Projected Revenue Impacts of Total Conversion
The issue of converting flat-rate billing to metered billing is a topic of ongoing study due to its potential impact on revenues and rates. Essentially, all Single Family Flat Rate services have a meter installed which has improved the estimates of revenue impacts significantly. The following table is based on data from the metered-flat-rate services identified above, and compares prior-year estimates provided to the Board to the 2007 estimate.
In spite of the variability in consumption on forecasted revenues, particularly resulting from weather-related influence, the projected revenue loss is not significant. The 10-Year Funding Plan will incorporate the results of this analysis on projected water sales and revenue changes.
The Board's decision to phase customer rate adjustments and to transition customer water rates toward the cost-based 2005/2006 revenue requirement continues to provide TMWA with the ability to convert flat-rate services to metered rates without inducing volatility to future customer water rate studies. This methodology of phasing in rates, while allowing customers the ability to choose metered billing over time, continues to provide opportunities to review revenue impacts with actual non-billing, flat-rate water use data available each year.
Source: Staff Report, October 08 Strategic Planning Workshop
