|
allocations are based on the projected test year expenses and the total for each cost component reflect the percentages in Table 40.
<br />Table 43 shows the projected test year expenses allocated to each cost component based on the percentages in Table 40 and Table 42.
<br />Table 43. Operating and Non -Operating Cost Allocation to Cost Components
<br />O&M Expenses
<br />$73,493,080 60.4%
<br />27.9%
<br />4.8%
<br />4.6%
<br />1.5%
<br />0.7%
<br />O&MAllocation
<br />$44,361,831
<br />$20,513,035
<br />$3,562,618
<br />$3,394,066
<br />$1,131,355
<br />$530,174
<br />Non -Operating Expenses
<br />$6,724,519 10.9%
<br />75.3%
<br />13.1 %
<br />0.7%
<br />0.1 %
<br />0.0%
<br />Non -Operating Allocation
<br />$730,933
<br />$5,060,717
<br />$878,924
<br />$44,719
<br />$9,226
<br />$0
<br />Table 44 shows the cost allocation by cost causative components under the proposed financial plan before adjustments. Revenue offsets
<br />made up of non -operating revenues for FY 2026 shown in Table 23 will be used to offset purchased water costs in the rate design section.
<br />Other operating revenues are allocated to each cost component based on the overall cost allocation percentages shown in the "percent
<br />of total" row.
<br />Table 44. Rate Revenue Requirements for Test Year, FY 2026
<br />O&M Expenses
<br />$73,493,080 60.4%
<br />27.9%
<br />4.8%
<br />4.6%
<br />1.5%
<br />0.7%
<br />O&MAllocation
<br />$44,361,831
<br />$20,513,035
<br />$3,562,618
<br />$3,394,066
<br />$1,131,355
<br />$530,174
<br />Non -Operating Expenses
<br />$6,724,519 10.9%
<br />75.3%
<br />13.1 %
<br />0.7%
<br />0.1 %
<br />0.0%
<br />Non -Operating Allocation
<br />$730,933
<br />$5,060,717
<br />$878,924
<br />$44,719
<br />$9,226
<br />$0
<br />Total Allocation
<br />$80,217,599 $45,092,764
<br />$25,573,752
<br />$4,441,542
<br />$3,438,785
<br />$1,140,581
<br />$530,174
<br />Percent of Total
<br />56.2%
<br />31.9%
<br />5.5%
<br />4.3%
<br />1.4%
<br />0.7%
<br />Table 45 shows the total cost allocation by cost category that will be used to allocate costs to each customer. Other operating revenue
<br />and net balances are applied based on the overall percentages allocated to each cost category in the percent of total line. Non -operating
<br />revenues are applied directly to offset the cost of variable rates for potable and recycled water customers.
<br />City of Santa Ana - 2026 Water and Sewer Rate Study 33
<br />
|