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Page 5 of 8 <br /> <br /> <br />2. Alternative - 75 Percent: Under the alternative scenario of 75 percent fixed charge <br />recovery of Zone 7 costs, year 1 Single Family customer bi-monthly water bills will be <br />impacted as follows: <br /> <br />For both scenarios, the proposed water rate structure has a higher impact on lower- <br />consumption customers as compared to higher-consumption customers due to <br />switching to a higher fixed-cost recovery model for financial stability and a switch to <br />uniform consumption-based variable charges (based on recent court cases which ruled <br />against tiered variable charges), which both had previously provided heavily reduced <br />rates for low usage customers. A comparison of the year 1 bi-monthly bill impacts for <br />both scenarios based on usage levels is presented below: <br /> <br />Page 207 of 249