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WATER RATES ON CATALINA ISLAND

WATER RATES ON CATALINA ISLAND. A TUTORIAL. TO DISCUSS WATER YOU HAVE TO KNOW WATER SPEAK  SIX KEY WORDS REVENUE REQUIREMENT SALES FORECAST RATE DESIGN RATE BASE RETURN ON INVESTMENT (ROI) LOST REVENUE MEMO ACCOUNT.

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WATER RATES ON CATALINA ISLAND

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  1. WATER RATES ON CATALINA ISLAND A TUTORIAL

  2. TO DISCUSS WATER YOU HAVE TO KNOW WATER SPEAK  SIX KEY WORDS REVENUE REQUIREMENT SALES FORECAST RATE DESIGN RATE BASE RETURN ON INVESTMENT (ROI) LOST REVENUE MEMO ACCOUNT

  3. REVENUE REQUIREMENT—THE AMOUNT OF REVENUE EDISON HAS BEEN AUTHORIZED BY THE CALIFORNIA PUBLIC UTILITY COMMISSION (CPUC) TO ANNUALLY CHARGE. INCLUDES COSTS OF OBTAINING AND DISTRIBUTING WATER, REPAYMENT OF PART OF THE RATE BASE AND PROFIT. CURRENTLY $4,130,000.

  4. SALES FORECAST—PREDICTION OF HOW MUCH WATER EDISON EXPECTS TO SELL IN THE YEAR. CURRENTLY, 125,700,000 GALLONS. ACTUAL IN 2017, 78,800,000 GALLONS.

  5. RATE DESIGN—DETERMINATION OF WHO WILL PAY WHAT PORTION OF THE REVENUE REQUIREMENT THROUGH MONTHLY BILLS. CATEGORIES—RESIDENTIAL AND NON-RESIDENTIAL (SOMETIMES CALLED COMMERCIAL). CURRENTLY SET AT 51% NON-RESIDENTIAL AND 49% RESIDENTIAL. ACTUAL 60% NON-RESIDENTIAL AND 40% RESIDENTIAL.

  6. RATE BASE—APPROVED CAPITAL EXPENDITURES COLLECTED OVER TIME AS PART OF THE REVENUE REQUIREMENT. EDISON WANTS TO ADD $9,330,000 ALREADY SPENT TO THE RATE BASE.

  7. RETURN ON INVESTMENT (ROI)--. INTEREST ON THE RATE BASE COLLECTED AS PART OF THE REVENUE REQUIREMENT. SAME PERCENT APLLIED TO DETERMINE EDISON’S ELECTRICAL REVENUE REQUIREMENT. EDISON’S GUARANTEED PROFIT.

  8. LOST REVENUE MEMO ACCOUNT—ACCRUED UNCOLLECTED REVENUE REQUIREMENT TRIGGERED BY RATIONING. CURRENTLY $5,500,000+.

  9. REVENUE REQUIREMENT SALES FORECAST RATE DESIGN RATE BASE RETURN ON INVESTMENT (ROI) IF ANY OF THESE CHANGE, RATES HAVE TO CHANGE.

  10. IF LESS WATER IS SOLD, THE REVENUE REQUIREMENT IS NOT COLLECTED, WHICH MEANS RATES MUST GO UP SO THAT THE REVENUE REQUIREMENT CAN BE COLLECTED. REDUCING WATER USE TEMPORARILY LOWERS BILLS BUT IT DOES NOT CAUSE RATES TO LOWER. IT EVENTUALLY CAUSES RATES TO GO UP SO THAT EDISON CAN COLLECT ITS LOST REVENUE.

  11. RATIONING RESULTS IN USING LESS WATER THAN FORECASTED WHICH RESULTS IN EDISON COLLECTING LESS THAN ITS APPROVED REVENUE REQUIREMENT WHICH TRIGGERS THE LOST REVENUE MEMO ACCOUNT. CURRENTLY $5,500,000+.

  12. CATALINA ISLAND MOTTOS: SAVE WATER, RAISE YOUR RATES. BETTER SAVE WATER SO YOU WILL HAVE WATER IN THE FUTURE.

  13. MORE INFO AT WWW:HCHOACATALINA.ORG

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