HomeMy WebLinkAbout10 Commercial water rates Agenda Item # 10
Public Utility Distri
WORKSHOP
To: Board of Directors
From: Ed Taylor
Date: October 01, 2008
Subject: Review of Commercial Water Rates
1. WHY THIS MATTER IS BEFORE THE BOARD
This Information was requested by the Board.
2. HISTORY
The District has water rates for the majority of the commercial users which have a
declining block rate structure.
Three of the large irrigation customers have a single tier rate structure as part of their
agreement with the District. These three customers have paid the District for a water
source (or to develop a future source) and delivery infrastructure.
3. NEW INFORMATION
Commercial usage in the summer equals 33% of the total peak monthly water
production (see attached table). Further, all of the larger commercial accounts use
sufficient water to migrate from the base tier to the lower cost tiers. The trend is that
the smaller commercial services have a smaller percentage that exceeds the base
rate allocation with the exception of the three large irrigators. All of the commercial
water customers are prime candidates for water conservation measures.
The future golf course source conversion will transfer 50% of commercial water use,
or 17% of total production, to non-potable sources.
Benefit of large irrigation users on separate supply.
1) Reduces maximum day demand on District system.
2) Reduces the Water Department electric bill.
3) Reduces the total amount of electricity needed to provide water to this irrigation
customers due to reduced pump head requirements.
4. FISCAL IMPACT
There is no fiscal impact related to this workshop item.
5. RECOMMENDATION
R ive t s report provide comments to staff.
Ed aylor Michael D. Holley
Water Utility Manager General Manager
COMMERIAL WATER USERS BY TYPE & USAGE
CUSTOMER CUSTOMER AUGUST MARCH ANNUAL MONTHLY
TYPE-ALL COUNT USAGE USAGE AVERAGE
COMMERCIAL 418 21,841,346 8,051,539 12,925,580
GOLF COURSE-NON-POTABLE 1 18,184,914 0 6,236,040
GOLF COURSE-POTABLE 5 49,093,241 734,933 15,813,815
GOVERNMENT 59 10,719,279 2,006,244 5,492,031
GOVERNMENT IRRIGATION 12 6,419,574 0 2,411,954
COMMERCIAL IRRIGATION 36 4,824,748 9,265 1,790,946
MULTI-FAMILY-RESIDENTIAL 130 7,245,139 3,871,390 5,134,612
Grand Total 661 118,328,242 14,673,3701 49,804,977
COMMERIAL IRRIGATION USERS BY TYPE & USAGE
CUSTOMER CUSTOMER AUGUST MARCH ANNUAL MONTHLY
TYPE-IRRIGATION COUNT USAGE USAGE AVERAGE
GOLF COURSE-NON-POTABLE 1 18,184,914 0 6,236,040
GOLF COURSE-POTABLE 5 49,093,241 734,933 15,813,815
GOVERNMENT IRRIGATION 12 6,419,574 0 2,411,954
COMMERCIAL IRRIGATION 36 4,824,7481 9,265 1790946
Grand Total 54 78,522,478 744,199 26:252:754
FUTURE GOLF COURSE IRRIGATION CONVERSION
CUSTOMER CUSTOMER AUGUST MARCH ANNUAL MONTHLY
TYPE-IRRIGATION NON-POTABLE COUNT USAGE USAGE AVERAGE
GOLF COURSE-NON-POTABLE 1 18,184,914 0 6,236,040
GOLF COURSE-NON-POTABLE 1 2 1 42,775,650 0 13,859,465
Grand Total 3 60,960,564 ol 20,095,505