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<br />calculation. Costs allocated to existing customers must be paid. through some. other funding <br />sources (e.g., existing reserves or future user rates). <br /> <br />As indicated in Figure 3, the allocation of project costs to growth is a function, of the type of <br />project and a detailed capacity analysis that identifies growth's share of; 1) planned capacity <br />expansion, and 2) total future load. . <br /> <br />Costs by capacity parameter are allocated to growth as follows: <br /> <br />Capacity Projects: Growth's share 'f capacity expansion (%) X project cost ($) <br /> <br />Performance Upgrades: Growth's share of total future System capacity (%) X project cost ($) <br /> <br />Rehabilitation Projects: Allocation to growth = 0% <br /> <br />Where: <br /> <br />1. Growth's share of capacity e'Wansion = Projected.growth capacity requirement (not met <br />by existing available capacity) divided by additional capacity to be 'added to the system <br />by planned improvements. <br /> <br />, 2. Growth's share of total future system capacity = Projected growth capacity requirement <br />(total) divided by total future system capacity requiremeJ'lt. <br /> <br />Table 6 summariZes the growth allocation p~rcentages by project type.. The documentation <br />for these figures is provided in Appendix C. <br /> <br />TABLE 6 <br />Growth Allocation Percentages by Project Type <br /> <br />Project Type <br /> <br />Capacity (growth's share of capacity <br />expansion) <br /> <br />Perfonnance (growths share of total <br />future system capacity) <br /> <br />Rehabilitation <br /> <br />Source: 2004 F acUities Plan <br /> <br />Average Flow <br />100% <br /> <br />Peak .Flow . <br /> <br />BOD <br /> <br />TSS <br /> <br />29.4% . <br /> <br />1000/0 <br /> <br />100%' <br /> <br />26.10/0 <br /> <br />10.8% <br /> <br />25.90/0 <br /> <br />26.'1 % <br /> <br />00/0 <br /> <br />0% <br /> <br />0% <br /> <br />0% <br /> <br />Step Four · Adjustments <br /> <br />The methodology includes the following adjustments to the reimbursement and . <br />improvement fee cost bases: <br /> <br />. Gifts or grants from federal or state government or privatepe~sons. Existing (and if, <br />applicable in the future, planned) ass~t costs are reduced by the percent of the asset that ' <br />is funded by grants. . <br /> <br />. Ratemaking principles employed to finance .t~e capital impro;vements. Projected <br />capital financing cost (i.e., interest expense) is added to the cost basis, based on the <br />recqmmended project phasing an4 the need to borrow funds. <br />