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VII. REVIEW OF WASTEWATER SYSTEM DATA <br />A. Review of Historical Wastewater Data <br />To determine a comparison of wastewater production to water consumption by the City's water <br />utility customers, available test year data was analyzed for the purpose of this study. From the <br />test year residential water consumption, water-only (customers with sprinkler meters and septic <br />tanks) consuinption was removed. <br />Commercial coutriUution to the wastewater system is estimated from the commercial and retail <br />industrial water consumption after eliminating the consumption of the water-only accounts. <br />Since the commercial and industrial water consumption exhibits minimal seasonal variation, it is <br />assumed 100 percent of the water consumption of these customers is contributed to the <br />wastewater system. <br />B. Determination of Customer Classes <br />The City has a special contract with Sara Lee with respect to wastewater discharge. Sara Lee's <br />wastewater rate is not Uased on the total cost of service f'or the wastewater utility since Sara Lee <br />contriUt►ted up-fi•ont capital to reserve a certain capacity in the wastewater treatment plant for <br />future use. In order to recognize Sara Lee's contract with regard to the cost of service and rate <br />design stucly, Sara Lee's wastewater volumes were removed from the rate calculation and their <br />revenues were recogiiized as revenue offsets. These adjustments help to prevent an overestimate <br />of wastewater billing units and an underestimate of revemies. <br />Por the pui-pose of distriUuting the total revemie requirement for the system, the wastewater <br />utility customers are divided into two classes: Residential and Commercial. Residential and <br />Commercial customers are assumed to discharge wastewater of norrnal system stt•ength. Any <br />metered commercial customer that discharges wastewater of strength greater than the criteria set <br />for residential and commercial customers pays for the added cost of treatment required. <br />15 Ciij, of Paris, Tetn.r <br />Wnter nnd Wastetrnter Cost ofSenvice Study <br />June ?010 <br />240 <br />