Water Cost of Service Study — Riverside City Council, June 27, 2023 (part 1 of 2)

City of Riverside Public Utilities

2023 WATER COST OF SERVICE AND

RATE DESIGN STUDY
FINAL | May 2023

2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | i
Contents
Section 1 1
Introduction 1

1.1 Study Purpose 1

1.2 Overview of the Rate Setting Process 2

1.3 Forward-Looking Statement 3

1.4 Riverside Public Utility Background 3

1.4.1 Impact of Weather Conditions 7

1.5 Capital Improvement Plan 8

1.6 Existing Rate Structure 8
Section 2 11
Water Usage and Supply 11

2.1 Growth and Water Demand 11

2.1.1 Customer Account Growth 11

2.1.2 Water Usage 12
Section 3 15
Revenue Requirements 15

3.1 Introduction 15

3.2 Ongoing Costs and Offsetting Revenues 16

3.2.1 Operating and Maintenance Costs 16

3.3 Debt Service 17

3.4 Capital Improvement Plan 18

3.4.1 CIP Funding 19

3.4.2 Projected Debt Issuances 19

3.5 Reserve Requirements 20

3.6 Offsetting Revenues 21

3.7 Revenue Requirement Forecast 22
Section 4 25
Water Cost of Service Analysis 25

4.1 Functional Cost Allocation 26

4.1.1 Water Production and Operations 30
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4.1.2 Water Field Operations 33

4.1.3 Water Engineering 34

4.1.4 Office of Operations Technology 34

4.1.5 Debt Service 34

4.2 Rate Component Allocation 34

4.2.1 Max Day and Max Hour Analysis 35

4.2.2 Rate Component Allocation Results 36

4.2.3 Fixed and Variable Cost Recovery 37

4.3 Rate Code Allocation 46

4.3.2 Water Supply Allocation 47

4.3.3 Water Demand Characteristics – Units of Service 49

4.3.4 Interruptible Rates 49
Section 5 52
Water Rate Design 52

5.1 Selecting Rate Structures 52

5.1.1 Ratemaking Principles 52

5.1.2 Proposed Water Rate Structure 53

5.2 Fixed Charges 53

5.3 Variable Rates 55

5.3.1 Seasonally Adjusted Rates 55

5.3.2 Single Family Residential Rates 56

5.3.3 Proposed Single Family Rate Structure 56

5.3.4 Proposed Single Family Rates 57

5.3.5 Multi-Family Residential Rates 66

5.3.6 Commercial and Industrial Rates 69

5.3.7 Landscape Irrigation Rates 73

5.3.8 Temporary Service Rates 76

5.3.9 Riverside Water Company Irrigators Rates 78

5.3.10 Interruptible City Irrigation and Recycled Water Rates 79

5.4 Outside City Surcharge 83

5.5 Demand Reduction Rates 85
Section 6 91
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Legal Requirements 91

6.1 Introduction 91

6.2 Article XIII D 91

6.3 California Assembly Bill 2882 92

6.4 Article XIII C 93

6.5 Article X 94
Appendices
Appendix A Revenue Requirement and Financial Information Appendix B Functionalization of Costs
Appendix C Cost of Service Allocation
Appendix D Customer Class Allocation
Appendix E Cost of Water Analysis
Appendix F Supply Allocation
Appendix G Customer Data and Projections
Appendix H Rate Calculations
Appendix I Outside City Surcharge Calculation
Appendix J Demand Reduction Rates
Tables
Table 1 Existing Rate Class Descriptions 9
Table 2 Existing (FY 2023) Rates and Charges by Customer Class 10 Table 3 Account Growth 12
Table 4 Projected Sales by Class (thousand CCF) 13
Table 5 Projected Water O&M and other Ongoing Expenditures (thousand $) 17 Table 6 Outstanding Water Debt Obligations and Debt Service (thousand $) 18 Table 7 CIP Funding by Source (millions $) 19
Table 8 Projected Bond and Short-Term Issuances (thousand $) 20 Table 9 Undesignated Reserve Level Metrics 20
Table 10 Projected Undesignated Min & Max Target Reserve Calculations (millions $) 21 Table 11 Projected Offsetting Revenues (millions $) 22
Table 12 Results of Revenue Requirement Analysis (millions $) 23 Table 13 Required Rate Revenue (millions $) 24
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Table 14 Allocation Summary of O&M by Cost Center 28
Table 15 Allocation Summary of Debt Service 29
Table 16 Water Production by Source 31
Table 17 Historic Source of Supply Costs 32
Table 18 Estimated Potable Retail Supply Costs 33
Table 19 System Demand Factors Calculation 35
Table 20 Extra Capacity Allocation Calculations 36
Table 21 O&M Allocation Factors 39
Table 22 Rate Category Allocation of O&M Expenditures ($ millions) 40 Table 23 Rate Category Allocation of Debt Service ($ millions) 41 Table 24 Rate Category Allocation of CIP ($ millions) 42 Table 25 Rate Category Allocation of Total Revenue Requirements ($ millions) 43 Table 26 Rate Category Allocation of Baseline Rate Revenue Requirements for FY 2023/24 to FY 2027/28 ($ thousands) 45
Table 27 Supply Allocation by Rate Code (CCF) 48
Table 28 Units of Service 50
Table 29 Rate Code Allocation for FY 2023/24 (thousands $) 51 Table 30 Monthly Component Charges 53
Table 31 Components to Proposed Fixed Charge (FY 2023/24) 54 Table 32 Proposed Monthly Fixed Charges (FY 2023/24 to FY 2027/28) 54 Table 33 Seasonal Peak Factors Calculation 56
Table 34 SFR Proposed Rate Calculation: Base/Extra Capacity by Tier (FY 2023/24) 57 Table 35 SFR Seasonal Allocation Percentage Calculation (FY 2023/24) 58 Table 36 SFR Proposed Rate Calculation: Base/Extra Capacity Costs by Season (FY 2023/24) 58 Table 37 SFR Proposed Rate Calculation: Supply by Tier (FY 2023/24) 59 Table 38 SFR Proposed Rate Calculation: Supply Costs by Season (FY 2023/24) ($1,000s) 60 Table 39 SFR Proposed Rate Calculation (FY 2023/24) 60
Table 40 Proposed Single Family Rates 61
Table 41 Single Family Test Customers 63
Table 42 Single Family Monthly Bill Impacts 66
Table 43 Proposed Multi-Family Rates 67
Table 44 Multi-Family Test Customers 67
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Table 45 Multi-Family Monthly Bill Impacts 69
Table 46 Commercial and Industrial Rate Calculation (FY 2023/24) 70 Table 47 Proposed Commercial and Industrial Rates 70
Table 48 Commercial and Industrial Test Customers 71
Table 49 Commercial/Industrial Monthly Bill Impacts 73
Table 50 Landscape Rate Calculation (FY 2023/24) 73
Table 51 Proposed Landscape Rates 74
Table 52 Landscape Test Customers 74
Table 53 Landscape Monthly Bill Impacts 76
Table 54 Temporary Service Daily Rental Fee Calculation (FY 2023/24) 77 Table 55 Proposed Temporary Service Daily Rental Fees and Maximum Monthly Charges 77 Table 56 Temporary Service Rate Calculation (FY 2023/24) 78 Table 57 Proposed Temporary Service Rates 78
Table 58 Proposed Riverside Water Company Irrigators Rates 79 Table 59 Interruptible City Irrigation and Recycled Water Rate Calculation (FY 2023/24) 80 Table 60 Proposed Interruptible City Irrigation and Recycled Water Rates 80 Table 61 Interruptible Irrigation and Recycled Water Test Customers 81 Table 62 Interruptible Irrigation and Recycled Water Monthly Bill Impacts 83 Table 63 Projected Outside City Costs ($ thousands) 84
Table 64 Outside City Revenues Without Surcharge 84
Table 65 Outside City Surcharge Calculation 84
Table 66 Fixed Service Charges for Reduction Stage 1: 15 Percent 86 Table 67 Volumetric Rates for Reduction Stage 1: 15 Percent 86 Table 68 Fixed Service Charges for Reduction Stage 2: 20 Percent 88 Table 69 Volumetric Rates for Reduction Stage 2: 20 Percent 88 Table 70 Fixed Service Charges for Reduction Stage 3: 30 Percent 89 Table 71 Volumetric Rates for Reduction Stage 3: 30 Percent 90

Figures
Figure 1 Cost of Service Rate Study Process 2
Figure 2 RPU Service Area 4
Figure 3 Groundwater Basins 5
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Figure 4 Treatment and Transmission Facilities 6
Figure 5 Distribution System 7
Figure 6 Projected Water Sales 14
Figure 7 Percent of Projected Consumption per Rate Code (FY 2023/24) 14 Figure 8 Five Year CIP Costs 19
Figure 9 Fixed Cost Recovery 38
Figure 10 SFR Projected Usage 62
Figure 11 SFR Projected Revenue by Monthly Usage 62
Figure 12 SFR Monthly Usage Distribution 64
Figure 13 SFR Average Monthly Bill by Usage Percentile 64 Figure 14 SFR Increase in Average Monthly Bill 65
Figure 15 SFR Annual Bill Increase 65
Figure 16 MFR Average Monthly Bill by Usage Percentile 68 Figure 17 MFR Increase in Average Monthly Bill 68
Figure 18 MFR Annual Bill Increase 69
Figure 19 Commercial/Industrial Average Monthly Bill by Usage Percentile 71 Figure 20 Commercial/Industrial Increase in Average Monthly Bill 72 Figure 21 Commercial/Industrial Annual Bill Increase 72 Figure 22 Landscape Average Monthly Bill by Usage Percentile 75 Figure 23 Landscape Increase in Average Monthly Bill 75 Figure 24 Landscape Annual Bill Increase 76
Figure 25 Interruptible Irrigation and Recycled Water Average Monthly Bill by Usage Percentile 81 Figure 26 Interruptible Irrigation and Recycled Water Increase in Average Monthly Bill 82 Figure 27 Interruptible Irrigation and Recycled Water Annual Bill Increase 82

FINAL | MAY 2023 | vii
Abbreviations
AB Assembly Bill
AF acre-feet
AFY acre-feet per year
ADD average day demand
BAB Build America Bonds
Carollo Carollo Engineers
CCF hundred cubic feet
CIP capital improvement plan (program)
City City of Riverside
COSA cost of service analysis
DSCR debt service coverage ratio
DU dwelling unit
FY fiscal year
GFT general fund transfer
GPCD gallons per capita per day
kWh kilowatt-hour
LOC line of credit
MDD maximum day demand
MEU Meter Equivalent Unit
MFR multi-family residential
MHD maximum hour demand
O&M operations and maintenance
RPU Riverside Public Utilities
RWQCP Regional Water Quality Control Plant
SFR single family residential
SHARE Sharing Households Assist Riverside’s Energy program Study rate design study
SWRCB State Water Resources Control Board
WMWD Western Municipal Water District
WSCP water shortage contingency plans

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Section 1

INTRODUCTION

1.1 Study Purpose
The City of Riverside (City) Public Utilities (RPU) Department provides safe and reliable water to approximately 66,000 service connections in an environmentally and financially responsible manner. In the face of significant challenges for the water utility industry, including aging infrastructure, climate change, and regulations aimed at curbing its impact, RPU has developed a comprehensive financial plan including a capital infrastructure improvement plan. This capital infrastructure capital improvement plan reimagines RPU’s water service by replacing infrastructure and expanding system capacity to meet future demand.

To fund future capital infrastructure costs, operations, and maintenance costs, RPU retained Carollo Engineers (Carollo) to conduct a five-year rate design study (Study) from fiscal year (FY) 2024 through FY 2028. This study incorporates and builds upon the projections in the financial pro forma and consumption forecasts, and draws on several other sources including, but not limited to, historical billing data, cost of water analyses, and engineering data related to RPU’s water systems.

The current rates reflect recommendations from the previous 2018 Study which adjusted the balance of fixed and variable revenue recovery. Most significantly, the percentage of costs recovered by the fixed charge increased to approximately 40 percent of retail revenues to improve revenue stability and the number of tiers in the residential and commercial classes were reduced. Additionally, it recommended implementing a uniform meter size-based flat monthly charge applied to all customer classes, combined or removed many customer classes, and distinguished single family residential (SFR) customers from multi- family residential (MFR) customers to allow for a three-tier seasonal rate structure and two-tier rate structure, respectively. Lastly, two rate classes were created for customers that use water for outdoor irrigation. The landscape class is for users with on demand access to water for irrigation, and the interruptible class is primarily for government accounts that can be required to shut down during times of drought or otherwise mandated conservation.

The variable wet weather conditions and dry seasons have somewhat alleviated drought conditions, but statewide, water scarcity remains an ongoing challenge. While the City was not under drought mandates during the period of this Study, it is expected that weather variability, conservation efforts, and continued messaging from the State and other entities will result in sustained demand reductions. These uncertainties underscore the need for integrated financial planning and flexible rate design. At the outset of the study, Carollo and RPU discussed and summarized key study goals. Several key issues and challenges that were considered during the cost of service analysis and rate design project included:
• Review implications of ongoing water conservation.
• Implement cost of service-based demand reduction rates compliant with Proposition 218 and adaptable to changing water demands.
• Maintain financial stability while incentivizing efficient water usage. • Align fixed and variable revenue collection with costs. • Evaluate tier breakpoints and pricing structure for residential customers. • Achieve customer equity under continued changes to consumption. 2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 2
• Review customer demand impacts from implementing a new rate structure. • Identify future fiscal, operational, and capital impacts and considerations.

The purpose of this report is to address each of these key issues as part of the systematic evaluation and development of the cost of service analysis and RPU rate design.

The study was divided into three main phases to address these issues and prepare the rate design:

1. Cost of Service Analysis.

2. Water Utility Rate Trends Analysis.

3. Rate Design Recommendations.

This Cost of Service Analysis Report (COSA) addresses the cost of service analysis and the rate design recommendations. Earlier in the study process, water utility rate trends were reviewed to explore and evaluate industry rate trends and present alternatives that might be appropriate for RPU to consider.

1.2 Overview of the Rate Setting Process
Rate analyses should be performed periodically so that revenues from rates adequately fund utility operations, maintenance, and capital investments. Additionally, in California, water rates must adhere to the cost of service requirements imposed by Proposition 218 and the State Constitution. Proposition 218 requires that property related fees and charges, including water rates, do not exceed the reasonable cost of providing the service. In addition to Proposition 218 requirements, Article X (2) of the State Constitution establishes the need to preserve the State’s water supplies and discourage the wasteful or unreasonable use of water by encouraging conservation. The proposed rate plan accounts for both the proportionality requirement of Proposition 218, along with encouraging efficient use of water.

The cost of service rate analysis presented within this report consists of the following three interconnected processes:

Figure 1 Cost of Service Rate Study Process

Revenue Requirement Analysis
•Compares existing revenues of the utility to its operating, capital, and policy driven costs to establish the adequacy of the existing cost recovery levels.

Cost of Service Analysis
•Identifies and apportions annual revenue requirements to functional rate components based on its application of the utility system.

Rate Design
•Considers both the level and structure of the rate design to collect the distributed revenue requirements from each class of service.

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The processes presented above are advocated by the American Water Works Association (AWWA) for cost of service rate setting. While the process is described in a linear step by step approach, it is better understood as an iterative process where the ultimate objective is to balance revenues with costs in an equitable manner for customers. These three processes will form the basis for the rate analyses presented within this report.

1.3 Forward-Looking Statement
The rate calculations presented within this report are based on the reasonable projections of existing service costs, water demands, system operations with information available, and on existing legal requirements.

Moreover, RPU developed the financial pro forma that serves as the basis for all rate calculations. Significant changes in RPU's operations or costs or the capital improvement plan (CIP), changes occurring in California law, deviation from the projected water demands, or further regulatory actions by the Governor or the State Water Resources Control Board (SWRCB) in regard to water use may result in the projected rate revenues deviating from Carollo's projections and could require RPU to revisit the cost of service analysis.

1.4 Riverside Public Utility Background
The current RPU service area is approximately 75 square miles and includes about 66,000 water service connections. The service area is primarily within the City limits and includes approximately five square miles of land served by RPU outside of the City limits as shown on Figure 2. RPU’s potable water system consists of groundwater basins, groundwater wells, a supply transmission system, water treatment plants, and a water distribution system. These water supplies are used to meet both ongoing, year-round and peak summer demands, as well as provide a level of resiliency for drought conditions.

RPU has facilities to extract groundwater from five groundwater basins: Bunker Hill, Rialto-Colton, Riverside North, Riverside South, and Arlington Basins. RPU’s groundwater supply production is based on the 1969 Western-San Bernardino Judgment that regulates basin extraction amounts. The location of these groundwater basins, the City boundaries, and RPU’s groundwater wells are depicted on Figure 3 (Figure 2.3 from master plan).

Groundwater pumped from RPU’s wells is conveyed to the Linden-Evans Reservoirs for blending and temporary storage through a network of water supply transmission lines. This supply system consists of four transmission mains: Gage Pipeline, Waterman Pipeline, North Orange Pipeline, and the Flume Pipeline.

Prior to reaching the Linden-Evans Reservoirs, groundwater from several wells is treated at one of RPU’s six water treatment facilities. See Figure 4 (Figure 2.4 from master plan) for a diagram of the supply system.

From Linden-Evans Reservoirs, water is distributed to RPU's customers. The distribution system includes approximately 66,000 connections and consists of 44 pressure zones, 993 miles of pipelines, 16 storage reservoirs, 38 booster pump stations, and 28 pressure regulating stations. See Figure 5 (Figure 2.5 from master plan) for a diagram of the distribution system.

RPU also distributes a small amount of recycled water (between 150 and 300 acre-feet-per-year [AFY]) from the City's Regional Water Quality Control Plant (RWQCP). Current deliveries are to nine meters located near the RWQCP. Based on current effluent flows, the RWQCP has the potential to deliver approximately 5,400 AFY, after subtracting a 25,000 AFY environmental commitment. Since the previous COSA study, RPU has invested in expanding the recycled water system and is now exploring options to incentivize customers to connect. Additionally, a recycled water master plan is currently underway and upon its completion, a detailed recycled water rate analysis will be conducted.

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Figure 2 RPU Service Area

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Figure 3 Groundwater Basins

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Figure 4 Treatment and Transmission Facilities

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Figure 5 Distribution System

1.4.1 Impact of Weather Conditions
In response to a pattern of droughts in the Western US, the SWRCB can institute mandatory restrictions to achieve a total conservation target. This emergency response policy has evolved to allow agencies to self- certify that sufficient supply is available and thus modify their mandatory curtailments. Emergency conservation actions, however, do not reduce RPU’s need to conserve water in compliance with State Senate bill SBX7-7 (2009). Furthermore, conservation is the centerpiece of Riverside’s water supply plan, and the City Council can deem it appropriate to remain within a drought stage as needed. Such was the case during the previous Study, so the analysis and recommendations were based on the Water Conservation Stage 1 status.

Though wet winters have caused the State to lift mandatory usage curtailments, water usage remains below historical levels due to demand hardening from conservation and decreased irrigation demands during wet seasons. In May 2022, the SWRCB adopted a resolution to reduce water demand and improve water conservation, one component of that resolution was a requirement that urban water retailers implement level 2 of their water shortage contingency plans (WSCP). As of the writing of this report, the resolution has not been rescinded and RPU remains in stage 2 of its WSCP.

Further, the State is developing long-term conservation measures given the California Water Supply Strategy (August 2022) which includes, among other actions, “Freeing up 500,000 acre-feet of water through more efficient water use and conservation, helping make up for water lost due to climate change.” The rule making process is currently moving forward for "Making Conservation a California Way of Life".

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Under this initiative, urban retail water suppliers will have a water use objective that essentially sets an overall water budget for each retailer. The standards are set to be adopted later this year and will effectively establish a permanent efficiency target for RPU.

This Study conducted an analysis of RPU’s water demands for FY 2016 through FY 2022. Based upon that analysis and guidance from RPU, the demand projection used for the study includes a 10-percent reduction from the average demands in FY 2019 through FY 2022. The water demand analyses completed for this cost of service Study center on comparing usage on a fiscal year basis, since this method is in line with RPU’s accounting practices.

1.5 Capital Improvement Plan
RPU maintains a CIP that is updated regularly based on infrastructure and water supply needs and funding availability. The CIP is adopted as part of the City’s biennial budget process. The CIP included in the COSA holds its basis in the five-year CIP adopted with the 2022-2024 adopted budget but has been refined to reflect information that has become available since the budget’s adoption.

As analyzed, the CIP totals $183.7 million in projects over the five-year study period. This includes $119.6 million for transmission and distribution infrastructure including reservoirs and pumps stations, $16.9 million for wells and treatment, $19.2 million for technology projects, and $28.0 million for supply sustainability projects.

1.6 Existing Rate Structure
The existing water rates are based on industry accepted, cost of service structures. The rate program incorporates a number of different features, such as tiers and seasonal rates in order to account for the increase cost of water delivery during peak periods. The previous Study significantly condensed and reduced the rate structure, leaving the current rate program with three major rate categories (as eleven total rate codes) as shown in Table 1.

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Table 1 Existing Rate Class Descriptions
Class Code and Name Rate Structure Description

RESIDENTIAL
WA-1A Single Family
Residential (SFR)
• Three inclining rate tiers (CCF).
• Seasonal rate for Tier 3.
- Summer: June through October.
- Winter: November through May.

WA-1B Multi-Family
Residential (MFR)
• Two inclining rate tiers (CCF).
• Seasonal Rate for Tier 2.
- Summer: June through October.
- Winter: November through May.

COMMERCIAL/INDUSTRIAL
WA-6 Commercial and
Industrial
• Non-tiered seasonal rates using WA-1 seasons described above.

WA-7 Interruptible
Irrigation
• Flat rate structure for City irrigation.
• Users can be required to curtail or cease demands in times of drought or otherwise limited water supply.

WA-11 Landscape Irrigation • Non-tiered seasonal rates using WA-1 seasons described above.

OTHER
WA-4 Riverside Water
Company Irrigators
• Three inclining rate tiers (CCF).
• Open only to former customers of the Riverside Water
Company.
• Seasonal rate for Tier 3.
- Summer: June through October.
- Winter: November through May.

WA-2 Flat Rate –
Temporary Service
• Uniform rate for construction water and bulk permit
delivery.

WA-5
Fire Protection
Services & Fire
Hydrants
• Fixed monthly charges per connection for maintenance of valves and meters or hydrants.

WA-8 Greenbelt Irrigation
Service
• Properties in greenbelt able to take service from Gage Canal facilities.
• Monthly account charge plus volumetric Gage Canal pass- through charge.

WA-10 Recycled Water
Service
• Uniform rate structure for direct use of recycled water for irrigation.

WA-12 Agricultural Service
• Three inclining rate tiers (CCF).
• Residential agriculture meters.
- Charges based on WA-1A SFR rates.
- Residential customers have three inclining rate
tiers (CCF).
- Tier 1: 9 CCF plus agricultural allotment; Tier 2:
additional 26 CCF; Tier 3: excess of Tier 2.
• Without residence customers have two inclining rate tiers (CCF).
- Tier 1: agricultural allotment charged at WA-1A tier
1 rate; Tier 2: above allotment charged at WA-6
rate.
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Table 2 presents the current rates and monthly fixed charges for the majority of the customers in the City:

SFR (WA-1A), MFR (WA-1B), and Commercial/Industrial (WA-6).

Table 2 Existing (FY 2023) Rates and Charges by Customer Class Class Summer Rates
Jun to Oct
Winter Rates
Nov to May Meter Size Fixed Charge
WA-1A Single Family Residential 5/8” $26.00
First 9 CCF $1.30 $1.30 3/4“ 26.00
10 to 35 CCF 1.64 1.64 1” 41.26
All over 35 CCF 3.66 3.01 1.5” 79.08
WA-1B Multi-Family Residential 2” 124.64
First 7 CCF $1.30 $1.30 3” 231.03
All over 7 CCF 2.12 1.87 4” 382.97
WA-2 Flat Rate – Temp. Service 6” 838.59
All CCF $2.39 $2.39 8” 1,370.06
WA-4 Riverside Irrigators 10” 2,129.34
First 15 CCF $1.32 $1.32 12” 3,040.57
16 to 70 CCF 1.58 1.58
All over 70 CCF 3.17 2.46
WA-6 Commercial/Industrial
All CCF $1.84 $1.58
WA-7 & WA-10
Interruptible/Recycled
All CCF $1.57 $1.57
WA-11 Landscape
All CCF $2.14 $1.67

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Section 2

WATER USAGE AND SUPPL Y
RPU maintains a diversified portfolio of water sources and has invested in redundant supplies to create a highly localized and resilient system. To this end, RPU has expanded the recycled water distribution system and is working to connect additional customers. Further, RPU will be making additional investments in supply sustainability projects to help ensure the long-term availability of local supplies.

In addition to these localized supplies, RPU also can purchase water from Western Municipal Water District (WMWD). These supplemental, imported supplies are significantly more expensive than RPU's local supplies and supply is not guaranteed. Due to the development of local supply sources, RPU has not needed to purchase imported water over the past decade and does not anticipate any future purchases.

Water demands vary annually based on weather conditions, which dictate the amount of water needed for outdoor irrigation, and are influenced by other factors such as State mandated conservation measures and conservation messaging, and customer growth. The lowest demand year in recent years was FY 2016 with total sales of 21.9 million CCF. Over the past three fiscal years (FY 2019 to FY 2022) annual demands have averaged 26.0 million CCF.

2.1 Growth and Water Demand

2.1.1 Customer Account Growth
Expected customer growth over the projection period from FY 2022/23 through FY 2027/28 varies by customer class. A moderate level of account growth is expected for commercial customers (average of

0.72 percent per year) while industrial and residential customers have a lower growth projection (average of

0.23 and 0.28 percent per year, respectively). Table 3 presents the projected accounts for each customer class. These account growth expectations were applied to the number of accounts in each rate class indicated in RPU’s billing records to estimate the number of accounts by rate class each year.

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Table 3 Account Growth
Class FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Residential 0.23% 0.24% 0.24% 0.23% 0.23%
Commercial/Industrial 0.68% 0.69% 0.69% 0.69% 0.69%
Other 0.00% 0.00% 0.00% 0.00% 0.00%
Projected accounts:

SFR (WA-1A) 59,025 59,163 59,302 59,442 59,582
MFR (WA-1B) 1,133 1,136 1,138 1,141 1,144
Flat Rate – Temp. Service
(WA-2)
78 78 78 78 78
Riverside Irrigators (WA-4) 25 25 25 25 25
Commercial/Industrial
(WA-6)
5,305 5,342 5,378 5,415 5,452
Interruptible Irrigation
(WA-7)
553 557 561 565 569
Greenbelt (WA-8) 10 10 10 10 10
Recycled (WA-10) 15 15 15 15 15
Landscape (WA-11) 513 517 520 524 528
Agricultural (WA-12) 222 222 222 222 222
TOTAL ACCOUNTS 66,879 67,064 67,250 67,436 67,623
Notes:
(1) Totals may be off due to rounding.

2.1.2 Water Usage
Water sales are RPU’s primary source of water revenues. Consequently, it is critical to examine and analyze potential shifts in short- and long-term water demands. Carollo evaluated several years of billing data to examine historical water demand patterns and potential developing trends. RPU also maintains an internal demand forecast used for system and financial planning. This forecast accounts for these changing demand patterns, type of future development, and price elasticity.

Over the past three fiscal years (FY 2019 through FY 2022) RPU has delivered an annual average of

26.0 million CCF of water to its retail customers. This level of demand represents a rebound of approximately 19-percent compared to the lowest year of sales in recent history, FY 2016, which saw deliveries of only 21.9 million CCF. During FY 2016, California was amid a serious drought and had implemented statewide mandatory conservation measures.

Though emergency mandatory conservation targets have been lifted, RPU’s demands have not rebounded to pre-drought levels. Permanent conservation resulting from removal of irrigated landscapes or conversion to more efficient planting, use of more water efficient fixtures and appliances, and changes in customer behavior have all led to permanent conservation. Further, water scarcity remains an issue in California and the conservation messaging from the State and other entities continues.

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In August 2022, the State published the California Water Supply Strategy (August 2022). The strategy includes, among other actions, “Freeing up 500,000 acre-feet of water through more efficient water use and conservation, helping make up for water lost due to climate change.” Regardless of any mandatory actions imposed on RPU, the messaging and outreach associated with the strategy is likely to lead to further conservation by RPU customers.

At the direction of RPU, Carollo applied a ten percent reduction to a three-year averaged demand (FY 2019 through 2022) to develop the demand projection that is used as the basis for calculating the proposed rate plan. Monthly water usage data for the past three fiscal years was analyzed to develop a reasonable projection of water demands for the extent of this five-year Study (FY 2022/23 through FY 2027/28). The projected ten percent decreases in consumption were applied to each rate class and tier (where applicable).

Table 4 below shows the projected sales that serve as the basis of the cost of service analysis.

Table 4 Projected Sales by Class (thousand CCF)
Class FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 SFR (WA-1A) 13,476 13,568 13,663 13,760 13,861
MFR (WA-1B) 369 371 374 376 379
Flat Rate – Temp. Service
(WA-2) 44 44 44 44 44
Riverside Irrigators (WA-4) 9 9 9 9 9
Commercial/Industrial (WA-6) 7,358 7,464 7,573 7,683 7,795 Interruptible Irrigation &
Recycled (WA-7 & WA-10) 807 818 830 842 854
Landscape (WA-11) 759 770 781 793 804
Agricultural (WA-12) 523 523 523 523 523
TOTAL CCF 23,345 23,568 23,797 24,030 24,269
Notes:
(2) 1 unit of water = 1 CCF (hundred cubic feet) = 748 gallons. (3) Totals may be off due to rounding.

Figure 6, on the next page, shows these projected sales by major rate category (Residential, Commercial/Industrial, and Other) over the duration of this rate setting period. Landscape irrigation and interruptible City irrigation demands are included in the Commercial/Industrial category. Flat Rate – Temp.

Service, Riverside Water Company Irrigators, Recycled Water, and Agricultural demands are included in the Other category.

Figure 7, on the next page, shows the percent of annual consumption from each customer rate code for the projected FY 2023/24. Residential accounts from WA-1 are the primary users of water making up roughly 60 percent of annual water usage. The remaining 40 percent is split between commercial, industrial, irrigation, and other accounts. Riverside Water Company Irrigators (WA-4) account for less than 0.1-percent of total consumption.

2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 14
Figure 6 Projected Water Sales

Figure 7 Percent of Projected Consumption per Rate Code (FY 2023/24)

SFR (WA-1A)

57.7%
MFR (WA-1B)

1.6%
Flat Rate (WA-2)

0.2%
Riverside Water Company
Irrigators (WA-4)

0.0%
Commercial/Industrial (WA-6)

31.5% Interruptible Irrigation
& Recycled (WA-7 &
WA-10)

3.5%
Landscape Irrigation

3.3%
Agricultural Service

2.2%
2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 15
Section 3

REVENUE REQUIREMENTS

3.1 Introduction
The revenue requirement analysis is a test of a utility’s fiscal health, which evaluates the adequacy of current revenues and establishes rate revenue needs that are used to develop RPU's rate plan. The analysis accounts for RPU’s revenues, expenses, debt, reserve policies, and fiscal policies. If system revenues and reserve balances are insufficient in a given fiscal year, the revenue requirement analysis calculates the needed additional cash flows to meet RPU's funding goals.

The revenue requirement forecast is derived from RPU’s financial pro forma, including major cost components: production costs, personnel costs, other operations and maintenance (O&M), debt service requirements; and rate funded capital outlays. Policy requirements are also considered in RPU’s financial pro forma and used to derive the revenue requirement. The revenue requirement forecast of the pro forma incorporates RPU’s FY 2022/23 and 23/34 adopted budgets with projected adjustments based on actual past performance to projected costs thereafter. Additionally, applicable costs savings have been included based on actual costs in prior years. The relevant financial information for this analysis was provided by RPU including: current reserve ending balances, budgeted capital improvement plan expenditures, other future expenses, other future revenues, and other miscellaneous financial information.

The revenue requirement analysis is comprised of two tests:
• The cash flow sufficiency test compares projected system revenues to the cost to operate, maintain, and improve the water system. This test evaluates whether revenues meet expenses; when they do not, this test calculates the amount of rate revenue that must be raised to fund the projected expenditures and to meet RPU’s reserve policy. • The debt service coverage test determines if there is sufficient cash flow to meet utility bond issuance stipulations which ensure that the agency can fund annual operating expenses while meeting its debt obligations, as indicated by a debt service coverage ratio (DSCR) which is a percent of issued debt. If cash flow falls below this ratio, this test calculates the additional revenue required.

The revenue requirement analysis determines if RPU must increase system revenues to meet its ongoing obligations. If revenues are found to be insufficient to meet ongoing expenses (cash flow test) and/or debt obligation (debt service coverage test), revenues must be increased to achieve the higher of the two needs.

The cash-flow sufficiency test compares projected cash requirements in each given year necessary to operate, maintain, and improve the utility systems. Cash requirements include O&M expenses, rate-funded capital expenditures, debt service payments, and policy-driven additions to reserves. RPU must maintain certain reserve targets for working capital, rate stabilization, capital emergency, capital system improvements, and debt service as outlined in the reserve policy.

The debt service coverage test measures the ability of the water utility to meet its debt obligations on an annual basis. When a municipality issues a bond, the bond Official Statement defines the financial obligations that must be met in order to remain in legal compliance. As part of the bond covenant as set forth in the Official Statement, the utility must collect a defined amount of annual revenue to illustrate that it has the financial capacity to repay bondholders.
2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 16
More specifically, annual net revenues, in excess of operations and maintenance, must equal to a minimum of 1.25 times the annual debt service payments for senior lien debt. However, as is the case for RPU’s water utility that has maintained a AA+ rating from Standard and Poor’s and Fitch Ratings, this coverage factor can be set at a higher level for planning purposes in order to assist in maintain or achieve a higher bond rating.

For the purposes of this analysis, the pro forma targets a coverage factor of 2.00 times while maintaining a target minimum coverage factor of 1.75 times for financial planning purposes.

The pro forma recommendations presented within this report were developed by RPU staff based on best known information as of the writing of this report.

3.2 Ongoing Costs and Offsetting Revenues

3.2.1 Operating and Maintenance Costs
O&M costs are expenditures that RPU incurs in the day-to-day operations of its water system - e.g., employee salaries and benefits, fuel, chemicals, power, supplies, and debt service. Other costs in the operating budget include indirect costs for services provided to RPU by other City departments or funds. The water O&M costs projected in the pro forma are the backbone of the revenue requirements analysis.

Table 5 summarizes the projected water O&M costs for FY 2023/24 through FY 2027/28.

Production Costs
Production costs are variable O&M costs incurred by RPU to provide water service. Specific items included in this category are electricity, gas, other utilities, and water production charges associated with each of RPU’s groundwater sources.

Electricity costs account for the majority of production costs. In an effort to control production costs, RPU constructed solar power generating facilities used to power wells, pumps, and other equipment at several of the production sites.

Personnel Costs
Personnel costs include all of the direct and overhead costs associated with RPU staff. These costs are considered to be fixed costs, as staffing requirements generally do not change based on fluctuations in water demands.

Other O&M Costs
Other O&M costs include materials, supplies, and services, as well as services from other funds. Some of these costs are offset by services that RPU provides to other funds. In all, Other O&M costs are generally not impacted by water demands and are therefore considered to be fixed.

Additional O&M for CIP and Advanced Technology
Several of the CIP projects will be accompanied by annual O&M costs as projects are completed or programs are initiated. Estimated O&M costs associated with CIP projects were provided by RPU engineering staff and those associated with the Advanced Technology program were provided using estimated project implementation costs from the Strategic Technology Plan. Annual costs for this category are expected to begin at $1.8 million in FY 2025 to $2.6 million in FY 2028.

2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 17
Non-rate Revenue Support for Agricultural Rates and Low-Income Assistance After the completion of the previous COSA, the City convened an Agricultural Rates Task Force to develop a rate structure to support and maintain agricultural activities within RPU’s service area. The WA-12 Agricultural Water Service Rates assigns an agricultural water allotment to each participating user based on the type and amount of irrigated area or acreage of the qualifying crops that they grow or other agricultural activities such as pasture for qualifying livestock. All water usage within the agricultural allotment is billed at the tier 1 rate similar to single family residential (WA-1A). Any use above the allotment is billed at the otherwise applicable rate, WA-1A for users with residences or WA-6 for users without residences.

The difference in the amount of revenues billed under the agricultural water service rates and the otherwise applicable rates is supported using non-rate revenues. Per Council Resolution 23499, the maximum that can be supported with non-rate revenues is $684,000 per year and once that threshold is reached, the rate class will be closed unless additional sources of non-rate revenues to support the program are identified.

The City’s Sharing Households Assist Riverside’s Energy program (SHARE) provides water bill assistance to qualifying low-income customers. Customers enrolled in the program currently receive an incentive for water payment assistance of $3.25 per month, not to exceed $39.00 per customer over a 12-month period.

The annual budget for the program is $150,000 and non-rate revenues are assigned to cover the costs. The costs for the program are included in the Other Operating and Maintenance Costs line in Table 5.

General Fund Transfer
The Riverside City Charter requires RPU to annually transfer to the general fund an amount not to exceed

11.5 percent of the previous year’s gross operating revenues (the Water GFT). Riverside voters reaffirmed the Water GFT in June of 2013. Because the Water GFT is based upon revenues, the annual amount fluctuates with water demands.

Table 5 Projected Water O&M and other Ongoing Expenditures (thousand $) Expenditures FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Production Costs $7,808 $7,964 $8,123 $8,286 $8,602 Personnel Costs 18,465 18,811 19,052 19,193 19,596 Other Operating and Maintenance
Costs
26,071 26,377 26,629 27,155 27,693
Additional O&M for CIP and
Advanced Tech
- 1,756 2,199 2,363 2,817
Subtotal: Ongoing Operating
Expenses
$52,344 $54,908 $56,003 $56,997 $58,709
General Fund Transfer 8,114 8,583 9,192 9,846 10,563 Use of Non-Rate Revenue for WA-12 684 684 684 684 684 TOTAL ONGOING EXPENDITURES $61,142 $64,175 $65,879 $67,527 $69,956 Notes:
(1) Totals may be off due to rounding.

3.3 Debt Service
In addition to O&M expenditures, RPU holds several outstanding debt obligations that provided funding for past capital projects and acquisitions. Table 6 shows RPU’s outstanding water debt obligations and associated debt service for each year of the projection period. Additional debt that will be required to fund CIP expenditures is discussed in Section 3.3 of this report. 2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 18
Table 6 Outstanding Water Debt Obligations and Debt Service (thousand $) Debt Issued FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 2009B ($67.790M FIXED
BABs) - Net of BABs(1) $5,221 $5,215 $5,209 $5,199 $5,189 2011A ($59.0M VARIABLE) 789 789 789 789 789
2019 A Refunding Water
Revenue Bonds 9,379 9,365 9,345 9,328 9,314
New Debt Service(2) 4,579 4,496 6,698 10,277 10,193
Subtotal: Bond Payments $19,968 $19,865 $22,042 $25,593 $25,486 Advance from City –
Pension Obligation 2,282 2,420 2,429 2,307 1,646
Capital Lease 835 835 835 835 575
Other Debt Costs(3) 241 245 247 250 253

TOTAL ANNUAL DEBT
SERVICE $23,325 $23,364 $25,553 $28,984 $27,960
Notes:
(1) Net of Treasury credit for Build America Bonds (BABs). (2) Debt service associated with new bonds to be issued starting in 2023, discussed further in the next section. (3) Fiscal charges and amortization.
(4) Totals may be off due to rounding.

3.4 Capital Improvement Plan
Over the past several years, RPU has undertaken an effort to develop a detailed CIP. Beginning with the Integrated Water Management Plan in 2013, RPU identified necessary improvements related to rehabilitation and replacement of existing infrastructure, enhancements to existing water supply, development of new sources of supply, expansion of the recycled water system, and rollout of new technologies. RPU staff has continued to refine the proposed projects, expenditures, and implementation schedule.

The total cost of the CIP for FY 2023/24 through FY 2027/28, with capital costs assumed to escalate at

2.85-percent annually, is $184 million. Figure 8 shows a full breakdown of the costs by project type. 2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 19
Figure 8 Five Year CIP Costs

3.4.1 CIP Funding
Completion of the CIP will require RPU to utilize funding from several different sources. The pro forma has been developed to strike a balance between debt financing, use of reserves, and rate funding in order to minimize impacts to ratepayers while promoting financial sustainability. Table 7 shows the funding from each source by fiscal year of the rate projection period as well as the total funding from each source.

Table 7 CIP Funding by Source (millions $)
Funding Source FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Five-Year
Total
Bond Financing $20.03 $18.83 $34.36 $41.28 $28.94 $143.43 Use of Rates and Reserves 8.90 9.74 3.46 6.41 6.74 35.26 Developer Contributions 1.00 1.00 1.00 1.00 1.00 5.00

TOTAL ANNUAL CIP

FUNDING
$29.93 $29.57 $38.82 $48.69 $36.68 $183.69
Notes:
(1) Totals may be off due to rounding.

3.4.2 Projected Debt Issuances
As shown in Table 7, RPU anticipates issuing additional debt to fund the capital improvement program over the next 5 years. Based on the pro forma developed for this study, RPU will require a total of $148.0 million in financing proceeds to fund capital projects from FY 2022/23 through FY 2027/28 with $143.4 million to be used within the five-year study period (FY 2023/24 through FY 2027/28).

Debt service associated with projected bond issuances has been estimated based on typical financing assumptions and incorporated into the cost of service analysis. Bond issuances are projected to fund capital projects for a three-year period.
$15.55
$1.30
$36.14
$74.32
$7.87
$1.29
$19.23
$28.00
$- $10 $20 $30 $40 $50 $60 $70 $80
Well Projects
Treatment Plants
Transmission Pipeline Projects
Distribution Pipeline Projects
Distribution Facility Projects
Reservoir Projects
Technology Projects
Supply Sustainability
2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 20
The projected bond issuance in FY 2026 is in anticipation of the continuation of the 5-year plan and will fund projected capital projects over a 3-year period from FY 2026 through FY 2028. Table 8 shows the FY 2023 bond issuance (issued November 2022) and anticipated FY 2026 bond issuance and associated debt service.

Table 8 Projected Bond and Short-Term Issuances (thousand $) Fiscal Year of Issuance Issuance Amount Annual Debt Service 2023 $62,440 $3,611
2026 91,425 5,947

3.5 Reserve Requirements
RPU has a robust reserve policy, which is designed to promote fiscal sustainability, minimize borrowing costs, and providing a source of emergency funds to rapidly respond to market volatility, emergencies, demand reductions, or regulatory changes. The reserve policy guidelines were adopted by City Council on March 22, 2016 and later incorporated into the fiscal policy which was adopted by City Council on July 26, 2016. The policy was subsequently updated in July 2018 and September 2021.

The overall undesignated reserve target is comprised of five risk categories that each have a target based on specific metrics. Table 9 provides a summary of the metrics that are used to calculate the undesignated target minimum and maximum reserve levels for each risk category.

Table 9 Undesignated Reserve Level Metrics
Component and Description Minimum Target Maximum Level
Operating (Working Capital): maintain sufficient resources to pay budgeted operating and maintenance expenses recognizing the timing differences between payment of expenditures and receipt of revenues.
60 Days of
Operating
Expenses
90 Days of
Operating
Expenses
Rate Stabilization: mitigates rate shock due to temporary and transitional regulatory changes, loss of a major resource, sharp demand reduction, or market volatility.
7 Percent of
Operating
Revenues
15 Percent of
Operating
Revenues
Emergency Capital: provides funds to maintain ability to repair system after an emergency or natural disaster such as a flood, earthquake, or major storm.
1 Percent of
Depreciable
Assets
2 Percent of
Depreciable
Assets
System Improvements Capital: provide funds to maintain continuity of construction over fiscal years to be funded by bond proceeds or other resources.
6 Months of 3-
year average
approved CIP(1)
9 Months of 3-
year average
approved CIP(1)
Debt Service: maintain ability to make debt service payments in an extreme event that may impact RPU’s ability to provide services, thus impacting revenues at a time critical infrastructure repairs are needed to restore systems. The Debt Service Reserve is intended to prevent an event where RPU would be unable to pay its debt service obligations during such emergencies, or extreme market disruptions.

Maximum
Annual Debt
Service in
Upcoming Fiscal
Year
Maximum
Annual Debt
Service in
Upcoming Fiscal
Year
Notes:
(1) Three-year average CIP determined using most recent year’s actual costs, the current year budget, and the next year’s forecasted budget.

Since its initial adoption, the reserve policy has been updated to include a line of credit (LOC) as available reserves to meet unrestricted undesignated reserve targets. The water utility’s portion of RPU’s current line of credit is $25 million and is anticipated to increase to $28 million in FY 2026. 2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 21
The reserve levels vary in each year based on the expenditures or revenues used to calculate each component. Table 10 shows the projected target minimum and maximum reserve levels for each year of the five-year rate projection.

Table 10 Projected Undesignated Min & Max Target Reserve Calculations (millions $) Component Target FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Working Capital Min $8.60 $9.03 $9.21 $9.37 $9.65
Max 12.91 13.54 13.81 14.05 14.48

Rate Stabilization Min $5.93 $6.38 $6.81 $7.27 $7.76 Max 12.71 13.68 14.59 15.59 16.62

Capital - Emergency Min $7.96 $8.26 $8.65 $9.15 $9.52 Max 15.92 16.52 17.31 18.30 19.04

Capital - System
Improvements Min $14.05 $14.85 $16.03 $18.77 $19.45 Max 21.08 22.27 24.05 28.15 29.18

Debt Service (Max
Annual Debt Service
in Upcoming FY)
Min $14.41 $15.67 $18.31 $18.48 $19.85
Max 14.41 15.67 18.31 18.48 19.85

Total Min $50.97 $54.18 $59.01 $63.04 $66.24
Max 77.03 81.67 88.07 94.57 99.18
Notes:
(1) Totals may be off due to rounding.

3.6 Offsetting Revenues
The rate revenue needs are defined as the amount of revenues that must be recovered through water rates to cover expenditures, less any offsetting revenues. Offsetting revenues include water conveyance revenue, wholesale water sales revenues, interest income, settlement revenues, interest earnings, lease revenues, and other operating and non-operating revenues. Table 11 identifies the projected offsetting revenues for the upcoming five years.

2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 22
Table 11 Projected Offsetting Revenues (millions $)
Offsetting Revenues FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Interest income $1.77 $1.63 $2.23 $2.64 $2.03
Miscellaneous income 3.06 3.10 3.08 3.13 3.17
Water Conveyance
Revenues

3.51 3.64 3.77 3.92 4.06
Settlement reimb -
Lockheed/Shell

2.41 2.53 2.66 2.79 2.79
Wholesale Sales 2.49 3.24 3.36 3.48 3.62
Outside City Surcharge 2.07 2.13 2.19 2.26 2.32 Fire Service Charges 0.62 0.62 0.62 0.62 0.62

TOTAL OFFSETTING

REVENUES
$15.94 $16.90 $17.91 $18.84 $18.62
Notes:
(1) Totals may be off due to rounding.

RPU can take advantage of surplus local water supplies and its production and transmission infrastructure to earn additional revenues from outside agencies to help offset rate increases for RPU retail customers. Water conveyance revenues reflect a wheeling agreement though which RPU conveys water owned by WMWD from the groundwater basin to WMWD and is compensated to do so. Wholesale sales to local water agencies including WMWD and Norco allow RPU to generate revenues through the production and sale of surplus water supplies.

3.7 Revenue Requirement Forecast
Overall, RPU must raise rate revenues in order to meet its debt coverage and reserve targets while continuing to fund the CIP. System average rate revenue increases at 6.5-percent per year will be required in each year of the study period. Table 12 presents a summary financial forecast with the revenues, expenditures, and overall rate revenue increases for the forecast period beginning in FY 2023/24 through FY 2027/28.

2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 23
Table 12 Results of Revenue Requirement Analysis (millions $) Component FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Revenues
Rate Revenue before annual rate and demand
increase1 $69.54 $74.20 $79.57 $85.33 $91.52
Offsetting Revenues 15.94 16.90 17.91 18.84 18.62 TOTAL REVENUES BEFORE INCREASE $85.48 $91.10 $97.48 $104.17 $110.14 Expenditures
Production Costs $7.81 $7.96 $8.12 $8.29 $8.60
Personnel Costs 18.47 18.81 19.05 19.19 19.60
Other Operating and Maintenance Costs 26.07 26.38 26.63 27.16 27.69 Additional O&M for CIP and Advanced Tech - 1.76 2.20 2.36 2.82 Debt Service Requirements 23.33 23.36 25.55 28.98 27.96 General Fund Transfer 8.11 8.58 9.19 9.85 10.56
Capital Outlay Financed by Rates 9.40 10.24 3.96 6.92 7.24 Use of Non-Rate Revenue for WA-12 0.68 0.68 0.68 0.68 0.68 TOTAL EXPENDITURES $93.87 $97.78 $95.39 $103.43 $105.16

Allocation to (Use of) Reserves Prior to
Increases
$(8.39) $(6.68) $2.09 $0.74 $4.98

Demand and Growth Increase 0.00% 0.94% 0.96% 0.97% 0.98% Rate Revenue Increase 6.50% 6.50% 6.50% 6.50% 6.50%
Month of Rate Increase July July July July July
Revenues from Demand and Rate Increases $4.72 $5.43 $5.83 $6.25 $6.63 TOTAL REVENUES $90.19 $96.53 $103.31 $110.42 $116.77

Allocation to (Use of) Reserves After
Increases $(3.67) $(1.25) $7.91 $6.99 $11.61

Unrestricted Undesignated Reserves $31.50 $28.41 $33.24 $38.33 $47.73 Line of Credit 25.00 25.00 28.00 28.00 28.00
Unrestricted Undesignated Reserves w/ LOC $56.50 $53.41 $61.24 $66.33 $75.73

Debt Service Coverage Ratio2 1.69x 1.86x 1.92x 1.91x 2.13x Notes:
(1) Projected revenues prior to each fiscal year’s demand and rate increases, includes the impact of increases from previous years. (2) Net of BABs treasury credit.
(3) Totals may be off due to rounding.
2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 24
The amount of revenue to be collected from user rates is defined by the total revenue requirements less any offsetting revenues. Table 13 presents the revenue required from user rates that provides the basis for the cost of service analysis and rate design.

Table 13 Required Rate Revenue (millions $)
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Total Expenditures $93.87 $97.78 $95.39 $103.43 $105.16 Allocation to (Use of)
Reserves After Increases
(3.67) (1.25) 7.91 6.99 11.61
Less Offsetting Revenues: (15.94) (16.90) (17.91) (18.84) (18.62) Revenue Requirements for
Rate Design
$74.26 $79.63 $85.39 $91.58 $98.15
Notes:
(1) Totals may be off due to rounding.

2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 25
Section 4

WATER COST OF SERVICE ANAL YSIS
With RPU's water utility's revenue requirements outlined—including needed rate increases—the next step is to link each cost item with a specific service to the system that it supports. This is commonly referred to as the cost of service analysis, or the functional cost allocation, because it connects each cost of the utility with a functional category or purpose that it funds. For instance, expenses related to the billing system are allocated under the umbrella of the customer service function, while costs for operating the distribution system are allocated to the distribution function.

The costs incurred are generally responsive to the specific service requirements or cost drivers imposed on the system and its water resources by its customers. The principal service requirements that drive costs include the annual volume of water consumed, the peak water demands incurred, and the number of customers or meter equivalents in the system. Accordingly, these service requirements are the basis for the selection of the categories utilized in the functional allocation process.

The AWWA M1 Manual outlines the two most widely used methods for allocation of costs— the Base-Extra Capacity Method and the Commodity Demand Method. Both recognize that the cost of serving a customer depends not only on the total volume of water used, but also on the rate of use or peak-demand requirements.

The Base-Extra Capacity Method recognizes that cost of service “depends not only on the total volume of water used, but also on the rate of use, or peak demand requirements.” Costs incurred by RPU are not incurred uniformly, or simply based on the total volume of water used. The cost of service changes based on when water is used. This methodology accounts for this by including an extra capacity category to recover costs associated with capacity that is not used consistently and that impacts operating costs and capital asset related costs to accommodate peak flows.

The proposed rates presented within this report are developed using the Base-Extra Capacity Method. This approach allocates costs among: (1) Base to provide baseline water service or average day demand; (2) Extra Capacity to provide peak demand service, often split into maximum day and maximum hour components; and (3) Customer to provide services that do not vary with water usage, such as customer service and billing.

As noted in the AWWA M1 Manual, in detailed rate studies, such as the one performed for this Study, some of these elements might be broken down further into two or more subcomponents.

Based on the City's expenditures and system characteristics, the Customer (or fixed monthly) component was separated into two subcomponents: (1) Customer (accounts) and (2) Capacity (meter equivalents). This bifurcation of the Customer component is done to better identify and allocate costs that vary based on capacity needs (as defined by the size of the meter) from those that should be equally shared by each customer account. Similarly, variable rate component costs were split into base, max day, max hour, supply sustainability and/or the four sources of supply. These are designed to better distinguish that not all demand (and peaking) is equal. Different facilities, such as distribution and storage facilities, and the O&M costs associated with those facilities, are designed to meet the peaking demands of customers. Therefore, these extra capacity costs allocated across base, max day, and max hour include the O&M and capital costs associated with meeting peak customer demand. Further, costs to produce water from each or RPU’s supply sources vary, and the costs for most expensive sources of supply can be attributed to the need to serve peak demand.
2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 26

4.1 Functional Cost Allocation
The objective of this cost of service Study is to develop rate structures that proportionally recover costs from RPU's customers. To do so, the Base-Extra Capacity Method uses a two-part allocation process. First, the functional cost allocation assigns the revenue requirement for the test year by major system function. Then each functional category is allocated to specific rate components, which can easily be assigned to customer classes and rates. RPU groups its operating costs in functional divisions based on the activities that it undertakes to operate and maintain the water system. These functional groups include:

Pumping: RPU operates 41 booster pump stations to move water throughout the system and maintain service pressure. This category includes the capital, engineering, and debt service costs related to RPU’s pumping infrastructure. Operating and maintenance costs from the Water Production and Operations division related to pumping are identified as distribution costs based on RPU’s Cost of Water Analysis.

