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City of Pleasanton <br />2025 Water Rate Study <br /> <br />Water Resources Economics <br />80 <br />5.8 COST-OF-SERVICE BY CUSTOMER CLASS <br />The final step in the cost-of-service analysis is to determine the cost to serve each customer class based <br />on the cost components which is shown in Table 5-15. The unit cost by cost component is multiplied by <br />the units of service to determine the cost to serve recycled irrigation customers. Note that the total cost- <br />of-service is equal to the total rate revenue requirement for FY 2025 (Table 5-1). <br /> <br />Table 5-15: Recycled Cost-of-Service Allocation by Cost Component and Customer Class <br />Line Customer Class Meter Customer Water <br />Supply Delivery Rev. <br />Offset Total <br />1 Recycled Irrigation $21,000 $5,282 $1,338,363 $938,499 ($9,500) $2,293,644 <br /> <br />5.9 RECYCLED WATER RATES <br />PROPOSED CHANGES TO RATE STRUCTURE <br />Currently the City has the same bi-monthly fixed charges for potable and recycled water customers. To <br />ensure that potable and recycled water customers only pay for the costs specific to each service, WRE <br />recommends implementing separate bi-monthly fixed charges for potable and recycled water <br />customers. <br /> <br />5.10 PROPOSED BI-MONTHLY FIXED CHARGES <br />REVENUE NEUTRAL RATES <br />Table 5-16 shows the revenue neutral bi-monthly fixed charge calculations. The Meter and Customer unit <br />costs are from Table 5-14 (Lines 1-2). Meter unit costs are multiplied by the meter capacity ratio; <br />Customer costs do not vary based on meter size and thus are the same for all meter sizes. The revenue <br />neutral rate represents the cost-of-service analysis for FY 2025 but does not include the proposed <br />revenue adjustments for the first year of rates in FY 2026. <br /> <br />Table 5-16: Revenue Neutral Recycled Bi-Monthly Fixed Charges <br />Line Meter Size Meter Ratio Number of <br />Accounts <br />Meter <br />Charge <br />Customer <br />Charge <br />Revenue <br />Neutral Rate <br />1 5/8" 1.00 5 $3.20 $5.91 $9.11 <br />2 3/4" 1.50 1 $4.80 $5.91 $10.71 <br />3 1" 2.50 15 $8.00 $5.91 $13.91 <br />4 1 1/2" 5.00 83 $16.00 $5.91 $21.91 <br />5 2" 8.00 32 $25.61 $5.91 $31.51 <br />6 3" 17.50 7 $56.01 $5.91 $61.92 <br />7 4" 31.50 4 $100.82 $5.91 $106.73 <br />8 6" 65.00 2 $208.05 $5.91 $213.96 <br />9 8" 140.00 0 $448.10 $5.91 $454.01 <br />10 10" 210.00 0 $672.15 $5.91 $678.06 <br />