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<br />DRAFT REPORT <br /> <br />I. EXECUTIVE SUMMARY <br /> <br />A. Introduction <br />In 2004, the City of Paris ("City") entered into a treated water purchase contract with Campbell <br />Soup Company ("Campbell Soup"). Per the contract, a cost of service study is required prior to <br />May 31 st of each year to determine the rates to be charged to Campbell Soup for the next twelve- <br />month period. To comply with the contractual terms, the City has authorized R.W. Beck, Inc. to <br />perform the cost of service study. This report describes the study performed for the City and <br />makes recommendations with respect to rates to be charged to the City's water and wastewater <br />customers. The report consists of nine sections, including the Executive Summary section. <br /> <br />.. <br /> <br />Also attached are three appendices to supplement the findings of the report. <br /> <br />Following the Executive Summary, Sections II through VI develop the methodology, <br />assumptions, and the revenue requirement for the water utility portion of the City's Water and <br />Wastewater Utility. Sections VII and VIII develop the methodology, assumptions and the <br />revenue requirement for the wastewater utility portion of the City's Water and Wastewater <br />Utility. Finally, Section IX of the report develops the rate schedules for water and wastewater <br />services provided by the City. <br /> <br />The three appendices following the report consist of Appendix A, operating characteristics of the <br />system, Appendix B, contract customers, Appendix C, the determination of the retail water and <br />wastewater rates, and Appendix D, rate design alternatives. <br /> <br />B. Findings of Rate Study <br />a. The total revenue requirement for the Water Utility portion of the test year for the <br />retail rate determination is estimated to be $6,225,983 (Table C-l),lan"8.2% <br />'lincrease from'the City's last cost 9f s~!'Yi~e._s.~4y,_ d.ue priIP~ily .to,~jllcr~~?ejn>" <br />relectricitY'costS? <br />b. The total revenue requirement for the Wastewater Utility portion of the test year <br />is estimated to be $4,433,774 (Table C-l), 'R'j~O%increasefrom thtij,Citfs-:last <br />t::C9~LQf service..sttidy;'dtfe~priffi.anly:-to"anjn~r.~~~,il!:~1~~tri.9.ity .:GQsts. <br /> <br />City of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />May 2005 <br /> <br />1 <br />