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5/21/2025 <br />Connection Fees <br />Connection Fee Methodology <br />•Connection Fee Overview <br />•Connection fees are one-time charges for new development to connect to the system <br />•Financial equity between existing and new customers – “growth pays for growth” <br />•Rates vs. Connection Fees <br />•Water rates are regulated under Prop 218; connection fees are under Prop 26 <br />•Water rates pay for costs of operating and maintaining system for existing customers <br />•Connection fees pay for costs of expanding the system to serve new customers <br />20 <br />19 <br />20 <br />Page 214 of 226