AFFORDABLE | DEPENDABLE | SUSTAINABLE
2015 Rate Study Workshop #5 Base Rate Adjustments Jeff Sprague, CPM Manager Pricing & Rates Ted Kelly, Project Manager Burns & McDonnell November 17, 2014
Workshop Agenda • Cost of Service - Review • Policy and Rate Design
• Base Rate Adjustments • Changes to Existing Pricing
• New/Optional Pricing • Billing Impacts 2
Revenue Increase- Proposed 2015 Rate Study - Proposed
Revenue Share
Revenue Adjustment Required
Percent COS
System
$
7,525,077
5.08%
100.0%
Residential
$
5,180,329
6.21%
100.0%
Sm Comm
$
-3.68%
108.7%
Comm Demand
$
1,138,641
4.84%
100.0%
Industrial
$
984,603
7.55%
98.0%
Interruptible
$
154,873
7.50%
98.5%
ELDC
$
245,134
7.52%
82.1%
Interruptible TOD
$
334,285
30.84%
100.0%
(515,741)
3
Cost of Service Allocations Revenue Share
Revenue Adjustment Required
Percent COS Achieved
System
$ 155,593,096
5.08%
100.0%
Residential
$
88,580,129
6.21%
100.0%
3.50%
Sm Comm
$
13,514,559
-3.68%
108.7%
-2.12%
Comm Demand
$
24,659,241
4.84%
100.0%
2.29%
Industrial
$
14,021,103
7.55%
98.0%
3.54%
Interruptible
$
2,218,473
7.50%
98.5%
2.67%
ELDC
$
3,503,134
7.52%
82.1%
2.27%
Interruptible TOD Lighting & Unmetered
$
1,418,285
30.84%
100.0%
$
7,678,172
Average Bill Change pre-tax
4
Policy Change in Rate Study • New PV-owning customers on demand rate • Demand pricing provides equitable recovery of Delivery costs • Reduce customer subsidy to PV owners
• Existing PV-owning customers • Move to demand pricing after 10 years • September 2015 to install planned systems 5
Base Rate Adjustments Changes to Existing Pricing • Residential • Customer Charge increase to $9.50 • Energy Charge increase to •
Tier 1(<1000) $0.05085
Tier 2(1001-1500) $0.05646
Tier 3(>1501) $0.06207
• Billing Impact (pre-tax) – est. 3.5% • • •
3.8% for 750 kWh 3.3% for 1148 kWh 3.1% for 2000 kWh 6
Base Rate Adjustments Changes to Existing Pricing • Residential Shift-to-Save • • • • •
Change to 3-period pricing Customer Charge increase to $9.50 On-Peak Energy Charge increase to $0.13225 Mid-Peak Energy Charge increase to $0.07736 Off-Peak Energy Charge increase to $0.02232
• All existing Residential Shift-to-Save customer 7
Base Rate-New • Residential – Demand Option • Customer Charge $9.50 • Energy Charge $0.02232 • Demand Charge $4.80
• New PV-owning customers in FY16
8
Base Rate Adjustments Changes to Existing Pricing • Small Commercial • Customer Charge increase to $12.00 • Energy Charge decrease to $0.04974 • Billing Impact (pre-tax) – est. -2.12% • • •
-1.2% for 1000 kWh -2% for 1780 kWh -2.8% for 5000 kWh
9
Base Rate Adjustments Changes to Existing Pricing • Small Commercial Shift-to-Save • • • • •
Change to 3-period pricing Customer Charge increase to $12.00 On-Peak Energy Charge increase to $0.0XX Mid-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX
• All existing Small Commercial Shift-to-Save customer 10
Base Rate-New • Small Commercial – Demand Option • Customer Charge $12.00 • Energy Charge $0.01986 • Demand Charge $4.83
11
Base Rate Adjustments Changes to Existing Pricing • Commercial Demand • • • •
Customer Charge increase to $35.00 Energy Charge decrease to $0.01911 Demand Charge increase to $8.00 Billing Impact (pre-tax) – est. 2.29% • • •
3.2% for 13,505 kWh, 50 kW demand 2.3% for 33,268 kWh, 98 kW demand 1.6% for 207,634 kWh, 499 kW demand
12
Base Rate Adjustments Changes to Existing Pricing • Commercial Demand Shift-to-Save • • • •
Customer Charge increase to $35.00 Demand Charge increase to $8.00 On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX
13
Base Rate Adjustments Changes to Existing Pricing • Industrial (GSLD) • • • •
Customer Charge increase to $380.00 Energy Charge decreased to $0.01492 Demand Charge increase to $9.34 Billing Impact (pre-tax) – est. 3.54% • • •
4% for 318,974 kWh, 971kW demand 2.7% for 2,007,099 kWh, 4,999 kW demand 1.8% for 2,372,026 kWh, 4,999 kW demand
14
Base Rate Adjustments Changes to Existing Pricing • Industrial (GSLD) Shift-to-Save • • • •
Customer Charge increase to $380.00 Demand Charge increase to $9.34 On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX
15
Base Rate Adjustments Changes to Existing Pricing • Interruptible • • • •
Customer Charge increase to $380.00 Energy Charge decreased to $0.01492 Demand Charge increase to $9.45 Billing Impact (pre-tax) – est. 2.67% • • •
3.7% for 401,500 kWh, 1000 kW demand 2.5% for 1,056,665 kWh, 2236 kW demand 1.6% for 1,224,210 kWh, 2236 kW demand
16
Base Rate Adjustments Changes to Existing Pricing • Interruptible Shift-to-Save • • • • •
Customer Charge increase to $380.00 Demand Charge increase to $9.45 Controlled Demand Credit unchanged On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX
17
Base Rate Adjustments Changes to Existing Pricing • Large Demand Interruptible Shift-toSave • • • • •
Customer Charge increase to $380.00 Demand Charge increase to $X.XX Controlled Demand Credit unchanged On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX
18
Base Rate Adjustments Changes to Existing Pricing • Extra Large Demand Customer • • • • •
Customer Charge increase to $380.00 Energy Charge decreased to $0.00205 Demand Charge increase to $10.58 Local Distribution Charge not needed Billing Impact (pre-tax) – est. 2.27% • • •
2.5% for 2,737,500 kWh, 5000 kW demand 2.1% for 9,307,500 kWh, 15,000 kW demand 1.8% for 10,402,500 kWh, 15,000 kW demand 19
Base Rate Adjustments Changes to Existing Pricing • Firm Supplemental and Standby • • • • • • •
Customer Charge increase to $.00 Reservation Charge increase to $X.XX Daily Demand Charge increase to $X.XX Local Distribution Charge increase to $0.0XX Energy Charge increase to $0.0XX On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX 20
Base Rate-New • Economic Development • • • • • • •
$250,000 initial funding level Compatible w/ LEDC target industry & jobs Subject to approval of City Manager Discount Year 1 - 25% Discount declines 5% per year 350 kW minimum demand – new 350 kW minimum demand - existing 21
Other Rate Schedule Changes • Delete unused service schedules • Residential & Commercial Electric Vehicle Charging • Large High Load Factor Power Service • Shift-to-Save market trial service
• Stop accepting new Interruptible customers • Update miscellaneous service charges 22
Update Service Charges
23
What Next? 1. 2. 3. 4.
Complete rate design December 1st rate ordinance 1st reading December 11th public hearing 6:00 pm December 15th rate ordinance 2nd reading
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Questions?
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