APPLICATION FOR A

RATE/TARIFF

CHANGE

TABLE OF CONTENTS

SECTION IA - GENERAL INFORMATION 5

 

SECTION IB - MISCELLANEOUS INFORMATION 6

 

SECTION II: OPERATIONAL INFORMATION - WATER 8

 

SECTION III. PLANT & EQUIPMENT INFORMATION - WATER 9

A. CUSTOMER CONTRIBUTIONS 9

B. ORIGINAL COST & DEPRECIATION SCHEDULE - WATER 10

C. DEVELOPER CONTRIBUTIONS - WATER 11

 

SECTION IV - LONG TERM DEBT & EQUITY INFORMATION - WATER 11

A. EQUITY 11

B. RATE OF RETURN 11

C. BANKRUPTCY 11

D. NOTES PAYABLE - WATER 12

E. INVESTED CAPITAL & RETURN - WATER 13

SECTION V - INCOME TAX CALCULATION - WATER 13

SECTION VI - UTILITY INCOME & EXPENSE INFORMATION - WATER 14

A. REVENUE REQUIREMENT 14

B. KNOWN & MEASURABLE 15

SECTION VII - CUSTOMER INFORMATION - WATER 15

NUMBER OF CUSTOMERS 15

SECTION VIII - PRODUCTION & CONSUMPTION INFORMATION - WATER 16

SECTION IX - RATE DESIGN - WATER 17

A. VARIABLE RATE CALCULATIONS 17

B. BASE RATE CALCULATIONS 17

SECTION X - ALTERNATE METHOD OF RATE DESIGN - WATER 18

SECTION II: OPERATIONAL INFORMATION - SEWER 20

SECTION III. PLANT & EQUIPMENT INFORMATION - SEWER 21

A. CUSTOMER CONTRIBUTIONS 21

B. ORIGINAL COST & DEPRECIATION SCHEDULE - SEWER 22

C. DEVELOPER CONTRIBUTIONS - SEWER 23

SECTION IV - LONG TERM DEBT & EQUITY INFORMATION - SEWER 23

A. EQUITY 23

B. RATE OF RETURN 23

C. BANKRUPTCY 23

D. DEBT & EQUITY 24

E. INVESTED CAPITAL & RETURN - SEWER 25

SECTION V - INCOME TAX CALCULATION - SEWER 25

A. REVENUE REQUIREMENT 26

B. KNOWN & MEASURABLE 27

SECTION VII - CUSTOMER INFORMATION - SEWER 27

SECTION VIII - TREATMENT INFORMATION - SEWER 28

SECTION IX - RATE DESIGN - SEWER 29

A. VARIABLE RATE CALCULATIONS 29

B. BASE RATE CALCULATIONS 29

SECTION X - ALTERNATE METHOD OF RATE DESIGN - SEWER 30

AFFIDAVIT 32

NOTICE OF PROPOSED RATE CHANGE 34

Water Tariff Page No. 2 38

Sewer Tariff Page No. 2 39

 

APPLICATION FOR A RATE/TARIFF CHANGE

SECTION IA - GENERAL INFORMATION



Applicant:

Jesse Wood - Temporary Manager

(Individual, Corporation, or Other Legal Entity)
Utility Name:

QMS Environmental Corp

(If different than above)
Legal form of Applicant:
  Individual
  Partnership
  Corporation. Provide Charter Number:
  Sub Chapter-S Corporation
X   Other: Temporary Manager; TCEQ Docket# 2002-0980-PWS-E
Utility Address:

Port Alto Texas 77979

Street Address or Location City State Zip Code
Water / Sewer
County(ies) where services are provided:

Calhoun

 CCN Number(s):

12525 / 20739

Contact Person:

Jesse Wood



Telephone Number:

979-543-0085

Position:

Temporary Manager

 Fax Number:

707-215-0290

Address: 912 Fahrenthold El Campo, TX 77437
Street Address or Location City State Zip Code


If the applicant is a corporation, please provide a copy of the corporation's "Certificate of Account Status" (regarding the payment of franchise taxes) from the State Comptroller's Office. This "Certificate of Account Status" can be obtained from:



Comptroller of Public Accounts, Office Management

P. O. Box 13528

Austin, Texas 78711

1-800-252-5555

or

http://ecpa.cpa.state.tx.us/coa/coaStart.html







SECTION IB - MISCELLANEOUS INFORMATION

Do you serve customers within the corporate limits of a municipality? If No, Go to D.  Yes

x

  No.
If yes, which municipalities?
How many customers are within limits of the municipality?
Have you filed a request to change rates with the municipality?  Yes. No. If no, please explain:

na



_______Yes ___x___ No



If yes, are you current in your payment of the Regulatory Assessment Fee to the Texas Natural Resource Conservation Commission or the predecessor agency, Texas Water Commission, for assessments payable beginning January 1, 1992?

_______Yes _______ No



System Name TNRCC

PWS ID #

 County Rate Increase Applicable?
Sunilandings Utilities 0290056 Calhoun yes


For each of the systems, please provide a copy of the most recent public water system annual inspection report letter from the Texas Natural Resource Conservation Commission and a written explanation detailing how and when you will comply with all noted deficiencies.





Wastewater Treatment Plant Name		 TNRCC Discharge Permit Number

County		 Rate Increase Applicable?
QMS Environmental Corp Calhoun yes

For each of the plants, please provide a copy of the most recent inspection report letter from the Texas Natural Resource Conservation Commission and a written explanation detailing how and when you will comply with all noted deficiencies.

