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City of Pleasanton <br />2025 Water Rate Study <br /> <br />Water Resources Economics <br />58 <br />FINAL COST-OF-SERVICE ALLOCATION <br />Table 3-11 shows the final cost-of-service allocation based on the adjustments for General from the prior <br />report tables. <br /> <br />Table 3-11: Cost-of-Service Allocation by Cost Component (Final) <br />Line Cost Components Final Cost <br />Allocation <br />1 Meter $804,419 <br />2 Customer $887,445 <br />3 Water Supply $23,298,430 <br />4 Delivery $12,211,343 <br />5 Conservation $275,407 <br />6 Rev. Offset ($470,000) <br />7 General $0 <br />8 Total $37,007,044 <br /> <br /> <br />3.7 UNIT COST CALCULATION <br />UNITS OF SERVICE DEFINITIONS <br />The appropriate units of service are then established for each cost component based on cost causation, <br />which is shown in Table 3-12. Cost components to be recovered by the fixed charges are assigned units <br />of service based on the number of equivalent meters (Table 3-9) and customers (sum of meter counts <br />from Table 3-9). Cost components to be recovered by the quantity charges are assigned units based on <br />annual usage in ccf. <br /> <br />Table 3-12: Units of Service Definitions <br />Line Cost <br />Components Units of Service Definition Units of <br />Service Units <br />1 Meter Equivalent meters x 6 mo. 251,283 equivalent meters <br />2 Customer Meter counts x 6 mo. 150,203 accounts <br />3 Water Supply Annual usage in ccf 5,028,944 ccf <br />4 Delivery Annual usage in ccf 5,028,944 ccf <br />5 Conservation Annual usage in ccf 5,028,944 ccf <br />6 Rev. Offset Annual usage in ccf 5,028,944 ccf <br /> <br />UNIT COST BY COST COMPONENT <br />Table 3-13 shows the calculation of unit costs by each cost component. The final cost-of-service <br />allocation (Table 3-11) is divided by the units of service (Table 3-12) for each cost component to derive <br />the unit cost. These unit costs will determine the cost-of-service by customer class. <br /> <br />