950823X.docx

RATE CALCULATION
Revenue Requirement = $12,761.78  (Exhibit 101, Staff witness R. Smith)
Number of year-round customers = 17
Number of seasonal customers = 10 (per Ms. Rea Fullmer)
Assume seasonal customers provide 6 months of revenue.
Assume seasonal customers pay reconnect fee equal to 3 months of revenue.
Seasonal customer - months = 10 x (6+3) = 90.
10 seasonal customers in terms of full time = 90 / 12 = 7.5.
Total full-time customers = 17 + 7.5 = 24.5
= $520.89/year
Revenue needed per customer = $12,761.78 / 24.5  
= $43.41/month
Round off to $43/month x 12 = $516/year.
Set reconnect fee at 3 months of revenue = 3 x 43 = $129.