DEPARTMENT:
Finance
DEPARTMENT HEAD:
Troy Elliott
COUNCIL DISTRICTS IMPACTED:
City Wide
SUBJECT:
San Antonio Water System (SAWS) proposed modification to the Wholesale Class Water Rates Base Use Definition
SUMMARY:
The proposed Ordinance authorizes the SAWS Board of Trustees to enter into take or pay wholesale water agreements that may not define base use as 100% of Average Annual Consumption.
BACKGROUND INFORMATION:
In addition to serving its own retail customers, SAWS also provides wholesale water supplies to smaller utility systems within this area. Excluding sales to the District Special Project (formerly BexarMet), SAWS recorded revenues of approximately $425,000 from wholesale water sales to the City of Elmendorf and the East Central Special Utility District during its FY 2014.
The proposed ordinance authorizes a modification to the Wholesale Class Water Rates Base Use definition. Currently, for Wholesale Class Water Rates, "The Base Use is defined as 100% of Annual Average Consumption." This volume is used to define the initial block of water for which wholesale water customers are billed. The following table identifies the current monthly volume rates charged to wholesale water customers.
2015
MONTHLY VOLUME CHARGE
RATE PER 100 GALLONS
USAGE BLOCKS
INSIDE CITY LIMITS
OUTSIDE CITY LIMITS
Base*
$0.0845
$0.1098
> 100-125% of Base
0.1269
0.1650
> 125-175% of Base
0.1833
0.2383
> 175% of Base
0.2592
0.3369
*-Base use is defined as 100% of the Average Annual Consumption
The proposed Ordinance would modify the definition of base use to read "Base use is defined as 100% of Average Annual Consumption or as agreed to by the wholesale customer and approved by the SAWS Board of Trustees." SAWS believes that the approval of the definition modification will provide it with more flexibility to renegotiate wholesale agreements with existing customers on a take or pay basis. SAWS will enter into take or pay agreements that wil...
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