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Cost of Service Analysis
<br />Section 4
<br />Unit costs for each billable parameter are calculated by dividing the annual revenue requirement for
<br />each parameter (listed in Table 4-2) by the annual amount of discharge for each parameter or the
<br />number of accounts/dwelling units (listed in Tables B-1 through B-4). The calculation of billable
<br />parameters unit costs for FY20 - FY24 is summarized in the table below.
<br />FY20 FY21 FY22 FY23 FY24
<br />Calculation of Flow Unit Cost
<br />Revenue Requirement, $
<br />$5,314,513
<br />$5,819,268
<br />$6,372,132
<br />$6,977,443
<br />$7,640,328
<br />Units of Use, Million Gallons (MG)
<br />from Table B-2
<br />1,603
<br />1,603
<br />1,603
<br />1,603
<br />1,603
<br />Unit Cost, $ per MG
<br />$3,315
<br />$3,630
<br />$3,974
<br />$4,352
<br />$4,766
<br />Calculation of BOD Unit Cost
<br />Revenue Requirement, $
<br />$2,938,955
<br />$3,218,087
<br />$3,523,824
<br />$3,858,564
<br />$4,225,143
<br />Units of Use, Thousand Pounds (Klbs)
<br />from Table B-3
<br />6,410
<br />6,410
<br />6,410
<br />6,410
<br />6,410
<br />Unit Cost, $ per Klbs
<br />$459
<br />$502
<br />$550
<br />$602
<br />$659
<br />Calculation of 55 Unit Cost
<br />Revenue Requirement, $
<br />$3,918,606
<br />$4,290,782
<br />$4,698,431
<br />$5,144,752
<br />$5,633,524
<br />Units of Use, Thousand Pounds (Klbs)
<br />from Table B-4
<br />4,931
<br />4,931
<br />4,931
<br />4,931
<br />4,931
<br />Unit Cost, $ per Klbs
<br />$795
<br />$870
<br />$953
<br />$1,043
<br />$1,142
<br />Calculation of Account/Billing Units Unit Cost
<br />Revenue Requirement, $
<br />$1,304,925
<br />$1,428,863
<br />$1,564,613
<br />$1,713,241
<br />$1,876,006
<br />Units of Use, Accounts/Billing Units
<br />from Table B-1
<br />16,221
<br />16,221
<br />16,221
<br />16,221
<br />16,221
<br />Unit Cost, $ per Account/Billing Unit
<br />$80
<br />$88
<br />$96
<br />$106
<br />$116
<br />Unit Cost per Month, $ per Account/Billing
<br />Unit
<br />$6.70
<br />$7.35
<br />$8.05
<br />$8.80
<br />$9.65
<br />The unit costs for each billable parameter listed in the table above are used to develop revenue required
<br />from rates for every customer class. Use of these unit costs to develop revenue requirements, rates and
<br />monthly bills ensures that revenue requirements are equitably recovered from customer classes in
<br />proportion to the cost of serving those customer classes.
<br />Ea Ii r �• !
<br />The unit costs for each billable parameter are used to allocate revenue required from rates to each
<br />customer class. Calculation of customer class revenue requirements are shown in tables in Appendix D:
<br />Table D-1 (Accounts and Billing Units Revenue by Customer Class), Table D-2 (Flow Revenue by
<br />Customer Class), Table D-3 (BOD Revenue by Customer Class), and Table D-4 (SS Revenue by Customer
<br />Class. The sum of Flow, BOD, and SS revenue requirements by customer class is shown in Table D-5.
<br />Revenue requirements by customer class include "Inflow/Infiltration (1/1)" as a customer class. Revenue
<br />requirements for 1/1 are then allocated among the remaining customer classes as shown in Table D-6.
<br />4-3
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