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HomeMy WebLinkAbout11-153APRIL 12, 2011 11 -153 RESOLUTION (CARRIED 6 -0 LOST LAID OVER PURPOSE: ESTABLISH REVISED WATER RATES INITIATED BY: CITY ADMINISTRATION WITHDRAWN ) WHEREAS, the Common Council authorized a 2011 budget that included a 10% increase in Water Utility rates; and WHEREAS, the Common Council authorized and directed staff to complete and file a rate increase application with the Public Service Commission of Wisconsin on November 23, 2010 ; and WHEREAS, staff completed and filed the rate increase application, which was accepted by the Public Service Commission of Wisconsin on January 10, 2011; and WHEREAS, staff worked with the Public Service Commission of Wisconsin as they completed a cost of service analysis and rate design process that determined the increase amount of 9.2% which is necessary to meet the Utility's current operating and debt service needs; BE IT RESOLVED by the Common Council of the City of Oshkosh that the 9.2% water rate increase approved by the Public Service Commission of Wisconsin, dated March 24, 2011 (exhibit attached), is hereby accepted. BE IT FURTHER RESOLVED that the appropriate departments of the City of Oshkosh are authorized and directed to put said rates into effect after final approval to implement rates is given by the Public Service Commission of Wisconsin following a public hearing that will be held on the matter on May 2, 2011. City of Oshkosh Finance Department 215 Church Ave., PO Box 1130 Oshkosh, WI 54903 -1130 (920) 236 -5005 (920) 236 -5039 FAX OIHKOIH ON THE WATER MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Peggy Steeno, Finance Director DATE: April 12, 2011 RE: Establish Revised Water Rates BACKGROUND As discussed during the 2010 borrowing process, the 2011 Budget Workshops, and the 2011 borrowing kick -off, as well as included in the approved 2011 Budget, water rates need to be increased in 2011 to keep the Utility in a productive capacity, operating at a prudent level. As directed by Council on November 23, 2010, staff completed and filed a water rate increase application with the Public Service Commission of Wisconsin (PSC). The PSC regulates all water utilities in Wisconsin, including analyzing and approving all rate adjustments. ANALYSIS The completed application that staff filed with the PSC showed the need for an increase of approximately 17 %, however, due to the current fund balance in the Utility Fund, staff requested that the PSC consider the budgeted 10% increase rather than the 17% calculated by the rate case. As you will see in the attached cost of service analysis, which is PSC's final recommendation on the rate adjustment, the PSC concurred with the request and has called for an increase in revenues of 9.2 %. This is right in line with the 10% increase projected and included in the 2011 Budget. By way of details, the increase is needed due to the following reasons: • Large Capital Improvement Programs in 2011 and beyond with regard to water infrastructure projects, • Funds needed to cover debt payments (i.e. Debt Coverage), • Decrease in usage from 2005 to the present, and • Increase in expenses from 2008 to the present. Each year, during the budget process, staff will complete analysis to determine what the needs of each of the Utilities will be for the upcoming year so that the Council can discuss this during the budget process, well in advance of a request to adjust rates. FISCAL IMPACT In 2011, Utility revenues will increase by approximately $700,000 due to this increase. The effect of the increase on the average residential user is approximately $31.45 on an annual basis. However, due to the May of 2011 implementation date, the increase in 2011 will be approximately $20.30. RECOMMENDATION Staff recommends that Council pass this resolution. Respectfully Submitted, Peggy Steeno Finance Director Approved: Mark Rohloff City Manager CURRENT & PROPOSED RATES General Water Service - Metered Meter Quarterly Customer Charge Size Current Proposed 5/8" $16.00 $18.00 3/4" $16.00 $18.00 1" $25.00 $28.50 1 -1/4" $33.00 $37.50 1 -1/2" $39.00 $44.10 2" $60.00 $69.00 3" $99.00 $117.00 4" $147.00 $174.00 6" $261.00 $306.00 8" $396.00 $450.00 10" $576.00 $651.00 12" $753.00 $852.00 10" Current Proposed Usage In Charge Charge CCF's $ /CCF $ /CCF First 30 $3.37 $3.71 Next 70 $3.23 $3.55 Next 1,900 $3.06 $3.27 Over 2,000 $2.87 $3.01 Public Fire Protection Private Fire Protection Size of Current Proposed Annual Charge To Municipality $650,000 $650,000 Meter Quarterly Customer Charge Size Current Proposed 5/8" $5.50 $6.60 3/4" $5.50 $6.60 1 $13.80 $16.35 1 -1/4" $20.40 $24.60 1 -1/2" $27.50 $33.00 2 $44.00 $52.50 3" $83.00 $99.00 4" $138.00 $163.50 6" $275.00 $327.00 8" $440.00 $522.00 10" $660.00 $780.00 12" $880.00 $1,035.00 Private Fire Protection Size of Quarterly Customer Charge Connection Current Proposed up to 2" $15.00 $15.00 3" $27.00 $30.00 4" $48.00 $48.00 6" $93.00 $96.00 8" $150.00 $156.00 10 $225.00 $231.00 12" $330.00 $330.00 14" $438.00 $438.00 16" X $465.00 Public Service Commission of Wisconsin Eric Callisto, Commissioner Mark Meyer, Commissioner Lauren Azar, Commissioner 610 North Whitney Way P.O. Box 7854 Madison, WI 53707 -7854 March 24, 2011 — VIA EMAIL Mr. Jeremy Maurer City of Oshkosh Water Utility 215 Church Avenue Oshkosh, Wisconsin 54901 Email: Lmaurergci.oshkosh.wi.us Re: Application of the City of Oshkosh Water Utility, Winnebago County, Wisconsin, for Authority to Increase Water Rates Dear Mr. Maurer: 4480 -WR -108 The Public Service Commission (Commission) staff has analyzed your application for a water rate increase. The application was received on January 10, 2011. A proposed staff exhibit has been prepared, a copy of which is enclosed. The exhibit contains schedules showing staffs proposed revenue requirement, cost -of- service analysis, and proposed rates. We intend to submit our proposal at the public hearing, which will be scheduled at a later date. At least one person must represent your utility at the hearing. We have used a 4.50 percent rate of return on the estimated water utility net investment rate base for the test year 2011, as recommended by our staff auditor. The proposed rates would increase annual revenues from water public utility service by an estimated $1,049,986, of which $908,847 would be from general service customers and $141,139 would be from the public fire protection charge. The increase in water utility revenues is the result of a 19 percent increase in gross plant investment and a 17 percent increase in operating expenses since your last water rate case in 2007. We have selected some customer examples for comparison of proposed and present rates, as shown in Schedule 11 of the enclosed staff exhibit. The proposed general service rates provide a greater percentage increase to small - volume users than other customers, which is consistent with staff's proposed cost of service study. Small- volume users will experience the highest percentage increase in rates because their bills are comprised proportionately more of service charges than volume charges when compared to large users. The service charges are designed to recover customer costs including meter reading expenses, billing and collecting expenses, and the operating expenses incurred for depreciation, tax equivalent, and return on the utility's investment associated with meters and service laterals. The utility incurs these costs regardless of the volume of water used by its customers, so it is more appropriate to recover such costs through fixed service charges than through volume charges. Telephone: (608) 266 -5481 Fax: (608) 266 -3957 Home Page: http: / /pse.wi.gov TTY/TextNet: In Wisconsin (800) 251 -8345, Elsewhere (608) 267 -1479 E -mail: PSCRecordsMail @wisconsin.gov Mr. Jeremy Maurer Docket 4480 -WR -108 Page 2 We are proposing a number of changes in Schedule 10 that are intended to simplify and update the tariff provisions. We are combining Schedule Fd -1, Public Fire Protection (direct charges) with Schedule F -1, Public Fire Protection. We have also revised Schedule Mpa -1, Public Service, Schedule Ug -1, General Water Service - Unmetered, and Schedule BW -1, Bulk Water to reference the volumetric charges in Schedule Mg -1 instead of establishing separate rates in