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City of Pleasanton
<br />2025 Water Rate Study
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<br />Water Resources Economics
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<br />Table 6-3: Variable Revenue Loss by Stage
<br />Line Variable Revenue Loss Baseline Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6
<br />1 Variable Charges FY2026
<br />2 Single Family $5.70 $5.70 $5.70 $5.70 $5.70 $5.70 $5.70
<br />3 Multi-Family $5.70 $5.70 $5.70 $5.70 $5.70 $5.70 $5.70
<br />4 Commercial/ Industrial $5.70 $5.70 $5.70 $5.70 $5.70 $5.70 $5.70
<br />5 Potable Irrigation $5.70 $5.70 $5.70 $5.70 $5.70 $5.70 $5.70
<br />6
<br />7 Variable Revenues
<br />8 Single Family $16,007,589 $14,406,830 $12,806,071 $11,205,313 $9,604,554 $8,003,795 $6,403,036
<br />9 Multi-Family $3,262,441 $2,936,197 $2,609,952 $2,283,708 $1,957,464 $1,631,220 $1,304,976
<br />10 Commercial/ Industrial $3,395,638 $3,056,074 $2,716,511 $2,376,947 $2,037,383 $1,697,819 $1,358,255
<br />11 Potable Irrigation $5,999,313 $5,399,381 $4,799,450 $4,199,519 $3,599,588 $2,999,656 $2,399,725
<br />12 Total $28,664,981 $25,798,483 $22,931,985 $20,065,487 $17,198,988 $14,332,490 $11,465,992
<br />13
<br />14 Variable Revenue Loss $0 $2,866,498 $5,732,996 $8,599,494 $11,465,992 $14,332,490 $17,198,988
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<br />WATER SUPPLY COST DIFFERENCES
<br />Table 6-4 shows the calculation of water supply costs for each stage. The water supply cost differences in this section do not assume an
<br />increase to the Zone 7 variable cost of water.
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<br />The total consumption in each stage (Line 1) is from Table 6-2 (Line 8). A water loss percentage of 10% (Line 2; from Table 2-13, Line 1) is applied
<br />to the total consumption (Line 1) to determine the total amount of water purchased from Zone 7 (Line 3), assuming that Zone 7 represents 100%
<br />of the City’s water supply. The Zone 7 variable charge (Line 4; from Table 2-13, Line 6) is the FY 2026 rate. The Zone 7 variable cost (Line 5) is
<br />calculated by multiplying the Zone 7 purchases (Line 3) by the Zone 7 variable charge (Line 4). Note that the water supply cost differences do not
<br />assume any change to Zone 7 variable costs; drought rates are designed to recover the costs of each stage, with all other costs being equal.
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<br />The supply cost difference (Line 7) represents the impacts of the usage reductions in each stage. The City will see cost savings in each stage
<br />since Zone 7 represents 100% of the City’s water supply.
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