Preliminary Rate Structure Plan
Annual Fees (Due by February 15, 2017)

1. Surcharge/Assessment to cover the income required for USDA loan re-payment on meter (includes meter purchase) and infrastructureimprovements.
2. Base Rate charge for an established not-to-exceed cubic feet/month allocation intended cover all “Fixed/Base Costs” for all Operating/Maintenance expenses, capital costs, and reserves associated with service to customers under average load conditions.

Extra Capacity Fees (Charged as required for usage over the base bi-monthly cubic ft. allocation).

1. These fees are associated with meeting demand rates in excess of the average base use (i.e., variable costs) and will be charged to shareholders as additional usage or  consumption fees
2. These fees should increase as the volume of usage increases based on the added cost to provide that water, which in turn should also promote Conservation
3.The number of rate tiers, cubic feet thresholds within each tier, and rate per each cubic foot will be determined based on the final analysis of the LRPC Meter Usage Studies

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