INFORMATION REQUIRED

FOR A

WATER RATE/TARIFF CHANGE

SECTION II: OPERATIONAL INFORMATION - WATER



MANAGER (or owner if services are routinely provided to the utility)
Name:

Jesse Wood

 Relationship to owner:
Short job description:

Maintain facility, billing, & customer relations.

Approximate number of hours per week this person works for the company:
Salary:

$250

 (  ) Hourly - (   ) Weekly - (X ) Monthly - (   ) Annual
EMPLOYEES
Name: Relationship to owner:
Short job description:
Approximate number of hours per week this person works for the company:
Salary: (  ) Hourly - (   ) Weekly - (  ) Monthly - (   ) Annual
Name: Relationship to owner:
Short job description:
Approximate number of hours per week this person works for the company:
Salary: (  ) Hourly - (   ) Weekly - (   ) Monthly - (   ) Annual
Contract Services (attach additional sheets if necessary)
Name:

Brad Ryan

 Relationship to owner:

None

Short job description:

Maintain Facility, chemical treatment, water samples.

Approximate number of hours per week this person works for the company:
Amount paid for services:$300 (   ) Hourly - (   ) Weekly - (X ) Monthly - (   ) Annual
Please provide the names and classifications of the utility's certified operators:
Certified Operator's Name / Classification Certified Operator's Name / Classification
Jesse Wood "D"
Brad Ryan "C"

-Attach additional sheet(s) if necessary-

SECTION III. PLANT & EQUIPMENT INFORMATION - WATER

If any of the items included in your plant and equipment were 100% financed with customer contributions, assessments, surcharges, extension fees, etc., you may not include depreciation or return on those items in your cost of service. However, if those customer contributions did not cover the entire cost of the asset, you may include the amount that the utility paid for. Please list below all items that were funded either all or in part by customer contributions and indicate amount that the customers contributed for each item.

Table III. A.





Item

[A]



Date of installation

[B]





Total Cost

[C]

 Amount of Customer Contribution

[D]



Difference

[E]

= [C] - [D]

NONE
- Attach additional sheet(s) if necessary -


If any amount in this column is greater than zero, enter that item in the appropriate category in Table III. B.

We have no original cost for anything except the items below. We were asked by the TCEQ to take over this Utility. We have searched for this information and can find none.



Table III. B.

[A] [B] [C] [D] Depreciation




Item

Date of

Installation

 Service Life (yrs) Original Cost when installed ($) Years in Service [E] = [D]/[C]

Annual

($)

 [F]

Accumulated

($)

 [G] = [D]-[F]

Net Book Value

($)

* ** Yrs Mos Days
  Land n/a
  Wells 50
  Well Pumps:
     5 hp or less 5
     greater than 5 hp 10
  Booster Pumps:
     5 hp or less 5
     greater than 5 hp 10
  Chlorinators 10
  Structures:
     Wood 15
     Masonry 30
  Storage Tanks 50
  Pressure Tanks 50
  Distribution System

   (mains and lines)

 50 See note above
  Meters and Service

   (taps not covered

   by fees)

 12/20/02 20 438 0 1 12 22 0 438
  Office Equipment 10
  Vehicles 5
  Shop Tools 15
  Heavy Equipment

 10
  Fencing 20
  Other: (Please list)
Total

 *  TNRCC Suggested Service Life ** Other Service Life

Enter this number in Table VI. A., Line [O], Column If [F] is greater than [D], enter the total for [D]

Enter this number in Table IV. E., Line [A]

-Attach additional sheet(s) if necessary-





C. DEVELOPER CONTRIBUTIONS - WATER

If any of the Items listed in the Depreciation Schedule were contributed by a developer, please list those items and the associated cost below.

Table III. C.





Item		 Date of installation or Contribution



Total Cost		 Amount of Developer Contribution

Net Book Value (from Table III. B.)
NONE
Total

Insert this amount in Table IV. E., Line [E]



- Attach additional sheet(s) if necessary -









SECTION IV - LONG TERM DEBT & EQUITY INFORMATION - WATER



How much equity or total capital does the company have in the utility? N/A Enter also in Table IV. D., Box below



What rate of return (profit) on investment in plant (equity) is expected? __0__%

Enter also in Table IV. D., Box below



 

Has the utility or utility owner filed bankruptcy within the last seven years? _____ YES __x__ NO



If YES, explain status of applicant at this time.



List the following information concerning debt and equity of the utility and attach copies of notes payable:

 







Table IV. D.

[A]



Name of Bank/Lender

 [B]



Date of Issue

 [C]



Date of Maturity

 [D]

Original Amount of Loan

 [E]

Outstanding or Unpaid Balance -

End of Test Year

 [F]



Interest Rate

[G]



Weighted Average

[E]÷ *[F]

Part 1 - Debt
Farmers Transport Inc. 12/02 12/04 $4,160 $4,160

12%

12%

(See Attached Note) $ $

%

%

$ $ % %
$ $ % %
$ $ % %
Total $ 4,160 $ 4,160 12%
Part 2 - Investment/Equity $
Total Debt & Equity $ 4,160
Rate of Return:



0%

Total amount of original loans

Total amount of the outstanding balance on the loans

Equity in the utility - From Section IV. A.

Return on Equity - From Section IV. B.

Total of +

Total weighted average of debt - To Table V, Line [C]

Weighted average of Investment/Equity ÷ *

Sum of + - To Table IV. E., Line [G]



Table IV. E.

