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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/17/2020 - ITEMS RELATING TO ELECTRIC AND WATER RATES, FEES A Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY November 17, 2020 City Council STAFF Randy Reuscher, Utility Rate Analyst Lance Smith, Utilities Strategic Finance Director Cyril Vidergar, Legal Eric Potyondy, Legal SUBJECT Items Relating to Electric and Water Rates, Fees and Charges. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 139, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges. B. Second Reading of Ordinance No. 140, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees, and Charges. These Ordinances, unanimously adopted on First Reading on November 4, 2020, adjust monthly charges for both electric and water services in 2021. The revenue requi rements to support the 2021 budget require increasing monthly charges for electric service by 3.0%. Additionally, a reduction in pricing is proposed for the voluntary Green Energy program, reducing the charge per kWh from 1.9 cents per kWh to 1.6 cents pe r kWh in 2021. A 2% increase for water services is proposed to help offset mitigation costs related to the Cameron Peak Fire. Upon adoption, both rates would be effective January 1, 2021. STAFF RECOMMENDATION Staff recommends adoption of both Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, November 4, 2020 (w/o attachments) (PDF) 2. Ordinance No. 139, 2020 (PDF) 3. Ordinance No. 140, 2020 (PDF) Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY November 4, 2020 City Council STAFF Randy Reuscher, Utility Rate Analyst Lance Smith, Utilities Strategic Finance Director Cyril Vidergar, Legal Eric Potyondy, Legal SUBJECT Items Relating to Electric and Water Rates, Fees and Charges. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 139, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 140, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees, and Charges. This Ordinance has been revised. The purpose of this item is for Council to consider the above-listed electric and water rate ordinances, adjusting monthly charges for both electric and water services in 2021. The revenue requirements to support the 2021 budget require increasing monthly charges for electric service by 3.0%. Additionally, a reduction in pricing is proposed for the voluntary Green Energy program, reducing the charge per kWh from 1.9 cents per kWh to 1.6 cents per kWh in 2021. A 2% increase for water services is proposed to help offset mitigation costs related to the Cameron Peak Fire. Upon adoption, both rates would be effective January 1, 2021. STAFF RECOMMENDATION Staff recommends adoption of both Ordinances on First Reading. BACKGROUND / DISCUSSION The following table summarizes the proposed increase for 2021 by fund. Currently, there are no proposed changes to wastewater or stormwater service fees associated with the City Manager’s Recommended budget. ATTACHMENT 1 Agenda Item 14 Item # 14 Page 2 Electric Staff is proposing a 3% rate increase for the electric fund in 2021. This includes a 0.4% proposed increase in wholesale expenses for Fort Collins, and the remaining 2.6% to increase operating revenues enough to offset operating expenses and reductions in reserves, allowing funds to be set aside for future capital improvements. The electric cost-of-service (COS) model is updated every two years. Rate class adjustments are driven by many factors, including rate class consumption, growth in customer counts, load factors, and the peak demands put on the distribution system. Recent model updates show slightly larger impacts for small to mid-sized commercial classes, and slightly less for residential, industrial, and substation customers. All rate class variations are within 1%, up or down, from the 3% baseline. Criteria 2019 2020 2021 1.4%0.3% 1. PRPA wholesale energy costs 1.4% 0.3% 2. 3 yr ave Operating Income < 0 5.0% 3.9% 2.4% 3. Debt Coverage Ratio < 2.0 4. Available Reserves less Capital Need < 0 Sum of Above 6.4% 5.3% 3.0% 5. Lesser of 5.0% or the sum of above 5.0% 5.0% 3.0% Increase Carried Forward 1.4% 0.3% ---- Agenda Item 14 Item # 14 Page 3 Platte River Power Authority (Platte River) is proposing a 1.5% increase to the wholesale rate for 2021, but the impacts to each of the 4 cities varies, with Fort Collins seeing less of an impact than the other cities and is projected to be 0.4%. The lesser impact is driven largely by the elimination of the premium intermittent energy charge, where Fort Collins has up to this point purchased a higher percentage of renewables than the load share allocation. The increase is also lower due to a more favorable load factor, as compared to Loveland, Longmont, and Estes Park. The percentage changes in the wholesale rate will vary, with an overall shift from energy charges to the demand charges. There will also be a 5.7% increase in the owner charge. The largest change is in a lower intermittent energy charge, where the cost will be lower by just over 1 cent per kWh, or 25.1%, and is the result of the lower trending costs of renewables. Another proposed change for 2021 is related to the Green Energy Program (fcgov.com/greenenergy), which provides an option