HomeMy WebLinkAboutElectric Board - Minutes - 09/15/2004Fort Collins Utilities Electric Board Minutes
Wednesday, September 15, 2004
City Council Liaison Electric Board Chairman Electric Board Vice Chairman
Ray Martinez Alison Mason 493-1295 Jeff L.ebesch 221-0543
Staff Liaison
Leslie Mooney 416-2703
Roll Call:
Board Present
Chairperson Alison Mason, Board members, Tracy Babst-Wiedenbrug, Dan Bihn, John Harris,
Jeff Lebesch, John Morris and Lisa Skolds
Staff Present:
Bill Bray, Terri Bryant, DeEtta Carr, Eric Dahlgren, Bob Micek, Leslie Mooney, Tom Rock,
Dennis Sumner and Ellen Switzer.
Meeting Convened
Chairperson Alison Mason called the meeting to order at 5:45 p.m.
Approval of Minutes of August 18, 2004 Meeting
Chairperson Alison Mason asked if there were any corrections to the minutes of the August 18,
2004 meeting. Board member John Morris noted that his title is Assistant Facilities Director.
Board member Tracy Babst-Wiedenbrug made a motion, seconded by Board member Dan Bihn
to approve the minutes as amended. The motion passed unanimously.
Overview of 2005 Budget — Ellen Switzer
Terri Bryant, Utilities Finance & Budget Manager, introduced herself to the Board and explained
that since she was new to the position, she has asked Ellen Switzer to review the 2005 Budget.
Electric Board Meeting Minutes
September 15, 2004
Page 2
Ellen Switzer, Utilities Financial Operations Manager, explained that as part of their work plan,
the Electric Board is responsible for reviewing the 2005 budget and rate increases. Although
City Council approved the proposed 2005 budget as part of the 2004-2005 biennial budget in
November 2003, the 2005 appropriation and rate ordinances will be adopted on first reading on
October 19. There are no changes proposed to either 2005 operating budget or the capital budget
from the 2005-2005 budgeted plan recommended by the Board last year. No salary increases are
budgeted for 2005.
The major change for 2005 is in purchase power rates. When the 2005 expenses and revenues
were projected for 2003, the department estimated that Platte River Power Authority would
increase its wholesale rate 5% and that as a result of that increase, the City's electric rates would
need to increase 3.5%. Platte River's rate increase is now set at 5.9% and a larger retail increase
of 4.35% is now necessary. Despite the 5.9% purchase power rate increase, the need for an
additional appropriation is not anticipated at this time. Total purchase power expense is related
to both increases in rates and increases in kWh sales. Based on this year's slow down in growth
(0.6% year to date), 2005 kWh growth is now expected to be considerably less than the 4%
projected. Cooler weather is thought to be a major factor in this change.
System wide, the average electric rate increase is 4.35%. The proposed rate increases for 2005
will vary by rate class and are: Residential 3.9%; Residential Demand 4.3%; General Service
4.3%; General Service 50 4.5%; General Service 750 5.0%; Floodlights 1.1%; and Traffic
Signals 4.3%. The rate increases are solely due to the pass through of the purchase power rate
increase.
Bill Bray, Electric Planning & Engineering Services Department Manager, presented an
overview of the proposed electric development fees and charges for 2005. Bill stated that the
utility has been ramping in the cost of substation transformers over a four-year period. The
proposed increase in development fees reflect the 4`h year of the change. He stated that public
outreach will be combined with changes in water wastewater and stormwater plant investment
fees that are scheduled for fall. Council action is anticipated in early 2005.
Board member Dan Bihn made a motion, seconded by Board member Jeff Lebesch to
recommend Council adopt the proposed 2005 appropriation and the proposed 2005 rate
ordinances and electric development fees. The motion passed unanimously.
Other Business
• Bill Bray reminded the Board to sign up for the tour at Platte River Power Authority on
September 20.
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Electric Board Meeting Minutes
September 15, 2004
Page 3
• Chairperson Mason stated that she will not be able to attend the regular meeting next
month and asked the Board if they would be agreeable to changing the meeting date. She
will e-mail the Board regarding available dates and will determine another date to meet.
Adiournment
Board member Dan Bihn made a motion, seconded by Board member Tracy Babst-Wiedenbrug
to adjourn. The motion passed unanimously. The meeting adjourned at 7:38 p.m.
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Leslie Mooney, Electrioloard Staff Liaison
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