Net Book Value - From Table III. B., Box [A] $
Working cash allowance -

(Amount From Table VI. A., Line [L] Column , Box (÷ 8)

 [B] $ NA
Materials and supplies [C] $

Subtotal - Sum of [A] thru [C]

[D]

 $
Developer Contributions - From Table III. C., Box [E] $

Total invested capital [D] - [E]

 [F] $
Rate of return - From Table IV. D., Box [G]

%

Return/Interest - If [F] is greater than -0-, then enter [F] * [G]. If [F] is less than -0-, enter -0-. Enter this amount in Table V., Line [A] and Table VI. A., Line [Q], Column [H] $








SECTION V - INCOME TAX CALCULATION - WATER



Use the following table to determine the amount of income tax that can be included in your revenue requirement.Table V.

Return - From Table IV. E., Line [H] [A] $ NA
Interest Calculation
Total Invested Capital - From Table IV. E., Line [F] [B] $
Weighted Cost of Debt Capital - Percentage From Table IV. D., Box [C]

%

Interest [B]*[C]

 [D] $

Taxable Income [A] - [D]

 [E] $

Enter Income Tax from Tax Table (Appendix A)

 [F] $

To Table VI. A., Line [P], Column

SECTION VI - UTILITY INCOME & EXPENSE INFORMATION - WATER

Please provide the following information regarding the cost to the utility of providing water utility service over your selected twelve month "test year."

Note 1 - Instead of using the percentages listed, you may take the Total Cost and multiply it by 67% to determine the fixed portion and 33% for the variable portion.

TABLE VI. A.

Test Year _7/ 26_02_ to _12/_31/_02



Line		 5 Month

"test year" per books

 Known and Measurable Changes Revenue Requirement for next yr % of that is fixed ( Note 1)



Fixed Expenses

(Note 1)

 Variable

Expenses

(Note 1)

Rec. Act.
=+ =(*)/100 =-
 Salaries and Wages [A] 0 50 0 0
 Contract Labor [B] 2,650 3,950 6600 90 5940 660
 Purchased water [C] 0 0 0 0
 Chemicals for treatment [D] 113 187 300 0 0 300
 Utilities (electricity) [E] 670 530 1200 0 0 1200
 Repairs/maintenance/supplies (see Attached) [F] 898 5,102 6000 50 3000 3000
 Office expenses [G] 99 201 300 50 150 150
 Accounting & Legal fees [H] 500 700 1200 100 1200 0
 Insurance [I] unknown 100 - -
 Rate case expense [J] 0 46 46 100 46 0
 Miscellaneous [K] 0 50 0 0

Subtotal - Sum of Line [A] thru Line [K]

[L]

 4,930 10,716 $15,646 $10,336 $5,310
 Payroll Taxes [M] 0 50
 Property and other taxes [N] unknown 100
 Annual Depreciation and Amortization - From Table [O] - 100
Income Taxes - From Table V, Line [F] [P] - 100
Return - From Table IV. E., Line [H] [Q] 100

Subtotal - Sum of Line [L] thru Line [Q]

[R]
Other Revenues [S] 0 100
Total Cost = Line [L] + Line [R] - Line [S] [T] 4,930 10,716

$15,646

$10,336

5,310

Alternative Allocation between Fixed and [U]

67

Divide this amount by 8 and enter the result in Table IV. E., Line [B] To Table X. A., Line [D] To Table IX. B., Line [A] To Table IX. A., Line [A]

  • KNOWN & MEASURABLE

If you listed anything in TABLE VI. A. above as an increase/decrease expected in the next 12 months, please provide a short explanation by item why there will be a change and how you projected the cost. Changes in cost must be known and measurable and supported by invoices or other documentation.

See attached document same as Table VI, A. (f)
The test year figures are for 5 months of being Temporary Manager only
Therefore most of the known changes reflect the requirements for a year

-Attach additional sheet(s) or a separate listing for sewer service if necessary-







SECTION VII - CUSTOMER INFORMATION - WATER



NUMBER OF CUSTOMERS

How many customers (active connections) did you have at the beginning and at the end of the twelve month test year?

TABLE VII



Connection Type

 Beginning of period



End of period

Equivalency

Factor

 Meter Equivalents

=*

Non-Metered Connections:
   Residential [A] 1
   Commercial [B] 1
   Standby [C] 1
Metered Connections:
   " x ¾" [D] 1
¾" [E] 27 25 1.5 37
   1" [F] 2.5
   1½" [G] 5
   2"780 [H] 8
   3" [I] 15
   Other: [J]
Total [K] 27 25

37



To Table IX. B., Line [B] AND Table X. A., Line [F]



SECTION VIII - PRODUCTION & CONSUMPTION INFORMATION - WATER



Please provide the following information regarding water utility operations over your selected twelve month "test year".

Table VIII

Total number of gallons pumped

(total master meter reading for the year)



[A]		 No meter- Est of 718,000 gallons
Total number of gallons purchased from another source for sale to customers (if any)

[B]		 0 gallons
Total number of gallons provided to customers [C]=[A]+[B] [C] 718,000 gallons
Total number of gallons billed to your customers

(total customer consumption)



[D]		 711,000 gallons
System losses: ([C] - [D]) x 100% = [E]

[C]



[E]		 7,000 1%
Source of Purchased water


To Table IX. A., Line [B] and Table X. A., Line [B]











There was no master meter installed on this system until we installed one recently.

SECTION IX - RATE DESIGN - WATER

Table IX. A.

Instructions

Total Variable Costs [A] $5,310 From Table VI. A., Line [T], Box or Line [U], Box
Total # of Gallons Billed to Customers [B] 711,000 From Table VIII, Line [B]
Total # of 1,000 Gallons billed [C] 711 Divide Line [B] by 1,000
Variable Cost per 1,000 gallons [D] 7.47 Divide Line [A] by Line [C]

Transfer to Table IX. B., Lines [E] through [J], Box



Table IX. B.

