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3. Cost of Service • the unit cost per 1,000 gallons for transmission and treatment related costs. Schedule 7 of Appendix B summarizes the FY 2025 water system costs by function, unit costs, and the calculated bulk water rate. 3.3.2 Bulk Sewer Rates For the sewer system it was determined that treatment including effluent disposal and reclaimed water, and only the portion of the conveyance and collection system costs that are determined to serve all customers are included in the bulk sewer rate calculation. Local collection system gravity sewers and force mains are not used by bulk customers and are therefore excluded from the bulk rate calculation. This methodology recognizes that local collection gravity sewers and force mains are generally not utilized in providing sewer service to bulk customers. Therefore, the portion of conveyance and collection costs allocable to bulk users were determined by an inch -feet analysis22 of the sewer system's gravity sewers and force mains in service which determined that approximately 33% were deemed to provide service to all customers both bulk and retail while approximately 67% are allocable only to retail customers. As such, this portion of conveyance/collection costs are not included in the calculation of bulk sewer rates. The Utility's bulk sewer rate structure includes a billing charge applied per bill, a service availability charge applied per ERU, and a volumetric rate per 1,000 gallons. The calculated FY 2025 billing charge for bulk customers reflect the overall sewer system rate increase of 24.0%. Allocable conveyance and treatment costs to bulk customers reflect approximately 67% of overall non -customer related costs for the sewer is system. As such, the service availability and volumetric rates are stated in terms of a percentage of the proposed FY 2025 retail rates for these components of the bulk sewer rates. Schedule 8 of Appendix B summarizes the FY 2025 sewer system costs by function, unit costs, and the calculated bulk sewer rates. 3.3.3 Proposed FY 2025 Bulk Rates Table 12 summarizes the proposed FY 2025 bulk water and sewer rates with the existing FY 2024 bulk water and sewer rates. Table 12 — Bulk User Rates: Existing and Proposed Description Existing (FY 2024) Proposed (FY 2025) Water: $/kgal) N/A $4.14 Sewer: Billing Charge: $/bill $1.47 $1.82 22 IRCDUS provided an inventory of gravity sewer and force mains and identified segments by length and diameter as allocable to all customers or only retail. a 23