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Non-Demand Commercial <br /> Basic Monthly Electric Charge ... ... ... ... ... ... $26.00/Month <br /> Summer Energy Charge(Jun-Oct) ... ... ... ... ... $0.1314/kWh <br /> Winter Energy Charge(Nov-May) ... ... ... ... ... $0.1095/kWh <br /> Demand Commercial(50kW peak or greater) <br /> Basic Monthly Electric Charge ... ... ... ... ... ... $75.00/Month <br /> Energy Charge ... ... ... ... ... ... ... ... $0.0667/kWh <br /> Summer Demand Charge(Jun-Oct) ... ... ... ... ... $17.00/kW <br /> Winter Demand Charge(Nov-May) ... ... ... ... ... $12.00/kW <br /> The proposed rates will result in increases under 1%for typical customers in all classes. This is equivalent <br /> to a$14 per year increase for a typical residential customer. The $1/kW demand reduction for commercial <br /> demand customers goes away for 2018(it was $2/kW in 2016 and$1/kW in 2017),which results in a <br /> larger increase for these customers. <br /> Water Department Revenue and Expense Budget <br /> The proposed 2017 water budget reflects a 1.3% increase in revenue with a total budget of$2,982,460. <br /> This water budget results in a negative 15.23%projected margin,yet a projected$19,821 net to reserves. <br /> Notable items in the water budget for 2018 are: <br /> • Up to a 3% COLA for all four pay plan groups; <br /> • Conservative estimate for usage growth; <br /> • Water Main Construction for the MNDot project; <br /> • Preliminary Field Services Facility expansion planning and site prep; <br /> • Sandblasting Well#5 filter; <br /> • Rehabilitation Well#9; <br /> • Budgeting for audit adjustment of GASB required Pension Expense. <br /> The proposed rate design continues the direction of shifting to more fixed cost recovery to mitigate <br /> revenue recovery volatility related to weather. The proposed 2018 residential water rates are a 2.26 % <br /> increase to the first tier and a 2.03% increase in the basic monthly charge: <br /> Residential(1 Unit= 1000gallons) <br /> 1st Tier Unit Cost(0—9,000 gallons) ... $1.81/Unit <br /> 2nd Tier Usage(between 1st Tier and up to 15,000 gallons) ... ... $3.50/Unit <br /> 3rd Tier Usage(over 2nd Tier usage) ... ... ... ... ... $4.00/Unit <br /> 5/8"Basic Monthly Water Charge ... ... ... ... ... $9.04/Month <br /> These rate changes result in a projected 1.85% annual water cost increase for a typical residential <br /> customer. This is the equivalent to a$5.00 per year increase for these customers. <br /> For commercial customers, it is more difficult to classify typical users. The 1st Tier and meter charges are <br /> increased in the proposed budget. But because the 2nd and 3rd Tiers are not being increased,the amount of <br /> usage will result in commercial customer increases between 2.1% and 2.3%. The proposed 2018 <br /> commercial water rates are: <br /> Commercial (1 Unit= 1000 gallons; Winter Measurement Period=December—April billing cycles) <br /> 1st Tier Unit Cost(less than110%of average winter usage) ... ... $1.81/Unit <br /> 2nd Tier Unit Cost(between 1st Tier and an additional 40,000 gallons) ... $3.50/Unit <br /> 3rd Tier Unit Cost(over 2nd Tier usage) ... ... ... ... ... $4.00/Unit <br /> Page 2 of 3 <br /> 1()l <br />