No master meter. Customer meters never read before Sept

# of 1000 gallons in base bill

Variable cost per 1,000 gals

Variable cost to be added to base rate



Total base rate per meter size

 =* =+
Total fixed costs -

From Table VI. A., Line [T], Box or Line [U], Box

[A] $10,336
Total meter equivalents at end of test year - From Table VII,

Line [K], Box

[B] 37
Base charge per meter equivalent or for each unmetered connection [A]÷[B] and then divide by 12 [C] $23.28
Base charge per meter size
" x ¾" or unmetered Multiply [C] by 1 [D]
¾" Multiply [C] by 1.5 [E] 34.92 3 7.47 22.41 57.33

   1" Multiply [C] by 2.5 [F]
   1½" Multiply [C] by 5.0 [G]
   2" Multiply [C] by 8.0 [H]
   3" Multiply [C] by 15.0 [I]
   Other: [J]


From Table IX. A., Line [D]

SECTION X - ALTERNATE METHOD OF RATE DESIGN - WATER



After you have performed the calculations in SECTION IX, you may find that the cost per 1,000 gallons is not what you think your customers will approve. If that is the case, then the following will allow you to calculate a rate structure that still recovers your revenue requirement, but with rates that you think may be more appropriate for your customers.

Table X. A.

Cost per 1,000 gallons [A] This is the rate that you think is appropriate

Enter in Table X. B., Column , Lines [B] through [H]

Total # of 1,000 Gallons billed [B] From Table IX. A., Line [C]
Total Cost to be recovered through gallonage charge [C] Multiply Line [A] times Line [B]
Total Revenue Requirement [D] From Table VI. A., Line [T] Box
Total to be recovered through base rate [E] Subtract Line [C] from Line [D]
Total number of meter equivalents [F] From Table VII, Line [K], Box
Base rate per meter equivalent [G] Divide Line [E] by Line [F] & then divide by 12months Enter this in Table X. B, Line [A] Column


Table X. B.
# of 1000 gallons in base bill

Variable cost per 1,000 gals

Variable cost added to base

Total base bill per meter size

 =* =+
Base charge per meter equivalent or for each unmetered connection From Table X. A, Line [G] [A]
Base rate per meter size
" x ¾" or unmetered Multiply [A] by 1 [B]
¾" Multiply [A] by 1.5 [C]
   1" Multiply [A] by 2.5 [D]
   1½" Multiply [A] by 5.0 [E]
   2" Multiply [A] by 8.0 [F]
   3" Multiply [A] by 15.0 [G]


INFORMATION REQUIRED

FOR A

SEWER RATE/TARIFF CHANGE

SECTION II: OPERATIONAL INFORMATION - SEWER



MANAGER (or owner if services are routinely provided to the utility)
Name:

Jesse Wood

 Relationship to owner:
Short job description:

Maintain facility, billing, & customer relations.

Approximate number of hours per week this person works for the company:
Salary:

$250

 (  ) Hourly - (   ) Weekly - ( X ) Monthly - (   ) Annual
EMPLOYEES
Name: Relationship to owner:
Short job description:
Approximate number of hours per week this person works for the company:
Salary: (  ) Hourly - (   ) Weekly - (   ) Monthly - (   ) Annual
Name: Relationship to owner:
Short job description:
Approximate number of hours per week this person works for the company:
Salary: (  ) Hourly - (   ) Weekly - (   ) Monthly - (   ) Annual
Contract Services (attach additional sheets if necessary)
Name:

Brad Ryan

 Relationship to owner:

none

Short job description:

Maintain facility, chemical treatment, take water samples.

Approximate number of hours per week this person works for the company:
Amount paid for services: $300 (   ) Hourly - (   ) Weekly - ( X ) Monthly - (   ) Annual
Please provide the names and classifications of the utility's certified operators:
Certified Operator's Name / Classification Certified Operator's Name / Classification
Brad Ryan "C"

-Attach additional sheet(s) if necessary-

SECTION III. PLANT & EQUIPMENT INFORMATION - SEWER

If any of the items included in your plant and equipment were 100% financed with customer contributions, assessments, surcharges, extension fees, etc., you may not include depreciation or return on those items in your cost of service. However, if those customer contributions did not cover the entire cost of the asset, you may include the amount that the utility paid for. Please list below all items that were funded either all or in part by customer contributions and indicate amount that the customers contributed for each item.

Table III. A.





Item

[A]



Date of installation

[B]





Total Cost

[C]

 Amount of Customer Contribution

[D]





Difference

[E] = [C] - [D]

NONE
- Attach additional sheet(s) if necessary -


If any amount in this column is greater than zero, enter that item in the appropriate category in Table III. B.

We have no original cost for anything except the items below. We were asked by the TCEQ to take over this Utility and have searched for this information and can find none.

Round your figures to the nearest dollar. Figures should be computed as of the end of the "test year."

Table III. B.