for customers to subscribe to renewable electricity for 100% of their monthly usage or in predetermined kWh blocks. The proposed 2021 retail price premium is 1.6 cents per kWh, a reduction of nearly 16% from the current 1.9 cents. This considers that customers receive over 50% of their electricity from non- carbon sources from the standard resource mix. In other words, the premium is adjusted by the non-carbon percentage to be more precise when applied to the monthly usage for a customer who wants to be 100% Agenda Item 14 Item # 14 Page 4 renewable. There is also a small amount built into the premium which will be used to develop future investments in the distribution system over time to allow for higher penetration of local renewables. Several key resource changes are driving these updates. The new Roundhouse wind and Rawhide Prairie solar projects will both be fully operational next year, joining other existing wind and solar resources from Platte River and dramatically increasing the amount of renewable energy supplied to the cities. In addition, the legacy renewable energy specific wholesale tariff (Tariff 7) will be eliminated in 2021. Fort Collins has historically purchased Tariff 7 energy in amounts greater than the City’s load ratio share. Green Energy Program Summary Program 2020 2021 Notes Price per kWh 1.9 cents 1.6 cents 16% decrease Wind Mix 100% 77% Colorado and Wyoming sources Solar 0% 23% Local and Rawhide locations Water The Cameron Peak Fire (CPF) ignited on August 13th, 2020 in the Arapaho and Roosevelt National Forests. Prior to the fire, the budget process was starting, and a 10-year rate and debt issuance forecast was presented to the Council Finance Committee. The table below shows the 10-year rate and debt issuance forecast for this utility as it stood then. It reflects the anticipated capital investment needs and ongoing operations and maintenance (O&M) expenses associated with the water utility for the next decade without the fire. As discussed at the October 13th Work Session and with the Council Finance Committee on October 19th, it is anticipated that there will be some costs associated with this fire that will be the obligation of the Water Enterprise Fund. Additional capital investments and O&M expenses resulting from the fire will require either realizing additional revenues through a rate increase, drawing down reserves ahead of the next debt issuance or delaying other capital investments. While it is still not certain what mitigations will be necessary or allowed on the burned areas, the impacts to the water quality will need to be addressed. Fort Collins is again partnering with other affected water providers to realize both economies of scale in the mitigation efforts and a coordinated request for federal assistance. At this point, mitigation costs are estimated to cost between $8M and $32M depending on several factors. It is expected that there will be a matching federal grant available for these efforts which would reduce the cost to ratepayers to $1-4M. If the proposed 2.0% rate increase for 2022 were to be implemented in 2021, this would increase revenues in 2021 by approximately $600,000. Residential Bill Impacts The typical residential customer’s total utility bill will increase in 2021, under the proposed rate changes, by 1.8% on average, per month, or $3.33. The table below shows the impacts of the proposed rate change for a typical residential customer that receives all four services from Fort Collins Utilities. Agenda Item 14 Item # 14 Page 5 CITY FINANCIAL IMPACTS Electric: In 2021, the proposed 3.0% increase would add an estimated $3.3M to operating revenues, which will fully address ongoing operating losses. The attached one-page budget summary for the Light and Power Enterprise Fund shows the budget assuming this proposed 3.0% rate increase is adopted. Because reserves have been drawn down already, any reduction in the proposed 3.0% rate increase would need to be offset by a corresponding amount in the accepted budget Offers. The rate increases implemented in the previous budget cycle were necessary to increase operating revenues at a rate faster than operating expenses have been growing. Operating expenses are being actively managed. In 2020, mid-year budget reductions totaling $1.0M were identified and implemented. These reductions, including a hiring freeze and no salary adjustments in 2021, were necessary to minimize the amount of increase being requested here. The proposed 2021 ongoing operations and maintenance (O&M) budget of $130.8M reflect these efforts. The 5-year growth on O&M is 4.4% (1.1% annualized) higher than the 2017 actual O&M, which is below inflation for the same period. Water: The 2% water increase is expected to generate approximately $600,000 in 2021 that was unanticipated during the budget process. This additional revenue in 2021, along with unanticipated operating revenues in 2020, will help to offset the anticipated fire mitigation expenses which are expected to be between $1.0M and $4.3M to the Water Fund. BOARD / COMMISSION RECOMMENDATION Electric: At the September 10, 2020, meeting, the Energy Board voted unanimously to support the 2021 electric rate increase and changes, as