Conclusion This approved rate structures and monthly wastewater rates are shown on Commission’s Schedule No. 4. CC. Reuse Service Rate This section details the appropriate rate that KWRU shall charge for its reuse service. Arguments Parties’ KWRU KWRU believed the appropriate reuse rate is $0.93 per 1,000 gallons. The Utility originally proposed a rate of $1.35 per 1,000 gallons in its MFRs. In response to an interrogatory, the Utility indicated that the proposed rate was a proportionate increase based on the overall requested revenue increase. However, in rebuttal testimony, Utility witnesses Johnson and Swain testified that KWRU supports a reuse rate of $0.93 per 1,000 gallons. KWRU Witness Swain testified that the reuse rate should not be increased disproportionately more than the overall revenue increase; reuse rates are generally charges for reuse are based on 50 percent of each potable water rate block, the FKAA’s lowest of which is $5.84 per 1,000 gallons. KWRU argued that a reuse rate of $0.93 will strike a balance to create demand for reuse while still maintaining an additional revenue stream. OPC witness Merchant testified the appropriate reuse rate is $1.34 per 1,000 gallons OPC’s based on the $1.35 per 1,000 gallons originally proposed by the Utility. OPC witness Merchant also testified that no additional charge for testing should be implemented. OPC argued that the reuse rate of $1.34 per 1,000 gallons reduces the burden on the residential and general service customers to achieve the approved revenue requirement, compared to a lower reuse rate which has the opposite effect. County The County argued the appropriate rate for reuse service is $1.34 per 1,000 KWRU’s gallons and the Commission should consider setting the rate significantly higher in order to provide better price signals and to reduce the rate impacts on regular service KWRU’s customers. The County agreed that reuse service is a market-based service product and should be priced closer to the cost of market alternatives such as FKAA. Harbor Shores In its brief, Harbor Shores agreed with position on this issue. OPC’s
Conclusion This Commission’s approved rate structures and monthly wastewater rates are shown on Schedule No. 4. CC. Reuse Service Rate This section details the appropriate rate that KWRU shall charge for its reuse service. Parties’ Arguments KWRU KWRU believed the appropriate reuse rate is $0.93 per 1,000 gallons. The Utility originally proposed a rate of $1.35 per 1,000 gallons in its MFRs. In response to an interrogatory, the Utility indicated that the proposed rate was a proportionate increase based on the overall requested revenue increase. However, in rebuttal testimony, Utility witnesses Johnson and Swain testified that KWRU supports a reuse rate of $0.93 per 1,000 gallons. KWRU Witness Swain testified that the reuse rate should not be increased disproportionately more than the overall revenue increase; reuse rates are generally FKAA’s charges for reuse are based on 50 percent of each potable water rate block, the lowest of which is $5.84 per 1,000 gallons. KWRU argued that a reuse rate of $0.93 will strike a balance to create demand for reuse while still maintaining an additional revenue stream. OPC OPC’s witness Merchant testified the appropriate reuse rate is $1.34 per 1,000 gallons based on the $1.35 per 1,000 gallons originally proposed by the Utility. OPC witness Merchant also testified that no additional charge for testing should be implemented. OPC argued that the reuse rate of $1.34 per 1,000 gallons reduces the burden on the residential and general service customers to achieve the approved revenue requirement, compared to a lower reuse rate which has the opposite effect. County The County argued the appropriate rate for KWRU’s reuse service is $1.34 per 1,000 gallons and the Commission should consider setting the rate significantly higher in order to provide better price signals and to reduce the rate impacts on KWRU’s regular service customers. The County agreed that reuse service is a market-based service product and should be priced closer to the cost of market alternatives such as FKAA. Harbor Shores In its brief, Harbor Shores agreed with OPC’s position on this issue.
03496-2017_17-0091.ord.docx