Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

14. Projected decrease in IAC revenues due to the proposed adoption of a credit program with DDOE
15. Proposed increase in customer metering fees due to adoption of alternative methodology as recommended by 2009 cost of
service study
Additional details on revenue projections for each class of customers are described below.
Residential, Commercial & Multi-Family - FY 2010 projections reflect an increase of $15.1 million or 9.1 percent from FY 2009, due
primarily to the following reasons.
. ln FY 2009, DC WASA's collections on its retail receivables was very strong, with accounts receivable over g0 days declining
from $6.1 million on October 1 , 2008 to $4.9 million as of September 30, 2009. DC WASA will continue its aggressive collection
efforts and have conservatively assumed no additional increase in cash receipts due to improved collections performance in
2010.
. Board-approved retail rate increase of 9.0 percent effective October 1,2009.
' Board approved IAC rate change from $1 .24 to $2.20 per ERU per month
. Expansion of the customer assistance program, which reduces projected revenues by approximately $1.5 million.
Proposed FY 2011 receipt projections reflect an increase of $23.3 million, or 12.9 percent, due to the following reasons:
. Proposed retail water and sewer combined rate for FY 2011 is $6.89 per Ccf ($3.t0 water and $3.79 sewer); an increase of $0.77
per Ccf
. One percent decrease in consumption due to conservation
. Continued implementation of the customer assistance program, which reduces projected revenues by approximately $2.0 million.
. Proposed IAC increase from $2.20 to $3.45
. Proposed customer metering fee from $2.01 to $3.86
Rate Stabilization Fund Utilization - The ten-year plan and near-term revenue projections assume utilization of $28.0 million in FY
2010 and $2.6 million in FY 201 '1 of rate stabilization fund balances. Prior years' plans also assumed the use of these funds which is
necessary as DC WASA reaches its peak years of spending in the ClP. Utilization of RSF monies allows DC WASA to implement
future rate increases in a gradual and predictable manner while still meeting Board and indenture policies on cash reserves and debt
service coverage.
Federal- Revised FY 2010 federal revenues are projected to total $38.6 million, an increase of $5.3 million, or 15.9 percent over FY
2009. Under existing federal billing legislation, federal billings are prepared on an estimated basis eighteen months in advance of the
start of the fiscal year (e.9., the FY 2010 billing was prepared in April 2008), and are based on then-current consumption estimates
and projected rate increases as included in the then-current ten year plan. These estimates are then reconciled with actual
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