[A] [B] [C] [D] Depreciation




Item

Date of

Installation

 Service Life (yrs) Original Cost when installed ($) Years in Service [E] = [D]/[C]

Annual

($)

 [F]

Accumulated

($)

 [G] = [D]-[F]

Net Book Value

($)

* ** Yrs Mos Days
  Land n/a
Collection Sewers
     Gravity 50
Force 50
Pumping Equipment 11/30/02 5 4707 1 941 0 4707
Treatment & Disposal Equipment 25
  Structures:
     Wood 1 15
     Masonry 30
  Plant Sewers 1 50
  Outfall sewer lines 50
Laboratory Equipment 10
  Meters and Service

   (taps not covered

   by fees)

 20 See Notes above
  Office Equipment 10
  Vehicles 5
  Shop Tools 15
  Heavy Equipment

 10
  Fencing 20
  Other: (Please list)
Total

4707

941

0

4707

 *  TNRCC Suggested Service Life ** Other Service Life

Enter this number in Table VI. A., Line [O], Column If [F] is greater than [D], enter the total for [D] Enter this number in Table IV. E., Line [A]


-Attach additional sheet(s) if necessary-

C. DEVELOPER CONTRIBUTIONS - SEWER

If any of the Items listed in the Depreciation Schedule were contributed by a developer, please list those items and the associated cost below.

Table III. C.





Item		 Date of installation or Contribution



Total Cost		 Amount of Developer Contribution

Net Book Value (from Table III. B.)
none
Total

Insert this amount in Table IV. E., Line [E]



- Attach additional sheet(s) if necessary -









SECTION IV - LONG TERM DEBT & EQUITY INFORMATION - SEWER



How much equity or total capital does the company have in the utility? N/A Table IV. D., Box below



What rate of return (profit) on investment in plant (equity) is expected? __0____%

Enter also in Table IV. D., Box below

 

Has the utility or utility owner filed bankruptcy within the last seven years? _____ YES ___X__ NO



If YES, explain status of applicant at this time.



List the following information concerning debt and equity of the utility and attach copies of notes payable:

 

Table IV. D. - SEWER

[A]



Name of Bank/Lender

 [B]



Date of Issue

 [C]



Date of Maturity

 [D]

Original Amount of Loan

 [E]

Outstanding or Unpaid Balance -

End of Test Year

 [F]



Interest Rate

[G]



Weighted Average

[E]÷ *[F]

Part 1 - Debt
Farmers Transport Inc. 12/02 12/04 $20,625 $20,625

12%

12%

(See Attached Note) $ $

%

%

$ $ % %
$ $ % %
$ $ % %
Total $ 20,625 $20,625 12%
Part 2 - Investment/Equity
Total Debt & Equity $20,625
Rate of Return:



0%

Total amount of original loans

Total amount of the outstanding balance on the loans

Equity in the utility - From Section IV. A.

Return on Equity - From Section IV. B.

Total of +

Total weighted average of debt - To Table V, Line [C]

Weighted average of Investment/Equity ÷ *

Sum of + - To Table IV. E., Line [G]



Table IV. E.

Net Book Value - From Table III. B., Box [A] $n/a
Working cash allowance -

(Amount From Table VI. A., Line [L] Column , Box (÷ 8)

 [B] $0
Materials and supplies [C] $

Subtotal - Sum of [A] thru [C]

[D]

 $0
Developer Contributions - From Table III. C., Box [E] $

Total invested capital [D] - [E]

 [F] $0
Rate of return - From Table IV. D., Box [G]

0%

Return/Interest - If [F] is greater than -0-, then enter [F] * [G]. If [F] is less than -0-, enter -0-. Enter this amount in Table V., Line [A] and Table VI. A., Line [Q], Column [H] $0








SECTION V - INCOME TAX CALCULATION - SEWER

Use the following table to determine the amount of income tax that can be included in your revenue requirement.

Table V.

Return - From Table IV. E., Line [H] [A] $n/a
Interest Calculation
Total Invested Capital - From Table IV. E., Line [F] [B] $
Weighted Cost of Debt Capital - Percentage From Table IV. D., Box [C]

%

Interest [B]*[C]

 [D] $

Taxable Income [A] - [D]

 [E] $

Enter Income Tax from Tax Table (Appendix A)

 [F] $

To Table VI. A., Line [P], Column

SECTION VI - UTILITY INCOME & EXPENSE INFORMATION - SEWER

Please provide the following information regarding the cost to the utility of providing sewer utility service over your selected twelve month "test year." Note 1 - Instead of using the percentages listed, you may take the Total Cost and multiply it by 67% to determine the fixed portion and 33% for the variable portion.TABLE VI. A.
Test Year _7_/_26/_02 to 12_/_31/_02





Line		 5 Month

"test year" per books

 Known and Measurable Changes Revenue Requirement for next yr % of that is fixed ( Note 1)



Fixed Expenses

Variable

Expenses

Item Rec. Act.
=+ =(*)/1 =-
 Salaries and Wages [A] 0 50
 Contract Labor [B] 2,875 3,725 6,600 90
 Purchased Sewer Service [C] 0 0
 Chemicals for treatment [D] 352 248 600 0
 Utilities (electricity) [E] 1,288 1,112 2400 0
 Repairs/maintenance/supplies (See attached) [F] 11,043 0 11,043 50
 Office expenses [G] 100 0 100 50
 Accounting & Legal fees [H] 500 700 1,200 100
 Insurance [I] 0 100
 Rate case expense [J] 100
 Miscellaneous (equipment rental & samples) [K] 1,140 0 1,140 50

Subtotal - Sum of Line [A] thru Line [K]

[L]

23,083

 Payroll Taxes [M] 50
 Property and other taxes [N] 100
 Annual Depreciation and Amortization - From Table III. B., Box [O] 100
Income Taxes - From Table V, Line [F] [P] 100
Return - From Table IV. E., Line [H] [Q] 100

Subtotal - Sum of Line [L] thru Line [Q]

[R]
Other Revenues [S] 100
Total Cost = Line [L] + Line [R] - Line [S] [T]

23,083

Alternative Allocation between Fixed and Variable [Note 1] [U]

23,083

67

15,466

7,617

Divide this amount by 8 and enter the result in Table IV. E., Line [B] To Table X. A., Line [D] To Table IX. B., Line [A] To Table IX. A., Line [A]
  • KNOWN & MEASURABLE

If you listed anything in TABLE VI. A. above as an increase/decrease expected in the next 12 months, please provide a short explanation by item why there will be a change and how you projected the cost. Changes in cost must be known and measurable and supported by invoices or other documentation.