proposed by staff. Water: The proposed increase to the Water Fund related to fire mitigation expenses has not been presented to the Water Board for formal consideration yet. Staff provided the Water Board with a memo on the fire dated October 6th which discusses the potential rate increase. At the time of the memo the next step was to discuss the potential with the Council Finance Committee on October 19, 2020. Agenda Item 14 Item # 14 Page 6 PUBLIC OUTREACH Customer Accounts staff has been communicating with customers in recent months the potential for a 3.0% overall electric rate increase for 2021. The need for a water rate increase has arisen more recently, therefore this has not been communicated to customers at this point. Electric utility customers receiving service outside the City limits received a postcard 30 days before Council’s consideration of this Ordinance, describing the proposed rate increase and their opportunities to participate in Council’s public hearing process. ATTACHMENTS 1. Light and Power 2021 Budget Summary (PDF) 2. Energy Board Minutes (PDF) 3. Powerpoint Presentation (PDF) -1- ORDINANCE NO. 139, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to produce sufficient revenues to provide the utility services described herein; and WHEREAS, revenues from the rates, fees or charges for utility services set forth herein shall be used to defray the costs of providing such utility services as required by the Charter and the City Code; and WHEREAS, the City purchases bulk wholesale electric power from Platte River Power Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy, dated May 30, 2019; and WHEREAS, Utilities staff has determined the increased local distribution costs will require an additional average 3% rate increase in 2021 in order to remain consistent with Article XII, Section 6, of the City Charter; and WHEREAS, the Energy Board considered the proposed electric rates and methods of application at its September 10, 2020 and October 8, 2020 regular meetings, and provided recommendations of approval of proposed rate sets to City Council; and WHEREAS, the City Council Finance Committee considered the proposed electric rates and methods of application at its October 19, 2020 regular meeting, and provided recommendations of approval of proposed rate sets to the full City Council; and WHEREAS, the City Manager and staff have recommended to the City Council the following electric rate adjustments and City Code rate language clarifications for all billings issued with meter readings on or after January 1, 2021; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the electric rates, fees and charges as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That Sections 26-464 (c) through (f), (p), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. - Residential energy service, schedule R. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges applied to all energy consumption on or after January 1, 2021. Description Unit Component Charge Billed Charge (including PILOT) a. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent b. Fixed Charge Per account $8.10 $8.59 c. Distribution facilities charge (applied to energy charges in d.1. and d.2. below) Per kWh $0.0275 d. Wholesale Energy Charge (combined energy and demand costs) 1. Summer. For billings based on consumption during the months of May, June, July, August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2201 $0.2624 (b) Off-Peak Per kWh $0.0404 $0.0719 2. Non-summer. For billings based on consumption during the months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1840 $0.2242 (b) Off-Peak Per kWh $0.0404 $0.0719 e. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0232 $0.0246 f. Income-qualified assistance discount. Discount applied to effective monthly charges in "a.", "b.", "c." and “d.” for IQAP participating residential customers, as further described in Section 26-724 of the Code. 23 percent -3- (d) Medical assistance program. . . . (3) a. Durable Medical Equipment (DME). The discounted monthly rates for customers with electrical durable medical equipment only shall be the sum of the following charges, applied to all energy consumption on or after January 1, 2021: Description Unit Component Charge Billed Charge (including PILOT) 1. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent 2. Fixed Charge Per account $8.10 $8.59 3. Distribution facilities charge (applied to energy charges in 4.a) and 4.b) below) Per kWh $0.0275 4. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1541 $0.1924 (ii) Off-Peak Per kWh $0.0283 $0.0591 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1288 $0.1656 (ii) Off-Peak Per kWh $0.0283 $0.0591 5. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0232 $0.0246 (4) a. Air Conditioning (A/C). The discounted monthly rates for customers with medical needs requiring air conditioning only shall be the sum of the following charges, applied to all energy consumption on or after January 1, 2021: Description Unit Component Charge Billed Charge (including PILOT) 1. Payment in lieu of taxes (PILOT) and franchise. 6 percent -4- A charge based on all component charges pursuant to this Section 2. Fixed Charge Per account $8.10 $8.59 3. Distribution facilities charge (applied to energy charges in 4.a) and 4.b) below) Per kWh $0.0275 4. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.0404 $0.0719 (ii) Off-Peak Per kWh $0.0404 $0.0719 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1840 $0.2242 (ii) Off-Peak Per kWh $0.0404 $0.0719 5. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off- peak) Per kWh $0.0232 $0.0246 (5) a. Durable Medical Equipment (DME) & A/C. The discounted monthly rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be the sum of the following charges, applied to all energy consumption on or after January 1, 2021: Description Unit Component Charge Billed Charge (including PILOT) 1. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent 2. Fixed Charge Per account $8.10 $8.59 3. Distribution facilities charge (applied to energy charges in 4.a) and 4.b) below) Per kWh $0.0275 4. Energy and demand charge -5- a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.0404 $0.0719 (ii) Off-Peak Per kWh $0.0283 $0.0591 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1288 $0.1656 (ii) Off-Peak Per kWh $0.0283 $0.0591 5. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off- peak) Per kWh $0.0232 $0.0246 . . . (e) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at the premium per kilowatt hour set forth in this Subsection (e). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (f) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Unit Component Charge Billed Charge (including PILOT) Per kW $2.39 $2.53 . . . (p) Net metering. -6- . . . (5) The customer-generator’s consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 2021. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0217 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2201 $0.2418 b) Off-Peak Per kWh $0.0404 $0.0621 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1840 $0.2057 b) Off-Peak Per kWh $0.0404 $0.0621 . . . (r) Net metering—Community solar projects. . . . (3) The customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber- owned facilities and dedicated program-managed facilities. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 2021. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0109 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September -7- a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2201 $0.2310 b) Off-Peak Per kWh $0.0404 $0.0513 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1840 $0.1949 b) Off-Peak Per kWh $0.0404 $0.0513 Section 4. That Sections 26-465 (c) through (f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. - All-electric residential service, schedule RE. . . . (c) Monthly rate. (1) The monthly rates for this schedule shall be the sum of the following charges, applied to all energy consumption on or after January 1, 2021. Description Unit Component Charge Billed Charge (including PILOT) a. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent b. Fixed Charge Per account $8.10 $8.59 c. Distribution facilities charge (applied to charges in d.1. and d.2. below) Per kWh $0.0354 d. Energy and demand charge 1. Summer. For billings based on consumption during the months of May, June, July and August, and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2201 $0.2708 b) Off-Peak Per kWh $0.0404 $0.0804 2. Non-summer. For billings based on consumption during the months of January through April and October through December. a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $ 0.1840 $0.2326 -8- b) Off-Peak Per kWh $0.0404 $0.0804 e. Income-qualified assistance program ("IQAP") discount. Discount applied to monthly charges in "b.", "c." and “d” above for IQAP participating residential customers, as further described in Section 26-724 of the Code 23 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at the premium per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Unit Component Charge Billed Charge (including PILOT) Per kW $2.39 $2.53 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly standby distribution charge: Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge Per kW $2.41 $2.55 For all metered kilowatts in excess of the contracted amount Per kW $7.21 $7.64 . . . (q) Net metering. -9- . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 2021. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0279 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2201 $0.2480 b) Off-Peak Per kWh $0.0404 $0.0683 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1840 $0.2119 b) Off-Peak Per kWh $0.0404 $0.0683 (r) Net metering—community solar projects. ... (3) The customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber- owned facilities and dedicated program-managed facilities. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 2021. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0141 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2201 $0.2342 -10- b) Off-Peak Per kWh $0.0404 $0.0545 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1840 $0.1981 b) Off-Peak Per kWh $0.0404 $0.0545 . . . Section 5. That Sections 26-466 (c), (d), (e), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. - General service, schedule GS. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent (2) Fixed Charge a. Single-phase, two-hundred-ampere service Per account $5.25 $5.56 b. Single-phase, above two-hundred-ampere service Per account $15.50 $16.43 c. Three-phase, two-hundred-ampere service Per account $8.00 $8.48 d. Three-phase, above two-hundred-ampere service Per account $18.96 $20.10 (3) Distribution facilities charge (added to demand and energy charges below for “Billed Charge” shown in (5)) Per kWh $0.0356 (4) Demand charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0330 -11- b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0200 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate (5) Energy charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0404 $0.1156 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0404 $0.1018 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at the premium per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Unit Component Charge Billed Charge (including PILOT) Per kW $2.39 $2.53 . . . -12- (q) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: Description Unit Component Credit a. Energy credit for billings based on generation during the months of June, July, August, and September Per kWh $0.0404 (r) Net metering—community solar projects. . . . (3) Both the customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: Description Unit Component Credit a. Energy and demand credit Per kWh $0.0404 Section 6. That Sections 26-467 (c) through (f) and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. - General service 25, schedule GS25. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) 1.Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent -13- 2. Fixed Charge a. Single-phase, two-hundred-ampere service Per account $5.54 $5.87 b. Single-phase, above two-hundred-ampere service Per account $16.33 $17.31 c. Three-phase, two-hundred-ampere service Per account $8.44 $8.94 d. Three-phase, above two-hundred-ampere service Per account $19.98 $21.18 3. Distribution facilities charge (applied to energy charges in 5. below) Per kWh $ 0.0286 4. Demand charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kW $10.20 $10.81 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kW $5.75 $6.10 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate 5. Energy charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0404 $0.0731 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0404 $0.0731 (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at the premium per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. -14- Unit Component Charge Billed Charge (including PILOT) Per kW $2.39 $2.53 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly standby distribution charge Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge Per kW $4.38 $4.64 For all metered kilowatts in excess of the contracted amount Per kW $13.15 $13.94 . . . (r) Net metering . . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July, August, and September Per kWh $0.0404 Section 7. That Sections 26-468 (c) through (g), and (u) of the Code of the City of Fort Collins are hereby amended to read as follows: -15- Sec. 26-468. - General service 50, schedule GS50. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent (2). Fixed Charge Per account $14.64 $15.52 (3) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kW $14.57 $15.44 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kW $11.56 $12.25 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate (4) Distribution facilities charge Per kW $10.08 $10.69 (5) Energy charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0404 $0.0428 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0404 $0.0428 (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at the premium per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. -16- Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Unit Component Charge Billed Charge (including PILOT) Per kW $2.39 $2.53 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. Monthly standby distribution charge shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge Per kW $5.62 $5.96 For all metered kilowatts in excess of the contracted amount Per kW $16.40 $17.38 . . . (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly charge shall be the sum of the following charges: -17- Description Unit Component Charge Billed Charge (including PILOT) Contracted backup capacity per month Per kW $1.14 $1.21 Metered kilowatts in excess of the contracted amount Per kW $3.46 $3.67 . . . (u) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July, August and September Per kWh $0.0404 Section 8. That Sections 26-469 (c) through (g) and (v) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. - General service 750, schedule GS750. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent (2) Fixed Charge Per account $28.75 $30.48 -18- a. Additional charge for each additional metering point Per account $17.54 $18.59 (3) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kW $13.55 $14.36 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kW $10.75 $11.40 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate (4) Distribution facilities charge a. First seven hundred fifty (750) kilowatts Per kW $11.08 $11.75 b. All additional kilowatts Per kW $6.55 $6.94 (5) Energy charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0398 $0.0422 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0398 $0.0422 (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at the premium per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. -19- Unit Component Charge Billed Charge (including PILOT) Per kW $2.39 $2.53 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. Monthly standby distribution charges shall be paid in the following amounts Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.88 $4.12 For all metered kilowatts in excess of the contracted amount Per kW $11.68 $12.38 . . . (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility at the following rates: (1) Monthly charge. Description Unit Component Charge Billed Charge (including PILOT) Contracted backup capacity per month Per kW $0.80 $0.85 Metered kilowatts in excess of the contracted amount Per kW $2.40 $2.54 . . . -20- (v) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July, August, and September Per kWh $0.0398 Section 9. That Sections 26-470 (c), (d), (e), and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. - Substation service, schedule SS. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section. 6 percent (2) Fixed Charge Per account $70.42 $74.65 (3) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kW $13.35 $14.15 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kW $10.59 $11.23 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate -21- (4) Distribution facilities charge Per kW $5.71 $6.05 (5) Energy charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0392 $0.0416 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0392 $0.0416 (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.015 $0.016 (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility at the following rates: (1) Standby distribution charge. a. Monthly standby distribution charge: Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.89 $3.07 For all metered kilowatts in excess of the contracted amount Per kW $8.68 $9.20 . . . -22- (s) Net metering. ... (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July, August, and September Per kWh $0.0392 Section 10. That Section 26-471 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-471. - Special area floodlighting, schedule FL. . . . (b) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp, mercury vapor: Description Component Charge Billed Charge (including PILOT) a. One hundred seventy-five (175) watt $19.23 $20.38 b. Two hundred fifty (250) watt $22.65 $24.01 c. Four hundred (400) watt $29.68 $31.47 (2) Charge per lamp, high-pressure sodium: Description Component Charge Billed Charge (including PILOT) a. Seventy (70) watt $8.13 $8.61 b. One hundred (100) watt $11.49 $12.18 -23- c. One hundred fifty (150) watt $18.18 $19.27 d. Two hundred fifty (250) watt $23.18 $24.57 e. Four hundred (400) watt $30.62 $32.46 (3) Charge per lamp, LED: Description Component Charge Billed Charge (including PILOT) a. Fifty-four (54) watt (Cobra) $7.97 $8.45 b. Seventy-two (72) watt (Cobra) $9.27 $9.83 c. Eighty (80) watt (Cobra) $9.58 $10.16 d. Eighty-eight (88) watt (Cobra) $10.15 $10.76 e. Sixty-five (65) watt (Post Top) $12.47 $13.21 Section 11. That Section 26-472 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-472. - Traffic signal service, schedule T. . . . (c) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and franchise) shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Fixed charge Per account $83.08 $88.06 (2) Energy charge Per kWh $0.0773 $0.0819 (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation Section 12. That the modifications set forth above shall be effective for all energy consumption on or after January 1, 2021. -24- Introduced, considered favorably on first reading, and ordered published this 4th day of October, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 140, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to produce sufficient revenues to provide the utility services described herein; and WHEREAS, the revenue from the rates, fees or charges for utility services set forth herein shall be used to defray the costs of providing such utility services as required by the Charter and the City Code; and WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-126 and 26-127 concern various water-related rates, fees, and charges; and WHEREAS, City Code Section 26-118 requires that the City Manager analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have recommended to the City Council adjustment of the water-related rates, fees, and charges as set forth herein to be effective January 1, 2021; and WHEREAS, this Ordinance increases the subject water rates by 2% to address mitigation and related costs associated with the Cameron Peak Fire; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-126 of the Code of the City of Fort Collins is hereby amended to read as follows: -2- Sec. 26-126. - Schedule A, flat rates for unmetered construction water use. For residential and nonresidential premises under construction with a planned meter size greater than one (1) inch, no flat unmetered water service will be provided. For residential and nonresidential premises under