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<br /> <br />Water Rate Cost-of-Service Study <br />Section 6. Customer Bill Impacts <br /> <br /> <br />HF&H Consultants, LLC | July 8, 2025 | Page 47 of 53 <br />Section 6. Customer Bill Impacts <br />In the previous chapter, the Volume and Service Charge structures were compared for the <br />current and proposed rates. A further understanding of the differences between the two <br />structures can be gained by comparing bills based on both rate structures. <br />BILL COMPARISON <br />Single Family Residential Bills Under Proposed Rates (eff. 1/1/2026) <br />Customers pay the sum of the Service Charge corresponding to the capacity of their service <br />plus a Water Use Charge for water use during the billing period. <br />Figure 6-1 provides perspective on the impact of the proposed (dark green line) and current <br />rates (light green line). This graph plots bills across a range of water use. Customers can <br />expect an increase for a given level of water use when the proposed rate structure line is <br />above the current rate structure line. In this case, when usage meets or exceeds 25 HCF <br />customers will see a decrease to their bill. Meanwhile, customers using less than 25 HCF will <br />see up to a maximum of a 21.9% increase. Under the current structure, tiered rates generate <br />larger bills for customers that use more water. Under uniform rates, customers previously <br />using Tier 1 and Tier 2 levels of water, paid $6.90 per HCF and $7.89 per HCF, respectively. <br />With the change to a uniform Water Use Charge of $9.18 per HCF, these customers will see <br />increases of $2.28 per HCF for the first 7 units of water and $1.29 per HCF for 8-14 units of <br />water. <br />Figure 6-1. Single Family Residential Bill Comparison <br /> <br />Source: City billing data for FY 2022-23 and FY 2023-24. <br />Since 64% of residential bills report water use equal to or less than 14 HCF, then the majority <br />of bi-monthly bills will increase by no more than $38.25. Further, approximately 14% of bills <br />are 24 HCF or more and with the current rate structure will see a decrease compared to <br />previous bills under the new rate structure. <br />ATTY/RESO.0109/CC RESO WATER RATES - EXHIBIT A <br />REV: 11-05-25 MI