HomeMy WebLinkAboutWORK SESSION SUMMARY-03/09/2021-Work Session (3)
Utilities
electric · stormwater · wastewater · water
700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
970.224.6003 – TDD
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: March 12, 2021
TO: Mayor Troxell and Councilmembers
FROM: Lance Smith, Utility Strategic Finance Director
Lisa Rosintoski, Deputy Director of Customer Connections
THROUGH: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
Theresa Connor, Interim Utilities Executive Director
RE: Council Work Session March 9 Summary - Residential Time-of-Day Review and
Potential Next Steps
City Council reviewed the time-of-day (TOD) rates based on a two-year analysis. The discussion and
direction are as follows:
x The price differential between the two residential rates should be addressed after staff provides
advantages and disadvantages of possible solutions including moving customers to a single rate
or allowing customers to move between the two rates.
x The all-electric residences are varied in terms of energy efficiency and as such it may not be
appropriate for those customers to be on the same rate structure.
x Enrollment in the Income Qualified Assistance Program (IQAP) should be an area of focus to
ensure more eligible customers are enrolled; staff is recommending shifting from an opt-in
enrollment model for IQAP to an opt-out enrollment model this year, anticipated to be presented
to Council in July 2021.
x Consideration should be given to development of a time-of-day rate for small commercial
customers that would support the community’s climate and energy goals; taking a deliberate
approach to such a change as was done with the residential TOD.
x It appears from the reduced call volumes and emails that more customers are getting accustomed
to the TOD rate structure thus, staff should continue customer engagement efforts and develop
additional ways to understand the rate structure as it applies to appliance use.
x Given that the TOD rate structure is tied to the community’s initiatives, the messaging of the
“why-and-how” this rate structure is important to achieving those targets needs to continue with
customer outreach.
x With the establishment of a wholesale energy market there will be continued evolution of rate
structures to accurately reflect real-time price signals and support community climate and energy
goals. The Feb. 14 winter freeze event demonstrated the community’s efforts to reduce load
through a “call-to-action” that was successful in reducing the system coincident peak.
x TOD rates during 2020 was unusual due to COVID-19 and staff learned how customers
responded and were affected beyond identifying the unintended price differential between the two
TOD rates.