Rate Design – Service Charge and Uniform Quantity Charge Rate Calculation Method. Based upon Great Oaks’ relative proportion of fixed and variable costs, the Settling Parties agree that the current methodology utilized to calculate service charges and the uniform quantity charge is just and reasonable. That methodology provides for the collection of 75% of fixed costs through service charges and all remaining costs (25% of fixed costs and 100% of variable costs) to be recovered through the uniform quantity charge and/or the tiered quantity charges for single-family residential customers. The Settling Parties have considered the percentages of fixed and variable costs recovered through service and quantity charges, as discussed in D.00-00-000, and agree that the rate design in the Partial Settlement Agreement that collects 75% of fixed costs through the service charge and 25% of fixed costs plus 100% of variable costs through the quantity charge to be fair and reasonable as a result of GOWC’s lower relative amount of fixed costs. References: Exhibit GOWC-2, WP47; Exhibit GOWC-6, WP47; Exhibit CA-1, p. 4-2; Exhibit CA-2, WP47.
