Monthly Breakdown of Operation Costs For a Single-Family Residential Bill:

• Cost of raw water - 1%
  The price paid to acquire water from Eklutna Lake is nominal compared to costs to treat and deliver high quality, safe drinking water to customers throughout the Municipality of Anchorage.
• Net Income - 9%
  Total remaining revenues after all expenses are paid. These are funds available for future investment.
• Chemicals & Supplies - 2%
  The cost of treatment chemicals, tools and miscellaneous supplies associated with the treatment of wastewater and purification of drinking water.
• Other Utility & Operating Costs - 13%
  Expenses associated with the operation of the Utility.
• Labor - 27%
  Wages and benefits for Utility employees.
• Infrastructure – the Utility’s largest rate component - 48%
  • 2 water treatment plants • 11,800 main-line valves • over 6,000 hydrants • 17 wells
  • 19 reservoirs • 32 water booster stations
  • 2 septage receiving stations • 3 wastewater treatment plants •  66 wastewater pump/lift stations • 1,691 miles of pipe • & over 17,000 pieces of rotating equipment

Utility operating costs associated with the development of Utility infrastructure are dominated by three elements: 

1. The cost of debt associated with capital investment; 
2. The depreciation of the value of capital assets over time; and
3. The Municipal Utility Service Assessment (MUSA), a payment to the Municipality of Anchorage, in lieu of taxes, associated with the value of those assets. 

Total = 100%