Proposed water rate alternates presented to the Lubbock City Council on July 27, 2017.

1. NEWGEN STRATEGIES AND SOLUTIONS, LLC
Council Feedback
• General concern about affordability associated with
increasing base rate and moving away from current
volumetric structure
• Examine impact of including a volume allotment within the
base rate
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2. NEWGEN STRATEGIES AND SOLUTIONS, LLC
Critical Assumption
• If volumes are included in the base rate, there are less
volumes over which to recover necessary cost
• The greater the volumes in the base rate, the higher the
volumetric rates must be set to recover the same level of
revenue
• The same level of revenue is recovered overall, but as
some customers pay less, others will pay more
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3. NEWGEN STRATEGIES AND SOLUTIONS, LLC
Residential Frequency Distribution
% of Customers at Consumption Levels
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4. NEWGEN STRATEGIES AND SOLUTIONS, LLC
Residential Volumetric Rate Comparison
(1,000 gallons included in Base Rate)
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Current Proposed
Alternate 1,000 gallons
included in base rate
Block Structure Rate Block Structure Rate Block Structure Rate
0‐AWC
(0‐7,000)
$ 4.76 0 – 5,000 $ 3.62 1,000 – 5,000 $ 4.03
AWC to PUA
(7,001 ‐ 47,000)
$ 6.50 5,001 – 10,000 $ 6.27 5,001 – 10,000 $ 6.97
PUA +
(47,001 +)
$ 7.79 10,001 – 30,000 $ 7.52 10,001 – 30,000 $ 8.36
30,001 + $ 7.71 30,001+ $ 8.57
* Volumetric rates are in dollars per 1,000 gallons

5. NEWGEN STRATEGIES AND SOLUTIONS, LLC
Residential Bill Comparison
(1,000 gallons included with ¾ inch Base Rate)
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Usage
(Gallons)
Current
(Assumes AWC of
7,000 gallons)
Proposed
Variance
Proposed vs
Current
Alternate 1,000
gallons included
in base rate
Variance
Alternate vs
Current
1,000 $20.76 $21.62 $0.86 $18.00 $(2.76)
5,000 39.80 36.10 (3.70) 34.12 (5.68)
7,000 49.32 48.64 (0.68) 48.06 (1.26)
10,000 68.82 67.45 (1.37) 68.97 0.15
15,000 101.32 105.05 3.73 110.77 9.45
20,000 133.82 142.65 8.83 152.57 18.75
25,000 166.32 180.25 13.93 194.37 28.05
30,000 198.82 217.85 19.03 236.17 37.35
35,000 231.32 256.40 25.08 279.02 47.70

6. NEWGEN STRATEGIES AND SOLUTIONS, LLC 6
Residential Bill Comparison
(1,000 gallons included in 1 inch Base Rate)
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Usage
(Gallons)
Current
(Assumes AWC of
7,000 gallons)
Proposed
Variance
Proposed vs
Current
Alternate 1,000
gallons included
in base rate
Variance
Alternate vs
Current
1,000 $31.47 $33.68 $2.21 $30.06 $(1.41)
5,000 50.51 48.16 (2.35) 46.18 (4.33)
7,000 60.03 60.70 0.67 60.12 0.09
10,000 79.53 79.51 (0.02) 81.03 1.50
15,000 112.03 117.11 5.08 122.83 10.80
20,000 144.53 154.71 10.18 164.63 20.10
25,000 177.03 192.31 15.28 206.43 29.40
30,000 209.53 229.91 20.38 248.23 38.70
35,000 242.03 268.46 26.43 291.08 49.05