Calculating Sewer Rates For Wholesale Or Utside City Customers (Page 2 of 2) in pdf

Calculating Sewer Rates For Wholesale Or Utside City Customers Page 2

Worksheet #6, pg. 2 of 2

CALCULATING SEWER RATES

FOR WHOLESALE OR OUTSIDE CITY CUSTOMERS

Estimate market rate on G.O. Bonds

Compute outstanding long-term debt

Amount

Annual

Outstanding

Payment

Existing Debt

Proposed Debt

Lease Agreements

Subtotal

Compute System Equity

(Rate Base)

(Subtotal L-T Debt)

(System Equity)

Compute total return on rate base

(System Equity)

(G.O. Bond Rate)

(Capital Return)

(Annual Payment L-T Debt)

(Total Return on Rate Base)

Compute allocated return on rate base

(Total Return on Rate Base)

(Ratio of Billable Volume)

(Allocated Share of

Return on Rate Base)

Compute Total Outside City Customer Revenue Required

(Outside City Share of O&M)

(Total Depreciation)

(Allocated Return on Rate Base)

(Total Revenue Required)

Compute Outside City User Charges

Use the total revenue requirement computed above as input to Section III

of Worksheet #4 making adjustments in Sections I and II to reflect only Outside

City customers and volumes.

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Calculating Sewer Rates For Wholesale Or Utside City Customers Page 2