17 ATTACHMENTS - Laserfiche WebLink

customers. In addition, the relationship between the recommended rates for Tier 1 and Tier 4 is a greater spread than it is with the current Tier 1 and Tier 3 rates, which also indicates that the recommended rates have a stronger price signal. To understand the impact of the recommend structure on customers, bills were plotted in Figure 4 4A for a range of bi- monthly consumption based on the current and recommend structures. The gap between the lines reflects both the 24% increase in rate revenue as well as the modification of the tiers. Figure 4 4B tabulates the differences in increments of 5 HCF. It isn't until bi- monthly consumption reaches 100 HCF (almost three times the average bill) that the percentage increase exceeds the average. Hence, for use below 100 HCF, SFR customers will experience a below- average rate increase. 4.3. COMMERCIAL AND IRRIGATION CONSUMPTION CHARGES The commercial and irrigation consumption charges are both uniform charges that represent the average cost per HCF for their respective classes. These amounts were derived in Figure 3 2, namely, $2.16 /HCF for commercial customers and $2.29 for irrigation customers. Figures 4 -5 and 4 -6 contain graphical and tabular comparisons of bills for sample commercial and irrigation customers, respectively, based on the current and recommended consumption charges. For commercial customers, the gaps between the lines represent the 32.5% increase in the uniform consumption charge. For irrigation customers, making a comparison is complicated because the current consumption charges are seasonal. In this case, the current consumption charge is the average cost for the irrigation customer class. March 18, 2010 Page 16 HF &H Consultants, LLC