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<br /> <br /> Page | 20 <br />Cost of Services <br /> <br />The total cost of providing services to the wholesale customers based on FY 2022 costs <br />is the sum of the capital costs and the operations and maintenance costs. This amount is <br />the revenue each wholesale customer should provide to SPRWS. These are shown <br />below. <br /> <br />The base rate and volume fee for each retail customer was estimated by applying the <br />logic used in the 2017 and 2019 studies. Specifically, that logic set the volume rate for <br />Roseville and Little Canada at 60% of the blended rate for SPRWS retail customers and <br />the U of M volume rate at 92% of the SPRWS blended retail rate. The base fee was then <br />determined to provide the balance of the revenue not coming from volume rates. The FY <br />2022 base and volume rates were calculated to provide the total revenues determined <br />from the base extra capacity analysis. The rates for future years were projected using the <br />percentage increases recommended in the financial projections. The resulting projected <br />revenues, base rates, and volume rates for each wholesale customer are shown on the <br />following page. <br /> <br />FY 2022 <br />Description Roseville Little Canada U of M Total <br />Plant Value (Present Worth Allocation)24,824,524$ 5,114,685$ 4,794,985$ 34,734,193$ <br />Return on Investment (5%)1,241,226$ 255,734$ 239,749$ 1,736,710$ <br />Current Depreciation 557,024$ 116,118$ 87,746$ 760,887$ <br />Total Capital Cost 1,798,250$ 371,852$ 327,495$ 2,497,597$ <br />O & M Cost 3,557,581$ 756,155$ 313,974$ 4,627,710$ <br />Total Revenue 5,355,831$ 1,128,007$ 641,469$ 7,125,306$