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<br />III. ANALYSIS OF TEST YEAR DATA <br /> <br />A. Water Utility System Data <br />The City maintains daily treated water production data at the treatment plant. Over the last eight <br />fiscal years, the City's peak to average day ratio has ranged from a high of 1.77.irfFY 2000 to a <br />low of 1.50 in FY 2004. For purposes of allocating the functional water c()stspf Base and Extra- <br />Capacity, a peak to average day ratio of 1.67, which represents the ay~mge systelll average day <br />to peak day ratio over the last eight years, was applied. <br /> <br />B. Allocation Operation and Maintenance Expenses to Functional Cost Components <br /> <br />", <br />In order to recognize that certain facilities of the CitY'sw~t~~ utili~~~stem are used in common <br />by two, three, four or all five of the customer classes idditj.f:i,eo in Section II, five customer <br />groups have been formed for system cost allocation purposes. The~e cost factors have also been <br />separated into three principal compon~ntsofBase, Extra Capacity, and Customer costs to <br /> <br />'.-,', -'-::',.., <br />provide a means of further distributing furictionalizeo.c()sjs to the various customer classes on <br /> <br />,--'- ," <br />.....,...._,. '-'C"-"_::.:':::::_.._..__._.',:_,.':: <br />the basis of the respective responsibilities of ea.9h g{olip for e1.l9hparticular cost function. <br /> <br />Each element of cost is.a.llocated to functional costcpmponents of the system on the basis of the <br />parameter or parametefshaving tb~ mpstsignifi9aht influence on the magnitude of the element <br /> <br />C. Distribution of Fu.nctionalized Cost Components to Customer Groups <br />This is the final step in/determining the revenue requirement of each individual group of <br />customers front>the.total revenue requirement of the water system as a whole. The <br />functionalized costfactors are determined for each individual customer group on the basis of <br />each group's annual usage characteristics. <br /> <br />Due to the point-of-take of water, use of the system, and contractual agreements for the treated <br />water contract customers, transmission and distribution costs were isolated. While the water <br /> <br />City of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />June 2007 <br /> <br />8 <br />