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<br />I. EXECUTIVE SUMMARY <br /> <br />A. Introduction <br />The City of Paris ("City") currently has treated water purchase contracts with Campbell Soup <br />Company ("Campbell Soup"), Direct Energy, LP ("Direct Energy"), and Lamar County Water <br />Supply District ("LCWSD"). Per the contracts, a cost of service study is required prior to May <br />31st of each year to determine the rates to be charged to Campbell Soup, Direct EI1.ergy, and <br />LCWSD for the next twelve-month period. These rates were presentedt6 the contract customers <br />on May 30, 2007. To comply with the contractual terms, the City has (l.uthorized R,W. Beck, <br />Inc. to perform the cost of service study. This report describ~&thestudy performed foitheCity <br />and makes recommendations with respect to rates to be charged to the City's \Vater and <br />wastewater customers. The report consists of nine sectiol1s, inc1u.ding the Executive Summary <br />section. Also attached are three appendices to supplement the findings of the report. <br /> <br />Following the Executive Summary,S~ctionll. II through VI develop the methodology, <br /> <br />-.... ---..._.....,-.-,-'..........,. <br /> <br />Wastewater Utility. Sections VII and VIII<4eY~16]J the methodology, assumptions and the <br />revenue requirement forth~wallt~water utility portion of the City's Water and Wastewater <br />Utility. Finally, Sectiol1IX of the r~'port provides'fu.~;futicipated contract customer revenues and <br />the rate schedules fQiiet~il water.Wl.4\V~t~\Vaterservices provided by the City. <br /> <br />The thre~.~p.Pendice~tollowingtherep()rt consist of Appendix A, operating characteristics of the <br />systew,mAppendix B, contract cust9l!lers and, Appendix C, the determination of the retail water <br />and wastewater rates. <br /> <br />B. Findin2sof RattfStudy <br />a. Tht;.total revenue requirement for the Water Utility portion of the test year for the <br />retail rate determination is estimated to be $6,802,587 (Table C~ 1), an 11.7% <br />increase from the City's last cost of service study, with approximately two-thirds <br />(2/3) of the increase related to additional electricity and chemical costs. <br /> <br />City of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />June 2007 <br /> <br />1 <br /> <br />~ &, <br />