THE TEST PERIOD WAS FOR 5 MONTHS AND THE INCREASES ARE TO EXTEND THE AMOUNTS FOR A
12 MONTH PERIOD.

-Attach additional sheet(s) or a separate listing for sewer service if necessary-









SECTION VII - CUSTOMER INFORMATION - SEWER



NUMBER OF CUSTOMERS

How many customers (active connections) did you have at the beginning and at the end of the twelve month test year?

TABLE VII



Connection Type

 Beginning of period



End of period

Equivalency

Factor

 Meter Equivalents

=*

Non-Metered Connections:
   Residential [A] 1
   Commercial [B] 1
   Standby [C] 1
Metered Water Connection:
   " x ¾" [D] 1
¾" [E] 30 29 1.5 44
   1" [F] 2.5
   1½" [G] 5
   2" [H] 8
   3" [I] 15
   Other: [J]
Total [K]

44



To Table IX. B., Line [B] AND Table X. A., Line [F]



SECTION VIII - TREATMENT INFORMATION - SEWER



Please provide the following information regarding sewer utility operations over your selected twelve month "test year".

Table VIII

Total number of gallons treated NO METER, USED GALLONS

(total master meter reading for the year) OF WATER BILLED



[A]		 711,000 gallons
Total number of gallons treated by another source for sale to customers (if any)

[B]		 gallons
Total number of gallons treated [C] = [A] + [B]

[C]		 711,000 gallons
Source of Purchased Treatment


To Table IX. A., Line [B] and Table X. A., Line [B]



SECTION IX - RATE DESIGN - SEWER

Table IX. A.

Instructions

Total Variable Costs [A] $ 7,617 From Table VI. A., Line [T], Box or Line [U], Box
Total # of Gallons Treated [B] 711,000 From Table VIII, Line [B]
Total # of 1,000 Gallons treated [C] 711 Divide Line [B] by 1,000
Variable Cost per 1,000 gallons [D] $ 10.71 Divide Line [A] by Line [C]

Transfer to Table IX. B., Lines [E] through [J], Box



Table IX. B.



# of 1000 gallons in base bill

Variable cost per 1,000 gals

Variable cost to be added to base rate



Total base rate per meter size

 =* =+
Total fixed costs -

From Table VI. A., Line [T],

Box

[A] $ 15,466
Total meter equivalents at end of test year - From Table VII,

Line [K], Box

[B] 44
Base charge per meter equivalent or for each unmetered connection [A]÷[B] and then divide by 12 [C] $ 29.29
Base charge per meter size
" x ¾" or unmetered Multiply [C] by 1 [D]
¾" Multiply [C] by 1.5 [E] 43.94 0 (flat rate) 10.71 0 43.94
   1" Multiply [C] by 2.5 [F]
   1½" Multiply [C] by 5.0 [G]
   2" Multiply [C] by 8.0 [H]
   3" Multiply [C] by 15.0 [I]
   Other: [J] 43.94 0 10.71 0 43.94


From Table IX. A., Line [D]

SECTION X - ALTERNATE METHOD OF RATE DESIGN - SEWER



After you have performed the calculations in SECTION IX, you may find that the cost per 1,000 gallons is not what you think your customers will approve. If that is the case, then the following will allow you to calculate a rate structure that still recovers your revenue requirement, but with rates that you think may be more appropriate for your customers.

Table X. A.

Cost per 1,000 gallons [A] $ 0 (flat rate system) This is the rate that you think is appropriate
Total # of 1,000 Gallons billed [B] 711 From Table IX. A., Line [C]
Total Cost to be recovered through gallonage charge [C] $ 0 Multiply Line [A] times Line [B]
Total Revenue Requirement [D] $23,083 From Table VI. A., Line [T] Box
Total to be recovered through base rate [E] $23,083 Subtract Line [C] from Line [D]
Total number of meter equivalents [F] 44 From Table VII, Line [K], Box
Base rate per meter equivalent [G] $43.72 Divide Line [E] by Line [F] & then divide by 12months Enter this in Table X. B, Line [A] Column


Table X. B.
# of 1000 gallons in base bill

Variable cost per 1,000 gals

Variable cost added to base

Total base bill per meter size

 =* =+
Base charge per meter equivalent or for each unmetered connection From Table X. A, Line [G] [A]
Base rate per meter size
" x ¾" or unmetered Multiply [A] by 1 [B]
¾" Multiply [A] by 1.5 [C] 65.58 0 (flat rate) 10.71 0 65.58
   1" Multiply [A] by 2.5 [D]
   1½" Multiply [A] by 5.0 [E]
   2" Multiply [A] by 8.0 [F]
   3" Multiply [A] by 15.0 [G]
   Other: [H]

From Table X. A., Line [A]





AFFIDAVIT



WATER &/OR SEWER



RATE/TARIFF CHANGE

AFFIDAVIT







STATE OF TEXAS



COUNTY OF ______________________







I, _________________________________, being duly sworn, file this NOTICE OF PROPOSED RATE CHANGE as ______________________ (indicate relationship to Utility, that is, owner, member of partnership, title as officer of corporation, or other authorized representative of Utility); that, in such capacity, I am qualified and authorized to file and verify such NOTICE; and that all statements made and matters set forth herein are true and correct.



