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City of Pleasanton
<br />2025 Water Rate Study
<br />
<br />Water Resources Economics
<br />66
<br />additional Proposition 218 noticing process to be passed through to the City’s customers. Zone 7 costs
<br />are projected throughout the four-year period, projected to increase by 5% each year (Table 2-12, Line 4).
<br />Table 4-10 and Table 4-11 show the unit cost calculation of Zone 7 fixed and variable water supply costs
<br />based on projected Zone 7 costs.
<br />
<br />Table 4-10 shows Zone 7 fixed unit cost calculation. Zone 7 fixed costs (Line 1) are from Table 2-13 (Line
<br />7) and the percentage of Zone 7 fixed costs to be recovered by fixed charges is from Table 4-1 (Line 1), set
<br />constant for the four-year period. The total Zone 7 fixed cost (Line 3) is calculated by multiplying the Zone
<br />7 fixed costs (Line 1) by the percentage of Zone 7 fixed costs to be recovered by fixed charges (Line 2). The
<br />unit cost (Line 5) is calculated by dividing the total cost (Line 3) by the units of service for meters (Line 4;
<br />from Table 3-12, Line 1).
<br />
<br />Table 4-10: Zone 7 Fixed Charge Split Calculation
<br />Line Zone 7 Fixed Costs FY 2026 FY 2027 FY 2028 FY 2029
<br />1 Zone 7 Fixed Costs $11,665,823 $12,249,114 $12,861,570 $13,504,648
<br />2 Recovered by Fixed Charges 100% 100% 100% 100%
<br />3 Total Zone 7 Fixed Cost $11,665,823 $12,249,114 $12,861,570 $13,504,648
<br />4 Equivalent Meters 251,283 251,283 251,283 251,283
<br />5 Unit Cost $46.43 $48.75 $51.18 $53.74
<br />
<br />Table 4-11 shows the Zone 7 variable unit cost calculation. The Zone 7 cost remainder (Line 1) is
<br />calculated from the difference between total projected Zone 7 costs (Table 2-13, Line 9) and total Zone 7
<br />fixed costs recovered by fixed charges (Table 4-10, Line 3). The unit cost (Line 3) is calculated by dividing
<br />the total Zone 7 variable costs (Line 1) by total potable consumption in ccf.
<br />
<br />Table 4-11: Zone 7 Variable Charge Split Calculation
<br />Line Zone 7 Variable Costs FY 2026 FY 2027 FY 2028 FY 2029
<br />1 Zone 7 Cost Remainder $13,717,842 $14,403,734 $15,123,920 $15,880,116
<br />2 Total Consumption 5,028,944 5,028,944 5,028,944 5,028,944
<br />3 Unit Cost $2.73 $2.86 $3.01 $3.16
<br />
<br />The proposed water rate schedule split between City and Zone 7 components is based on the proposed
<br />combined charges (Table 4-8 and Table 4-9) and Zone 7 unit costs based on projected Zone 7 costs
<br />(Table 4-10 and Table 4-11).
<br />
<br />Proposed Zone 7 bi-monthly fixed charges are calculated based on the Zone 7 fixed unit costs for each
<br />year (Table 4-10, Line 5) multiplied by the meter capacity ratio for each meter size (Table 4-2). Proposed
<br />Zone 7 bi-monthly fixed charges increase by 5% each year based on projected Zone 7 fixed costs to be
<br />recovered by fixed charges. Proposed City bi-monthly fixed charges are calculated based on the
<br />difference between proposed combined Zone 7 and City bi-monthly fixed charges (Table 4-8) and
<br />proposed Zone 7 bi-monthly fixed charges (Table 4-13).
<br />
<br />Proposed Zone 7 variable charges (Table 4-14, Line 2) are from Zone 7 variable unit costs for each year
<br />(Table 4-11, Line 3). Proposed City variable charges (Table 4-14, Line 1) are calculated based on the
<br />difference between proposed combined Zone 7 and City variable charges (Table 4-9) and proposed Zone
<br />7 variable charges (Table 4-14, Line 2).
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