these schedules. This change ensures that these rates will reflect future changes to Schedule Mg -1 through a simplified rate case. We propose eliminating Schedule Mz -1, Building and Construction Water Service, because the revised Schedule Ug -1 now applies to these customers. Finally, we propose replacing Schedule Mgt -1, Seasonal, Emergency, or Temporary Service, with a new Schedule Sg -1, Seasonal Service. The depreciation expense included in the revenue requirement was computed using the water depreciation rates in Schedule 4 of staff auditor Kathy Butzlaff s exhibit dated March 15, 2011. When the Final Decision is issued in this docket, these rates will be certified for use by your utility effective January 1, 2011. We are recommending to the Commission that your water utility's filed rules and regulations be updated in order to reflect the latest requirements in Wis. Admin. Code ch. PSC 185. A copy of these rules is enclosed. The proposed staff exhibit is intended to give the Commission the staffs viewpoint. The utility has the prerogative to present its own case. It may be advantageous to the utility to submit additional information which is believed to be pertinent to substantiate its position. Please note that the Commission will base its decision on the merits of the case. If you have any questions, please call me at (608) 267 -9813 or email Jeffrey.Ripp a,Wisconsin.Gov Sincerely, Ij Jeffrey Ripp Case Coordinator JJR:DL: \utilities\ 4480\ dockets \4480 -wr -108 \4480- wr- 1081etter. doc Enclosures cc: Peggy Steeno, psteeno@ci.oshkosh.wi.us Docket No. 4480 -WR -108 Witness: Jeffrey Ripp Exhibit No. City of Oshkosh Water Utility Schedule System Demand Ratios 1 Allocation of Utility Financed Plant to Service Cost Functions 2 Allocation of Total Plant to Service Cost Functions 2A Allocation of Depreciation Expense to Service Cost Functions 3 Allocation of Operation and Maintenance Expenses to Service Cost Functions 4 Summary of Allocation of Operating Costs to Service Cost Functions 5 Customer Class Demand Ratios 6 Customer Class Allocation Factors 7 Allocation of Service Cost Functions to Customer Classes 8 Comparison of Revenue at Present Rates, Cost of Service and Proposed Rates 9 Proposed Water Rates and Rules 10 Customer Water Bill Comparison at Present and Proposed Rates 11 Division of Water, Compliance and Consumer Affairs Public Service Commission of Wisconsin March 2011 Docket 4480 -WR -108 Schedule 1 CITY OF OSHKOSH WATER UTILITY SYSTEM DEMAND RATIOS MAXIMUM DAY SYSTEM DEMAND TOTAL ANNUAL PUMPAGE 2,310,965,000 Gallons AVERAGE DAILY PUMPAGE 6,331,411 Gallons MAXIMUM DAY PUMPAGE 8,863,975 Gallons FIRE FLOW: GAL/MIN 8,000 DURATION (HOURS) 8 TOTAL FLOW 3,840,000 Gallons AVERAGE DAY PLUS FIRE FLOW 10,171,411 Gallons 6,331,411 RATIO: BASE = 62.25% 10,171,411 MAX DAY = 100 -BASE 37.75% MAXIMUM HOUR SYSTEM DEMAND AVERAGE HOUR ON MAX DAY 369,332 Gallons MAXIMUM HOUR PUMPAGE 553,998 Gallons AVERAGE HOUR PLUS ONE HOUR FIRE FLOW 743,809 Gallons 6,331,411 Use RATIO: BASE = 35.47% 35.47% 17,851,411 Use MAX HOUR = 100 -BASE 64.53% 64.53% U d N N 7 O V u a O� d d V A G O O O � W O L O O O F W L L O w D m U � o"a ° 0 0 0 ao � o 0 0 0 0 k L A o00 e e a e �y � k °0 000 w CU asn A Gi j O O O 00 O M O^ O O N N O 0, 00 0 0 .a a o 0 0 o � '- F o a W O O o 0 0 0 m 0 0 O M N O N O O e B v, oo rn lo H N N 00 00 7 .--� 00 10 lz C �° Q% O O O O O O 10 O 0 0 b] 7 O N ° N . °% ° 60 ^ N H N O b M 00 ��+1 O 00 7 F N > o > OF A F a o W � eu ° o Y .`° E° oo to e a' 3 is W V h 0 9 N C> R- R 9 ` LL 7 V F ❑ o a u3�o a�owoo a��o z O O O--� ^^ N N N N N N M M M M M U M mm M M M M M M M M M M M M M M M M M M U d N N 7 O V u a O� d d V A h y O U a W O F i 7 U C O � O a` iO ut 0 0 m M Vi r v ol O O ^ N O M 10 N V n N o0 O N h N M h M Vi a0 et N ~~ r 10 N V M N 0 � N r O O M O O M -- N 7 O a O` M N 00 O V) 7 M 0 V> C r N 10 Ol O\ O N N r ^ = 7 M ll " C C Cx 00 O 00 M M 10 N C OC lc M O" 00 Or � O N �O N �O Vl M oo V N O N N D` P ^ Vt N r 7 N ^ V 7 M VI r 0 O N '+ N 00 N Vt r V V1 DD o0 10 r v1 Ow V1 O Oi M 10 Vt o0 r N O V o 00 N l r n 00 o0 0 N r N M N ^ N M N O O O O O O O O O O o 0 o O c D, O m O O r OO M ^^ N= T M c N �-+ 00 �-. 