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Table 3: Water Demand Projections (ccf)
<br /> Water Sales Pro'ections(c FY 2019 FY 2020 FY 2021 FY 2022
<br /> City of Pleasanton 4,512,816 4,647,852 4,787,244 4,930,992
<br /> Dublin San Ramon Services District 4,395,204 4,525,884 4,660,920 4,800,312
<br /> California Water Service Company 2,783,484 2,866,248 2,953,368 3,040,488
<br /> City of Livermore 2,600,532 2,678,940 2,757,348 2,840,112
<br /> Lawrence Livermore Lab 130,680 130,680 130,680 130,680
<br /> L.A.R.P.D. 1,307 1,307 1,307 1,307
<br /> Veterans Hospital 52,272 52,272 52,272 52,272
<br /> Wente Brothers 13,939 13,939 13,939 13,939
<br /> State of California DWR 0 0 0 0
<br /> East Bay Regional Park District 7,405 7,405 7,405 7,405
<br /> Total Water Sales(ccf) 14,497,639 14,924,527 15,364,483 15,817,507
<br /> Current Water Rates
<br /> The Agency's current treated wholesale water rates include a fixed charge per customer based on a two-year rolling
<br /> average of water usage and a variable charge per ccf of water.The fixed charge recovers approximately 35 percent
<br /> of rate revenue and the variable charge recovers the remaining 65 percent. Table 4 shows the Agency's current rate
<br /> structure for CY 2018 and beyond. The current rates for CY 2018 are multiplied with the CPI for Rates factor in
<br /> Table 1 to determine the water rates used to project revenues under the current rate structure in future years.
<br /> Table 4: Current Water Rates with CPI Increase
<br /> Current Rates CY 2,018 CY 2019 CY 2020 CY 2021 CY 2022
<br /> Variable Charge($/ccf) $2.04 $2.10 $2.16 $2.22 $2.29
<br /> Annual Fixed Charge(all customers) $15,849,610 $16,325,100 $16,814,856 $17,319,300 $17,838,876
<br /> Reserve Policy
<br /> The Agency has a current reserve policy for Fund 100(Operating Fund)that includes minimum,target, and
<br /> maximum reserve levels.Fund 100 has four reserves: Operating,Drought Contingency,Emergency,and Rate
<br /> Stabilization Reserves.The Operating Reserve mitigates against cash flow risks and unanticipated O&M expenses.
<br /> The Drought Contingency Reserve prepares for potential droughts and the revenue shortfalls that come with such
<br /> conditions.The Emergency Reserve helps protect the Agency from asset failures,emergencies,and natural
<br /> disasters. The Rate Stabilization Reserve allows the Agency to stabilize rates during periods of increased expenses.
<br /> The current reserve policy in effect is as follows:
<br /> Operating Reserve
<br /> • Minimum: 60 days of O&M expenses
<br /> • Target: 90 days of O&M expenses
<br /> • Maximum: 120 days of O&M expenses
<br /> Drought Contingency Reserve
<br /> • Minimum: 5.0 percent of water sales revenue
<br /> • Target: 10.0 percent of water sales revenue
<br /> • Maximum:20.0 percent of water sales revenue
<br /> ZONE 7 WATER AGENCY TREATED WATER WHOLESALE RATE STUDY REPORT 4
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