Laserfiche WebLink
<br />VIII. DETERMINATION OF TEST YEAR REVENUE REQUIREMENT <br /> <br />Table C-l in Appendix C shows the revenue requirement, as adjusted for the test year. As <br />shown in this exhibit, the total revenue requirement for the City's Wastewater Utility is <br />estimated to be $4,595,642. The wastewater utility revenue requirement is bllsedOn the City's <br />FY 2006/2007 budget. <br /> <br />A. Functionalization of Revenue Requirement <br />Unlike the water utility system, where separate consideraticm.ibf extra capacity comp8&t.::atsof <br />plants and facilities is crucial to equitable allocation~d cost distribution amongJ.histomer <br />classes, it is not necessary to account for extra capacitYin~~~allocllti?n and distribution of costs <br />among wastewater utility customers unless there is large reserv~capacity in the system. <br /> <br />The City's wastewater operation <br />following service cost functions: <br />a. Warehouse <br />b. Billing and GgllectiIlg <br />c. Sewer f\1airitenance (Wastewater <br />d. Wastewater Treatment <br />e. Lift Station <br /> <br /> <br />expenses canb.e functionalized into the <br /> <br />Warehollse <br />Since wB.$tewater warehouse operations serve both treatment and collection, warehouse costs are <br />functionali.i~(:l based upon composite allocation factors. <br />Billine and Collectine <br />These are costs as~oCiated with meter reading, billing, administration and other functions of the <br />wastewater utility that are independent of quantity and quality of the wastewater contribution by <br />a customer. <br /> <br />City of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />June 2007 <br /> <br />16 <br />