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Rate Band Issues For Commercial Customers

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This shows how Aqua's consumption volumes are mathematically impossible for their commercial customers.  But, that is what Aqua used to set rates for their commercial customers.

Commercial 1 Customers

 

This issue is simple.  The following table is a summary of Aqua’s volume data for Commercial 1 customers: 

Commercial1 Volumes.png

The 2,052 bills represent 171 customers (171 = 2,052/12). 

 

It is mathematically impossible for 171 customers to consume 13,149,400 gallons in the middle rate band (1667 ‑ 5,000 gallons).  That volume would require 329 customers consuming the full 5,000 gallons in that rate band    (329 = 13,149,400/12/3333). 

 

Further more, those 329 customers would have to consume 6,581,316 gallons in the lower rate band (0 – 1667 gallons)  (6,581,316 = 329 x 1667 x 12).  That is 7.5X Aqua’s stated consumption for that rate band. 

 

Clearly this is an impossible set of compliance volumes.  How is it possible to correctly set rates from such data? 

Commercial 2 Customers

 

This is also a simple issue similar to the Commercial 1 case.  The following table is a summary of Aqua’s Commercial 2 data:  

Commercial 2 Customers

 

The 332 bills represent 27.7 customers (27.7 = 332/12). 

 

Again, it is mathematically impossible for 27.7 customers to consume 1,977,000 gallons in the middle rate band (1667 ‑ 5,000 gallons).  It would require 49 customers consuming the full 5,000 gallons in that rate band (49 = 1,977,000/12/3333). 

 

Further more, those 49 customers would have to consume 980,196 gallons in the lower rate band (0 – 1667  gallons) (980,196  = 49 x 12 x 1667).  That is over 10X Aqua’s stated consumption for that band. 

 

This is a another impossible situation showing that Aqua’s compliance data bears no relationship to actual use. 

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