 Minor variations may exist due to rounding <br />City of Santa Ana Stantec 130 <br />