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Proposed Rates <br />- 21 - <br />perspective. Larger solar installations pay more for utilizing the benefits of the fixed <br />distribution system. Customers still receive retail credit for energy generated. This <br />option also does not require any additional metering requirements. Customers are <br />billed a fixed amount every month based on the installed capacity. The calculation of <br />this charge for BMU based on this cost-of-service study is shown below. The values in <br />this analysis are taken from Exhibits 3-E and 3-F in this report. <br /> <br /> Allocated Residential Distribution and Customer costs - $5,442,319 <br /> ($4,103,250 plus $1,339,069) (Exhibit 3-F) <br /> Allocated Residential Revenue cost - $729,199 (Exhibit 3-F) <br /> Residential Revenue adjustment - $729,199/$5,442,319 = 13.4% <br /> Allocated Residential Distribution Demand cost - $2,522,847 (Exhibit 3-F) <br /> Adjusted Resid. Distribution Demand cost - $2,522,847 x 1.134 = $2,860,908 <br /> Residential Sum of Maximum Demands – 574,671 kW (Exhibit 3-E) <br /> Residential Distribution Demand Cost/kW - $2,860,908/574,671 = $4.98/kW <br /> <br />The revenue adjustment shown in the calculation above is calculated to adjust local <br />operating costs to account for revenue-allocated cost items. This adjustment is utilized <br />to adjust the allocated distribution system demand cost. The adjusted distribution <br />demand cost is divided by the total estimated sum of maximum demands for the <br />Residential class. The rate calculated above is $4.98/kW based on 2024 costs. This <br />rate has been rounded up to $5.20/kW to adjust for future costs beginning in 2026. This <br />represents a decrease from the current $5.56/kW charge in effect for ERMU. <br />