LIHUE – July 1, 2015 – (RealEstateRama) — The Department of Water’s(DOW) cost of power adjustment rate will remain at $0.12 per thousand gallons for fiscal year 2015-2016, effective July 1.
The cost of power adjustment rate is determined by calculating the sum of two components. The first omponent is the difference between the budgeted energy costs and the projected energy costs for fiscal year 2015-2016. The second component is the difference between the actual energy costs incurred for the most recent 12-month period and the energy costs projected for fiscal year 2015-2016. All energy cost projections are taken from the DOW’s water rate study.
In the future, if energy costs become higher than the DOW’s projected allowance then the cost of power adjustment rate will also increase.
Energy costs are a significant percentage of the DOW’s annual expenses. From April 2014 to March 2015, energy costs totaled to $3 million, which is approximately 10 percent of DOW’s total water sale revenues of $28.9 million during this same 12-month period.
The majority of DOW’s revenues are generated from water delivery sales, and are used for operational maintenance and construction replacement of the water system. The DOW does not collect any revenue from real property taxes or the county’s general fund.
For more information, please call the Department of Water at 245-5455.
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Media Contact: Kim Tamaoka
Public Relations Specialist
Office: (808) 245-5455
Mobile: (808) 755-5432
Email: ktamaoka (at) kauaiwater (dot) org