Treatment: The water system includes six treatment facilities used to treat groundwater and thus maximize the use of RPU’s local resources. This category includes the capital, engineering, and debt service costs related to RPU’s treatment infrastructure. Operating and maintenance costs from the Water Production and Operations division related to treatment are identified for each supply source based on RPU’s Cost of Water Analysis and therefore allocated to Source of Supply.

Storage: RPU’s 16 storage facilities are used to maintain water availability and pressure throughout the system. Additionally, the Linden-Evans reservoir is used to blend water from each of RPU’s sources to maintain consistent water quality. This category includes the capital, engineering, and debt service costs related to RPU’s storage infrastructure. Operating and maintenance costs from the Water Production and Operations division related to storage are identified as distribution costs based on RPU’s Cost of Water Analysis and therefore allocated to Distribution.

Distribution: RPU’s distribution system (after the Linden-Evans reservoir) is used to serve water to each of the system’s 66,700 customer connections (projected accounts for FY 2023/24). This category includes the costs of operating and maintaining RPU’s water distribution infrastructure as well as capital, engineering, and debt service costs related to the distribution system.

Transmission: The transmission system consists of pipeline infrastructure used to convey water from the supply sources to the Linden-Evans reservoir. This category includes the capital, engineering, and debt service costs related to RPU’s transmission infrastructure. Operating and maintenance costs from the Water Production and Operations division related to transmission are identified for each supply source based on RPU’s Cost of Water Analysis and therefore allocated to Source of Supply.

Source of Supply: RPU owns and operates infrastructure including wells, transmission lines, treatment, and ancillary equipment to produce groundwater from five basins. Currently, potable water is supplied from four of the basins. This category includes the costs of operating and maintaining RPU’s water production facilities as well as capital, engineering, and debt service costs related to water supply facilities excluding the costs of supply sustainability projects.

General: This category includes costs related to RPU’s service provision, such as buildings and office supplies, that provide a general benefit to PRU and cannot be assigned to a single functional group.

Customer: This category includes the costs of customer service and billing activities.

Meter Services: This category includes the costs of reading, installing, and maintaining water meters.

Admin: This category includes the costs of administration, management, and technical support for the operation of the water Utility.
2023 WATER COST OF SERVICE AND RATE STUDY | CITY OF RIVERSIDE FINAL | MAY 2023 | 27
Fixed Maintenance: This category includes the costs of anticipated and regular maintenance of RPU’s facilities and equipment, primarily motor pool costs for Water Field Operations and maintenance and repair of buildings and improvements.

To perform the functional allocation, the cost of service analysis combines information from the pro forma, RPU’s detailed operating budget, historical billing data, and additional operational and system information provided by RPU. The allocation to each functional component was calculated based on the detailed budget and cost information and applied to the five-year average revenue requirements calculated in the pro forma for the study period, FY 2023/24 through FY 2027/28. Table 14 and Table 15 present a summary of the functional allocation of O&M by cost center and Debt Service by bond, respectively. A detailed allocation of O&M cost centers, debt service, and the conservation program to functional groups can be found in the Appendix.

The functionalization and allocation of O&M is performed using detailed expenditures from RPU’s budget projections from the City’s Questica budget system. The pro forma, that serves as the basis of the revenue requirements, utilizes those projections but applies minor adjustments to the summarized projections based on current conditions and other factors that may impact future costs. For example, supplemental personnel costs are added based on staffing plans that are not included in Questica. Due to the adjustments, the detailed O&M that is used for the functionalization and allocation differs slightly from the total O&M costs in the pro forma, however the adjustments do not have any material impact on the percentage allocations.

To develop allocated rate revenue requirements, the allocation percentages determined based on the detailed O&M are applied to the revenue requirements from the pro forma.

FINAL | MAY 2023 | 28
Table 14 Allocation Summary of O&M by Cost Center
O&M Cost Center
5-Yr Avg Rev. Req.
($ million)
Pumping
Treatment
Storage
Distribution
Transmission
Source of Supply
Supply
Sustainability
General
Customer
Meter Service
Admin
Fixed Maintenance
As All Others
Water Production &
Operations
$25.58 $7.73 $17.85

30.2% 69.8%
Water Field Operations $17.09 $6.30 $0.21 $1.30 $0.43 $1.83 $3.13 $3.90

36.9% 1.2% 7.6% 2.5% 10.7% 18.3% 22.8%
Water Engineering 10.48 0.21 $0.04 $0.04 $3.15 $0.98 $1.94 $0.91 $0.53 $0.79 $1.90

2.0% 0.3% 0.3% 30.0% 9.4% 18.5% 8.7% 5.0% 7.6% 18.1% Water-Office of Ops
Technology
$1.03 $0.25 $0.78

24.0% 76.0%
TOTAL ALLOCATED $ 54.18 $0.21 $0.04 $0.04 $17.18 $0.98 $19.79 $0.21 $2.21 $0.95 $2.62 $3.38 $6.58

TOTAL WITH AS ALL
OTHER
REALLOCATED ($)
$54.18 $0.24 $0.04 $0.04 $19.56 $1.12 $22.53 - $0.23 $2.52 $1.08 $2.98 $3.85 100.0% 0.4% 0.1% 0.1% 36.1% 2.1% 41.6% 0.0% 0.4% 4.6% 2.0% 5.5% 7.1% Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 29
Table 15 Allocation Summary of Debt Service

5-Yr Avg Rev. Req.
($ million)
Pumping
Treatment
Storage
Distribution
Transmission
Source of Supply
Supply
Sustainability
General
Customer
Meter Services
Admin
Fixed Maintenance
2009B ISSUE
($67.790M FIXED
BABs) - Net of BABs
$5.21 $0.05 $0.04 $2.94 $0.71 $1.47

1.0% 0.7%

56.4% 13.6% 28.3%

2011A ISSUE
($59.0M VARIABLE)
$0.79 $0.06 $0.02 $0.12 $0.34 $0.16 $0.08 $0.01

7.1% 3.1% 15.4% 43.0% 20.5% 10.3%

0.7%
2019 A Refunding
Water Revenue
Bonds
$9.35 $0.44 $0.66 $0.31 $4.05 $1.66 $2.22

4.7% 7.1% 3.3% 43.3% 17.8% 23.8%

New Debt Service -
Bonds
$7.25 $0.30 $0.05 $0.05 $2.81 $1.36 $0.59 $1.37 $0.73

4.1% 0.7% 0.7% 38.7% 18.8% 8.1% 18.8%

10.1%
Advance from City -
Pension Obligations
$2.22 $0.67 $1.55

30.2%

69.8%

Capital Lease
$0.78 $0.78
100.0%

Other Interest
Expenses
$0.25 $0.25
100.0%

TOTAL
$25.84 $0.85 $0.77 $0.48 $10.80 $3.90 $5.91 $1.37 $1.03 - $0.74 - - 100.0% 3.3% 3.0% 1.9% 41.8% 15.1% 22.9% 5.3% 4.0% 0.0% 2.8% 0.0% 0.0% Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 30

4.1.1 Water Production and Operations
The first set of costs to allocate amongst the functional cost components is the Water Production and Operations costs. This allocation defines how RPU's water supply costs, which include the production, purchasing, storage, and distribution of water, are distributed among each of RPU’s sources of supply.

Costs within the Water Production and Operations division include the costs to produce, treat, and blend water from each groundwater source as well as distribution costs after Linden-Evans reservoir. As a component of this Study, RPU staff reviewed and reaffirmed the methodology and assumptions used to allocate costs to each supply source and to distribution after Linden-Evans reservoir.

For this COSA study, supply allocations and associated cost allocations have been developed based on an analysis of supply and cost data for FY 2019/20 through FY 2021/22. This methodology provides an accurate representation of the total supply available to RPU retail customers, including both utilized and resilient supply. The allocations developed are then applied to the projected costs for each year of the study period in the cost of service analysis.

4.1.1.1 Water Supply
All potable water produced by RPU is pumped from RPU's five groundwater basins and is treated at one of six treatment facilities, then blended and stored in the Linden-Evans Reservoir. Over the past decade, this system has provided all of RPU's potable water needs. RPU can also take imported water from the Metropolitan Water District along with these local supplies, however imported supplies have not been needed in recent years resulting in a significant portion of RPU’s costs being related to the production and distribution of water from its groundwater resources. An allocation has been developed for the “Water Production and Operations division of RPU’s operating budget to allocate those costs.

4.1.1.2 Available Supply
RPU pumps groundwater from several groundwater basins that underlie or are nearby the City. The sources are grouped into four distinct supply sources referred to as Gage, Riverside North and South, Waterman, and Flume. The amount of water available from each supply is governed by the adjudicated pumping rights held by RPU. The average production levels by source for FY 2020/21 and FY 2021/22 serve as the basis of supply availability for the cost of service analysis. Because the available supply should reflect the total amount of water that RPU could access in a normal year, FY 2019/20 was excluded from the determination of available supplies. Production in that year was abnormally low due to the impact of the COVID-19 pandemic on water sales as well as higher than average precipitation.

Based on the projected levels of demand, RPU's existing water supplies will continue to meet the demands of RPU's projected customer base. Table 16 shows the total production from each source for FY 2019/2020 through FY 2021/22, water used for purposes other than RPU retail, water losses, and the amount available for RPU retail customers.

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Table 16 Water Production by Source
Supply 1
Gage
Supply 2
Riverside
South/North
Supply 3
Waterman
Supply 4
Flume Total
Potable Production (AF)
Above Linden-
Evans
FY 2019/20 20,786 17,421 26,321 6,424 70,952
FY 2020/21 22,032 16,577 32,533 5,472 76,613
FY 2021/22 20,615 15,585 31,189 5,472 72,861

Water Loss Above Linden-Evans (AF)
FY 2019/20 (300) (251) (379) (93) (1,023)
FY 2020/21 - - - - -
FY 2021/22 - - - - -

Potable Wheeled to WMWD (AF)
FY 2019/20 - - (5,102) - (5,102)
FY 2020/21 - - (4,404) - (4,404)
FY 2021/22 - - (4,910) - (4,910)

Wholesale to WMWD and NORCO (AF)
FY 2019/20 (674) (565) (854) (208) -
FY 2020/21 (1,037) (781) (1,532) (258) -
FY 2021/22 (238) (180) (360) (63) -

Water Loss Below Linden-Evans (AF) Below Linden-
Evans
FY 2019/20 (1,824) (1,529) (2,310) (564) (6,228)
FY 2020/21 (1,897) (1,428) (2,802) (471) (6,598)
FY 2021/22 (1,873) (1,416) (2,834) (497) (6,620)

Available For Potable Use (Estimated) (AF)
FY 2019/20 17,988 15,076 17,676 5,559 56,299
FY 2020/21 19,097 14,369 23,796 4,743 62,004
FY 2021/22 18,504 13,989 23,086 4,912 60,490

Determination of Available Supply for Potable Retail Based on FY 2020/21 and FY 2021/22 Average (AF)
(FY 2020/21 and 2021/22) 18,801 14,179 23,441 4,827 61,247 Average (CCF)
(FY 2020/21 and 2021/22) 8,189,522 6,176,272 10,210,739 2,102,732 26,679,265 Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 32

4.1.1.3 Water Supply and Production Costs
Through the projection period, RPU produced and anticipates continuing to produce all of its water needs locally from the groundwater basins in which it owns pumping and export rights. Each basin has a specific cost associated with water production. Costs associated with water supply are tracked in the Water Production and Operations Division of RPU’s water operating budget. Those costs are then allocated to each source of supply as well as distribution by operations and engineering staff based on several factors including pumping charges or dues for each basin, the amount of water produced from each basin, the level of treatment required for water from each basin, and the amount of maintenance required for facilities in each basin. Table 17 below presents a summary of the cost of water allocation for each year and the average of FY 2019/20 through FY 2021/22.

Table 17 Historic Source of Supply Costs
Gage
Supply 1
Riverside
South/North
Supply 2
Waterman
Supply 3
Flume
Supply 4
Rialto
Colton
(no potable
production)
Distribution
(After
Linden
Reservoir)
FY 2019/20
Total Allocated Costs
(millions) $3.596 $3.312 $4.926 $1.214 $0.087 $6.131
Production (AF) 26,403 22,357 26,321 6,864 458 56,299
Unit Cost (per AF) $136.19 $148.15 $187.14 $176.86 $188.99 $108.91

FY 2020/21
Total Allocated Costs
(millions) $3.880 $3.339 $5.810 $1.252 $0.063 $6.076
Production (AF) 28,589 22,486 32,533 5,783 62 62,107
Unit Cost (per AF) $135.70 $148.48 $178.60 $216.58 $1,019.41 $97.84

FY 2021/22
Total Allocated Costs
(millions) $3.999 $3.846 $5.891 $1.318 $0.067 $6.234
Production (AF) 27,438 22,135 31,189 5,608 15 60,788
Unit Cost (per AF) $145.76 $173.74 $188.88 $235.08 $4,437.11 $102.55

Three-Year Average
Total Allocated Costs
(millions) $3.825 $3.499 $5.542 $1.262 $0.072 $6.147
Percent of Costs 18.8% 17.2% 27.2% 6.2% 0.4% 30.2%
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 33
The available water supplies have been prioritized based on unit costs. Water from Gage, the lowest cost source, is considered priority 1 supply (Supply 1), water from Riverside North and South is priority 2 supply (Supply 2), water from Waterman is priority 3 supply (Supply 3), and water from Flume (the most expensive source) is priority 4 supply (Supply 4). Costs for Rialto Colton are not included in the allocations as no potable water is produced from the Rialto Colton basin. Costs associated with distribution (after the Linden-Evans reservoir) are related to water distribution and allocated to the Distribution function.

Based on these proportions, Water Production and Operations costs are functionally allocated to Distribution (30.2 percent) and Source of Supply (69.8 percent). A line-item cost center allocation is provided in the Appendix.

An additional allocation was performed to calculate the breakdown of costs specifically incurred to produce potable water for retail sales between each of the supply sources. To estimate potable production costs from each supply, the unit costs for each supply and fiscal year from Table 17 are multiplied by the potable acre feet for each supply and fiscal year from Table 16. The three-year average cost to produce potable water from each source is then used to allocate projected source of supply costs for each fiscal year to each of the supply sources in the cost of service analysis. Table 18 shows the estimated potable production costs for each supply and resulting allocation percentages.

Table 18 Estimated Potable Retail Supply Costs
Supply 1
Gage
Supply 2
Riverside
South/North
Supply 3
Waterman
Supply 4
Flume
AF for Potable Use
FY 2019/20 17,988 15,076 17,676 5,559
FY 2020/21 19,097 14,369 23,796 4,743
FY 2021/22 18,504 13,989 23,086 4,912

Cost for Potable Production (millions)
FY 2019/20 $2.450 $2.233 $3.308 $0.983
FY 2020/21 $2.591 $2.133 $4.250 $1.027
FY 2021/22 $2.697 $2.430 $4.360 $1.155
Average $2.579 $2.266 $3.973 $1.055

Total Allocation 26.1% 22.9% 40.2% 10.7%
Notes:
(1) Totals may be off due to rounding.

4.1.2 Water Field Operations
The primary role RPU's Water Field Operations division is to perform operations and maintenance activities on the distribution system. Some staff members also perform customer service, meter service, and/or administrative duties as well. Staff costs and costs related to the level of staffing were allocated based on an analysis of estimated staffing costs by position and each position’s role in RPU’s operations. The staff cost analysis resulted in an allocation of 79.0 percent to Distribution, 10.3 percent to Administration, 5.6 percent to Meter Services, 2.7 percent to General, and 2.5 percent to Customer.

FINAL | MAY 2023 | 34
Non-personnel field operations costs are allocated to Fixed Maintenance, Administration or – if they cannot be tied directly to specific functions – As All Others. A line-item cost center allocation is provided in the Appendix.

4.1.3 Water Engineering
Staff in RPU’s water engineering group split their time between supporting the capital program and supporting operations. Engineering staff working on capital projects charge their time directly to those projects, administrative staff costs within the Water Engineering category are budgeted as O&M expenditures. RPU provided the percentage of time that each staff member in the Water Engineering division spends on capital work orders, production/supply, distribution, and administration. Those allocations were then used along with the allocated CIP and estimated staff cost for each position to functionalize the projected Water Engineering Staff costs. The results of the analysis indicate that

45.8 percent of staff time is spent on Distribution tasks, 28.2 percent on Source of Supply, 14.3 percent on Transmission, 7.6 percent on Meter Services, 3.1 percent on Pumping, and the remaining 1 percent split equally between Treatment and Storage.

Non-personnel costs within Water Engineering include consultant services, equipment and software purchases, insurance, and other operational expenses. As most of these costs cannot be directly tied to specific functions within the system, they are allocated to As All Others, which is proportionally redistributed. The calculations used to develop the allocations are provided in the Appendix.

4.1.4 Office of Operations Technology
Cost items in the Office of Operations Technology are either fully allocated to Fixed Maintenance expenses or are considered As All Others and redistributed proportionately to the Operating Expenditures subtotal.

The calculations used to develop the allocations are provided in the Appendix.

4.1.5 Debt Service
RPU has five outstanding debt obligations as well as pension obligations and lease agreements that are paid with user rate revenues. An analysis was completed to allocate the existing and new debt service obligations to function based on the types of projects that were funded by each debt issue. The new debt issuance is strictly for CIP and therefore allocated based on those upcoming projects. Based on that analysis, Table 15 from above presents the allocations assigned to each issuance.

4.2 Rate Component Allocation
The second step in the cost of service analysis allocates these functional groups to the rate components of the utility’s primary functions including base demand, peak demand, customer costs (customer and capacity), and water supply costs. These were broken down into the following subcomponents to better identify and allocate costs that may vary based on meter size or demand patterns. Using the five-year average revenue requirements for FY 2023/24 through FY 2027/28, revenue requirements for each functional group were distributed between the following rate components:

Customer: Customer costs are fixed expenditures that relate to the RPU’s support activities, which include utility billing, customer service, and administrative support. These expenditures are common to all customers and uniformly recovered from each customer through the monthly delivery charge.

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Capacity: Capacity costs are annual expenditures that RPU will incur each year regardless of the quantity of water sold. Capacity costs are fixed expenditures that include meter- and capacity-related costs, such as meter maintenance, a portion of debt service, and a portion of capital costs that are recovered based on the meter’s hydraulic capacity.

Base: Base costs are operating and capital costs incurred by the water system to provide a basic level of service to each customer. It is assumed that allocated costs benefit all customers uniformly and do not vary based on system peaking. These costs are recovered based on the total water demands.

Max Day: Max day costs are operating, and capital costs incurred by the water system to provide service during peak conditions, specifically maximum day demands (MDD). These costs are assigned to rate codes based on maximum day extra capacity (as calculated using system demands) and recovered based on water use.

Max Hour: Max hour costs are operating, and capital costs incurred by the water system to provide service during peak conditions, specifically maximum hour demands (MHD). These costs are assigned to rate codes based on maximum hour extra capacity (as calculated using system demands) and recovered based on water use.

Supply 1: Operating costs associated with the lowest cost source of potable water supply, Gage.

Supply 2: Operating costs associated with the second lowest cost source of potable water supply, the Riverside North and South basins.

Supply 3: Operating costs associated with the second most expensive cost source of potable water supply, Waterman.

Supply 4: Operating costs associated with the most expensive cost source of potable water supply, Flume.

Supply Sustainability: Debt service costs for new bonds associated with the supply sustainability projects in the CIP.

4.2.1 Max Day and Max Hour Analysis
Allocating functional costs to the Max Day and Max Hour rate components first requires calculating the system demand factors, which indicates the ratio of maximum day and hour peaking compared to average day demand, as shown in Table 19. The analysis utilizes the MDD and MHD ratios from the 2022 RPU Focused water Master Plan. The system Max Day Ratio is the quotient of MDD divided by average day demand (ADD); the system Max Hour Ratio is the quotient of MHD divided by ADD; and the system Max Hour to Max Day Ratio is the quotient of MHD divided by MDD.

Table 19 System Demand Factors Calculation
Component Factor
System Max Day Ratio (MDD/ADD) 1.47
System Max Hour Ratio (MHD/ADD) 1.75
System Max Hour / Max Day Ratio (MHD/MDD) 1.19
Notes:
(1) FY 2020/21 information provided by RPU based on demand records and peak factors from the 2022 RPU Focused Water Master Plan.

Each peaking factor ratio is then differentiated by Base, Max Day, and Max Hour to establish the extra capacity allocation percentages assigned to functionalized expenditures, as shown in Table 20. Base is defined as 100 percent of average (non-peak) use and is therefore always assigned 1.00 ratio.

FINAL | MAY 2023 | 36
For Base on Max Day, the remaining system ratio of 0.47 (1.47 minus 1.00) is assigned to Max Day. This equates to a 68.0 and 32.0 percentage split of Base and Max Day, respectively. The allocation calculation for Base, Max Day, and Max Hour is similarly calculated, with any excess of 1.47 assigned to Max Hour from the

1.75 System Max Hour Ratio. Lastly, any functional expenses that are driven only by peaking demand are allocated based on percentages derived from the calculated Max Day to Average Day Demand (1.47) and Max Hour (0.28).

Table 20 Extra Capacity Allocation Calculations
Extra Capacity Component Ratio Percentage
Base on Max Day
Base 1.00 68.0%
Max Day 0.47 32.0%
Max Day to Average Day Demand 1.47 100.0%

Base, Max Day, and Max Hour
Base 1.00 57.1%
Max Day 0.47 26.9%
Max Hour 0.28 16.0%
Max Hour to Average Day Demand 1.75 100.0%

Max Day and Max Hour
Max Day 1.47 84.0%
Max Hour 0.28 16.0%
Max Hour to Average Day Demand 1.75 100.0%

4.2.2 Rate Component Allocation Results
The allocation to rate components was performed by first allocating the component elements of total revenue requirements, then combining those allocations along with offsetting revenues and other costs to determine the overall allocation.

4.2.2.1 Allocated O&M Costs
Functionalized O&M costs were allocated to rate components Table 21 presents a summary the functional expense allocation factors and Table 22 details the allocation of O&M expenses to rate components. O&M costs for each function are allocated to rate categories as follows:
• Costs in the pumping and treatment functions are allocated to Max Day and Max Hour using the allocation shown in Table 20.
• Treatment costs are allocated to Base and Max Day using the allocation shown in Table 20. • Distribution and Transmission costs are allocated to Base, Max Day, and Max Hour using the allocation shown in Table 20.
• Source of Supply costs are allocated to each supply using the allocation shown in Table 18. • General costs are allocated to As All Other, then proportionally redistributed based on the overall allocation for allocable costs.
• Customer costs are allocated entirely to the Customer category. • Meter Services costs are allocated entirely to the Capacity category. • Administration costs are allocated to the Customer and Capacity categories.

FINAL | MAY 2023 | 37
• Fixed Maintenance costs are allocated to the Capacity component.

4.2.2.2 Allocated Debt Service
Functionalized debt service costs are allocated to rate categories based on the types of projects funded with the debt instruments and how the infrastructure benefits RPU’s customers. • As debt service is a fixed cost, most functions are allocated to the fixed Capacity component since each customer’s capacity, as dictated by their meter size, relates to the sizing of infrastructure. Debt service costs in the Pumping, Storage, Distribution, Transmission, and Meter Services. • Treatment and Source of Supply debt service costs are allocated to Max Day since the need for, and/or sizing of, those facilities is driven largely by peak demands. • Debt service for Supply Sustainability projects is allocated to the Supply Sustainability category.

The allocation of debt service to rate categories is summarized in Table 23.

4.2.2.3 Allocated CIP
Functionalized CIP costs are allocated to rate categories using the same methodology as that discussed above for debt service. The CIP allocations rely on the project costs prior to adding cost escalation. The allocation of the CIP to rate categories is summarized in Table 24.

4.2.2.4 Revenue Requirements Allocation
Table 25 summarizes the rate component allocation of the Total Rate Revenue Requirement. The resulting percentage allocations are then applied to the revenue requirements for each fiscal year of the study period.

All allocations are shown in line-item detail in the Appendix.

4.2.3 Fixed and Variable Cost Recovery
Based on the results of the rate category allocation, the proposed rates would recover 40.4-percent of rate revenue requirements via the fixed charges and the remaining 59.6-percent through variable rates. This split is generally in alignment with the current rates which are expected to generate 39-percent of rate revenues via the fixed charges and 61-percent of rate revenues through variable rates.

Figure 9 compares the fixed and variable revenue collection for the current rates and proposed rates to RPU’s actual fixed and variable costs. As shown, RPU’s actual costs are 85-percent fixed and 15-percent variable as the only truly variable costs are those related to utilities, consumables, and volumetric fees associated with producing and distributing water. Most water agencies with a similar supply portfolio to RPU’s, one not reliant on expensive imported water, show a similar discrepancy between the truly fixed costs and the proposed fixed revenue collection. It is generally not feasible to structure rates to directly match the actual fixed and variable cost split as it can lead to rate shock and removes much of the control that customers have over their water bills.

Though the discrepancy between fixed and variable costs can place RPU at risk of under collecting fixed costs during times of substantial conservation, the other attributes of the rate structure for variable rates has considered potential revenue volatility. Specifically, the incremental charge for tier 3 as compared to tier 2 for SFR customers has moderated leading to reduced potential for volatility. During the previous COSA study, several rate structure modifications to further reduce volatility including the change to non-tiered rates for commercial, industrial and landscape customers and the removal of tier 4 for SFR customers. Those changes have been retained in the proposed rate structure.

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Figure 9 Fixed Cost Recovery

39% 40%
85%
61% 60%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Current Revenue Collection
(FY 2022/23 Estimated)
FY 2023/24 through
FY 2027/28 Proposed
Actual Costs
(FY 2022/23 Expenses)
Cost Recovery
Fixed Variable
Actual Cost of Service

FINAL | MAY 2023 | 39
Table 21 O&M Allocation Factors
Category
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
As All Others
Pumping - - - 84.0% 16.0% - - - - - -
Treatment - - 68.0% 32.0% - - - - - - -
Storage - - - 84.0% 16.0% - - - - - -
Distribution - - 57.1% 26.9% 16.0% - - - - - -
Transmission - - 57.1% 26.9% 16.0% - - - - - -
Source of Supply - - - - - 26.1% 22.9% 40.2% 10.7% - -
Supply Sustainability - - - - - - - - - 100.0% -
General - - - - - - - - - - 100.0%
Customer 100.0% - - - - - - - - - -
Meter Services - 100.0% - - - - - - - - -
Admin 25.0% 75.0% - - - - - - - - -
Fixed Maintenance - 100.0% - - - - - - - - -

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Table 22 Rate Category Allocation of O&M Expenditures ($ millions) Category
Five-
Year
Average
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
As All Others
Pumping $0.24 $- $- $- $0.20 $0.04 $- $- $- $- $- $- Treatment 0.04 - - 0.03 0.01 - - - - - - - Storage 0.04 - - - 0.03 0.01 - - - - - - Distribution 19.56 - - 11.17 5.25 3.13 - - - - - - Transmission 1.12 - - 0.64 0.30 0.18 - - - - - - Source Of Supply 22.53 - - - - - 5.89 5.17 9.06 2.41 - - Supply Sustainability - - - - - - - - - - - - General 0.23 - - - - - - - - - - 0.23 Customer 2.52 2.52 - - - - - - - - - - Meter Services 1.08 - 1.08 - - - - - - - - - Admin 2.98 0.75 2.24 - - - - - - - - - Fixed Maintenance 3.85 - 3.85 - - - - - - - - - TOTAL ALLOCATION $54.18 $3.26 $7.17 $11.84 $5.80 $3.35 $5.89 $5.17 $9.06 $2.41 $- $0.23

TOTAL WITH AS ALL OTHER
REALLOCATED ($)
$54.18 $3.28 $7.20 $11.89 $5.83 $3.37 $5.91 $5.19 $9.10 $2.42 $- $- TOTAL (%) 100.0% 6.0% 13.3% 21.9% 10.8% 6.2% 10.9% 9.6% 16.8% 4.5% - - Notes:
(1) Totals may be off due to rounding.

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Table 23 Rate Category Allocation of Debt Service ($ millions) Division/Category
Five-
Year
Average
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
As All Others
Pumping $0.85 $- $0.85 $- $- $- $- $- $- $- $- $- Treatment 0.77 - - - 0.77 - - - - - - - Storage 0.48 - 0.48 - - - - - - - - - Distribution 10.80 - 10.80 - - - - - - - - - Transmission 3.90 - 3.90 - - - - - - - - - Source of Supply 5.91 - - - 5.91 - - - - - - - Conservation 1.37 - - - - - - - - - 1.37 - General 1.03 - - - - - - - - - - 1.03 Customer - - - - - - - - - - - - Meter Services 0.74 - 0.74 - - - - - - - - - Administration - - - - - - - - - - - - Fixed Maintenance - - - - - - - - - - - - TOTAL ALLOCATION $25.84 $- $16.77 $- $6.68 $- $- $- $- $- $1.37 $1.03

TOTAL - AS ALL OTHER
REALLOCATED ($)
$25.84 $- $17.46 $- $6.95 $- $- $- $- $- $1.42 $- TOTAL (%) 100.0% - 67.6% - 26.9% - - - - - 5.5% -
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 42
Table 24 Rate Category Allocation of CIP ($ millions)
Division/Category Five-Year
Total
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
As All Others
Pumping $6.1 $- $6.1 $- $- $- $- $- $- $- $- $- Treatment 1.0 - - - 1.0 - - - - - - - Storage 1.0 - 1.0 - - - - - - - - - Distribution 57.6 - 57.6 - - - - - - - - - Transmission 27.9 - 27.9 - - - - - - - - - Source of Supply 12.0 - - - 12.0 - - - - - - - Conservation 28.0 - - - - - - - - - 28.0 - General - - - - - - - - - - - - Customer - - - - - - - - - - - - Meter Services 15.0 - 15.0 - - - - - - - - - Administration - - - - - - - - - - - - Fixed Maintenance - - - - - - - - - - - - TOTAL ALLOCATION $148.6 $- $107.6 $- $13.0 $- $- $- $- $- $28.0 $-

TOTAL - AS ALL OTHER
REALLOCATED ($) $148.6 $- $107.6 $- $13.0 $- $- $- $- $- $28.0 $- TOTAL (%) 100.0% - 72.4% - 8.7% - - - - - 18.8% -

ALLOCATION Without
Supply Sustainability 100.0% - 89.2% - 10.8% - - - - - - - Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 43
Table 25 Rate Category Allocation of Total Revenue Requirements ($ millions)

Five-
Year
Average
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
As All Others
Requirements
Operating Revenue
Requirements $53.97 $3.26 $7.17 $11.84 $5.80 $3.35 $5.89 $5.17 $9.07 $2.41 $- $- Additional O&M for CIP and
Advanced Tech 1.83 0.11 0.24 0.40 0.20 0.11 0.20 0.18 0.31 0.08 - - Required Reduction in O&M - - - - - - - - - - - -
Debt Service Requirements:

Bonds, Leases, and Minor Debts 25.84 - 17.46 - 6.95 - - - - - 1.42 - Debt Service Requirements:

WIFIA - - - - - - - - - - - -
General Fund Transfer 9.26 - - - - - - - - - - 9.26
Capital Outlay Financed by Rates 7.55 - 6.74 - 0.81 - - - - - - - Conservation Program 1.66 - - - 1.39 0.27 - - - - - -
Use of Non-Rate Revenue for
WA-12 0.68 - - - - - - - - - - 0.68

Less: Offsetting Requirements
Conservation Surcharge (1.66) - - - (1.39) (0.27) - - - - - - Interest income (2.06) - - - - - - - - - - (2.06)
Miscellaneous income (3.11) - - - - - - - - - - (3.11)
Water Conveyance Revenues (3.78) - - - - - - - - - - (3.78) Settlement reimb -
Lockheed/Shell (2.64) - - - - - (1.38) (0.70) (0.56) - - - Wholesale Sales- WMWD (2.40) - - - - - - - - - - (2.40)

FINAL | MAY 2023 | 44

Five-
Year
Average
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
As All Others
Wholesale sales - Norco (0.84) - - - - - - - - - - (0.84) Outside City Surcharge (2.19) - - - - - - - - - - (2.19) Fire Service Charges (0.62) - - - - - - - - - - (0.62)

Projected Cash Flows - (Use of)
Contributions to Reserves $4.32 $- $- $- $- $- $- $- $- $- $- $4.32

Adjustment for Rate Increase
Delay $- $- $- $- $- $- $- $- $- $- $- $-

TOTAL RATE REVENUE
REQUIREMENT $85.80 $3.37 $31.61 $12.24 $13.77 $3.47 $4.71 $4.65 $8.81 $2.49 $1.42 $(0.74)

TOTAL - AS ALL OTHER
REALLOCATED ($) $85.80 $3.34 $31.34 $12.14 $13.65 $3.44 $4.67 $4.61 $8.73 $2.47 $1.41 $- Percentage Allocation 100.0% 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 2.9% 1.6% Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 45
The allocation percentages calculated in Table 25 are applied to the baseline rate revenue requirements for each fiscal year of this rate-setting period, as shown in Table 26.

Table 26 Rate Category Allocation of Baseline Rate Revenue Requirements for FY 2023/24 to FY 2027/28 ($ thousands) Category Revenue
Requirement
Customer
Capacity
Base
Max Day
Max Hour
Supply 1
Supply 2
Supply 3
Supply 4
Supply
Sustainability
Allocation (%) 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 2.9% 1.6% FY 23/24 $74,257 $2,895 $27,123 $10,507 $11,814 $2,975 $4,038 $3,990 $7,559 $2,136 $1,221 FY 24/25 79,627 3,104 29,084 11,266 12,669 3,191 4,330 4,279 8,105 2,290 1,309 FY 25/26 85,393 3,329 31,190 12,082 13,586 3,422 4,644 4,589 8,692 2,456 1,404 FY 26/27 91,583 3,570 33,451 12,958 14,571 3,670 4,980 4,921 9,322 2,634 1,505 FY 27/28 98,148 3,826 35,849 13,887 15,615 3,933 5,338 5,274 9,990 2,823 1,613 Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 46

4.3 Rate Code Allocation
The next step in the cost of service analysis is the allocation of costs to each rate class. This step utilizes the results of the functional allocation and the customer usage and account data, to proportionally allocate costs based on the level of service provided to each rate class.

Carollo analyzed customer billing data for the three-year period FY 2019/20 through FY 2021/22 to understand how different types of customers use the water and wastewater systems, including how COVID-19 has impacted customer usage patterns. This analysis drives the allocation of costs to improve equity among customers.

To allocate costs of service to the different customer rate codes, each rate component must be split and divided appropriately. Each cost component is allocated in proportion to each rate code’s share of the total annual service units of the respective component. The rate code allocation uses the five-year average service units for each rate code. Rate component costs are allocated to each rate code shown below, additional detail of the allocation methodology and service units are included in the following sections.

4.3.1.1 Fixed Rate Components
Customer: Allocated based on the number of accounts.

Capacity: Allocated based on the number of meter equivalents.

Note: fixed rate components are included in the rate code allocation to assess the total revenue requirements allocated to each code. However, because the fixed charges do not vary by rate code, fixed charges are calculated using the total revenue requirements allocated to the Customer and Capacity components.

4.3.1.2 Variable Rate Components
Base: Allocated based on each rate code’s share of total demands.

Max Day: Allocated based on each rate code’s share of max day extra capacity with adjustment for interruptible rates to remove supply related debt service and CIP costs.

Max Hour: Allocated based on each rate code’s share of max day extra capacity.

Supply 1: Allocated based on each rate code’s share of Supply 1 (Gage) water based on the supply allocation.

Supply 2: Allocated based on each rate code’s share of Supply 2 (Riverside North/South) water based on the supply allocation.

Supply 3: Allocated based on each rate code’s share of Supply 3 (Waterman) water based on the supply allocation.

Supply 4: Allocated based on each rate code’s share of Supply 4 (Flume) water based on the supply allocation.

Supply Sustainability: Allocated based on each rate code’s share of max day extra capacity. No Supply Sustainability costs are allocated to interruptible users.

FINAL | MAY 2023 | 47

4.3.2 Water Supply Allocation
The supply allocation serves to assign the lower costs sources of supply to cover basic demands and the higher cost sources of supplies to cover peak demands based on supply availability and each class’s annual demand pattern. A step-by-step process is used to assign sources of supply to each class starting by assigning the lowest cost source of supply to cover a minimal amount of demands then progressively applying the higher cost sources of supply to greater levels of demand.

This allocation of available supply to each customer class was performed using the four-step process described below:

1. Allocate supply to the first increment of demand to all classes based on annualized three-month minimum usage.

The annualized three-month minimum demand is assumed to represent the basic minimum level of usage for each customer class. This initial step of the supply allocation exhausts all Supply 1 water (8.19 million CCF), all available Supply 2 water (6.18 million CCF), and a portion of Supply 3 water (0.88 million CCF).

2. Allocate supply to the second increment of needed supply based on annualized winter consumption.

Annualized winter demand represents the next increment of demand from each customer class. It represents annual demands associated with usage levels using RPU’s seven-month winter (November through May). The supply allocated to each class in step one is subtracted from the annualized winter demand prior to the allocation of remaining supply 3 water. Step 3 of the allocation exhausts 4.63 million CCF of Supply 3 water, leaving 4.70 million CCF of Supply 3 to and all of Supply 4, 2.10 million CCF, to be allocated.

3. Allocate supply to the remaining demand based on total usage.

Step three allocates supplies to cover the remaining demand from each customer class based on total usage. The supply allocated to each class in step one and step two is subtracted from the total annual demand prior to the allocation of remaining Supply 3 water and Supply 4. Step 4 of the allocation exhausts the majority of remaining Supply 3 water (3.47 million CCF). The Supply 3 water remaining after step 4 (1.23 million CCF) and all of the Supply 4 water (2.10 million CCF), is considered resilient supply and is reallocated in step four.

4. Allocate remaining Supply 3 and Supply 4 water to account for supply resiliency.

The remaining Supply 3 water and Supply 4 water is allocated to each customer class based on each’s allocation of Supply 3 water. This reallocation is intended to reflect the supply resiliency afforded to each class by the excess Supply 3 and Supply 4 water. Resilient supply is not allocated to the WA-7 and WA-10 class since they are considered to be interruptible and would be cut off in the event that supplies became limited.

Table 27 presents the summary of allocated supply with the resiliency component by CCF and percentage, respectively. A detailed calculation is provided in the Appendix.

FINAL | MAY 2023 | 48
Table 27 Supply Allocation by Rate Code (CCF)
Rate Code Total Supply 1 Supply 2 Supply 3 Supply 4
Total With Reallocation for Resiliency
SFR (WA-1A) 15,073,945 5,359,778 4,042,171 4,664,340 1,007,655 MFR (WA-1B) 397,834 167,693 126,469 85,254 18,418 Flat Rate – Temp. Service
(WA-2)
56,507 7,700 5,807 35,360 7,639
Riverside WC (WA-4) 10,495 2,929 2,209 4,406 952 Commercial/Industrial
(WA-6)
8,748,379 2,173,028 1,638,827 4,059,528 876,995 Interruptible
Irrigation/Recycled (WA-
7/WA-10)
807,384 188,118 141,873 477,393 -
Landscape (WA-11) 924,468 192,397 145,100 482,693 104,278 Agricultural (WA-12) 660,253 97,877 73,816 401,765 86,795 TOTAL 26,679,265 8,189,522 6,176,272 10,210,739 2,102,732

Percentage Allocation
SFR (WA-1A) 56.50% 65.45% 65.45% 45.68% 47.92%
MFR (WA-1B) 1.49% 2.05% 2.05% 0.83% 0.88%
Flat Rate – Temp. Service
(WA-2)

0.21% 0.09% 0.09% 0.35% 0.36%
Riverside WC (WA-4) 0.04% 0.04% 0.04% 0.04% 0.05%
Commercial/Industrial
(WA-6)

32.79% 26.53% 26.53% 39.76% 41.71%
Interruptible
Irrigation/Recycled (WA-
7/WA-10)

3.03% 2.30% 2.30% 4.68% 0.00%
Landscape (WA-11) 3.47% 2.35% 2.35% 4.73% 4.96%
Agricultural (WA-12) 2.47% 1.20% 1.20% 3.93% 4.13%
TOTAL 100.00% 100.00% 100.00% 100.00% 100.00%
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 49

4.3.3 Water Demand Characteristics – Units of Service As discussed previously, costs allocated to the variable functional categories (Base, Max Day, Max Hour, Supplies 1 through 4, and Supply Sustainability) are allocated based on the amount of demand in each of those categories for each rate code. This directly ties the incremental cost of water to each class's consumption and to volumetric rate tiers (where applicable). Every unit of water has an element of Base, Max Day, Max Hour, and Supply costs. Supply Sustainability costs are spread across all units of water for rate codes without tiered rates and from the upper tiers for rate codes with tiered rates.

Costs for each rate component, for each fiscal year, are allocated to each rate code using five-year average units of service for the Study period. The peak factors and calculated max day and max hour extra capacity for each rate code were determined using the detailed customer billing data analysis, demand projections, and the overall system max day and max hour peak factors presented previously in Table 19. Table 28 shows the five-year average units of service for each rate code, additional detail is included for reference in the Appendix.

Table 29 shows the rate component costs allocated to each rate code for FY 2023/24. This allocation is performed for each fiscal year of the study period and the variable costs allocated to each code are then used to calculate rates. Allocated costs for each fiscal year are included in the Appendix.

4.3.4 Interruptible Rates
Along with the exclusion of resilient supply, the allocated costs for interruptible customers are adjusted to remove costs associated with development of supply sources as well as costs in the Supply Sustainability category. These users are not considered to benefit from investments in water supply resiliency because they will be required to stop using water in the event that system wide usage must be curtailed, or if a system failure or other event leads to a decrease in available supplies.

Supply related debt service and capital costs are allocated to the Max Day component thus, the allocation of Max Day costs for interruptible users is adjusted to remove the debt service and capital costs that are associated with developing or enhancing water supply sources. No costs in the Supply Sustainability category are allocated to the interruptible users. No interruptible adjustments are made for the Customer, Capacity, Base, Max Hour, or Supply 1, 2, and 3 allocations.

FINAL | MAY 2023 | 50
Table 28 Units of Service
Rate Class Total Use (Five-Year
Avg.) Max Day Extra Capacity (Five-Year Avg.) Max Hour Extra Capacity (Five-Year Avg.)
CCF % Peak
Factor CCF % % with Interruptible Adjustment Peak
Factor CCF %
SFR (WA-1A) 13,665,519 57.4% 1.48 18,078 57.8% 59.9% 1.77 48,015 57.4% MFR (WA-1B) 373,810 1.6% 1.36 373 1.2% 1.2% 1.62 1,290 1.5% Flat Rate – Temp. Service (WA-2) 44,394 0.2% 2.29 157 0.5% 0.5% 2.73 175 0.2% Riverside WC (WA-4) 8,986 0.04% 1.69 17 0.05% 0.1% 2.01 33 0.0% Commercial/Industrial (WA-6) 7,574,471 31.8% 1.40 8,352 26.7% 27.7% 1.67 26,296 31.5% Interrupt. Irrigation/Recycled
(WA-7/WA-10) 830,364 3.5% 1.84 1,913 6.1% 2.8% 2.19 3,073 3.7% Landscape (WA-11) 781,477 3.3% 1.67 1,426 4.6% 4.7% 1.98 2,820 3.4% Greenbelt (WA-8) - 0.0% 2.07 - 0.0% 0.0% 2.47 - 0.0%
Agricultural (WA-12) 522,624 2.2% 1.66 939 3.0% 3.1% 1.97 1,884 2.3% Total 23,801,644 100.0% 31,255 100.0% 100.0% 83,584 100.0% Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 51
Table 29 Rate Code Allocation for FY 2023/24 (thousands $) Category
SFR
(WA-1A)
MFR
(WA-1B)

COMM/INDU
(WA-6)
INTERRUPT.

IRR / RECYC
(WA-7/WA-10)

LANDSCAPE
(WA-11)
FLAT RATE –
TEMP.

SERVICE
(WA-2)

RIVERSIDE
WC (WA-4)

GREENBELT
(WA-8)

AGRICULTUR
AL (WA-12)
SYSTEM
TOTAL
Customer $2,554.6 $49.0 $229.6 $24.6 $22.2 $3.4 $1.1 $0.4 $9.6 $2,894.5 Capacity 18,393.4 385.4 6,918.0 548.0 507.7 216.2 14.0 - 140.5 27,123.1 Base 6,032.2 165.0 3,343.5 366.5 345.0 19.6 4.0 - 230.7 10,506.5 Max Day 7,073.1 145.9 3,267.5 334.5 557.8 61.4 6.6 - 367.5 11,814.4 Max Hour 1,709.2 45.9 936.0 109.4 100.4 6.2 1.2 - 67.0 2,975.4 Supply 1 2,642.9 82.7 1,071.5 92.8 94.9 3.8 1.4 - 48.3 4,038.3 Supply 2 2,611.5 81.7 1,058.8 91.7 93.7 3.8 1.4 - 47.7 3,990.2 Supply 3 3,452.8 63.1 3,005.1 353.4 357.3 26.2 3.3 - 297.4 7,558.5 Supply 4 1,023.6 18.7 890.8 - 105.9 7.8 1.0 - 88.2 2,135.9 Supply
Sustainability
752.1 15.5 347.4 - 59.3 6.5 0.7 - 39.1 1,220.6 Total $46,245.3 $1,052.9 $21,068.3 $1,920.8 $2,244.3 $354.8 $34.6 $0.4 $1,336.0 $74,257.5 Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 52
Section 5

WATER RATE DESIGN
The rate design analysis links the rate code costs identified in Section 4 with the water rates necessary to achieve cost recovery. The focus of this process is to achieve full cost recovery and substantiate that each rate code is paying their fair and proportionate share of system costs.

5.1 Selecting Rate Structures
Once costs have been equitably allocated to each customer class, RPU does have some flexibility in designing the rate structure to meet its policy objectives. In determining the appropriate rate level and structure, Carollo analyzed various rate design alternatives and the corresponding customer and utility implications. Beyond the identified study objectives, Carollo identified additional criteria for considerations and discussed them at length with RPU staff. Listed below are RPU’s ratemaking principles:

5.1.1 Ratemaking Principles
RPU rate structures will be designed to provide a transition to rates that align with the transformational changes occurring in the electric and water industries. RPU’s rates shall be designed to achieve the following goals:

Given the numerous and, at times, competing elements, selection of an appropriate rate structure is complex. There is no single structure that meets all objectives equally, nor are all objectives or elements valued the same by the utility or customers. Each criteria or element has merit and plays an important role in the rates implementation and overall effectiveness. These elements and competing objectives were discussed and evaluated at length throughout the financial and rate study process.

Achieve full recovery of costs.

Equitably allocate costs across and within customer classes.

Encourage efficient use of water and electricity.

Provide rate stability.

Offer flexibility and options.

Maintain rate competitiveness in region.

Be simple and easy to understand.

FINAL | MAY 2023 | 53

5.1.2 Proposed Water Rate Structure
Based on discussion with RPU staff and careful review of the cost of service analysis, Carollo recommends that RPU implement the following rate design modifications:
• Revise the SFR Tier 1 allotment from 9 CCF to 8 CCF to reflect updated State guidance for indoor water usage, 47 gallons per capita per day (GPCD), and assuming 4 persons per household. • Revise the MFR Tier 1 allotment from 7 CCF to 6 CCF to reflect updated State guidance for indoor water usage, 47 GPCD, and assuming 4 persons per household.

5.2 Fixed Charges
The fixed charge is intended to provide a stable revenue source that is related to how customers use the system expressed as the system capacity required to serve them. The proposed fixed charge is a combination of the Customer and Capacity functional components. The Customer component recovers costs that apply to all accounts in the system, regardless of usage or the size of the connection to the system. The proposed fixed charge is designed to collect costs associated with capital expenditures (debt service, rate funded capital, and a portion of engineering) as well as maintenance costs based on each customer’s capacity share as measured by Meter Equivalent Units (MEU). The customer share accounts for billing and administrative costs that are independent of each customer’s capacity share and therefore equal for each account.

Table 30 presents the calculation of monthly unit charges for both account and MEU as the first step to determining the fixed charge.

Table 30 Monthly Component Charges
Existing FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Number of Accounts 66,694 66,879 67,064 67,250 67,436 67,623 Customer Revenue to
Recover ($ millions) $2.89 $3.10 $3.33 $3.57 $3.83
Monthly Component
Charge Per Account $3.61 $3.86 $4.12 $4.41 $4.71

Number of MEUs 95,061 95,337 95,661 95,987 96,290 96,594 Capacity Revenue to
Recover ($ millions) $27.12 $29.08 $31.19 $33.45 $35.85 Monthly Component
Charge per MEU $23.71 $25.34 $27.08 $28.95 $30.93
Notes:
(1) Totals may be off due to rounding.

To determine the fixed charge, the meter unit cost is then multiplied by the meter capacity ratios previously developed by RPU to calculate the meter capacity cost. These ratios are based on ratios identified in the AWWA M6 Manual Water Meters - Selection, Installation, Testing, and Maintenance and represent the types of meters used by Riverside. The ratios are calculated using the average of maximum flow for meters of each size. The meter Capacity cost is then added to the Customer cost to calculate the cost based fixed charges, presented in Table 31.

FINAL | MAY 2023 | 54
While an increased fixed charge provides a stable source of revenues for the utility, increasing the fixed charge reduces the amount allocated to the commodity rates, and thus has the incidental effect of reducing incentives for conservation. The proposed revenue adjustments, as a percentage, do not equal or necessarily correlate to an equivalent percentage increase to rates or monthly bills. The results of the cost of service analysis and rate redesign will affect users differently based on their meter size and water consumptions habits. Table 32 summarizes the proposed monthly fixed charges for the duration of this rate-setting period.

Table 31 Components to Proposed Fixed Charge (FY 2023/24) Meter Size Capacity Ratio Customer
Component
Capacity
Component
Total Monthly
Charge
3/4" & 5/8" 1.00 $3.61 $23.70 $27.31
1" 1.67 3.61 39.59 43.20

1.5" 3.33 3.61 78.94 82.55
2" 5.33 3.61 126.36 129.97
3" 10.00 3.61 237.08 240.69
4" 16.67 3.61 395.21 398.82
6" 36.67 3.61 869.37 872.98
8" 60.00 3.61 1,422.48 1,426.09
10" 93.33 3.61 2,212.67 2,216.28
12" 133.33 3.61 3,160.99 3,164.60
Table 32 Proposed Monthly Fixed Charges (FY 2023/24 to FY 2027/28) Meter Size Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 3/4" & 5/8" $26.00 $27.31 $29.19 $31.20 $33.36 $35.64 1" 41.26 43.20 46.17 49.35 52.76 56.36

1.5" 79.08 82.55 88.23 94.30 100.82 107.70
2" 124.64 129.97 138.90 148.45 158.72 169.56 3" 231.03 240.69 257.22 274.91 293.91 313.99 4" 382.97 398.82 426.21 455.53 487.01 520.28 6" 838.59 872.98 932.94 997.11 1,066.02 1,138.84 8" 1,370.06 1,426.09 1,524.04 1,628.85 1,741.43 1,860.39 10" 2,129.34 2,216.28 2,368.50 2,531.39 2,706.35 2,891.22 12" 3,040.57 3,164.60 3,381.95 3,614.54 3,864.36 4,128.34

FINAL | MAY 2023 | 55

5.3 Variable Rates
The variable rates are developed for each rate code and are designed to recover the costs proportionate to water demands. Cost of service-based rates were developed for each rate code based on the principle of maintaining vertical and horizontal customer-class equity. Rate codes, such as single-family residential or commercial, only pay for their assigned share of costs of service, and within each rate code, each account will pay a fair share of the costs assigned to that rate code based on their demands. The water commodity rate for each rate code is calculated based on the rate code’s share of revenue requirements and their forecasted water demands.

5.3.1 Seasonally Adjusted Rates
Like RPU's current rate structure, the proposed variable rates for several customer classes will be seasonally adjusted. Rates are increased in the summer months to reflect the increased costs associated with providing water during times of peak usage. The seasonal adjustment also provides the additional benefit of promoting efficient usage throughout the year.

Under the existing rate structure, summer months include June through October and winter months include November through May. Based on current water usage patterns these seasonal definitions were found to be in alignment with customer usage patterns and were therefore maintained for the proposed rates.

The seasonal adjustment to the proposed rates was made by allocating a greater share of Max Day costs to the highest tier summer rate based on the ratio of demands in the average summer months to the demands in the average winter month. For classes with tiered rates (single family, multi-family, and Riverside Water Company Irrigators), seasonal adjustments are applied only to the highest tier. As such, this ratio is calculated for the highest tier of the tiered rate classes, or for the rate code as a whole for Commercial/Industrial WA-6 and Landscape WA-11.

The first step to calculating the seasonal ratio is to sum each season’s forecasted usage for FY 2023/24 and divide by the number of months in that season; five summer months and seven winter months. Then, the ratio of summer to winter usage is the seasonal ratio used in rate design. Table 33 presents the summary of these calculations.

