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

RECENT & PROPOSED RATE & FEE CHANGES, cont.
COST OF SERVICE STUDY & CSO LTCP COST RECOVERY
ln FY 2009, WASA successfully completed the Cost of Service Study (COS). The study evaluated:
. Revenue sufficiency of existing and proposed rates of the Authority; and
. Alternate rate structures to ensure:
- Equity and fairness of rates
- Adequate and stable revenues
- Price signals
- Minimize rate shock
As a result of this study, several revisions to the rate structure will be proposed for implementation in FY 2011 and other
areas of opportunity will require additional analysis in FY 2010 before recommendation or implementation.
. Based on the FY 2009 Cost of Service (COS) study our consultants recommended a shift in the water and
wastewater volumetric rates due to higher capital costs in the water service area. ln FY 2011 DC WASA will
propose to re-sync the water and sewer volumetric rates from the current allocation oÍ 41159 percent to 45155
percent accordingly.
. In FY 2009 the Cost of Service (COS) study recommended several alternative rate structure conceptual options.
One option that DC WASA management will consider is to expand the meter fee concept to include cost recovery
for these customer service fixed cost components in FY 2011.
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