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Section 3 <br /> - 8 - <br />Table 3-1 below summarizes the functional water costs for the 2024 Test Year. <br />The detailed cost functions are shown in Exhibit 3-A. <br /> <br />Table 3-1 <br />Functional Water Costs <br />2024 Test Year <br /> <br />Component <br />Revenue <br />Requirement <br />Plant $1,374,402 <br />Distribution 1,594,954 <br />Customer 139,845 <br />Revenue (298,198) <br />Total $2,811,004 <br />Classification of Costs <br />ERMU’s Test Year revenue requirements have been divided into distinct cost <br />classifications. The water cost classifications are described below. <br />Demand Related – demand related costs are costs required to meet the overall <br />maximum demand on the system. Demand related costs are predominately <br />associated with facility fixed costs. <br />Commodity Related – commodity costs tend to vary with the annual quantity of <br />water produced. <br />Customer Related – costs related to serving, metering and billing of individual <br />customers. <br />Revenue Related – revenue related costs vary by the amount of revenue received <br />by the utility or are associated with other operating and non-operating revenues. <br />Exhibits 3-B through 3-D show the detailed classification of revenue requirements <br />within the plant, distribution and customer functions.