FINAL | MAY 2023 | 56
Table 33 Seasonal Peak Factors Calculation
Rate Class Winter
CCF
Summer
CCF Seasonal Ratio
Number of Months 7 5
WA-1A SFR (Tier 3)
Avg. Seasonal Use 781,054 1,260,772
Avg. Monthly Use 111,579 252,154 2.26
WA-1B MFR (Tier 2)
Avg. Seasonal Use 90,208 95,879
Avg. Monthly Use 12,887 19,176 1.49
WA-4 Riverside Irrigators (Tier 3)
Avg. Seasonal Use 392 636
Avg. Monthly Use 56 127 2.27
WA-6 Commercial/Industrial (All)
Avg. Seasonal Use 3,814,280 3,543,456
Avg. Monthly Use 544,897 708,691 1.30
WA-11 Landscape (All)
Avg. Seasonal Use 337,300 421,816
Avg. Monthly Use 48,186 84,363 1.75
Notes:
(1) Totals may be off due to rounding.

5.3.2 Single Family Residential Rates
Given the State’s ongoing water resources concerns and calls for conservation, and RPU’s continued investment in supply resiliency, it is important that the proposed water rate structure promotes efficient water usage and passes the true cost of providing water service on to the customers who utilize that service.

The study reviewed the appropriateness and applicability of several rate structure alternatives for the Single Family residential customer class. These options included seasonal and non-seasonal rates, various methods to set tier breaks, and various methods to allocate costs to each tier.

5.3.3 Proposed Single Family Rate Structure
The proposed single family rates maintain the fixed and variable tiered structure but reduce the breakpoint from 9 CCF to 8 CCF in Tier 1. The proposed rates have been developed with a three-tiered inclining block structure, with tier three rates that vary seasonally. The CCF allotments for each tier will remain constant throughout the course of the year. The proposed tier allotments have been set based on water needs for each customer and on the actual usage patterns observed in the customer billing data.

Tier 1 Allotment – Indoor Usage: The proposed tier one allotment is 8 CCF per account per month. This allotment was calculated based on an assumed 4 persons per household and 47 gallons per capita per day to reflect state indoor water use guidance.

Tier 2 Allotment – Efficient Outdoor Usage: The tier two allotment is an additional 27 CCF per month above the tier one allotment. This allotment maintains RPU’s existing tier two breakpoint of 35 CCF per month and is in alignment with the 75th percentile user in the maximum month.

FINAL | MAY 2023 | 57
Tier 3 – High Usage: Any usage above 35 CCF will be charged the tier three rate.

Seasonal adjustment of the tier three rates helps to reflect the additional cost of seasonal peaking on the system.

5.3.4 Proposed Single Family Rates
Volumetric rates for each tier are calculated by allocating the variable revenue to recover from the SFR rate class (summarized in Table 25) to each tier based on usage per tier and supply available in each tier. Due to the pressure that seasonal variability places on the system, the revenue to recover through volumetric rates for SFR tier three is further allocated to winter and summer proportionate to its seasonal ratio.

5.3.4.1 Base, Max Day, Max Hour, and Supply Sustainability The first step to developing these component rates is to allocate the calculated revenue to recover by tier based on forecasted use, as shown in Table 32.

Base and Extra Capacity (Max Day and Max Hour) costs are allocated proportionate to the share of usage in each tier for the associated unit of service and are independent of source of supply costs. Base costs are allocated in proportion to average day demands, Max Day costs are allocated in proportion to Max Day extra capacity, and Max hour costs are allocated in proportion to Max Hour extra capacity. SFR’s share of Supply Sustainability costs are allocated entirely to Tier 3 since the highest users drive the need to secure additional sources of supply.

Table 34 SFR Proposed Rate Calculation: Base/Extra Capacity by Tier (FY 2023/24) Total Tier 1 Tier 2 Tier 3
Base/Extra Capacity Use (CCF)
Base (Average Day) 13,678 17,649 5,594
Max Day 2,475 9,790 5,563
Max Hour 16,755 22,875 7,719
Supply Sustainability - - -
Base/Extra Capacity Use (%)
Base 37.0% 47.8% 15.2%
Max Day 13.9% 54.9% 31.2%
Max Hour 35.4% 48.3% 16.3%
Supply Sustainability 100.0%
Revenue to Recover ($ thousands)
Base $6,032 $2,235 $2,883 $914
Max Day 7,073 982 3,884 2,207
Max Hour 1,709 605 826 279
Supply Sustainability 752 - - 752
Notes:
(1) Totals may be off due to rounding.

After costs have been allocated to each tier, they are split between winter and summer based upon the projected usage per tier in each season. Table 35 summarizes the seasonal percentages which are applied to the revenue by tier above, resulting in the winter and summer revenue to recover by tier in Table 36.

FINAL | MAY 2023 | 58
An additional seasonal rate adjustment for tier three is created by applying the peaking factor calculated in Table 33. A corresponding allocation is made to the allocated winter tier three costs to maintain revenue neutrality over the entire year.

For tier three, which is seasonally adjusted, Base costs are allocated to winter and summer proportional to the use in each season, resulting in 38.3-percent of costs allocated to winter and 61.7-percent of costs allocated to the summer. To account for the increased peak demand burden in the summer season, peak costs in the Max Day and Max Hour categories are allocated using the seasonally weighted allocation. The seasonally weighted allocation applies the 2.26 seasonal ratio, from Table 33, to the summer demands resulting in 21.5-percent of costs allocated to winter and 78.5-percent of costs allocated to summer.

Table 35 SFR Seasonal Allocation Percentage Calculation (FY 2023/24) Season Tier 1 Tier 2 Tier 3(1) Tier 3 Seasonally
Weighted(2)
Annual (CCF) 4,992,538 6,441,753 2,041,826 n/a
Winter (CCF) 2,848,873 3,039,262 781,054 781,054 Winter (%) 57.1% 47.2% 38.3% 21.5%
Summer (CCF) 2,143,665 3,402,491 1,260,772 2,849,181 Summer (%) 42.9% 52.8% 61.7% 78.5%
Notes:
(1) Based on projected winter and summer demands, used to allocate Base costs that are not driven by peaking. (2) Seasonally weighed summer CCF calculated by multiplying non-weighted CCF of 1,260,772 by tier three seasonal ratio of 2.26. The seasonally adjusted allocation is applied to peak costs in the Max Day and Max Hour categories as peaking is higher in the summer months.
(3) Totals may be off due to rounding.

Table 36 SFR Proposed Rate Calculation: Base/Extra Capacity Costs by Season (FY 2023/24) Tier 1 Tier 2 Tier 3
Winter Rev. Req. ($ thousands)
Base $1,275 $1,360 $350
Max Day 560 1,832 475
Max Hour 345 390 60
Supply Sustainability - - 288
Subtotal: Winter $2,181 $3,583 $1,172
Summer Rev. Req. ($ thousands)
Base $960 $1,523 $564
Max Day 422 2,051 1,732
Max Hour 260 436 219
Supply Sustainability - - 464
Subtotal: Summer $1,641 $4,011 $2,980
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 59

5.3.4.2 Sources of Supply
Costs for each priority of supply (Supply 1, Supply 2, Supply 3, and Supply 4) are allocated to each tier based on exhausting the lowest cost source of supply to each tier before allocating costs associated with the next source of supply. Supply cost allocation to each tier were developed based on the five-year average consumption per tier, and the five year average supply allocated to single family residential customers to maintain consistency.

Based on current demand levels, RPU has some available, unused supplies. These supplies provide a critical level of resiliency for the water system and are available to meet high-level, peak demands as other supply sources become restricted. As noted in the report above, RPU is able to sell some of these supplies to offset its operational costs and rate impacts. However, because these supplies provide the greatest level of benefit to high volume users, costs associated with supply resiliency are allocated into tier 3, to reflect the supply available for high volume users and the peak strain that they place on the system. But for the fact that RPU's customers peak on the system, new local supplies and the associated facilities would not have been developed. A direct example of these cost investments is the John W. North Water Treatment Plant.

The resilient supply costs considered in the analysis include only those that will be incurred based on the projected usage, and the fixed costs incurred to maintain access to those supplies. Variable costs associated with resilient supplies such as electricity or chemicals are not included in the analysis. Though the resilient supply allocated into Tier 3 shows an excess of available supply, the costs allocated into each tier reflect only costs that RPU will actually incur.

The source of supply allocations are based on the five-year average to correspond to the allocation of available supplies to each customer class calculated in Table 27. Using the same seasonal allocation calculated in Table 33, the development of the allocation of each supply cost to each tier based on the five- year average consumption over the rate planning period is shown in Table 37 below.

Table 37 SFR Proposed Rate Calculation: Supply by Tier (FY 2023/24) Total Tier 1 Tier 2 Tier 3
Available Supply (CCF)
Supply 1 5,359,778 4,992,538 367,240 -
Supply 2 4,042,171 - 4,042,171 -
Supply 3 4,664,340 - 2,032,342 2,631,999
Supply 4 1,007,655 - - 1,007,655
Available Supply (%)
Supply 1 93.1% 6.9% 0.0%
Supply 2 0.0% 100.0% 0.0%
Supply 3 0.0% 43.6% 56.4%
Supply 4 0.0% 0.0% 100.0%
Revenue to Recover ($ thousands)
Supply 1 $2,643 $2,462 $181 $-
Supply 2 2,611 - 2,611 -
Supply 3 3,453 - 1,504 1,948
Supply 4 1,024 - - 1,024
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 60
Similar to the seasonal allocation calculated for the Base/Extra Capacity components, the supply-related costs per tier are allocated to winter and summer based on its projected usage and percentages calculated in Table 35, resulting in seasonal revenue to recover by tier in Table 38.

Table 38 SFR Proposed Rate Calculation: Supply Costs by Season (FY 2023/24) ($1,000s) Tier 1 Tier 2 Tier 3
Winter Supply Rev. Req. ($ thousands)
Supply 1 $1,405 $85 $-
Supply 2 - 1,232 -
Supply 3 - 710 745
Supply 4 - - 392
Subtotal: Winter $1,405 $2,027 $1,137
Summer Supply Rev. Req. ($ thousands)
Supply 1 $1,057 $96 $-
Supply 2 - 1,379 -
Supply 3 - 795 1,203
Supply 4 - - 632
Subtotal: Summer $1,057 $2,270 $1,835
Notes:
(1) Totals may be off due to rounding.

5.3.4.3 Proposed Single Family Residential Rates
The costs allocated to each tier in each season are summed and then divided by the projected usage for the corresponding tier and season to calculate the volumetric rates. The SFR rate calculation for FY 2023/24 is shown in Table 39 below.

Table 39 SFR Proposed Rate Calculation (FY 2023/24)
Tier 1 Tier 2 Tier 3
Projected Usage (CCF)
Winter 2,848,873 3,039,262 781,054
Summer 2,143,665 3,402,491 1,260,772
Revenue Requirement ($ thousands)
Winter
Base, Max Day, Max Hour, and Supply
Sustainability (Table 36) $2,181 $3,583 $1,172
Supply Costs (Table 38) 1,405 2,027 1,137
Winter Rev. Req. $3,585 $5,610 $2,309
Summer
Base, Max Day, Max Hour, and Supply
Sustainability (Table 36) $1,641 $4,011 $2,980
Supply Costs (Table 38) 1,057 2,270 1,835
Summer Rev. Req. $2,698 $6,280 $4,815
Rate ($/CCF)
Winter $1.26 $1.85 $2.96
Summer 1.26 1.85 3.82
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 61
The calculation is repeated for each year of the analysis based on each years’ projected usage and allocated costs to develop the rate presented in Table 40. The Appendix provides additional detail of the SFR rate calculations.

Table 40 Proposed Single Family Rates
Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Winter Rates
Tier 1 $1.30 $1.26 $1.34 $1.43 $1.52 $1.62
Tier 2 1.64 1.85 1.97 2.09 2.23 2.37
Tier 3 3.01 2.96 3.15 3.35 3.57 3.80
Summer Rates
Tier 1 $1.30 $1.26 $1.34 $1.43 $1.52 $1.62
Tier 2 1.64 1.85 1.97 2.09 2.23 2.37
Tier 3 3.66 3.82 4.07 4.33 4.61 4.91

5.3.4.4 Single Family Residential Revenue Volatility
One of the goals of the rate design analysis was to create a rate structure that controls revenue volatility, while conforming to the requirements of Proposition 218, and RPU’s other rate setting principles. As a component of the rate analysis, the proposed rates were analyzed along with historical and projected demand patterns to test whether rate structure and pricing changes have an adverse impact on revenue volatility. That analysis showed that the proposed SFR rates recover costs from customers at various usage levels in a manner very similar to the current rates.

Figure 10 and Figure 11 show the results of the volatility analysis. For presentation comparison purposes, estimated revenues and usage from individual customers were grouped into 10-CCF blocks up to 70 CCF, followed by a final block for customers with more than 70 CCF of monthly usage.

Figure 10 shows the percent of customers within each usage block and the projected usage by each block based on the billing data analysis and demand projection. The left axis corresponds to the total annual usage expected to fall within each monthly usage group, presented as bars, and the right axis shows the percent of accounts within each monthly usage group, presented as an orange line. As shown, customer bills with over 70 CCF of monthly usage represent just 2.8-percent of accounts but are responsible for approximately

1.85 million CCF of demands, constituting 13.7-percent of total SFR sales.

FINAL | MAY 2023 | 62
Figure 10 SFR Projected Usage

Figure 11 shows the revenue generated by SFR users, in the same 10 CCF blocks, including both fixed and variable revenues for FY 2023/24. The left axis corresponds to the blue bars that show the annual revenue expected from users within each usage group. The right axis corresponds to the orange line that shows the percent of annual revenues from users within each group.

As shown, under the proposed rates customers with monthly use over 70 CCF would pay approximately $6.1 million in fixed and variable charges, making up approximately 13.3-percent of SFR revenues. This percentage is slightly less than the 13.5-percent of revenues generated by those users under the current rates.

Figure 11 SFR Projected Revenue by Monthly Usage

0%
5%
10%
15%
20%
25%
30%
35%
-
1 2
3 4
0-10 11-20 21-30 31-40 41-50 51-60 61-70 >71
Percent of Accoutns
Annual Usage (CCF) millions
Monthly Usage (CCF)

ANNUAL USAGE PERCENT OF ACCOUNTS
0%
5%
10%
15%
20%
25%
30%
$-
$2
$4
$6
$8
$10
$12
0-10 11-20 21-30 31-40 41-50 51-60 61-70 >71
Percent of Revenue
Annual Est. Revenue
(FY 23/24) millions
Monthly Usage (CCF)

ANNUAL REVENUE (COS) PERCENT OF REVENUE (PROPOSED RATES)

FINAL | MAY 2023 | 63

5.3.4.5 Single Family Bill Impact Analysis
Due to the changes in the rate structure, monthly bill impacts will vary for specific customers based on their level of usage, seasonal peaking, and meter size. The primary rate structure updates, and their impact on customer bills is discussed below. Note that the calculated bills and impacts presented within this report do not include RPU’s Water Conservation Surcharge.

An analysis was completed to assess and understand the impact of the rate structure updates across a wide variety of customers with differing usage levels and meter sizes.

Factors influencing SFR bill impacts:

Decreased Tier 1 Allotment: The decrease of the Tier 1 breakpoint from 9 CCF to 8 CCF will impact customers whose usage typically falls above 8 CCF per month. Due to the lowered breakpoint, more of their usage will be charged at the higher Tier 2 rate rather than the Tier 1 rate. A portion of this increase will be offset by the change in the Tier 1 rate, which will drop to $1.26 in FY 2023/24 from the current rate of $1.30.

Tier 2 and 3 Pricing: Unit costs for each supply source have come together since the previous study leading to less incremental increase from Tier 2 to Tier 3. Less overall costs allocated to supply resiliency capital, O&M, and debt service as compared to the previous COSA. These changes result in a larger increase to the Tier 2 rate and a relatively smaller increase in the Tier 3 Summer rate and a small reduction in the Tier 3 Winter Rate. These changes result in year 1 bill impacts slightly higher than the systemwide increases for bills with demands between approximately 20 and 60 CCF.

Along with an analysis of bills at all monthly consumption levels between 0 CCF and 500 CCF, bill impacts were calculated for various winter and summer percentiles, defined as the levels of consumption at which a given percentage of customers fall at or below. For example, the 10th percentile corresponds to monthly usage of 5 CCF or below in the winter and 6 CCF or below in the summer. The customer attributes for each percentile are shown below in Table 41.

Table 41 Single Family Test Customers
Percentile Assumed Meter
Size Winter CCF Summer CCF Average Annual
Use
10th 3/4" & 5/8" 5 6 6
20th 3/4" & 5/8" 8 12 10
50th (Median) 3/4" & 5/8" 13 20 17
75th 1" 22 32 27
90th 1" 34 49 42
Figure 12 demonstrates seasonal consumption by number of accounts (left axis) and the cumulative percent of accounts (right axis). As shown, the usage distribution varies based on the season with more accounts at higher levels of monthly consumption in the summer, and more accounts at lower levels of consumption in the winter.

FINAL | MAY 2023 | 64
Figure 12 SFR Monthly Usage Distribution

Figure 13 below shows the average demands of customer accounts at each usage level with their corresponding average monthly bill currently and forecasted for beginning and end of this rate-setting period. On an annual average basis, the majority of customers, about 90 percent, use less than 34 CCF per month in the winter and 49 CCF per month in the summer.

Figure 13 SFR Average Monthly Bill by Usage Percentile

Figure 14 and Figure 15 present this bill impact as a dollars-per-month forecasted change and annual bill percentage change, respectively. In FY 2023/24 (Year 1), the average monthly bill for a 50th percentile (median) customer will increase by $3.00 per month in FY 2023/24 (Year 1) and an average of $3.83 per month in FY 2024/25 to FY 2027/28 (Years 2 to 5).

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%
100.00%
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
1 11 21 31 41 51 61 71 81 91 101 111 121 131
Number of Accounts
Consuption (CCF)
Winter Sum Summer Sum Cum. % of Winter Accts Cum. % of Summer Acct $33.04
$38.99
$49.04
$81.11
$115.99
$34.14
$40.47
$52.04
$86.89
$124.43
$44.42
$52.55
$67.36
$112.38
$160.57
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
10th
W [5] S [6]
25th
W [8] S [12]
50th
W [13] S [20]
75th
W [22] S [32]
90th
W [34] S [49]
Average Monthly Bill ($)
Current FY 23/24 FY 27/28

FINAL | MAY 2023 | 65
The annual bill change for FY 2023/24 (Year 1) is highest for customers using above the 50th percentile due to the Tier 2 and Tier 3 rate increases. However, the annual bill change for FY 2024/25 to FY 2027/28 (Years 2 to 5) remains nearly constant.

Figure 14 SFR Increase in Average Monthly Bill

Figure 15 SFR Annual Bill Increase

Table 42 presents the average monthly bills for each user under the current rates and under the proposed rates in FY 2023/24 (Year 1) and in FY 2027/28 (Year 5). Also shown are the percentage increases in Year 1 and the average percentage increases for Years 2 through 5. $1.10 $1.48
$3.00
$5.78
$8.44
$2.57
$3.02
$3.83
$6.37
$9.04
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
10th
W [5] S [6]
25th
W [8] S [12]
50th
W [13] S [20]
75th
W [22] S [32]
90th
W [34] S [49]
$/Month
Year 1 Change Year 2-5 Annual
0%
1%
2%
3%
4%
5%
6%
7%
8%
10th
W [5] S [6]
25th
W [8] S [12]
50th
W [13] S [20]
75th
W [22] S [32]
90th
W [34] S [49]
Year 1 % Year 2-5 Annual %

FINAL | MAY 2023 | 66
Table 42 Single Family Monthly Bill Impacts
Customer Size CCF Usage
Win | Sum
Avg
Monthly
(Current)
Avg
Monthly
(Year 1)
Annual
Avg %
(Year 1)
Avg
Monthly
(Year 5)
Annual
Avg %
(Year 2-5)
5-Year
Annualized
Increase
10th 5 | 6 $33.04 $34.14 ↑3.3% $44.42 ↑6.8% $2.28 25th 8 | 12 38.99 40.47 ↑3.8% 52.55 ↑6.7% $2.71
50th (Median) 13 | 20 49.04 52.04 ↑6.1% 67.36 ↑6.7% $3.66 75th 22 | 32 81.11 86.89 ↑7.1% 112.38 ↑6.6% $6.25 90th 34 | 49 115.99 124.43 ↑7.3% 160.57 ↑6.6% $8.92

5.3.5 Multi-Family Residential Rates
Due to the high variance in account characteristics among individual customers, traditional tiered rate structures are often not a good fit for multi-family accounts. While multi-family usage is relatively homogeneous per dwelling unit, the number of units per complex varies widely. Relying only on account total information to develop and impose rates would penalize large complexes rather than excessive use or peaking. Therefore, tiered rate structures for multi-family accounts are typically developed based on allotments per dwelling unit rather than allotments per account.

RPU’s multi-family rates are applied to residential users with two, three, or four dwelling units served by a common meter. Multi-family connections with more than four dwelling units are grouped into the WA-6 Commercial rate code and charged based on those rates.

5.3.5.1 Proposed Multi-Family Rates
The proposed rates have been developed within the existing two-tiered inclining block structure, with rates that vary seasonally. The per dwelling unit CCF allotments will remain constant throughout the year. The proposed tier allotments have been set based on water needs for each customer and on the actual usage patterns observed in the customer billing data. Setting tier allotments on a per dwelling unit basis helps to place all accounts on an even playing field and enables tiered rates to appropriately standardize multi-family accounts to target efficiency and peaking, rather than demand alone. • Tier 1 Allotment – Indoor Usage: The proposed tier one allotment is 6 CCF per account per month.

This allotment was calculated based on an assumed 3 persons per household and 47 gallons per capita per day.
• Tier 2: Any usage above 6 CCF per dwelling unit will be charged the tier two rate.

Similar to SFR rates, seasonal adjustment of the tier two rates helps to promote year-round efficient water usage. The seasonal adjustment to the rates was made by allocating a greater share of costs to the tier three summer rate based on the annualized summer to annual average usage peak factor.

The rate calculation for the multi-family rates follows a process nearly identical to that outlined for the SFR rates above, but with only two tiers rather than three. Detailed calculations for the multi-family rates are included for reference in the Appendix. Table 43 below shows the proposed multi-family rates.

FINAL | MAY 2023 | 67
Table 43 Proposed Multi-Family Rates
Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Winter Rates
Tier 1 $1.30 $1.26 $1.34 $1.43 $1.52 $1.62
Tier 2 1.87 1.94 2.07 2.20 2.34 2.49
Summer Rates
Tier 1 $1.30 $1.26 $1.34 $1.43 $1.52 $1.62
Tier 2 2.12 2.23 2.37 2.52 2.69 2.86

5.3.5.2 Multi-Family Bill Impact Analysis
Monthly bill impacts will vary for specific customers based on their level of usage, seasonal peaking, and meter size. An analysis was completed in order to assess and understand the impact of the rate structure updates across a wide variety of customers with differing usage levels and meter sizes. Bill impacts were calculated for various winter and summer percentiles, defined as the levels of consumption at which a given percentage of customers fall at or below. For example, the 10th percentile corresponds to monthly usage of 9 CCF or below in the winter and 12 CCF or below in the summer. The customer attributes for each percentile are shown below in Table 44.

Table 44 Multi-Family Test Customers
Percentile Assumed Meter
Size
Assumed
Dwelling Units Winter CCF Summer CCF Average Annual
Use
10th 3/4" & 5/8" 2 9 12 11
20th 3/4" & 5/8" 2 14 18 16
50th (Median) 3/4" & 5/8" 3 22 28 25
75th 1" 3 34 42 38
90th 1" 4 48 61 55
Figure 16 below shows the average demands of customer accounts at each usage level with their corresponding average monthly bill currently and forecasted for beginning and end of this rate-setting period. On an annual average basis, the majority of customers, about 90 percent, use less than 48 CCF per month in the winter and 61 CCF per month in the summer.

FINAL | MAY 2023 | 68
Figure 16 MFR Average Monthly Bill by Usage Percentile

Figure 17 and Figure 18 present this bill impact as a dollars-per-month forecasted change and annual bill percentage change, respectively. In FY 2023/24 (Year 1), the average monthly bill for a 50th percentile (median) customer will increase by $3.24 per month in FY 2023/24 (Year 1) and an average of $4.68 per month in FY 2024/25 to FY 2027/28 (Years 2 to 5).

Figure 17 MFR Increase in Average Monthly Bill

$39.33
$47.73
$60.57
$101.29
$128.63
$40.23
$50.27
$63.81
$106.29
$134.98
$52.25
$65.14
$82.53
$137.36
$174.19
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
10th
W [9] S [12]
25th
W [14] S [18]
50th
W [22] S [28]
75th
W [34] S [42]
90th
W [48] S [61]
Average Monthly Bill ($)
Current FY 23/24 FY 27/28
$0.90
$2.54
$3.24
$5.00
$6.35
$3.01
$3.72
$4.68
$7.77
$9.80
$0
$2
$4
$6
$8
$10
$12
10th
W [9] S [12]
25th
W [14] S [18]
50th
W [22] S [28]
75th
W [34] S [42]
90th
W [48] S [61]
$/Month
Year 1 Change Year 2-5 Annual

FINAL | MAY 2023 | 69
Figure 18 MFR Annual Bill Increase

Table 45 below presents the average monthly bills for each user under the current rates and under the proposed rates in FY 2023/24 (Year 1) and in FY 2027/28 (Year 5). Also shown are the percentage increases in Year 1 and the average percentage increases for Years 2 through 5.

Table 45 Multi-Family Monthly Bill Impacts
Customer Size
CCF
Usage
Win |
Sum
Dwelling
Units
Avg
Monthly
(Current)
Avg
Monthly
(Year 1)
Annual
Avg %
(Year 1)
Avg
Monthly
(Year 5)
Annual
Avg %
(Year 2-5)
5-Year
Annualized
Increase
10th 9 | 12 2 $39.33 $40.23 ↑2.3% $52.25 ↑6.8% $2.58 25th 14 | 18 2 47.73 50.27 ↑5.3% 65.14 ↑6.7% $3.48 50th (Median) 22 | 28 3 60.57 63.81 ↑5.3% 82.53 ↑6.6% $4.39 75th 34 | 42 3 101.29 106.29 ↑4.9% 137.36 ↑6.6% $7.21 90th 48 | 61 4 128.63 134.98 ↑4.9% 174.19 ↑6.6% $9.11

5.3.6 Commercial and Industrial Rates
Commercial and industrial users are charges using a seasonally adjusted uniform rate. Due to the large degree of demand variability between non-residential users, tiered rate structures are typically not applicable to commercial and industrial rate codes. The proposed rates maintain the current structure with a seasonally adjusted uniform rate with an adjustment to the calculation determining the seasonal adjustment consistent with the calculation for SFR and MFR.

5.3.6.1 Proposed Commercial and Industrial Rates
The proposed Commercial and Industrial rates are calculated in a manner similar to the SFR rates shown above, however the calculation can be simplified because the proposed rates are uniform rather than tiered.

As an example, Table 46 below shows the calculation of the Commercial and Industrial rates for FY 2023/24.

Detailed calculations of the Commercial and Industrial rates are provided for reference in the Appendix. 0%
1%
2%
3%
4%
5%
6%
7%
8%
10th
W [9] S [12]
25th
W [14] S [18]
50th
W [22] S [28]
75th
W [34] S [42]
90th
W [48] S [61]
Year 1 % Year 2-5 Annual %

FINAL | MAY 2023 | 70
Table 46 Commercial and Industrial Rate Calculation (FY 2023/24) Total Winter Summer
Seasonal Factor (For Max Day and Max Hour) 1.00 1.30
Allocated Rev. Req. ($ thousands)
Base $3,344 $1,733 $1,610
Max Day 3,268 1,480 1,788
Max Hour 936 424 512
Supply 1 1,072 555 516
Supply 2 1,059 549 510
Supply 3 3,005 1,558 1,447
Supply 4 891 462 429
Supply Sustainability 347 180 167
Total Rev. Req. $13,921 $6,941 $6,980
Projected Usage (CCF) 7,357,736 3,814,280 3,543,456 Rate $1.82 $1.97
Notes:
(1) Totals may be off due to rounding.

Table 47 below shows the proposed Commercial and Industrial rates for each year of the rate plan. Detailed calculations for other years are included for reference in the Appendix.

Table 47 Proposed Commercial and Industrial Rates
Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Winter Rates
All Usage $1.58 $1.82 $1.92 $2.03 $2.15 $2.27
Summer Rates
All Usage $1.84 $1.97 $2.08 $2.20 $2.33 $2.46
Notes:
(1) Totals may be off due to rounding.

5.3.6.2 Commercial and Industrial Bill Impact Analysis An analysis was completed in order to assess and understand the impact of the rate structure updates across a wide variety of customers with differing usage levels and meter sizes. Bill impacts were calculated for various winter and summer percentiles, defined as the levels of consumption at which a given percentage of customers fall at or below. For example, the 10th percentile corresponds to monthly usage of 2 CCF or below in the winter and 3 CCF or below in the summer. The customer attributes for each percentile are shown below in Table 48.

FINAL | MAY 2023 | 71
Table 48 Commercial and Industrial Test Customers
Percentile Assumed Meter
Size Winter CCF Summer CCF Average Annual
Use
10th 3/4" & 5/8" 2 3 3
20th 3/4" & 5/8" 9 11 10
50th (Median) 1" 33 41 37
75th 2" 102 133 118
90th 3" 285 360 323
Figure 19 below shows the average demands of customer accounts at each usage level with their corresponding average monthly bill currently and forecasted for beginning and end of this rate-setting period. On an annual average basis, the majority of customers, about 90 percent, use less than 285 CCF per month in the winter and 360 CCF per month in the summer.

Figure 19 Commercial/Industrial Average Monthly Bill by Usage Percentile

Figure 20 and Figure 21 present this bill impact as a dollars-per-month forecasted change and annual bill percentage change, respectively. In FY 2023/24 (Year 1), the average monthly bill for a 50th percentile (median) customer will increase by $8.78 per month in FY 2023/24 (Year 1) and an average of $7.55 per month in FY 2024/25 to FY 2027/28 (Years 2 to 5).

$30.14
$42.73
$103.11
$320.62
$769.71
$31.90
$45.89
$111.89
$347.43
$838.77
$41.36
$58.83
$142.08
$440.95
$1,060.38
$0
$200
$400
$600
$800
$1,000
$1,200
10th
W [2] S [3]
25th
W [9] S [11]
50th
W [33] S [41]
75th
W [102] S [133]
90th
W [285] S [360]
Average Monthly Bill ($)
Current FY 23/24 FY 27/28

FINAL | MAY 2023 | 72
Figure 20 Commercial/Industrial Increase in Average Monthly Bill

Figure 21 Commercial/Industrial Annual Bill Increase

Table 49 below presents the average monthly bills for each user under the current rates and under the proposed rates in FY 2023/24 (Year 1) and in FY 2027/28 (Year 5). Also shown are the percentage increases in Year 1 and the average percentage increases for Years 2 through 5. $1.76
$3.16
$8.78
$26.81
$69.06
$2.37
$3.24
$7.55
$23.38
$55.40
$0
$10
$20
$30
$40
$50
$60
$70
$80
10th
W [2] S [3]
25th
W [9] S [11]
50th
W [33] S [41]
75th
W [102] S [133]
90th
W [285] S [360]
$/Month
Year 1 Change Year 2-5 Annual
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
10th
W [2] S [3]
25th
W [9] S [11]
50th
W [33] S [41]
75th
W [102] S [133]
90th
W [285] S [360]
Year 1 % Year 2-5 Annual %

FINAL | MAY 2023 | 73
Table 49 Commercial/Industrial Monthly Bill Impacts
Customer Size CCF Usage
Win | Sum
Avg
Monthly
(Current)
Avg
Monthly
(Year 1)
Annual
Avg %
(Year 1)
Avg
Monthly
(Year 5)
Annual
Avg %
(Year 2-5)
5-Year
Annualized
Increase
10th 2 | 3 $30.14 $31.90 ↑5.8% $41.36 ↑6.7% $2.24 25th 9 | 11 42.73 45.89 ↑7.4% 58.83 ↑6.4% $3.22
50th (Median) 33 | 41 103.11 111.89 ↑8.5% 142.08 ↑6.2% $7.79 75th 102 | 133 320.62 347.43 ↑8.4% 440.95 ↑6.1% $24.07 90th 285 | 360 769.71 838.77 ↑9.0% 1,060.38 ↑6.0% $58.13

5.3.7 Landscape Irrigation Rates
Under the existing rate structure, landscape irrigation users are placed into varying rate classes. Most users fall into the Commercial/Industrial rate class (WA-6) but there are a small number of users flagged as Landscape irrigation accounts previously within the WA-1 (Residential) class. Landscape users typically place a higher peak burden on the water system as they use water heavily in the hottest and driest summer months, with significantly less usage in the winter. Thus, the previous Study appropriately separated Landscape users into a unique rate class that reflects the increased burden that they place on the system.

5.3.7.1 Proposed Landscape Rates
Similar to the seasonal calculation for Commercial/Industrial WA-6, the proposed landscape rates distinguish a winter and summer rate due to their heavy demand during dry months. Table 50 below shows the calculation of the Landscape rates for FY 2023/24. The total volumetric costs allocated to the landscape customers are split between summer and winter based on the annualized summer to annualized winter peak factor. Those seasonal costs are then divided by the projected consumption for each season to calculate the volumetric rates. Detailed calculations of the Landscape rates are provided for reference in the Appendix.

Table 50 Landscape Rate Calculation (FY 2023/24)
FY 2023/24 Total Winter Summer
Seasonal Factor (For Max Day and Max Hour) 1.00 1.75
Allocated Rev. Req. ($ thousands)
Base $345 $153 $192
Max Day 558 175 383
Max Hour 100 31 69
Supply 1 95 42 53
Supply 2 94 42 52
Supply 3 357 159 199
Supply 4 106 47 59
Supply Sustainability 59 26 33
Total Rev. Req. $1,714 $676 $1,039
Projected Usage (CCF) 759,116 337,300 421,816
Rate $2.00 $2.46
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 74
Table 51 below shows the proposed Landscape rates for each year of the rate plan. Existing rates are included for reference in the Appendix.

Table 51 Proposed Landscape Rates
Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Winter Rates
All Usage $1.67 $2.00 $2.11 $2.23 $2.36 $2.49
Summer Rates
All Usage $2.14 $2.46 $2.60 $2.74 $2.90 $3.06

5.3.7.2 Landscape Irrigation Bill Impact Analysis
Monthly bill impacts will vary for specific customers based on their level of usage, seasonal peaking, and meter size. An analysis was completed in order to assess and understand the impact of the rate structure updates across a wide variety of customers with differing usage levels and meter sizes. Bill impacts were calculated for various winter and summer percentiles, defined as the levels of consumption at which a given percentage of customers fall at or below. For example, the 10th percentile corresponds to monthly usage of 9 CCF or below in the winter and 15 CCF or below in the summer. The customer attributes for each percentile are shown below in Table 52.

Table 52 Landscape Test Customers
Percentile Assumed Meter
Size Winter CCF Summer CCF Average Annual
Use
10th 3/4" 9 15 12
20th 3/4" 26 43 35
50th (Median) 1.5” 76 130 103
75th 2" 175 297 236
90th 3" 366 567 466
Figure 22 shows the average demands of customer accounts at each usage level with their corresponding average monthly bill currently and forecasted for beginning and end of this rate-setting period. On an annual average basis, the majority of customers, about 90 percent, use less than 366 CCF per month in the winter and 567 CCF per month in the summer.

FINAL | MAY 2023 | 75
Figure 22 Landscape Average Monthly Bill by Usage Percentile

Figure 23 and Figure 24 present this bill impact as a dollars-per-month forecasted change and annual bill percentage change, respectively. In FY 2023/24 (Year 1), the average monthly bill for a 50th percentile (median) customer will increase by $35.44 per month in FY 2023/24 (Year 1) and an average of $19.84 per month in FY 2024/25 to FY 2027/28 (Years 2 to 5).

Figure 23 Landscape Increase in Average Monthly Bill

$48.14
$89.67
$269.03
$559.70
$1,093.15
$53.19
$101.72
$304.47
$638.27
$1,248.87
$67.84
$128.23
$383.84
$802.06
$1,568.53
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
10th
W [9] S [15]
25th
W [26] S [43]
50th
W [76] S [130]
75th
W [174.75] S [297]
90th
W [366] S [567]
Average Monthly Bill ($)
Current FY 23/24 FY 27/28
$5.05
$12.05
$35.44
$78.57
$155.72
$3.66
$6.63
$19.84
$40.95
$79.92
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
10th
W [9] S [15]
25th
W [26] S [43]
50th
W [76] S [130]
75th
W [174.75] S [297]
90th
W [366] S [567]
$/Month
Year 1 Change Year 2-5 Annual

FINAL | MAY 2023 | 76
Figure 24 Landscape Annual Bill Increase

Table 53 below presents the average monthly bills for each user under the current rates and under the proposed rates in FY 2023/24 (Year 1) and in FY 2027/28 (Year 5). Also shown are the percentage increases in Year 1 and the average percentage increases for Years 2 through 5.

Table 53 Landscape Monthly Bill Impacts
Customer
Size
CCF Usage
Win | Sum
Avg
Monthly
(Current)
Avg
Monthly
(Year 1)
Annual
Avg %
(Year 1)
Avg
Monthly
(Year 5)
Annual
Avg %
(Year 2-5)
5-Year
Annualized
Increase
10th 9 | 15 $48.14 $53.19 ↑10.5% $67.84 ↑6.3% $3.94 25th 26 | 43 89.67 101.72 ↑13.4% 128.23 ↑6.0% $7.71 50th (Median) 76 | 130 269.03 304.47 ↑13.2% 383.84 ↑6.0% $22.96 75th 175 | 297 559.70 638.27 ↑14.0% 802.06 ↑5.9% $48.47 90th 366 | 567 1,093.15 1,248.87 ↑14.2% 1,568.53 ↑5.9% $95.08

5.3.8 Temporary Service Rates
The Temporary Service WA-2 rate class is primarily used by developers or contractors to provide water service for construction sites. The current rate structure consists of a daily meter rental fee of $13.90 per day, with a maximum rental charge of $416.87 per month. The rate for all usage is $2.39 per CCF, there is no monthly fixed charge. Under the proposed rate structure, Temporary Service users would continue to pay a meter rental fee and volumetric charge.

5.3.8.1 Fees and Charges for Fire Hydrant Meters
Temporary service customers at construction sites are served via a metered connection to a fire hydrant.

The daily rental fee that they pay includes a component to cover the cost of the 3-inch meter and backflow prevention unit that is connected to serve each customer, as well as a daily fixed service charge component based on the proposed fixed service charges.
0%
2%
4%
6%
8%
10%
12%
14%
16%
10th
W [9] S [15]
25th
W [26] S [43]
50th
W [76] S [130]
75th
W [174.75] S [297]
90th
W [366] S [567]
Year 1 % Year 2-5 Annual %

FINAL | MAY 2023 | 77
The meter cost component is calculated by dividing the annualized cost of the meter by the estimated annual days in service, then applying an adjustment to account for the 11.5 percent general fund transfer.

The meter cost component is escalated annually based on the capital escalation factor of 2.85 percent per year. The daily fixed service charge component is calculated by multiplying the proposed monthly charge for a 3-inch meter by 12 and dividing by 360.

Table 54 below shows the calculation of the daily rental fee for FY 2023/24. The maximum monthly charge is calculated by adding 30 days of the daily meter cost with the general fund transfer to the proposed monthly fixed service charge for a 3-inch meter.

Table 54 Temporary Service Daily Rental Fee Calculation (FY 2023/24) Daily Rental Fee FY 2023/24
Meter Cost $2,603
Depreciable Life (Years) 5
Annualized Cost $521
Utilization 25%
Annual Days in Service 90
Daily Meter Cost $5.78
General Fund Transfer (GFT) 11.50%
Daily Meter Cost with GFT $6.45

3” Meter Charge $240.69
Daily Fixed Charge $8.02

Total Daily Rental Fee
(Sum of Daily Meter Cost with GFT and Daily Fixed Charge) $14.47 Maximum Monthly Charge $434.14
Notes:
(1) Totals may be off due to rounding.

Table 55 below shows the proposed daily rental fees and maximum monthly charges for each year of the rate plan. Detailed calculations of the daily rental fee and maximum monthly charge are included for reference in the Appendix.

Table 55 Proposed Temporary Service Daily Rental Fees and Maximum Monthly Charges Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Daily Rental Fee $13.90 $14.47 $15.21 $15.99 $16.81 $17.68 Maximum Monthly Charge 416.87 434.14 456.19 479.55 504.39 530.47

FINAL | MAY 2023 | 78

5.3.8.2 Proposed Temporary Service Rates
The proposed Temporary Service rates are calculated using a simplified methodology of the Commercial and Industrial rates above, which is modified because the rates are not seasonally adjusted. As an example, Table 56 below shows the calculation of the Temporary Service rates for FY 2023/24. Detailed calculations of the Temporary Service rates are provided for reference in the Appendix.

Table 56 Temporary Service Rate Calculation (FY 2023/24) FY 2023/24
Allocated Rev. Req. ($ thousands)
Base $20
Max Day 61
Max Hour 6
Supply 1 4
Supply 2 4
Supply 3 26
Supply 4 8
Supply Sustainability 7
Total Rev. Req. $135
Projected Usage (CCF) 44,394
Rate $3.05
Notes:
(1) Totals may be off due to rounding.

Table 57 below shows the proposed Temporary Service rates for each year of the rate plan. Though the volumetric charge represents a decrease as compared to the existing rates, imposition of a prorated daily fixed charge will result in an increase overall for most Temporary Service Users.

Table 57 Proposed Temporary Service Rates
Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 All Usage $2.39 $3.05 $3.27 $3.50 $3.76 $4.03

5.3.9 Riverside Water Company Irrigators Rates
The Irrigation metered service WA-4 rates provide service to primarily residential customers located in a specific region of RPU’s service area who were shareholders in the Riverside Water Company. When RPU acquired Riverside Water Company and as a condition of acquisition, these customers transferred water rights from the Riverside Water Company to RPU. This rate class is closed to new users and RPU intends to phase it out in accord with the acquisition agreement. The current rate structure is a three-tiered volumetric rate with a tier one allotment of 15 CCF per month, and a tier two allotment of 70 CCF per month. All usage over 70 CCF per month is charges at the tier three rate. The rates are seasonally adjusted.

5.3.9.1 Proposed Riverside Water Company Irrigators Rates The proposed rates maintain the current structure and update the volumetric rates based on the cost of service analysis. Volumetric rates for each tier are calculated using the same methodology as that used to calculate the SFR rates described previously. Detailed calculations for the rates are included for reference in the Appendix. Table 58 below shows the proposed Riverside Water Company Irrigators rates.

FINAL | MAY 2023 | 79
Table 58 Proposed Riverside Water Company Irrigators Rates Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Winter Rates
Tier 1 $1.32 $1.40 $1.50 $1.60 $1.72 $1.84
Tier 2 1.54 2.14 2.30 2.47 2.65 2.83
Tier 3 2.46 4.13 4.43 4.75 5.10 5.46
Summer Rates
Tier 1 $1.32 $1.40 $1.50 $1.60 $1.72 $1.84
Tier 2 1.58 2.14 2.30 2.47 2.65 2.83
Tier 3 3.17 5.30 5.69 6.10 6.54 7.01

5.3.10 Interruptible City Irrigation and Recycled Water Rates In general, interruptible service and rates are most appropriate for customers whose service can be reliably curtailed or service can be shut off without implication for public health and safety. For RPU the accounts that fall into that category are the City irrigation accounts, primarily those for parks and medians irrigation, and recycled water accounts, because the water consumed is used exclusively for irrigation. Equally as important, because the City is the customer, RPU has certainty that service can be shut off on demand for extended periods of time without breaching service requirements or agreements.

After the previous Study, Recycled water users WA-10 combined with Interruptible WA-7 users because of their similarities in usage patterns, customer characteristics, and the level of service provided.

The rates for WA-7 and WA-10 users are developed to reflect the interruptible nature of the service, and therefore do not include costs associated with supply resiliency. In the event that system wide usage must be curtailed, or if a system failure or other event leads to a decrease in available supplies, the interruptible accounts can be shut off, leaving their share of supply available to serve other users.

5.3.10.1 Proposed Interruptible City Irrigation and Recycled Water Rates The proposed Interruptible WA-7 and WA-10 rates are calculated using the same methodology as that discussed above for Temporary Service WA-2. As an example, Table 59 below shows the calculation of the Interruptible WA-7 rates for FY 2023/24.

FINAL | MAY 2023 | 80
Table 59 Interruptible City Irrigation and Recycled Water Rate Calculation (FY 2023/24) FY 23/24
Allocated Rev. Req. ($ thousands)
Base $367
Max Day 335
Max Hour 109
Supply 1 93
Supply 2 92
Supply 3 353
Supply 4 -
Supply Sustainability -
Total Rev. Req. $1,348
Projected Usage (CCF) 807,384
Rate $1.67
Notes:
(1) Totals may be off due to rounding.

Table 60 presents the rates for each year of the rate plan. Detailed calculations of the Interruptible and Recycled WA-7/WA-10 rates are provided for reference in the Appendix.

Table 60 Proposed Interruptible City Irrigation and Recycled Water Rates Tier Existing FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
All Usage $1.57 $1.67 $1.77 $1.87 $1.97 $2.09

5.3.10.2 Interruptible City Irrigation and Recycled Water Bill Impact Analysis Monthly bill impacts will vary for specific customers based on their level of usage, seasonal peaking, and meter size. An analysis was completed in order to assess and understand the impact of the rate structure updates across a wide variety of customers with differing usage levels and meter sizes. Bill impacts were calculated for various winter and summer percentiles, defined as the levels of consumption at which a given percentage of customers fall at or below. For example, the 10th percentile corresponds to monthly usage of 5 CCF or below in the winter and 8 CCF or below in the summer. The customer attributes for each percentile are shown in Table 61.

FINAL | MAY 2023 | 81
Table 61 Interruptible Irrigation and Recycled Water Test Customers Percentile Assumed Meter
Size Winter CCF Summer CCF Average Annual
Use
10th 3/4" 5 8 7
20th 3/4" 15 21 18
50th (Median) 1” 45 66 55
75th 2" 134 231 183
90th 3" 398 762 580
Figure 25 below shows the average demands of customer accounts at each usage level with their corresponding average monthly bill currently and forecasted for beginning and end of this rate-setting period. On an annual average basis, the majority of customers, about 90 percent, use less than 398 CCF per month in the winter and 762 CCF per month in the summer.

Figure 25 Interruptible Irrigation and Recycled Water Average Monthly Bill by Usage Percentile

Figure 26 and Figure 27 present this bill impact as a dollars-per-month forecasted change and annual bill percentage change, respectively. In FY 2023/24 (Year 1), the average monthly bill for a 50th percentile (median) customer will increase by $7.31 per month in FY 2023/24 (Year 1) and an average of $8.94 per month in FY 2024/25 to FY 2027/28 (Years 2 to 5).

$35.81
$53.48
$125.65
$398.47
$1,094.01
$37.75
$56.54
$132.96
$421.25
$1,158.63
$48.70
$72.22
$168.70
$534.09
$1,462.79
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
10th
W [5] S [8]
25th
W [15] S [21]
50th
W [45] S [66]
75th
W [134] S [231]
90th
W [398] S [762]
Average Monthly Bill ($)
Current FY 23/24 FY 27/28

FINAL | MAY 2023 | 82
Figure 26 Interruptible Irrigation and Recycled Water Increase in Average Monthly Bill

Figure 27 Interruptible Irrigation and Recycled Water Annual Bill Increase

Table 62 presents the average monthly bills for each user under the current rates and under the proposed rates in FY 2023/24 (Year 1) and in FY 2027/28 (Year 5). Also shown are the percentage increases in Year 1 and the average percentage increases for Years 2 through 5. $1.94
$3.06
$7.31
$22.78
$64.62
$2.74
$3.92
$8.94
$28.21
$76.04
$0
$10
$20
$30
$40
$50
$60
$70
$80
10th
W [5] S [8]
25th
W [15] S [21]
50th
W [45] S [66]
75th
W [134] S [231]
90th
W [398] S [762]
$/Month
Year 1 Delta Year 2-5 Annual

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%
10th
W [5] S [8]
25th
W [15] S [21]
50th
W [45] S [66]
75th
W [134] S [231]
90th
W [398] S [762]
Year 1 % Year 2-5 Annual %

FINAL | MAY 2023 | 83
Table 62 Interruptible Irrigation and Recycled Water Monthly Bill Impacts Customer Size
CCF
Usage
Win | Sum
Avg
Monthly
(Current)
Avg
Monthly
(Year 1)
Annual Avg
%
(Year 1)
Avg Monthly
(Year 5)
Annual
Avg %
(Year 2-5)
5-Year
Annualized
Increase
10th 5 | 8 $35.81 $37.75 ↑5.4% $48.70 ↑6.6% $2.58
25th 15 | 21 53.48 56.54 ↑5.7% 72.22 ↑6.3% 3.75
50th (Median) 45 | 66 125.65 132.96 ↑5.8% 168.70 ↑6.1% 8.61 75th 134 | 231 398.47 421.25 ↑5.7% 534.09 ↑6.1% 27.12 90th 398 | 762 1,094.01 1,158.63 ↑5.9% 1,462.79 ↑6.0% 73.76

5.4 Outside City Surcharge
Along with customers within the City of Riverside, RPU provides water service to about 4,000 residential, commercial, industrial, and landscape accounts that are located outside of City limits. Because these customers are located outside City limits, RPU incurs additional capital and operating costs to provide them with water service. To recover those costs, the rates charged to outside City users include a percentage surcharge based on the incremental capital and operational costs that they require. The current Outside City Surcharge is 47 percent, thus users pay 1.47 times the In-City rate for comparable service.

5.4.1.1 Proposed Outside City Surcharge
The Outside City Surcharge was updated as a component of the cost of service analysis. The calculation of the updated surcharge includes three main steps: (1) determine the incremental costs associated with providing service to outside City users, (2) determine the amount of revenue generated by outside City users without applying the surcharge, and (3) divide the incremental costs (step 1) by the revenue without the surcharge (step 2) to determine the required Outside City Surcharge. The calculations are completed using the five-year total incremental costs and revenues to provide rate stability.

5.4.1.2 Incremental Costs
The incremental capital and O&M costs were determined based on information provided by RPU’s engineering and operations departments. The Outside City user’s share of capital assets (facilities and pipelines), energy needs, and flow was evaluated based on RPU’s hydraulic model and system schematic.

Capital costs are annualized based on accounting depreciation assuming a 50 year life for pipelines and a 30 year life for facilities. The annual cost was then escalated at 2.85 percent per year, consistent with the capital escalation factor used throughout the pro forma and cost of service analysis.

Energy costs are estimated based on the amount of energy required to serve outside City users annually (kWh) and an assumed energy cost. Energy costs are escalated at 2.8 percent per year consistent with the escalation factors in the pro forma. Table 63 summarizes the costs associated with serving outside City users. Detailed calculations of the capital and energy costs are included for reference in the Appendix.

FINAL | MAY 2023 | 84
Table 63 Projected Outside City Costs ($ thousands)
Outside City
Costs FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Five-Year Total
Capital Costs $2,002 $2,059 $2,118 $2,178 $2,240 $10,598 Energy Costs 70 72 75 78 81 375
Total Outside
City Costs
$2,072 $2,131 $2,193 $2,256 $2,321 $10,973
Notes:
(1) Totals may be off due to rounding.

5.4.1.3 Revenues without Surcharge
The estimated revenues from outside City users without the surcharge were calculated by applying the proposed inside City volumetric rates presented within this report to the projected outside City usage, and adding the expected fixed revenues based on the number of accounts by meter size. Table 64 below summarizes the projected revenues, detailed calculations are included for reference in the Appendix.

5.4.1.4 Surcharge Calculation
The proposed outside City surcharge of 50 percent has been calculated by dividing the total incremental costs for FY 2023/24 through FY 2027/28 by the projected revenues without the surcharge for the same period. Using this five year approach mitigates year-over-year changes to the surcharge, while recovering cost equitably from outside City users. Table 65 below presents the calculation of the proposed Outside City Surcharge, detailed calculations are included for reference in the Appendix.

Table 64 Outside City Revenues Without Surcharge
Outside City Revenues FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Five-Year
Total
Total Variable Revenue
without Surcharge
$2,069 $2,285 $2,462 $2,639 $2,889 $12,344
Total Fixed Revenue without
Surcharge
1,610 1,762 1,926 2,105 2,298 9,702
Total Outside City Without
Surcharge
$3,680 $4,046 $4,388 $4,744 $5,187 $22,046
Notes:
(1) Totals may be off due to rounding.

Table 65 Outside City Surcharge Calculation
Outside City Costs FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Five-Year
Total
Total Revenues Without
Surcharge
$3,680 $4,046 $4,388 $4,744 $5,187 $22,046
Surcharge Costs to Collect $2,072 $2,131 $2,193 $2,256 $2,321 10,973 Required Percentage Surcharge 50%
Notes:
(1) Totals may be off due to rounding.

FINAL | MAY 2023 | 85

5.5 Demand Reduction Rates
Due to the variability of water demand and need for financial resiliency, the COSA developed demand reduction rates. The demand reduction rates are an alternate set of monthly fixed charges and variable rates that may be imposed by RPU during levels of extreme water demand reductions, taking the place of the normal rate structure. The objective of these rates is to provide cost recovery to the agency if customers’ potable water usage declines as a result of expanded or future water shortage conditions. As discussed previously, many of RPU’s costs are fixed, in that they do not fluctuate with changes in water demands.

The demand reduction rates would be adopted by the City Council along with the normal rates through the Proposition 218 process but would not be charged to customers automatically. Rather, the rates would be approved and available for implementation by the Council if needed. When the Council implements the WSCP or when it reviews or changes the WSCP stage, they could optionally implement the corresponding drought rates to mitigate potential revenue shortfalls.

Based on an extreme water curtailment period, the RPU estimated three potential demand reduction scenarios. Because the ongoing drought has led to projected water usage that is much lower than historic norms, additional cutbacks in the drought scenarios have been capped to 30 percent.

