9/21/1977 (2) - Laserfiche WebLink

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L-1 IT IS COSTING THE COMPANY TO SERVE HIM. HE STATED THAT THEY DEFINE A STANDARD RESIDENTIAL CUSTOMER AS ONE LIVING IN A SINGLE FAMILY HOUSE, HAVING A MINIMUM WATER METER AND A LOT FRONTAGE OF ABOUT 80'. UNDER THE PROPOSED CHARGES, SUCH A CUSTOMER WOULD PAY $376.20 FOR A WATER CONNECTION AND SEWER WOULD BE INCREASED TO $649.20. MR. MOZIAN CONTINUED THAT UNDER THE PROPOSED POLICY, THEY ARE ASKING EACH CUSTOMER TO PAY FOR THE SEWER PLANT THEY BUILT, FOR LINE EXTENSION, AND FOR PHYSICALLY CONNECTING HIS PROPERTY TO THE LINE. THE WAY THEY WILL SPREAD THESE COSTS DEPENDS UPON THE NEEDS OF THE CUSTOMER. THE STANDARD RESIDENTIAL CUSTOMER USES ABOUT 350 GPD, WHICH IS MULTIPLIED BY 36� PER GALLON FOR PLANT CAPACITY. THE COMPANY WILL CHARGE $2.19 PER FRONT FOOT FOR THE LINE IN FRONT OF THE PROPERTY AND $75.00 FOR THE WATER METER AND SERVICE. MR. MOZIAN POINTED OUT THAT IF SOMEONE BUILT A MULTI -FAMILY UNIT, THEY WOULD BE USING MORE WATER, AND UNDER THE NEW POLICY, THOSE NEEDING MORE WATER WILL PAY MORE. HE FURTHER NOTED THAT SOMEONE.BUILDING ONE HOUSE ON THREE LOTS WOULD HAVE TO PAY FOR THE LINE RUNNING IN FRONT OF ALL THAT FOOTAGE. A 3/4" METER IS STANDARD - A BIGGER METER WILL COST MORE, IN OTHER WORDS, EACH CUSTOMER WILL BE ASSESSED INDIVIDUALLY FOR WHAT HE NEEDS. THE CHARGES FOR THE SEWER OPERATE BASICALLY IN THE SAME WAY. MR. MOZIAN POINTED OUT THAT IF THERE WERE NO CONNECTION CHARGE, THE COST OF THE LINES, ETC., WOULD ALL BE THE UTILITIES COMPANY'S INVESTMENT, BUT WHEN THE CUSTOMER PAYS A CONNECTION CHARGE, THERE IS A REDUCTION OF THE INVESTMENT, WHICH, IN TURN, REDUCES THE EARNINGS BASE FOR THE UTILITY AND, IN THEORY, CAUSES RATES NOT TO GO UP AS MUCH. COMMISSIONER SIEBERT NOTED THAT THE INCREASED CHARGES APPLY ONLY TO NEW CUSTOMERS, AND ASKED IF PROPERTY OWNERS HAVE BEEN NOTIFIED. MR. MOZIAN STATED THAT SOME OF THE PROPERTY OWNERS HAVE BEEN COMMITTED TO A CERTAIN PRICE AND SOME HAVE AN AGREEMENT THAT THEY WILL PAY WHATEVER THE PRICE IS WHEN THEY CONNECT. CHAIRMAN WODTKE NOTED THAT GENERAL DEVELOPMENT UTILITIES HAS GONE INTO A VERY EXPENSIVE EXPANSION AND ASKED WHAT FIGURE WAS USED TO DETERMINE THE POTENTIAL OF THE RETURN ON CAPITAL. MR MOZIAN STATED THAT THE QUESTION OF RETURN DOESN'T ENTER INTO THIS. HE NOTED THAT THE STATE DESIGN CRITERIA FOR BUILDING WATER AND SEWER SYSTEMS CALLS FOR A PLANT WHICH WILL PROVIDE 350 GPD FOR A STANDARD RESIDENTIAL UNIT. IT COSTS ROUGHLY A DOLLAR A GALLON TO BUILD A SEWER AND WATER PLANT, AND THEY ARE ASKING THE CUSTOMER TO PAY 3R OF THAT DOLLAR. 21 Nu 1 MSR SSP 21197