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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2004 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 ITEM NUMBER: 14 A-D AGENDA ITEM SUMMARY DATE: November 16, 2004 FORT COLLINS CITY COUNCIL STAFF: Michael B. Smith Terri Bryant SUBJECT Items Relating to Utility Rates and Charges for 2005. RECOMMENDATION Staff, the Electric Board and the Water Board recommend adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 172, 2004, Amending Chapter 26, Article IV, Division 4 of the City Code Relating to Wastewater Rates and Charges. B. Second Reading of Ordinance No. 173, 2004, Amending Chapter 26, Article VI, Division 4 of the City Code Relating to Electric Rates and Charges. C. Second Reading of Ordinance No. 175, 2004, Amending Chapter 26, Article III, Division 5, of the City Code Relating to the Raw Water Requirement for Nonresidential Service. D. Second Reading of Ordinance No. 176, 2004, Amending Chapter 26, Article XII of the City Code Relating to Budget Billing. This item consists of four Ordinances establishing the Utilities rates for 2005. These four Ordinances were adopted 6-0 (Councilmember Bertschy was absent) on First Reading on October 19, 2004. Overall, rates for utility services are proposed to increase as follows: Average Cost Per Average % Increase Household/Month Wastewater 5.00% $ .85 Electric 4.35% $1.85 First Reading of Ordinance No. 174, 2004, relating to Stormwater Fees, was postponed to November 16, 2004. ORDINANCE NO. 172, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE IV, DIVISION 4 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO WASTEWATER RATES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, 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 of the wastewater utility, as set forth therein; and WHEREAS, Section 26-277 of the Code of the City of Fort Collins, requires that the City Manager analyze the operating and financial records of the wastewater utility during each calendar year and recommend to the City Council the user rate fees or adjustments to be in effect for the following year; and WHEREAS, Section 26-277 further requires that the user rates shall be revised as necessary to assure equity of the rate system established and to assure that sufficient funds are obtained to adequately operate and maintain the wastewater system; and WHEREAS, the City Manager has recommended to the City Council that the following wastewater use rates be imposed for the billing year beginning January 1, 2005. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: See. 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of customer Rate A Single-family $18.75 per month residential user (flat rate) Single-family $8.28 per month plus $1.650 per 1,000 residential user gallons of either winter quarter water use (metered water or 3,000 gallons whichever is greater use) B Duplex (two- $29.74 per month family) residential users (flat rate) Duplex (two- $11.04 per month plus $1.650 per 1,000 family) gallons of either winter quarter water use residential users or 4,000 gallons whichever is greater (metered water use) C Multi-family $1.650 per 1,000 gallons of winter quarter residential user water use,plus a base charge of$1.30 per (more than two month per dwelling unit served dwelling units including mobile home parks) and winter quarter based nonresidential user D Minor $1.650 per 1,000 gallons of water use, nonresidential measured sewage flow or winter quarter user water use, whichever is applicable,plus the following applicable base charge: Size of water meter Base charge (inches) '/<or smaller $5.57 1 12.72 1'/z 25.76 2 43.11 3 71.64 4 120.30 6 589.84 8 640.49 E and F Intermediate $1.650 per 1,000 gallons of water use, nonresidential measured wastewater flow or winter and quarter water use, whichever is applicable; Significant plus a surcharge of$1.582 per million industrial user gallons for each milligram per liter of suspended solids in excess of 250 milligrams per liter; plus a surcharge of $1.328 per million gallons for each milligram per liter of BOD in excess of 200 milligrams per liter or a surcharge of $0.819 per million gallons for each milligram per liter of COD in excess of 300 milligrams per liter, or a surcharge of $2.377 per million gallons for each milligram per liter of TOC in excess of 100 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter Base charge (inches) '/4 or smaller $ 5.57 1 12.72 1%a 25.76 2 43.11 3 71.64 4 120.30 6 589.84 8 640.49 G User outside city The rate for users outside the city limits limits: shall be the same as for like service inside the city limits as is specified in categories A-F and H in this Section. H Special with The rate shall be negotiated agreement Section 2. