Georgetown said electricity represents “an extraordinarily high” 38 percent of the water division’s direct operating expenses.
“Given that the water division is now responsible for its entire electricity expense, it is important that every effort be made to ensure that the division is using electricity efficiently,” Georgetown said.
In its testimony dated May 5, Georgetown said the estimate for annual water division electricity expenses should be verified by comparing engineering estimates for power consumption to actual meter readings.
At present, electricity expense is based on an engineering estimate because not all of the electricity used by the water division is metered, Georgetown said.
“All water division use of electricity should be metered,” the regulatory consultant said.
Georgetown said CUC can request that portions of the $6 million grant it received from the Environmental Protection Agency for water projects, and of the $5 million grant for the wastewater project, is allocated for the installation of working meters for all customers.
If all water customers are metered, CUC will produce $1.9 million in additional cash flow without increasing its current rates, Georgetown said.
According to Georgetown, “Installing meters for all customers will also reduce the number of potential complaints and arguments with customers over the level of usage.”
Dan V. Jackson, managing director of Economist.com, CUC’s rate consultant, said CUC is projecting to have 4,022 active metered residential customers and 5,029 unmetered residential customers this year.
For the unmetered water customers, Georgetown recommended a flat charge using 90 percent of the current average usage for both residential and commercial classes.
The residential class’ average monthly metered usage is 9,978 gallons, so the unmetered flat rate will be based on 8,981-gallon usage per month.
The metered commercial class’ average month usage is 42,364 gallons, so the unmetered flat rate will be based on 38,128 gallons per month.
Inclusive of service, the flat rate for the residential class will be increased to $39.52 from the current $20.10 while the rate for the commercial class will be $203.86 from $47.79.
