ITEM 24 ATTACHMENT 2 - Laserfiche WebLink

City of Pleasanton 2025 Water Rate Study Water Resources Economics 79 FINAL COST-OF-SERVICE ALLOCATION Table 5-12 shows the final cost-of-service allocation based on the adjustments for General and Delivery from the prior report tables. Table 5-12: Recycled Cost-of-Service Allocation by Cost Component (Final) Line Cost Components Final Cost Allocation 1 Meter $21,000 2 Customer $5,282 3 Water Supply $1,338,363 4 Delivery $938,499 5 Rev. Offset ($9,500) 6 Total $2,293,644 5.7 UNIT COST CALCULATION UNITS OF SERVICE DEFINITIONS The appropriate units of service are then established for each cost component based on cost causation, which is shown in Table 5-13. Cost components to be recovered by the fixed charges are assigned units of service based on the number of equivalent meters (Table 5-9). Cost components to be recovered by variable charges are assigned units based on annual usage in ccf. Table 5-13: Recycled Units of Service Definitions Line Cost Components Units of Service Definition Units of Service Units 1 Meter Equivalent meters x 6 mo. 6,561 equiv. meters/ year 2 Customer Meter counts x 6 mo. 894 bills/ year 3 Water Supply Annual usage in ccf 500,262 ccf/ year 4 Delivery Annual usage in ccf 500,262 ccf/ year 5 Rev. Offset Annual usage in ccf 500,262 ccf/ year UNIT COST BY COST COMPONENT Table 5-14 shows the calculation of unit costs by each cost component. The final cost-of-service allocation (Table 5-12) is divided by the units of service (Table 5-13) for each cost component to derive the unit cost. These unit costs will determine the cost-of-service by customer class. Table 5-14: Recycled Unit Cost by Cost Component Line Cost Components Final Cost Allocation Units of Service Unit Cost Units 1 Meter $21,000 6,561 $3.20 equiv. meters/ year 2 Customer $5,282 894 $5.91 bills/ year 3 Water Supply $1,338,363 500,262 $2.68 ccf/ year 4 Delivery $938,499 500,262 $1.88 ccf/ year 5 Rev. Offset ($9,500) 500,262 ($0.02) ccf/ year