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule of wastewater strength surcharge for customers located either inside or outside the city limits shall be as follows: Parameter Excess over Rate per (mg/1) 1,000 gallons BOD 200 $0.001328 COD 300 0.000819 TOC 100 0.002377 TSS 250 0.001582 Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2005. Introduced and considered favorably on first reading, and ordered published in summary form this 19th day of October, A.D. 2004, and to be presented for final passage on the 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk ORDINANCE NO. 173, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE VI, OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO RATES AND CHARGES FOR ELECTRIC SERVICE WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, 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 of the electric utility, as set forth therein; and WHEREAS, the City Manager has recommended to the City Council that the following adjustments for the rates for electric service for all billings issued on or after January 1, 2005. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the definition of"Qualifying facility" contained in Section 26-391 of the Code of the City of Fort Collins is hereby amended to read as follows: Qualifying facility shall mean an electric generating facility operated in parallel with the City of Fort Collins electric distribution system that has been inspected for compliance with City interconnection requirements, has been issued a "Permit to Operate" by the City and is operated under a valid "Interconnection Agreement'with the City of Fort Collins. Section 2. That Section 26-464(c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: Three dollars and sixty-nine cents ($3.69). (2) Demand charge, per kilowatt-hour: Two and seventy one- hundredths cents ($0.0270). (3) Distribution facilities charge, per kilowatt-hour: One and fifty-six one-hundredths cents ($0.0156). (4) Energy charge, per kilowatt-hour: One and seventy-four one- hundredths cents ($0.0174). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. Section 3. That Section 26-465(c) and (k) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. (c) Monthly rate. The monthly rates are as follows: (1) Fixed charge,per account: Six dollars and eight cents ($6.08). (2) Demand charge, per kilowatt: Three dollars and ninety-four cents ($3.94). (3) Distribution facilities charge, per kilowatt-hour: One and twelve one-hundredths cents ($0.0112). (4) Energy charge, per kilowatt-hour: One and seventy-four one- hundredths cents ($0.0174). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of monthly service charges billed pursuant to this Section. (k) Parallel generation. Customers may operate all or part of their instantaneous energy or capacity needs by operation of a qualifying facility in parallel with the utility system, provided that electric service is being rendered under the special services provisions of this schedule, and provided that such facility is constructed, operated and maintained in accordance with the provisions of the electric service rules and regulations. Section 4. That Section 26-466(c) and (1) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge,per account: a. Single-phase, two-hundred-ampere service: Two dollars and eighty-four cents ($2.84). b. Single-phase, above two-hundred-ampere service: Seven dollars and forty-six cents ($7.46). C. Three-phase, two-hundred-ampere service: Four dollars and sixty-one cents ($4.61). d. Three-phase, above two-hundred-ampere service: Eight dollars and seventy-three cents ($8.73). (2) Demand charge, per kilowatt-hour: a. First two thousand (2,000) kilowatt-hours: Three and eighty-nine one-hundredths cents ($0.0389). b. Next five thousand (5,000) kilowatt-hours: One and eighty-three one-hundredths cents ($0.0183). C. All additional kilowatt-hours: Zero ($0.00). (3) Demand charge,per kilowatt: a. All kilowatts billed in excess of twenty-five (25) kilowatts: Six dollars and seventy-nine cents ($6.79). (4) Distribution facilities charge, per kilowatt-hour: One and forty-two one-hundredths cents ($0.0142). (5) Energy charge, per kilowatt-hour: One and seventy-four one- hundredths cents ($0.0174). (6) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Parallel generation. Customers may operate all or part of their instantaneous energy or capacity needs by operation of a qualifying facility in parallel with the utility system, provided that electric service is being rendered under the special services provisions of this schedule, and provided that such facility is constructed, operated and maintained in accordance with the provisions of the electric service rules and regulations. Section 5. That paragraphs (c) (f) and (n) of Section 26-467 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: Twenty-five dollars and zero cents ($25.). An additional charge of forty dollars and zero cents ($40.) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Twelve dollars and thirty-one cents ($12.31) but not less than one cent ($.01) per kilowatt hour. (3) Distribution facilities demand charge, per kilowatt: Four dollars and thirty-one cents ($4.31). (4) Energy charge, per kilowatt-hour: One and seventy-four one- hundredths cents ( $0.0174). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (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. The monthly standby distribution charge shall be three dollars and sixty-two cents ($3.62) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten dollars and eighty-six cents ($10.86) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby Generation & Transmission Charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (1) Parallel generation. Customers may operate all or part of their instantaneous energy or capacity needs by operation of a qualifying facility in parallel with the utility system, provided that electric service is being rendered under the special services provisions of this schedule and provided that such facility is constructed, operated and maintained in accordance with the provisions of the electric service rules and regulations. Parallel generation will be provided under the terms and conditions of Platte River Power Authority's Tariff Schedule 3: Parallel Generation Purchases, as may be amended from time to time, or other applicable provisions of Platte River Power Authority Tariffs. All charges incurred by the utility under this tariff will be billed to the customer. Section 6. That paragraphs (c) (f) and (o) of Section 26-468 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26468. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge,per account: Thirty dollars and sixty cents ($30.60). a. Additional charge for each additional metering point: Twenty-five dollars and ninety-two cents ($25.92). b. An additional charge of forty dollars and zero cents ($40.) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Twelve dollars and thirteen cents ($12.13) but not less than one cent ($0.01) per kilowatt-hour. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred and fifty kilowatts: Four dollars and twenty-five cents ($4.25). b. All additional kilowatts: Two dollars and ninety-one cents ($2.91). (4) Energy charge, per kilowatt-hour: One and seventy-one one- hundredths cents ( $0.0171). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (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. The monthly standby distribution charge shall be two dollars and eighty-four cents ($2.84) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be eight dollars and fifty-two cents ($8.52) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby Generation & Transmission Charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. Section 7. That Section 26-469(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26469. Special area floodlighting, schedule FL. (b) Monthly rate. The monthly rates (including a six and zero-tenths (6.0) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp,mercury vapor: a. One-hundred-seventy-five-watt: Fifteen dollars and fifty- five cents ($15.55). b. Two-hundred-fifty-watt: Eighteen dollars and twenty-eight cents ($18.28). C. Four-hundred-watt: Twenty-three dollars and eighty-nine cents ($23.89). (2) Charge per lamp, high-pressure sodium: a. Seventy-watt: Six dollars and fifty-seven cents ($6.57). b. One-hundred-watt: Nine dollars and thirty cents ($9.30). C. One-hundred-fifty-watt: Fourteen dollars and seventy-two cents ($14.72). d. Two-hundred-fifty-watt: Eighteen dollars and seventy cents ($18.70). e. Four-hundred-watt: Twenty-four dollars and sixty-four cents ($24.64). Section 8. That Section 26-470(b) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Traffic signal service, schedule T. (c) Monthly rate. The monthly rates (including a six and zero-tenths (6.0) percent charge in lieu of taxes and franchise)are as follows: (1) Fixed charge, per account: Forty-nine dollars and fifty-one cents ($49.51). (2) Charge, per kilowatt-hour: Four and sixty-one one-hundredths cents( $0.0461). (3) Equipment rental charges, when applicable, will be determined by cost analysis by the utility. 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 9. That the amendments to Chapter 26 of the City Code contained herein shall go into effect January 1, 2005, and will be effective on all utility bills for which the electric meter reading is made on or after January 1, 2005. Introduced and considered favorably on first reading, and ordered published in summary form this 19th day of October, A.D. 2004, and to be presented for final passage on the 16th day of November, A.D. 2004. Ma r ATTEST: City Clerk 1�P1-41,,�, Passed and adopted on final reading this 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk ORDINANCE NO. 175, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE III, DIVISION 5, OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO THE RAW WATER REQUIREMENT FOR NONRESIDENTIAL SERVICE WHEREAS, in order to satisfy the City's raw water requirements, developers of residential services and nonresidential services with meters three inches or less are required to turn over to the City sufficient water rights to meet their estimated peak annual use in a 1 in 50 drought year; and WHEREAS, raw water requirements for nonresidential services with meters greater than 3 inches are based on the applicant's estimate of use as approved and accepted by the Utilities' General Manager; and WHEREAS, it has always been the intent that