Demand Reduction Stage 1 would equate to a slight reduction in demands (15 percent).

Demand Reduction Stage 2 would equate to a larger reduction in demands (20 percent).

Demand Reduction Stage 3 would equate to the maximum expected reduction in demands (30 percent).

The demand reductions for each stage are set to relate to historic levels of demand based on the average demands for FY 2019/20 through FY 2021/22. Since the overall analysis includes an assumed 10-percent reduction from that level as a baseline assumption, the projected demands for each demand reduction stage are adjusted accordingly. For example, the projected demands for Demand Reduction Stage 1 are calculated assuming an additional 5-percent reduction to the baseline analysis, for a total reduction from historic demands of 15-percent.

To safeguard against these significant financial implications, RPU is proposing to implement the following Demand Reduction Surcharge rates. Once in effect, these surcharges will help to provide revenues needed to continue to meet RPU’s expenditures and debt obligations, despite significant reductions in demand/sales.

5.5.1.1 Proposed Demand Reduction Rates
The Proposed Demand Reduction rates are designed to recover revenues through both RPU’s fixed monthly service charge and the water commodity charges. For example, in Stage 1 (15 percent usage reduction), 10 percent of the forecasted revenue shortfall would be funded through a fixed surcharge on a meter equivalent basis. The remaining costs would be collected by increases to the volumetric rates. This approach recovers a portion of RPU’s fixed expenditures in proportion to each customer’s reserved capacity within the system and the remaining portion based on each customer’s usage of the system and water purchases.

The tables below present the proposed Demand Reduction rates for each reduction scenario. The rates presented are for the specified usage reduction. Additionally, the rate calculations are based on assumed water demand reductions by customer class and class tier. Because it is not possible to exactly predict how customer demands might change across customer classes and tiers, it is important for RPU to monitor revenues and adjust if and as necessary. The usage reductions by tier are reasonable, based on usage pattern changes, but cannot be guaranteed.

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5.5.1.2 Stage 1 Demand Reduction: 15 percent
The Stage 1 demand reduction rates have been calculated assuming a 15 percent departure from historical demand levels. Ten percent of the reduction in revenues will be recovered through the fixed service charge on a per MEU basis, the remaining 90 percent will be recovered through increases to the volumetric rates.

Table 66 Fixed Service Charges for Reduction Stage 1: 15 Percent Meter Size FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 3/4" & 5/8" $27.53 $29.43 $31.45 $33.63 $35.93 1" 43.57 46.56 49.76 53.21 56.84

1.5" 83.28 89.01 95.13 101.71 108.66
2" 131.14 140.15 149.79 160.15 171.09
3" 242.88 259.57 277.42 296.60 316.86
4" 402.48 430.12 459.71 491.48 525.06
6" 881.02 941.54 1,006.29 1,075.85 1,149.35
8" 1,439.25 1,538.11 1,643.89 1,757.52 1,877.58 10" 2,236.75 2,390.39 2,554.78 2,731.37 2,917.95 12" 3,193.85 3,413.23 3,647.95 3,900.10 4,166.53 Table 67 Volumetric Rates for Reduction Stage 1: 15 Percent Class and Tier CCF FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Single Family Residential
Winter Tier 1 First 8 $1.29 $1.37 $1.46 $1.56 $1.66 Winter Tier 2 8-35 1.87 1.99 2.12 2.26 2.40
Winter Tier 3 >35 3.27 3.48 3.71 3.95 4.21
Summer Tier 1 First 8 1.29 1.37 1.46 1.56 1.66 Summer Tier 2 8-35 1.87 1.99 2.12 2.26 2.40
Summer Tier 3 >35 4.15 4.42 4.71 5.02 5.34
Multi-Family Residential
Winter Tier 1 First 6 $1.29 $1.37 $1.46 $1.56 $1.66 Winter Tier 2 >7 2.08 2.21 2.36 2.51 2.67
Summer Tier 1 First 6 1.29 1.37 1.46 1.56 1.66 Summer Tier 2 >7 2.38 2.54 2.70 2.88 3.06
Commercial/Industrial
Winter All $1.93 $2.04 $2.15 $2.28 $2.41
Summer All 2.09 2.21 2.33 2.47 2.61

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Class and Tier CCF FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Landscape
Winter All $2.16 $2.29 $2.42 $2.56 $2.70
Summer All 2.64 2.79 2.95 3.12 3.30
Interruptible/Recycled
Non-Seasonal All $1.78 $1.88 $1.99 $2.11 $2.23
Flat Temporary Service
Non-Seasonal All $3.17 $3.40 $3.64 $3.91 $4.19
Riverside Irrigators
Winter Tier 1 First 15 $1.43 $1.53 $1.64 $1.76 $1.89 Winter Tier 2 16-70 2.20 2.36 2.53 2.71 2.91
Winter Tier 3 >70 4.68 5.02 5.38 5.78 6.19
Summer Tier 1 First 15 1.43 1.53 1.64 1.76 1.89 Summer Tier 2 16-70 2.20 2.36 2.53 2.71 2.91
Summer Tier 3 >70 5.90 6.33 6.79 7.28 7.81

5.5.1.3 Stage 2 Demand Reduction: 20 Percent
The Stage 2 demand reduction rates have been calculated assuming a 20 percent departure from historical demands. Ten percent of the reduction in revenues will be recovered through the fixed service charge on a per MEU basis, the remaining 90 percent will be recovered through increases to the volumetric rates.

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Table 68 Fixed Service Charges for Reduction Stage 2: 20 Percent Meter Size FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 3/4" & 5/8" $27.75 $29.66 $31.70 $33.90 $36.22 1" 43.93 46.95 50.18 53.65 57.32

1.5" 84.02 89.79 95.97 102.60 109.61
2" 132.31 141.40 151.13 161.57 172.61
3" 245.08 261.91 279.92 299.28 319.72
4" 406.14 434.03 463.88 495.95 529.83
6" 889.08 950.14 1,015.48 1,085.68 1,159.84
8" 1,452.42 1,552.18 1,658.92 1,773.60 1,894.76 10" 2,257.24 2,412.28 2,578.15 2,756.38 2,944.67 12" 3,223.12 3,444.50 3,681.35 3,935.83 4,204.70 Table 69 Volumetric Rates for Reduction Stage 2: 20 Percent Class and Tier CCF FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Single Family Residential
Winter Tier 1 First 8 $1.32 $1.41 $1.50 $1.60 $1.71 Winter Tier 2 8-35 1.89 2.02 2.15 2.29 2.44
Winter Tier 3 >35 3.61 3.85 4.10 4.37 4.65
Summer Tier 1 First 8 1.32 1.41 1.50 1.60 1.71 Summer Tier 2 8-35 1.89 2.02 2.15 2.29 2.44
Summer Tier 3 >35 4.51 4.81 5.12 5.46 5.81
Multi-Family Residential
Winter Tier 1 First 6 $1.32 $1.41 $1.50 $1.60 $1.70 Winter Tier 2 >7 2.24 2.39 2.55 2.71 2.89
Summer Tier 1 First 6 1.32 1.41 1.50 1.60 1.70 Summer Tier 2 >7 2.56 2.73 2.91 3.10 3.30
Commercial/Industrial
Winter All $2.05 $2.17 $2.29 $2.43 $2.56
Summer All 2.22 2.35 2.48 2.63 2.78
Landscape
Winter All $2.34 $2.48 $2.62 $2.77 $2.93

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Class and Tier CCF FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Summer All 2.87 3.03 3.21 3.39 3.58
Interruptible/Recycled
Non-Seasonal All $1.91 $2.02 $2.14 $2.26 $2.39
Flat Temporary Service
Non-Seasonal All $3.30 $3.54 $3.80 $4.08 $4.37
Riverside Irrigators
Winter Tier 1 First 15 $1.49 $1.60 $1.71 $1.84 $1.97 Winter Tier 2 16-70 2.24 2.40 2.58 2.76 2.96
Winter Tier 3 >70 5.34 5.73 6.15 6.60 7.07
Summer Tier 1 First 15 1.49 1.60 1.71 1.84 1.97 Summer Tier 2 16-70 2.24 2.40 2.58 2.76 2.96
Summer Tier 3 >70 6.58 7.07 7.58 8.14 8.73

5.5.1.4 Stage 3 Demand Reduction: 30 Percent
The Stage 3 demand reduction rates have been calculated assuming a 30 percent departure from historical demands. Ten percent of the reduction in revenues will be recovered through the fixed service charge on a per MEU basis, the remaining 90 percent will be recovered through increases to the volumetric rates.

Table 70 Fixed Service Charges for Reduction Stage 3: 30 Percent Meter Size FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 3/4" & 5/8" $28.24 $30.19 $32.26 $34.50 $36.85 1" 44.75 47.83 51.12 54.65 58.39

1.5" 85.65 91.53 97.83 104.59 111.74
2" 134.92 144.19 154.11 164.76 176.02
3" 249.98 267.15 285.52 305.26 326.12
4" 414.32 442.77 473.21 505.93 540.49
6" 907.07 969.36 1,035.99 1,107.63 1,183.30
8" 1,481.86 1,583.63 1,692.48 1,809.52 1,933.13 10" 2,303.03 2,461.19 2,630.36 2,812.25 3,004.36 12" 3,288.54 3,514.37 3,755.92 4,015.66 4,289.97

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Table 71 Volumetric Rates for Reduction Stage 3: 30 Percent Class and Tier CCF FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
Single Family Residential
Winter Tier 1 First 8 $1.46 $1.56 $1.66 $1.77 $1.89 Winter Tier 2 8-35 2.01 2.15 2.29 2.44 2.60
Winter Tier 3 >35 4.66 4.97 5.30 5.66 6.03
Summer Tier 1 First 8 1.46 1.56 1.66 1.77 1.89 Summer Tier 2 8-35 2.01 2.15 2.29 2.44 2.60
Summer Tier 3 >35 5.54 5.91 6.30 6.72 7.16
Multi-Family Residential
Winter Tier 1 First 6 $1.44 $1.54 $1.64 $1.75 $1.86 Winter Tier 2 >7 2.64 2.82 3.01 3.21 3.42
Summer Tier 1 First 6 1.44 1.54 1.64 1.75 1.86 Summer Tier 2 >7 3.01 3.21 3.42 3.65 3.89
Commercial/Industrial
Winter All $2.36 $2.50 $2.65 $2.81 $2.97
Summer All 2.56 2.71 2.87 3.04 3.22
Landscape
Winter All $2.82 $2.98 $3.16 $3.34 $3.54
Summer All 3.49 3.69 3.91 4.14 4.37
Interruptible/Recycled
Non-Seasonal All $2.24 $2.38 $2.52 $2.67 $2.82
Flat Temporary Service
Non-Seasonal All $3.61 $3.88 $4.17 $4.47 $4.80
Riverside Irrigators
Winter Tier 1 First 15 $1.71 $1.84 $1.97 $2.12 $2.27 Winter Tier 2 16-70 2.33 2.50 2.68 2.88 3.09
Winter Tier 3 >70 6.76 7.27 7.81 8.39 9.00
Summer Tier 1 First 15 1.71 1.84 1.97 2.12 2.27 Summer Tier 2 16-70 2.33 2.50 2.68 2.88 3.09
Summer Tier 3 >70 8.06 8.66 9.31 10.00 10.73

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Section 6

LEGAL REQUIREMENTS

6.1 Introduction
Carollo’s analysis provides the record illustrating how RPU develops rates in conformance with cost of service principles. The discussion below sets forth the legal framework under which Carollo evaluated RPU’s rates.

RPU's water rates and rate setting process must adhere to California constitutional and statutory requirements. Procedural requirements apply to the rate-setting process. The principal substantive requirements governing the rates are that revenues recovered through the rates do not exceed costs, and that the costs recovered from users do not exceed the cost for such service. The cost of service principles used for this analysis include these substantive requirements.

RPU's water rate structure includes tiered rates for some customer classes. The use of tiered water rates has been determined to be consistent with constitutional requirements pertaining to reasonable cost of service.

The 2015 opinion in Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano (“San Juan”) upheld tiered water rates under California Constitution Article XIII D (enacted by Proposition 218), noting that the tiers must correspond to the actual cost of furnishing service at a given level of usage. However, the San Juan Court held that the City of San Juan Capistrano did not attempt to calculate the actual costs of providing water at various tier levels. In reaching its conclusions, the San Juan Court treated all of the tiers as property-related services subject to Article XIII D, as interpreted by the California Supreme Court in its 2006 decision in Bighorn-Desert View Water Agency v. Verjil, 39 Cal. 4th 205 (2006) (“Bighorn”), that charges for domestic water delivery are charges for a property related service. On the facts and arguments presented in San Juan, the Court found no basis for altering its application of Article XIII D in either Article XIII C (“Proposition 26”) or Article X, Section 2 (“Article X”).

Further judicial and legislative interpretation may provide additional guidance in the use of tiered water rates, including the application of Proposition 26’s provisions concerning levies, charges and exactions other than property-related fees and the application of Article X. For the purposes of this cost of service analysis, it has been assumed that RPU’s tiered water and recycled water rate structures are to be analyzed under the requirements of Article XIIID and implementing statutory provisions, described below.

6.2 Article XIII D
In November 1996, California voters approved Proposition 218, which amended the California Constitution by adding Article XIII C and Article XIII D. Article XIII D placed substantive limitations on the use of the revenue collected from property-related fees and on the amount of the fee that may be imposed on each parcel. The substantive requirements, contained in Article XIII D, Section 6, include that the amount of a fee “shall not exceed the proportional cost of the service attributable to the parcel,” and that revenues from the rates “shall not exceed the funds required to provide the service” and “shall not be used for any purpose other than that for which the fee was imposed.” Additionally, Proposition 218 established procedural requirements for imposing new, or increasing existing, property-related fees.

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Following the passage of Proposition 218, there have been a number of court rulings interpreting and applying its language, and implementing statutes have also been enacted. In City of Palmdale v. Palmdale Water District, the court recognized that California Constitution Article X, Section 2 may be harmonized with Article XIII D, section 6 to allow for budget based and tiered rates that promote water conservation, provided conservation is attained in a manner that “shall not exceed the proportional cost of the service attributable to the parcel”. As noted in San Juan, the 2011 Palmdale decision recognized that budget based water rates on their own do not violate Proposition 218. In Palmdale, the district failed to demonstrate a basis for the more restrictive tiered budgets and progression through the tiers in the irrigation customer class as compared to the other customer classes.

The San Juan decision rejected the argument that for purposes of the proportional cost allocation required by Article XIII D, the agency’s calculation is a matter within legislative or quasi-legislative discretion shielded from judicial review. It did recognize some degree of latitude in making such calculations. The San Juan Court notes, for example, that it is not necessary to figure a rate for each parcel and it is permissible to allocate cost within tiers, as long as tiers are based on costs at various levels of usage. The opinion also explains that the time frame for the calculation of true water cost, particularly capital cost, may be long and calculation on a billing-cycle by billing-cycle basis is not required.

Cost and revenue projections are necessarily based on the best available information, and demand and consumption will be affected by weather and other factors that cannot be predicted. See San Juan, fn 11 (acknowledging projections of Metropolitan Water District rates as included in rate-setting process).

Projections such as this may result in operating surplus and carryover, maintaining cost of service standards on a year over year basis through the inclusion of these amounts in subsequent years’ budget processes.

6.3 California Assembly Bill 2882
Among the legislative enactments implementing Proposition 218 is California Assembly Bill (AB) 2882, which became law at the beginning of 2009. AB 2882 (Sections 370-374 of the California Water Code) defined the elements of allocation-based conservation pricing under Proposition 218, including the appropriate property characteristics (i.e., number of occupants, land use, irrigable area, and local climate data) to establish a reasonable basic use allocation. While rates for all water used within the basic allocation must be established following cost causation principles, AB 2882 provides authority for higher charges on increments of water used in excess of the basic use allocation.

This statute creates a framework under which water agencies may establish cost of service based rates while simultaneously allowing for the deterrence of wasteful water use. Under AB 2882, the elements of an allocation-based conservation water rate structure compliant with the mandates of both Article X and Proposition 218 are:

1. Water bills must be based on metered water use.

2. A water allocation of “basic use” must be established, providing a reasonable amount of water for each customer’s basic needs based on property characteristics. Allocation factors may include, but are not limited to, number of occupants, type of land use, size of irrigated area, and local climate data.

3. All water used within the basic use allocation must be a basic volumetric unit rate that is established following cost causation principles for the cost of water service.

4. A “conservation charge” can be imposed on all increments of water use in excess of the basic use allocation. The conservation charge must also be a volumetric charge and should be designed to encourage water conservation and efficiency.

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The cost of service analysis of RPU’s water rate structures is performed within the requirements of Article XIII D. While RPU is not recommending a water budget-based rate structure at this time, the cost of service allocation as presented within this report does consider the framework of AB 2882, allowing the City to more easily transition to that type of rate structure in the future as and if desired. RPU's water rates are designed to both recover costs proportionally from system users as well as encourage conservation. RPU’s cost of service approach thereby conforms to the requirements of Article XIII D.

6.4 Article XIII C
The application of Proposition 26 in the structuring of water rates is presently undetermined. The San Juan decision briefly touched upon one aspect of the Article XIII C provisions enacted by Proposition 26, finding that tiered water charges would not appropriately be characterized as penalties. Other aspects of the application of Proposition 26 to tiered rate structures may be addressed in future judicial decisions and legislative enactments.

The voters in the State approved Proposition 26 on November 2, 2010. Proposition 26 amended Article XIII C of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” with listed exceptions. By means of these exceptions, Article XIII C classifies several types of charges, in addition to property-related charges, that are not taxes, such as charges for specific services or benefits, regulatory charges and penalties.

Article XIII C’s definition of “tax” lists the following exceptions: (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (2) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (4) a charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law; (6) a charge imposed as a condition of property development; and (7) assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Proposition 26 also provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity. Like the proportionality requirements of Article XIII D, assessment of rates under these requirements, if applicable, would be supported by the cost of service approach.

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6.5 Article X
Article X, enacted as an amendment to the California Constitution in 1928 pursuant to an electoral initiative, provides that:
“It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.”
Article X conveys further that the right to water does not “extend to the waste or unreasonable use” of water. California Water Code Section 100 restates the policy that the waste of water shall be prevented. As indicated above, judicial interpretation in the Palmdale and San Juan decisions analyzed tiered water rates as property-related charges and, as such, found them to be compliant with Article XIII D provided that the tiers correspond to the actual cost of furnishing service at a given level of usage. Pricing signal was assumed to result from this manner of design. The use of tiered structures in compliance with Article XIII D restrictions was found to work in harmony with Article X. Further refinement through judicial and legislative interpretation may provide more specific guidance in this area, such as on the use of pricing signals.

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Appendix A

REVENUE REQUIREMENT AND FINANCIAL

INFORMATION

Appendix A
Revenue Requirement and
Financial Information
City of Riverside - Water Utility

PROJECTED STATEMENT OF OPERATIONS AND RETAINED EARNINGS For the Fiscal Years Ending
Projected Projected Projected Projected Projected
2024 2025 2026 2027 2028
(In Thousands) (In Thousands) (In Thousands) (In Thousands) (In Thousands) Operating revenues:

Water Sales 76,265 $ 81,694 $ 87,521 $ 93,775 $ 100,405 $ Water Conveyance 3,509 3,639 3,773 3,917 4,064 Water Conservation 1,144 1,225 1,313 1,407 1,506 Other 5,212 6,085 6,262 6,516 6,660 Total operating revenues 86,130 92,643 98,870 105,614 112,634 Reserve for uncollectible (229) (245) (263) (281) (301) Total operating revenue, net of allowance 85,901 92,398 98,607 105,333 112,333 Operating expenses:

Production costs 7,808 7,964 8,123 8,286 8,602 Personnel expense,
excluding PERS 22,906 23,280 23,591 23,826 24,302 Personnel - PERS 3,115 3,163 3,246 3,308 3,394 Supplies & services 15,371 15,547 15,869 16,205 16,529 Special projects 227 232 237 241 241 Service from other funds 10,473 10,598 10,523 10,709 10,923 Less charges to other (7,555) (7,632) (7,785) (7,941) (8,100) Additional O&M for CIP/Advanced Tech/Low Income 0 1,756 2,199 2,363 2,817 Water Conservation Programs 1,645 1,678 1,711 1,746 1,506 Depreciation 16,714 17,343 18,173 19,213 19,996
Total operating expenses 70,704 73,929 75,888 77,955 80,211 Operating income 15,197 18,469 22,719 27,378 32,122
Non-operating revenues (expenses):

Interest income 1,770 1,632 2,225 2,641 2,034
Interest expense (inc amort) (10,275) (9,990) (11,580) (13,301) (12,886) Line of Credit - - - - - Gain on sale of capital assets 120 120 120 120 120 Other (misc. income) 3,298 3,390 3,483 3,581 3,667 Non-operating revenues(expenses) (5,087) (4,848) (5,752) (6,959) (7,065) Income before CIA and operating transfers 10,110 13,621 16,967 20,419 25,057 General fund contribution (8,114) (8,583) (9,192) (9,846) (10,563) Transfer In 00000
Contributions in aid of construction-Cash 2,000 2,000 2,000 2,000 2,000 Contributions in aid of construction-Non Cash 00000
Special Item 00000
Net income (Loss) 3,996 7,038 9,775 12,573 16,494
Net position, July 1, As Previously Reporte
d 313,795 317,791 324,829 334,604 347,177
Cumulative Effect of Change in Accounting Principle 00000 Net position, July 1, As Restated 313,795 317,791 324,829 334,604 347,177 Net position, June 30 $317,791 $324,829 $334,604 $347,177 363,671$ Appendix A
Revenue Requirements and
Financial InformationRIVERSIDE PUBLIC UTILITIES Back to Proforma Index WATER 10-YEAR PRO-FORMA
Cash Balances
Fiscal Year 2024 2025 2026 2027 2028
Unrestricted cash and reserves: (In Thousands) (In Thousands) (In Thousands) (In Thousands) (In Thousands) Undesignated reserves 31,499 $ 28,410 $ 33,235 $ 38,326 47,733 Water property reserve 5,203 5,203 5,203 5,203 5,203 Operating cash reserve - - - - - Cash reserved for recycled water project 1,097 1,097 1,097 1,097 1,097 Customer deposits reserve 770 770 770 770 770 Capital repair/replacement reserve 2,340 2,340 2,340 2,340 2,340 Cash reserved for Purchased Water - - - - - Legally restricted cash and cash equivalents:

Reserved for debt service - monthly set aside 9,229 9,965 11,746 11,966 12,796 Reserved for equipment lease - - - - - Reserved for bond construction 25,153 6,482 69,777 28,993 5,454 Reserved for short term financing construction - - - - - Reserve for Water Conservation 1,532 1,079 680 342 342 Restricted cash and investment at fiscal agent:

Reserved for debt service (Fiscal Agent) - - - - - Total 76,823$ 55,346 $ 124,849 $ 89,037 $ 75,735 $

TRUE TRUE TRUE TRUE TRUE
Revenue Requirements
Fiscal Yea
r 2024 2025 2026 2027 2028
Production costs 7,808 $ 7,964 $ 8,123 $ 8,286 $ 8,602 $ Personnel costs 18,465 18,811 19,052 19,193 19,596 Other operating and maintenance costs ① 26,071 26,377 26,629 27,155 27,693 Additional O&M for CIP and Advanced Tech ② - 1,756 2,199 2,363 2,817 Required Reduction in O&M ③ - - - - - Debt service requirements 23,325 23,364 25,553 28,984 27,960 General fund transfer 8,114 8,583 9,192 9,846 10,563 Capital outlay financed by rates 9,399 10,241 3,961 6,915 7,243 Total Revenue Requirements 93,183$ 97,096 $ 94,709 $ 102,741 $ 104,475 $

TRUE TRUE TRUE TRUE TRUE
O&M Subtotal for Chart Below ①+②+③ 26,071$ 28,133 $ 28,828 $ 29,518 $ 30,511 $ Available Revenues
Fiscal Year 2024 2025 2026 2027 2028
Revenue at current rates 71,548 $ 76,265 $ 81,694 $ 87,521 $ 93,775 $ Current year increase 4,716 5,430 5,827 6,253 6,630 Interest income 1,770 1,632 2,225 2,641 2,034 Miscellaneous income 11,474 12,521 12,876 13,321 13,645 Total Available Revenues 89,509$ 95,847 $ 102,622 $ 109,736 $ 116,084 $ Use of/(Contributions to) Reserves 3,674 $ 1,249 $ (7,913)$ (6,995) $ (11,609)$

TRUE TRUE TRUE TRUE TRUE
Appendix A
Revenue Requirement and
Financial Information
City of Riverside Water Utility LOC Applicable factor 70% Minimum Cash Reserve 1 month Libor 0.52%
Back to Proforma Index Applicable Spread 0.40%
2024 2025 2026 2027 2028
Working Capital (In Thousands) (In Thousands) (In Thousands) (In Thousands) (In Thousands) Operating Expenses (exc Deprec & Wtr Cons.) 52,344 $ 54,908 $ 56,003 $ 56,997 $ 58,709 $ Per day (365 Days) 143 $ 150 $ 153 $ 156 $ 161 $ 60 Days of Operating Expenses 8,605 $ 9,026 $ 9,206 $ 9,369 $ 9,651 $ 90 Days of Operating Expenses 12,907 $ 13,539 $ 13,809 $ 14,054 $ 14,476 $ Rate Stabilization
Operating Revenues (exc Wtr Cons.) 84,757 $ 91,173 $ 97,294 $ 103,926 $ 110,827 $ 7% 5,933 $ 6,382 $ 6,811 $ 7,275 $ 7,758 $ 15% 12,714 $ 13,676 $ 14,594 $ 15,589 $ 16,624 $ Capital- Emergency
Depreciable Assets 795,893 $ 825,860 $ 865,382 $ 914,925 $ 952,204 $ 1% 7,959 $ 8,259 $ 8,654 $ 9,149 $ 9,522 $ 2% 15,918 $ 16,517 $ 17,308 $ 18,299 $ 19,044 $ Capital- System Improvments
Annual CIP for Following Year- Use Budget when Available 29,931$ 29,569 $ 24,823 $ 34,691 $ 36,679 $ FY Actual CIP Expenses
Budgeted CIP
Less Designated Reserve Funding (Recycled Wtr/Property) - $ - $ - $ - $ - $ Revised Annual CIP for Following Year 29,931 $ 29,569 $ 24,823 $ 34,691 $ 36,679 $ 6 Months of Annual CIP 14,054 $ 14,847 $ 16,032 $ 18,766 $ 19,451 $ 9 Months of Annual CIP 21,081 $ 22,271 $ 24,048 $ 28,149 $ 29,176 $

0.5 0.300% 0.300% 0.300% 0.300% 0.300%

0.75 28,000$ 28,000 $ 28,000 $

87.53$ 87.53 $ 87.53 $ 87.53 $ 87.53 $ Debt Service (Max Annual D/S in upcoming FY)
Principal 9,622 $ 9,957 $ 11,687 $ 12,126 $ 12,578 $ Semi-Annual Interest 9,454 $ 11,296 $ 13,116 $ 12,570 $ 14,421 $ /2 4,727 $ 5,648 $ 6,558 $ 6,285 $ 7,210 $ Monthly Interest 789 $ 789 $ 789 $ 789 $ 789 $ /12 66 $ 66 $ 66 $ 66 $ 66 $ Total (Includes New Proposed Debt) 14,415$ 15,671 $ 18,311 $ 18,477 $ 19,854 $ Minimum Reserve Requirement 50,965 $ 54,185 $ 59,013 $ 63,036 $ 66,236 $ Maximum Reserve Requirement 77,034 $ 81,674 $ 88,070 $ 94,567 $ 99,175 $ Fiscal Year End

FINAL | MAY 2023
Appendix B

FUNCTIONALIZATION OF COSTS
Appendix B, Functionalization of Costs, presents the allocation of O&M, capital, debt service, and other costs by system function. The dollar value of each expense and each revenue is associated with a certain process or function of the system. To provide rate stability over the cost of service study period, the functionalization is completed using the 5-year average of costs for FY 2023/24 though FY 2027/28.

Appendix B
Functionalization of Costs
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
FUNCTIONALIZATION (O&M to Functions)
ALLOCATION BASE: 5‐YEAR AVERAGE

FUNCTION CATEGORIES PUMPING TREATMENT STORAGE DISTRIBUTION TRANSMISSION SOURCE OF SUPPLY
SUPPLY

SUSTAINABILITY GENERAL CUSTOMER METER SERVICES ADMIN FIXED

MAINTENANCE AS ALL OTHERS TOTAL
Treatment 100.0% 0.0% 100.0%
Supply Resiliency 100.0% 0.0% 100.0%
General 100.0% 0.0% 100.0%
Customer 100.0% 0.0% 100.0%
Administration 100.0% 0.0% 100.0%
Fixed Maintenance 100.0% 0.0% 100.0%
As All Others 100.0% 100.0%
Source of Supply (Cost of Water) 30.2% 69.8% 0.0%
Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 100.0% Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% CIP ‐ 5‐Year 4.1% 0.7% 0.7% 38.7% 18.8% 8.1% 18.8% 0.0% 0.0% 10.1% 0.0% 100.0% 2008B ISSUE ($58.235M FIXED) 1.6% 15.6% 0.0% 41.3% 2.7% 38.8% 0.0% 0.0% 2009A ISSUE ($31.895M FIXED) 3.1% 0.5% 29.1% 28.8% 27.1% 11.4% 0.0% 0.0% 2009B ISSUE ($67.790M FIXED BABs) ‐ Net of BABs 1.0% 0.7% 0.0% 56.4% 13.6% 28.3% 0.0% 0.0% 2011A ISSUE ($59.0M VARIABLE) 7.1% 3.1% 15.4% 43.0% 20.5% 10.3% 0.7% 0.0% 2019 A Refunding Water Revenue Bonds 4.7% 7.1% 3.3% 43.3% 17.8% 23.8% 0.0% 0.0% 5-YEAR AVERAGE ALLOCATION BASIS PUMPING TREATMENT STORAGE DISTRIBUTION TRANSMISSION SOURCE OF SUPPLY
SUPPLY

SUSTAINABILITY GENERAL CUSTOMER METER SERVICES ADMIN FIXED

MAINTENANCE AS ALL OTHERS TOTAL
ALLOCATION OF O&M COST CENTERS
WATER PRODUCTION AND OPERATIONS
PERSONNEL SUBTOTAL 6,334,094 $ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% NON‐PERSONNEL SUBTOTAL 13,823,068
Professional Services 2,496,326 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Prof Services/Internal ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Outside Legal Services 160,152 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Telephone 86,632 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Telephone ‐ Cellular 48,250 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Electric 7,110,042 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Gas ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Water 37,897 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Other Utilities 97,618 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Purchased Water 5,429 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Imported Water ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% IW Capacity/Standby Charges 59,663 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Production Costs 828,994 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Motor Pool Equipment Rental 356,750 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Maint/Repair of Bldgs & Improv 629,136 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% All Other Equip Maint/Repair 5,421 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Central Garage Charges 9,222 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Central Communications Chg ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Advertising Expense ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Periodicals & Dues 24,887 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Photo & Recording Supplies ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% General Office Expense 32,491 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Postage 5,421 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Central Printing Charges ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Outside Printing Expense 540 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Software Purchase/Licensing 10,827 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Computer Equip Purc Undr $5000 53,091 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Janitorial Supplies 540 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Clothing/Linen/Safety Supplies 27,400 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Motor Fuels & Lubricants 2,161 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Chemical Supplies 1,320,602 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Maintenance Tools/Supplies 17,124 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Employee Meal Allowance ‐ Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Work Boot Reimbursement 7,582 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Special Department Supplies 8,662 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Travel & Meeting Expense 3,241 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Training 37,272 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Liability Insurance 56,782 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Insurance Charges ‐ Direct 282,915 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Cost allocated as weghted averave of all other costs.

All costs allocated to Treatment.

All costs allocated to Supply Sustainability.

Costs provide a general benefit to the system.

All costs allocated to Customer.

All costs alocated to Administration.

All costs alocated to Fixed Maintenance.

Based on bond project funding analysis.

See Cost of Water for allocation
See Div. Allocs for allocation
See Div. Allocs for allocation
Based on 5‐year total CIP projects.

Based on bond project funding analysis.

Appendix B
Functionalization of Costs
GRANTS AND CAPITAL PROJECTS SUBTOTAL 2,784,431
Taxes And Assessments 2,784,431                     Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Equipment Rental Charges ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% CAPITAL PURCHASES SUBTOTAL ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% SPECIAL PROGRAMS SUBTOTAL 156,121                        Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% CHARGES FROM OTHERS SUBTOTAL 2,623,764
General Fund Allocation Chgs 1,277,063                     Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Utilization Chgs from 101 Fund ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Utilization Chgs from 510 Fund 1,346,701                     Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% CHARGES TO OTHERS SUBTOTAL (140,503)
Interfund Services to 101 Fund ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Interfund Services to 510 Fund ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Interfund Services to 511 Fund ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Interfund Services to 520 Fund (140,503)                       Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Interfund Services to 550 Fund ‐                                    Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% WATER FIELD OPERATIONS
PERSONNEL SUBTOTAL 13,220,468 $               Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% NON‐PERSONNEL SUBTOTAL 5,596,939
Professional Services 654,545                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Prof Services/Internal 433,809                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Outside Legal Services ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Telephone 1,900                             Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Telephone ‐ Cellular 28,396                           Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Other Utilities ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Refuse/Disposal Fees 37,897                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Land and Building Rental 109                                As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Motor Pool Equipment Rental 1,433,641                     Fixed Maintenance 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 100.0% Maint/Repair of Bldgs & Improv 1,700,079                     Fixed Maintenance 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 100.0% All Other Equip Maint/Repair 10,827                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Central Garage Charges 160,121                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Central Communications Chg ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Software Maintenance/Support ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Periodicals & Dues 8,122                             Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% General Office Expense 27,070                           Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Postage ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Central Printing Charges ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Outside Printing Expense ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Software Purchase/Licensing 19,485                           Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% Computer Equip Purc Undr $5000 27,890                           Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% Janitorial Supplies 2,161                             As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Clothing/Linen/Safety Supplies 97,459                           Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Motor Fuels & Lubricants 24,260                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Chemical Supplies ‐                                    Treatment 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Maintenance Tools/Supplies 108,282                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Work Boot Reimbursement 23,829                           Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Special Department Supplies 75,801                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Travel & Meeting Expense 10,827                           Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Training 21,664                           Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Liability Insurance 688,766                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% GRANTS AND CAPITAL PROJECTS SUBTOTAL ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% CAPITAL PURCHASES SUBTOTAL ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% CHARGES FROM OTHERS SUBTOTAL 4,241,152
General Fund Allocation Chgs 1,304,416                     As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 101 Fund 40,983                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 260 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 510 Fund 2,895,753                     [     See Interfund Alloc     ] 0.0% 0.0% 0.0% 13.9% 0.0% 0.0% 0.0% 0.1% 38.5% 0.2% 35.0% 0.0% 12.3% 100.0% CHARGES TO OTHERS SUBTOTAL (5,967,315)
Utilization Chgs to 510 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 101 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 215 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 230 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 410 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 420 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 430 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 432 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 434 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 479 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 510 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% r capi Interfund Services to 520 Fund (5,967,315)                    Field Ops Staff 0.0% 0.0% 0.0% 79.0% 0.0% 0.0% 0.0% 2.7% 2.5% 5.6% 10.3% 0.0% 0.0% 100.0% Interfund Services to 550 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 570 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Appendix B
Functionalization of Costs
WATER ENGINEERING
PERSONNEL SUBTOTAL 6,512,260 $                  Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% NON‐PERSONNEL SUBTOTAL 1,668,016
Professional Services 890,150                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Prof Services/Internal 27,070                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Prof Svs/RPU‐OTO‐AMI/NCS/MDMS ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Outside Legal Services 141,978                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Telephone 3,786                             Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Telephone ‐ Cellular 24,248                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Water ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Motor Pool Equipment Rental 60,856                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Maint/Repair of Bldgs & Improv 12,988                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% All Other Equip Maint/Repair 16,243                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Central Garage Charges 1,630                             Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Central Communications Chg ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Advertising Expense 6,501                             Customer 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 100.0% Periodicals & Dues 59,561                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Photo & Recording Supplies 19,489                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% General Office Expense 40,613                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Postage 1,301                             As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Central Printing Charges 540                                As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Outside Printing Expense 540                                As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Software Purchase/Licensing 72,056                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Computer Equip Purc Undr $5000 51,331                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Computers‐Software ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Clothing/Linen/Safety Supplies 4,880                             Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Chemical Supplies 1,080                             As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Maintenance Tools/Supplies 3,241                             As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Work Boot Reimbursement 2,701                             Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Special Department Supplies 5,961                             As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Travel & Meeting Expense 27,611                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Training 67,143                           Engineering Staff Allocation 3.1% 0.5% 0.5% 45.8% 14.3% 28.2% 0.0% 0.0% 0.0% 7.6% 0.0% 0.0% 0.0% 100.0% Employee Loyalty ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Liability Insurance 124,516                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Uncollected Accts ‐ Bad Debts SUBTOTAL ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% SPECIAL PROGRAMS SUBTOTAL 238,231                       As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% CAPITAL PURCHASES SUBTOTAL ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% CHARGES FROM OTHERS SUBTOTAL 3,756,406
General Fund Allocation Chgs 1,121,189                     As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 101 Fund 297,971                        Administration 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% Utilization Chgs from 510 Fund 2,271,541                     [     See Interfund Alloc     ] 0.1% 0.0% 0.0% 1.0% 0.3% 0.6% 0.0% 0.0% 39.9% 0.2% 21.8% 0.0% 36.1% 100.0% Utilization Chgs from 550 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 620 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services from 101 Fd 65,706                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% CHARGES TO OTHERS SUBTOTAL (1,694,640)
Utilization Chgs to 510 Fund (14,410)                         As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 101 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 430 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 510 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 520 Fund (1,680,230)                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Interfund Services to 521 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% OPERATING TRANSFERS OUT SUBTOTAL ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Appendix B
Functionalization of Costs
WATER‐OFFICE OF OPS TECHNOLOGY
NON‐PERSONNEL SUBTOTAL 1,008,508 $
Prof Svs/RPU‐OTO‐AMI/NCS/MDMS 181,921                        Fixed Maintenance 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 100.0% Software Maintenance/Support 761,160                        As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Citywide IT Projects 65,427                           Fixed Maintenance 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 100.0% CHARGES FROM OTHERS SUBTOTAL 23,836
General Fund Allocation Chgs 23,836                           As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 101 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% Utilization Chgs from 510 Fund ‐                                    As All Others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% 54,184,837$               ‐ $                                                       214,149$            35,106$              35,106$              17,180,418$      981,223$            19,789,155$      ‐ $                         205,800$                 2,211,055$        950,640$            2,618,536$        3,381,069$        6,582,580$        54,184,837$ 29,613$             4,855$                4,855$                2,375,759$        135,686$           2,736,503$        ‐ $                        28,459$                  305,751$           131,457$           362,099$           467,544$           TRUE 54,184,837$                                     243,762$            39,961$              39,961$              19,556,177$      1,116,909$        22,525,658$      ‐ $                         234,259$                 2,516,806$        1,082,097$        2,980,635$        3,848,613$        # TRUE
Resulting Allocation 100.00% 0.45% 0.07% 0.07% 36.09% 2.06% 41.57% 0.00% 0.43% 4.64% 2.00% 5.50% 7.10% CHECK
Total FromAbove 54,184,837$
Total Allocated 54,184,837$
‐$                                                       d OKAY
ALLOCATION OF DEBT SERVICE
Bonds, Leases, and Minor Debt 5-YEAR AVERAGE ALLOCATION BASIS PUMPING TREATMENT STORAGE DISTRIBUTION TRANSMISSION SOURCE OF SUPPLY
SUPPLY

SUSTAINABILITY GENERAL CUSTOMER METER SERVICES ADMIN FIXED

MAINTENANCE AS ALL OTHERS TOTAL
2008B ISSUE ($58.235M FIXED) ‐ 2008B ISSUE ($58.235M FIXED) 1.6% 15.6% 0.0% 41.3% 2.7% 38.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 2009A ISSUE ($31.895M FIXED) ‐ 2009A ISSUE ($31.895M FIXED) 3.1% 0.5% 29.1% 28.8% 27.1% 11.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 2009B ISSUE ($67.790M FIXED BABs) ‐ Net of BABs 5,206,613 2009B ISSUE ($67.790M FIXED BABs) ‐ Net of BABs 1.0% 0.7% 0.0% 56.4% 13.6% 28.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 2011A ISSUE ($59.0M VARIABLE) 789,330 2011A ISSUE ($59.0M VARIABLE) 7.1% 3.1% 15.4% 43.0% 20.5% 10.3% 0.0% 0.0% 0.0% 0.7% 0.0% 0.0% 0.0% 100.0% 2019 A Refunding Water Revenue Bonds 9,346,201 2019 A Refunding Water Revenue Bonds 4.7% 7.1% 3.3% 43.3% 17.8% 23.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% New Debt Service ‐ Bonds 7,248,497 CIP ‐ 5‐Year 4.1% 0.7% 0.7% 38.7% 18.8% 8.1% 18.8% 0.0% 0.0% 10.1% 0.0% 0.0% 0.0% 100.0% Advance from City ‐ Pension Obligation ($) 2,216,784 Source of Supply (Cost of Water) 0.0% 0.0% 0.0% 30.2% 0.0% 69.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Capital Lease ($) 782,547 General 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Other Interest Expenses (inc. Capitalized Interest, Amortiza 247,145 General 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 25,837,116$ 25,837,116$ 847,638$ 770,423$ 483,635$ 10,800,970$ 3,897,887$ 5,905,766$ 1,365,837$ 1,029,692$ ‐ $ 735,269$ ‐ $ ‐ $ ‐ $ 25,837,116$

3.28% 2.98% 1.87% 41.80% 15.09% 22.86% 5.29% 3.99% 0.00% 2.85% 0.00% 0.00%

FINAL | MAY 2023
Appendix C

COST OF SERVICE ALLOCATION
Appendix C, Cost of Service Allocation, presents the allocation of the functionalized expenses and offsetting revenues to each rate component. The dollar value of each functionalized expense and revenue is associated with a certain process of the system. This process is, in turn, associated with the water system's ability to provide services in each component category: Customer, Capacity, Base, Max Day, Max Hour, Supply 1, Supply 2, Supply 3, Supply 4, and Supply Sustainability. The dollar value of any expense or revenue is allocated to each of these cost components in the same proportion that it’s related process or program is allocated.

Appendix C
Cost of Service Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF SERVICE ALLOCATION
Fixed Fixed Variable Variable Variable Variable Variable Variable Variable Variable Gage Riverside
South/North Waterman Flume
FUNCTION CATEGORIES CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
Customer Only Applies to customer service related functions. 100.0% 0.0% 100.0% Capacity Only Applies to service related functions. 100.0% 0.0% 100.0% Customer and Meter Service 25% to Customer Functions, 75% related to Meter Size 25.0% 75.0% 0.0% 100.0% Max Day Applies to high demand water functions. 100.0% 0.0% 100.0% Base/Max Day Resulting allocation from system demand factor analysis. 68.0% 32.0% 0.0% 100.0% Base/Max Day/Max Hour Resulting allocation from system demand factor analysis. 57.1% 26.9% 16.0% 0.0% 100.0% Max Day/Max Hour Split 50‐50 between Max Day and Max Hour. 84.0% 16.0% 0.0% 100.0% Supplies Based on the cost of water 26.1% 22.9% 40.2% 10.7% 0.0% 100.0% Supply Sustainability All costs allocated to Supply Sustainability. 100.0% Settlement reimb ‐ Lockheed/Shell (345457) Based on reimbursements assigned to each supply based on RPU cost of water analysis. 52.3% 26.4% 21.4% 0.0% As All Others Applies total allocation to remaining line items. 100.0% 100.0% FUNCTIONALIZED O&M EXPENDITURES 5-YEAR AVERAGE ALLOCATION CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
PUMPING 243,762$ Max Day/Max Hour ‐$ ‐ $ ‐ $ 204,760$ 39,002$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 243,762$ TREATMENT 39,961 Base/Max Day ‐ ‐ 27,184 12,777 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 39,961 STORAGE 39,961 Max Day/Max Hour ‐ ‐ ‐ 33,567 6,394 ‐ ‐ ‐ ‐ ‐ ‐ 39,961 DISTRIBUTION 19,556,177 Base/Max Day/Max Hour ‐ ‐ 11,174,958 5,252,230 3,128,988 ‐ ‐ ‐ ‐ ‐ ‐ 19,556,177 TRANSMISSION 1,116,909 Base/Max Day/Max Hour ‐ ‐ 638,234 299,970 178,705 ‐ ‐ ‐ ‐ ‐ ‐ 1,116,909 SOURCE OF SUPPLY 22,525,658 Supplies ‐ ‐ ‐ ‐ ‐ 5,885,255 5,169,498 9,063,836 2,407,069 ‐ ‐ 22,525,658 SUPPLY SUSTAINABILITY ‐ Supply Sustainability ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ GENERAL 234,259 As All Others ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 234,259 234,259 CUSTOMER 2,516,806 Customer Only 2,516,806 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,516,806 METER SERVICES 1,082,097 Capacity Only ‐ 1,082,097 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,082,097 ADMIN 2,980,635 Customer and Meter Service 745,159 2,235,476 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,980,635 FIXED MAINTENANCE 3,848,613 Capacity Only ‐ 3,848,613 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,848,613 OPERATING EXPENDITURES SUBTOTAL 54,184,837$ 3,261,964$ 7,166,186$ 11,840,376$ 5,803,304$ 3,353,089$ 5,885,255$ 5,169,498$ 9,063,836$ 2,407,069$ ‐ $ 234,259$ 54,184,837$ Reallocation of "As All Others" 14,164$ 31,116$ 51,412$ 25,199$ 14,559$ 25,554$ 22,446$ 39,356$ 10,452$ ‐ $ TRUE O&M ALLOCATION 54,184,837 $ 3,276,128$ 7,197,303$ 11,891,788$ 5,828,503$ 3,367,649$ 5,910,810$ 5,191,944$ 9,103,192$ 2,417,521$ ‐ $ Resulting O&M Allocation 100.00% 6.05% 13.28% 21.95% 10.76% 6.22% 10.91% 9.58% 16.80% 4.46% 0.00% FUNCTIONALIZED DEBT SERVICE: Bonds, Leases, and Minor Debt 5- YEAR AVERAGE ALLOCATION CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 S UPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
PUMPING 847,638$ Capacity Only ‐$ 847,638$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 847,638$ TREATMENT 770,423 Max Day ‐ ‐ ‐ 770,423 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 770,423 STORAGE 483,635 Capacity Only ‐ 483,635 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 483,635 DISTRIBUTION 10,800,970 Capacity Only ‐ 10,800,970 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 10,800,970 TRANSMISSION 3,897,887 Capacity Only ‐ 3,897,887 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,897,887 SOURCE OF SUPPLY 5,905,766 Max Day ‐ ‐ ‐ 5,905,766 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 5,905,766 SUPPLY SUSTAINABILITY 1,365,837 Supply Sustainability ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,365,837 ‐ 1,365,837 GENERAL 1,029,692 As All Others ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,029,692 1,029,692 CUSTOMER ‐ Customer Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ METER SERVICES 735,269 Capacity Only ‐ 735,269 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 735,269 ADMIN ‐ Capacity Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ FIXED MAINTENANCE ‐ Capacity Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ DEBT SERVICE SUBTOTAL 25,837,116$ ‐$ 16,765,399$ ‐ $ 6,676,189$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,365,837$ 1,029,692$ 25,837,116$ Reallocation of "As All Others" ‐$ 695,888$ ‐ $ 277,111$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 56,692$ DEBT SERVICE ALLOCATION 25,837,116 $ ‐ $ 17,461,287$ ‐ $ 6,953,300$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 1,422,529$ Resulting Debt Service Allocation 100.00% 0.00% 67.58% 0.00% 26.91% 0.00% 0.00% 0.00% 0.00% 0.00% 5.51% Appendix C
Cost of Service Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF SERVICE ALLOCATION
Fixed Fixed Variable Variable Variable Variable Variable Variable Variable Variable Gage Riverside
South/North Waterman Flume
FUNCTION CATEGORIES CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL

FUNCTIONALIZED CIP
Five Year Total
FY 2023/24 thru
FY 2027/28
ALLOCATION CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
PUMPING 6,100,000$ Capacity Only ‐$ 6,100,000$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 6,100,000$ TREATMENT 1,000,000 $ Max Day ‐ ‐ ‐ 1,000,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,000,000 STORAGE 1,000,000$ Capacity Only ‐ 1,000,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,000,000 DISTRIBUTION 57,580,000 $ Capacity Only ‐ 57,580,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 57,580,000 TRANSMISSION 27,950,000 $ Capacity Only ‐ 27,950,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 27,950,000 SOURCE OF SUPPLY 12,000,000 $ Max Day ‐ ‐ ‐ 12,000,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 12,000,000 SUPPLY SUSTAINABILITY 28,000,000 $ Supply Sustainability ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 28,000,000 ‐ 28,000,000 GENERAL ‐$ Capacity Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ CUSTOMER ‐$ Capacity Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ METER SERVICES 14,966,000 $ Capacity Only ‐ 14,966,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 14,966,000 ADMIN Capacity Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ FIXED MAINTENANCE Capacity Only ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ CIP SUBTOTAL 148,596,000$ ‐$ 107,596,000$ ‐ $ 13,000,000$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 28,000,000$ ‐ $ 148,596,000$ Reallocation of "As All Others" ‐$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ TRUE CIP ALLOCATION 148,596,000 $ ‐ $ 107,596,000$ ‐ $ 13,000,000$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 28,000,000$ Resulting CIP Allocation 100.00% 0.00% 72.41% 0.00% 8.75% 0.00% 0.00% 0.00% 0.00% 0.00% 18.84% CIP ALLOCATION WITHOUT SUPPLY SUSTAINABLITY 120,596,000 $ ‐ $ 107,596,000$ ‐ $ 13,000,000$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 120,596,000$ Reallocation of "As All Others" ‐$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ TRUE CIP ALLOCATION 120,596,000 $ ‐ $ 107,596,000$ ‐ $ 13,000,000$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ Allocation w/o WIFIA Projects 0.00% 89.22% 0.00% 10.78% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% FUNCTIONALIZED ASSETS RCNLD ALLOCATION CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
PUMPING 27,604,310$ Max Day/Max Hour ‐$ ‐ $ ‐ $ 23,187,620$ 4,416,690$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 27,604,310$ TREATMENT 40,513,781 Base/Max Day ‐ ‐ 27,560,395 12,953,386 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 40,513,781 STORAGE 58,534,765 Max Day/Max Hour ‐ ‐ ‐ 49,169,202 9,365,562 ‐ ‐ ‐ ‐ ‐ ‐ 58,534,765 DISTRIBUTION 349,970,110 Base/Max Day/Max Hour ‐ ‐ 199,982,920 93,991,972 55,995,218 ‐ ‐ ‐ ‐ ‐ ‐ 349,970,110 TRANSMISSION ‐ Base/Max Day/Max Hour ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ SOURCE OF SUPPLY 74,703,397 Supplies ‐ ‐ ‐ ‐ ‐ 19,517,679 17,143,962 30,059,026 7,982,730 ‐ ‐ 74,703,397 SUPPLY SUSTAINABILITY ‐ Customer and Meter Service ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ GENERAL 2,692,406 As All Others ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,692,406 2,692,406 CUSTOMER 22,108,517 Customer Only 22,108,517 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 22,108,517 METER SERVICES 73,278,397 Customer and Meter Service 18,319,599 54,958,798 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 73,278,397 ADMIN 791,208 Customer and Meter Service 197,802 593,406 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 791,208 FIXED MAINTENANCE ‐ Customer and Meter Service ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ AS ALL OTHERS 45,078$ As All Others ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 45,078 45,078 ASSETS SUBTOTAL 650,241,970$ 40,625,919$ 55,552,204$ 227,543,315$ 179,302,181$ 69,777,470$ 19,517,679$ 17,143,962$ 30,059,026$ 7,982,730$ ‐ $ 2,737,484$ 650,241,970$ Reallocation of "As All Others" 171,756$ 234,861$ 961,995$ 758,044$ 295,001$ 82,516$ 72,480$ 127,082$ 33,749$ ‐ $ TRUE ASSET ALLOCATION 650,241,970 $ 40,797,675$ 55,787,065$ 228,505,310$ 180,060,225$ 70,072,471$ 19,600,194$ 17,216,442$ 30,186,108$ 8,016,479$ ‐ $ Resulting Asset Allocation 100.00% 6.27% 8.58% 35.14% 27.69% 10.78% 3.01% 2.65% 4.64% 1.23% 0.00% TOTAL ALLOCATION 878,859,922 $ 44,073,803$ 188,041,654$ 240,397,099$ 205,842,027$ 73,440,120$ 25,511,004$ 22,408,386$ 39,289,300$ 10,434,000$ 29,422,529$ Total Resulting Allocation 100.00% 5.01% 21.40% 27.35% 23.42% 8.36% 2.90% 2.55% 4.47% 1.19% 3.35% Appendix C
Cost of Service Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF SERVICE ALLOCATION
Fixed Fixed Variable Variable Variable Variable Variable Variable Variable Variable Gage Riverside
South/North Waterman Flume
FUNCTION CATEGORIES CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
RATE REVENUE REQUIREMENT ALLOCATION 5-YEAR AVERAGE ALLOCATION BASIS CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUP PLY 4 SUPPLY

SUSTAINABILITY AS ALL OTHERS TOTAL
Requirements
Operating Revenue Requirements 53,965,141 $                              See Detailed O&M Allocation 3,262,845$         7,168,121$         11,843,572$           5,804,871$         3,353,994$         5,886,844$         5,170,893$         9,066,283$         2,407,719$         ‐ $                                     ‐ $                          53,965,141 Additional O&M for CIP and Advanced Tech 1,827,048 $                                 See Detailed O&M Allocation 110,467              242,684              400,977                   196,530              113,553              199,305              175,066              306,949              81,516                 ‐                                   ‐                        1,827,048$ Required Reduction in O&M ‐$                                                  See Detailed O&M Allocation ‐                       ‐                        ‐                             ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                                   ‐                        ‐ $ Debt Service Requirements: Bonds, Leases, and Minor Debts 25,837,116 $                              See Detailed Debt Service Allocation ‐                       17,461,287         ‐                             6,953,300           ‐                        ‐                        ‐                        ‐                        ‐                        1,422,529                      ‐                        25,837,116$ Debt Service Requirements: WIFIA ‐$                                                  See Detailed Debt Service Allocation ‐                       ‐                        ‐                             ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                                   ‐                        ‐ $ General Fund Transfer 9,259,600 $                                 As All Others ‐                       ‐                        ‐                             ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                                   9,259,600           9,259,600$ Capital Outlay Financed by Rates 7,551,800 $                                 See CIP Allocation w/o Supply Sustainability ‐                       6,737,732           ‐                             814,068              ‐                        ‐                        ‐                        ‐                        ‐                        ‐                                   ‐                        7,551,800$ Conservation Program 1,657,301 $                                 Max Day/Max Hour ‐                       ‐                        ‐                             1,392,133           265,168              ‐                        ‐                        ‐                        ‐                        ‐                                   ‐                        1,657,301$ Use of Non‐Rate Revenue for WA‐12 684,000 $                                    As All Others ‐                       ‐                        ‐                             ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                                   684,000              684,000$ 0 ‐$                                                  As All Others ‐                       ‐                        ‐                             ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                                   ‐                        ‐ $ ‐$
Less: Offsetting Revenues ‐$
Conservation Surcharge (1,657,301) $                               Max Day/Max Hour ‐$                     ‐ $                     ‐ $                          (1,392,133)$       (265,168)$           ‐ $                     ‐ $                     ‐ $                     ‐ $                     ‐ $                                ‐ $                     (1,657,301)$ Interest income (2,060,400) $                               As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (2,060,400)          (2,060,400)$ Miscellaneous income (3,106,328) $                               As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (3,106,328)          (3,106,328)$ Water Conveyance Revenues (3,780,458) $                               As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (3,780,458)          (3,780,458)$ Settlement reimb ‐ Lockheed/Shell (345457) (2,639,920) $                               Settlement reimb ‐ Lockheed/Shell (345457) ‐                            ‐                             ‐                                  ‐                             ‐                             (1,379,843)          (695,695)             (564,382)             ‐                             ‐                                        ‐                             (2,639,920)$ Wholesale Sales‐ WMWD (2,395,853) $                               As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (2,395,853)          (2,395,853)$ Wholesale sales ‐ Norco (844,600) $                                   As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (844,600)             (844,600)$ Outside City Surcharge (2,194,584) $                               As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (2,194,584)          (2,194,584)$ Fire Service Charges (619,500) $                                   As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        (619,500)             (619,500)$ Projected Cash Flows ‐ (Use of) Contributions to Reserves 4,318,794$                                 As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        4,318,794           4,318,794$ ‐$
Adjustment for Rate Increase Delay ‐$                                                  As All Others ‐                            ‐                             ‐                                  ‐                             ‐                             ‐                             ‐                             ‐                             ‐                             ‐                                        ‐                             ‐ $ Toal Rate Revenue Requirement* 85,801,856 $                              ‐ $                                                                    3,373,312$        31,609,823$      12,244,549$           13,768,769$      3,467,548$        4,706,306$        4,650,264$        8,808,850$        2,489,235$        1,422,529$                   (739,329)$           85,801,856$ Excluding Outside Surcharge and Fire Service Reallocation of "As All Others" (28,819)$             (270,046)$           (104,606)$                (117,628)$           (29,624)$             (40,206)$             (39,728)$             (75,255)$             (21,266)$             (12,153)$                        TRUE TOTAL ALLOCATION 3,344,493$        31,339,778$      12,139,943$           13,651,141$      3,437,924$        4,666,099$        4,610,537$        8,733,595$        2,467,969$        1,410,377$ RESULTING ALLOCATION 100.00% 3.90% 36.53% 14.15% 15.91% 4.01% 5.44% 5.37% 10.18% 2.88% 1.64% REVENUE REQUIREMENT ADJUSTMENT for INTERRUPTABLE RATES 5-YEAR AVE RAGE ALLOCATION BASIS CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 SUPPLY

SUSTAINABILITY
Total Allocated Revenue Requirements 85,801,856 $ From Above 3,344,493$ 31,339,778$ 12,139,943$ 13,651,141$ 3,437,924$ 4,666,099$ 4,610,537$ 8,733,595$ 2,467,969$ 1,410,377$ Interruptable Adjustments
Less: Supply and Treatment Related Debt Service (6,676,189) Max Day ‐ ‐ ‐ (6,676,189) ‐ ‐ ‐ ‐ ‐ ‐ Less: Supply and Treatment Related Capital Outlay Financed By Rates (660,673) % of five year Max Day ‐ ‐ ‐ (660,673) ‐ ‐ ‐ ‐ ‐ ‐ ‐ Max Day ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,344,493$ 31,339,778$ 12,139,943$ 6,314,279$ 3,437,924$ 4,666,099$ 4,610,537$ 8,733,595$ 2,467,969$ ‐ $ Adjustment for Interruptable (Calculated 0.0% 0.0% 0.0% ‐53.7% 0.0% 0.0% 0.0% 0.0% 0.0% ‐100.0% Adjustment Override
Applied Adjustment for Interruptable Ra 0.0% 0.0% 0.0% ‐53.7% 0.0% 0.0% 0.0% 0.0% 0.0% ‐100.0%

FINAL | MAY 2023
Appendix D

CUSTOMER CLASS ALLOCATION
Appendix D, Customer Class Allocation, allocates the total rate revenue requirements for each fiscal year to each rate component based on the overall allocations as determined in the Cost of Service Allocation (Appendix C).

