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City of Pleasanton Water Drought Rates and Connection Fees Technical Memo Page 4 The graphs below show year 1 bill impacts for drought rates during Stage 2 (20% usage reduction) for a Single Family customer at different levels of water usage with 8 ccf exemption. If the customer reduces their usage according to Stage 2, for each usage level the customer will have a lower bi-monthly bill than in normal, non- drought conditions despite the drought rate charges. For lower users, the customer will not be charged drought rates since the reduced usage falls within the allotment. If the low user customer does not reduce their usage the drought rate is minimal. Option 2: Remove drought allotment policy • Benefits: Slightly increases financial stability by collecting drought rates on all usage • Challenges: Higher impact on lower users The table below shows the proposed drought rates with no drought allotment relative to current drought rates with a 10 ccf allotment. Drought Rates Baseline Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Usage Reduction 10%20%30%40%50%60% Current Drought Rates (10 ccf allotment) Single Family Tier 1 $0.77 $1.92 $3.54 $6.34 $11.91 $17.90 Tier 2 $0.90 $2.24 $4.14 $7.40 $13.90 $20.90 Tier 3 $0.98 $2.43 $4.48 $8.01 $15.05 $22.61 Tier 4 $1.01 $2.52 $4.67 $8.36 $15.70 $23.60 Multi-Family $0.77 $1.91 $3.53 $6.32 $11.87 $17.82 Commercial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26 Industrial $0.78 $1.96 $3.62 $6.46 $12.15 $18.26 Irrigation $0.90 $2.25 $4.16 $7.42 $13.95 $20.96 Proposed Drought Rates (0 ccf allotment) Year 1 $0.34 $0.75 $1.28 $1.99 $2.98 $4.46 Year 2 $0.40 $0.87 $1.48 $2.29 $3.43 $5.13 Year 3 $0.44 $0.94 $1.60 $2.48 $3.71 $5.55 Year 4 $0.48 $1.02 $1.73 $2.68 $4.01 $6.00 Page 201 of 226