East Bay Municipal Utility District

California

RFC is assisting East Bay Municipal Utility District (District) in conducting comprehensive water and wastewater cost of service studies. The last comprehensive cost of service studies were conducted in 1995 and 2000 for the water utility and wastewater utilities, respectively.  As part of the study, RFC thoroughly examined the District’s cost structure, analyzed customer data, evaluated alternative rate structures, and facilitated policy decisions to develop an equitable rate structure that meets both Proposition 218 requirements and the District’s goals and objectives.

Important policy decisions included: geographical rates to reflect cost differences within the service area, the sunset of the Seismic Improvement Program, determination of the recycled water rate, and the cost allocation of the Supplemental Supply Program. The proposed rates not only retained the current rate structure, which included a fixed monthly charge based on meter size, a three-tier rate structure for single-family customers, and a uniform rate for multi-family and non-residential customers, the individual rates were also realigned to reflect the cost of service.

The District’s current rate structure also includes a fixed annual charge per dwelling units (up to five dwelling units) for single- and multi-family customers, and per parcel for non-residential customers for wet weather facilities. This rate structure was developed in the late 1980s. RFC and District staff evaluated various alternatives for the wet weather facilities charge to ensure equity amongst customer classes. The proposed wet weather facilities charge will be based on the average parcel size for each customer class, which has a stronger cost of service basis than the current rate structure.