developers of services greater than three inches provide sufficient water rights to meet their estimated peak annual use in a I in 50 drought year as is required for smaller water services; and WHEREAS, a multiplier of 1.92 has been applied to peak annual use to estimate the water rights required in a 1 in 50 drought year; and WHEREAS, it is recommended by the City Manager and staff that the 1.92 multiplier be specified in the raw water rights requirements for new services greater than three inches in size to avoid any misunderstanding of the raw water requirement for these services. NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-149(c) is hereby amended to read as follows: See. 26-149. Raw water requirement; nonresidential service. (c) The RWR for customers requiring a meter larger than three and zero tenths (3.0)inches shall be determined by multiplying the applicant's estimate of peak annual use by 1.92 provided that such estimate is first approved and accepted by the General Manager. Introduced, considered favorably on first reading, and ordered published this 19th day of October, A.D. 2004, and to be presented for final passage on the 16th day of Nove her, A.D. 2004. ayor ATTEST: Cr �S City Clerk/ (1-e� Passed and adopted on final reading this 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk ORDINANCE NO. 176, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE XII OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO BUDGET BILLING WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services famished by the City as will produce revenues sufficient to pay the costs expenses and other obligations of the such utility, as set forth therein; and WHEREAS, Section 26-716 of the Code of the City of Fort Collins, permits single family residential customers to average out the payment of their utility bills over a 12 month period through a service referred to as budget billing; and WHEREAS,staff has recommended that the budget billing provisions of Section 26-716 of the Code be revised to ease administration of the program and better meet customer needs for stability in their monthly utility payments. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-716 of the Code of the City of Fort Collins is hereby amended to read as follows: See. 26-716. Budget billing. Single-family residential users meeting the criteria of the budget billing program may request that the Financial Officer estimate their average monthly utility charges based upon the customer's historic use of utility services and bill the customer accordingly. The monthly budget billing amount may be adjusted by the Financial Officer to reflect changes in utility rates or changes in customer usage. The Financial Officer may discontinue budget billing for any customer upon a determination that customer usage patterns or customer payment history for a particular customer indicate that the use of budget billing is not practicable. Introduced, considered favorably on first reading, and ordered published this 19th day of October,A.D.2004,and to be presented for final passage on the 16th day of November,A.D.2004. l � Mayor ATTEST:: /LUs(ESD _ ��S City Clerk Passed and adopted on final reading this 16th day of November, A.D. 2004, Mayor ATTEST: City Clerk ITEM NUMBER: 25 AGENDA ITEM SUMMARY DATE: October 19, 2004 FORT COLLINS CITY COUNCIL STAFF: Michael B. Smith Terri Bryant SUBJECT ki Y- Items Relating to Utility Rates and Charges for 2005. RECOMMENDATION Staff, the Electric Board and the Water Board recommend adoption of the Ordinances on First Reading. FINANCIAL IMPACT These Ordinances are project Cby4.35 e a a er and operating revenues by 5%, Light and Power Fund revenu and 'na and operating revenues by 7%. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 172, 2004,Amending Chapter 26,Article IV,Division 4 of the City Code Relating to Wastewater Rates and Charges. B. First Reading of Ordinance No. 173,2004,Amending Chapter 26, Article VI,Division 4 of the City Code Relating to Electric Rates and Charges. C. First Reading of Ordinance No. 174, 2004, Amending Chapter 26, Article VII, Division 2 of the City Code Relating to Stormwater Fees. D. First Reading of Ordinanc (Tr 26, Article III, Division 5, of the City Code Relati totonresidential Service. E. First Reading of Ordm 26, Article XII of the City Code Relating to Budget Billing. This item consists of five Ordinances establishing the Utilities rates for 2005. Overall, rates for utility services are proposed to increase as follows: October 19, 2004 -2- Item No. 25 Cost Per Avg % Increase Household/Month Wastewater $ Electric C35 1 5Stormwater 1 The wastewater and stormwater increases will be "across the board" and do not vary by customer class. The electric rates increases, a pass through of higher costs from the City's energy supplier, will vary by customer class(residential,commercial,industrial)and for individual customers within the class. In total, a"typical" residential customer's utility bill will increase $3.70 per month. There are no rate changes for water at this time; however, a clarification