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Topics of Discussion

Elk Grove Water District – CAC Meeting Water Rate Update and Connection Fees Habib Isaac – Principal Carlos Villarreal – Technical Advisor January 22, 2013. Topics of Discussion. Adjustments to Rate Analysis Consumption adjustments Revenue check Residential non-metered accounts

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Topics of Discussion

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  1. Elk Grove Water District – CAC MeetingWater Rate Update and Connection Fees Habib Isaac – Principal Carlos Villarreal – Technical Advisor January 22, 2013

  2. Topics of Discussion • Adjustments to Rate Analysis • Consumption adjustments • Revenue check • Residential non-metered accounts • FY 2012-13 consumption projection • Revised proposed rates for each scenario (fix/variable split) • Customer impact based on usage levels • Connection Fees • Background • Methodology

  3. Consumption Adjustments • Received additional usage records • 2011 through 2012 • Usage slightly higher in 2012 versus 2011 • Incorporated average of 2 years into analysis • Result: slightly more units of water to spread cost • Rate per unit of water reduces

  4. Revenue Check • Applied current rates and proposed rates to FY 2011-2012 consumption figures • Revenue test confirmed model is generating appropriate amount of revenue • Difference less than 1%

  5. Residential Non-Metered Accounts • Reduced average usage to equal metered customers • Flat rate reduced • Projected conversion rate of non-metered accounts • All non-metered accounts converted by April 2014 • Consumption for metered accounts increases in first 2 years • New baseline consumption calculated for FY 2012-13

  6. FY 2012-13 Consumption Projection • Between July 2012 – December 2012 • Used 2 year average derived from 2011 and 2012 • Already accounts for non-metered conversions • Between January 2013 – June 2013 • Used 2 year average derived from 2011 and 2012 for existing metered accounts • Projected usage of non-metered account conversions • Conversion rate equals 125 meters per month • Expected usage derived on a per month basis based on 2011 and 2012 data • c

  7. Step Up Rates: Scenario 1 – ~(60% / 40%) Residential Accounts • Tier 1 = $1.60 • Tier 2 = $1.92 • Tier 3 = $3.11 • Non-Residential Accounts • $1.87 • Irrigation Accounts • $2.00 • Existing Structure • Tier 1 = $1.46 • Tier 2 = $1.80

  8. Step Up Rates: Scenario 1 - ~(60% / 40%)

  9. Customer Impact – Scenario 1: Step Up ~(60%/40%) 14.08 3.46 (1.10)

  10. Step Up Rates: Scenario 2 - ~(65% / 35%) Residential Accounts • Tier 1 = $1.41 • Tier 2 = $2.81 • Non-Residential Accounts • $1.60 • Irrigation Accounts • $1.72 • Existing Structure • Tier 1 = $1.46 • Tier 2 = $1.80

  11. Step Up Rates: Scenario 2 - ~(65% / 35%)

  12. Customer Impact – Scenario 1: Step Up (35%/65%) 8.14 2.38 2.98

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