City of Santa Rosa, California - Page 8

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               Of the 40 million gallons of wastewater per day that could              
          conceivably pass through the first section of pipeline,                      
          approximately 29 million gallons will be available for various               
          users (irrigators) along its route.9  Those users are expected to            
          consist of vineyards and other growers, ranchers, homeowners in              
          large rural settings, parks, and others.  Petitioner intends to              
          enter into agreements with the irrigators for periods of 10 to 20            
          years, which will guarantee a certain amount of wastewater at a              
          negotiated cost to the irrigators.10  Petitioner’s ruling request            
          represents that “Aggregate amounts received from the Irrigation              
          Contracts will not exceed 5 percent of debt service on the                   
          Bonds.”                                                                      
               General rates and charges (sewer demand fees) are presently             
          imposed on users of petitioner’s sewage system.  The various fees            
          are set by an ordinance which provides a generally applicable                


               9This assumes 11 million gallons per day of wastewater will             
          be transported to the geyser steamfield for use by Company.                  
          However, an exhibit entitled “Table of Delivery Rates” shows that            
          estimated flows of wastewater per day to the geyser steamfield               
          will range from 9.0 million gallons in April and May to 12.1                 
          million gallons in November, December, and January.                          
               10According to petitioner, irrigators must take water from              
          the pipeline in the winter and spring when greater amounts of                
          wastewater are available and fill ponds and reservoirs for future            
          use.  It is unlikely that those users will have ponds or                     
          reservoirs currently in place, and each user could incur                     
          significant capital expenditures for construction of ponds and               
          reservoirs, as well as the related pumping and connection                    
          equipment.  Those users will want assurances that the pipeline               
          will be built and that they will be guaranteed a certain amount              
          of the wastewater.                                                           




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Last modified: May 25, 2011