to the raw water requirement for meters greater than 3-inches is proposed. The housekeeping change is to clarify that the 1.92 multiplier (which is applied to residential and non-residential meters 3-inches or less in order to provide adequate raw water in a 1-50 drought year) also applies to services with larger meters. The Utilities and customers wil e w mo o ra n e ility under the proposed change to the budget billing procedur Curren the c t s re ' ed to pay the settle up amount for the year during the last month o e t 1 mo c tract.Th roposed Ordinance will eliminate the specific terms of the budget bill mg program from t e Code and thus permit the Utility additional operational flexibility in administering the program. BACKGROUND Wastewater This Ordinance increases the City's wastewater rates by 5%. The increase is applied "across the board" for all customers. With the proposed rate, a typical single family residential customer's monthly bill will increase from$17.02 to $17.87 or 85 cents per month. This is based on a system average 5,200 gallons per month winter quarter water use. The wastewater rate Ordinance retains the minimum winter quarter usage for single family residential customers of 3,000 gallons (4,000 for duplexes). 9 Is The wastewater rate increaseGdet Odperati, s and maintenance of the City's wastewater system and to mervice coverage requirements. Wastewater revenues have lagged projections. The wastewater rates are based on metered water consumption and over the last two years water consumption has been reduced considerably through voluntary conservation, watering restrictions and most recently the mild weather. Since the vast majority of wastewater expenses are fixed and are unrelated to the amount of wastewater processed the rate increase is necessary to generate sufficient revenue to meet the utilities obligations for debt and operations. October 19, 2004 -3- Item No. 25 Electric Electric rates are proposed to increase an average of 4.35%. The increase is solely due to a 5.9% rate increase from Platte Rive o r lesale electric supplier. The wholesale increase equates t n oveY()f' e rt Collins customers. The rate increase is required by Platte er due drive • Increased purchase power costs (hydropower and market purchases) • Decreased availability of inexpensive hydropower(due to drought conditions) • Increased capital investment requirements (transmission and 4th peaking unit) • Decreasing surplus sales revenue • Decreasing investment income • Increased debt service (payments on new financing for peaking units) The energy and demand component of each retail rate schedule will increase 5.9%. The distribution and fixed charges are not increasing. Large industrial and large commercial customers will experience greater increases than residential and smaller commercial customers since purchase power energy and demand components make up a greater percentage of the larger customers'electric bills. The proposed rate increases v y c t er c s d s wn the following table. Individual customers within these rate cl ses wil ary fr ass rage. With the proposed rates, a typical single family residentia sto a mo 1 ill will i rease 4.0% from$46.58 to$48.43 or$1.85 cents per month. This is ased on a system average or residential customers of 700 kWh per month. Proposed Electric Increases by Customer Rate Class Residential Energy Service 3.9% Residential Demand Service 4.3% General Service (Small Commercial) 4.3% General Service 50 (Medium Commercial) 4.5% General Service 750 5.0% (Large Commercial & Industrial) Floodlighting 1.1% Traffic Signals 4.2% Housekeeping changes in the Cctnca Ordi include: • Increase the fixed cost by $20 per month for those large commercial and industrial customers who do not permit the utility to access their telephone lines for reading the meter. In these cases the utility must manually read the meter or use a cell phone to communicate with the meter. October 19, 2004 -4- Item No. 25 • Provide that customers who generate a portion of their power through parallel generation (or distributed generation)will be served under the special services provision of the rate schedule. This permits more flexibility for both the utility and customer than the requirement that par elgger o to ed under the standby provision. The Ordinance also dates t Platt i r e ority tariff reference in this code provision. Further a term uali n acility" erenced in the Code language for parallel generation h n r ' t liminat a reference to the Public Utilities Regulatory Policy Act of 1978. Instead, the Utilities will inspect the facility for compliance with interconnection requirements to ensure the safety of the Utilities' workers and the public and then issue a permit to operate under an interconnection agreement. • Revise the standby service charges provisions to permit the Utilities to pass through to the customer those generation and transmission charges accessed to the Utilities by Platte River through its tariffs. These standby generation and transmission charges only apply to customers with standby loads of one megawatt