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Rate-study modeling shows biggest proportional impact on medium/high-strength commercial customers
Summary
The consultant’s cost-of-service allocation shows medium- and high-strength commercial customers would face larger proportional increases under the proposed rate path while the single-family allocation shifts slightly; the board asked for more detail on ADU/connection fee implications.
As part of the rate-study presentation, the consultant explained cost-of-service allocations across five customer classes and displayed modeled bill impacts under the proposed rate plan. The consultant said single-family residential allocations would change only slightly while medium- and high-strength commercial customers would see larger proportional increases tied to strength and flow.
The consultant also told the board that connection fees and recent state law concerning small ADUs (up to 750 square feet) apply primarily to impact- or connection-fee policies rather than ongoing rate charges for service; staff said connection fees would be addressed in a separate forthcoming recommendation.
Directors asked the consultant to provide additional detail on how allocations change and whether alternative gradual increases could reduce early-year impacts on customers without forcing larger increases later. The board ultimately directed staff to proceed with the debt-funded scenario but asked for comparisons of alternate rate paths before finalizing the Proposition 218 materials.
A sample projection in the packet showed a single-family residential bill rising from roughly $1,004.80 to about $2,006.20 over five years in one modeled scenario — a large nominal increase that reflects cumulative multi-year adjustments and cost-of-service reallocation for customers.