Additionally, within this appendix each of the cost components is allocated amongst the various customer categories in direct proportion with that category's share of whichever unit (number of accounts, number of MEUs, level of consumption) is associated with each cost component.

Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION CUSTOMER CAPACITY BASE MAX DAY MAX HOUR SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY

SUSTAINABILITY
Allocation (Proposed COS Results) 100.0% 3.90% 36.53% 14.15% 15.91% 4.01% 5.44% 5.37% 10.18% 1.64% Starting Allocation 98.3% 3.8% 35.6% 14.0% 15.8% 4.0% 5.4% 5.3% 10.1% 1.6% 1 Year(s) to implement adjustment to Cost of Service based allocation 0 FY 23/24 100.0% 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 1.6% 1 FY 24/25 100.0% 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 1.6% 2 FY 25/26 100.0% 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 1.6% 3 FY 26/27 100.0% 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 1.6% 4 FY 27/28 100.0% 3.9% 36.5% 14.1% 15.9% 4.0% 5.4% 5.4% 10.2% 1.6% AMOUNT ALLOCABLE TO CONSTITUENT
1 FY 23/24 74,257,469$ 2,894,502$ 27,123,103$ 10,506,549$ 11,814,420$ 2,975,361$ 4,038,289$ 3,990,203$ 7,558,515$ 1,220,615$ 2 FY 24/25 79,627,363$ 3,103,816 29,084,497 11,266,325 12,668,774 3,190,523 4,330,316 4,278,752 8,105,106 1,308,883 3 FY 25/26 85,393,118$ 3,328,561 31,190,483 12,082,111 13,586,111 3,421,547 4,643,871 4,588,573 8,691,990 1,403,658 4 FY 26/27 91,583,093$ 3,569,842 33,451,419 12,957,919 14,570,940 3,669,568 4,980,496 4,921,190 9,322,055 1,505,406 5 FY 27/28 98,148,236$ 3,825,746 35,849,387 13,886,809 15,615,460 3,932,621 5,337,524 5,273,966 9,990,308 1,613,321 ALLOCATION ADJUSTMENT for Interruptible Rates 0.0% 0.0% 0.0% ‐53.7% 0.0% 0.0% 0.0% 0.0% ‐100.0% Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION CUSTOMER CLASS ALLOCATION 5-YEAR AVERAGE SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA- 6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
CUSTOMER SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 88.26% 1.69% 7.93% 0.85% 0. 77% 0.12% 0.04% 0.02% 0.33% Interruptible No No No No No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 88.26% 1.69% 7.93% 0.85% 0.77% 0.12% 0.04% 0.02% 0.33% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 88.26% 1.69% 7.93% 0.85% 0.77% 0.12% 0.04% 0.02% 0.33% FY 23/24 2,894,502 $ 2,554,570$ 49,037$ 229,617$ 24,576$ 22,209$ 3,361$ 1,091$ 437$ 9,604$ FY 24/25 3,103,816 2,739,302 52,583 246,221 26,353 23,815 3,604 1,170 468 10,298 FY 25/26 3,328,561 2,937,653 56,391 264,050 28,261 25,540 3,865 1,255 502 11,044 FY 26/27 3,569,842 3,150,597 60,478 283,191 30,310 27,391 4,146 1,346 538 11,845 FY 27/28 3,825,746 3,376,448 64,814 303,491 32,483 29,355 4,443 1,442 577 12,694 CAPACITY SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 67.81% 1.42% 25.51% 2.02% 1. 87% 0.80% 0.05% 0.00% 0.52% Interruptible No No No No No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 67.81% 1.42% 25.51% 2.02% 1.87% 0.80% 0.05% 0.00% 0.52% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 67.81% 1.42% 25.51% 2.02% 1.87% 0.80% 0.05% 0.00% 0.52% FY 23/24 27,123,103 $ 18,393,423$ 385,357$ 6,918,015$ 547,972$ 507,682$ 216,176$ 13,969$ ‐ $ 140,508$ FY 24/25 29,084,497 19,723,535 413,224 7,418,288 587,599 544,395 231,808 14,979 ‐ 150,669 FY 25/26 31,190,483 21,151,701 443,146 7,955,440 630,146 583,814 248,593 16,064 ‐ 161,579 FY 26/27 33,451,419 22,684,945 475,268 8,532,114 675,824 626,134 266,613 17,228 ‐ 173,291 FY 27/28 35,849,387 24,311,118 509,338 9,143,739 724,271 671,018 285,726 18,463 ‐ 185,714 Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION BASE SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 57.41% 1.57% 31.82% 3.49% 3. 28% 0.19% 0.04% 0.00% 2.20% Interruptible No No No No No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 57.41% 1.57% 31.82% 3.49% 3.28% 0.19% 0.04% 0.00% 2.20% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 57.41% 1.57% 31.82% 3.49% 3.28% 0.19% 0.04% 0.00% 2.20% FY 23/24 10,506,549 $ 6,032,249$ 165,008$ 3,343,532$ 366,540$ 344,960$ 19,596$ 3,966$ ‐ $ 230,697$ FY 24/25 11,266,325 6,468,468 176,940 3,585,318 393,046 369,906 21,014 4,253 ‐ 247,380 FY 25/26 12,082,111 6,936,845 189,752 3,844,928 421,507 396,691 22,535 4,561 ‐ 265,292 FY 26/27 12,957,919 7,439,683 203,507 4,123,639 452,061 425,446 24,169 4,892 ‐ 284,523 FY 27/28 13,886,809 7,972,997 218,096 4,419,242 484,467 455,944 25,901 5,243 ‐ 304,919 MAX DAY SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 57.84% 1.19% 26.72% 6.12% 4. 56% 0.50% 0.05% 0.00% 3.01% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% ‐53.75% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% ‐3.29% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 57.84% 1.19% 26.72% 2.83% 4.56% 0.50% 0.05% 0.00% 3.01% Reallocation to Non‐Interruptable 2.03% 0.04% 0.94% 0.00% 0.16% 0.02% 0.00% 0.00% 0.11% Total Allocation 59.87% 1.23% 27.66% 2.83% 4.72% 0.52% 0.06% 0.00% 3.11% FY 23/24 11,814,420 $ 7,073,092$ 145,859$ 3,267,511$ 334,531$ 557,849$ 61,416$ 6,633$ ‐ $ 367,530$ FY 24/25 12,668,774 7,584,579 156,407 3,503,800 358,722 598,189 65,857 7,112 ‐ 394,108 FY 25/26 13,586,111 8,133,772 167,732 3,757,507 384,697 641,504 70,626 7,627 ‐ 422,645 FY 26/27 14,570,940 8,723,373 179,891 4,029,881 412,583 688,005 75,745 8,180 ‐ 453,281 FY 27/28 15,615,460 9,348,709 192,786 4,318,764 442,159 737,325 81,175 8,767 ‐ 485,775 Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION MAX HOUR SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 57.44% 1.54% 31.46% 3.68% 3. 37% 0.21% 0.04% 0.00% 2.25% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 57.44% 1.54% 31.46% 3.68% 3.37% 0.21% 0.04% 0.00% 2.25% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 57.44% 1.54% 31.46% 3.68% 3.37% 0.21% 0.04% 0.00% 2.25% FY 23/24 2,975,361 $ 1,709,184$ 45,928$ 936,044$ 109,381$ 100,399$ 6,219$ 1,158$ ‐ $ 67,047$ FY 24/25 3,190,523 1,832,783 49,250 1,003,734 117,291 107,660 6,668 1,242 ‐ 71,896 FY 25/26 3,421,547 1,965,494 52,816 1,076,414 125,784 115,455 7,151 1,332 ‐ 77,102 FY 26/27 3,669,568 2,107,968 56,644 1,154,441 134,901 123,824 7,670 1,428 ‐ 82,691 FY 27/28 3,932,621 2,259,078 60,705 1,237,197 144,572 132,701 8,219 1,531 ‐ 88,619 SUPPLY 1 SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 65.45% 2.05% 26.53% 2.30% 2. 35% 0.09% 0.04% 0.00% 1.20% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 65.45% 2.05% 26.53% 2.30% 2.35% 0.09% 0.04% 0.00% 1.20% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 65.45% 2.05% 26.53% 2.30% 2.35% 0.09% 0.04% 0.00% 1.20% FY 23/24 4,038,289 $ 2,642,930$ 82,690$ 1,071,530$ 92,762$ 94,872$ 3,797$ 1,444$ ‐ $ 48,264$ FY 24/25 4,330,316 2,834,053 88,670 1,149,017 99,470 101,733 4,072 1,549 ‐ 51,754 FY 25/26 4,643,871 3,039,264 95,091 1,232,216 106,673 109,099 4,366 1,661 ‐ 55,501 FY 26/27 4,980,496 3,259,574 101,984 1,321,537 114,405 117,007 4,683 1,781 ‐ 59,525 FY 27/28 5,337,524 3,493,237 109,294 1,416,272 122,606 125,395 5,019 1,909 ‐ 63,792 Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION SUPPLY 2 SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 65.45% 2.05% 26.53% 2.30% 2. 35% 0.09% 0.04% 0.00% 1.20% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 65.45% 2.05% 26.53% 2.30% 2.35% 0.09% 0.04% 0.00% 1.20% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 65.45% 2.05% 26.53% 2.30% 2.35% 0.09% 0.04% 0.00% 1.20% FY 23/24 3,990,203 $ 2,611,459$ 81,706$ 1,058,770$ 91,657$ 93,742$ 3,752$ 1,427$ ‐ $ 47,689$ FY 24/25 4,278,752 2,800,305 87,614 1,135,335 98,286 100,521 4,023 1,530 ‐ 51,138 FY 25/26 4,588,573 3,003,073 93,958 1,217,543 105,402 107,800 4,314 1,641 ‐ 54,841 FY 26/27 4,921,190 3,220,760 100,769 1,305,801 113,043 115,614 4,627 1,760 ‐ 58,816 FY 27/28 5,273,966 3,451,641 107,993 1,399,407 121,146 123,902 4,959 1,886 ‐ 63,032 SUPPLY 3 SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 45.68% 0.83% 39.76% 4.68% 4. 73% 0.35% 0.04% 0.00% 3.93% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 45.68% 0.83% 39.76% 4.68% 4.73% 0.35% 0.04% 0.00% 3.93% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 45.68% 0.83% 39.76% 4.68% 4.73% 0.35% 0.04% 0.00% 3.93% FY 23/24 7,558,515 $ 3,452,785$ 63,110$ 3,005,072$ 353,391$ 357,314$ 26,176$ 3,261$ ‐ $ 297,407$ FY 24/25 8,105,106 3,702,472 67,673 3,222,382 378,946 383,153 28,068 3,497 ‐ 318,914 FY 25/26 8,691,990 3,970,565 72,573 3,455,713 406,385 410,897 30,101 3,750 ‐ 342,006 FY 26/27 9,322,055 4,258,383 77,834 3,706,210 435,843 440,682 32,283 4,022 ‐ 366,798 FY 27/28 9,990,308 4,563,646 83,414 3,971,890 467,087 472,272 34,597 4,310 ‐ 393,091 Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION SUPPLY 4 SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation 47.92% 0.88% 41.71% 0.00% 4. 96% 0.36% 0.05% 0.00% 4.13% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% 0. 00% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 47.92% 0.88% 41.71% 0.00% 4.96% 0.36% 0.05% 0.00% 4.13% Reallocation to Non‐Interruptable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Allocation 47.92% 0.88% 41.71% 0.00% 4.96% 0.36% 0.05% 0.00% 4.13% FY 23/24 2,135,911 $ 1,023,555$ 18,708$ 890,834$ ‐ $ 105,923$ 7,760$ 967$ ‐ $ 88,164$ FY 24/25 2,290,369 1,097,573 20,061 955,254 ‐ 113,583 8,321 1,037 ‐ 94,540 FY 25/26 2,456,212 1,177,048 21,514 1,024,423 ‐ 121,808 8,923 1,112 ‐ 101,385 FY 26/27 2,634,258 1,262,369 23,073 1,098,681 ‐ 130,637 9,570 1,192 ‐ 108,735 FY 27/28 2,823,095 1,352,862 24,727 1,177,440 ‐ 140,002 10,256 1,278 ‐ 116,529 SUPPLY SUSTAINABILITY SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA- 6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Baseline Allocation No Allocated Costs 57.84% 1.19% 26.72% 6.12% 4. 56% 0.50% 0.05% 0.00% 3.01% Interruptible No No No Yes No No No No No
Interruptible Adjustment 0.00% 0.00% 0.00% ‐100.00% 0.00% 0.00% 0.00% 0.00% 0.00% Effective Allocation Adjustment 0.00% 0.00% 0.00% ‐6.12% 0.00% 0.00% 0.00% 0.00% 0.00% Baseline Allocation With Adjustment 57.84% 1.19% 26.72% 0.00% 4.56% 0.50% 0.05% 0.00% 3.01% Reallocation to Non‐Interruptable 3.77% 0.08% 1.74% 0.00% 0.30% 0.03% 0.00% 0.00% 0.20% Total Allocation 61.61% 1.27% 28.46% 0.00% 4.86% 0.53% 0.06% 0.00% 3.20% FY 23/24 1,220,615 $ 752,056$ 15,509$ 347,422$ ‐ $ 59,314$ 6,530$ 705$ ‐ $ 39,078$ FY 24/25 1,308,883 806,440 16,630 372,546 ‐ 63,603 7,002 756 ‐ 41,904 FY 25/26 1,403,658 864,834 17,834 399,522 ‐ 68,209 7,509 811 ‐ 44,938 FY 26/27 1,505,406 927,524 19,127 428,483 ‐ 73,153 8,054 870 ‐ 48,196 FY 27/28 1,613,321 994,014 20,498 459,198 ‐ 78,397 8,631 932 ‐ 51,651 Appendix D
Customer Class Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
MULTI‐YEAR FUNCTIONAL COST ALLOCATION AND CUSTOMER CLASS ALLOCATION SUMMARY SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Total Allocation 62.28% 1.42% 28.37% 2.59% 3.02% 0.48% 0.05% 0.00% 1.80% FY 23/24 74,257,469 $ 46,245,304$ 1,052,913$ 21,068,347$ 1,920,810$ 2,244,266$ 354,782$ 34,622$ 437$ 1,335,989$ FY 24/25 79,627,363 49,589,511 1,129,053 22,591,895 2,059,713 2,406,559 380,438 37,126 468 1,432,600 FY 25/26 85,393,118 53,180,249 1,210,807 24,227,756 2,208,855 2,580,816 407,985 39,814 502 1,536,334 FY 26/27 91,583,093 57,035,178 1,298,576 25,983,977 2,368,970 2,767,894 437,559 42,700 538 1,647,699 FY 27/28 98,148,236 61,123,750 1,391,665 27,846,641 2,538,790 2,966,311 468,926 45,761 577 1,765,815 FIXED ONLY SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Total Allocation 69.79% 1.45% 23.81% 1.91% 1.77% 0.73% 0.05% 0.00% 0.50% FY 23/24 30,017,605 $ 20,947,993$ 434,395$ 7,147,632$ 572,548$ 529,892$ 219,537$ 15,060$ 437$ 150,112$ FY 24/25 32,188,314 22,462,837 465,808 7,664,509 613,952 568,210 235,413 16,149 468 160,967 FY 25/26 34,519,045 24,089,354 499,536 8,219,490 658,408 609,354 252,459 17,319 502 172,623 FY 26/27 37,021,260 25,835,542 535,747 8,815,305 706,134 653,525 270,759 18,574 538 185,136 FY 27/28 39,675,133 27,687,566 574,152 9,447,230 756,754 700,373 290,168 19,906 577 198,407 VARIABLE ONLY SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA-
6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Total Allocation 57.18% 1.40% 31.47% 3.05% 3.88% 0.31% 0.04% 0.00% 2.68% FY 23/24 44,239,864 $ 25,297,311$ 618,518$ 13,920,716$ 1,348,262$ 1,714,374$ 135,245$ 19,562$ ‐ $ 1,185,877$ FY 24/25 47,439,049 27,126,674 663,246 14,927,386 1,445,761 1,838,348 145,025 20,976 ‐ 1,271,633 FY 25/26 50,874,074 29,090,895 711,271 16,008,266 1,550,447 1,971,462 155,526 22,495 ‐ 1,363,711 FY 26/27 54,561,833 31,199,635 762,830 17,168,673 1,662,836 2,114,369 166,800 24,126 ‐ 1,462,563 FY 27/28 58,473,103 33,436,184 817,513 18,399,411 1,782,037 2,265,938 178,757 25,855 ‐ 1,567,407 FIXED AND VARIABLE PERCENT SFR (WA-1A) MFR (WA-1B) COMM/INDU (WA- 6)
INTERRUPT. IRR /
RECYC (WA-7/WA-
10)

LANDSCAPE (WA-
11) FLAT RATE (WA-2) RIVERSIDE WC
(WA-4)

GREENBELT (WA-
8)

AGRICULTURAL
(WA-12)
Percent Fixed 40.42% 45.3% 41.3% 33.9% 29.8% 23. 6% 61.9% 43.5% 100.0% 11.2% Percent Variable 59.58% 54.7% 58.7% 66.1% 70.2% 76. 4% 38.1% 56.5% 0.0% 88.8% TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

FINAL | MAY 2023
Appendix E

COST OF WATER ANAL YSIS
Appendix E, Cost of Water Allocation, summarizes all of the costs associated with supplying any of the four sources of water. Included in the summary are purchase costs, distribution costs, and other costs. The costs associated with each of the four sources are then summarized. In conjunction with the total quantity of water, CCF, to be provided by each source, the unique unit cost of providing water from each source is determined. The percentage of costs for potable water production from each source are then applied to RPU’s forecast water production costs to determine projected costs for each source.

Appendix E
Cost of Water Analysis
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF WATER
Supply 1 Supply 2 Supply 3 Supply 4 N/A
Gage Riverside
South/North Waterman Flume Rialto/Colton Basin Distribution Production Sum RPU Retail
FY 2019/20 26,403                        22,357                       26,321                       6,864                         458                             56,299 FY 2020/21 28,589                        22,486                       32,533                       5,783                         62                               62,107 FY 2021/22 27,438                        22,135                       31,189                       5,608                         15                               60,788 3‐Year Sum 82,430                        66,978                       90,043                       18,255                       535                             179,194 Costs Distribution Cost
FY 2019/20 3,595,811 $               3,312,176$               4,925,630$               1,213,962$               86,556$                     6,131,487$ FY 2020/21 3,879,520                  3,338,714                 5,810,403                 1,252,467                 63,204                       6,076,303 FY 2021/22 3,999,491                  3,845,700                 5,890,833                 1,318,338                 66,557                       6,234,063 3‐Year Sum 11,474,822 $             10,496,590$             16,626,866$             3,784,767$               216,316$                  18,441,854$ Total Allocation 18.8% 17.2% 27.2% 6.2% 0.4% 30.2%
Supply Only 26.9% 24.6% 39.0% 8.9% 0.5%
Unit Cost per AF Distribution Cost
FY 2019/20 $136.19 $148.15 $187. 14 $176.86 $188.99 $108.91 FY 2020/21 135.70 148.48 178.60 216.58 1,019.41 97.84
FY 2021/22 145.76 173.74 188.88 235.08 4,437.11 102.55
3‐Year Average $139.21 $156.72 $184.65 $207.33 $404.33 $102.92 Potable Production Total
FY 2019/20 20,786                        17,421                       26,321                       6,424                         ‐                               70,952 FY 2020/21 22,032                        16,577                       32,533                       5,472                         ‐                               76,613 FY 2021/22 20,615                        15,585                       31,189                       5,472                         ‐                               72,861 3‐Year Sum 63,433                        49,583                       90,043                       17,368                       ‐                               220,427 Supply Costs
Supply Costs
Appendix E
Cost of Water Analysis
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF WATER
Supply 1 Supply 2 Supply 3 Supply 4 N/A
POTABLE ADJUSTMENTS Gage Riverside
South/North Waterman Flume Rialto/Colton Basin Total
Water Loss Above Linden‐Evans Total
FY 2019/20 (300)                             (251)                            (379)                            (93)                              ‐                               (1,023) FY 2020/21 ‐                              ‐                               ‐                               ‐                               ‐                               ‐ FY 2021/22 ‐                              ‐                               ‐                               ‐                               ‐                               ‐ 3‐Year Sum (300)                            (251)                           (379)                           (93)                              ‐                               (1,023) Potable Wheeled to WMWD Total
FY 2019/20 (5,102)                        (5,102)
FY 2020/21 (4,404)                        (4,404)
FY 2021/22 (4,910)                        (4,910)
3‐Year Sum ‐                              ‐                               (14,416)                      ‐                               ‐                               (14,416) Wholesale to WMWD Total
FY 2019/20 (640)                             (536)                            (810)                            (198)                            ‐                               (2,184) FY 2020/21 (909)                             (684)                            (1,343)                        (226)                            ‐                               (3,163) FY 2021/22 (238)                             (180)                            (360)                            (63)                              ‐                               (841) 3‐Year Sum (1,787)                         (1,400)                        (2,513)                        (487)                           ‐                               (6,188) NORCO Surplus Total
FY 2019/20 (34)                               (29)                              (43)                              (11)                              ‐                               (117) FY 2020/21 (128)                             (96)                              (189)                            (32)                              ‐                               (445) FY 2021/22 ‐                              ‐                               ‐                               ‐                               ‐                               ‐ 3‐Year Sum (162)                            (125)                           (232)                           (42)                              ‐                               (562) Delivered to UCR Total
FY 2019/20 ‐                              ‐
FY 2020/21 ‐                              ‐
FY 2021/22 ‐                              ‐
3‐Year Sum ‐                              ‐                               ‐                               ‐                               ‐                               ‐ Water Loss Below Linden‐Evans Total
FY 2019/20 (1,824)                         (1,529)                        (2,310)                        (564)                            ‐                               (6,228) FY 2020/21 (1,897)                         (1,428)                        (2,802)                        (471)                            ‐                               (6,598) FY 2021/22 (1,873)                         (1,416)                        (2,834)                        (497)                            ‐                               (6,620) 3‐Year Sum (5,595)                         (4,373)                        (7,946)                        (1,532)                        ‐                               (19,446) Available For Potable Use (Estimated) Total
FY 2019/20 17,988                       15,076                       17,676                       5,559                         ‐                               56,299 FY 2020/21 19,097                       14,369                       23,796                       4,743                         ‐                               62,004 FY 2021/22 18,504                        13,989                       23,086                       4,912                         ‐                               60,490 3‐Year Sum 55,589                        43,433                       64,557                       15,214                       ‐                               178,793 Appendix E
Cost of Water Analysis
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF WATER
Supply 1 Supply 2 Supply 3 Supply 4 N/A
CALCULATED POTABLE COSTS Gage Riverside
South/North Waterman Flume Rialto/Colton Basin
Potable Supply Costs
FY 2019/20 2,449,773$               2,233,471$               3,307,757$               983,226$                   ‐ $ FY 2020/21 2,591,433                 2,133,432                 4,249,902                 1,027,208                 ‐ FY 2021/22 2,697,273                  2,430,431                 4,360,312                 1,154,604                 ‐ 3‐Year Sum 7,738,478 $               6,797,334$               11,917,971$             3,165,038$               ‐ $ Supply Only 26.1% 22.9% 40.2% 10.7% 0.0%
Distribution Costs
FY 2019/20 1,959,067$               1,641,903$               1,925,047$               605,470$                   ‐ $ FY 2020/21 1,868,355                 1,405,757                 2,328,066                 464,028                     ‐ FY 2021/22 1,897,695                  1,434,635                 2,367,534                 503,696                     ‐ 3‐Year Sum 5,725,118 $               4,482,295$               6,620,647$               1,573,193$               ‐ $ Total Potable Costs
FY 2019/20 4,408,840$               3,875,374$               5,232,805$               1,588,695$               ‐ $ FY 2020/21 4,459,788                 3,539,189                 6,577,967                 1,491,236                 ‐ FY 2021/22 4,594,968                  3,865,066                 6,727,846                 1,658,299                 ‐ 3‐Year Sum 13,463,597 $             11,279,629$             18,538,618$             4,738,231$               ‐ $ Supply With Distribution 28.0% 23.5% 38.6% 9.9% 0.0%
Appendix E
Cost of Water Analysis
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
COST OF WATER
Supply 1 Supply 2 Supply 3 Supply 4 N/A
THREE YEAR AVG Gage Riverside
South/North Waterman Flume Rialto/Colton Basin
Three Year Average Cost 2,579,493$               2,265,778$               3,972,657$               1,055,013$               ‐ $ Average Available AF 18,530                       14,478                       21,519                       5,071                         ‐ Average Available CCF 8,071,535                 6,306,521                 9,373,657                 2,209,041                 ‐ Overall Unit Cost ($/AF) $139.21 $156.50 $184.61 $208.04 Percent of Supply 31% 24% 36% 9% 0%
Percent of Potable Supply Costs 26% 23% 40% 11% 0%
Incremental Increase in Costs Above
Supply 1 0% 12% 33% 49%
Supply 1 Supply 2 Supply 3 Supply 4 N/A
TWO YEAR AVG Gage Riverside
South/North Waterman Flume Rialto/Colton Basin
Two Year Average Cost 2,644,353$               2,281,932$               4,305,107$               1,090,906$               ‐ $ Average Available AF 18,801                       14,179                       23,441                       4,827                         ‐ Average Available CCF 8,189,522                 6,176,272                 10,210,739               2,102,732                 ‐ Overall Unit Cost ($/AF) $140.65 $160.94 $183.66 $225.99 Percent of Supply 31% 23% 38% 8% 0%
Percent of Supply Costs 26% 22% 42% 11% 0%

FINAL | MAY 2023
Appendix F

SUPPL Y ALLOCATION
Appendix F, Supply Allocation, presents an estimate of the percent of each water supply that is used by each customer class. This distribution of the water supplies amongst the customer class also incorporates an allocation between each customer class's tiers, where applicable. The cheapest of the water sources is allocated first to the lower tiers, while each progressively more expensive source is allocated as needed to meet the demands associated with each tier. The distribution of each water source's capacity is later used to calculate the value of water demanded by each tier within each customer class as shown in Appendix H.

Appendix F
Supply Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
SUPPLY ALLOCATION

GAGE RIVERSIDE

SOUTH/NORTH WATERMAN FLUME
CLASS ALLOCATION FY 23/24

ACCOUNTS
FY 23/24
MEU

INDOOR USAGE
MONTHLY CCF SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 TOTAL FY 23/24 Forecasted Usage
Percent of Supplies 31% 24% 36% 9% 100%
Total Available for RPU Retail 8,189,522 6,176,272 10,210,739 2,102,732 26,679,265 23,344,985 Step 1: allocate supply based on annualized 3‐month min ANNUALIZED 3-MONTH MINIMUM ANNUALIZED
3 MONTH MIN

LESS DEDICATED
ALLOCATION REMAINING SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 TOTAL SUBTOTAL

ALLOCATED
Remaining Available Before Allocation 8,189,522 6,176,272 10,210,739 2,102,732 26,679,265 Amount to be Allocated 8,189,522 6,176,272 882,052 0
SFR (WA‐1A) 9,979,224 ‐ 9,979,224 5,359,778 4,042,171 577,274 ‐ 9,979,224 9,979,224 MFR (WA‐1B) 312,224 ‐ 312,224 167,693 126,469 18,061 ‐ 312,224 312,224 FLAT RATE (WA‐2) 14,337 ‐ 14,337 7,700 5,807 829 ‐ 14,337 14,337 RIVERSIDE WC (WA‐4) 5,453 ‐ 5,453 2,929 2,209 315 ‐ 5,453 5,453 COMM/INDU (WA‐6) 4,045,901 ‐ 4,045,901 2,173,028 1,638,827 234,046 ‐ 4,045,901 4,045,901 INTERRUPT. IRR / RECYC (WA‐7/WA‐10) 350,252 ‐ 350,252 188,118 141,873 20,261 ‐ 350,252 350,252 LANDSCAPE (WA‐11) 358,219 ‐ 358,219 192,397 145,100 20,722 ‐ 358,219 358,219 AGRICULTURAL (WA‐12) 182,235 ‐ 182,235 97,877 73,816 10,542 ‐ 182,235 182,235 Total: 15,247,845 ‐ 15,247,845 8,189,522 6,176,272 882,052 ‐ 15,247,845 15,247,845 Remaining to Allocate 0 0 9,328,687 2,102,732 11,431,419 Step 2: allocate supply based on annualized winter

ANNUALIZED WINTER ANNUALIZED
WINTER

LESS DEDICATED
ALLOCATION REMAINING SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 TOTAL SUBTOTAL

ALLOCATED
Remaining Available Before Allocation 0 0 9,328,687 2,102,732 11,431,419 Amount to be Allocated 0 0 4,630,122 0
SFR (WA‐1A) 11,432,895 (9,979,224) 1,453,672 ‐ ‐ 1,453,672 ‐ 1,453,672 11,432,895 MFR (WA‐1B) 334,390 (312,224) 22,166 ‐ ‐ 22,166 ‐ 22,166 334,390 FLAT RATE (WA‐2) 30,758 (14,337) 16,421 ‐ ‐ 16,421 ‐ 16,421 30,758 RIVERSIDE WC (WA‐4) 6,955 (5,453) 1,502 ‐ ‐ 1,502 ‐ 1,502 6,955 COMM/INDU (WA‐6) 6,538,766 (4,045,901) 2,492,865 ‐ ‐ 2,492,865 ‐ 2,492,865 6,538,766 INTERRUPT. IRR / RECYC (WA‐7/WA‐10) 564,447 (350,252) 214,195 ‐ ‐ 214,195 ‐ 214,195 564,447 LANDSCAPE (WA‐11) 578,229 (358,219) 220,009 ‐ ‐ 220,009 ‐ 220,009 578,229 AGRICULTURAL (WA‐12) 391,527 (182,235) 209,292 ‐ ‐ 209,292 ‐ 209,292 391,527 Total: 19,877,967 (15,247,845) 4,630,122 ‐ ‐ 4,630,122 ‐ 4,630,122 19,877,967 Remaining to Allocate 0 0 4,698,565 2,102,732 6,801,297 Appendix F
Supply Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
SUPPLY ALLOCATION

GAGE RIVERSIDE

SOUTH/NORTH WATERMAN FLUME
Step 3: allocate remaining supply

REMAINING USAGE TOTAL USAGE LESS PREVIOUSLY
ALLOCATED REMAINING SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 TOTAL SUBTOTAL

ALLOCATED
Remaining Available Before Allocation 0 0 4,698,565 2,102,732 6,801,297 Amount to be Allocated 0 0 3,467,018 0
SFR (WA‐1A) 13,476,117 (11,432,895) 2,043,221 ‐ ‐ 2,043,221 ‐ 2,043,221 13,476,117 MFR (WA‐1B) 368,630 (334,390) 34,239 ‐ ‐ 34,239 ‐ 34,239 368,630 FLAT RATE (WA‐2) 44,394 (30,758) 13,636 ‐ ‐ 13,636 ‐ 13,636 44,394 RIVERSIDE WC (WA‐4) 8,986 (6,955) 2,031 ‐ ‐ 2,031 ‐ 2,031 8,986 COMM/INDU (WA‐6) 7,357,736 (6,538,766) 818,971 ‐ ‐ 818,971 ‐ 818,971 7,357,736 INTERRUPT. IRR / RECYC (WA‐7/WA‐10) 807,384 (564,447) 242,936 ‐ ‐ 242,936 ‐ 242,936 807,384 LANDSCAPE (WA‐11) 759,116 (578,229) 180,887 ‐ ‐ 180,887 ‐ 180,887 759,116 AGRICULTURAL (WA‐12) 522,624 (391,527) 131,096 ‐ ‐ 131,096 ‐ 131,096 522,624 Total: 23,344,985 (19,877,967) 3,467,018 ‐ ‐ 3,467,018 ‐ 3,467,018 23,344,985 Remaining to Allocate 0 0 1,231,548 2,102,732 3,334,279 TRUE Step 4: summarize
REMAINING USAGE SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 TOTAL SFR (WA‐1A) 5,359,778 4,042,171 4,074,168 ‐ 13,476,117 MFR (WA‐1B) 167,693 126,469 74,467 ‐ 368,630 FLAT RATE (WA‐2) 7,700 5,807 30,886 ‐ 44,394 RIVERSIDE WC (WA‐4) 2,929 2,209 3,848 ‐ 8,986 COMM/INDU (WA‐6) 2,173,028 1,638,827 3,545,882 ‐ 7,357,736 INTERRUPT. IRR / RECYC (WA‐7/WA‐10) 188,118 141,873 477,393 ‐ 807,384 LANDSCAPE (WA‐11) 192,397 145,100 421,618 ‐ 759,116 AGRICULTURAL (WA‐12) 97,877 73,816 350,930 ‐ 522,624 Total: 8,189,522 6,176,272 8,979,192 ‐ 23,344,985 check: Sum of steps 1 to 3 above. 8,189,522 6,176,272 8,979,192 ‐ 23,344,985 Appendix F
Supply Allocation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
SUPPLY ALLOCATION

GAGE RIVERSIDE

SOUTH/NORTH WATERMAN FLUME
Step 5: reallocate remaining supply
TOTAL w/ REALLOCATION of REMAINING SUPPLY 4 SUPPLY 1 SUPPLY 2 S UPPLY 3 SUPPLY 4 TOTAL SFR (WA‐1A) 5,359,778 4,042,171 4,664,340 1,007,655 15,073,945 MFR (WA‐1B) 167,693 126,469 85,254 18,418 397,834 FLAT RATE (WA‐2) 7,700 5,807 35,360 7,639 56,507 RIVERSIDE WC (WA‐4) 2,929 2,209 4,406 952 10,495 COMM/INDU (WA‐6) 2,173,028 1,638,827 4,059,528 876,995 8,748,379 INTERRUPT. IRR / RECYC (WA‐7/WA‐10) 188,118 141,873 477,393 ‐ 807,384 LANDSCAPE (WA‐11) 192,397 145,100 482,693 104,278 924,468 AGRICULTURAL (WA‐12) 97,877 73,816 401,765 86,795 660,253 Total: 8,189,522 6,176,272 10,210,739 2,102,732 26,679,265 check: Total available for RPU retail. 8,189,522 6,176,272 10,210,739 2,102,732 26,679,265 PERCENT BY SUPPLY SUPPLY 1 SUPPLY 2 SUPPLY 3 SUPPLY 4 TOTAL SFR (WA‐1A) 65.45% 65.45% 45.68% 47.92% 56.50%
MFR (WA‐1B) 2.05% 2.05% 0.83% 0.88% 1.49%
FLAT RATE (WA‐2) 0.09% 0.09% 0.35% 0.36% 0.21%
RIVERSIDE WC (WA‐4) 0.04% 0.04% 0.04% 0.05% 0.04%
COMM/INDU (WA‐6) 26.53% 26.53% 39.76% 41.71% 32.79%
INTERRUPT. IRR / RECYC (WA‐7/WA‐10) 2.30% 2.30% 4.68% 0.00% 3.03% LANDSCAPE (WA‐11) 2.35% 2.35% 4.73% 4.96% 3.47%
AGRICULTURAL (WA‐12) 1.20% 1.20% 3.93% 4.13% 2.47%
Total: 100.00% 100.00% 100.00% 100.00% 100.00%

WITH RESILIENCY

COMPONENT

FINAL | MAY 2023
Appendix G

CUSTOMER DATA AND PROJECTIONS
Appendix G, Customer Data and Projections, shows the projected customer demands by class, season, and tier (where applicable). Appendix G also presents the calculation of Max Day and Max Hour peak factors and extra capacity for each customer class based on their projected monthly demands and the overall system Peak Hour and Peak Day factors for the master plan. This projected demand data and associated analysis are basis of the many of the cost of service allocation and used within the rate analyses.

Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE
Summer Summer Summer Summer Winter Winter Winter Winter Winter Winter Winter Summer JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Projected Annual Use

RESIDENTIAL
WA‐1A Single Family Residential 1,350,819 1,459,380 1,433,518 1,320,574 1,184,713 968,804 786,362 824,567 883,877 921,661 1,099,205 1,242,637 13,476,117 Tier 1 429,029 430,573 430,132 427,442 422,074 409,668 390,518 397,471 404,750 405,699 418,693 426,489 4,992,538 Tier 2 678,112 731,394 718,599 658,844 582,274 448,382 325,046 351,919 394,675 409,234 527,732 615,542 6,441,753 Tier 3 243,678 297,413 284,786 234,288 180,365 110,754 70,798 75,177 84,452 106,728 152,780 200,606 2,041,826 WA‐1B Multi‐Family Residential 34,140 36,721 36,220 33,932 31,380 28,883 26, 182 25,369 26,505 27,389 29,353 32,555 368,630 Tier 1 15,526 15,612 15,578 15,437 15,189 14,971 14,632 14,674 14,998 15,082 15,306 15,537 182,542 Tier 2 18,615 21,109 20,642 18,495 16,191 13,912 11,550 10,695 11,507 12,307 14,047 17,018 186,087

COMMERICAL/INDUSTRIAL
WA‐6 Commercial and Industrial 686,857 740,785 753,585 711,905 661,571 575,519 480,757 487,227 523,355 513,553 572,297 650,325 7,357,736 WA‐7 & 10 Interruptible Irrigation & Recycled 92,075 108,554 104,292 89,238 70,376 51,004 29,817 35,553 43,939 41,315 57,256 83,964 807,384 WA‐11 Landscape Irrigation 84,324 89,581 92,358 79,443 68,700 51,528 31,999 35,970 42,890 44,897 61,315 76,111 759,116 OTHER
WA‐4 Riverside Water Company Irrigators 990 1,069 1,108 943 908 608 432 452 528 479 649 818 8,986 Tier 1 310 298 308 318 311 270 224 238 242 245 272 299 3,334 Tier 2 554 598 617 541 453 257 163 197 250 226 317 450 4,623 Tier 3 127 174 183 84 145 81 45 17 36 8 61 69 1,028
WA‐2F l a t Rate ‐ Temp Service 3,773 7,090 7,426 4,602 3,556 2,752 1,289 1,401 2,175 3,083 3,686 3,561 44,394 WA‐5F i r e Protection Services & Hydrant 000000000 000 0 WA‐8 Greenbelt Irrigation Service 10,217 8,731 5,909 10,588 3,026 8,008 5,328 2,397 2,568 4,677 5,307 3,154 69,909 WA‐12 Agricultural Service 58,112 61,774 63,207 54,402 43,533 28,646 22,305 25,603 31,412 33,440 43,452 56,737 522,624 WA‐7 Interruptible Irrigation 82,724 97,926 94,854 82,070 64,239 46,913 27,949 32,756 40,513 38,207 53,841 77,651 739,645 WA‐10 Recycled Water Service 9,351 10,628 9,438 7,168 6,137 4,091 1,868 2,797 3,426 3,108 3,414 6,312 67,739 TOTAL USAGE 2,321,307 2,513,686 2,497,623 2,305,627 2,067,763 1,715,753 1,384,471 1,438,539 1,557,251 1,590,494 1,872,521 2,149,861 23,414,894 FORECASTED USAGE (FY 23/24) - Input from Customer
Data Analysis.xlsx
Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE
Based on Updated Tier Breaks
AVERAGE MONTHLY USAGE in PERCENTAGE JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Line Total

RESIDENTIAL
WA‐1A Single Family Residential 10.02% 10.83% 10.64% 9.80% 8.79% 7.19% 5.84% 6.12% 6.56% 6.84% 8.16% 9.22% 100% Tier 1 8.59% 8.62% 8.62% 8.56% 8.45% 8.21% 7.82% 7.96% 8.11% 8.13% 8.39% 8.54% 100% Tier 2 10.53% 11.35% 11.16% 10.23% 9.04% 6.96% 5.05% 5.46% 6.13% 6.35% 8.19% 9.56% 100% Tier 3 11.93% 14.57% 13.95% 11.47% 8.83% 5.42% 3.47% 3.68% 4.14% 5.23% 7.48% 9.82% 100% WA‐1B Multi‐Family Residential 9.26% 9.96% 9.83% 9.21% 8.51% 7.84% 7.10% 6.88% 7.19% 7.43% 7.96% 8.83% 100% Tier 1 8.51% 8.55% 8.53% 8.46% 8.32% 8.20% 8.02% 8.04% 8.22% 8.26% 8.38% 8.51% 100% Tier 2 10.00% 11.34% 11.09% 9.94% 8.70% 7.48% 6.21% 5.75% 6.18% 6.61% 7.55% 9.14% 100%

COMMERICAL/INDUSTRIAL
WA‐6 Commercial and Industrial 9.34% 10.07% 10.24% 9.68% 8.99% 7.82% 6.53% 6.62% 7.11% 6.98% 7.78% 8.84% 100% WA‐7 Interruptible Irrigation 11.18% 13.24% 12.82% 11.10% 8.69% 6.34% 3.78% 4.43% 5.48% 5.17% 7.28% 10.50% 100% WA‐11 Landscape Irrigation 11.11% 11.80% 12.17% 10.47% 9.05% 6.79% 4.22% 4.74% 5.65% 5.91% 8.08% 10.03% 100% OTHER
WA‐4 Riverside Water Company Irrigators 11.02% 11.90% 12.33% 10.49% 10.11% 6.77% 4.81% 5.03% 5.88% 5.33% 7.22% 9.11% 100% Tier 1 9.29% 8.94% 9.24% 9.54% 9.31% 8.08% 6.72% 7.14% 7.27% 7.36% 8.14% 8.97% 100% Tier 2 11.98% 12.93% 13.35% 11.70% 9.80% 5.57% 3.53% 4.26% 5.41% 4.88% 6.85% 9.74% 100% Tier 3 12.32% 16.88% 17.78% 8.14% 14.06% 7.92% 4.36% 1.64% 3.47% 0.81% 5.90% 6.71% 100% WA‐2F l a t Rate ‐ Temp Service 8.50% 15.97% 16.73% 10.37% 8.01% 6.20% 2.90% 3.15% 4.90% 6.94% 8.30% 8.02% 100% WA‐5F i r e Protection Services & Hydrant 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0% WA‐8 Greenbelt Irrigation Service 14.61% 12.49% 8.45% 15.15% 4.33% 11.46% 7.62% 3.43% 3.67% 6.69% 7.59% 4.51% 100% WA‐10 Recycled Water Service 13.80% 15.69% 13.93% 10.58% 9.06% 6.04% 2.76% 4.13% 5.06% 4.59% 5.04% 9.32% 100% WA‐12 Agricultural Service 11.12% 11.82% 12.09% 10.41% 8.33% 5.48% 4.27% 4.90% 6.01% 6.40% 8.31% 10.86% 100%

Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE

RESIDENTIAL
WA‐1A Single Family Residential
Tier 1
Tier 2
Tier 3
WA‐1B Multi‐Family Residential
Tier 1
Tier 2

COMMERICAL/INDUSTRIAL
WA‐6 Commercial and Industrial
WA‐7 & 10 Interruptible Irrigation & Recycled
WA‐11 Landscape Irrigation
OTHER
WA‐4 Riverside Water Company Irrigators
Tier 1
Tier 2
Tier 3
WA‐2F l a t Rate ‐ Temp Service
WA‐5F i r e Protection Services & Hydrant
WA‐8 Greenbelt Irrigation Service
WA‐12 Agricultural Service
TOTAL USAGE
FORECASTED USAGE (FY 23/24) - Input from Customer
Data Analysis.xlsx
7 months 5 months
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Winter Summer Ratio 13,476,117 13,567,968 13,662,795 13,760,195 13,860, 518 13,961,573 14,060,743 14,161,425 14,263,314 952,741 1,361,386 1.43 4,992,538 5,026,567 5,061,697 5,097, 782 5,134,949 5,172,387 5,209,126 5,246,426 5,284,174 406,982 428,733 1.05 6,441,753 6,485,659 6,530,987 6,577, 546 6,625,502 6,673,807 6,721,211 6,769,339 6,818,043 434,180 680,498 1.57 2,041,826 2,055,742 2,070,110 2,084, 868 2,100,068 2,115,379 2,130,405 2,145,660 2,161,097 111,579 252,154 2.26 368,630 371,142 373,736 376,400 379, 145 381,909 384,622 387,376 390,163 27,866 34,714 1.25 182,542 183,787 185,071 186,390 187,749 189, 118 190,462 191,825 193,206 14,979 15,538 1.04 186,087 187,355 188,665 190,010 191,395 192, 791 194,160 195,550 196,957 12,887 19,176 1.49 7,357,736 7,464,359 7,572,724 7,682,792 7,794, 744 7,908,327 8,023,566 8,140,484 8,259,105 544,897 708,691 1.30 807,384 818,102 829,979 842,043 854, 313 866,761 879,392 892,206 905,207 47,037 95,625 2.03 759,116 770,116 781,296 792,652 804, 203 815,921 827,811 839,873 852,112 48,186 84,363 1.75 8,986 8,986 8,986 8,986 8,986 8,986 8,986 8,986 8,986 580 986 1.70 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 257 307 1.19 4,623 4,623 4,623 4,623 4,623 4,623 4,623 4,623 4,623 266 552 2.07 1,028 1,028 1,028 1,028 1,028 1,028 1,028 1,028 1,028 56 127 2.27 44,394 44,394 44,394 44,394 44,394 44,394 44,394 44,394 44,394 2,563 5,290 2.06 0 0 0000000 0 0 0.00
69,909 69,909 69,909 69,909 69,909 69,909 69,909 69,909 69,909 4,473 7,720 1.73 522,624 522,624 522,624 522,624 522, 624 522,624 522,624 522,624 522,624 32,627 58,847 1.80 23,414,894 23,637,599 23,866,442 24,099,994 24,338,834 24,580,403 24,822,044 25,067,276 25,315,813

PROJECTIONS (MATCHED TO PRO FORMA)
Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE

RESIDENTIAL
WA‐1A Single Family Residential
Tier 1
Tier 2
Tier 3
WA‐1B Multi‐Family Residential
Tier 1
Tier 2

COMMERICAL/INDUSTRIAL
WA‐6 Commercial and Industrial
WA‐7 & 10 Interruptible Irrigation & Recycled
WA‐11 Landscape Irrigation
OTHER
WA‐4 Riverside Water Company Irrigators
Tier 1
Tier 2
Tier 3
WA‐2F l a t Rate ‐ Temp Service
WA‐5F i r e Protection Services & Hydrant
WA‐8 Greenbelt Irrigation Service
WA‐12 Agricultural Service
TOTAL USAGE
FORECASTED USAGE (FY 23/24) - Input from Customer
Data Analysis.xlsx
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Winter Summer Avg Winter Summer Avg Winter Summer Avg Winter Summer Avg Winter Summer Avg 000111222333444
6,669,189 6,806,928 1,123,010 6,714, 645 6,853,323 1,130,664 6,761,574 6, 901,221 1,138,566 6,809,776 6,950,419 1,146,683 6,859,425 7,001,093 1 ,155,043 2,848,873 2,143,665 416,045 2,868,290 2,158,276 418,881 2,888,337 2,173,360 421,808 2,908,928 2,188,854 424,815 2,930,136 2,204,813 427,912 3,039,262 3,402,491 536,813 3,059,977 3,425,682 540,472 3,081,363 3,449,624 544,249 3,103,330 3,474,216 548,129 3,125,956 3,499,546 552,125 781,054 1,260,772 170,152 786,378 1,269,365 171,312 791,874 1,278,236 172,509 797,519 1, 287,349 173,739 803,333 1,296,735 175,006 195,061 173,568 30,719 196,391 174,751 30,929 197,763 175, 973 31,145 199,173 177,227 31,367 200,625 178,519 31,595 104,853 77,690 15,212 105,567 78,219 15,316 106,305 78, 766 15,423 107,063 79,327 15,533 107,844 79,906 15,646 90,208 95,879 15,507 90,823 96,532 15,613 91,458 97, 207 15,722 92,110 97,900 15,834 92,781 98,614 15,950 00 00 00
3,814,280 3,543,456 613,145 3,869,554 3,594,805 622,030 3,925,731 3,646,993 631,060 3,982,790 3,700,001 640,233 4,040,827 3,753,917 649,562 329,261 478,123 67,282 333,632 484,470 68,175 338,476 491, 503 69,165 343,395 498,647 70,170 348,399 505,913 71,193 337,300 421,816 63,260 342,188 427,928 64,176 347,155 434, 141 65,108 352,201 440,451 66,054 357,333 446,869 67,017 000000000
4,057 4,929 749 4,057 4,929 749 4,057 4, 929 749 4,057 4,929 749 4,057 4,929 749 1,801 1,533 278 1,801 1,533 278 1,801 1, 533 278 1,801 1,533 278 1,801 1,533 278 1,863 2,760 385 1,863 2,760 385 1,863 2, 760 385 1,863 2,760 385 1,863 2,760 385 392 636 86 392 636 86 392 636 86 392 636 86 392 636 86
17,942 26,452 3,700 17,942 26,452 3,700 17,942 26, 452 3,700 17,942 26,452 3,700 17,942 26,452 3,700 000000000000000
31,311 38,598 5,826 31,311 38,598 5,826 31,311 38, 598 5,826 31,311 38,598 5,826 31,311 38,598 5,826 228,391 294,233 43,552 228,391 294,233 43,552 228,391 294, 233 43,552 228,391 294,233 43,552 228,391 294,233 43,552 11,626,792 11,788,103 1,951,243 11,738,111 11,899,489 1,969,801 11,852,400 12,014,043 1,988,871 11,969,036 12,130,957 2,008,334 12,088,310 1 2,250,523 2,028,237 Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE
Units of Service 365 days in a year 30.42 days in a month

