The LRPC continues to refine a proposed water rate structure for the coming years with the USDA Loan in place. As ex-plained last month, the future rate structure fees will be comprised of (1) an annual surcharge for repayment of the USDA Capital Improvement Loan; (2) a water base rate for a not-to-exceed specified monthly cubic foot allocation; and (3) tiered water fees for monthly cubic foot usage above the base allocation. The primary goals will be to maintain stable and predicta-ble annual revenues to cover all fixed costs while also promoting conservation through usage fees.
To date, the LRPC has analyzed usage from the Meter Study participants and Historical data based on 339 meters. Based on additional meters installed over the past year, we now have 633, an increase in sample size of 87%. Over the next several months, the LRPC will obtain monthly readings for all 633 meters in order to ensure a fair and equitable usage fee structure for 2018. As we progress toward 100% meter installations over the next 2-3 years, the rate structure will likely transition to lower cubic foot base allocations, with an increased percentage of total fees based on usage above the monthly allotment.
We encourage all shareholders to attend our Annual Meeting in June, at which time a summary of the most current rate structure information will be presented, providing further details on what to expect in total water fees with the USDA Loan in place.