I further represent that a copy of the attached notice was provided by __________________________ to

(mail or hand delivery)

each customer or other affected party on or about ________________, 20____.





______________________________________

Affiant (Utility's Authorized Representative)





If the Affiant to this form is any person other than the sole owner, partner, officer of the Utility, or its attorney, a properly verified Power of Attorney must be enclosed.



Subscribed and sworn to before me this the __________________ day of _____________________, 20 , to certify which witness my hand and seal of office.





__________________________________

NOTARY PUBLIC IN AND FOR THE

STATE OF TEXAS



SEAL ___________________________________

PRINT OR TYPE NAME OF NOTARY 



MY COMMISSION EXPIRES ________



NOTICE OF RATE/TARIFF CHANGE



TO BE PROVIDED TO CUSTOMERS

NOTICE OF PROPOSED RATE CHANGE

Water / Sewer

QMS Environmental / Sunilandings Utilities Inc. 12525 / 20739

Company Name

 CCN Number(s)


has submitted a rate change application to the Texas Natural Resource Conservation Commission (Commission). The proposed rates listed on the next page will apply to service received after the effective date provided below. If the Commission receives protests to the proposed increase from 10 percent of the ratepayers or from any affected municipality before the 91st day after the proposed effective date, a public hearing will be scheduled to determine if the proposed rates are reasonable. Protests should be mailed to:



Texas Natural Resource Conservation Commission

Water Permits & Resource Management Division

Utilities & Districts Section, MC 153

P. O. Box 13087

Austin, Texas 78711-3087



Unless protests are received from 10 percent of the ratepayers or the Commission staff requests a hearing, no hearing will be held and rates will be effective as proposed. Please read the following information carefully:

Subdivisions or Systems Affected by Rate Change

912 Fahrenthold El Campo TX 77437 543-0085
Company Address City State Zip Telephone
Water: $13,231 Sewer: $20,323 03-29-03
Annual Revenue Increase Date Customer Notice Mailed
unknown 1st of each month
Date of Last Rate Change Date Meters Typically Read


EFFECTIVE DATE OF PROPOSED INCREASE: ______ June 1, 2003 __________________



BILLING COMPARISON

Water: Existing 10,000 gallons: $ 19.75 /mo Existing 30,000 gallons: $ 54.75 /mo
Proposed 10,000 gallons: $ 69.58 /mo Proposed 30,000 gallons: $ 104.58 /mo
Sewer: Existing 10,000 gallons: $ 7.50 /mo Proposed 30,000 gallons: $ 65.58/mo


The proposed rates will apply to all service rendered after the effective date and will be reflected on the bill you receive approximately 30 to 45 days after the effective date.



In the event that the application is set for hearing, the specific rates requested by the utility may be decreased or increased by order of the Commission. If the Commission orders a lower rate to be set, the utility may be ordered to refund or credit against future bills all sums collected during the pendency of the rate proceeding in excess of the rate finally ordered plus interest. You may inspect a copy of the rate change application at your utility's office or at the Commission's office at Park 35 - Building F, 12015 Park 35 Circle, Suite 3101, Austin, Texas, west side of IH-35, south of Yager Lane. Additional information about the application can be obtained by contacting the Utilities and Districts Section at 512/239-6960. Information about how you can participate in the rate setting process can be obtained by contacting the Public Interest Counsel at 512/239-6363.



NOTICE OF PROPOSED RATE CHANGE -WATER (Cont.) Page 2



CURRENT RATES

PROPOSED RATES

Monthly base rate including___ 3000 __ gallons Monthly base rate including ___ 3000 ____ gallons
Meter Size: Meter Size:
Residential Residential
" or ¾"
$7.50
 " or ¾" $57.33
1" $ 1" $
1½" $ 1½" $
2" $ 2" $
3" $ 3" $
Other: _____________" $ Other: _____________" $
Gallonage Charge: Gallonage Charge:
$ 1.75 for each additional 1000 gallons over the minimum $ 1.75 for each additional 1000 gallons over the minimum
Miscellaneous Fees Miscellaneous Fees
Tap fee $500.00 Tap fee $500.00
Reconnection fee $ Reconnection fee $
Non-payment

(Maximum - $25.00)

 $25.00 Non-payment

(Maximum - $25.00)

 $25.00
Customer's request $75.00 Customer's request $200.00
Transfer fee $0 Transfer fee $10.00
Late charge $2.00 or 5% Late charge (Indicate either $5.00 or 10%)

$5.00

Returned check charge $15.00 Returned check charge $20
Deposit $0 Deposit

(Maximum $50.00)

 $50
Meter test fee $25.00 Meter test fee

$ 25.00

Regulatory Assessment of 1% is added to base rate and gallonage charges

 

 

NOTICE OF PROPOSED RATE CHANGE - SEWER (Cont.) Page 3

 

CURRENT RATES

PROPOSED RATES

Monthly base rate including _n/a_______ gallons Monthly base rate including __n/a______ gallons
Meter Size: Meter Size:
Residential Residential
" or ¾" $ 7.50 (flat rate system) " or ¾" $65.58 (flat rate system)
1" $ 1" $
1½" $ 1½" $
2" $ 2" $
3" $ 3" $
Other: _____________" Other: _____________" $
Gallonage Charge: Gallonage Charge:
$ 0 for each additional 1000 gallons over the minimum $ 0 for each additional 1000 gallons over the minimum
Gallonage charges are determined based on average consumption for winter period which includes the following months: N/A
Miscellaneous Fees Miscellaneous Fees
Tap fee $500.00 Tap fee $500.00
Reconnection fee $ Reconnection fee $
Non-payment