or greater. Stormwater The City's stormwater rates will increase 7% "across the board"for all customers if adopted by City Council. The 7% increase is c 1ste t 0 at inancing Plan adopted by City Council Resolution 2001-93. kay ncre a is n e o fu a operations and maintenance of the City's stormwater system, erv' a to Conti a the acceleration of the citywide capital improvements programtypical single amily residential customer's monthly bill will increase from$14.26 to$15.26 or$1.00 per month. The typical bill is based on an 8,600 square foot lot with light run off. In addition, the Ordinance provides for the Utilities General Manager to adjust the area utilized in calculating the monthly stormwater fee for large residential lots that are one-half acre or greater and for properties used for agricultural purposes. These parcels may have lesser stormwater runoff than typical developments and the proposed provision would permit the General Manager the flexibility to recognize this difference. Water There are no rate changes for water at this time; however, a clarification to the raw water requirement for meters greater thcaside Pnd T o eeping change is to clarify that the 1.92 multiplier (which is lied tolon s' ential meters 3-inches or less in order to provide adequate ra ater inear) so applies to services with larger meters. Although no water rate changes are recommended to be effective January 1,2005,it should be noted that water consumption has dropped through the first eight months of 2004,despite expectations that water use would increase slightly after mandatory water restrictions were eliminated. If the revenue trend continues, the Utilities may have to reconsider the need for a rate adjustment at some later point in 2005 in order to meet debt service requirements and the fixed costs of operation. October 19, 2004 -5- Item No. 25 Budget Billing Budget billing is a service offered to single family residential customers in order to average out seasonal variances in their utilit h t 'n s ar ecified in the code. Currently, the Code requires that custo s wh n up r e og ay eleven equal monthly utility payments based on past hist for th cco the tw th month the customer pays the outstanding balance or receives dI[fo h ff nce bet the 11 payments they have made and their actual costs during the period. The proposed Ordinance will eliminate the specific terms of the budget billing program from the Code and thus permit the Utilities additional operational flexibility in administering the program. In particular it may be desirable to roll the annual settle up balance into the following year's budget amount. This change facilitates the administration of the budget billing process and provides customers with a better payment option in cases where there is a large settle up amount due. The Ordinance also provides for mid-contract budget billing adjustments when the variance falls outside of acceptable ranges,and termination of budget billing when circumstances make that billing mechanism problematic. Impact on Typical Residential Customer The following table summarizeCfamily aO Pertm1c]ntr e tri ,wastewater and stormwater rate adjustments on a typical sing e onthly utility bill. In total, this "typical" customer's utility bilrh Typical Residential Customer—Monthly Utility Bill Current Proposed $ % 2004 2005 Increase Increase Electric $46.58 $48.43 $1.85 4.00% 700 kWh per month Wastewater $17.02 $17.87 $0.85 5.00% 5,200 gallons/month winter quarter use Stormwater $14.26 $15.26 $1.00 7.00% 8,600 sq ft lot, light runoff , 7- Water January 5,000 gallons 21.6 T$ 2 100 0.00% July 15,000 gallons $43.16 $43.16 $0.00 0.00% Total Monthly Utility Bill Jan Water Use $99.48 $103.18 $3.70 3.72% Jul Water Use $121.02 1 $124.72 $3.70 3.06% Note: July water use reflects reduced average usages in 2003-2004. October 19, 2004 -6. Item No. 25 Board Recommendations: The Electric Board passed a motion recommending that City Council approve adoption of the electric rates at its September 15 E Water Board passed a similar motion recommending Council prov 1 the t at an water rates and the clarification to the raw water requirement meter eat h -inche t the September 23, 2004, Water Board meeting. The Board min e a Single Family Utility Cost Comparison—2004 Rates $120 January Water Use $100 m S80 2` $60 r $40 0 $20 $0 s` _ y 0 C W e M w O C Y t'y — C C yp 0WO O J J t.1 y m x C x V O U Q6 N 0. C x IL ILL 1 SC o Electric-700kWly Water-5,000 gal pWW-5200WQA 0 SW-8600agk $160 July Water Use $140 m s120 $100 Li $80 S60 YAr 0 sao s20 S0 O�. 0 Y 0 Y C E a o U a u Y G e o v 0: v u 3 3 vi m0 x x o R o $ a x IL e. a p Electric.700 kWhE WATER-15,000 gall W W-5200 WOA M SW.8600 sq ft Sources: Electric Rates: Colorado Association of Municipal Utilities Survey dated July 1, 2004 Survey; Water, Wastewater and Stormwater: various city web sites. Note: Loveland and Longmont will also experience a 5.9% increase in their wholesale power purchases from Platte River Power Authority in January 2005. It is anticipated that their retail electric rates will also have to increase in 2005.