1 / 14

BMP 11

BMP 11. Overview of Proposed Revisions. BMP 11 Objectives. Increase Water Use Efficiency Put Emphasis on Volume-Charges Promote rates that are: Based on Cost of Service Equitable Stable Revenue Neutral Avoid “One-Size-Fits-All” Requirements. Major Changes.

deacon
Download Presentation

BMP 11

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BMP 11 Overview of Proposed Revisions

  2. BMP 11 Objectives • Increase Water Use Efficiency • Put Emphasis on Volume-Charges • Promote rates that are: • Based on Cost of Service • Equitable • Stable • Revenue Neutral • Avoid “One-Size-Fits-All” Requirements

  3. Major Changes • Quantifiable Performance Target • Defines a minimum percentage of water sales revenue from volumetric rates • Retail Services Only • Wholesale rates probably move to BMP 10 • Implementation Schedule • Phased Compliance Requirements * Wastewater requirements unchanged

  4. Performance Target • Option 1(Default): • Volume Revenue ≥ 70% of Sales Revenue • Option 2: • Volume Revenue ≥ • 3-Yr Average Target Determined Using CWWA Rate Model

  5. Connection Fees Option 1 Volume Charge Revenue Volume Charge Revenue Option 2 Volume Charge Revenue Grants/ Contributions Meter/Service Charge Revenue Taxes Special Charges Meter/Service Charge Revenue Meter/Service Charge Revenue Water Sales Revenue Water Sales Revenue Other Utility Revenue

  6. Vol. = 100% Vol. = 70% Vol. = 50%

  7. CWWA Rate Model • Alternative Target < 70% • Calculates uniform volume charge and meter service charge • Uses your financial and system data • Estimates system variable and fixed costs • Calculates sales revenues from volume and service charges Alt. Target = Volume Revenue Volume + Service Revenue

  8. Performance Target Examples

  9. Implementation Schedule • Fully Metered • Existing Signatories: July 1, 2007 • New Signatories: 1 year after MOU signed • Partially Metered • BMP 4 Schedule + 1 year

  10. Phased Target Subject To: Single Year Rate Increases ≤ 10%

  11. BMP 11 Rate Designs • Allowed • Uniform • Seasonal • Increasing Block • Budget • Prohibited • Decreasing Block • Flat Rate (no volume charge)

  12. Exemptions & ALAEA • MOU Section 4.5 Applies • Grounds for Exemption • Cost-Effectiveness • Legal constraint • Budget constraint • ALAEA • Same as for other BMPs • Option 2 is not ALAEA, it is implementation

  13. 5 Year Evaluation • Compliance • Implementation barriers, issues • Proposition 218 • Water savings • Revisions

  14. Questions

More Related