(Maximum - $25.00)

 $25.00 Non-payment

(Maximum - $25.00)

 $25.00
Customer's request $75.00 Customer's request $200.00
Transfer fee $ 0 Transfer fee $10.00
Late charge $2.00 or 5% Late charge (Indicate either $5.00 or 10%)

$5.00

Returned check charge $15.00 Returned check charge $20.00
Deposit $none Deposit

(Maximum $50.00)

 $none

Regulatory Assessment of 1% is added to base rate and gallonage charges



WATER & SEWER

TARIFF PAGES

 

_QMS ENVIRONMENTAL CORP_________________________________________ Water Tariff Page No. 2

(Water Utility Name) Revision Date __ /__ /__

SECTION 1.0 - RATE SCHEDULE

Section 1.01 - Rates

Monthly base rate including ____3000____ gallons
Meter Size:
Residential
" or ¾" $57.33
1" $
1½" $
2" $
3" $
Other: ____" $
Gallonage Charge: $ 1.75 for each additional 1000 gallons over the minimum
Regulatory Assessment Fee .......1%

A REGULATORY ASSESSMENT, EQUAL TO ONE PERCENT OF THE CHARGE FOR RETAIL WATER SERVICE ONLY, SHALL BE COLLECTED FROM EACH RETAIL CUSTOMER

 

 

Section 1.02 - Miscellaneous Fees

 

TAP FEE $__ 500.00 ____

TAP FEE IS BASED ON THE UTILITY'S ACTUAL COST FOR MATERIALS AND LABOR FOR STANDARD RESIDENTIAL CONNECTION OF " X ¾" METER.

 

RECONNECTION FEE

THE RECONNECT FEE WILL BE CHARGED BEFORE SERVICE CAN BE RESTORED TO A CUSTOMER WHO HAS BEE DISCONNECTED FOR THE FOLLOWING REASONS:

a) Non payment of bill (Maximum $25.00) $25.00____

b) Customer's request $200.00____

Or other reasons listed under Section 20CF of this tariff

TRANSFER FEE $____10.00____

THE TRANSFER FEE WILL BE CHARGED FOR CHANGING AN ACCOUNT NAME AT THE SAME SERVICE LOCATION WHEN THE SERVICE IS NOT DISCONNECTED.

 

LATE CHARGE (Not more than $5.00 or 10%)(Indicate one) $_____5.00____

A ONE TIME PENALTY MADE ON DELINQUENT BILLS BUT MAY NOT BE APPLIED TO ANY BALANCE TO WHICH THE PENALTY WAS APPLIED IN A PREVIOUS BILLING.

RETURNED CHECK CHARGE $____20.00____

 

CUSTOMER DEPOSIT (Maximum $50) $____50.00____

 

METER TEST FEE (actual cost of testing the meter up to) $____25.00__

THIS FEE MAY BE CHARGED IF A CUSTOMER REQUESTS A SECOND METER TEST WITHIN A TWO YEAR PERIOD AND THE TEST INDICATES THAT THE METER IS RECORDING ACCURATELY.

 

RATES LISTED ARE EFFECTIVE ONLY IF THIS PAGE HAS TNRCC APPROVAL STAMP

 

QMS ENVIRONMENTAL CORP_____________ Sewer Tariff Page No. 2

(Sewer Utility Name) Revision Date __ /__ /__

 

SECTION 1.0 - RATE SCHEDULE

Section 1.01 - Rates

Monthly base rate including 0 (Flat rate system)__ gallons
Meter Size:
Residential
" or ¾" $65.58
1" $
1½" $
2" $
3" $
Other: ____" $
Gallonage Charge: $ 0 for each additional 1000 gallons over the minimum
Regulatory Assessment Fee .......1%

A REGULATORY ASSESSMENT, EQUAL TO ONE PERCENT OF THE CHARGE FOR RETAIL WATER SERVICE ONLY, SHALL BE COLLECTED FROM EACH RETAIL CUSTOMER

Gallonage charges are determined based on average consumption for winter period which includes the following months: N/A

Section 1.02 - Miscellaneous Fees

TAP FEE $___500.00___

TAP FEE IS BASED ON THE UTILITY'S ACTUAL COST FOR MATERIALS AND LABOR FOR STANDARD RESIDENTIAL CONNECTION

RECONNECTION FEE

THE RECONNECT FEE WILL BE CHARGED BEFORE SERVICE CAN BE RESTORED TO A CUSTOMER WHO HAS BEE DISCONNECTED FOR THE FOLLOWING REASONS:

a) Non payment of bill (Maximum $25.00) $____25.00____

b) Customer's request $____200.00____

Or other reasons listed under Section 20CF of this tariff

TRANSFER FEE $__10.00____

THE TRANSFER FEE WILL BE CHARGED FOR CHANGING AN ACCOUNT NAME AT THE SAME SERVICE LOCATION WHEN THE SERVICE IS NOT DISCONNECTED.

LATE CHARGE (Not more than $5.00 or 10%)(Indicate one) $___5.00____

A ONE TIME PENALTY MADE ON DELINQUENT BILLS BUT MAY NOT BE APPLIED TO ANY BALANCE TO WHICH THE PENALTY WAS APPLIED IN A PREVIOUS BILLING.

RETURNED CHECK CHARGE $___20.00____

CUSTOMER DEPOSIT (Maximum $50) $___none____

 

RATES LISTED ARE EFFECTIVE ONLY IF THIS PAGE HAS TNRCC APPROVAL STAMP