BASE MAX DAY MAX HOUR MM/AVG
FY 23/24
ANNUAL USE AVG DAY MAX MONTH AVG MONTH ADD of MM MDD PEAKING FACTOR

TOTAL MDD

CAPACITY
EXTRA

CAPACITY

MHD PEAKING
FACTOR

TOTAL MHD

CAPACITY
EXTRA
CAPACITY For Comparison

RESIDENTIAL
WA‐1A Single Family Residential 13,476,117 36,921 1,459,380 1,123,010 47,974 1.48 54,749 17,828 1.77 65,177 47,349 1.30 Tier 1 4,992,538 13,678 430,573 416,045 14,154 1.18 16,153 2,475 1.41 19,230 16,755 Tier 2 6,441,753 17,649 731,394 536,813 24,043 1.55 27,438 9,790 1.85 32,665 22,875 Tier 3 2,041,826 5,594 297,413 170,152 9,777 1.99 11,157 5,563 2.37 13,283 7,719 WA‐1B Multi ‐Family Residential 368,630 1,010 36,721 30,719 1,207 1.36 1,378 368 1.62 1,640 1,272 1.20 Tier 1 182,542 500 15,612 15,212 513 1.17 586 86 1.39 697 612 Tier 2 186,087 510 21,109 15,507 694 1.55 792 282 1.85 943 661

COMMERICAL/INDUSTRIAL
WA‐6 Commercial and Industrial 7,357,736 20,158 753,585 613,145 24,773 1.40 28,271 8,113 1.67 33,656 25,543 1.23 WA‐7 & 10 Interruptible Irrigation & Recycled 807,384 2,212 108,554 67,282 3,569 1.84 4,072 1,860 2.19 4,848 2,988 1.61 WA‐11 Landscape Irrigation 759,116 2,080 92,358 63,260 3,036 1.67 3,465 1,385 1.98 4,125 2,740 1.46 OTHER
WA‐4R i v e r s i d e Water Company Irrigators 8,986 25 1,108 749 36 1.69 42 17 2.01 49 33 1.48 Tier 1 3,334 9 318 278 10 1.31 12 3 1.55 14 11 Tier 2 4,623 13 617 385 20 1.83 23 10 2.18 28 17 Tier 3 1,028 3 183 86 6 2.44 74 2.90 8 4 WA‐2F l a t Rate ‐ Temp Service 44,394 122 7,426 3,700 244 2.29 279 157 2.73 332 175 2.01 WA‐5F i r e Protection Services & H y d r a n t 00000 0.00 00 0.00 ‐ ‐ WA‐8 Greenbelt Irrigation Service 69,909 192 10,588 5,826 348 2.07 397 206 2.47 473 267 1.82 WA‐12 Agricultural Service 522,624 1,432 63,207 43,552 2,078 1.66 2,371 939 1.97 2,823 1,884 1.45 TOTAL USAGE 23,414,894 64,150 2,532,928 1,951,241 83,265 1.48 95,023 30,873 1.76 113,123 82,250 1.30

SYSTEM DEMAND FACTORS CCF NOTES
Max Month Demand MMD 2,513,686 based on FY 23/24 projection above Average Day Demand ADD 64,150 based on FY 23/24 projection above Max Day Deamnd (FY 2021) MDD 94,301
Max Hour Demand (FY 2021) MHD 112,263
Average Day of Max Month ADD of MM 82,633
System Max Day Ratio MDD/ADD 1.47 based on FY 20/21 MDD/ADD System Max Hour Ratio MHD/ADD 1.75 based on FY 20/21 MHD/ADD System Max Hour / Max Day Ratio MHD/MDD 1.19
System Max Day / Avg Day in Max Month MDD/MMD 1.14
Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE

EXTRA CAPACITY ALLOCATIONS NOTES
BASED ON MAX DAY
Base 1.00 68.0%
Max Day 0.47 32.0%
MDD/ADD 1.47 100.0%
BASE, MAX DAY, and MAX HOUR
Base 1.00 57.1%
Max Day 0.47 26.9%
Max Hour 0.28 16.0%
MHD / ADD 1.75 100.0%
MAX DAY and MAX HOUR
Max Day 1.47 84.0%
Max Hour 0.28 16.0%
MHD / ADD 1.75 100.0%
FISCAL YEAR Retail (AF) Retail (MG) AVG DAY
DEMAND
MAX DAY
DEMAND
PEAK HOUR
DEMAND
FY 18/19 55,451 18,070 34,380 50,538 60,164 FY 19/20 56,297 18,346 34,904 51,309 61,082 FY 20/21 57,656 18,788 35,747 52,548 62,557

1.47 1.75
Footnotes:
(1) Fiscal Year Retail Water Use from "Schem summary‐Fiscal" tabs, on this spreadsheet (2) = (AF *43,560*7.481)/1,000,000
(3) = MG*1,000,000/(365*24*60)
(4) = Average Day Demand (ADD) * 1.47; where the 1.47 peak factor is from the 2022 RPU Focused Water Master Plan (5) = Average Day Demand (MDD) *1.75; where the 1.75 peak factor is from the 2022 RPU Focused Water Master Plan; Peak Hour Demand is also known as Maximum Hour Demand
Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE

RESIDENTIAL
WA‐1A Single Family Residential
Tier 1
Tier 2
Tier 3
WA‐1B Multi‐Family Residential
Tier 1
Tier 2

PROJECTIONS (MATCHED TO PRO FORMA)
Appendix G
Customer Data and Projection
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
UNITS OF SERIVCE

RESIDENTIAL
WA‐1A Single Family Residential
Tier 1
Tier 2
Tier 3
WA‐1B Multi‐Family Residential
Tier 1
Tier 2

COMMERICAL/INDUSTRIAL
WA‐6 Commercial and Industrial
WA‐7 & 10 Interruptible Irrigation & Recycled
WA‐11 Landscape Irrigation
OTHER
WA‐4 Riverside Water Company Irrigators
Tier 1
Tier 2
Tier 3
WA‐2F l a t Rate ‐ Temp Service
WA‐5F i r e Protection Services & Hydrant
WA‐8 Greenbelt Irrigation Service
WA‐12 Agricultural Service
TOTAL USAGE
FORECASTED USAGE (FY 23/24) - Input from Customer
Data Analysis.xlsx
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Winter Summer Avg Winter Summer Avg Winter Summer Avg Winter Summer Avg Winter Summer Avg 000111222333444
6,669,189 6,806,928 1,123,010 6,714, 645 6,853,323 1,130,664 6,761,574 6, 901,221 1,138,566 6,809,776 6,950,419 1,146,683 6,859,425 7,001,093 1 ,155,043 2,848,873 2,143,665 416,045 2,868,290 2,158,276 418,881 2,888,337 2,173,360 421,808 2,908,928 2,188,854 424,815 2,930,136 2,204,813 427,912 3,039,262 3,402,491 536,813 3,059,977 3,425,682 540,472 3,081,363 3,449,624 544,249 3,103,330 3,474,216 548,129 3,125,956 3,499,546 552,125 781,054 1,260,772 170,152 786,378 1,269,365 171,312 791,874 1,278,236 172,509 797,519 1, 287,349 173,739 803,333 1,296,735 175,006 195,061 173,568 30,719 196,391 174,751 30,929 197,763 175, 973 31,145 199,173 177,227 31,367 200,625 178,519 31,595 104,853 77,690 15,212 105,567 78,219 15,316 106,305 78, 766 15,423 107,063 79,327 15,533 107,844 79,906 15,646 90,208 95,879 15,507 90,823 96,532 15,613 91,458 97, 207 15,722 92,110 97,900 15,834 92,781 98,614 15,950 00 00 00
3,814,280 3,543,456 613,145 3,869,554 3,594,805 622,030 3,925,731 3,646,993 631,060 3,982,790 3,700,001 640,233 4,040,827 3,753,917 649,562 329,261 478,123 67,282 333,632 484,470 68,175 338,476 491, 503 69,165 343,395 498,647 70,170 348,399 505,913 71,193 337,300 421,816 63,260 342,188 427,928 64,176 347,155 434, 141 65,108 352,201 440,451 66,054 357,333 446,869 67,017 000000000
4,057 4,929 749 4,057 4,929 749 4,057 4, 929 749 4,057 4,929 749 4,057 4,929 749 1,801 1,533 278 1,801 1,533 278 1,801 1, 533 278 1,801 1,533 278 1,801 1,533 278 1,863 2,760 385 1,863 2,760 385 1,863 2, 760 385 1,863 2,760 385 1,863 2,760 385 392 636 86 392 636 86 392 636 86 392 636 86 392 636 86
17,942 26,452 3,700 17,942 26,452 3,700 17,942 26, 452 3,700 17,942 26,452 3,700 17,942 26,452 3,700 000000000000000
31,311 38,598 5,826 31,311 38,598 5,826 31,311 38, 598 5,826 31,311 38,598 5,826 31,311 38,598 5,826 228,391 294,233 43,552 228,391 294,233 43,552 228,391 294, 233 43,552 228,391 294,233 43,552 228,391 294,233 43,552 11,626,792 11,788,103 1,951,243 11,738,111 11,899,489 1,969,801 11,852,400 12,014,043 1,988,871 11,969,036 12,130,957 2,008,334 12,088,310 1 2,250,523 2,028,237

FINAL | MAY 2023
Appendix H

RATE CALCULATIONS
Uniform Fixed Rates
Appendix H, Uniform Fixed Rates details the final calculation of the fixed monthly rates that are charged to all customers in relation to their meter size. The appendix shows the allocated costs related to providing service to customers regardless of meter size or customer class as well as the costs related to providing system capacity. The number of accounts and the number of MEUs as projected by the financial model are included.

The revenues to recover from the customer and capacity components are divided by the number of accounts and the number of MEU’s, respectively, to determine monthly component charge per account and per MEU.

Customer related expenses are evenly recovered over each account. Capacity related expenses are recovered over each MEU, thereby allocating more in costs to those customers with larger meters and thus requiring more system capacity. Appendix H Uniform Fixed Rates presents the resulting fixed charge per meter size over the course of the next five fiscal years (2023/24 – 2027/28).

SFR
Appendix H, SFR details the final calculation of the winter and summer rates to be charged to any customers designated as Single-Family Residences (SFR) using the projections calculated within the financial model for the number of accounts, water usage, and allocated revenue requirements. Appendix H, SFR presents the calculated rates for each of the next five fiscal years (2023/24 – 2027/28).

The rate structure for customers designated as SFR includes three tiers. Based on the projected demands by tier and season (from Appendix G, and included in Appendix H), the seasonal peak adjustment ratio for Tier 3, and the supply allocation, the costs associated with serving SFR customers are allocated between the seasons and tiers. These costs are recovered over each CCF of consumption within each season and tier.

MFR
Appendix H, MFR details the final calculation of the winter and summer rates to be charged to any customers designated as Multi-Family Residences (MFR) using the projections calculated within the financial model for the number of accounts, water usage, and allocated revenue requirements. Appendix H, MFR presents the calculated rates for each of the next five fiscal years (2023/24 – 2027/28).

The rate structure for customers designated as MFR includes two tiers. Based on the projected demands by tier and season (from Appendix G, and included in Appendix H), the seasonal peak adjustment ratio for Tier 2, and the supply allocation, the costs associated with serving MFR customers are allocated between the seasons and tiers. These costs are recovered over each CCF of consumption within each season and tier.

WA-4
Appendix H, WA-4 details the final calculation of the winter and summer rates to be charged to any customers designated as Riverside Water Company Irrigators (WA-4) using the projections calculated within the financial model for the number of accounts, water usage, and allocated revenue requirements. Appendix H, WA-4 presents the calculated rates for each of the next five fiscal years (2023/24 – 2027/28).

FINAL | MAY 2023
The rate structure for customers designated as WA-4 includes three tiers. Based on the projected demands by tier and season (from Appendix G, and included in Appendix H), the seasonal peak adjustment ratio for Tier 3, and the supply allocation, the costs associated with serving WA-4 customers are allocated between the seasons and tiers. These costs are recovered over each CCF of consumption within each season and tier.

Variable Rates – No Tier
Appendix H, Variable Rates – No Tier details the final calculation of the winter and summer rates to be charged to any customers designated as Commercial/Industrial, Landscape, Temporary Service (WA-2) and Interruptible Irrigation (WA-7 & WA-10). Appendix H, Variable Rates – No Tier presents the calculated rates for each of the next five fiscal years (2023/24 – 2027/28).

Commercial/Industrial
The rate structure for customers designated as Commercial/Industrial does not include any tier breaks.

However, rates vary between the winter and summer. As a result, the costs associated with serving Landscape customers are allocated over the projected seasonal consumption separately. Once split between the seasons the sum of costs for each season is divided by the corresponding seasonal usage to determine the summer or winter rate for each year within the projection.

Landscape
The rate structure for customers designated as Landscape does not include any tier breaks. However, rates vary between the winter and summer. As a result, the costs associated with serving Landscape customers are allocated over the projected seasonal consumption separately. Once split between the seasons the sum of costs for each season is divided by the corresponding seasonal usage to determine the summer or winter rate for each year within the projection.

Temporary Service (WA-2)
The rate structure for customers designated as WA-2 does not include any tier breaks and rates do not vary between the winter and summer. These customers are charged based on a uniform, non-seasonally adjusted rate. Rates are calculated for each year of the projection by dividing the costs to be recovered by the projected usage.

Interruptible Rates (WA-7 & WA-10)
The rate structure for customers designated as WA-7 and WA-10 does not include any tier breaks and rates do not vary between the winter and summer. These customers are charged based on a uniform, non- seasonally adjusted rate. Rates are calculated for each year of the projection by dividing the costs to be recovered by the projected usage.

RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
UNIFORM FIXED RATES Fixed
FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Number of Accounts 66,694 66,879 67,064 67,250 67,436 67,623 Number of MEUs 95,061 95,337 95,661 95,987 96,290 96,594 Customer Revenue to Recover 2,894,502$ 3,103,816$ 3,328,561$ 3,569,842$ 3,825,746$ Capacity Revenue to Recover 27,123,103$ 29,084,497$ 31,190,483$ 33,451,419$ 35,849,387$ Monthly Component Charge per Account 3.61$ 3.86$ 4.12$ 4.41$ 4.71$ Monthly Component Charge per MEU 23.71$ 25.34$ 27.08$ 28.95$ 30.93$

METER SIZE METER EQUIVALENTS MONTHLY FIXED CHARGES

0.625 1.00 23.08$ 26.00$ 27.31$ 29.19$ 31.20$ 33.36$ 35.64$

0.75 1.00 23.08 26.00 27.31 29.19 31.20 33.36 35.64 1 1.67 36.63 41.26 43.20 46.17 49.35 52.76 56.36

1.5 3.33 70.22 79.08 82.55 88.23 94.30 100.82 107.70 2 5.33 110.68 124.64 129.97 138.90 148.45 158.72 169.56 3 10.00 205.16 231.03 240.69 257.22 274.91 293.91 313.99 4 16.67 340.10 382.97 398.82 426.21 455.53 487.01 520.28 6 36.67 744.72 838.59 872.98 932.94 997.11 1,066.02 1,138.84 8 60.00 1,216.71 1,370.06 1,426.09 1,524.04 1,628.85 1,741.43 1,860.39 10 93.33 1,891.02 2,129.34 2,216.28 2,368.50 2,531.39 2,706.35 2,891.22 12 133.33 2,700.26 3,040.57 3,164.60 3,381.95 3,614.54 3,864.36 4,128.34 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28

METER SIZE METER EQUIVALENTS REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE

0.625 1 1,760,671$ 1,989,403$ 2,094,831$ 2,244,568$ 2,405,054$ 2,577,924$ 2,760,933$

0.75 1 13,048,066 14,746,035 15,528,000 16,638,446 17,828,649 19,110,751 20,468,103 1 1.67 4,226,060 4,793,098 5,034,176 5,396,835 5,786,321 6,205,397 6,649,464

1.5 3.33 1,039,449 1,201,335 1,262,441 1,357,972 1,460,725 1,571,993 1,690,315 2 5.33 2,000,372 2,315,867 2,431,842 2,616,407 2,815,110 3,030,594 3,259,877 31 0 630,918 724,900 755,757 810,555 869,398 931,486 997,272 4 16.67 534,583 613,882 639,689 686,807 737,463 790,500 846,726 6 36.67 634,610 728,395 758,504 814,439 874,560 937,344 1,003,885 86 0 1,036,637 1,189,315 1,237,954 1,329,107 1,427,057 1,529,189 1,637,397 10 93.33 226,922 260,342 270,972 290,923 312,364 334,719 358,404 12 133.33 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Calculated Revenues* 25,138,288 $ 28,562,572$ 30,014,166$ 32,186,060$ 34,516,702$ 37,019,898$ 39,672,377$ *Note: Total calculated revenues vary slightly from the sum of allocated Customer and Capacity revenue requirements due to rounding of rates to the nearest $0.01.

RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (SFR) SFR
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1A ‐ SFR
REVENUE TO RECOVER
Base Revenue to Recover 6,032,249$        6,468,468$        6,936,845$        7,439,683$        7,972,997$ Max Day Revenue to Recover 7,073,092          7,584,579          8,133,772          8,723,373          9,348,709 Max Hour Revenue to Recover 1,709,184          1,832,783          1,965,494          2,107,968          2,259,078 Supply 1 Revenue to Recover 2,642,930          2,834,053          3,039,264          3,259,574          3,493,237 Supply 2 Revenue to Recover 2,611,459          2,800,305          3,003,073          3,220,760          3,451,641 Supply 3 Revenue to Recover 3,452,785          3,702,472          3,970,565          4,258,383          4,563,646 Supply 4 Revenue to Recover 1,023,555          1,097,573          1,177,048          1,262,369          1,352,862 Supply Sustainability Revenue to Recover 752,056              806,440              864,834              927,524              994,014 Total Allocated Costs 25,297,311 $      27,126,674$      29,090,895$      31,199,635$      33,436,184$ REVENUE TO RECOVER ‐ BY TIER
Base Use per Tier
Tier 1 37.0% 2,234,786$        2,396,393$        2,569,914$        2,756,202$        2,953,781$ Tier 2 47.8% 2,883,491          3,092,009          3,315,899          3,556,262          3,811,193 Tier 3 15.2% 913,973              980,066              1,051,032          1,127,219          1,208,024 Max Day Max Day Extra Capacity per Tier
Tier 1 13.9% 981,855$           1,052,857$        1,129,094$        1,210,940$        1,297,746$ Tier 2 54.9% 3,883,984          4,164,852          4,466,426          4,790,188          5,133,573 Tier 3 31.2% 2,207,253          2,366,869          2,538,252          2,722,245          2,917,389 Max Hour Max Hour Extra Capacity per Tier
Tier 1 35.4% 604,810$           648,547$           695,508$           745,924$           799,395$ Tier 2 48.3% 825,728              885,440              949,554              1,018,385          1,091,388 Tier 3 16.3% 278,646              298,796              320,432              343,659              368,294 Supply 1 SFR Supply 1 Allocation by Tier
Tier 1 93.1% 2,461,843$        2,639,870$        2,831,021$        3,036,236$        3,253,888$ Tier 26 . 9 % 181,088              194,183              208,244              223,339              239,349 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 SFR Supply 2 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 2,611,459          2,800,305          3,003,073          3,220,760          3,451,641 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 43.6% 1,504,444          1,613,237          1,730,051          1,855,459          1,988,467 Tier 3 56.4% 1,948,341          2,089,234          2,240,514          2,402,925          2,575,178 Supply 4 SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 1,023,555          1,097,573          1,177,048          1,262,369          1,352,862 Supply Susainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 752,056              806,440              864,834              927,524              994,014 PROJECTED USAGE (HFC)
Annual 13,476,117        13,567,968        13,662,795        13,760,195        13,860,518 Tier 1 4,992,538          5,026,567          5,061,697          5,097,782          5,134,949 Tier 2 6,441,753          6,485,659          6,530,987          6,577,546          6,625,502 RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (SFR) SFR
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Tier 3 2,041,826          2,055,742          2,070,110          2,084,868          2,100,068 Winter
Tier 1 2,848,873          2,868,290          2,888,337          2,908,928          2,930,136 Tier 2 3,039,262          3,059,977          3,081,363          3,103,330          3,125,956 Tier 3 781,054              786,378              791,874              797,519              803,333 Summer
Tier 1 2,143,665          2,158,276          2,173,360          2,188,854          2,204,813 Tier 2 3,402,491          3,425,682          3,449,624          3,474,216          3,499,546 Tier 3 1,260,772          1,269,365          1,278,236          1,287,349          1,296,735 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Resilient Supply 1, 597,828
Tier 1 4,992,538                     4,992,538
Tier 2 6,441,753                     367,240              4,042,171          2,032,342          ‐ Tier 3 2,041,826                     2,631,999          1,007,655 13,476,117                  5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Tier 1 93.1% 0.0% 0.0% 0.0%
Tier 2 6.9% 100.0% 43.6% 0.0%
Tier 3 0.0% 0.0% 56.4% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (SFR) SFR
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Winter
Base Rate
Tier 1 1,275,227$        1,367,445$        1,466,460$        1,572,761$        1,685,505$ Tier 2 1,360,450$        1,458,830$        1,564,463$        1,677,868$        1,798,146$ Tier 3 349,619$           374,902$           402,049$           431,192$           462,102$ Max Day Rate Seasonality Factor
Tier 1 560,272$           600,788$           644,291$           690,994$           740,528$ Tier 2 1,832,490$        1,965,005$        2,107,289$        2,260,043$        2,422,054$ Tier 3 1.00 474,896              509,238              546,112              585,698              627,683 Max Hour Rate Seasonality Factor
Tier 1 345,121$           370,078$           396,875$           425,644$           456,156$ Tier 2 389,584$           417,757$           448,006$           480,481$           514,924$ Tier 3 1.00 59,951                64,287                68,942                73,939                79,239 Supply 1 Rate
Tier 1 1,404,792$        1,506,378$        1,615,454$        1,732,556$        1,856,754$ Tier 2 85,438$              91,617$              98,251$              105,373$           112,926$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,232,104$        1,321,203$        1,416,870$        1,519,576$        1,628,507$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 709,807$           761,136$           816,249$           875,418$           938,172$ Tier 3 745,294$           799,190$           857,058$           919,184$           985,076$ Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 391,538$           419,852$           450,253$           482,891$           517,507$ Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 287,682$           308,486$           330,823$           354,803$           380,237$ Combined Winter Revenue Requirements by Tier
Tier 1 3,585,412$        3,844,689$        4,123,080$        4,421,954$        4,738,942$ Tier 2 5,609,873$        6,015,548$        6,451,128$        6,918,758$        7,414,731$ Tier 3 2,308,980$        2,475,954$        2,655,236$        2,847,708$        3,051,844$ Tier 1 Winter Rate 1.30$                  1.26$                  1.34$                  1.43$                  1.52$                  1.62$ Tier 2 Winter Rate 1.64$                  1.85$                  1.97$                  2.09$                  2.23$                  2.37$ Tier 3 Winter Rate 3.01$                  2.96$                  3.15$                  3.35$                  3.57$                  3.80$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (SFR) SFR
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Summer
Base Rate
Tier 1 959,558$           1,028,949$        1,103,454$        1,183,441$        1,268,276$ Tier 2 1,523,041          1,633,179          1,751,436          1,878,394          2,013,047 Tier 3 564,353              605,164              648,983              696,027              745,922 Max Day Rate Seasonality Factor
Tier 1 421,583$           452,069$           484,803$           519,946$           557,218$ Tier 2 2,051,494          2,199,847          2,359,137          2,530,146          2,711,519 Tier 3 2.26 1,732,357          1,857,631          1,992,141          2,136,547          2,289,706 Max Hour Rate Seasonality Factor
Tier 1 259,690$           278,469$           298,633$           320,280$           343,239$ Tier 2 436,144              467,684              501,548              537,904              576,464 Tier 3 2.26 218,695              234,509              251,490              269,720              289,055 Supply 1 Rate
Tier 1 1,057,051$        1,133,491$        1,215,566$        1,303,680$        1,397,135$ Tier 2 95,649                102,566              109,993              117,966              126,422 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,379,355          1,479,103          1,586,203          1,701,184          1,823,134 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 794,637              852,101              913,801              980,041              1,050,295 Tier 3 1,203,048          1,290,045          1,383,456          1,483,740          1,590,103 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 632,018              677,722              726,794              779,479              835,356 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 464,374              497,955              534,011              572,721              613,777 Combined Summer Revenue Requirements by Tier
Tier 1 2,697,882$        2,892,978$        3,102,456$        3,327,347$        3,565,869$ Tier 2 6,280,321$        6,734,480$        7,222,118$        7,745,635$        8,300,882$ Tier 3 4,814,844$        5,163,027$        5,536,875$        5,938,234$        6,363,918$ Tier 1 Summer Rate 1.30$                  1.26$                  1.34$                  1.43$                  1.52$                  1.62$ Tier 2 Summer Rate 1.64$                  1.85$                  1.97$                  2.09$                  2.23$                  2.37$ Tier 3 Summer Rate 3.66$                  3.82$                  4.07$                  4.33$                  4.61$                  4.91$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (MFR) MFR
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1B ‐ MFR
REVENUE TO RECOVER
Base Revenue to Recover 165,008 $            176,940$            189,752$            203,507$            218,096$ Max Day Revenue to Recover 145,859               156,407              167,732              179,891              192,786 Max Hour Revenue to Recover 45,928                 49,250                52,816                56,644                60,705 Supply 1 Revenue to Recover 82,690                 88,670                95,091                101,984              109,294 Supply 2 Revenue to Recover 81,706                 87,614                93,958                100,769              107,993 Supply 3 Revenue to Recover 63,110                 67,673                72,573                77,834                83,414 Supply 4 Revenue to Recover 18,708                 20,061                21,514                23,073                24,727 Supply Sustainability Revenue to Recover 15,509                 16,630                17,834                19,127                20,498 Total Allocated Costs 618,518 $           663,246$           711,271$           762,830$           817,513$ REVENUE TO RECOVER ‐ BY TIER
Base Use per Tier
Tier 1 49.5% 81,711$              87,619$              93,964$              100,775$            107,999$ Tier 2 50.5% 83,297                89,321                95,789                102,732              110,096 Max Day Max Day Extra Capacity per Tier
Tier 1 23.3% 33,943$              36,398$              39,034$              41,863$              44,864$ Tier 2 76.7% 111,916              120,009              128,699              138,028              147,922 Max Hour Max Hour Extra Capacity per Tier
Tier 1 48.1% 22,080$              23,677$              25,391$              27,231$              29,184$ Tier 2 51.9% 23,848                25,573                27,425                29,413                31,521 Supply 1 SFR Supply 1 Allocation by Tier
Tier 1 100.0% 82,690$              88,670$              95,091$              101,984$            109,294$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 SFR Supply 2 Allocation by Tier
Tier 1 11.7% 9,593$                10,287$              11,032$              11,832$              12,680$ Tier 2 88.3% 72,112                77,327                82,926                88,938                95,313 Supply 3 SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 63,110                67,673                72,573                77,834                83,414 Supply 4 SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 18,708                20,061                21,514                23,073                24,727 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 15,509                16,630                17,834                19,127                20,498 RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (MFR) MFR
PROJECTED USAGE (HFC)
Annual 368,630              371,142              373,736              376,400              379,145 Tier 1 182,542              183,787              185,071              186,390              187,749 Tier 2 186,087              187,355              188,665              190,010              191,395 Winter
Tier 1 104,853              105,567              106,305              107,063              107,844 Tier 2 90,208                90,823                91,458                92,110                92,781 Summer
Tier 1 77,690                78,219                78,766                79,327                79,906 Tier 2 95,879                96,532                97,207                97,900                98,614 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 167,693              126,469              85,254                18,418                397,834 Resilient Supply 29,205
Tier 1 182,542                        167,693              14,849 Tier 2 186,087                        ‐                            111,620              85,254                18,418 368,630                        167,693              126,469              85,254                18,418                397,834 Tier 1 100.0% 11.7% 0.0% 0.0%
Tier 2 0.0% 88.3% 100.0% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (MFR) MFR
Winter
Base Rate
Tier 1 46,935$              50,329$              53,973$              57,885$              62,035$ Tier 2 40,379                43,299                46,435                49,801                53,370 Max Day Rate Seasonality Factor
Tier 1 19,497$              20,907$              22,421$              24,046$              25,770$ Tier 2 1.00 43,352                46,487                49,853                53,467                57,300 Max Hour Rate Seasonality Factor
Tier 1 12,683$              13,600$              14,585$              15,642$              16,763$ Tier 2 1.00 9,238                  9,906                  10,623                11,393                12,210 Supply 1 Rate
Tier 1 47,498$              50,932$              54,620$              58,580$              62,779$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 5,510$                5,909$                6,337$                6,796$                7,283$ Tier 2 34,957                37,485                40,200                43,114                46,204 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 30,593                32,806                35,181                37,731                40,436 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 9,069                  9,725                  10,429                11,185                11,987 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,518                  8,062                  8,645                  9,272                  9,937 Winter Revenue Requirement By Tier
Tier 1 132,123$            141,676$            151,935$            162,949$            174,631$ Tier 2 175,107$            187,770$            201,367$            215,964$            231,444$ Tier 1 Winter Rate 1.30$                  1.26$                  1.34$                  1.43$                  1.52$                  1.62$ Tier 2 Winter Rate 1.87$                  1.94$                  2.07$                  2.20$                  2.34$                  2.49$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (MFR) MFR
Summer
Base Rate
Tier 1 34,776$              37,291$              39,991$              42,889$              45,964$ Tier 2 42,918                46,021                49,354                52,931                56,726 Max Day Rate Seasonality Factor
Tier 1 14,446$              15,491$              16,613$              17,817$              19,094$ Tier 2 1.49 68,564                73,522                78,845                84,561                90,623 Max Hour Rate Seasonality Factor
Tier 1 9,397$                10,077$              10,806$              11,590$              12,420$ Tier 2 1.49 14,610                15,667                16,801                18,019                19,311 Supply 1 Rate
Tier 1 35,193$              37,738$              40,470$              43,404$              46,516$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 4,083$                4,378$                4,695$                5,035$                5,396$ Tier 2 37,155                39,842                42,727                45,824                49,109 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 32,516                34,868                37,392                40,103                42,978 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 9,639                  10,336                11,085                11,888                12,741 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,991                  8,568                  9,189                  9,855                  10,561 Summer Revenue Requirement By Tier
Tier 1 97,895$              104,974$            112,575$            120,735$            129,391$ Tier 2 213,393$            228,824$            245,393$            263,182$            282,048$ Tier 1 Summer Rate 1.30$                  1.26$                  1.34$                  1.43$                  1.52$                  1.62$ Tier 2 Summer Rate 2.12$                  2.23$                  2.37$                  2.52$                  2.69$                  2.86$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (WA4) WA4: Riverside Water Company FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA4 ‐ Riverside Irrigators
REVENUE TO RECOVER
Base Revenue to Recover 3,966$                4,253$                4,561$                4,892$                5,243$ Max Day Revenue to Recover 6,633                  7,112                  7,627                  8,180                  8,767 Max Hour Revenue to Recover 1,158                  1,242                  1,332                  1,428                  1,531 Supply 1 Revenue to Recover 1,444                  1,549                  1,661                  1,781                  1,909 Supply 2 Revenue to Recover 1,427                  1,530                  1,641                  1,760                  1,886 Supply 3 Revenue to Recover 3,261                  3,497                  3,750                  4,022                  4,310 Supply 4 Revenue to Recover 967                      1,037                  1,112                  1,192                  1,278 Supply Sustainability Revenue To Recover 705                      756                      811                      870                      932 Total Allocated Costs 19,562 $              20,976$              22,495$              24,126$              25,855$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 37.1% 1,472$                1,578$                1,692$                1,815$                1,945$ Tier 2 51.5% 2,041                  2,188                  2,347                  2,517                  2,697 Tier 3 11.4% 454                      487                      522                      560                      600 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 16.1% 1,069$                1,147$                1,230$                1,319$                1,413$ Tier 2 60.5% 4,015                  4,306                  4,617                  4,952                  5,307 Tier 3 23.3% 1,548                  1,660                  1,780                  1,909                  2,046 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 35.0% 405$                   434$                   466$                   500$                   536$ Tier 2 52.4% 607                      650                      698                      748                      802 Tier 3 12.6% 146                      157                      168                      181                      194 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 100.0% 1,444$                1,549$                1,661$                1,781$                1,909$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 1 18.4% 262$                   281$                   301$                   323$                   346$ Tier 2 81.6% 1,165                  1,249                  1,340                  1,437                  1,540 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 64.0% 2,087                  2,238                  2,400                  2,574                  2,759 Tier 3 36.0% 1,174                  1,259                  1,350                  1,448                  1,551 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 967                      1,037                  1,112                  1,192                  1,278 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 705                      756                      811                      870                      932 RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (WA4) WA4: Riverside Water Company PROJECTED USAGE (HFC)
Annual 8,986                  8,986                  8,986                  8,986                  8,986 Tier 1 3,334                  3,334                  3,334                  3,334                  3,334 Tier 2 4,623                  4,623                  4,623                  4,623                  4,623 Tier 3 1,028                  1,028                  1,028                  1,028                  1,028 Winter
Tier 1 1,801                  1,801                  1,801                  1,801                  1,801 Tier 2 1,863                  1,863                  1,863                  1,863                  1,863 Tier 3 392                      392                      392                      392                      392 Summer
Tier 1 1,533                  1,533                  1,533                  1,533                  1,533 Tier 2 2,760                  2,760                  2,760                  2,760                  2,760 Tier 3 636                      636                      636                      636                      636 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 2,929                             2,209                             4,406                             952                                 10,495 Resilient Supply 1,509
Tier 1 3,334                                            2,929                             405 Tier 2 4,623                                            1,803                             2,820                             ‐ Tier 3 1,028                                            1,586                             952 8,986                                           2,929                             2,209                             4,406                             952                                 10,495 Tier 1 100.0% 18.4% 0.0% 0.0%
Tier 2 0.0% 81.6% 64.0% 0.0%
Tier 3 0.0% 0.0% 36.0% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (WA4) WA4: Riverside Water Company Winter
Base Rate
Tier 1 795$                   852$                   914$                   980$                   1,051$ Tier 2 822                      882                      946                      1,014                  1,087 Tier 3 173                      186                      199                      213                      229 Max Day Rate Seasonality Factor
Tier 1 578$                   619$                   664$                   712$                   763$ Tier 2 1,618                  1,735                  1,861                  1,996                  2,139 Tier 3 1.00 330                      354                      380                      407                      437 Max Hour Rate Seasonality Factor
Tier 1 219$                   235$                   252$                   270$                   289$ Tier 2 244                      262                      281                      301                      323 Tier 3 1.00 31                        34                        36                        39                        41 Supply 1 Rate
Tier 1 780$                   836$                   897$                   962$                   1,031$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 141$                   152$                   163$                   175$                   187$ Tier 2 469                      503                      540                      579                      621 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 841                      902                      967                      1,037                  1,112 Tier 3 447                      480                      515                      552                      591 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 369                      395                      424                      455                      487 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 269                      288                      309                      332                      355 Winter Revenue Requirement By Tier
Tier 1 2,513$                2,695$                2,890$                3,099$                3,322$ Tier 2 3,995$                4,284$                4,595$                4,928$                5,281$ Tier 3 1,620$                1,737$                1,862$                1,997$                2,141$ Tier 1 Winter Rate 1.32$                  1.40$                  1.50$                  1.60$                  1.72$                  1.84$ Tier 2 Winter Rate 1.54$                  2.14$                  2.30$                  2.47$                  2.65$                  2.83$ Tier 3 Winter Rate 2.46$                  4.13$                  4.43$                  4.75$                  5.10$                  5.46$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐  TIER (WA4) WA4: Riverside Water Company Summer
Base Rate
Tier 1 677$                   726$                   778$                   835$                   894$ Tier 2 1,218                  1,306                  1,401                  1,503                  1,610 Tier 3 281                      301                      323                      346                      371 Max Day Rate Seasonality Factor
Tier 1 492$                   527$                   565$                   606$                   650$ Tier 2 2,397                  2,570                  2,757                  2,956                  3,168 Tier 3 2.27 1,218                  1,306                  1,400                  1,502                  1,609 Max Hour Rate Seasonality Factor
Tier 1 186$                   200$                   214$                   230$                   246$ Tier 2 362                      388                      416                      447                      479 Tier 3 2.27 115                      124                      132                      142                      152 Supply 1 Rate
Tier 1 664$                   712$                   764$                   819$                   878$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 120$                   129$                   138$                   149$                   159$ Tier 2 696                      746                      800                      858                      919 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,246                  1,336                  1,433                  1,537                  1,647 Tier 3 726                      779                      835                      895                      960 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 598                      641                      688                      737                      790 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 436                      468                      502                      538                      577 Summer Revenue Requirement By Tier
Tier 1 2,139$                2,294$                2,460$                2,638$                2,827$ Tier 2 5,919$                6,347$                6,807$                7,300$                7,824$ Tier 3 3,374$                3,618$                3,880$                4,161$                4,459$ Tier 1 Summer Rate $1.32 1.40$                  1.50$                  1.60$                  1.72$                  1.84$ Tier 2 Summer Rate $1.58 2.14$                  2.30$                  2.47$                  2.65$                  2.83$ Tier 3 Summer Rate $3.17 5.30$                  5.69$                  6.10$                  6.54$                  7.01$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA6 ‐ Commercial/Industrial
REVENUE TO RECOVER
Base Revenue to Recover 3,343,532$       3,585,318$       3,844,928$       4,123,639$       4,419,242$ Max Day Revenue to Recover 3,267,511          3,503,800          3,757,507          4,029,881          4,318,764 Max Hour Revenue to Recover 936,044             1,003,734          1,076,414          1,154,441          1,237,197 Supply 1 Revenue to Recover 1,071,530          1,149,017          1,232,216          1,321,537          1,416,272 Supply 2 Revenue to Recover 1,058,770          1,135,335          1,217,543          1,305,801          1,399,407 Supply 3 Revenue to Recover 3,005,072          3,222,382          3,455,713          3,706,210          3,971,890 Supply 4 Revenue to Recover 890,834             955,254             1,024,423          1,098,681          1,177,440 Supply Sustainability Revenue to Recover 347,422             372,546             399,522             428,483             459,198 Total Allocated Costs 13,920,716 $     14,927,386$     16,008,266$     17,168,673$     18,399,411$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 7,357,736          7,464,359          7,572,724          7,682,792          7,794,744 Projected Winter Usage (HCF) 3,814,280          3,869,554          3,925,731          3,982,790          4,040,827 Projected Summer Usage (HCF) 3,543,456          3,594,805          3,646,993          3,700,002          3,753,917 Winter Seasonality Factor
Base Revenue to Recover 1,733,300.26$ 1,858,643.29$ 1,993,226.27$ 2,137,710.94$ 2,290,953.28$ Max Day Revenue to Recover 1.00 1,479,683.19    1,586,686.01    1,701,576.77    1,824,920.37    1,955,740.28 Max Hour Revenue to Recover 1.00 423,885.07       454,538.18       487,450.96       522,785.22       560,261.22 Supply 1 Revenue to Recover 555,485.25       595,654.98       638,785.92       685,090.13       734,200.98 Supply 2 Revenue to Recover 548,870.68       588,562.08       631,179.42       676,932.26       725,458.31 Supply 3 Revenue to Recover 1,557,841.41    1,670,496.18    1,791,455.58    1,921,314.33    2,059,044.22 Supply 4 Revenue to Recover 461,811.70       495,207.46       531,065.07       569,560.83       610,389.94 Supply Sustainability Revenue to Recover 180,105.21       193,129.46       207,113.82       222,127.05       238,050.29 Winter Rate 1.58$                 1.82$                 1.92$                 2.03$                 2.15$                 2.27$ Summer Seasonality Factor
Base Revenue to Recover 1,610,231.56$ 1,726,674.45$ 1,851,701.54$ 1,985,927.92$ 2,128,289.02$ Max Day Revenue to Recover 1.30 1,787,828.19    1,917,113.90    2,055,930.57    2,204,961.09    2,363,023.61 Max Hour Revenue to Recover 1.30 512,159.41       549,195.91       588,962.74       631,655.54       676,935.73 Supply 1 Revenue to Recover 516,044.39       553,361.82       593,430.30       636,446.95       682,070.61 Supply 2 Revenue to Recover 509,899.47       546,772.53       586,363.89       628,868.31       673,948.69 Supply 3 Revenue to Recover 1,447,230.73    1,551,886.31    1,664,257.14    1,784,896.03    1,912,846.17 Supply 4 Revenue to Recover 429,021.90       460,046.35       493,357.94       529,120.53       567,050.50 Supply Sustainability Revenue to Recover 167,317.28       179,416.73       192,408.15       206,355.46       221,148.03 Summer Rate 1.84$                 1.97$                 2.08$                 2.20$                 2.33$                 2.46$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA11 ‐ Landscape
REVENUE TO RECOVER
Base Revenue to Recover 344,960$           369,906$           396,691$           425,446$           455,944$ Max Day Revenue to Recover 557,849             598,189             641,504             688,005             737,325 Max Hour Revenue to Recover 100,399             107,660             115,455             123,824             132,701 Supply 1 Revenue to Recover 94,872               101,733             109,099             117,007             125,395 Supply 2 Revenue to Recover 93,742               100,521             107,800             115,614             123,902 Supply 3 Revenue to Recover 357,314             383,153             410,897             440,682             472,272 Supply 4 Revenue to Recover 105,923             113,583             121,808             130,637             140,002 Supply Sustainability Revenue to Recover 59,314               63,603               68,209               73,153               78,397 Total Allocated Costs 1,714,374 $       1,838,348$       1,971,462$       2,114,369$       2,265,938$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 759,116             770,116             781,296             792,652             804,203 Projected Winter Usage (HCF) 337,300             333,632             338,476             343,395             348,399 Projected Summer Usage (HCF) 421,816             436,484             442,820             449,257             455,804 Winter Seasonality Factor
Base Revenue to Recover 153,277.20$     160,251.77$     171,855.70$     184,312.82$     197,525.37$ Max Day Revenue to Recover 1.00 174,902.76       181,791.37       194,955.06       209,086.46       224,074.94 Max Hour Revenue to Recover 1.00 31,478.28          32,718.06          35,087.21          37,630.52          40,328.09 Supply 1 Revenue to Recover 42,154.75          44,072.92          47,264.26          50,690.26          54,324.01 Supply 2 Revenue to Recover 41,652.78          43,548.11          46,701.45          50,086.65          53,677.14 Supply 3 Revenue to Recover 158,766.39       165,990.73       178,010.22       190,913.46       204,599.17 Supply 4 Revenue to Recover 47,065.24          49,206.85          52,769.94          56,595.02          60,652.06 Supply Sustainability Revenue to Recover 26,355.17          27,554.41          29,549.64          31,691.57          33,963.40 Winter Rate 1.67$                 2.00$                 2.11$                 2.23$                 2.36$                 2.49$ Summer Seasonality Factor
Base Revenue to Recover 191,683.10$     209,654.17$     224,834.84$     241,133.02$     258,418.60$ Max Day Revenue to Recover 1.75 382,946.10       416,398.06       446,548.80       478,918.72       513,249.96 Max Hour Revenue to Recover 1.75 68,921.06          74,941.61          80,368.02          86,193.82          92,372.62 Supply 1 Revenue to Recover 52,717.25          57,659.71          61,834.75          66,317.12          71,071.05 Supply 2 Revenue to Recover 52,089.51          56,973.12          61,098.43          65,527.43          70,224.75 Supply 3 Revenue to Recover 198,547.68       217,162.34       232,886.66       249,768.52       267,673.13 Supply 4 Revenue to Recover 58,858.14          64,376.33          69,037.70          74,042.21          79,349.91 Supply Sustainability Revenue to Recover 32,958.85          36,048.88          38,659.11          41,461.49          44,433.65 Summer Rate 2.14$                 2.46$                 2.60$                 2.74$                 2.90$                 3.06$ RIVERSIDE PUBLIC UTILITIES Appendix H
2023 RPU Water Rate Model Rate Calculations
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA2 ‐ Flat Rate
REVENUE TO RECOVER
Base Revenue to Recover 19,596$             21,014$             22,535$             24,169$             25,901$ Max Day Revenue to Recover 61,416               65,857               70,626               75,745               81,175 Max Hour Revenue to Recover 6,219                  6,668                  7,151                  7,670                  8,219 Supply 1 Revenue to Recover 3,797                  4,072                  4,366                  4,683                  5,019 Supply 2 Revenue to Recover 3,752                  4,023                  4,314                  4,627                  4,959 Supply 3 Revenue to Recover 26,176               28,068               30,101               32,283               34,597 Supply 4 Revenue to Recover 7,760                  8,321                  8,923                  9,570                  10,256 Supply Sustainability Revenue to Recover 6,530                  7,002                  7,509                  8,054                  8,631 Total Allocated Costs 135,245 $           145,025$           155,526$           166,800$           178,757$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 44,394               44,394               44,394               44,394               44,394 Projected Winter Usage (HCF) 17,942               17,942               17,942               17,942               17,942 Projected Summer Usage (HCF) 26,452               26,452               26,452               26,452               26,452 Non‐Seasonal Rate 2.39$                 3.05$                 3.27$                 3.50$                 3.76$                 4.03$ FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA7 & 10 ‐ Interruptable
REVENUE TO RECOVER
Base Revenue to Recover 366,540$           393,046$           421,507$           452,061$           484,467$ Max Day Revenue to Recover 334,531             358,722             384,697             412,583             442,159 Max Hour Revenue to Recover 109,381             117,291             125,784             134,901             144,572 Supply 1 Revenue to Recover 92,762               99,470               106,673             114,405             122,606 Supply 2 Revenue to Recover 91,657               98,286               105,402             113,043             121,146 Supply 3 Revenue to Recover 353,391             378,946             406,385             435,843             467,087 Supply 4 Revenue to Recover ‐                          ‐                           ‐                           ‐                           ‐ Supply Sustainability Revenue to Recover ‐                          ‐                           ‐                           ‐                           ‐ Total Allocated Costs 1,348,262 $       1,445,761$       1,550,447$       1,662,836$       1,782,037$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 807,384             818,102             829,979             842,043             854,313 Projected Winter Usage (HCF) 329,261             333,632             338,476             343,395             348,399 Projected Summer Usage (HCF) 478,123             484,470             491,503             498,648             505,914 Non‐Seasonal Rate 1.57$                 1.67$                 1.77$                 1.87$                 1.97$                 2.09$

FINAL | MAY 2023
Appendix I

OUTSIDE CITY SURCHARGE CALCULATION
Appendix I, Outside City Surcharge Calculation, presents a summary of all costs associated with providing service to customers with accounts outside of the City's standard service area boundaries and the calculation of the required surcharge to recover those costs. The costs summarized within the appendix include pipeline capital costs, other facility capital costs, water distribution costs, and energy costs.

The surcharge is calculated the overall percent increase in rates to be charged to customers residing outside of the City's standard service area boundaries. The calculation is based on the five-year sum of revenues without the surcharge and outside city costs to provide a surcharge that is stable of each year of the cost of service study period.