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O a a � � F A ALLOCATION OF SERVICE COST FUNCTIONS TO CUSTOMER CLASSES Docket 4480 -WR -108 Schedule 8 Public Public Fire TOTAL Residential Commercial Industrial Authority Protection BASE COSTS: SYSTEM 5,277,449 2,451,136 1,389,402 566,326 817,810 52,774 DISTRIBUTION 798,314 370,780 210,173 85,668 123,709 7,983 EXTRA- CAPACITY COSTS: MAXIMUM -DAY SYSTEM 2,491,241 1,011,250 382,145 129,803 224,932 743,111 MAXIMUM -DAY DISTIBUTION 256,546 104,138 39,353 13,367 23,163 76,525 MAXIMUM -HOUR SYSTEM 373,148 138,568 51,055 16,008 30,051 137,465 MAXIMUM -HOUR DISTRIBUTION 682,893 253,592 93,435 29,296 54,996 251,574 MAXIMUM -HOUR STORAGE 272,553 101,213 37,291 11,692 21,950 100,407 CUSTOMER COSTS: BILLING 363,986 316,456 39,812 2,196 5,522 EQUIVALENT METERS 831,329 533,522 194,630 24,695 78,482 EQUIVALENT SERVICES 857,546 690,350 124,717 11,180 31,299 FIRE PROTECTION 311,616 311,616 TOTAL COST 12,516,621 5,971,006 2,562,014 890,231 1,411,914 1,681,455 LESS OTHER REVENUE 598,392 231,452 99,311 34,508 54,730 178,392 COST OF SERVICE 11,918,229 5,739,553 2,462,704 855,724 1,357,185 1,503,063 REVENUE AT PRESENT RATES 10,868,243 5,127,663 2,322,070 815,781 1,240,805 1,361,924 DIFFERENCE 1,049,986 611,890 140,634 39,943 116,380 141,139 PERCENT INCREASE/DECREASE 10% 12% 6% 5% 9% 10% Docket 4480 -WR -108 Schedule 8 Docket 4480 -WR -108 CITY OF OSHKOSH WATER UTILITY Comparison of Revenue at Present Rates, Cost of Service and Proposed Rates Schedule 9 Cost of Service Proposed Rates Increase Increase Percent of Revenue at Revenue over Present over Present Cost of Customer Class Present Rates Required Rates Revenue Rates Service Residential $5,127,663 $5,739,553 12% $5,676,173 11% 99% Commercial $2,322,070 $2,462,704 6% $2,534,508 9% 103% Industrial $815,781 $855,724 5% $871,092 7% 102% Public Authority $1,240,805 $1,357,185 9% $1,335,422 8% 98% Public Fire Protection (Total) $1,361,924 $1,503,063 10% $1,502,272 10% 100% Total $10,868,243 $11,918,229 10% $11,919,469 10% 100% Docket 4480 -WR -108 CITY OF OSHKOSH WATER UTILITY Proposed Water Rates and Rules Public Fire Protection Service --- F -1 Schedule 10 Page 1 of 7 Public fire protection service includes the use of hydrants for fire protection service only and such quantities of water as may be demanded for the purpose of extinguishing fires within the service area. This service shall also include water used for testing equipment and training personnel. For all other purposes, the metered or other rates set forth, or as may be filed with the Public Service Commission, shall apply. The charges for public fire protection service shall be as follows: Municipal Charge: The annual charge for public fire protection service to the City of Oshkosh shall be $650,000. The utility may bill for this amount in equal quarterly installments. Direct Charges: Under Wis. Stat. § 196.03(3)(b), the City of Oshkosh has chosen to have the utility bill the retail general service customers for public fire protection service. Quarterly Public Fire Protection Service Charges: % -inch meter - $ 6.60 3 -inch meter - $ 99.00 3 /4 -inch meter - $ 6.60 4 -inch meter - $ 163.50 1 -inch meter - $ 16.35 6 -inch meter - $ 327.00 1'/4 -inch meter - $ 24.60 8 -inch meter - $ 522.00 P/2 -inch meter - $ 33.00 10 -inch meter - $ 780.00 2 -inch meter - $ 52.50 12 -inch meter - $ 1,035.00 Customers who are provided service under Schedules Mg -1, Ug -1, or Sg -1 shall be subject to the charges in this schedule according to the size of their primary meter. Billing Same as Schedule Mg -1. Public Fire Protection Service --- Fd -1 Delete. Docket 4480 -WR -108 Schedule 10 Page 2 of 7 Private Fire Protection Service - Unmetered --- Upf -1 This service shall consist of permanent or continuous unmetered connections to the main for the purpose of supplying water to private fire protection systems such as automatic sprinkler systems, standpipes, and private hydrants. This service shall also include reasonable quantities of water used for testing check valves and other backflow prevention devices. Quarterly Private Fire Protection Service Demand Charges: 2 -inch or smaller