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Section 4 Cost of Service Analysis
<br />
<br />4-2
<br />Use of contents on this sheet is subject to the limitations specified at the end of this document.
<br />4.2 Allocation of Revenue Requirements to Billable Parameters
<br />The allocation of FY20 – FY24 O&M expenses, debt service, capital improvements (cash funded) and
<br />transfers to billable parameters is summarized in the table below. Allocations to billable parameters are
<br />used to allocate annual revenue requirements to billable parameters for rate development. The
<br />allocation of revenue requirements to billable parameters is based on industry standard principles and
<br />methods.
<br />
<br />Table 4-1. Allocation of Expenditures to Billable Parameters
<br />
<br />
<br />The allocation of annual revenue required from rates to billable parameters is summarized in the table
<br />below.
<br />
<br />Table 4-2. Allocation of Annual Revenue Required from Rates to Billable Parameters
<br />
<br />
<br />
<br />Allocation
<br />Account/Account/
<br />FY20-FY24 Dwelling Dwelling
<br />Notes Total Flow BOD SS Unit Flow BOD SS Unit
<br />Expenditures
<br />Collection System 1 $8.9 $8.4 $0.0 $0.0 $0.5 94.0% 0.0% 0.0% 6.0%
<br />WPCP Operations 1, 2 $37.1 $8.9 $11.1 $14.9 $2.2 24.0% 30.0% 40.0% 6.0%
<br />Administrative Support 1 $4.0 $0.0 $0.0 $0.0 $4.0 0.0% 0.0% 0.0% 100.0%
<br />EBDA $3.9 $2.9 $0.0 $0.0 $1.0 73.3% 0.0% 0.0% 26.7%
<br />EBMUD 1 $0.4 $0.0 $0.0 $0.0 $0.4 0.0% 0.0% 0.0% 100.0%
<br />Transfers 1 $0.7 $0.0 $0.0 $0.0 $0.7 0.0% 0.0% 0.0% 100.0%
<br />Debt Service 3 $13.8 $6.0 $3.3 $4.5 $0.0 43.7% 24.1% 32.2% 0.0%
<br />Capital Projects 3 $23.4 $10.2 $5.6 $7.5 $0.0 43.7% 24.1% 32.2% 0.0%
<br />Total $92.3 $36.4 $20.1 $26.8 $8.9 39.4% 21.8% 29.1% 9.7%
<br />Notes:
<br />1 The portion of expenditures allocated to Account/Dwelling Unit is independent of flow or strength of wastewater discharge.
<br />2 The portion of expenditures allocated to Flow, BOD and SS is based on industry standards and State guidelines.
<br />3 Debt Service and Capital Project expenditures allocations are a composite of the other expenditure categories excluding
<br />allocations to the Account/Dwelling Unit function.
<br />FY20 FY21 FY22 FY23 FY24
<br />Revenue Required from Rates from Table C-3 $13,477,000 $14,757,000 $16,159,000 $17,694,000 $19,375,000
<br />Allocation to Functional Cost Categories
<br />Flow from Table 4-1 39%$5,314,513 $5,819,268 $6,372,132 $6,977,443 $7,640,328
<br />BOD from Table 4-1 22%$2,938,955 $3,218,087 $3,523,824 $3,858,564 $4,225,143
<br />SS from Table 4-1 29%$3,918,606 $4,290,782 $4,698,431 $5,144,752 $5,633,524
<br />Account/Billing Units from Table 4-1 10%$1,304,925 $1,428,863 $1,564,613 $1,713,241 $1,876,006
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