Appendix I
Outside City Surcharge Calculation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
OUTSIDE CITY COSTS
Active Interconnections
Praed 1400
Zone
University
City 1600
Zone
Homegarden
s 925 Zone
Highgrove
Zones
University
City 1650
Zone
Van Buren
1200 Zone
Victoria 1100
Zone
Heustis 1400
Zone Total
Number of Services 333 115 1,601 949 73 238 740 727 4,776 Estimated Flows to Customers (gpm)1
394 110 1020 444 10 83 536 5 2,601
Pipeline Associated Capital Costs2
$13,289,826 $2,923,399 $33,423,551 $22,402,394 $1,431,786 $7,694,388 $16,394,627 $12,203 $97,572,175 Inside City Transmission $1,674,463 $410,834 $4,353,850 $696,231 $36,043 $232,957 $916,280 $11,185 $8,331,842 Outside City Distribution $11,615,364 $2,512,565 $29,069,701 $21,706,162 $1,395,743 $7,461,431 $15,478,348 $1,018 $89,240,332 Facility Associated Capital Costs2
$5,448,628 $2,593,501 $13,431 $2,796,990 $333,741 $683,932 $209,004 $1,843 $12,081,070 Inside City Pump/PRV & Resevoir Capital Cost $3,252,777 $2,385,530 $13,431 $2,173,076 $125,770 $683,932 $209,004 $1,843 $8,845,363 Outside City Pump/PRV Capital Cost $2,195,851 $207,971 $0 $623,913 $207,971 $0 $0 $0 $3,235,707 Total Capital Cost $18,738,454 $5,516,901 $33,436,982 $25,199,383 $1,765,527 $8,378,320 $16,603,631 $14,047 $109,653,245 Total Capital Cost for Outside City Customers
Notes:

1. Delivered flows to Customers obtained from 2013 Draft IWMP and Hydraulic Water Model O&M Costs (from RPU's FY 20-21 Financial Statement)
Operations $32,037,000
Maintenance $6,301,000
Production (AF)
72,215
Production (CCF) 31,456,773
O&M/AF $530.89
O&M/CCF $1.22

2. Capital cost of water facilities is charged to Customer based on proportion of Customer flow rates. Unit costs obtained fro m 2013 IWMP construction costs with 50% Markup for Engineering, Contract Administration, & Contingency.
$109,653,245
Appendix I
Outside City Surcharge Calculation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
OUTSIDE CITY COSTS

Amortized Capital Costs Total Applicable to
Surcharge Notes:

Applicable
Capital
Costs
Annual Cost
Calculation
Number of Services 4,776
Estimated Flows to Customers (gpm)1
2601
Amortization Annualized Cost
Pipeline Associated Capital Costs2
$97,572,175
Inside City Transmission $8,331,842 0% Included in Base Rates $0 (Years) (2022 Dollars) Outside City Distribution $89,240,332 100% All for Outside City $89,240,332 Total Pipeline Costs $89,240,332

50.00 $1,784,807
Facility Associated Capital Costs2
$12,081,070
Inside City Pump/PRV & Resevoir Capital Cost $8,845,363 0% Included in Base Rates $0 Outside City Pump/PRV Capital Cost $3,235,707 100% All for Outside City $3,235,707 Total Facilities Costs $3,235,707

30.00 $107,857
Total Capital Cost $109,653,245
Total Annualized Capital Costs $1,892,664
FY Ending
Capital
Escalation
Annual
Capital Cost
2022 $1,892,664
2023 2.85% $1,946,604
2024 2.85% $2,002,083
2025 2.85% $2,059,142
2026 2.85% $2,117,828
2027 2.85% $2,178,186
2028 2.85% $2,240,264
2029 2.85% $2,304,111
2030 2.85% $2,369,779
2031 2.85% $2,437,317
2032 2.85% $2,506,781
2033 2.85% $2,578,224
Appendix I
Outside City Surcharge Calculation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
OUTSIDE CITY COSTS
Estimated Energy Costs
Energy
Reqired
(kWh)
Praed 1400 Zone 408,286
University City 1600 Zone 164,869
Homegardens 925 Zone -
Highgrove Zones 226,504
University City 1650 Zone 15,600
Van Buren 1200 Zone 44,399
Victoria 1100 Zone 148,896
Heustis 1400 Zone -
Total 1,008,553
RPU Total Water Sales 1,000 CCF Adjustment
From 2013
Power Cost
Escal
Cost per
kWh
2013 Total Sales 27,977 (Production Costs)
FY 22/23 23,415 -16% 2.80% 0.0802$
FY 23/24 23,415 -16% 2.80% 0.0825 $
FY 24/25 23,636 -16% 2.80% 0.0848 $
FY 25/26 23,862 -15% 2.80% 0.0872 $
FY 26/27 24,094 -14% 2.80% 0.0896 $
FY 27/28 24,330 -13% 2.80% 0.0921 $
FY 28/29 24,569 -12% 2.80% 0.0947 $
FY 29/30 24,808 -11% 2.80% 0.0973 $
FY 30/31 25,050 -10% 2.80% 0.1001 $
FY 31/32 25,296 -10% 2.80% 0.1029 $
894,305 $87,045
903,049 $90,357
911,910 $93,798
868,556 $77,817
877,074 $80,781
885,689 $83,858
844,092 $69,613
852,067 $72,238
860,227 $74,972
2601
Adjusted Energy Required
(kWh) Calcualted Energy Cost
1,008,553
844,092 $67,717
1020
444
10 83
536
5 Estimated Flows to
Customers (gpm)1
394
110
Appendix I
Outside City Surcharge Calculation
RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
OUTSIDE CITY SURCHARGE CALCULATION
Projected Outside City Costs Summary
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Capital Costs $2,002,083 $2, 059,142 $2,117,828 $2, 178,186 $2,240,264 Energy Costs $69,613 $72,238 $74,972 $77,817 $80,781
Total Outside City Costs $2, 071,695 $2,131,380 $2,192, 799 $2,256,003 $2,321,044 Surcharge Calculation Detailed Calculations Below
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Variable Revenue Without Surcharge 2,069,251 $ 2,284,698 $ 2,462,428 $ 2,638,968 $ 2,888,601 $ Annual Fixed Revenue Without Surcharge 1,610,451 1,761,582 1,925,966 2,105,292 2,298,329 Total Revenue Without Surcharge 3,679,702 $ 4,046,280 $ 4,388,394 $ 4,744,260 $ 5,186,930 $ Surcharge Costs to Collect $2, 071,695 $2,131,380 $2,192, 799 $2,256,003 $2,321,044 Required Percentage Surcharge 56% 53% 50% 48% 45%
Five Year Combined Surchage Calculation
Total Revenue Without Surcharge FY 2023/24 through FY 2027/28 22,045,566 $ Surchage Costs to Collect FY 2023/24 through FY 2027/28 10,972,922 $ Required Percentage Surcharge 50%
Outside City Usage
Outside City Percent of Consumption
Month FY 2019/20 and
2020/21 Avg
Landscape 8.7%
MFR 1.2%
SFR 6.7%
WA-4 4.0%
WA-6.1 and WA-6.2 2.0%
WA-12 2.4%
Source: Customer Data Analysis Su mmary.xlsx, 2015-2021 Billing Details tab 125
Appendix I
Outside City Surcharge Calculation
Projected Usage - Usage From Rate Design X Outside City Percent of Consumption Landscape Projected Usage - Usag e From Rate Design X Outside City Percent of Consumption FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 29,480 29,159 29,583 30,013 30,450 Winter Tier 2 - - - - - Winter Tier 3 - - - - - Winter Tier 4 - - - - - Summer Tier 1 36,867 38,149 38,702 39,265 39,837 Summer Tier 2 - - - - - Summer Tier 3 - - - - - Summer Tier 4 - - - - - MFR Projected Usage - Usage Fr om Rate Design X Outside City Percent of Consumption FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 1,299 1,308 1,317 1,327 1,336 Winter Tier 2 1,118 1,125 1,133 1,141 1,150 Winter Tier 3
Winter Tier 4
Summer Tier 1 963 969 976 983 990 Summer Tier 2 1,188 1,196 1,204 1,213 1,222 Summer Tier 3
Summer Tier 4
SFR Projected Usage - Usage Fr om Rate Design X Outside City Percent of Consumption FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 189,763 191,057 192,392 193,764 195,176 Winter Tier 2 202,445 203,825 205,250 206,713 208,220 Winter Tier 3 52,026 52,381 52,747 53,123 53,510
Winter Tier 4 - - - - - Summer Tier 1 142,790 143,763 144,768 145,800 146,863 Summer Tier 2 226,640 228,185 229,779 231,418 233,105 Summer Tier 3 83,980 84,552 85,143 85,750 86,376 Summer Tier 4 - - - - - 126
Appendix I
Outside City Surcharge Calculation
WA-4 Projected Usage - Usage From Rate Desi gn X Outside City Percent of Consumption FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 1,801 1,801 1,801 1,801 1,801 Winter Tier 2 1,863 1,863 1,863 1,863 1,863 Winter Tier 3 392 392 392 392 392 Winter Tier 4
Summer Tier 1 1,533 1,533 1,533 1,533 1,533 Summer Tier 2 2,760 2,760 2,760 2,760 2,760 Summer Tier 3 636 636 636 636 636 Summer Tier 4
WA-6.1 and WA-6.2 Projected Usage - Usage From Ra te Design X Outside City Percent of Consumption FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 74,645 110,006 110,323 110,621 110,882 Winter Tier 2
Winter Tier 3
Winter Tier 4
Summer Tier 1 69,345 70,350 71,372 72,409 73,464 Summer Tier 2
Summer Tier 3
Summer Tier 4
WA 12
Winter Tier 1 2,602 2,606 6,791 6,435 15,191 Winter Tier 2 2,776 2,806 8,280 7,983 19,428 Winter Tier 3 713 732 2,495 2,431 6,092 Winter Tier 4
Summer Tier 1 1,958 6,122 1,543 6,066 6,070 Summer Tier 2 3,108 8,341 2,199 7,723 7,483 Summer Tier 3 1,151 2,775 740 2,409 2,277 Summer Tier 4
127
Appendix I
Outside City Surcharge Calculation
Revenue Under Proposed Rates
Landscape Revenue Under Proposed Rates
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 $58,960 $61,526 $65,970 $70,830 $75,821
Winter Tier 2
Winter Tier 3
Winter Tier 4
Summer Tier 1 $90,692 $99,187 $106,045 $113,869 $121,902 Summer Tier 2
Summer Tier 3
Summer Tier 4
MFR Revenue Under Proposed Rates
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 $1,637 $1,753 $1,883 $2,016 $2,165
Winter Tier 2 $2,168 $2,329 $2,493 $2,671 $2,862
Winter Tier 3
Winter Tier 4
Summer Tier 1 $1,213 $1,299 $1,396 $1,494 $1,604
Summer Tier 2 $2,649 $2,835 $3,035 $3,263 $3,494
Summer Tier 3
Summer Tier 4
SFR Revenue Under Proposed Rates
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 $239,102 $256,016 $275,121 $294,521 $316,186 Winter Tier 2 $374,524 $401,535 $428,972 $460,970 $493,481 Winter Tier 3 $153,997 $164,999 $176,702 $189,648 $203,338 Winter Tier 4
Summer Tier 1 $179,915 $192,642 $207,018 $221,615 $237,917 Summer Tier 2 $419,284 $449,524 $480,239 $516,061 $552,458 Summer Tier 3 $320,804 $344,128 $368,670 $395,309 $424,104 Summer Tier 4
128
Appendix I
Outside City Surcharge CalculationWA-4 Revenue Under Proposed Rates FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 $2,521 $2,702 $2,882 $3,098 $3,314
Winter Tier 2 $3,987 $4,285 $4,602 $4,937 $5,272
Winter Tier 3 $1,619 $1,737 $1,862 $1,999 $2,140
Winter Tier 4
Summer Tier 1 $2,146 $2,300 $2,453 $2,637 $2,821
Summer Tier 2 $5,906 $6,348 $6,817 $7,314 $7,811
Summer Tier 3 $3,371 $3,619 $3,880 $4,159 $4,458
Summer Tier 4
WA-6.1 and WA-6.2 Revenue Under Proposed Rates
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Winter Tier 1 $135,855 $211,211 $223,955 $237,836 $251,703 Winter Tier 2
Winter Tier 3
Winter Tier 4
Summer Tier 1 $136,611 $146,329 $157,018 $168,713 $180,722 Summer Tier 2
Summer Tier 3
Summer Tier 4
WA-12 Revenue Under Proposed Rates
Winter Tier 1 $3,643 $3,909 $10,866 $11,068 $27,952
Winter Tier 2 $5,940 $6,454 $20,451 $21,155 $54,982
Winter Tier 3 $2,946 $3,242 $11,854 $12,397 $33,261
Winter Tier 4
Summer Tier 1 $1,398 $4,081 $964 $3,527 $3,299
Summer Tier 2 $1,452 $3,627 $890 $2,914 $2,644
Summer Tier 3 $217 $488 $121 $368 $325
Summer Tier 4
Variable Revenue Under Proposed Rates - Without Surcharge FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Landscape 66,347 $ 67,308 $ 68,285 $ 69,278 $ 70,287 $ MFR 7,667 8,215 8,807 9,444 10,125 SFR 1,687,625 1,808,845 1,936,721 2,078,124 2,227,484 WA-4 19,551 20,989 22,495 24,144 25,816 WA-6.1 and WA-6.2 272,465 357,540 380,973 406,549 432,425 WA-12 15,597 21,800 45,147 51,430 122,463 Total Variable Revenue Without Surcharge 2,069,251 $ 2,284,698 $ 2,462,428 $ 2,638,968 $ 2,888,601 $ 129
Appendix I
Outside City Surcharge Calculation
Fixed Revenue Under Proposed Rates - Without Surcharge
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Outside City Accounts
Meter Size Projected Outside City Accounts
5/8" 240 243 246 249 252 255 3/4" 2,870 2,880 2,890 2,900 2,910 2,920 1" 711 716 721 726 731 736

1.5" 83 86 89 92 95 98 2" 31 33 35 37 39 41 3" 2 3 4 5 6 7 4" 3 4 5 6 7 8 6" - - - - - - 8" 2 3 4 5 6 7 10" - - - - - - Total 3,968 3,994 4,020 4,046 4,072 Proposed Rates
Meter Size
5/8" 27.31$ 29.19 $ 31.20 $ 33.36 $ 35.64 $ 3/4" 27.31 29.19 31.20 33.36 35.64 1" 43.20 46.17 49.35 52.76 56.36

1.5" 82.55 88.23 94.30 100.82 107.70 2" 129.97 138.90 148.45 158.72 169.56 3" 240.69 257.22 274.91 293.91 313.99 4" 398.82 426.21 455.53 487.01 520.28 6" 872.98 932.94 997.11 1,066.02 1,138.84 8" 1,426.09 1,524.04 1,628.85 1,741.43 1,860.39 10" 2,216.28 2,368.50 2,531.39 2,706.35 2,891.22 Total Annual Fixed Revenue Without Surcharge 1,610,451 $ 1,761,582 $ 1,925,966 $ 2,105,292 $ 2,298,329 $ 130
Appendix I
Outside City Surcharge Calculation
Surcharge Calculation
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Variable Revenue Without Surcharge 2,069,251 $ 2,284,698 $ 2,462,428 $ 2,638,968 $ 2,888,601 $ Annual Fixed Revenue Without Surcharge 1,610,451 1,761,582 1,925,966 2,105,292 2,298,329 Sustainability Charge - Fixed - - - - - Sustainability Charge - Variable - - - - - Total Revenue Without Surcharge 3,679,702 $ 4,046,280 $ 4,388,394 $ 4,744,260 $ 5,186,930 $ Surcharge Costs to Collect $2, 071,695 $2,131,380 $2,192, 799 $2,256,003 $2,321,044 Required Percentage Surcharge 56% 53% 50% 48% 45%
Five Year Combined Surchage Calculation $2,069,251 $2,284,698 $2,462,428 $2,638, 968 $2,888,601 Total Revenue Without Surcharge FY 2023/24 through FY 2027/28 22,045,566 $ Surchage Costs to Collect FY 2023/24 through FY 2027/28 $10,972,922 Required Percentage Surcharge 50%
131

FINAL | MAY 2023
Appendix J

DEMAND REDUCTION RATES
Appendix J, Demand Reduction Rates, details the calculations used to determine the demand reduction rates for each level of demand reduction (15%, 20% and 30%). The calculations follow the same steps as those shown for each rate class in Appendix H, but the projected revenue requirements and demands are adjusted to reflect each level of overall demand reduction.

RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
DEMAND REDUCTION RATE CALCULATIONS FOR 15% REDUCTION
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
UNIFORM FIXED RATES DEMAND REDUCTION RATES FOR 15% REDUCTION Fixed FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Number of Accounts 66,694 66,879 67,064 67,250 67,436 67,623 Number of MEUs 95,061 95,337 95,661 95,987 96,290 96,594 Customer Revenue to Recover 2,894,502$ 3,103,816$ 3,328,561$ 3,569,842$ 3,825,746$ Capacity Revenue to Recover 27,374,025 29,353,805 31,479,087 33,761,189 36,181,405 Monthly Component Charge per Account 3.61$ 3.86$ 4.12$ 4.41$ 4.71$ Monthly Component Charge per MEU 23.93 25.57 27.33 29.22 31.21

METER SIZE METER EQUIVALENTS MONTHLY FIXED CHARGES

0.625 1.00 23.08$ 26.00$ 27.53$ 29.43$ 31.45$ 33.63$ 35.93$

0.75 1.00 23.08 26.00 27.53 29.43 31.45 33.63 35.93 1 1.67 36.63 41.26 43.57 46.56 49.76 53.21 56.84

1.5 3.33 70.22 79.08 83.28 89.01 95.13 101.71 108.66 2 5.33 110.68 124.64 131.14 140.15 149.79 160.15 171.09 3 10.00 205.16 231.03 242.88 259.57 277.42 296.60 316.86 4 16.67 340.10 382.97 402.48 430.12 459.71 491.48 525.06 6 36.67 744.72 838.59 881.02 941.54 1,006.29 1,075.85 1,149.35 8 60.00 1,216.71 1,370.06 1,439.25 1,538.11 1,643.89 1,757.52 1,877.58 10 93.33 1,891.02 2,129.34 2,236.75 2,390.39 2,554.78 2,731.37 2,917.95 12 133.33 2,700.26 3,040.57 3,193.85 3,413.23 3,647.95 3,900.10 4,166.53 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28

METER SIZE METER EQUIVALENTS REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE

0.625 1 1,760,671$ 1,989,403$ 2,111,706$ 2,263,023$ 2,424,326$ 2,598,789$ 2,783,399$

0.75 1 13,048,066 14,746,035 15,653,088 16,775,248 17,971,507 19,265,424 20,634,650 1 1.67 4,226,060 4,793,098 5,077,293 5,442,423 5,834,394 6,258,324 6,706,095

1.5 3.33 1,039,449 1,201,335 1,273,605 1,369,977 1,473,582 1,585,869 1,705,382 2 5.33 2,000,372 2,315,867 2,453,734 2,639,953 2,840,521 3,057,898 3,289,292 31 0 630,918 724,900 762,634 817,961 877,336 940,012 1,006,388 4 16.67 534,583 613,882 645,559 693,108 744,230 797,755 854,505 6 36.67 634,610 728,395 765,490 821,946 882,612 945,988 1,013,150 86 0 1,036,637 1,189,315 1,249,378 1,341,377 1,440,234 1,543,318 1,652,527 10 93.33 226,922 260,342 273,474 293,612 315,250 337,814 361,718 12 133.33 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Calculated Revenues* 25,138,288 $ 28,562,572$ 30,265,961$ 32,458,627$ 34,803,991$ 37,331,192$ 40,007,106$ *Note: Total calculated revenues vary slightly from the sum of allocated Customer and Capacity revenue requirements due to rounding of rates to the nearest $0.01.

RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 15% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1A ‐ SFR ‐ 15% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 5,958,273$        6,391,139$        6,856,021$        7,355,081$        7,883,706$ Max Day Revenue to Recover 7,012,605          7,520,685          8,066,314          8,652,033          9,272,933 Max Hour Revenue to Recover 1,688,347          1,810,998          1,942,720          2,084,127          2,233,913 Supply 1 Revenue to Recover 2,581,061          2,770,125          2,973,205          3,191,245          3,421,661 Supply 2 Revenue to Recover 2,555,407          2,742,322          2,943,087          3,158,637          3,386,515 Supply 3 Revenue to Recover 3,382,677          3,629,890          3,895,416          4,180,493          4,481,947 Supply 4 Revenue to Recover 1,003,661          1,076,963          1,155,695          1,240,222          1,329,622 Supply Sustainability Revenue to Recover 752,056              806,440              864,834              927,524              994,014 Total Allocated Costs 24,934,086 $      26,748,562$      28,697,293$      30,789,362$      33,004,311$ REVENUE TO RECOVER ‐ BY TIER
Base Use per Tier
Tier 1 36.9% 2,200,971$        2,360,871$        2,532,597$        2,716,948$        2,912,221$ Tier 2 48.1% 2,867,069          3,075,361          3,299,057          3,539,201          3,793,570 Tier 3 14.9% 890,233              954,908              1,024,367          1,098,932          1,177,915 Max Day Max Day Extra Capacity per Tier
Tier 1 14.7% 1,027,418$        1,101,857$        1,181,797$        1,267,611$        1,358,579$ Tier 2 55.5% 3,895,195          4,177,411          4,480,485          4,805,826          5,150,708 Tier 3 29.8% 2,089,992          2,241,416          2,404,032          2,578,596          2,763,645 Max Hour Max Hour Extra Capacity per Tier
Tier 1 35.3% 596,717$           640,066$           686,621$           736,599$           789,538$ Tier 2 48.7% 821,399              881,070              945,154              1,013,950          1,086,823 Tier 3 16.0% 270,231              289,862              310,945              333,578              357,553 Supply 1 SFR Supply 1 Allocation by Tier
Tier 1 88.5% 2,284,002$        2,451,306$        2,631,013$        2,823,959$        3,027,856$ Tier 2 11.5% 297,059              318,819              342,192              367,286              393,805 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 SFR Supply 2 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 2,555,407          2,742,322          2,943,087          3,158,637          3,386,515 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 32.6% 1,101,799          1,182,321          1,268,808          1,361,662          1,459,851 Tier 3 67.4% 2,280,878          2,447,569          2,626,609          2,818,830          3,022,096 Supply 4 SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 1,003,661          1,076,963          1,155,695          1,240,222          1,329,622 Supply Susainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 752,056              806,440              864,834              927,524              994,014 PROJECTED USAGE (HFC)
Annual 12,839,589        12,927,101        13,017,449        13,110,249        13,205,833 Tier 1 4,742,911          4,775,238          4,808,612          4,842,893          4,878,201 Tier 2 6,178,298          6,220,408          6,263,883          6,308,537          6,354,532 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 15% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Tier 3 1,918,379          1,931,455          1,944,954          1,958,819          1,973,100 Winter
Tier 1 2,706,429          2,724,876          2,743,920          2,763,481          2,783,629 Tier 2 2,939,228          2,959,261          2,979,943          3,001,187          3,023,068 Tier 3 763,328              768,531              773,902              779,419              785,102 Summer
Tier 1 2,036,482          2,050,362          2,064,692          2,079,411          2,094,572 Tier 2 3,239,070          3,261,147          3,283,940          3,307,350          3,331,464 Tier 3 1,155,051          1,162,924          1,171,052          1,179,400          1,187,999 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Resilient Supply 2, 234,356
Tier 1 4,742,911                       4,742,911          ‐ Tier 2 6,178,298                       616,867              4,042,171          1,519,260          ‐ Tier 3 1,918,379                       3,145,080          1,007,655 12,839,589                     5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Tier 1 88.5% 0.0% 0.0% 0.0%
Tier 2 11.5% 100.0% 32.6% 0.0%
Tier 3 0.0% 0.0% 67.4% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 15% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Winter
Base Rate
Tier 1 1,255,931$        1,347,175$        1,445,166$        1,550,362$        1,661,789$ Tier 2 1,363,963$        1,463,054$        1,569,474$        1,683,719$        1,804,731$ Tier 3 354,226$           379,961$           407,598$           437,268$           468,695$ Max Day Rate
Tier 1 586,272$           628,748$           674,364$           723,332$           775,241$ Tier 2 1,853,078$        1,987,337$        2,131,520$        2,286,296$        2,450,368$ Tier 3 472,893              507,155              543,949              583,447              625,318 Max Hour Rate
Tier 1 340,502$           365,238$           391,804$           420,323$           450,531$ Tier 2 390,767$           419,155$           449,642$           482,371$           517,039$ Tier 3 61,144                65,586                70,356                75,477                80,902 Supply 1 Rate
Tier 1 1,303,311$        1,398,780$        1,501,325$        1,611,425$        1,727,774$ Tier 2 141,321$           151,673$           162,792$           174,731$           187,347$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,215,695$        1,304,616$        1,400,127$        1,502,672$        1,611,081$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 524,164$           562,470$           603,615$           647,789$           694,501$ Tier 3 907,567$           973,894$           1,045,134$        1,121,620$        1,202,500$ Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 399,359$           428,526$           459,854$           493,488$           529,060$ Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 299,245$           320,885$           344,120$           369,064$           395,521$ Combined Winter Revenue Requirements by Tier
Tier 1 3,486,016$        3,739,941$        4,012,659$        4,305,441$        4,615,335$ Tier 2 5,488,988$        5,888,307$        6,317,170$        6,777,577$        7,265,067$ Tier 3 2,494,434$        2,676,007$        2,871,012$        3,080,364$        3,301,996$ Tier 1 Winter Rate 1.30$                  1.29$                  1.37$                  1.46$                  1.56$                  1.66$ Tier 2 Winter Rate 1.64$                  1.87$                  1.99$                  2.12$                  2.26$                  2.40$ Tier 3 Winter Rate 3.01$                  3.27$                  3.48$                  3.71$                  3.95$                  4.21$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 15% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Summer
Base Rate
Tier 1 945,039$           1,013,696$        1,087,431$        1,166,586$        1,250,431$ Tier 2 1,503,106          1,612,306          1,729,583          1,855,482          1,988,839 Tier 3 536,007              574,948              616,769              661,664              709,219 Max Day Rate
Tier 1 441,146$           473,109$           507,433$           544,279$           583,338$ Tier 2 2,042,117          2,190,074          2,348,965          2,519,530          2,700,341 Tier 3 1,617,098          1,734,261          1,860,083          1,995,149          2,138,328 Max Hour Rate
Tier 1 256,215$           274,828$           294,817$           316,276$           339,007$ Tier 2 430,631              461,915              495,512              531,579              569,784 Tier 3 209,087              224,276              240,589              258,101              276,651 Supply 1 Rate
Tier 1 980,690$           1,052,527$        1,129,688$        1,212,534$        1,300,082$ Tier 2 155,738              167,146              179,399              192,556              206,459 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,339,712          1,437,705          1,542,960          1,655,965          1,775,434 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 577,636              619,850              665,193              713,873              765,350 Tier 3 1,373,310          1,473,675          1,581,475          1,697,211          1,819,597 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 604,301              648,437              695,841              746,735              800,562 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 452,811              485,556              520,715              558,460              598,493 Combined Summer Revenue Requirements by Tier
Tier 1 2,623,091$        2,814,159$        3,019,369$        3,239,675$        3,472,859$ Tier 2 6,048,941$        6,488,996$        6,961,613$        7,468,984$        8,006,207$ Tier 3 4,792,615$        5,141,153$        5,515,471$        5,917,319$        6,342,850$ Tier 1 Summer Rate 1.30$                  1.29$                  1.37$                  1.46$                  1.56$                  1.66$ Tier 2 Summer Rate 1.64$                  1.87$                  1.99$                  2.12$                  2.26$                  2.40$ Tier 3 Summer Rate 3.66$                  4.15$                  4.42$                  4.71$                  5.02$                  5.34$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 15% REDUCTION MFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1B ‐ MFR ‐ 15% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 162,984 $            174,825$            187,542$            201,193$            215,653$ Max Day Revenue to Recover 144,612               155,089              166,341              178,420              191,224 Max Hour Revenue to Recover 45,368                 48,664                52,204                56,003                60,028 Supply 1 Revenue to Recover 80,755                 86,670                93,024                99,846                107,055 Supply 2 Revenue to Recover 79,952                 85,800                92,082                98,825                105,955 Supply 3 Revenue to Recover 61,828                 66,347                71,200                76,410                81,920 Supply 4 Revenue to Recover 18,345                 19,685                21,124                22,669                24,303 Supply Sustainability Revenue to Recover 15,509                 16,630                17,834                19,127                20,498 Total Allocated Costs 609,353 $           653,710$           701,350$           752,494$           806,637$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 52.1% 84,956$              91,128$              97,757$              104,873$            112,410$ Tier 2 47.9% 78,028                83,697                89,785                96,320                103,243 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 25.8% 37,352$              40,058$              42,964$              46,084$              49,391$ Tier 2 74.2% 107,260              115,031              123,377              132,336              141,833 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 50.7% 22,989$              24,659$              26,452$              28,378$              30,417$ Tier 2 49.3% 22,380                24,005                25,751                27,626                29,611 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 100.0% 80,755$              86,670$              93,024$              99,846$              107,055$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 1 11.1% 8,910$                9,561$                10,261$              11,013$              11,808$ Tier 2 88.9% 71,042                76,239                81,820                87,812                94,148 Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 61,828                66,347                71,200                76,410                81,920 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 18,345                19,685                21,124                22,669                24,303 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 15,509                16,630                17,834                19,127                20,498 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 15% REDUCTION MFR PROJECTED USAGE (HFC)
Annual 350,198              352,585              355,049              357,580              360,187 Tier 1 182,542              183,787              185,071              186,390              187,749 Tier 2 167,656              168,798              169,978              171,190              172,438 Winter
Tier 1 104,853              105,567              106,305              107,063              107,844 Tier 2 81,273                81,827                82,399                82,987                83,592 Summer
Tier 1 77,690                78,219                78,766                79,327                79,906 Tier 2 86,382                86,971                87,579                88,203                88,846 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 168,390              126,994              73,894                15,881                385,160 Resilient Supply 34,962
Tier 1 182,542                        168,390              14,152 Tier 2 167,656                        ‐                            112,842              73,894                15,881 350,198                        168,390              126,994              73,894                15,881                385,160 Tier 1 100.0% 11.1% 0.0% 0.0%
Tier 2 0.0% 88.9% 100.0% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 15% REDUCTION MFR Winter
Base Rate
Tier 1 48,799$              52,344$              56,152$              60,239$              64,569$ Tier 2 37,825                40,573                43,524                46,693                50,049 Max Day Rate Seasonality Factor
Tier 1 21,455$              23,009$              24,679$              26,471$              28,370$ Tier 2 1.00 41,549                44,559                47,792                51,262                54,941 Max Hour Rate Seasonality Factor
Tier 1 13,205$              14,164$              15,194$              16,300$              17,472$ Tier 2 1.00 8,669                  9,299                  9,975                  10,701                11,470 Supply 1 Rate
Tier 1 46,386$              49,783$              53,433$              57,352$              61,493$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 5,118$                5,492$                5,894$                6,326$                6,782$ Tier 2 34,439                36,958                39,663                42,569                45,640 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 29,972                32,162                34,515                37,041                39,712 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 8,893                  9,542                  10,240                10,989                11,781 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,518                  8,062                  8,645                  9,272                  9,937 Winter Revenue Requirement By Tier
Tier 1 134,962$            144,793$            155,352$            166,687$            178,686$ Tier 2 168,864$            181,155$            194,355$            208,527$            223,530$ Tier 1 Winter Rate 1.30$                  1.29$                  1.37$                  1.46$                  1.56$                  1.66$ Tier 2 Winter Rate 1.87$                  2.08$                  2.21$                  2.36$                  2.51$                  2.67$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 15% REDUCTION MFR Summer
Base Rate
Tier 1 36,157$              38,784$              41,605$              44,633$              47,842$ Tier 2 40,203                43,124                46,260                49,628                53,194 Max Day Rate Seasonality Factor
Tier 1 15,897$              17,049$              18,285$              19,613$              21,021$ Tier 2 1.49 65,711                70,472                75,585                81,073                86,892 Max Hour Rate Seasonality Factor
Tier 1 9,784$                10,495$              11,258$              12,077$              12,945$ Tier 2 1.49 13,711                14,707                15,776                16,925                18,141 Supply 1 Rate
Tier 1 34,369$              36,886$              39,591$              42,494$              45,562$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 3,792$                4,069$                4,367$                4,687$                5,025$ Tier 2 36,603                39,281                42,157                45,244                48,508 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 31,856                34,184                36,685                39,369                42,208 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 9,452                  10,142                10,884                11,680                12,522 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,991                  8,568                  9,189                  9,855                  10,561 Summer Revenue Requirement By Tier
Tier 1 99,999$              107,283$            115,107$            123,505$            132,396$ Tier 2 205,527$            220,478$            236,536$            253,774$            272,026$ Tier 1 Summer Rate 1.30$                  1.29$                  1.37$                  1.46$                  1.56$                  1.66$ Tier 2 Summer Rate 2.12$                  2.38$                  2.54$                  2.70$                  2.88$                  3.06$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 15% REDUCTION WA4: Riverside Water Company FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA4 ‐ Riverside Irrigators ‐ 15% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 3,918$                4,202$                4,508$                4,836$                5,184$ Max Day Revenue to Recover 6,576                  7,052                  7,564                  8,113                  8,696 Max Hour Revenue to Recover 1,144                  1,227                  1,316                  1,412                  1,514 Supply 1 Revenue to Recover 1,410                  1,514                  1,625                  1,744                  1,870 Supply 2 Revenue to Recover 1,396                  1,498                  1,608                  1,726                  1,850 Supply 3 Revenue to Recover 3,195                  3,428                  3,679                  3,949                  4,233 Supply 4 Revenue to Recover 948                      1,017                  1,092                  1,171                  1,256 Supply Sustainability Revenue To Recover 705                      756                      811                      870                      932 Total Allocated Costs 19,293 $              20,696$              22,203$              23,821$              25,535$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 37.3% 1,461$                1,567$                1,681$                1,804$                1,933$ Tier 2 51.5% 2,016                  2,162                  2,319                  2,488                  2,667 Tier 3 11.3% 441                      473                      507                      544                      584 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 16.7% 1,099$                1,178$                1,264$                1,356$                1,453$ Tier 2 60.6% 3,988                  4,277                  4,587                  4,920                  5,273 Tier 3 22.6% 1,489                  1,597                  1,713                  1,838                  1,969 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 35.2% 402$                   432$                   463$                   497$                   532$ Tier 2 52.4% 599                      643                      690                      740                      793 Tier 3 12.4% 142                      153                      164                      176                      188 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 100.0% 1,410$                1,514$                1,625$                1,744$                1,870$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 1 10.7% 149$                   160$                   172$                   184$                   198$ Tier 2 89.3% 1,247                  1,338                  1,436                  1,542                  1,653 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 54.3% 1,736                  1,863                  1,999                  2,145                  2,300 Tier 3 45.7% 1,459                  1,566                  1,680                  1,803                  1,933 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 948                      1,017                  1,092                  1,171                  1,256 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 705                      756                      811                      870                      932 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 15% REDUCTION WA4: Riverside Water Company PROJECTED USAGE (HFC)
Annual 8,486                  8,486                  8,486                  8,486                  8,486 Tier 1 3,165                  3,165                  3,165                  3,165                  3,165 Tier 2 4,366                  4,366                  4,366                  4,366                  4,366 Tier 3 955                      955                      955                      955                      955 Winter
Tier 1 1,756                  1,756                  1,756                  1,756                  1,756 Tier 2 1,760                  1,760                  1,760                  1,760                  1,760 Tier 3 368                      368                      368                      368                      368 Summer
Tier 1 1,409                  1,409                  1,409                  1,409                  1,409 Tier 2 2,607                  2,607                  2,607                  2,607                  2,607 Tier 3 587                      587                      587                      587                      587 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 2,929                             2,209                             4,406                             952                                 10,495 Resilient Supply 2,008
Tier 1 3,165                                            2,929                             236 Tier 2 4,366                                            1,973                             2,394                             ‐ Tier 3 955                                                2,012                             952 8,486                                           2,929                             2,209                             4,406                             952                                 10,495 Tier 1 100.0% 10.7% 0.0% 0.0%
Tier 2 0.0% 89.3% 54.3% 0.0%
Tier 3 0.0% 0.0% 45.7% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 15% REDUCTION WA4: Riverside Water Company Winter
Base Rate
Tier 1 811$                   870$                   933$                   1,001$                1,073$ Tier 2 813                      872                      935                      1,003                  1,075 Tier 3 170                      182                      195                      210                      225 Max Day Rate
Tier 1 610$                   654$                   701$                   752$                   806$ Tier 2 1,607                  1,724                  1,849                  1,983                  2,126 Tier 3 322                      345                      371                      397                      426 Max Hour Rate
Tier 1 223$                   240$                   257$                   276$                   295$ Tier 2 242                      259                      278                      298                      320 Tier 3 31                        33                        35                        38                        41 Supply 1 Rate
Tier 1 783$                   840$                   901$                   968$                   1,037$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 83$                      89$                      95$                      102$                   110$ Tier 2 503                      539                      579                      621                      666 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 700                      751                      806                      865                      927 Tier 3 562                      603                      647                      695                      745 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 365                      392                      420                      451                      484 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 272                      291                      312                      335                      359 Winter Revenue Requirement By Tier
Tier 1 2,509$                2,692$                2,888$                3,098$                3,321$ Tier 2 3,864$                4,145$                4,447$                4,771$                5,114$ Tier 3 1,722$                1,847$                1,982$                2,126$                2,279$ Tier 1 Winter Rate 1.32$                  1.43$                  1.53$                  1.64$                  1.76$                  1.89$ Tier 2 Winter Rate 1.54$                  2.20$                  2.36$                  2.53$                  2.71$                  2.91$ Tier 3 Winter Rate 2.46$                  4.68$                  5.02$                  5.38$                  5.78$                  6.19$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 15% REDUCTION WA4: Riverside Water Company Summer
Base Rate
Tier 1 650$                   698$                   748$                   803$                   861$ Tier 2 1,204                  1,291                  1,385                  1,486                  1,592 Tier 3 271                      291                      312                      335                      359 Max Day Rate
Tier 1 489$                   525$                   563$                   604$                   647$ Tier 2 2,381                  2,553                  2,739                  2,938                  3,148 Tier 3 1,167                  1,252                  1,343                  1,440                  1,543 Max Hour Rate
Tier 1 179$                   192$                   206$                   221$                   237$ Tier 2 358                      384                      412                      442                      474 Tier 3 111                      120                      128                      138                      147 Supply 1 Rate
Tier 1 628$                   674$                   723$                   776$                   832$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 66$                      71$                      77$                      82$                      88$ Tier 2 745                      799                      858                      920                      987 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,036                  1,112                  1,194                  1,281                  1,373 Tier 3 897                      962                      1,032                  1,108                  1,188 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 582                      625                      671                      720                      772 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 433                      465                      498                      534                      573 Summer Revenue Requirement By Tier
Tier 1 2,013$                2,160$                2,317$                2,486$                2,665$ Tier 2 5,723$                6,140$                6,587$                7,066$                7,574$ Tier 3 3,462$                3,714$                3,984$                4,274$                4,582$ Tier 1 Summer Rate $1.32 1.43$                  1.53$                  1.64$                  1.76$                  1.89$ Tier 2 Summer Rate $1.58 2.20$                  2.36$                  2.53$                  2.71$                  2.91$ Tier 3 Summer Rate $3.17 5.90$                  6.33$                  6.79$                  7.28$                  7.81$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 15% REDUCTION
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA6 ‐ Commercial/Industrial
REVENUE TO RECOVER
Base Revenue to Recover 3,302,529$       3,542,456$       3,800,129$       4,076,746$       4,369,750$ Max Day Revenue to Recover 3,239,569          3,474,283          3,726,344          3,996,925          4,283,758 Max Hour Revenue to Recover 924,633             991,803             1,063,942          1,141,384          1,223,415 Supply 1 Revenue to Recover 1,046,446          1,123,099          1,205,434          1,293,834          1,387,252 Supply 2 Revenue to Recover 1,036,045          1,111,826          1,193,223          1,280,614          1,373,003 Supply 3 Revenue to Recover 2,944,055          3,159,212          3,390,308          3,638,420          3,900,786 Supply 4 Revenue to Recover 873,519             937,316             1,005,839          1,079,406          1,157,214 Supply Sustainability Revenue to Recover 347,422             372,546             399,522             428,483             459,198 Total Allocated Costs 13,714,217 $     14,712,542$     15,784,741$     16,935,811$     18,154,376$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 6,850,847          6,950,124          7,051,024          7,153,509          7,257,748 Projected Winter Usage (HCF) 3,584,395          3,636,337          3,689,128          3,742,749          3,797,287 Projected Summer Usage (HCF) 3,266,452          3,313,787          3,361,896          3,410,760          3,460,461 Winter
Base Revenue to Recover 1,727,898.32$ 1,853,429.34$ 1,988,244.78$ 2,132,972.32$ 2,286,273.11$ Max Day Revenue to Recover 1,482,483.45    1,589,892.84    1,705,240.35    1,829,063.13    1,960,322.65 Max Hour Revenue to Recover 423,128.13       453,866.57       486,878.42       522,317.41       559,856.24 Supply 1 Revenue to Recover 547,505.20       587,610.35       630,688.49       676,940.10       725,816.78 Supply 2 Revenue to Recover 542,063.47       581,712.58       624,299.71       670,023.07       718,361.36 Supply 3 Revenue to Recover 1,540,343.01    1,652,914.17    1,773,824.93    1,903,638.06    2,040,908.78 Supply 4 Revenue to Recover 457,029.06       490,408.12       526,259.55       564,750.23       605,459.60 Supply Sustainability Revenue to Recover 181,773.06       194,917.88       209,031.72       224,184.04       240,254.66 Winter Rate 1.58$                 1.93$                 2.04$                 2.15$                 2.28$                 2.41$ Summer
Base Revenue to Recover 1,574,630.44$ 1,689,026.80$ 1,811,883.97$ 1,943,773.43$ 2,083,476.82$ Max Day Revenue to Recover 1,757,085.20    1,884,390.34    2,021,103.91    2,167,861.97    2,323,435.56 Max Hour Revenue to Recover 501,504.54       537,936.74       577,063.46       619,066.69       663,559.09 Supply 1 Revenue to Recover 498,940.45       535,488.25       574,745.31       616,894.17       661,435.61 Supply 2 Revenue to Recover 493,981.40       530,113.62       568,923.23       610,590.69       654,641.50 Supply 3 Revenue to Recover 1,403,711.64    1,506,297.69    1,616,483.55    1,734,781.57    1,859,876.72 Supply 4 Revenue to Recover 416,489.71       446,908.03       479,579.41       514,655.76       551,754.31 Supply Sustainability Revenue to Recover 165,649.44       177,628.31       190,490.24       204,298.47       218,943.66 Summer Rate 1.84$                 2.09$                 2.21$                 2.33$                 2.47$                 2.61$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 15% REDUCTION
WA11 ‐ Landscape
Base Revenue to Recover 340,730$           365,484$           392,069$           420,608$           450,838$ Max Day Revenue to Recover 553,078             593,150             636,184             682,379             731,349 Max Hour Revenue to Recover 99,175               106,380             114,118             122,424             131,222 Supply 1 Revenue to Recover 92,651               99,438               106,728             114,555             122,826 Supply 2 Revenue to Recover 91,730               98,440               105,647             113,384             121,564 Supply 3 Revenue to Recover 350,059             375,642             403,120             432,621             463,818 Supply 4 Revenue to Recover 103,865             111,450             119,598             128,345             137,597 Supply Sustainability Revenue to Recover 59,314               63,603               68,209               73,153               78,397 1,690,602$       1,813,587$       1,945,671$       2,087,469$       2,237,610$ Projected Annual Usage (HCF) 697,508             707,616             717,889             728,323             738,936 Projected Winter Usage (HCF) 316,599             321,187             325,850             330,586             335,404 Projected Summer Usage (HCF) 380,909             386,429             392,039             397,737             403,532 Winter
Base Revenue to Recover 154,657.40$     165,893.25$     177,960.12$     190,914.02$     204,635.87$ Max Day Revenue to Recover 178,043.27       190,943.01       204,796.12       219,666.85       235,431.56 Max Hour Revenue to Recover 36,053.36          38,672.48          41,485.32          44,504.95          47,703.52 Supply 1 Revenue to Recover 42,054.36          45,134.89          48,443.78          51,996.38          55,750.77 Supply 2 Revenue to Recover 41,636.37          44,681.87          47,953.05          51,465.07          55,178.11 Supply 3 Revenue to Recover 158,891.81       170,503.99       182,976.44       196,367.02       210,527.49 Supply 4 Revenue to Recover 47,144.16          50,587.35          54,285.57          58,255.99          62,455.46 Supply Sustainability Revenue to Recover 26,922.65          28,869.56          30,959.99          33,204.20          35,584.53 Winter Rate 1.67$                 2.16$                 2.29$                 2.42$                 2.56$                 2.70$ Summer
Base Revenue to Recover 186,072.52$     199,590.56$     214,108.39$     229,693.75$     246,201.84$ Max Day Revenue to Recover 375,035.04       402,207.15       431,387.40       462,711.83       495,916.96 Max Hour Revenue to Recover 63,121.96          67,707.50          72,632.19          77,918.95          83,518.98 Supply 1 Revenue to Recover 50,596.74          54,302.98          58,283.95          62,558.23          67,074.96 Supply 2 Revenue to Recover 50,093.85          53,757.94          57,693.54          61,919.00          66,385.98 Supply 3 Revenue to Recover 191,167.05       205,137.86       220,143.65       236,254.39       253,290.18 Supply 4 Revenue to Recover 56,720.42          60,862.97          65,312.36          70,089.33          75,141.51 Supply Sustainability Revenue to Recover 32,391.37          34,733.73          37,248.76          39,948.86          42,812.52 Summer Rate 2.14$                 2.64$                 2.79$                 2.95$                 3.12$                 3.30$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 15% REDUCTION
WA2 ‐ Flat Rate
Base Revenue to Recover 19,356$             20,762$             22,273$             23,894$             25,611$ Max Day Revenue to Recover 60,891               65,302               70,040               75,126               80,517 Max Hour Revenue to Recover 6,143                  6,589                  7,068                  7,583                  8,128 Supply 1 Revenue to Recover 3,708                  3,980                  4,272                  4,585                  4,916 Supply 2 Revenue to Recover 3,671                  3,940                  4,228                  4,538                  4,865 Supply 3 Revenue to Recover 25,644               27,518               29,531               31,692               33,978 Supply 4 Revenue to Recover 7,609                  8,164                  8,761                  9,402                  10,080 Supply Sustainability Revenue to Recover 6,530                  7,002                  7,509                  8,054                  8,631 133,552$           143,258$           153,683$           164,873$           176,726$ Projected Annual Usage (HCF) 42,174               42,174               42,174               42,174               42,174 Projected Winter Usage (HCF) 17,045               17,045               17,045               17,045               17,045 Projected Summer Usage (HCF) 25,129               25,129               25,129               25,129               25,129

3.17$ 3.40$ 3.64$ 3.91$ 4.19$ WA7 & 10 ‐ Interruptable
Base Revenue to Recover 362,045$ 388,348$ 416,595$ 446,920$ 479,041$ Max Day Revenue to Recover 331,670 355,700 381,507 409,209 438,575 Max Hour Revenue to Recover 108,047 115,896 124,326 133,376 142,961 Supply 1 Revenue to Recover 90,590 97,226 104,354 112,007 120,094 Supply 2 Revenue to Recover 89,690 96,250 103,297 110,862 118,860 Supply 3 Revenue to Recover 346,215 371,517 398,694 427,871 458,725 Supply 4 Revenue to Recover ‐ ‐ ‐ ‐ ‐ Supply Sustainability Revenue to Recover ‐ ‐ ‐ ‐ ‐ 1,328,258$ 1,424,939$ 1,528,773$ 1,640,245$ 1,758,257$ Projected Annual Usage (HCF) 746,727 756,566 767,550 778,706 790,053 Projected Winter Usage (HCF) 305,164 309,185 313,674 318,233 322,871 Projected Summer Usage (HCF) 441,563 447,381 453,876 460,473 467,182

1.78$ 1.88$ 1.99$ 2.11$ 2.23$ RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
DEMAND REDUCTION RATE CALCULATIONS FOR 20% REDUCTION
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
UNIFORM FIXED RATES DEMAND REDUCTION RATES FOR 20% REDUCTION Fixed FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Number of Accounts 66,694 66,879 67,064 67,250 67,436 67,623 Number of MEUs 95,061 95,337 95,661 95,987 96,290 96,594 Customer Revenue to Recover 2,894,502$ 3,103,816$ 3,328,561$ 3,569,842$ 3,825,746$ Capacity Revenue to Recover 27,625,234 29,623,000 31,767,575 34,070,835 36,513,289 Monthly Component Charge per Account 3.61$ 3.86$ 4.12$ 4.41$ 4.71$ Monthly Component Charge per MEU 24.15 25.81 27.58 29.49 31.50

METER SIZE METER EQUIVALENTS MONTHLY FIXED CHARGES

0.625 1.00 23.08$ 26.00$ 27.75$ 29.66$ 31.70$ 33.90$ 36.22$

0.75 1.00 23.08 26.00 27.75 29.66 31.70 33.90 36.22 1 1.67 36.63 41.26 43.93 46.95 50.18 53.65 57.32

1.5 3.33 70.22 79.08 84.02 89.79 95.97 102.60 109.61 2 5.33 110.68 124.64 132.31 141.40 151.13 161.57 172.61 3 10.00 205.16 231.03 245.08 261.91 279.92 299.28 319.72 4 16.67 340.10 382.97 406.14 434.03 463.88 495.95 529.83 6 36.67 744.72 838.59 889.08 950.14 1,015.48 1,085.68 1,159.84 8 60.00 1,216.71 1,370.06 1,452.42 1,552.18 1,658.92 1,773.60 1,894.76 10 93.33 1,891.02 2,129.34 2,257.24 2,412.28 2,578.15 2,756.38 2,944.67 12 133.33 2,700.26 3,040.57 3,223.12 3,444.50 3,681.35 3,935.83 4,204.70 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28

METER SIZE METER EQUIVALENTS REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE

0.625 1 1,760,671$ 1,989,403$ 2,128,581$ 2,280,708$ 2,443,597$ 2,619,653$ 2,805,864$

0.75 1 13,048,066 14,746,035 15,778,177 16,906,349 18,114,365 19,420,097 20,801,198 1 1.67 4,226,060 4,793,098 5,119,244 5,488,010 5,883,640 6,310,075 6,762,727

1.5 3.33 1,039,449 1,201,335 1,284,922 1,381,983 1,486,594 1,599,746 1,720,292 2 5.33 2,000,372 2,315,867 2,475,625 2,663,499 2,865,932 3,085,012 3,318,515 31 0 630,918 724,900 769,542 825,335 885,242 948,506 1,015,471 4 16.67 534,583 613,882 651,430 699,409 750,981 805,011 862,268 6 36.67 634,610 728,395 772,493 829,454 890,673 954,631 1,022,397 86 0 1,036,637 1,189,315 1,260,810 1,353,647 1,453,402 1,557,438 1,667,648 10 93.33 226,922 260,342 275,980 296,301 318,134 340,907 365,030 12 133.33 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Calculated Revenues* 25,138,288 $ 28,562,572$ 30,516,804$ 32,724,694$ 35,092,558$ 37,641,077$ 40,341,409$ *Note: Total calculated revenues vary slightly from the sum of allocated Customer and Capacity revenue requirements due to rounding of rates to the nearest $0.01.

RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 20% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1A ‐ SFR ‐ 20% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 5,884,065$        6,313,630$        6,775,013$        7,270,292$        7,794,221$ Max Day Revenue to Recover 6,951,528          7,456,257          7,998,313          8,580,141          9,196,584 Max Hour Revenue to Recover 1,667,442          1,789,160          1,919,894          2,060,232          2,208,692 Supply 1 Revenue to Recover 2,519,445          2,706,481          2,907,435          3,123,211          3,350,391 Supply 2 Revenue to Recover 2,499,544          2,684,556          2,883,322          3,096,740          3,321,624 Supply 3 Revenue to Recover 3,312,771          3,557,546          3,820,510          4,102,850          4,400,506 Supply 4 Revenue to Recover 983,815              1,056,413          1,134,403          1,218,137          1,306,447 Supply Sustainability Revenue to Recover 752,056              806,440              864,834              927,524              994,014 Total Allocated Costs 24,570,666 $      26,370,482$      28,303,723$      30,379,126$      32,572,479$ ‐0.01457525
REVENUE TO RECOVER ‐ BY TIER
Base Use per Tier
Tier 1 36.8% 2,166,569$        2,324,739$        2,494,625$        2,676,992$        2,869,907$ Tier 2 48.5% 2,852,016          3,060,227          3,283,860          3,523,922          3,777,872 Tier 3 14.7% 865,480              928,664              996,528              1,069,378          1,146,442 Max Day Max Day Extra Capacity per Tier
Tier 1 15.5% 1,079,038$        1,157,383$        1,241,523$        1,331,836$        1,427,522$ Tier 2 56.3% 3,911,693          4,195,709          4,500,729          4,828,129          5,175,008 Tier 3 28.2% 1,960,797          2,103,165          2,256,061          2,420,175          2,594,054 Max Hour Max Hour Extra Capacity per Tier
Tier 1 35.3% 588,554$           631,517$           677,662$           727,197$           779,599$ Tier 2 49.0% 817,520              877,196              941,293              1,010,098          1,082,886 Tier 3 15.7% 261,368              280,447              300,939              322,937              346,208 Supply 1 SFR Supply 1 Allocation by Tier
Tier 1 83.8% 2,112,136$        2,268,935$        2,437,401$        2,618,294$        2,808,747$ Tier 2 16.2% 407,309              437,546              470,033              504,917              541,644 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 SFR Supply 2 Allocation by Tier
Tier 10 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 2 100.0% 2,499,544$        2,684,556$        2,883,322$        3,096,740$        3,321,624$ Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 2 21.6% 714,622              767,424              824,150              885,055              949,265 Tier 3 78.4% 2,598,149$        2,790,122$        2,996,361$        3,217,795$        3,451,241$ Supply 4 SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 983,815              1,056,413          1,134,403          1,218,137          1,306,447 Supply Susainability All to Tier 3
Tier 10 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 20 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 100.0% 752,056              806,440              864,834              927,524              994,014 PROJECTED USAGE (HFC)
Annual 12,203,060        12,286,235        12,372,103        12,460,303        12,551,148 Tier 1 4,493,284          4,523,910          4,555,528          4,588,004          4,621,454 Tier 2 5,914,843          5,955,158          5,996,778          6,039,529          6,083,562 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 20% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Tier 3 1,794,933          1,807,167          1,819,797          1,832,770          1,846,133 Winter
Tier 1 2,563,986          2,581,461          2,599,503          2,618,035          2,637,122 Tier 2 2,839,194          2,858,545          2,878,524          2,899,044          2,920,181 Tier 3 745,602              750,684              755,931              761,320              766,870 Summer
Tier 1 1,929,299          1,942,449          1,956,024          1,969,969          1,984,331 Tier 2 3,075,649          3,096,613          3,118,255          3,140,485          3,163,381 Tier 3 1,049,331          1,056,483          1,063,867          1,071,451          1,079,263 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Resilient Supply 2, 870,884
Tier 1 4,493,284                       4,493,284
Tier 2 5,914,843                       866,494              4,042,171          1,006,178          ‐ Tier 3 1,794,933                       3,658,162          1,007,655 12,203,060                     5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Tier 1 83.8% 0.0% 0.0% 0.0%
Tier 2 16.2% 100.0% 21.6% 0.0%
Tier 3 0.0% 0.0% 78.4% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 20% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Winter
Base Rate
Tier 1 1,236,301$        1,326,557$        1,423,498$        1,527,562$        1,637,644$ Tier 2 1,369,001$        1,468,944$        1,576,291$        1,691,524$        1,813,423$ Tier 3 359,514$           385,760$           413,951$           444,212$           476,224$ Max Day Rate
Tier 1 615,727$           660,433$           708,445$           759,981$           814,582$ Tier 2 1,877,658$        2,013,989$        2,160,403$        2,317,558$        2,484,065$ Tier 3 469,039              503,095              539,669              578,927              620,520 Max Hour Rate
Tier 1 335,844$           360,360$           386,691$           414,957$           444,859$ Tier 2 392,419$           421,064$           451,832$           484,859$           519,798$ Tier 3 62,521                67,085                71,987                77,249                82,816 Supply 1 Rate
Tier 1 1,205,240$        1,294,714$        1,390,845$        1,494,067$        1,602,744$ Tier 2 195,513$           210,027$           225,622$           242,366$           259,996$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,199,811$        1,288,618$        1,384,028$        1,486,471$        1,594,418$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 343,027$           368,372$           395,601$           424,837$           455,658$ Tier 3 1,079,252$        1,158,996$        1,244,667$        1,336,649$        1,433,620$ Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 408,670$           438,826$           471,223$           506,006$           542,688$ Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 312,398$           334,989$           359,246$           385,287$           412,906$ Combined Winter Revenue Requirements by Tier
Tier 1 3,393,113$        3,642,064$        3,909,480$        4,196,567$        4,499,829$ Tier 2 5,377,429$        5,771,015$        6,193,777$        6,647,615$        7,127,357$ Tier 3 2,691,395$        2,888,752$        3,100,743$        3,328,330$        3,568,774$ Tier 1 Winter Rate 1.30$                  1.32$                  1.41$                  1.50$                  1.60$                  1.71$ Tier 2 Winter Rate 1.64$                  1.89$                  2.02$                  2.15$                  2.29$                  2.44$ Tier 3 Winter Rate 3.01$                  3.61$                  3.85$                  4.10$                  4.37$                  4.65$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 20% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Summer
Base Rate
Tier 1 930,268$           998,183$           1,071,126$        1,149,430$        1,232,263$ Tier 2 1,483,015          1,591,282          1,707,569          1,832,399          1,964,449 Tier 3 505,966              542,904              582,578              625,166              670,219 Max Day Rate
Tier 1 463,311$           496,950$           533,077$           571,856$           612,941$ Tier 2 2,034,034          2,181,720          2,340,327          2,510,571          2,690,944 Tier 3 1,491,758          1,600,070          1,716,392          1,841,248          1,973,534 Max Hour Rate
Tier 1 252,710$           271,157$           290,970$           312,239$           334,739$ Tier 2 425,101              456,132              489,461              525,239              563,088 Tier 3 198,846              213,362              228,952              245,687              263,392 Supply 1 Rate
Tier 1 906,896$           974,222$           1,046,556$        1,124,227$        1,206,002$ Tier 2 211,796              227,519              244,412              262,551              281,649 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,299,734          1,395,938          1,499,294          1,610,269          1,727,205 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 371,595              399,051              428,548              460,218              493,607 Tier 3 1,518,897          1,631,126          1,751,695          1,881,146          2,017,621 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 575,146              617,586              663,180              712,132              763,759 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 439,657              471,451              505,588              542,237              581,108 Combined Summer Revenue Requirements by Tier
Tier 1 2,553,185$        2,740,511$        2,941,730$        3,157,752$        3,385,945$ Tier 2 5,825,274$        6,251,642$        6,709,611$        7,201,248$        7,720,942$ Tier 3 4,730,270$        5,076,498$        5,448,384$        5,847,618$        6,269,632$ Tier 1 Summer Rate 1.30$                  1.32$                  1.41$                  1.50$                  1.60$                  1.71$ Tier 2 Summer Rate 1.64$                  1.89$                  2.02$                  2.15$                  2.29$                  2.44$ Tier 3 Summer Rate 3.66$                  4.51$                  4.81$                  5.12$                  5.46$                  5.81$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 20% REDUCTION MFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1B ‐ MFR ‐ 20% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 160,954 $            172,705$            185,326$            198,874$            213,205$ Max Day Revenue to Recover 143,352               153,761              164,939              176,937              189,649 Max Hour Revenue to Recover 44,807                 48,077                51,590                55,361                59,351 Supply 1 Revenue to Recover 78,827                 84,679                90,966                97,717                104,825 Supply 2 Revenue to Recover 78,204                 83,993                90,212                96,889                103,925 Supply 3 Revenue to Recover 60,550                 65,024                69,831                74,991                80,432 Supply 4 Revenue to Recover 17,982                 19,309                20,734                22,265                23,879 Supply Sustainability Revenue to Recover 15,509                 16,630                17,834                19,127                20,498 Total Allocated Costs 600,185 $           644,178$           691,432$           742,162$           795,764$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 55.0% 88,559$              95,025$              101,969$            109,423$            117,308$ Tier 2 45.0% 72,395                77,680                83,357                89,451                95,897 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 28.8% 41,353$              44,356$              47,580$              51,041$              54,708$ Tier 2 71.2% 101,999              109,405              117,359              125,896              134,941 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 53.6% 24,001$              25,753$              27,634$              29,654$              31,791$ Tier 2 46.4% 20,806                22,325                23,956                25,707                27,559 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 100.0% 78,827$              84,679$              90,966$              97,717$              104,825$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 1 10.5% 8,242$                8,852$                9,507$                10,211$              10,952$ Tier 2 89.5% 69,963                75,141                80,705                86,678                92,973 Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 60,550                65,024                69,831                74,991                80,432 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 17,982                19,309                20,734                22,265                23,879 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 15,509                16,630                17,834                19,127                20,498 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 20% REDUCTION MFR PROJECTED USAGE (HFC)
Annual 331,767              334,028              336,362              338,760              341,230 Tier 1 182,542              183,787              185,071              186,390              187,749 Tier 2 149,224              150,241              151,291              152,370              153,481 Winter
Tier 1 104,853              105,567              106,305              107,063              107,844 Tier 2 72,338                72,832                73,341                73,863                74,402 Summer
Tier 1 77,690                78,219                78,766                79,327                79,906 Tier 2 76,886                77,410                77,951                78,506                79,079 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 169,159              126,994              73,894                15,881                385,929 Resilient Supply 54,162
Tier 1 182,542                        169,159              13,383 Tier 2 149,224                        ‐                            113,611              73,894                15,881 331,767                        169,159              126,994              73,894                15,881                385,929 Tier 1 100.0% 10.5% 0.0% 0.0%
Tier 2 0.0% 89.5% 100.0% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 20% REDUCTION MFR Winter
Base Rate
Tier 1 50,869$              54,582$              58,571$              62,853$              67,382$ Tier 2 35,094                37,657                40,409                43,362                46,487 Max Day Rate Seasonality Factor
Tier 1 23,753$              25,478$              27,330$              29,318$              31,425$ Tier 2 1.00 39,511                42,380                45,461                48,768                52,271 Max Hour Rate Seasonality Factor
Tier 1 13,786$              14,792$              15,873$              17,034$              18,261$ Tier 2 1.00 8,059                  8,648                  9,280                  9,958                  10,676 Supply 1 Rate
Tier 1 45,278$              48,639$              52,251$              56,129$              60,212$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 4,734$                5,084$                5,461$                5,865$                6,291$ Tier 2 33,915                36,426                39,123                42,018                45,070 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 29,352                31,522                33,852                36,353                38,991 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 8,717                  9,360                  10,051                10,793                11,576 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,518                  8,062                  8,646                  9,272                  9,937 Winter Revenue Requirement By Tier
Tier 1 138,421$            148,576$            159,486$            171,198$            183,571$ Tier 2 162,167$            174,054$            186,820$            200,524$            215,007$ Tier 1 Winter Rate 1.30$                  1.32$                  1.41$                  1.50$                  1.60$                  1.70$ Tier 2 Winter Rate 1.87$                  2.24$                  2.39$                  2.55$                  2.71$                  2.89$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 20% REDUCTION MFR Summer
Base Rate
Tier 1 37,691$              40,442$              43,398$              46,570$              49,926$ Tier 2 37,301                40,024                42,949                46,088                49,410 Max Day Rate Seasonality Factor
Tier 1 17,600$              18,878$              20,250$              21,723$              23,284$ Tier 2 1.49 62,489                67,025                71,898                77,128                82,670 Max Hour Rate Seasonality Factor
Tier 1 10,215$              10,960$              11,761$              12,621$              13,530$ Tier 2 1.49 12,746                13,677                14,676                15,749                16,884 Supply 1 Rate
Tier 1 33,549$              36,039$              38,715$              41,588$              44,613$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 3,508$                3,767$                4,046$                4,346$                4,661$ Tier 2 36,047                38,716                41,582                44,660                47,903 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 31,198                33,503                35,979                38,638                41,442 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 9,265                  9,949                  10,683                11,472                12,303 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,991                  8,569                  9,189                  9,855                  10,561 Summer Revenue Requirement By Tier
Tier 1 102,562$            110,086$            118,170$            126,847$            136,015$ Tier 2 197,037$            211,462$            226,957$            243,589$            261,173$ Tier 1 Summer Rate 1.30$                  1.32$                  1.41$                  1.50$                  1.60$                  1.70$ Tier 2 Summer Rate 2.12$                  2.56$                  2.73$                  2.91$                  3.10$                  3.30$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 20% REDUCTION WA4: Riverside Water Company FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA4 ‐ Riverside Irrigators ‐ 20% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 3,869$                4,151$                4,455$                4,780$                5,125$ Max Day Revenue to Recover 6,519                  6,992                  7,500                  8,046                  8,624 Max Hour Revenue to Recover 1,130                  1,212                  1,301                  1,396                  1,497 Supply 1 Revenue to Recover 1,377                  1,479                  1,589                  1,707                  1,831 Supply 2 Revenue to Recover 1,366                  1,467                  1,576                  1,692                  1,815 Supply 3 Revenue to Recover 3,129                  3,360                  3,609                  3,875                  4,156 Supply 4 Revenue to Recover 929                      998                      1,071                  1,151                  1,234 Supply Sustainability Revenue To Recover 705                      756                      811                      870                      932 Total Allocated Costs 19,024 $              20,416$              21,911$              23,517$              25,214$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 37.5% 1,451$                1,557$                1,671$                1,793$                1,922$ Tier 2 51.5% 1,991                  2,136                  2,292                  2,460                  2,637 Tier 3 11.0% 427                      459                      492                      528                      566 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 18.8% 1,226$                1,315$                1,411$                1,513$                1,622$ Tier 2 59.7% 3,891                  4,174                  4,477                  4,803                  5,148 Tier 3 21.5% 1,401                  1,503                  1,612                  1,730                  1,854 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 35.5% 401$                   431$                   462$                   496$                   532$ Tier 2 52.3% 591                      634                      681                      731                      783 Tier 3 12.2% 137                      147                      158                      170                      182 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 100.0% 1,377$                1,479$                1,589$                1,707$                1,831$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 1,366                  1,467                  1,576                  1,692                  1,815 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 43.1% 1,350                  1,450                  1,557                  1,672                  1,793 Tier 3 56.9% 1,779                  1,910                  2,052                  2,203                  2,363 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 929                      998                      1,071                  1,151                  1,234 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 705                      756                      811                      870                      932 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 20% REDUCTION WA4: Riverside Water Company PROJECTED USAGE (HFC)
Annual 7,987                  7,987                  7,987                  7,987                  7,987 Tier 1 2,995                  2,995                  2,995                  2,995                  2,995 Tier 2 4,109                  4,109                  4,109                  4,109                  4,109 Tier 3 882                      882                      882                      882                      882 Winter
Tier 1 1,710                  1,710                  1,710                  1,710                  1,710 Tier 2 1,656                  1,656                  1,656                  1,656                  1,656 Tier 3 344                      344                      344                      344                      344 Summer
Tier 1 1,285                  1,285                  1,285                  1,285                  1,285 Tier 2 2,453                  2,453                  2,453                  2,453                  2,453 Tier 3 538                      538                      538                      538                      538 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 2,929                             2,209                             4,406                             952                                 10,495 Resilient Supply 2,508
Tier 1 2,995                                            2,929 Tier 2 4,109                                            ‐                                   2,209                             1,901                             ‐ Tier 3 882                                                2,505                             952 7,987                                           2,929                             2,209                             4,406                             952                                 10,495 Tier 1 100.0% 0.0% 0.0% 0.0%
Tier 2 0.0% 100.0% 43.1% 0.0%
Tier 3 0.0% 0.0% 56.9% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 20% REDUCTION WA4: Riverside Water Company Winter
Base Rate
Tier 1 828$                   889$                   954$                   1,023$                1,097$ Tier 2 802                      861                      924                      991                      1,063 Tier 3 167                      179                      192                      206                      221 Max Day Rate
Tier 1 700$                   751$                   805$                   864$                   926$ Tier 2 1,568                  1,682                  1,804                  1,935                  2,074 Tier 3 308                      330                      354                      380                      407 Max Hour Rate
Tier 1 229$                   246$                   264$                   283$                   303$ Tier 2 238                      256                      274                      294                      316 Tier 3 30                        32                        35                        37                        40 Supply 1 Rate
Tier 1 786$                   844$                   907$                   974$                   1,045$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 550                      591                      635                      682                      731 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 544                      584                      627                      674                      723 Tier 3 693                      745                      800                      859                      921 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 362                      389                      418                      449                      481 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 275                      295                      316                      339                      363 Winter Revenue Requirement By Tier
Tier 1 2,543$                2,730$                2,930$                3,145$                3,372$ Tier 2 3,703$                3,974$                4,264$                4,577$                4,907$ Tier 3 1,835$                1,970$                2,114$                2,270$                2,434$ Tier 1 Winter Rate 1.32$                  1.49$                  1.60$                  1.71$                  1.84$                  1.97$ Tier 2 Winter Rate 1.54$                  2.24$                  2.40$                  2.58$                  2.76$                  2.96$ Tier 3 Winter Rate 2.46$                  5.34$                  5.73$                  6.15$                  6.60$                  7.07$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 20% REDUCTION WA4: Riverside Water Company Summer
Base Rate
Tier 1 622$                   668$                   717$                   769$                   825$ Tier 2 1,188                  1,275                  1,368                  1,468                  1,574 Tier 3 261                      280                      300                      322                      345 Max Day Rate
Tier 1 526$                   564$                   605$                   649$                   696$ Tier 2 2,323                  2,491                  2,672                  2,867                  3,073 Tier 3 1,094                  1,173                  1,258                  1,350                  1,447 Max Hour Rate
Tier 1 172$                   185$                   198$                   213$                   228$ Tier 2 353                      379                      406                      436                      467 Tier 3 107                      115                      123                      132                      142 Supply 1 Rate
Tier 1 591$                   634$                   682$                   732$                   785$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 815                      876                      940                      1,010                  1,083 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 806                      865                      929                      998                      1,070 Tier 3 1,085                  1,165                  1,251                  1,343                  1,441 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 567                      608                      653                      701                      752 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 430                      461                      494                      530                      568 Summer Revenue Requirement By Tier
Tier 1 1,911$                2,051$                2,202$                2,363$                2,534$ Tier 2 5,485$                5,886$                6,317$                6,779$                7,268$ Tier 3 3,542$                3,802$                4,080$                4,379$                4,695$ Tier 1 Summer Rate $1.32 1.49$                  1.60$                  1.71$                  1.84$                  1.97$ Tier 2 Summer Rate $1.58 2.24$                  2.40$                  2.58$                  2.76$                  2.96$ Tier 3 Summer Rate $3.17 6.58$                  7.07$                  7.58$                  8.14$                  8.73$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 20% REDUCTION
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA6 ‐ Commercial/Industrial
REVENUE TO RECOVER
Base Revenue to Recover 3,261,397$       3,499,495$       3,755,228$       4,029,750$       4,320,151$ Max Day Revenue to Recover 3,211,353          3,444,520          3,694,930          3,963,713          4,248,488 Max Hour Revenue to Recover 913,184             979,844             1,051,441          1,128,298          1,209,603 Supply 1 Revenue to Recover 1,021,465          1,097,295          1,178,768          1,266,251          1,358,357 Supply 2 Revenue to Recover 1,013,396          1,088,406          1,168,992          1,255,519          1,346,694 Supply 3 Revenue to Recover 2,883,213          3,096,248          3,325,115          3,570,845          3,829,905 Supply 4 Revenue to Recover 856,247             919,430             987,308             1,060,185          1,137,044 Supply Sustainability Revenue to Recover 347,422             372,546             399,522             428,483             459,198 Total Allocated Costs 13,507,677 $     14,497,784$     15,561,304$     16,703,042$     17,909,439$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 6,343,958          6,435,890          6,529,324          6,624,226          6,720,753 Projected Winter Usage (HCF) 3,354,509          3,403,120          3,452,526          3,502,707          3,553,748 Projected Summer Usage (HCF) 2,989,449          3,032,770          3,076,798          3,121,519          3,167,005 Winter
Base Revenue to Recover 1,724,536.06$ 1,850,435.71$ 1,985,660.80$ 2,130,819.87$ 2,284,376.22$ Max Day Revenue to Recover 1,487,387.18    1,595,381.79    1,711,363.50    1,835,854.23    1,967,752.05 Max Hour Revenue to Recover 422,955.02       453,829.55       486,990.90       522,588.29       560,246.10 Supply 1 Revenue to Recover 540,122.09       580,219.25       623,300.06       669,558.31       718,261.63 Supply 2 Revenue to Recover 535,855.86       575,518.85       618,130.80       663,883.42       712,094.45 Supply 3 Revenue to Recover 1,524,563.01    1,637,210.31    1,758,229.03    1,888,163.62    2,025,147.55 Supply 4 Revenue to Recover 452,759.51       486,169.30       522,061.07       560,596.28       601,237.16 Supply Sustainability Revenue to Recover 183,707.37       196,992.09       211,256.18       226,569.67       242,811.36 Winter Rate 1.58$                 2.05$                 2.17$                 2.29$                 2.43$                 2.56$ Summer
Base Revenue to Recover 1,536,860.64$ 1,649,058.92$ 1,769,567.19$ 1,898,929.72$ 2,035,774.72$ Max Day Revenue to Recover 1,723,966.22    1,849,137.95    1,983,566.53    2,127,859.06    2,280,735.76 Max Hour Revenue to Recover 490,228.89       526,014.18       564,449.84       605,709.43       649,356.87 Supply 1 Revenue to Recover 481,342.43       517,075.91       555,468.16       596,692.47       640,095.47 Supply 2 Revenue to Recover 477,540.49       512,887.04       550,861.45       591,635.16       634,599.44 Supply 3 Revenue to Recover 1,358,649.98    1,459,038.13    1,566,886.16    1,682,680.95    1,804,757.10 Supply 4 Revenue to Recover 403,487.23       433,261.11       465,246.70       499,588.42       535,806.41 Supply Sustainability Revenue to Recover 163,715.12       175,554.10       188,265.79       201,912.84       216,386.96 Summer Rate 1.84$                 2.22$                 2.35$                 2.48$                 2.63$                 2.78$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 20% REDUCTION
WA11 ‐ Landscape
Base Revenue to Recover 336,486$           361,051$           387,436$           415,759$           445,720$ Max Day Revenue to Recover 548,261             588,069             630,820             676,709             725,327 Max Hour Revenue to Recover 97,947               105,097             112,777             121,020             129,741 Supply 1 Revenue to Recover 90,439               97,153               104,367             112,112             120,267 Supply 2 Revenue to Recover 89,725               96,366               103,501             111,162             119,235 Supply 3 Revenue to Recover 342,825             368,155             395,368             424,586             455,390 Supply 4 Revenue to Recover 101,811             109,324             117,395             126,060             135,199 Supply Sustainability Revenue to Recover 59,314               63,603               68,209               73,153               78,397 1,666,809$       1,788,819$       1,919,873$       2,060,562$       2,209,276$ Projected Annual Usage (HCF) 635,900             645,115             654,481             663,993             673,669 Projected Winter Usage (HCF) 295,899             300,187             304,545             308,971             313,474 Projected Summer Usage (HCF) 340,001             344,928             349,936             355,022             360,195 Winter
Base Revenue to Recover 156,574.80$     168,005.56$     180,282.93$     193,462.01$     207,404.21$ Max Day Revenue to Recover 182,041.42       195,258.93       209,453.89       224,689.92       240,833.56 Max Hour Revenue to Recover 35,606.95          38,206.15          40,997.87          43,994.69          47,164.95 Supply 1 Revenue to Recover 42,083.49          45,207.66          48,564.28          52,168.41          55,963.24 Supply 2 Revenue to Recover 41,751.09          44,841.43          48,161.52          51,726.25          55,482.72 Supply 3 Revenue to Recover 159,524.18       171,311.17       183,974.05       197,569.61       211,903.52 Supply 4 Revenue to Recover 47,374.94          50,870.82          54,626.38          58,658.47          62,911.10 Supply Sustainability Revenue to Recover 27,600.18          29,596.08          31,739.11          34,039.76          36,479.99 Winter Rate 1.58$                 2.34$                 2.48$                 2.62$                 2.77$                 2.93$ Summer
Base Revenue to Recover 179,911.43$     193,045.80$     207,153.06$     222,297.05$     238,316.26$ Max Day Revenue to Recover 366,219.82       392,809.84       421,366.41       452,018.64       484,493.39 Max Hour Revenue to Recover 62,340.39          66,891.06          71,778.78          77,025.58          82,576.05 Supply 1 Revenue to Recover 48,355.81          51,945.60          55,802.51          59,943.98          64,304.14 Supply 2 Revenue to Recover 47,973.86          51,524.78          55,339.71          59,435.92          63,752.01 Supply 3 Revenue to Recover 183,300.40       196,844.10       211,394.32       227,016.88       243,486.16 Supply 4 Revenue to Recover 54,435.93          58,452.82          62,768.13          67,401.37          72,287.54 Supply Sustainability Revenue to Recover 31,713.84          34,007.20          36,469.64          39,113.31          41,917.06 Summer Rate 1.84$                 2.87$                 3.03$                 3.21$                 3.39$                 3.58$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 20% REDUCTION
WA2 ‐ Flat Rate
Base Revenue to Recover 19,115$             20,511$             22,009$             23,618$             25,320$ Max Day Revenue to Recover 60,360               64,743               69,450               74,502               79,854 Max Hour Revenue to Recover 6,067                  6,510                  6,985                  7,496                  8,036 Supply 1 Revenue to Recover 3,620                  3,888                  4,177                  4,487                  4,813 Supply 2 Revenue to Recover 3,591                  3,857                  4,142                  4,449                  4,772 Supply 3 Revenue to Recover 25,114               26,970               28,963               31,104               33,360 Supply 4 Revenue to Recover 7,458                  8,009                  8,600                  9,235                  9,904 Supply Sustainability Revenue to Recover 6,530                  7,002                  7,509                  8,054                  8,631 131,855$           141,489$           151,836$           162,944$           174,692$ Projected Annual Usage (HCF) 39,955               39,955               39,955               39,955               39,955 Projected Winter Usage (HCF) 16,148               16,148               16,148               16,148               16,148 Projected Summer Usage (HCF) 23,807               23,807               23,807               23,807               23,807

3.30$ 3.54$ 3.80$ 4.08$ 4.37$ WA7 & 10 ‐ Interruptable
Base Revenue to Recover 357,536$ 383,638$ 411,673$ 441,768$ 473,604$ Max Day Revenue to Recover 328,781 352,653 378,291 405,809 434,964 Max Hour Revenue to Recover 106,709 114,499 122,865 131,846 141,347 Supply 1 Revenue to Recover 88,428 94,993 102,046 109,619 117,593 Supply 2 Revenue to Recover 87,729 94,223 101,199 108,690 116,583 Supply 3 Revenue to Recover 339,060 364,113 391,027 419,924 450,389 Supply 4 Revenue to Recover ‐ ‐ ‐ ‐ ‐ Supply Sustainability Revenue to Recover ‐ ‐ ‐ ‐ ‐ 1,308,244$ 1,404,118$ 1,507,101$ 1,617,656$ 1,734,480$ Projected Annual Usage (HCF) 686,070 695,030 705,120 715,369 725,793 Projected Winter Usage (HCF) 281,068 284,739 288,872 293,071 297,342 Projected Summer Usage (HCF) 405,002 410,291 416,248 422,298 428,451

1.91$ 2.02$ 2.14$ 2.26$ 2.39$ RIVERSIDE PUBLIC UTILITIES
2023 RPU Water Rate Model
DEMAND REDUCTION RATE CALCULATIONS FOR 30% REDUCTION
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
UNIFORM FIXED RATES DEMAND REDUCTION RATES FOR 30% REDUCTION Fixed FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Number of Accounts 66,694 66,879 67,064 67,250 67,436 67,623 Number of MEUs 95,061 95,337 95,661 95,987 96,290 96,594 Customer Revenue to Recover 2,894,502$ 3,103,816$ 3,328,561$ 3,569,842$ 3,825,746$ Capacity Revenue to Recover 28,186,521 30,224,618 32,411,864 34,762,601 37,254,572 Monthly Component Charge per Account 3.61$ 3.86$ 4.12$ 4.41$ 4.71$ Monthly Component Charge per MEU 24.64 26.33 28.14 30.09 32.14

METER SIZE METER EQUIVALENTS MONTHLY FIXED CHARGES

0.625 1.00 23.08$ 26.00$ 28.24$ 30.19$ 32.26$ 34.50$ 36.85$

0.75 1.00 23.08 26.00 28.24 30.19 32.26 34.50 36.85 1 1.67 36.63 41.26 44.75 47.83 51.12 54.65 58.39

1.5 3.33 70.22 79.08 85.65 91.53 97.83 104.59 111.74 2 5.33 110.68 124.64 134.92 144.19 154.11 164.76 176.02 3 10.00 205.16 231.03 249.98 267.15 285.52 305.26 326.12 4 16.67 340.10 382.97 414.32 442.77 473.21 505.93 540.49 6 36.67 744.72 838.59 907.07 969.36 1,035.99 1,107.63 1,183.30 8 60.00 1,216.71 1,370.06 1,481.86 1,583.63 1,692.48 1,809.52 1,933.13 10 93.33 1,891.02 2,129.34 2,303.03 2,461.19 2,630.36 2,812.25 3,004.36 12 133.33 2,700.26 3,040.57 3,288.54 3,514.37 3,755.92 4,015.66 4,289.97 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28

METER SIZE METER EQUIVALENTS REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE

0.625 1 1,760,671$ 1,989,403$ 2,166,167$ 2,321,463$ 2,486,765$ 2,666,019$ 2,854,668$

0.75 1 13,048,066 14,746,035 16,056,782 17,208,451 18,434,366 19,763,816 21,163,008 1 1.67 4,226,060 4,793,098 5,214,800 5,590,874 5,993,855 6,427,691 6,888,967

1.5 3.33 1,039,449 1,201,335 1,309,850 1,408,764 1,515,406 1,630,775 1,753,722 2 5.33 2,000,372 2,315,867 2,524,460 2,716,053 2,922,442 3,145,921 3,384,074 31 0 630,918 724,900 784,928 841,847 902,952 967,458 1,035,799 4 16.67 534,583 613,882 664,550 713,492 766,085 821,210 879,616 6 36.67 634,610 728,395 788,124 846,233 908,662 973,932 1,043,076 86 0 1,036,637 1,189,315 1,286,366 1,381,075 1,482,804 1,588,980 1,701,419 10 93.33 226,922 260,342 281,578 302,308 324,576 347,817 372,429 12 133.33 ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Calculated Revenues* 25,138,288 $ 28,562,572$ 31,077,606$ 33,330,559$ 35,737,913$ 38,333,619$ 41,076,779$ *Note: Total calculated revenues vary slightly from the sum of allocated Customer and Capacity revenue requirements due to rounding of rates to the nearest $0.01.

RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 30% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1A ‐ SFR ‐ 30% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 5,726,702$        6,149,044$        6,602,845$        7,089,827$        7,603,631$ Max Day Revenue to Recover 6,817,749          7,315,026          7,849,233          8,422,392          9,029,021 Max Hour Revenue to Recover 1,623,092          1,742,768          1,871,359          2,009,351          2,154,952 Supply 1 Revenue to Recover 2,393,569          2,576,297          2,772,762          2,983,711          3,204,148 Supply 2 Revenue to Recover 2,384,987          2,565,939          2,760,471          2,969,325          3,187,944 Supply 3 Revenue to Recover 3,169,040          3,408,603          3,666,128          3,942,596          4,232,282 Supply 4 Revenue to Recover 942,925              1,014,011          1,090,424          1,172,454          1,258,470 Supply Sustainability Revenue to Recover 752,056              806,440              864,834              927,524              994,014 Total Allocated Costs 23,810,119 $      25,578,128$      27,478,057$      29,517,180$      31,664,461$ REVENUE TO RECOVER ‐ BY TIER
Base Use per Tier
Tier 1 41.1% 2,354,226$        2,527,849$        2,714,405$        2,914,602$        3,125,825$ Tier 2 46.2% 2,644,852          2,839,908          3,049,495          3,274,405          3,511,703 Tier 3 12.7% 727,624              781,286              838,945              900,820              966,103 Max Day Max Day Extra Capacity per Tier
Tier 1 22.7% 1,546,890$        1,659,718$        1,780,925$        1,910,970$        2,048,609$ Tier 2 57.2% 3,897,160          4,181,414          4,486,778          4,814,407          5,161,168 Tier 3 20.1% 1,373,698          1,473,894          1,581,530          1,697,015          1,819,244 Max Hour Max Hour Extra Capacity per Tier
Tier 1 39.8% 646,604$           694,281$           745,508$           800,481$           858,486$ Tier 2 46.9% 761,919              818,099              878,462              943,239              1,011,588 Tier 3 13.2% 214,568              230,389              247,388              265,630              284,878 Supply 1 SFR Supply 1 Allocation by Tier
Tier 1 83.8% 2,006,610$        2,159,798$        2,324,501$        2,501,347$        2,686,146$ Tier 2 16.2% 386,959              416,500              448,261              482,365              518,002 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 SFR Supply 2 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 2,384,987          2,565,939          2,760,471          2,969,325          3,187,944 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 23 . 0 % 94,649                101,804              109,495              117,753              126,405 Tier 3 97.0% 3,074,391          3,306,799          3,556,633          3,824,843          4,105,877 Supply 4 SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 942,925              1,014,011          1,090,424          1,172,454          1,258,470 Supply Susainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 752,056              806,440              864,834              927,524              994,014 PROJECTED USAGE (HFC)
Annual 10,930,004        11,004,501        11,081,412        11,160,410        11,241,779 Tier 1 4,493,284          4,523,910          4,555,528          4,588,004          4,621,454 Tier 2 5,047,973          5,082,380          5,117,901          5,154,386          5,191,965 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 30% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Tier 3 1,388,746          1,398,212          1,407,984          1,418,021          1,428,360 Winter
Tier 1 2,563,986          2,581,461          2,599,503          2,618,035          2,637,122 Tier 2 2,510,043          2,527,151          2,544,813          2,562,955          2,581,641 Tier 3 687,277              691,961              696,797              701,765              706,881 Summer
Tier 1 1,929,299          1,942,449          1,956,024          1,969,969          1,984,331 Tier 2 2,537,931          2,555,229          2,573,087          2,591,431          2,610,324 Tier 3 701,470              706,251              711,187              716,257              721,479 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Resilient Supply 4, 143,941
Tier 1 4,493,284                       4,493,284
Tier 2 5,047,973                       866,494              4,042,171          139,309              ‐ Tier 3 1,388,746                       4,525,032          1,007,655 10,930,004                     5,359,778          4,042,171          4,664,340          1,007,655          15,073,945 Tier 1 83.8% 0.0% 0.0% 0.0%
Tier 2 16.2% 100.0% 3.0% 0.0%
Tier 3 0.0% 0.0% 97.0% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 30% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Winter
Base Rate
Tier 1 1,343,383$        1,442,457$        1,548,911$        1,663,148$        1,783,677$ Tier 2 1,315,120$        1,412,110$        1,516,324$        1,628,158$        1,746,151$ Tier 3 360,094$           386,651$           415,186$           445,807$           478,115$ Max Day Rate
Tier 1 882,696$           947,079$           1,016,243$        1,090,450$        1,168,990$ Tier 2 1,937,815$        2,079,157$        2,230,995$        2,393,905$        2,566,327$ Tier 3 415,449              445,751              478,304              513,230              550,196 Max Hour Rate
Tier 1 368,969$           396,175$           425,406$           456,776$           489,874$ Tier 2 378,855$           406,789$           436,804$           469,014$           503,000$ Tier 3 64,892                69,677                74,818                80,335                86,156 Supply 1 Rate
Tier 1 1,145,024$        1,232,437$        1,326,421$        1,427,334$        1,532,785$ Tier 2 192,410$           207,099$           222,892$           239,850$           257,570$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,185,906$        1,275,881$        1,372,610$        1,476,460$        1,585,166$ Tier 3 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 47,063$              50,621$              54,445$              58,551$              62,853$ Tier 3 1,521,486$        1,636,502$        1,760,142$        1,892,878$        2,031,957$ Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 466,644$           501,824$           539,640$           580,236$           622,804$ Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 3 372,185$           399,099$           427,998$           459,023$           491,928$ Combined Winter Revenue Requirements by Tier
Tier 1 3,740,073$        4,018,147$        4,316,980$        4,637,707$        4,975,326$ Tier 2 5,057,170$        5,431,658$        5,834,071$        6,265,938$        6,721,067$ Tier 3 3,200,751$        3,439,503$        3,696,086$        3,971,509$        4,261,156$ Tier 1 Winter Rate 1.30$                  1.46$                  1.56$                  1.66$                  1.77$                  1.89$ Tier 2 Winter Rate 1.64$                  2.01$                  2.15$                  2.29$                  2.44$                  2.60$ Tier 3 Winter Rate 3.01$                  4.66$                  4.97$                  5.30$                  5.66$                  6.03$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (SFR) DEMAND REDUCTION RATES FOR 30% REDUCTION SFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Summer
Base Rate
Tier 1 1,010,843$        1,085,393$        1,165,494$        1,251,454$        1,342,147$ Tier 2 1,329,732          1,427,799          1,533,171          1,646,247          1,765,552 Tier 3 367,530              394,636              423,760              455,014              487,989 Max Day Rate
Tier 1 664,194$           712,640$           764,683$           820,521$           879,619$ Tier 2 1,959,346          2,102,257          2,255,782          2,420,502          2,594,840 Tier 3 958,249              1,028,143          1,103,227          1,183,785          1,269,048 Max Hour Rate
Tier 1 277,635$           298,106$           320,102$           343,706$           368,611$ Tier 2 383,064              411,309              441,658              474,225              508,588 Tier 3 149,676              160,712              172,570              185,295              198,722 Supply 1 Rate
Tier 1 861,586$           927,361$           998,080$           1,074,013$        1,153,361$ Tier 2 194,548              209,400              225,369              242,515              260,432 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 1,199,082          1,290,057          1,387,861          1,492,865          1,602,778 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 47,586                51,183                55,050                59,202                63,551 Tier 3 1,552,907          1,670,298          1,796,491          1,931,967          2,073,920 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 476,281              512,187              550,784              592,218              635,666 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 379,871              407,341              436,837              468,502              502,086 Combined Summer Revenue Requirements by Tier
Tier 1 2,814,258$        3,023,499$        3,248,358$        3,489,694$        3,743,738$ Tier 2 5,113,358$        5,492,006$        5,898,890$        6,335,556$        6,795,741$ Tier 3 3,884,514$        4,173,317$        4,483,669$        4,816,781$        5,167,432$ Tier 1 Summer Rate 1.30$                  1.46$                  1.56$                  1.66$                  1.77$                  1.89$ Tier 2 Summer Rate 1.64$                  2.01$                  2.15$                  2.29$                  2.44$                  2.60$ Tier 3 Summer Rate 3.66$                  5.54$                  5.91$                  6.30$                  6.72$                  7.16$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 30% REDUCTION MFR FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA1B ‐ MFR ‐ 30% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 156,650 $            168,203$            180,616$            193,937$            207,992$ Max Day Revenue to Recover 140,594               150,848              161,865              173,684              186,194 Max Hour Revenue to Recover 43,615                 46,831                50,286                53,994                57,907 Supply 1 Revenue to Recover 74,889                 80,606                86,752                93,353                100,249 Supply 2 Revenue to Recover 74,620                 80,282                86,368                92,902                99,742 Supply 3 Revenue to Recover 57,923                 62,302                67,009                72,062                77,357 Supply 4 Revenue to Recover 17,235                 18,534                19,931                21,430                23,002 Supply Sustainability Revenue to Recover 15,509                 16,630                17,834                19,127                20,498 Total Allocated Costs 581,033 $           624,235$           670,661$           720,490$           772,942$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 61.9% 96,965$              104,116$            111,800$            120,045$            128,745$ Tier 2 38.1% 59,685                64,087                68,817                73,892                79,247 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 37.9% 53,350$              57,241$              61,422$              65,907$              70,654$ Tier 2 62.1% 87,244                93,607                100,443              107,778              115,540 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 60.5% 26,368$              28,313$              30,402$              32,644$              35,009$ Tier 2 39.5% 17,246                18,518                19,884                21,351                22,898 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 100.0% 74,889$              80,606$              86,752$              93,353$              100,249$ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 1 15.5% 11,566$              12,443$              13,387$              14,399$              15,460$ Tier 2 84.5% 63,054                67,838                72,981                78,503                84,283 Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 57,923                62,302                67,009                72,062                77,357 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 17,235                18,534                19,931                21,430                23,002 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 15,509                16,630                17,834                19,127                20,498 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 30% REDUCTION MFR PROJECTED USAGE (HFC)
Annual 294,904              296,914              298,989              301,120              303,316 Tier 1 182,542              183,787              185,071              186,390              187,749 Tier 2 112,361              113,127              113,918              114,730              115,566 Winter
Tier 1 104,853              105,567              106,305              107,063              107,844 Tier 2 54,469                54,840                55,223                55,617                56,022 Summer
Tier 1 77,690                78,219                78,766                79,327                79,906 Tier 2 57,893                58,287                58,694                59,113                59,544 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 167,343              98,064                82,750                17,467                365,623 70,720
Tier 1 182,542                        167,343              15,199 Tier 2 112,361                        ‐                            82,864                82,750                17,467 294,904                        167,343              98,064                82,750                17,467                365,623 Tier 1 100.0% 15.5% 0.0% 0.0%
Tier 2 0.0% 84.5% 100.0% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 30% REDUCTION MFR Winter
Base Rate
Tier 1 55,697$              59,804$              64,218$              68,954$              73,952$ Tier 2 28,933                31,067                33,360                35,820                38,416 Max Day Rate Seasonality Factor
Tier 1 30,644$              32,879$              35,281$              37,857$              40,584$ Tier 2 1.00 33,795                36,260                38,908                41,749                44,756 Max Hour Rate Seasonality Factor
Tier 1 15,146$              16,263$              17,463$              18,750$              20,109$ Tier 2 1.00 6,681                  7,173                  7,703                  8,270                  8,870 Supply 1 Rate
Tier 1 43,016$              46,300$              49,831$              53,622$              57,584$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 6,643$                7,147$                7,689$                8,271$                8,880$ Tier 2 30,567                32,886                35,379                38,056                40,857 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 28,079                30,202                32,483                34,933                37,500 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 8,355                  8,985                  9,662                  10,388                11,151 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,518                  8,062                  8,645                  9,272                  9,937 Winter Revenue Requirement By Tier
Tier 1 151,147$            162,394$            174,481$            187,454$            201,108$ Tier 2 143,928$            154,634$            166,139$            178,489$            191,486$ Tier 1 Winter Rate 1.30$                  1.44$                  1.54$                  1.64$                  1.75$                  1.86$ Tier 2 Winter Rate 1.87$                  2.64$                  2.82$                  3.01$                  3.21$                  3.42$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐  TIER (MFR) DEMAND REDUCTION RATES FOR 30% REDUCTION MFR Summer
Base Rate
Tier 1 41,268$              44,311$              47,582$              51,091$              54,794$ Tier 2 30,752                33,020                35,456                38,072                40,831 Max Day Rate Seasonality Factor
Tier 1 22,706$              24,362$              26,141$              28,050$              30,070$ Tier 2 1.49 53,449                57,347                61,535                66,028                70,784 Max Hour Rate Seasonality Factor
Tier 1 11,222$              12,050$              12,939$              13,893$              14,900$ Tier 2 1.49 10,566                11,345                12,182                13,080                14,028 Supply 1 Rate
Tier 1 31,873$              34,305$              36,922$              39,730$              42,666$ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 4,922$                5,296$                5,697$                6,128$                6,580$ Tier 2 32,488                34,953                37,602                40,448                43,426 Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 29,844                32,100                34,525                37,129                39,857 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 8,880                  9,549                  10,269                11,042                11,852 Supply Sustainability
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 7,991                  8,568                  9,189                  9,855                  10,561 Summer Revenue Requirement By Tier
Tier 1 111,991$            120,324$            129,281$            138,892$            149,009$ Tier 2 173,970$            186,882$            200,758$            215,654$            231,339$ Tier 1 Summer Rate 1.30$                  1.44$                  1.54$                  1.64$                  1.75$                  1.86$ Tier 2 Summer Rate 2.12$                  3.01$                  3.21$                  3.42$                  3.65$                  3.89$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 30% REDUCTION WA4: Riverside Water Company FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 WA4 ‐ Riverside Irrigators ‐ 30% Reduction
REVENUE TO RECOVER
Base Revenue to Recover 3,766$                4,043$                4,342$                4,662$                5,000$ Max Day Revenue to Recover 6,393                  6,860                  7,360                  7,898                  8,467 Max Hour Revenue to Recover 1,100                  1,181                  1,268                  1,362                  1,460 Supply 1 Revenue to Recover 1,308                  1,408                  1,515                  1,630                  1,751 Supply 2 Revenue to Recover 1,303                  1,402                  1,508                  1,623                  1,742 Supply 3 Revenue to Recover 2,993                  3,219                  3,463                  3,724                  3,997 Supply 4 Revenue to Recover 891                      958                      1,030                  1,107                  1,189 Supply Sustainability Revenue To Recover 705                      756                      811                      870                      932 Total Allocated Costs 18,459 $              19,827$              21,297$              22,875$              24,538$ REVENUE TO RECOVER ‐ BY TIER
Base Rate Use per Tier
Tier 1 38.0% 1,431$                1,537$                1,650$                1,772$                1,900$ Tier 2 51.5% 1,937                  2,080                  2,234                  2,399                  2,572 Tier 3 10.5% 397                      426                      458                      491                      527 Max Day Rate Max Day Extra Capacity per Tier
Tier 1 23.8% 1,522$                1,633$                1,752$                1,880$                2,015$ Tier 2 57.5% 3,673                  3,941                  4,229                  4,538                  4,865 Tier 3 18.7% 1,198                  1,286                  1,379                  1,480                  1,587 Max Hour Rate Max Hour Extra Capacity per Tier
Tier 1 36.3% 399$                   429$                   461$                   494$                   530$ Tier 2 52.2% 574                      616                      662                      710                      762 Tier 3 11.5% 127                      136                      146                      157                      168 Supply 1 Rate SFR Supply 1 Allocation by Tier
Tier 1 90.7% 1,186$                1,277$                1,374$                1,479$                1,588$ Tier 29 . 3 % 122                      131                      141                      152                      163 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate SFR Supply 2 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 100.0% 1,303                  1,402                  1,508                  1,623                  1,742 Tier 30 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate SFR Supply 3 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 25.3% 757                      815                      876                      942                      1,011 Tier 3 74.7% 2,236                  2,405                  2,587                  2,782                  2,986 Supply 4 Rate SFR Supply 4 Allocation by Tier
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 891                      958                      1,030                  1,107                  1,189 Supply Sustainability All to Tier 3
Tier 10 . 0 % ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 20 . 0 % ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 100.0% 705                      756                      811                      870                      932 RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 30% REDUCTION WA4: Riverside Water Company PROJECTED USAGE (HFC)
Annual 6,989                  6,989                  6,989                  6,989                  6,989 Tier 1 2,656                  2,656                  2,656                  2,656                  2,656 Tier 2 3,596                  3,596                  3,596                  3,596                  3,596 Tier 3 737                      737                      737                      737                      737 Winter
Tier 1 1,618                  1,618                  1,618                  1,618                  1,618 Tier 2 1,449                  1,449                  1,449                  1,449                  1,449 Tier 3 296                      296                      296                      296                      296 Summer
Tier 1 1,038                  1,038                  1,038                  1,038                  1,038 Tier 2 2,147                  2,147                  2,147                  2,147                  2,147 Tier 3 440                      440                      440                      440                      440 SUPPLY TIER USAGE (HCF)
Tier Usage (HCF) Supply 1 (HCF) Supply 2 (HCF) Supply 3 (HCF) Supply 4 (HCF) 2,929                             2,209                             4,406                             952                                 10,495 Resilient Supply 3,506
Tier 1 2,656                                            2,656 Tier 2 3,596                                            272                                 2,209                             1,115                             ‐ Tier 3 737                                                3,291                             952 6,989                                           2,929                             2,209                             4,406                             952                                 10,495 Tier 1 90.7% 0.0% 0.0% 0.0%
Tier 2 9.3% 100.0% 25.3% 0.0%
Tier 3 0.0% 0.0% 74.7% 100.0%
RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 30% REDUCTION WA4: Riverside Water Company Winter
Base Rate
Tier 1 872$                   936$                   1,005$                1,079$                1,157$ Tier 2 781                      838                      900                      967                      1,037 Tier 3 159                      171                      184                      197                      212 Max Day Rate
Tier 1 927$                   995$                   1,067$                1,145$                1,228$ Tier 2 1,480                  1,588                  1,704                  1,829                  1,960 Tier 3 274                      294                      315                      338                      363 Max Hour Rate
Tier 1 243$                   261$                   281$                   301$                   323$ Tier 2 231                      248                      267                      286                      307 Tier 3 29                        31                        33                        36                        38 Supply 1 Rate
Tier 1 723$                   778$                   837$                   901$                   967$ Tier 2 49                        53                        57                        61                        66 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 525                      565                      608                      654                      702 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 305                      328                      353                      380                      408 Tier 3 898                      966                      1,039                  1,118                  1,200 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 358                      385                      414                      445                      478 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 283                      304                      326                      349                      375 Winter Revenue Requirement By Tier
Tier 1 2,765$                2,970$                3,190$                3,426$                3,675$ Tier 2 3,371$                3,621$                3,889$                4,176$                4,479$ Tier 3 2,002$                2,151$                2,311$                2,484$                2,665$ Tier 1 Winter Rate 1.32$                  1.71$                  1.84$                  1.97$                  2.12$                  2.27$ Tier 2 Winter Rate 1.54$                  2.33$                  2.50$                  2.68$                  2.88$                  3.09$ Tier 3 Winter Rate 2.46$                  6.76$                  7.27$                  7.81$                  8.39$                  9.00$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model DEMAND REDUCTION RATES
VARIABLE RATES ‐  TIER (WA4) DEMAND REDUCTION RATES FOR 30% REDUCTION WA4: Riverside Water Company Summer
Base Rate
Tier 1 559$                   601$                   645$                   692$                   743$ Tier 2 1,157                  1,242                  1,334                  1,432                  1,536 Tier 3 237                      255                      273                      293                      315 Max Day Rate
Tier 1 595$                   638$                   685$                   735$                   788$ Tier 2 2,193                  2,353                  2,525                  2,709                  2,905 Tier 3 924                      992                      1,064                  1,142                  1,224 Max Hour Rate
Tier 1 156$                   168$                   180$                   193$                   207$ Tier 2 343                      368                      395                      424                      455 Tier 3 98                        105                      113                      121                      130 Supply 1 Rate
Tier 1 464$                   499$                   537$                   578$                   621$ Tier 2 73                        78                        84                        91                        97 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 2 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 778                      837                      901                      969                      1,040 Tier 3 ‐                           ‐                            ‐                            ‐                            ‐ Supply 3 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 452                      486                      523                      563                      604 Tier 3 1,335                  1,436                  1,545                  1,661                  1,784 Supply 4 Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 532                      572                      615                      661                      710 Supply Sustainability Rate
Tier 1 ‐$                         ‐ $                         ‐ $                         ‐ $                         ‐ $ Tier 2 ‐                           ‐                            ‐                            ‐                            ‐ Tier 3 421                      452                      484                      520                      557 Summer Revenue Requirement By Tier
Tier 1 1,774$                1,905$                2,046$                2,198$                2,358$ Tier 2 4,996$                5,365$                5,762$                6,188$                6,637$ Tier 3 3,548$                3,811$                4,095$                4,399$                4,719$ Tier 1 Summer Rate $1.32 1.71$                  1.84$                  1.97$                  2.12$                  2.27$ Tier 2 Summer Rate $1.58 2.33$                  2.50$                  2.68$                  2.88$                  3.09$ Tier 3 Summer Rate $3.17 8.06$                  8.66$                  9.31$                  10.00$                10.73$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 30% REDUCTION
FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
WA6 ‐ Commercial/Industrial
REVENUE TO RECOVER
Base Revenue to Recover 3,174,174$       3,408,268$       3,659,800$       3,929,722$       4,214,511$ Max Day Revenue to Recover 3,149,552          3,379,276          3,626,061          3,890,839          4,171,080 Max Hour Revenue to Recover 888,895             954,437             1,024,860          1,100,432          1,180,172 Supply 1 Revenue to Recover 970,430             1,044,514          1,124,168          1,209,693          1,299,066 Supply 2 Revenue to Recover 966,951             1,040,315          1,119,184          1,203,861          1,292,496 Supply 3 Revenue to Recover 2,758,120          2,966,619          3,190,752          3,431,370          3,683,493 Supply 4 Revenue to Recover 820,658             882,527             949,032             1,020,425          1,095,288 Supply Sustainability Revenue to Recover 347,422             372,546             399,522             428,483             459,198 Total Allocated Costs 13,076,204 $     14,048,503$     15,093,378$     16,214,825$     17,395,303$ PROJECTED USAGE (HFC)
Projected Annual Usage (HCF) 5,330,180          5,407,421          5,485,924          5,565,660          5,646,762 Projected Winter Usage (HCF) 2,894,739          2,936,687          2,979,321          3,022,624          3,066,669 Projected Summer Usage (HCF) 2,435,441          2,470,734          2,506,603          2,543,036          2,580,093 Winter
Base Revenue to Recover 1,723,845.42$ 1,850,978.10$ 1,987,581.07$ 2,134,171.17$ 2,288,835.86$ Max Day Revenue to Recover 1,503,915.22    1,613,608.57    1,731,448.55    1,857,880.23    1,991,695.23 Max Hour Revenue to Recover 424,448.70       455,744.79       489,372.05       525,457.66       563,533.32 Supply 1 Revenue to Recover 527,025.89       567,259.73       610,518.22       656,965.76       705,502.41 Supply 2 Revenue to Recover 525,136.29       564,978.90       607,811.94       653,798.05       701,934.40 Supply 3 Revenue to Recover 1,497,892.55    1,611,125.08    1,732,848.24    1,863,524.08    2,000,448.26 Supply 4 Revenue to Recover 445,686.95       479,286.96       515,404.64       554,177.04       594,834.00 Supply Sustainability Revenue to Recover 188,679.83       202,324.11       216,974.25       232,702.23       249,383.50 Winter Rate 1.58$                 2.36$                 2.50$                 2.65$                 2.81$                 2.97$ Summer
Base Revenue to Recover 1,450,328.86$ 1,557,290.12$ 1,672,218.58$ 1,795,550.63$ 1,925,675.39$ Max Day Revenue to Recover 1,645,636.97    1,765,667.61    1,894,612.04    2,032,959.05    2,179,384.33 Max Hour Revenue to Recover 464,446.70       498,692.08       535,488.15       574,974.58       616,638.36 Supply 1 Revenue to Recover 443,404.53       477,254.69       513,649.44       552,727.59       593,563.15 Supply 2 Revenue to Recover 441,814.74       475,335.75       511,372.56       550,062.49       590,561.27 Supply 3 Revenue to Recover 1,260,227.15    1,355,493.71    1,457,903.31    1,567,846.05    1,683,045.10 Supply 4 Revenue to Recover 374,971.35       403,240.24       433,627.21       466,247.95       500,454.06 Supply Sustainability Revenue to Recover 158,742.66       170,222.08       182,547.71       195,780.28       209,814.82 Summer Rate 1.84$                 2.56$                 2.71$                 2.87$                 3.04$                 3.22$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 30% REDUCTION
WA11 ‐ Landscape
Base Revenue to Recover 327,487$           351,639$           377,590$           405,439$           434,821$ Max Day Revenue to Recover 537,710             576,930             619,062             664,267             712,111 Max Hour Revenue to Recover 95,342               102,372             109,926             118,031             126,584 Supply 1 Revenue to Recover 85,921               92,480               99,533               107,105             115,018 Supply 2 Revenue to Recover 85,613               92,108               99,091               106,588             114,436 Supply 3 Revenue to Recover 327,951             352,742             379,392             408,002             437,981 Supply 4 Revenue to Recover 97,579               104,936             112,843             121,332             130,234 Supply Sustainability Revenue to Recover 59,314               63,603               68,209               73,153               78,397 1,616,917$       1,736,811$       1,865,647$       2,003,919$       2,149,582$ Projected Annual Usage (HCF) 512,685             520,114             527,665             535,334             543,135 Projected Winter Usage (HCF) 254,498             258,186             261,934             265,742             269,614 Projected Summer Usage (HCF) 258,187             261,928             265,731             269,592             273,521 Winter
Base Revenue to Recover 162,565.51$     174,554.65$     187,436.66$     201,261.38$     215,846.64$ Max Day Revenue to Recover 193,687.82       207,815.17       222,991.38       239,275.41       256,508.97 Max Hour Revenue to Recover 34,659.89          37,215.49          39,961.44          42,908.15          46,017.36 Supply 1 Revenue to Recover 42,651.30          45,907.36          49,408.15          53,167.24          57,095.17 Supply 2 Revenue to Recover 42,498.38          45,722.78          49,189.13          52,910.89          56,806.42 Supply 3 Revenue to Recover 162,795.46       175,101.94       188,330.99       202,533.91       217,415.02 Supply 4 Revenue to Recover 48,438.60          52,090.36          56,015.68          60,229.78          64,648.43 Supply Sustainability Revenue to Recover 29,443.63          31,572.83          33,858.97          36,313.45          38,916.53 Winter Rate 1.58$                 2.82$                 2.98$                 3.16$                 3.34$                 3.54$ Summer
Base Revenue to Recover 164,921.77$     177,084.66$     190,153.76$     204,177.57$     218,974.72$ Max Day Revenue to Recover 344,022.34       369,114.84       396,071.12       424,991.67       455,602.38 Max Hour Revenue to Recover 60,682.28          65,156.61          69,964.20          75,123.28          80,566.86 Supply 1 Revenue to Recover 43,269.50          46,572.75          50,124.37          53,937.62          57,922.60 Supply 2 Revenue to Recover 43,114.36          46,385.49          49,902.18          53,677.54          57,629.66 Supply 3 Revenue to Recover 165,155.06       177,639.89       191,061.05       205,468.55       220,565.82 Supply 4 Revenue to Recover 49,140.68          52,845.36          56,827.68          61,102.48          65,585.33 Supply Sustainability Revenue to Recover 29,870.39          32,030.45          34,349.79          36,839.62          39,480.52 Summer Rate 1.84$                 3.49$                 3.69$                 3.91$                 4.14$                 4.37$ RIVERSIDE PUBLIC UTILITIES Appendix J
2023 RPU Water Rate Model Demand Reduction Rates
VARIABLE RATES ‐ NO TIER (Comm/Ind, Landscape, WA2, WA7) Non-Tiered Rates DEMAND REDUCTION RATES FOR 30% REDUCTION
WA2 ‐ Flat Rate
Base Revenue to Recover 18,604$             19,976$             21,450$             23,032$             24,701$ Max Day Revenue to Recover 59,199               63,517               68,155               73,132               78,399 Max Hour Revenue to Recover 5,905                  6,341                  6,809                  7,311                  7,840 Supply 1 Revenue to Recover 3,439                  3,701                  3,984                  4,287                  4,603 Supply 2 Revenue to Recover 3,426                  3,686                  3,966                  4,266                  4,580 Supply 3 Revenue to Recover 24,025               25,841               27,793               29,889               32,085 Supply 4 Revenue to Recover 7,148                  7,687                  8,267                  8,888                  9,540 Supply Sustainability Revenue to Recover 6,530                  7,002                  7,509                  8,054                  8,631 128,276$           137,751$           147,932$           158,858$           170,381$ Projected Annual Usage (HCF) 35,515               35,515               35,515               35,515               35,515 Projected Winter Usage (HCF) 14,354               14,354               14,354               14,354               14,354 Projected Summer Usage (HCF) 21,161               21,161               21,161               21,161               21,161

Riverside City CouncilJune 27, 2023

Riverside City Council
June 27, 2023