connection $ 15.00 3 -inch connection $ 30.00 4 -inch connection $ 48.00 6 -inch connection $ 96.00 8 -inch connection $ 156.00 10 -inch connection $ 231.00 12 -inch connection $ 330.00 14 -inch connection $ 438.00 16 -inch connection $ 465.00 Billing Same as Schedule Mg -1. General Service - Metered --- Mg-1 Quarterly Service Charges (All Customer Classes): % -inch meter - $ 3 /4-inch meter - $ 1 -inch meter - $ 1 -inch meter - $ 1' /z -inch meter - $ 2 -inch meter - $ Plus Volume Charges: 18.00 3 -inch meter - $ 117.00 18.00 4 -inch meter - $ 174.00 28.50 6 -inch meter - $ 306.00 37.50 8 -inch meter - $ 450.00 44.10 10 -inch meter - $ 651.00 69.00 12 -inch meter - $ 852.00 First 3,000 cubic feet used per quarter - $3.71 per 100 cubic feet Next 7,000 cubic feet used per quarter - $3.55 per 100 cubic feet Next 190,000 cubic feet used per quarter - $3.27 per 100 cubic feet Over 200,000 cubic feet used per quarter - $3.01 per 100 cubic feet Billing Bills for water service are rendered quarterly and become due and payable upon issuance following the period for which service is rendered. A late payment charge of 1 percent per month will be added to bills not paid within 20 days of issuance. This late payment charge will be applied to the total unpaid balance for utility service, including unpaid late payment charges. This late payment charge is applicable to all customers. The utility customer may be Docket 4480 -WR -108 Schedule 10 Page 3 of 7 given a written notice that the bill is overdue no sooner than 20 days after the bill is issued. Unless payment or satisfactory arrangement for payment is made within the next 10 days, service may be disconnected pursuant to Wis. Admin. Code ch. PSC 185. Combined Metering Volumetric readings may be combined for billing if the utility for its own convenience places more than one meter on a single water service lateral. Multiple meters placed for the purpose of identifying water not discharged into the sanitary sewer are not considered for utility convenience and may not be combined for billing. This requirement does not preclude the utility from combining readings where metering configurations support such an approach. Volumetric readings from individually metered separate service laterals may not be combined for billing purposes. Other Charges --- OC -1 Non - Sufficient Funds Charge The utility shall assess a $25.00 charge when a payment rendered for utility service is returned for non - sufficient funds. This charge may not be in addition to, but may be inclusive of, other non - sufficient funds charges when the payment was for multiple services. Special Billing Charge The utility shall assess a $10.00 charge to cover administrative expenses shall apply whenever a customer requests special billing outside of the normal utility billing. Special Meter Reading Charge The utility shall assess a $15.00 charge whenever a customer requests a special meter reading by utility personnel on a date other than the regularly scheduled meter reading. This charge may not be assessed if the customer provides the meter reading. Real Estate Closing Account Charge The utility shall assess a $10.00 charge whenever a customer or the customer's agent requests written documentation from the utility of the customer's account status in connection with a real estate closing. Billing Same as Schedule Mg -1. Public Service --- Mpa -1 Metered Service: Water used by the City of Oshkosh on an intermittent basis for flushing sewers, street washing, flooding skating rinks, drinking fountains, etc., shall be metered and billed according to the rates set forth in Schedule Mg -1. Unmetered Service: Where it is impossible to meter the service, the utility shall estimate the volume of water used based on the pressure, size of opening, and the period of time the water is used. The estimated quantity shall be billed at the volumetric rates set forth in Schedule Mg -1, excluding any service charges. Docket 4480 -WR -108 Schedule 10 Page 4 of 7 Billing Same as Schedule Mg -1. General Water Service - Unmetered --- Ug-1 Service may be supplied temporarily on an unmetered basis where the utility cannot immediately