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ISSUED BY: Dukku Lee General Manager Effective: 04-03-24 by Resolution No.: 2024-023 Superseding Resolution No.: 2003R-239 Dated: 03-26-24 Dated: 12-16-03 CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.1.1 Anaheim, CA 92805 SCHEDULE W-CA COMMODITY ADJUSTMENT CLAUSE A. APPLICABILITY Applicable to all areas served by the Utility and to all rate schedule commodity charges. B. PURPOSE To provide for the automatic adjustment of the Utility's water rate schedule commodity charges per 100 cubic feet whenever the cost per acre foot of water is increased due to changes in the Orange County Water District (OCWD) pump tax and basin equity assessment; the Metropolitan Water District of Southern California (MWD) acre foot charge for treated and untreated water; fixed charges, such as a readiness charge, a connection charge, or a demand charge; and/or the costs of electricity associated with producing and distributing water. To provide for the automatic adjustment of the Utility's water rate schedule commodity charges per 100 cubic feet to recover expenditures made or proposed within a designated time period, not to exceed one year, to accommodate Federal and/or State mandated rules and regulations pertaining to water quality. To establish the method for determining the cost of water per acre foot and any resulting change to the rate schedule commodity charges (expressed to the nearest $0.001 per 100 cubic feet). C. COST OF PRODUCING AND DISTRIBUTING WATER The cost of water shall be the sum of the percent of groundwater times its total cost per A.F. plus the percent of water purchased times its total costs per A.F. (including appropriate fixed charges). The total cost per A.F. of groundwater is the sum of the OCWD pump tax plus the cost of electricity to pump water per A.F. The total cost per A.F. of purchased water is the MWD price per A.F. for treated or untreated water (including appropriate fixed charges). The cost of distributing water shall include the cost of electricity for the booster pumps. D. AMOUNT OF ADJUSTMENT Previously, the commodity adjustment calculation included an adjustment for the base year 1971-72 cost of water. Effective September 1, 1996, the calculation methodology shall remain the same in all respects with the exception of the base-year calculation. The calculation shall not include a base-year adjustment. Effective September 1, 1995, the Agricultural Customer Class is combined with the General Commercial/Industrial Customer Class, thereby eliminating the Agricultural Commodity Adjustment. The percent of groundwater to be pumped and imported water to be purchased (including fixed charges) established as of July 1 each fiscal year shall apply in any commodity adjustment computation throughout that fiscal year. The amount of the commodity adjustment and the data elements required to compute the commodity adjustment for the most recent changes shall be shown in the COMMODITY ADJUSTMENT SUMMARY section below. ---PAGE BREAK--- ISSUED BY: Dukku Lee General Manager Effective: 04-03-24 by Resolution No.: 2024-023 Superseding Resolution No.: 2003R-239 Dated: 03-26-24 Dated: 12-16-03 CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.1.2 Anaheim, CA 92805 SCHEDULE W-CA COMMODITY ADJUSTMENT CLAUSE E. COST OF WATER QUALITY ADJUSTMENT The cost of the Water Quality Adjustment shall be calculated in accordance with the following formula. The Formula is: a + b + c d (expressed to the nearest $0.001 per 100 cubic feet) The estimated expenditures for water quality improvements for a designated period. An amount equal to five percent of immediately above. Water Quality Improvement Adjustment Account ending balance. The total estimated water sales for a designated period. A Water Quality Adjustment Account shall be maintained by the Department. Entries to this account shall include: An amount equal to water quality expenditures as recorded during the month. Less: An amount equal to revenue billed during the time period that is attributable to the Water Quality Adjustment. F. COST OF WATER REGULATORY ADJUSTMENT The cost of the Water Regulatory Adjustment shall be calculated in accordance with the following formula. The Formula is: a b (expressed to the nearest $0.001 per 100 cubic feet) The estimated expenditures for compliance with water regulatory and/or legislative mandates on water use efficiency, drought resilience, and related measures for a designated period. The total estimated water sales for a designated period. G. APPLICATION OF COMMODITY ADJUSTMENT The commodity charge for all rate schedules shall be adjusted as necessary by the Utilities General Manager to reflect the cost per A.F. of water at that time and to reflect mandated expenditures for water quality improvements. The increased cost of water shall be rounded to the nearest $0.001 per 100 cubic feet and added to the commodity charge for each rate block of each water schedule rate charge. ---PAGE BREAK--- ISSUED BY: Dukku Lee General Manager Effective: 03-01-26 by Resolution No.: N/A Superseding Resolution No.: 2024-023 Dated: N/A Dated: 03-26-24 CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.1.3 Anaheim, CA 92805 SCHEDULE W-CA COMMODITY ADJUSTMENT CLAUSE H. COMMODITY ADJUSTMENT SUMMARY The amount of the commodity adjustment and the data elements required to compute the commodity adjustment for the five most recent changes shall be shown in this section. Note: The Agriculture commodity adjustment was eliminated. The Domestic commodity adjustment applies to all customers. (This table has been simplified to reflect that change.) Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 Percent of Source - Ground Water 27.84% 35.92% 69.14% 80.30% 81.22% - Imported Water 72.16% 64.08% 30.86% 19.70% 18.78% OCWD Pumping Percentage Allowance 77.00% 77.00% 85.00% 85.00% 85.00% OCWD Groundwater (Acre Feet) 16,000 19,600 36,246 42,738 44,111 Purchased Water (MWD) - Treated (Tier 1) Acre Feet 28,200 20,965 6,080 1,566 2,350 Percent 49.07% 38.42% 11.59% 2.94% 4.33% - Treated (Tier 2) Acre Feet - - - - - Percent 0.00% 0.00% 0.00% 0.00% 0.00% - Untreated (Tier 1) Acre Feet 13,265 14,000 10,100 8,919 7,849 Percent 23.09% 25.66% 19.27% 16.76% 14.45% - Untreated (Tier 2) Acre Feet - - - - - Percent 0.00% 0.00% 0.00% 0.00% 0.00% Total Purchased Water (Acre Feet) 41,465 34,965 16,180 10,485 10,199 Total Water (Acre Feet) 57,465 54,565 52,426 53,223 54,310 OCWD Cost of Producing Water ($/Acre Foot) - Replenishment Assessment $507.00 $558.00 $624.00 $688.00 $711.00 - Basin Equity Assessment - - - - - ---PAGE BREAK--- ISSUED BY: Dukku Lee General Manager Effective: 03-01-26 by Resolution No.: N/A Superseding Resolution No.: 2024-023 Dated: N/A Dated: 03-26-24 CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.1.4 Anaheim, CA 92805 SCHEDULE W-CA COMMODITY ADJUSTMENT CLAUSE Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 MWD - Water Supply ($/Acre Foot) - Treated (Tier 1) $1,123.50 $1,176.00 $1,232.50 $1,325.50 $1,461.50 - Treated (Tier 2) $1,165.50 $1,301.50 $1,436.50 - - - Untreated (Tier 1) $788.00 $827.00 $879.00 $907.50 $948.00 - Untreated (Tier 2) $830.00 $952.50 $1,083.00 - - - MWD Connection and Readiness to Serve Charge (Flat $ Cost for System) $2,072,945 $2,339,728 $2,348,690 $3,265,865 $3,500,938 Cost of Purchased Water ($/Acre Foot) $910.48 $907.35 $788.50 $804.90 $842.19 Cost of Purchased Water ($/Hundred Cubic Feet) $2.09 $2.08 $1.81 $1.85 $1.93 I. Electrical Pumping and Distribution Costs: Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 Electricity Cost of Local Wells - Kilowatt hour consumption (all wells) 9,480,086 10,378,870 18,629,795 23,066,929 24,737,989 - Total Electricity cost (all wells) $1,715,334 $1,862,768 $3,638,631 $4,474,312 $5,081,876 Electricity – Booster Pumps - Kilowatt hour consumption (all boosters) 5,039,965 5,772,975 10,242,901 12,023,222 12,312,528 - Total Electricity costs (all boosters) $883,141 $1,020,238 $2,000,554 $2,315,487 $2,496,905 Total Electricity Costs (distribution) $2,598,475 $2,883,006 $5,639,185 $6,789,799 $7,578,781 Electricity Cost per Acre Foot $162.40 $147.09 $155.58 $158.87 $171.81 Electricity Cost ($/Hundred Cubic Feet) $0.37 $0.34 $0.36 $0.36 $0.39 ---PAGE BREAK--- ISSUED BY: Dukku Lee General Manager Effective: 03-01-26 by Resolution No.: N/A Superseding Resolution No.: 2024-023 Dated: N/A Dated: 03-26-24 CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.1.5 Anaheim, CA 92805 SCHEDULE W-CA COMMODITY ADJUSTMENT CLAUSE J. System Loss Factor: Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 Water Distribution 57,465 54,565 52,426 53,223 54,310 Water Sales (Acre Feet) 54,304 51,564 49,385 50,636 51,274 Water Losses (Acre Feet) 3,161 3,001 3,041 2,587 3,036 Water System Loss Factor * 94.50% 94.50% 94.20% 95.14% 94.41% * Loss factor is 1.0 – water losses. K. Water Quality Adjustment: Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 Mandated Quality Expenses $3,252,286 $3,729,059 $4,929,322 $6,339,776 $6,859,845 Water Sales (Hundred Cubic Feet) 23,655,008 22,461,246 21,512,233 22,057,199 22,334,985 Water Quality Adjustment ($/Hundred Cubic Feet) $0.14 $0.17 $0.229 $0.287 $0.307 L. Water Regulatory Adjustment: Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 Mandated Regulatory Expenses $84,000 $513,000 Water Sales (Hundred Cubic Feet) 22,057,199 22,334,985 Water Regulatory Adjustment ($/Hundred Cubic Feet) $0.004 $0.023 ---PAGE BREAK--- ISSUED BY: Dukku Lee General Manager Effective: 03-01-26 by Resolution No.: N/A Superseding Resolution No.: 2024-023 Dated: N/A Dated: 03-26-24 CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.1.6 Anaheim, CA 92805 SCHEDULE W-CA COMMODITY ADJUSTMENT CLAUSE Summary of the Water Commodity Adjustment: Fiscal Year 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 Effective Date: 2/1/2022 3/1/2023 4/3/2024 2/1/2025 3/1/2026 Cost of Purchased Water / $2.21 $2.20 $1.921 $1.945 $2.044 Cost of Electricity * / $0.11 $0.13 $0.264 $0.304 $0.336 Cost of Quality Requirements $0.14 $0.17 $0.229 $0.287 $0.307 Cost of Regulatory Requirements $0.004 $0.023 Total Calculated WCA $2.46 $2.50 $2.414 $2.54 $2.71 Mitigation - - - - - Water Commodity Adjustment $2.46 $2.50 $2.414 $2.54 $2.71