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Section 3 <br />As indicated above, ERMUexactlymatch the <br />allocated cost to serve each class. Cost based rates are one of several goals in <br />establishing rates. The relationship between allocated costs and revenues for <br />each class should be considered, in addition to other rate related goals, in <br />developing recommended rates. <br />ERMU currently charges a Water Access Charge (WAC) for new customers. The <br />WAC is a combination of the Water Connection Charge and the Water Availability <br />Charge. The current WAC is $3,764 per WAC unit. A single WAC unit is <br />equivalent to a single residential customer. Water systems require significant <br />capital investment, that investment includes excess capacity in anticipation of new <br />customers. The concept of the WAC is for new customers to buy into the existing <br />system. <br />ERMU has 4,647 residential customers and 609 commercial/industrial customers. <br />The average flow per commercial/industrial customer is 8.3 times as much as the <br />average residential customer flow. Utilizing a WAC weighting of 8 for <br />-12 - <br />193 <br />