ITEM 24 ATTACHMENT 2 - Laserfiche WebLink

City of Pleasanton 2025 Water Rate Study Water Resources Economics 10 Based on discussion with City staff, City Council, and PWAG, the proposed rate schedule also assumes a full pass-through of Zone 7 fixed and variable costs on the Zone 7 fixed charges and variable charges, respectively. Currently, a portion of Zone 7 fixed costs are recovered through the Zone 7 fixed charges, and the remaining portion is recovered through the Zone 7 variable charges. The proposed change to the rate structure ensures that the City recovers sufficient and reliable revenue to pay for Zone 7 fixed costs and will mitigate the financial risks associated with reductions in water demand as it pertains to Zone 7 water supply costs. PROPOSED FOUR-YEAR POTABLE AND RECYCLED WATER RATE SCHEDULE The proposed four-year potable and recycled water rate schedules in this section are based on the proposed rate structure and methodology changes, the updated cost-of-service analysis, and the proposed revenue adjustments in the four-year period. The rate schedule shows the proposed potable and recycled water rates to be implemented in January 2026 through January 2029. Note that Zone 7 potable water supply costs will be billed to customers as pass-through charges, shown separately from City charges in Table 1-7 and Table 1-8. Zone 7 rates for FY 2027, FY 2028, and FY 2029 include assumptions for Zone 7 water purchase costs, however customer charges will be calculated based on actual Zone 7 water purchase costs each year. The proposed rates shown for these years may differ depending on changes to Zone 7 rates; based on the pass-through provision of Zone 7 water supply costs, any additional Zone 7 costs will not require an additional Proposition 218 noticing process to be passed through to the City’s customers. Table 1-6, Table 1-7, Table 1-8, Table 1-9, and Table 1-10 show the current and proposed City bi- monthly fixed charges for potable water customers, current and proposed Zone 7 bi-monthly fixed charges for potable water customers, current and proposed City and Zone 7 variable charges for potable water customers, current and proposed bi-monthly fixed charges for recycled water customers, as well as current and proposed variable charges for recycled water customers, respectively. Table 1-6: Current and Proposed City Bi-Monthly Fixed Charges (Potable) Line City Bi-Monthly Fixed Charges (Potable) As of 1/1/2025 Effective 1/1/2026 Effective 1/1/2027 Effective 1/1/2028 Effective 1/1/2029 1 5/8" $5.53 $11.90 $18.33 $21.27 $24.51 2 3/4" $6.59 $14.46 $23.60 $27.68 $32.21 3 1" $9.25 $19.56 $34.10 $40.49 $47.57 4 1 1/2" $16.14 $32.32 $60.39 $72.53 $86.02 5 2" $20.39 $47.64 $91.93 $110.99 $132.16 6 3" $51.16 $96.12 $191.79 $232.73 $278.22 7 4" $87.23 $167.58 $338.96 $412.14 $493.49 8 6" $151.96 $338.56 $691.10 $841.45 $1,008.58 9 8" $374.78 $721.36 $1,479.53 $1,802.63 $2,161.82 10 10" $586.99 $1,078.63 $2,215.36 $2,699.69 $3,238.13