ELCO_RateStudy_75%ProgReport

• Water Efficiency Grant Type: Water Conservation Implementation Grant
• Contract/PO #: OE PDA 13-104
• Applicant: East Larimer County Water District
• Project Name: Water Rate Study
• Title: 75% Progress Report
• Date: 8/25/2013
• County: Larimer
• Water Efficiency - Doc Type: Interim Reports

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AUG 292013
Colorado 4ASA ?nlr
_ ® Conservation Board
Memorandum
East Larimer County Water District
To Ben Wade, Office of Water Conservation & Drought Planning CWCB
From: Melissa Tremelling, East Larimet County Water District
Webster Jones, P.E., Water Consulting Group
Date: August 25, 2013
Subject: 75%Progress Report for East Larimer County Water District Rate Study
Water Efficiency Grant#PO 13000000104
This memorandum has been prepared to provide the status of work performed to date on the water
rate study for East Larimer County (ELCO) Water District. The water rate study is being partially
funded by a Water Efficiency Grant administered by the Colorado Water Conservation Board:
(OE PDA 13000000104).
Task 1.3 —Cost-of-Service Analysis —July 15 to August 9
The rate model was finalized and cost-of-service adjustments were calculated. Wholesale
cost-of-service calculations presented unique challenges due to contractual provisions and
allocation methodologies utilized in past rate studies.
Preliminary results indicate the amount of revenue collected from residential customers
needs to increase by approximately 7%to accurately reflect their cost-of-service. Mobile
home customers are currently paying more than their cost-of-service. The necessary
adjustment to monthly minimum charges to more accurately reflect cost-of-service for
mobile home customers is being discussed with District staff. Revenue from other customer
categories is within 5%to 10% of cost-of-service.
Task 1.4—Preparation of Draft Reports—August 10 to August 24
k draft report is being prepared to describe the following: (1) background information on
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(2.) cost-of-service methodology and wholesale cost allocation, (3)revenue requirements,
(4) cost-of-service calculations, and (5) rate design.
Task 1.4—Meetings, Reporting to CWCB and Presentations to Board
On August 19, the consultant discussed preliminary results with District staff and obtained
direction on rate alternatives. The 50% Progress Report was submitted to CWCB on July
15. A preliminary draft and summary of the analysis will be presented to the District Board
on September 10.
232 South Link Lane, P.O. Box 2044 • Fort Collins, Colorado 80522 • Phone [phone] • Fax [phone]