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Cost of Service Analysis Section 4
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<br /> 4-3
<br />Use of contents on this sheet is subject to the limitations specified at the end of this document.
<br />4.3 Billable Parameter Unit Costs
<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.
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<br />Table 4-3. Billable Parameters Unit Costs
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<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 />4.4 Allocation of Revenue to Customer Classes
<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 (I/I)” as a customer class. Revenue
<br />requirements for I/I are then allocated among the remaining customer classes as shown in Table D-6.
<br />FY20 FY21 FY22 FY23 FY24
<br />Calculation of Flow Unit Cost
<br />Revenue Requirement, $ $5,314,513 $5,819,268 $6,372,132 $6,977,443 $7,640,328
<br />Units of Use, Million Gallons (MG)from Table B-2 1,603 1,603 1,603 1,603 1,603
<br />Unit Cost, $ per MG $3,315 $3,630 $3,974 $4,352 $4,766
<br />Calculation of BOD Unit Cost
<br />Revenue Requirement, $ $2,938,955 $3,218,087 $3,523,824 $3,858,564 $4,225,143
<br />Units of Use, Thousand Pounds (Klbs)from Table B-3 6,410 6,410 6,410 6,410 6,410
<br />Unit Cost, $ per Klbs $459 $502 $550 $602 $659
<br />Calculation of SS Unit Cost
<br />Revenue Requirement, $ $3,918,606 $4,290,782 $4,698,431 $5,144,752 $5,633,524
<br />Units of Use, Thousand Pounds (Klbs)from Table B-4 4,931 4,931 4,931 4,931 4,931
<br />Unit Cost, $ per Klbs $795 $870 $953 $1,043 $1,142
<br />Calculation of Account/Billing Units Unit Cost
<br />Revenue Requirement, $ $1,304,925 $1,428,863 $1,564,613 $1,713,241 $1,876,006
<br />Units of Use, Accounts/Billing Units from Table B-1 16,221 16,221 16,221 16,221 16,221
<br />Unit Cost, $ per Account/Billing Unit $80 $88 $96 $106 $116
<br />Unit Cost per Month, $ per Account/Billing Unit $6.70 $7.35 $8.05 $8.80 $9.65
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