install a water meter, including water used for construction. Unmetered service shall be billed the amount that would be charged to a metered residential customer using 1,400 cubic feet of water per quarter under Schedule Mg -1, including the service charge for a % -inch meter. If the utility determines that actual usage exceeds 1,400 cubic feet of water per quarter, an additional charge for the estimated excess usage shall be made according to the rates under Schedule Mg -1. This schedule applies only to customers with a 1 -inch or smaller service connection. For customers with a larger service connection, the utility shall install a temporary meter and charges shall be based on the rates set forth under Schedule Mg -1. Billing Same as Schedule Mg -1. Seasonal, Emergency, or Temporary Service --- Mgt-1 Delete. Seasonal Service --- Sg-1 A customer who voluntarily requests temporary disconnection of water service and who resumes service at the same location within 12 months may be classified as a seasonal customer, unless service is provided to another customer at that location in the intervening period. The utility shall bill a seasonal customer the applicable service charges under Schedule Mg -1, prorated for the period of voluntary disconnection, if necessary. Seasonal service shall include customers taking service under Schedule Mg -1 or Schedule Ug -1. Upon reconnection, the utility shall apply a charge under Schedule R -1 and require payment of any unpaid charges under this schedule. Billing Same as Schedule Mg -1, unless the utility and customer agree to an alternative payment schedule for the period of voluntary disconnection, such as a one -time annual payment. Building and Construction Water Service --- Mz -1 Delete. Docket 4480 -WR -108 Bulk Water --- BW -1 Schedule 10 Page 5 of 7 All bulk water supplied from the water system through hydrants or other connections shall be metered or estimated by the utility. Utility personnel or a party approved by the utility shall supervise the delivery of water. Bulk water sales are: A. Water supplied by tank trucks or from hydrants for the purpose of extinguishing fires outside the utility's service area; B. Water supplied by tank trucks or from hydrants for purposes other than extinguishing fires, such as water used for irrigation or filling swimming pools; or, C. Water supplied from hydrants or other temporary connections for general service type applications, except that Schedule Ug -1 applies for water supplied for construction purposes. A service charge of $40.00 and a charge for the volume of water used shall be billed to the party using the water. The volumetric charge shall be calculated using the highest volumetric rate for residential customers under Schedule Mg -1. In addition, for meters that are assigned to bulk water customers for more than 7 days, the applicable service charge in Schedule Mg -1 will apply after the first 7 days. The water utility may require a reasonable deposit for the temporary use of its equipment under this and other rate schedules. The deposit(s) collected shall be refunded upon return of the utility's equipment. Damaged or lost equipment shall be repaired or replaced at the customer's expense. Billing Same as Schedule Mg -1 Reconnection Charges --- R -1 The utility shall assess a charge to reconnect a customer, which includes reinstalling a meter and turning on the valve at the curb stop, if necessary. A utility may not assess a charge for disconnecting a customer. During normal business hours: $ 55.00 After normal business hours: $ 70.00 Billing: Same as Schedule Mg -1. Docket 4480 -WR -108 Water Lateral Installation Charge --- Cz -1 Schedule 10 Page 6 of 7 The utility shall charge a customer for the actual cost of installing a water service lateral from the main through curb stop and box if these costs are not contributed as part of a subdivision development or otherwise recovered under Wis. Stats. Chapter 66. Billing Same as Schedule Mg -1. Rules and Regulations --- X -1 Delete Schedule X -1. Incorporate the operating rules for municipal water utilities as provided by the Public Service Commission. Water Main Extension Rule --- X -2 Water mains will be extended for new customers on the following basis: A. Where the cost of the extension is to immediately be collected through assessment by the municipality against the abutting property, the procedure set forth under Wis. Stat. § 66.0703 will apply, and no additional customer contribution to the utility will be required. B. Where the municipality is unwilling or unable to make a special assessment, the extension will be made on a customer - financed basis as follows: 1. The applicant(s) will advance as a contribution in aid of construction the total amount equivalent to that which would have been assessed for all property under A. 2. Part of the contribution required in B.1. will be refundable. When additional customers are connected to the extended main within 10 years of the date of completion, contributions in aid of construction will be collected equal to the amount which would have been assessed under A. for the abutting property being served. This amount will be refunded to the original contributor(s). In no case will the contributions received from additional customers exceed the proportionate amount which would have been required under A., nor will it exceed the total assessable cost of the original extension. C. When a customer connects to a transmission main or connecting loop installed at utility expense within 10 years of the date of completion, there will be a contribution required of an amount equivalent to that which would have been assessed under A. Docket 4480 -WR -108 Schedule 10 Page 7 of 7 Water Main Installations in Platted Subdivisions --- X -3 Application for installation of water mains in regularly platted real estate development subdivisions shall be filed with the utility. If the developer, or a contractor employed by the developer, is to install the water mains (with the approval of the utility), the developer shall be responsible for the total cost of construction. If the utility or its contractor is to install the water mains, the developer shall be required to advance to the utility, prior to the beginning of the construction, the total estimated cost of the extension. If the final costs exceed estimated costs, an additional billing will be made for the balance of the cost due. This balance is to be paid within 30 days. If final costs are less than estimated, a refund of the overpayment will be made by the water utility. JJR:w:\exhibit \4480- wr- 108.doc Docket 4480 -WR -108 CITY OF OSHKOSH WATER UTILITY Customer Water Bill Comparison at Present and Proposed Rates Schedule 11 O uarterl y Quarterly Including Public Fire Protection Meter Size Volume (100 Bills at Old Bills at New Percent Bills at Old Bills at New Percent Customer Type (Inches) Cu Ft) Rates Rates Change Rates Rates Change Small Residential 518 5 $ 32.85 $ 36.55 11% $ 38.35 S 43.15 13% Small Residential 5/8 10 $ 49.70 $ 55.10 11% $ 55.20 $ 61.70 12% Average Residential 5/8 14 $ 63.18 $ 69.94 11% $ 68.68 $ 76.54 11% Large Residential 314 100 $ 343.20 $ 377.80 10% $ 348.70 $ 384.40 10% Large Residential 3/4 500 S 1,567.20 $ 1,685.80 8% $ 1,572.70 $ 1,692.40 8% Large Residential 3/4 1,500 $ 4,627.20 $ 4,955.80 7% $ 4,632.70 $ 4,962.40 7% Commercial 314 25 S 100.25 $ 110.75 10% S 105.75 $ 117.35 11% Commercial 2 150 S 540.20 $ 592.30 10% $ 584.20 $ 644.80 10% Commercial 4 2,000 S 6,288.20 S 6,746.80 7% $ 6,426.20 $ 6,910.30 8% Commercial 6 6,500 $ 19,317.20 $ 20,423.80 6% $ 19,592.20 $ 20,750.80 6% Industrial 1 100 $ 352.20 $ 388.30 10% $ 366.00 $ 404.65 11% Industrial 2 500 $ 1,611.20 S 1,736.80 8% S 1,655.20 $ 1,789.30 8% Public Authority 2 1,000 $ 3,141.20 S 3,371.80 7% $ 3,185.20 S 3,424.30 8% Public Authority 3 3,000 S 9,110.20 S 9,699.80 6% $ 9,193.20 S 9,798.80 7% Public Authority 3 7,500 $ 22,025.20 S 23,244.80 6% S 22,108.20 S 23,343.80 6% Industrial 3 2,500 $ 7,675.20 $ 8,194.80 7% $ 7,758.20 $ 8,293.80 7% Industrial 3 11,000 $ 32,070.20 $ 33,779.80 5% $ 32,153.20 $ 33,878.80 5% Public Fire Protection (Municipal Charge) $ 650,000.00 $ 650,000.00 0% Public Fire Protection (Direct Charges) S 711,924.00 $ 852,272.00 20% Total Fire Protection Charges S 1,361,924.00 $ 1,502,272.00 10%