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RATE STRUCTURE
Members have agreed (in the Interlocal Contract) to pay Member Charges, which included but are not limited to all Water Supply Rates and Charges, Regional Capital Facilities Charges, dues, assessments and other payments from Members. Cascade Rates and Charges are the same for all Members. Certain components of Member Charges are described below.
Water Supply Rates and Charges. The Board sets rates and charges for delivery of water (called "Demand Share Charges") according to a Rate Calculation Methodology adopted by the Board in accordance with the Interlocal Contract. The Rate Calculation Methodology provides for the definition and calculation of Demand Shares and for a uniform price structure with a commodity charge and fixed charges allocated by Demand Share. Cascade's Demand Share Charge for 2006 is $404,951 per Demand Share.
Regional Capital Facilities Charge (RCFC). Each Member is required to pay RCFCs to Cascade for each new equivalent residential unit connected to that Member's water distribution system. RCFCs are intended to allocate growth costs to those Members that require capacity increases due to growth in customer demand. Any new Member with adequate water supply is required to begin paying RCFCs fifteen years prior to the date that its own supply is expected to be insufficient. Members that lose their independent supply are required to pay an amount equal to the RCFCs allocable to the number of equivalent residential units that can be served by the replacement supply to be provided by Cascade. The RCFC for 2006 is set at $4,648 per new CERU.
Administrative Dues. Each Member is required to pay annual dues to defray part of Cascade's administrative costs, based upon the number of equivalent residential units served by that Member's water system, regardless of water usage or capacity, and whether or not those units are served by water from Cascade. Total dues collected from the Members in any year may not exceed the greater of $1 million or 5 percent of Cascade's annual revenue requirement less debt service. Dues for 2006 are assessed at the rate of $4.25 per CERU.
New Water Surcharge. A new water surcharge is applied by Cascade to all water purchased by a Member that is above the amount that Member was allowed to receive from Seattle (pursuant to a separate, previous agreement with Seattle) prior to the effective date of the Seattle Agreement (as later defined), or to all water purchased by Members that did not previously receive water from Seattle. The new water surcharge is effective through December 31, 2011, and is $0.75 per 100 cubic feet plus recovery of any penalties imposed by Seattle under the Seattle Agreement.
Conservation Program Charge. A conservation program charge is assessed to each Member at a rate of $3.85 per CERU. A Member that does not have a supply commitment from Cascade or a Member with a Supply Commitment but not subject to payment of RCFCs pays 70 percent of the conservation program charge.
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