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<br />DRAFT REPORT <br /> <br />Ill's average day was based on operational estimations provided by Tenaska III. It is anticipated <br />that Tenaska Ill's operations will increase during the summer months to satisfy electricity <br />demands; however, it is uncertain the level of peak day water demand that Tenaska III will <br />actually require. Therefore, Tenaska Ill's peak day demand was based on an average of its last <br />four fiscal years' peak day consumption. Table A-I in Appendix A shows the individual <br />customer classes' average and peak-day demands. The table also shows the capacity factors for <br />the classes as well as their relative percentages of base and extra capacity components of the <br />system used and useful in providing service to the five customer classes during the test year. <br /> <br />F. Treated Water System Allocation <br /> <br />Distribution Lines <br />Since the entire treated water transmission and distribution system is not allocable to all of the <br />five customer classes, system cost allocation percentages of the distribution system not common <br />to all are detennined separately. All lines larger than 24 inches in diameter are assumed to be <br />common to all treated water customers. <br /> <br />Hydrants <br />Fire protection service is not common to all five customer classes of the City's water system. <br />Therefore, operating and maintenance costs associated with fire service are distributed to the <br />residential and commercial customers of the City on the basis of their meter equivalency <br />demands. <br /> <br />Meters <br />Meter costs are distributed on the basis of equivalent 5/8" meters. Table A-4 in Appendix A <br />shows the number of equivalent meters in the City's water system. Costs are distributed on the <br />basis of the number of equivalent meters. <br />Warehouse <br /> <br />Warehouse costs are allocated to the customer classes based upon the functionalized component <br />allocation factors as shown on Table A-6 in Appendix A. <br />Billing and Collecting <br />Other billing and collecting costs are allocated to all five customer classes based upon the <br />number of test year bills sent to each customer class. <br /> <br />City of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />May 2005 <br /> <br />10 <br />