Analysis Level
Required for All Levels

Definition
These values are the monthly average usage by the facility for a particular utility. For water it is the amount of water used, but for wastewater its the amount treated from the facility. Each utility has a slightly different definition based on what it is.

How its Used
Used in conjunction with the rate schedule to determine the revenue generated by the facility's usage of the utility.

How to Estimate it or Where to Get It
Prospect provided.

Descriptive Name
Initial connection Fee

Analysis Level
Required for All Levels

Definition
A fee charged by the utility as a one-time charge for connection of service.

How its Used
Entered as a fee going to the utility in estimating total new revenues from the facility.

How to Estimate it or Where to Get It
Confer with local utility office to see if a connection fee is applicable.

Descriptive Name
Investment for New Facility

Analysis Level
Required for all levels

Definition
Investment needed for the utility (water, wastewater, solid waste, electricity, other) system to be able to service the new facility (marginal cost).

How its Used
It enters the calculation of net present value as a cost in year 0.

How to Estimate it or Where to Get It
Confer with local utility office to see if investments are needed based on prospect’s usage and location.

Descriptive Name
Estimated useful life of Investment for New Facility

Analysis Level
Optional for all levels

Definition
How long the investment needed for the utility (water, wastewater, solid waste, electricity, other) system to be able to service the new facility (marginal cost) will continue to provide value.

How its Used
It is used to calculate the salvage value of the investment using a straight-line depreciation assumption and enters the calculation of net present value as a benefit in the last year of the analysis time horizon.

How to Estimate it or Where to Get It
Confer with local utility office to see how long the investments are likely to last.

Descriptive Name
Rates: Fixed Charge and Base Amount

Analysis Level
Required for all levels

Definition
Usually a fixed charge is applied to the user’s bill irrespective of their level of consumption.

How its Used
Along with the facility’s usage level, these rate parameters calculate revenues generated from utility usage from 1 unit up to and including the base amount. This field can also be used to input the total estimated monthly bill, which eliminates the need to input rate structure information for the various tiers, but also reduces the flexibility of LOCI, (and introduces potential errors) if the Monthly Use Level changes in subsequent analyses. The base amount is subtracted from the facility consumption level to find the amount applied to a rate structure in the case of water, wastewater, other 1, and other 2 utilities. Solid waste disposal above the base usage is applied against a flat rate for all remaining tonnage. The electric utility model uses an average monthly bill to calculate electricity revenues and, therefore, doesn’t use a fixed or base component.

How to Estimate it or Where to Get It
Confer with your local utility.

Descriptive Name
Rates: Tier Cutoffs and Prices

Analysis Level
Required for All Levels

Definition
Usage above the base amount is priced at these levels. The rate structure can be declining, constant or rising.

How its Used
Subtract the base usage from the monthly usage level. If this is a positive number, then you’re going to need to use the tier system. Fill in the cutoff levels and prices for each tier accordingly. LOCI will calculate the facility’s bill based on its monthly usage, the base usage and base charge, and these values.

How to Estimate it or Where to Get It
Confer with your local utility.

Descriptive Name
Percent of New Households Served

Analysis Level
Required for All Levels

Definition
The percent of new households that are likely to be customers of the particular utility.

How its Used
Used to adjust the number of new households created that are expected to tie in to each of the utilities provided. If "100%" were entered, then LOCI would use the estimated new households created in the jurisdiction as the number of residential customers. If not all new residents are likely to tie in to the utility, then something less than 100% would be appropriate; if service areas extend beyond jurisdictional borders, allowing non-residents to tie in to the system then its possible a number higher than 100% would be appropriate.

How to Estimate it or Where to Get It
You will have to confer with utility personnel for this percentage and base it on the utility service area boundaries.