Agmt 2002 Lawson_Craig R - Laserfiche WebLink

Home

3-2. Alternative Use Bases for Industrial Rate Relief: Based on the results of Task 1-1 data and capacity rights data to be supplied by City staff, industrial rate sensitivity analyses will be developed based on a number of use bases including non-concurrent and concurrent peak month discharges, estimated non- concurrent and concurrent capacity rights, and average use. 3-3. Alternative Cost Allocations for Future Capacity: A new concept developed by this consultant but not yet tested with regulatory staff is the allocation of costs allocable to future capacity. Regulations require that all operating costs be removed via user charges assessed exiting system users; the allocation of these costs among users, however, can vary. Regulatory approval of this new concept is likely, though it probably would establish precedence and would thus be closely scrutinized. 3-4. Alternate Collection System Cost Allocation: A fourth method is available but adequate data may not be available and if available an engineering effort is needed. If it is possible to identify total diameter-inch-miles of collection system together with industry's proportional use of same, collection system costs can be allocated via a two-stage process thus lowering associated costs to industry. Not that though this method can provide rate relief to industry, it is relatively difficult to develop and update as compared to the other methods, which are proposed to be studied. Further note that most of the work required to conduct this task would be performed by City staff, the Consultant would refine the computer model and present a discussion of the results of this task. EXHIBIT A Page 5 of 5 CSA for Craig R.Lawson June 2002