Winchester Municipal Utilities

2009 Rate Plan

April 9, 2009

Scope of Services

• Cost of Service Study– Water– Wastewater– Solid Waste– Wholesale

• Industrial Pretreatment Surcharges

• System Development Charges

Goals

• Address Capital Requirements

• Compress Rate Blocks

• Phase Implementation

• Customer Sensitive

Deliverables

• Cost of Service Reports

• Rate Model

• PSC Representation

Financial Forecast Basis: Capital

• Water System Improvements $55,000,000• Lower Howards Creek

Sanitary Sewer Improvements $36,000,000• Total $91,000,000

Financing Cost Assumptions

• Water 4.5% - 20 yrs

• Wastewater 2.2% - 20 yrs

Financial Forecast Basis

• 5 year projection of Revenues and costs

• Revenue

• Capital

• Borrowing

• O&M

Rate Plan

• 4-Year Phased Increase

• Compressed Water Rate Blocks

Impact of Rate Plan – Water (City)

Proposed Rates

Bill

Current Rates 2009 2010 2011 2012

Minimum Bill(100 ft3)

(750 gallons)$3.46 $4.10 $4.83 $5.69 $6.75

Average Residential

(700 ft3)

(5,250 gallons)

$18.34 $20.66 $23.73 $26.09 $28.65

Impact of Rate Plan – Water (Outside City)

Proposed Rates

Bill

Current Rates 2009 2010 2011 2012

Minimum Bill(100 ft3)

(750 gallons)$4.49 $5.32 $6.27 $7.38 $8.76

Average Residential

(700 ft3)

(5,250 gallons)

$24.03 $27.12 $31.14 $34.23 $38.06

Impact of Rate Plan – Wastewater (City)

Proposed Rates

Bill

Current Rates 2009 2010 2011 2012

Minimum Bill(100 ft3)

(750 gallons)$3.61 $4.35 $5.22 $5.86 $6.55

Average Residential

(700 ft3)

(5,250 gallons)

$25.26 $30.44 $36.52 $41.05 $45.88

Impact of Rate Plan – Wastewater (Outside City)

Proposed Rates

Bill

Current Rates 2009 2010 2011 2012

Minimum Bill(100 ft3)

(750 gallons)$4.78 $5.76 $6.91 $7.77 $8.68

Average Residential

(700 ft3)

(5,250 gallons)

$33.46 $40.32 $48.39 $54.38 $60.78

Impact of Rate Plan – Solid Waste

Proposed Rates

Bill

Current Rates 2009 2010 2011 2012

Average Residential $15.42 $18.57 $21.72 $24.85 $25.37

Combined Impact of Rate Plan (City)

Water, Wastewater, and Solid WasteProposed Rates

Bill

Current Rates 2009 2010 2011 2012

Minimum Bill(100 ft3)

(750 gallons)$22.49 $27.02 $31.77 $36.40 $38.67

Average Residential

(700 ft3)

(5,250 gallons)

$59.02 $69.67 $81.97 $91.99 $99.90

Combined Impact of Rate Plan (Outside City)

Water and Wastewater

Proposed Rates

Bill

Current Rates 2009 2010 2011 2012

Minimum Bill(100 ft3)

(750 gallons)$9.27 $11.0

8$13.18 $15.15 $17.44

Average Residential

(700 ft3)

(5,250 gallons)

$57.49 $67.44

$79.53 $88.62 $98.83

Results

• Rate Model

• System Development Charge

• Pretreatment Charges

Water System Development Charges

• Based on AWWA M-1 Manual methodology

• Source of Supply

• Source Water Transmission

• Treatment Facilities

• Pumping

• Transmission Mains

• Does not include Contributed Capital

Waste Water System Development Charges

• Based on AWWA M-1 Manual methodology

• Treatment Facilities

System Development Charge 5/8” Meter

•Water - $ 963

•Wastewater - $ 5,345

Industrial Pretreatment Charges

BOD TSS NH3

Existing $0.11/lb $0.13/lb $0.41/lb

Proposed $0.18/lb $0.18/lb $0.25/lb

Summary

• Cost of Service Rates

• Phased Approach

• Wholesale Rate / PSC

• Decision on SDC