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<br />REVISED DRAFT <br /> <br />e. <br /> <br />Lamar County Water Supply District <br /> <br />Marvin-Jennings Clardy WSC was not isolated as a customer class for rate determination due to <br /> <br />the nature oftheir contract, which determines the rate from a previously agreed upon volumetric <br /> <br />rate adjusted annually for inflation. Certain adjustments must be made in the cost of service and <br /> <br />rate design study ,to recognize Marvin-Jennings Clardy WSC's contract. <br /> <br />The adjustments <br /> <br />included, removing Marvin-Jennings Clardy WSC's consumption from the rate calculation and <br /> <br />recognizing their estimated revenues from the contract rate charge as a revenue offset in the cost <br /> <br />of service determination. Lamar Power Partners was isolated as a customer class, however, its <br /> <br />raw water rate was calculated separately and the revenues associated with the raw water <br /> <br />purchases were used as an offset to calculate the treated water rates. These adjustments help to <br /> <br />prevent an overestimate of consumption and an underestimate of revenues. <br /> <br />Cityo/Poris. Tems <br />Water oed Wastewater Cost a/Service SIIIdy <br />Morch 2003 <br /> <br />10 <br />