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• • <br />cut-off date from 30 to 25 days, the following schedules would be <br />followed very stringently: <br />Cycle 1 Cycle 2 <br />Billing Date 1st 15th <br />Due (Penalty) Date 15th 30th <br />Cut-Off Date 25th 10th <br />Read Date (avg) 17th 2nd <br />Our customers that are on fixed incomes (i.e. senior citizens) will be <br />pleased that they will receive their bill the same time each month and <br />that it will be due at the same time each month. This should also help <br />our customers that follow budget plans. <br />The only variances would be weekends and holidays, and they would be <br />easy to work around when coupled with the reduction in the disconnect <br />period from 30 days to 25 days. <br />The previously mentioned 8,348 accounts do not include those obtained <br />in the BayMUD annexation. We have picked up an extra 667 (or 8%) more <br />accounts. <br />We have attempted to establish a plan that will establish two cycles <br />and in doing so, the plan should have the minimum impact on our <br />customers tincluding those obtained in the BayMUD annexation), for we <br />realize that most people are reluctant to change. In addition, we <br />believe this is the best time of the year to convert to two cycles <br />because winter consumption is lower than summer consumption and we have <br />just annexed BayMUD. <br />We have arrived at the following recommendations for going to two <br />cycles. <br />Establish Cycle 1 with 4,645 or 52'/ of the accounts, and <br />Establish Cycle 2 with 4,370 or 48% of the accounts. <br />To establish this objective, we analyzed the impact to each of our <br />current "routes" and have attempted to identify the impact on each <br />group of accounts. <br />Items covered in the analysis included the: <br />Number of days the initial read. will have to be adjusted to bring <br />the accounts in line with our proposal, <br />Difference in the number of days between their current billing date <br />and the proposed billing date, and <br />Timing of their last bill under the current system and their first <br />bill under the proposed system. <br />The analysis revealed that the 39 routes fell into b distinct <br />groupings. We will discuss each group and present them in order of our <br />estimate of "customer impact". The ranking will be from least impact <br />to most impact. <br />page 5 <br />