construction with a planned meter size of one (1) inch or less, the following flat rates will apply per month until the permanent meter is set: Category Component Charge Billed Charge (with PILOT) ¾-inch construction service, flat charge per month $30.15 $31.96 1-inch construction service, flat charge per month $57.49 $60.94 Section 2. That Section 26-127 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. - Schedule B, meter rates. (a) Residential rates. (1) Residential customers with one (1) dwelling unit shall pay the sum of the following changes: Category Component Charge Billed Charge (with PILOT) a. Base monthly charge for residential customers with one (1) dwelling unit $17.27 $18.30 b. Quantity monthly charge for residential customers with one (1) dwelling unit (volumetric) Tier 1 - For the first seven thousand (7,000) gallons used per month, per one thousand (1,000) gallons $2.673 $2.834 Tier 2 - For the next six thousand (6,000) gallons used per month, per one thousand (1,000) gallons $3.072 $3.257 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $3.534 $3.746 c. Income-qualified assistance discount. Discount applied to monthly base and Tier 1 volumetric charges for IQAP participating residential customers in properties with one (1) dwelling unit, as further described in Section 26-724 of the Code. 23 percent -3- (2) Residential customers with two (2) dwelling units shall pay the sum of the following charges: Category Component Charge Billed Charge (with PILOT) a. Base monthly charge for residential customers with two (2) dwelling units $18.24 $19.33 b. Quantity monthly charge for residential customers with two (2) dwelling units (volumetric) Tier 1 - For the first nine thousand (9,000) gallons used per month, per one thousand (1,000) gallons $2.316 $2.455 Tier 2 - For the next four thousand (4,000) gallons used per month, per one thousand (1,000) gallons $2.662 $2.822 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $3.063 $3.247 c. Income-qualified assistance discount. Discount applied to monthly base and Tier 1 volumetric charges for IQAP participating residential customers in properties with two (2) dwelling units, as further described in Section 26-724 of the Code. 23 percent (3) Residential customers with more than two (2) dwelling units shall pay the sum of the following charges: Category Component Charge Billed Charge (with PILOT) a. Base monthly charge for residential customers with more than two (2) dwelling units First dwelling unit $13.12 $13.90 Second and each additional dwelling unit $4.37 $4.63 b. Quantity monthly charge for residential customers with more than two (2) dwelling units (volumetric) Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.907 $2.022 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.384 $2.527 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be -4- billed more than six (6) full billing cycles at the summer quantity charge. c. Income-qualified assistance discount. A discount applied to the monthly base and volumetric charges above for IQAP participating residential customers in properties with more than two (2) dwelling units who hold water and wastewater service accounts in their own names, subject to Section 26- 724 of the Code. 23 percent (b) Nonresidential rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26- 127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge Billed Charge (with PILOT) ¾ $15.36 $16.28 1 $42.86 $45.43 1½ $116.54 $123.53 2 $175.61 $186.15 3 $267.85 $283.92 4 $420.51 $445.74 6 $815.73 $864.68 8 $1,441.07 $1,527.53 (2) Quantity charges. Nonresidential customers shall pay monthly charges as follows: Category Component Charge Billed Charge (with PILOT) Winter - per one thousand (1,000) gallons used in the winter season months of November through April $2.137 $2.265 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.671 $2.832 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. -5- (3) Charges for excess use. Nonresidential customers shall also pay monthly water use charges in excess of the amounts specified in the following table: Category Component Charge Billed Charge (with PILOT) Winter - per one thousand (1,000) gallons used in the winter season months of November through April $3.070 $3.254 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $3.840 $4.071 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. . . . (c) High volume industrial rates. High volume industrial rates apply to any customer with an average daily demand in excess of two million (2,000,000) gallons per day. The specific rate for any qualifying customer shall be based upon the applicable peaking factor for that customer as follows: Peaking Factor Monthly Charge per Thousand Gallons Billed Charge (with PILOT) 1.00—1.09 $1.67 $1.77 1.10—1.19 $1.73 $1.84 1.20—1.29 $1.80 $1.90 1.30—1.39 $1.85 $1.96 1.40—1.49 $1.91 $2.02 1.50—1.59 $1.95 $2.07 1.60—1.69 $2.01 $2.13 1.70—1.79 $2.07 $2.19 1.80—1.89 $2.12 $2.25 1.90—1.99 $2.19 $2.32 > 2.00 $2.24 $2.38 . . . -6- Section 3. That the modifications set forth above shall be effective for meter readings on or after January 1, 2021, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2021. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk