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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/02/2009 - ITEMS RELATING TO CERTAIN UTILITY SERVICE PROGRAMS ITEM NUMBER: 10 A-B AGENDA ITEM SUMMARY DATE: June 2, 2009 FORT COLLINS CITY COUNCIL STAFF: Terri Bryant Steve Catanach Patty Bigner SUBJECT Items Relating to Certain Utility Service Programs and Requirements. RECOMMENDATION Staff recommends adoption of these Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 056,2009,Amending Chapter 26,Article VI,of the City Code Relating to Certain Electric Service Programs and Requirements. B. Second Reading of Ordinance No. 057,2009,Amending Chapter 26,Article III,Division 6 of the City Code Relating to Water Conservation. The two Ordinances, unanimously adopted on First Reading on May 19,2009, make housekeeping changes to more closely align Code requirements with current utility programs and practices. The changes do not represent any change in policy or direction. There will be no increase or decrease in customers' utility rates. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - May 19, 2009. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 12 A-B AGENDA ITEM SUMMARY DATE: May 19, 2009 FORT COLLINS CIT=Y.NC0,UNCIL STAFF: Terri Bryant 717 Steve Catanach l l Patty Bigner J L i SUBJECT Items Relating to Certain Utility Service Programs and Requirements. RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. FINANCIAL IMPACT ��� jf The proposed ordinances clarify ands codify \isti�n p acti es? There will be no increase or decrease in customers' utility-raatt�es. The���no impact or tility revenues or expenses. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 056, 2009, Amending Chapter 26, Article VI, of the City Code Relating to Certain Electric Service Programs and Requirements. B. First Reading of Ordinance No. 057,2009,Amending Chapter 26,Article III, Division 6 of the City Code Relating to Water Conservation. Revisions in the two proposed Ordinances are housekeeping changes to more closely align Code requirements with current utility programs and practices. The changes outlined below do not represent any change in policy or direction. There will be no increase or decrease in customers' utility rates. BACKGROUND (7, Utility energy and water conservation programs have expanded to meet customer demands and implement Council policy. Existing Code language does not provide for flexibility in the administration of the new multiple rebate,conservation assistance,and incentive programs. Existing Code language also does not identify renewable energy sources other than wind. The proposed Ordinances are minor housekeeping changes that provide clarification within the Code simplifying program administration and codifying and defining renewable sources and premium rate for the renewable energy program. May 19, 2009 -2- Item No. 12 A-B Other housekeeping changes included in the Ordinances modify the Code language in the Special Services Agreements to be representative of similar Code language for Water, Wastewater, and Stormwater, and clarify the power factor adjustment for billing purposes. � 477� 7 `�T 7� A. ELECTRIC RATE HOUSEKEEPING CHANGES (Ordinance No. 056, 2009) • Renewable Resource 1� Each residential, commercial and industrial electric rate schedule in the City Code provides that customers may enter into a special services agreement to purchase energy generated by the power of wind at a premium price. The renewable energy which the City purchases from Platte River Power Authority includes energy from renewable resources other than wind generated energy. To reflect this mix of renewable resources, the renewable resources paragraph has been rewritten to broaden the description of renewable resources to include other sources of renewable energy. In addition, the proposed Ordinance specifically provides that the premium price is one cent per kilowatt hour and eliminates the requirement for a special services agreement for renewable energy customers. The one cent per kilowatt-hour premium has been charged since June 2004, but was previously specified in the customer's special services agreement and was not included in City Code. 4 7- The proposed Renewable Resource paragraph also clarifies tha�the utility may establish and offer voluntary programs to increaseUnd enhance the use of energy generated by renewable resources and for energy conservation in supporLoPCouncilsa$opted policy.lL • Water Heater Control Rebate/Conservation Assistance, Rebates and Incentives The current residential rate schedules provide specific detail on how the rebates are administered for the water heater control demand side management program initiated in the 1970's. To simplify administration, this program has evolved from an annual cash rebate to a monthly credit on the customer's utility bill. The Ordinance deletes the residential Water Heater Control Rebate paragraphs. The proposed ordinance adds a new paragraph in each residential, commercial and industrial rate schedule authorizing assistance incentives and rebates to customers who participate in utility programs to reduce energy consumption or reduce system peak demands in support of Council adopted policy. The utility currently offers a variety of programs which include such incentives and rebates. • Special Services Agreements_q � ,� Pide � .\vlCurrent Code authorizes the eleetric VV�i'iI%ty toproecial services beyond those required for basic service through a special services agreementBCurrent_Code further authorizes the Utilities General Manager to establish rates, fees and charges for these agreements based on applicable cost of service criteria. In order to be consistent with the special services agreements authorized in City Code for the water,wastewater,and stormwater utilities and to comply with the Charter requirement that City Council set Utilities rates,fees and charges,the proposed Ordinance revises this paragraph in all the electric rates schedules to read: "Special services or complex service arrangements that are beyond those required for basic residential electric service may be arranged by a written services agreement that the General Manager may negotiate and enter into on behalf of the utility. Said May 19, 2009 -3- Item No. 12 A-B agreement shall establish the terms and conditions for any special services or arrangements and shall incorporate by reference the requirements of this Chapter, as applicable. Any special services agreement modifying the rates, fees or charges for said services from those set forth in this Article shall be subject to approval by theme-ity Councihin=accordance;with § 6 of Article XII of the Charter." V • Power Factor Adjustment The proposed Ordinance clarifies that the power factor adjustment computation will utilize the full decimal accuracy of the meter by inserting the phase "or fraction thereof' in the power factor adjustment calculation description. B. WATER CONSERVATION HOUSEKEEPING CHANGE(Ordinance No.057,2009) • Conservation Assistance, Rebates and Incentives This Ordinance adds a new section in City Code Chapter 26 Division 6—Water Conservation. The new section authorizes the water utility to provide assistance, incentives and rebates to customers who participate in programs designed to reduce water consumption or reduce system peak demands in support of Council adopted water conservation policy. The utility currently offers a variety of programs which include such�/,ince\tiies--and •rebate`.--;�7Thi section mirrors the proposed Conservation Assistance, Rebates and In�c�entive)ss paragraph proposed in Ordinance No. 056, 2009. ORDINANCE NO. 056, 2009 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 CERTAIN ELECTRIC SERVICE PROGRAMS AND REQUIREMENTS WHEREAS,new forms of renewable energy routinely become available to the City's Utility through its energy generator, Platte River Power Authority("Platte River"); and WHEREAS, Platte River's efforts to further develop new forms of renewable energy resources have allowed the Utility to provide newly developed forms of renewable energy to City utility customers; and WHEREAS, the City Council intends that the renewable resources energy program be sufficiently flexible to allow the purchase of various forms of newly developed or newly available renewable energy; and WHEREAS, energy conservation programs have expanded to meet customer demand in accordance with Council-adopted policy; and WHEREAS,the City Council intends that the energy conservation programs as discussed in the electric rate schedules found in Chapter 26, Article VI of the City Code allow for the administration of newly developed energy conservation programs; and WHEREAS, in order to clarify that the special services agreements are available to electric utility customers in a manner consistent with City Code language applicable to the other City utilities functions, staff has proposed certain revisions to the City Code; and WHEREAS, staff has proposed additional revisions to the City Code in order to clarify that the Utility may more accurately calculate power factor adjustment for its larger commercial and industrial customers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-464 of the Code of the City of Fort Collins is hereby amended to read as follows: See. 26-464. Residential energy service, schedule R. (a) Availability. The residential energy service, schedule R, shall be available within the corporate limits of the City and the suburban fringe. (b) Applicability.This schedule applies to residential customers for all domestic uses in single-family dwellings, individually metered apartments and home occupations as defined in Article 5 of the Land Use Code.This schedule may also be applied to existing master metered residential buildings served under this schedule prior to January 1, 1980. Master metering is not available for new or remodeled residential buildings with more than one (1) dwelling unit unless authorized by the General Manager. This schedule does not apply to auxiliary or standby service. (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 eighty-eight one- hundredths cents ($0.0288). (3) Distribution facilities charge, per kilowatt-hour: One and fifty-six one-hundredths cents ($0.0156). (4) Energy charge,per kilowatt-hour:One and eighty-six one-hundredths cents ($0.0186). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources,including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium price of one cent($.01) 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. (e) Excess capacity charge.A monthly capacity charge of two dollars($2.)per kilowatt may be added to the above charges for service to intermittent loads in accordance with the provisions of the electric service rules and regulations. (f) Service charge. Service charges and connection fees shall be as set forth in Subsection 26-712(b). (g) Conservation Assistance,Rebates and Incentives. The utility may establish programs to assist customers or provide incentives to customers in order to reduce energy consumption or system peak demands consistent with Council-adopted policy applicable to the utility. Such programs may include financial or technical assistance, incentives or rebates and shall be consistent with program objectives approved by the General Manager. -2- (h) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the City after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot. The service rights fee charged pursuant to this Subsection shall not be.subject to a charge in lieu of taxes and franchise otherwise required in this Section. (i) Special services. Special services or complex service arrangements that are beyond those required for service under this rate schedule-may be arranged by a written services agreement that the General Manager may negotiate and enter into on behalf of the utility. Said agreement shall establish the terms and conditions for any special services or arrangements and shall incorporate by reference the requirements of this Chapter, as applicable. Any special services agreement modifying the rates, fees or charges for said services from those set forth in this Article shall be subject to approval by the City Council in accordance with Section 6 of Article XII of the Charter. (j) Parallel generation. Operation or connection of any electric generator in parallel with the utility system is not permitted under this schedule unless authorized by the General Manager. See appropriate alternate schedules for this service. (k) Commodity delivery. If the electric utility authorizes the delivery of electric capacity or energy utilizing the utility's distribution system under mandatory provisions of state or federal law, a credit will be applied to the customer's monthly electric bill based upon the electric utility's displaced costs as credited to the utility by its supplier of electric energy.Capacity,energy,standby capacity,backup capacity and special services shall be delivered,metered, billed, dispatched and controlled in accordance with a special services agreement with the electric utility. (1) Payment of charges. The foregoing rates are net. Payment becomes delinquent twenty-five (25) days after the billing date. (m) Contract period. The applicant shall take electric service under this or any other applicable schedule which is in effect during the term of the contract subject to adjustment from time to time by the City Council. All contracts under this -3- schedule shall be for twelve (12) months and shall be automatically renewed annually. The contract may be terminated at the end of the term upon the giving of thirty (30) days' advance written notice to the City or may be terminated upon the giving of thirty(30)days'advance written notice to the City in the event of vacation of the premises or a change in ownership or tenant occupancy status. During the first ninety(90)days after initiating electric service under this schedule,the customer may request a one-time rate change to schedule RD. (n) Rules and regulations. Service supplied under this schedule is subject to the terms and conditions set forth in the electric utility rules and regulations as approved by the City Council. Copies may be obtained from the Utility's Customer Service Office. Section 2. That Section 26-465 of the Code of the city of Fort Collins is hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. (a) Availability. The residential demand service rate, schedule RD, shall be available within the corporate limits of the City and the suburban fringe. (b) Applicability. This schedule applies to residential customers for all domestic uses in single-family private dwellings, individually metered apartments and home occupations as defined in Article 5 of the Land Use Code. (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:Four dollars and nineteen cents($4.19). (3) Distribution facilities charge,per kilowatt-hour:One and twelve one- hundredths cents ($0.0112). (4) Energy charge,per kilowatt-hour:One and eighty-six one-hundredths cents ($0.0186). (5) In lieu of taxes and franchise: A charge at the rate of six and zero- tenths(6.0)percent of monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources,including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium price of one cent($.01) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of -4- energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. (e) Excess capacity charge. A monthly capacity charge of two dollars($2.)per kilowatt may be added to the above charges for service to intermittent loads in accordance with the provisions of the electric service rules and regulations. (0 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) The monthly standby distribution charge shall be one dollar and twenty-one cents ($1.21) 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 three dollars and sixty-three cents($3.63) per kilowatt. (2) 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. (g) Service charge. Service charges and connection fees shall be as set forth in Subsection 26-712(b). (h) Conservation Assistance,Rebates and Incentives. The utility may establish programs to assist customers or provide incentives to customers in order to reduce energy consumption or system peak demands consistent with Council-adopted policy applicable to the utility. Such programs may include financial or technical assistance, incentives or rebates and shall be consistent with program objectives approved by the General Manager. (i) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the City after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot. The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. 0) Special services. Special services or complex service arrangements beyond those normally provided for service under this rate schedule may be arranged by a written services agreement that the General Manager may negotiate and enter into on behalf of the utility. Said agreement shall establish the terms and conditions for any special services or arrangements and shall incorporate by reference the requirements of this Chapter, as applicable. Any special services agreement modifying the rates, fees or charges for said services from those set forth in this Article shall be subject to approval by the City Council in accordance with Section 6 of Article XII of the Charter. (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 further that such facility is constructed, operated and maintained in accordance with the provisions of the electric service rules and regulations. (1) Commodity delivery. If the electric utility authorizes the delivery of electric capacity or energy utilizing the utility's distribution system under mandatory provisions of state or federal law, a credit will be applied to the customer's monthly electric bill based upon the electric utility's displaced costs as credited to the utility by its supplier of electric energy.Capacity,energy,standby capacity,backup capacity and special services shall be delivered,metered, billed,dispatched and controlled in accordance with a special services agreement with the electric utility. (m) Payment of charges. The foregoing rates are net. Payment becomes delinquent twenty-five (25) days after the billing date. (n) Billing demand. The billing demand shall be determined for each point of delivery by suitable meter measurement of the highest fifteen-minute integrated demand occurring during the billing period. (o) Contract period. The applicant shall take electric service under this or any other applicable schedule which is in effect during the term of the contract subject to adjustment from time to time by the City Council. All contracts under this schedule shall be for twelve (12) months and shall be automatically renewed -6- annually. The contract may be terminated at the end of the term upon the giving of ten (10) days' advance written notice to the City or may be terminated upon the giving of ten(10)days'advance written notice to the City in the event of vacation of the premises or a change in ownership or tenant occupancy status. During the first ninety(90)days after initiating electric service under this schedule,the customer may request a one-time rate change to schedule R. (p) Rules and regulations. Service supplied under this schedule is subject to the terms and conditions set forth in the City electric utility rules and regulations as approved by the City Council. Copies may be obtained from the Utility's Customer Service Office. Section 3. That Section 26-466 ofthe Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (a) Availability. The schedule GS shall be available within the corporate limits of the City and the suburban fringe. (b) Applicability. This schedule applies to individual commercial and industrial services,served at the established secondary voltage of the City's distribution system; and optionally, for apartments and multiple dwellings in existence prior to January 1, 1980,or as authorized by the Director,where more than one(1)dwelling or single living quarters are served through one (1) meter. Single-phase motors from one (1) to five (5) horsepower may be connected with the approval of the utility. This schedule applies to an individual single or three-phase service with an average metered demand of not greater than fifty (50) kilowatts. (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). -7- (2) Demand charge, per kilowatt-hour: a. First two thousand (2,000) kilowatt-hours: Four and fourteen one-hundredths cents ($0.0414). b. Next five thousand(5,000) kilowatt-hours: One and ninety-five one-hundredths cents ($0.0195). c. All additional kilowatt-hours: Zero ($0.00). (3) Demand charge, per kilowatt: a. All kilowatts billed in excess of twenty-five (25) kilowatts: Seven dollars and twenty-four cents ($7.24). (4) Distribution facilities charge, per kilowatt-hour: One and forty-two one-hundredths cents ($0.0142). (5) Energy charge,per kilowatt-hour:One and eighty-six one-hundredths cents ($0.0186). (6) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths(6.0) percent of all monthly service charges billed pursuant to this Section. (d) Renenable resource. Renewable energy resources,including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium price of one cent($.01)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. (e) Excess capacity charge. A monthly capacity charge of two dollars($2.)per kilowatt may be added to the above charges for service to intermittent loads in accordance with the provisions of the electric service rules and regulations. (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) The monthly standby distribution charge shall be two dollars and fifty-five cents ($2.55) 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 -8- distribution charge shall be seven dollars and sixty-five cents($7.65) per kilowatt. (2) 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. (g) Service charge. Service charges and connection fees shall be as set forth in Subsection 26-712(b). (h) Conservation Assistance, Rebates and Incentives. The utility may establish programs to assist customers or provide incentives to customers in order to reduce energy consumption or system peak demands consistent with Council-adopted policy applicable to the utility. Such programs may include financial or technical assistance, incentives or rebates and shall be consistent with program objectives approved by the General Manager. (i) Billing demand. The billing demand shall be determined for each point of delivery by suitable meter measurement of the highest fifteen-minute integrated demand occurring during the billing period. 0) Power factor adjustment. Power factor shall be determined by using watt and volt-ampere measurements collected by the electric meter at the point of service. The power factor calculated from such measurements shall be the basis of billing adjustment until satisfactory correction has been made. Review shall be conducted on a monthly basis by the utility. If the power factor falls below ninety-percent lagging,a power factor adjustment may be made by increasing the billing demand by one(1)percent for each one(1)percent or fraction thereof by which the power factor is less than ninety-percent lagging. This adjustment shall be based on the power factor at the time of maximum demand as recorded during the billing period. (k) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service'rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the City after April 22, 1989, if such area was previously served by PVREA. The service rights will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. In -9- the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land, the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot. The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. (lk) Special services. Special services or complex service arrangements beyond those normally provided for service under this rate schedule may be arranged by a written services agreement that the General Manager may negotiate and enter into on behalf of the utility. Said agreement shall establish the terms and conditions for any special services or arrangements and shall incorporate by reference the requirements of this Chapter, as applicable. Any special services agreement modifying the rates, fees or charges for said services from those set forth in this Article shall be subject to approval by the City Council in accordance with Section 6 of Article XII of the Charter. (m) Parallel generation. Customers may operate all or part of their instantaneous energy or capacity needs by operation of 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 further that such facility is constructed, operated and maintained in accordance with the provisions of the electric service rules and regulations. (n) Commodity delivery. If the electric utility authorizes the delivery of electric capacity or energy utilizing the utility's distribution system under mandatory provisions of state or federal law, a credit will be applied to the customer's monthly electric bill based upon the electric utility's displaced costs as credited to the utility by its supplier of electric energy.Capacity,energy,standby capacity,backup capacity and special services shall be delivered,metered, billed,dispatched and controlled in accordance with a special services agreement with the electric utility. (o) Payment of charges. The foregoing rates are net. Payment becomes delinquent twenty-five (25) days after the billing date. (p) Contract period. The applicant shall take electric service under this or any other applicable schedule which is in effect during the term of the contract subject to adjustment from time to time by the City Council. All contracts under this schedule shall be for twelve (12) months and shall be automatically renewed annually. The contract may be terminated at the end of the term upon the giving of ten (10) days' advance written notice to the City or may be terminated upon the giving of ten(10)days' advance written notice to the City in the event of vacation of the premises or a change in ownership or tenant occupancy status. -10- (q) Rules and regulations. Service supplied under this schedule is subject to the terms and conditions set forth in the electric utility rules and regulations as approved by the City Council. Copies may be obtained from the Utility's Customer Service Office. Section 4. That Section 26-467 of the Code of the City of Fort Col lins is hereby amended to read as follows: See. 26-467. General service 50, schedule GS50. (a) Availability. The general service 50, schedule GS50 shall be available within the corporate limits of the City and the suburban fringe. (b) Applicability. This schedule applies to customers served at the established secondary voltage of the City's distribution system. This schedule applies only to individual services with an average metered demand not less than fifty(50)kilowatts and not greater than seven hundred fifty(750) kilowatts. (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: Thirteen dollars and twelve cents ($13.12) but not less than one cent ($.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 eighty-six one-hundredths cents ($0.0186). (5) In lieu of taxes and franchise: A charge at the rate of six and zero- tenths(6.0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources,including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium price of one cent($.01) 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. -11- (e) Excess capacity charge. A monthly capacity charge of two dollars($2.)per kilowatt may be added to the above charges for service to intermittent loads in accordance with the provisions of the electric service rules and regulations. 1 (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 and 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. (g) Service charge. Service charges and connection fees shall be as set forth in Subsection 26-712(b). (h) Conservation Assistance, Rebates and Incentives. The utility may establish programs to assist customers or provide incentives to customers in order to reduce energy consumption or system peak demands consistent with Council-adopted policy applicable to the utility. Such programs may include financial or technical assistance, incentives or rebates and shall be consistent with program objectives approved by the General Manager. (i) Coincident demand. The coincident demand for any month shall be the customer's sixty-minute integrated kilowatt demand recorded at the hour coincident with the monthly system peak demand for Platte River Power Authority.The monthly -12- system peak demand for Platte River Power Authority shall be the maximum coincident sum of the measured demands for the participating municipalities recorded during the billing month. 0) Distribution facilities demand. The distribution facilities demand shall be determined for each point of delivery by suitable meter measurement of the highest one-hour integrated demand occurring during the billing period and shall not be less than seventy (70)percent of the highest distribution facilities demand(in kilowatts) occurring in any of the preceding eleven (11) months. (k) Power factor adjustment. Power factor shall be determined by using watt and volt-ampere reactive measurements collected by the electric meter at the point of service. The power factor calculated from such measurements shall be the basis of billing adjustment until satisfactory correction has been made. Review shall be conducted on a monthly basis by the utility. If the power factor falls below ninety- percent lagging,a power factor adjustment may be made by increasing the coincident and distribution facilities demand by one (1) percent for each one (1) percent or fraction thereof by which the power factor is less than ninety-percent lagging. This. adjustment shall be based on the power factor at the time of maximum demand as recorded during the billing period. (1) Primary service. When service is metered under this schedule at primary voltage,a discount shall be made each month of one and one-half(1'/z)percent of the bill for service. Where service is taken at the City's established primary voltage and the City does not own the transformers and substations converting to secondary voltage, an additional credit of two (2) percent of the monthly bill shall be allowed. (m) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the City after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA,the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot.The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Subsection. -13- (n) Special services. Special services or complex service arrangements beyond those normally provided for service under this rate schedule may be arranged by a written services agreement that the General Manager may negotiate and enter into on behalf of the utility. Said agreement shall establish the terms and conditions for any special services or arrangements and shall incorporate by reference the requirements of this Chapter, as applicable. Any special services agreement modifying the rates, fees or charges for said services from those set forth in this Article shall be subject to approval by the City Council in accordance with Section 6 of Article XII of the Charter. (o) 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. (p) Commodity delivery. If the electric utility authorizes the delivery of electric capacity or energy utilizing the utility's distribution system under mandatory provisions of state or federal law, a credit will be applied to the customer's monthly electric bill based upon the electric utility's displaced costs as credited to the utility by its supplier of electric energy.Capacity,energy,standby capacity,backup capacity and special services shall be delivered, metered,billed,dispatched and controlled in accordance with a special services agreement with the electric utility. (q) Payment of charges. The foregoing rates are net. Payment becomes delinquent twenty-five (25) days after the billing date. (r) Contract period. The applicant shall take electric service under this or any other applicable schedule which is in effect during the term of the contract, subject to adjustment from time to time by the City Council. All contracts under this schedule shall be for twelve (12) months and shall be automatically renewed annually. The contract may be terminated at the end of the term upon the giving of thirty (30) days' advance written notice to the City or may be terminated upon the giving of thirty(30)days'advance written notice to the City in the event of vacation of the premises or a change in ownership or tenant occupancy status. (s) Rules and regulations. Service supplied under this schedule is subject to the terms and conditions set forth in the electric utility rules and regulations as approved by the City Council. Copies may be obtained from the Utility's Customer Service Office. -14- Section 5. That Section 26-468 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-468. General service 750, schedule GS750. (a) Availability. The general service 750, schedule GS750 shall be available within the corporate limits of the City and the suburban fringe. (b) Applicability. This schedule applies to customers served at the primary voltage of the City's electric system, thirteen thousand two hundred/seven thousand six hundred twenty (13,200/7,620) volts nominal for three-phase power. This schedule applies only to individual services with an average metered demand of seven hundred fifty (750) kilowatts or greater. The General Manager, at his or her option, may enter into individual, written agreements with customers having an aggregated connected load of one thousand (1,000) kilowatts or more, which agreements shall establish the services to be provided and the amount to be charged to such customers. (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 ninety- two cents ($12.92) but not less than one cent ($0.01) per kilowatt- hour. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) 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 eighty-three one- hundredths cents ($0.0183). -15- (5) In lieu of taxes and franchise: A charge at the rate of six and zero- tenths(6.0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources, including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium price of one cent ($.O1) 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. (e) Excess capacity charge. A monthly capacity charge of two dollars($2.)per kilowatt may be added to the above charges for service to intermittent loads in accordance with the provisions of the electric service rules and regulations. (0 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 and transmission charge. All charges incurred by the utility under the 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. (g) Service charge. Service charges and connection fees shall be as set forth in Subsection 26-712(b). -16- (h) Conservation Assistance, Rebates and Incentives. The utility may establish programs to assist customers or provide incentives to customers in order to reduce energy consumption or system peak demands consistent with Council-adopted policy applicable to the utility. Such programs may include financial or technical assistance, incentives or rebates and shall be consistent with program objectives approved by the General Manager. (i) Coincident demand. The coincident demand for any month shall be the customer's sixty-minute integrated kilowatt demand recorded at the hour coincident with the monthly system peak demand for Platte River Power Authority.The monthly system peak demand for Platte River Power Authority shall be the maximum coincident sum of the measured demands for the participating municipalities recorded during the billing month. 0) Distribution facilities demand. The distribution facilities demand shall be determined for each point of delivery by suitable meter measurement of the highest one-hour integrated demand occurring during the billing period and shall not be less than seventy-five (75) percent of the highest distribution facilities demand (in kilowatts) occurring in any of the preceding eleven (11) months. (k) Interruptible service. Interruptible service may be provided in accordance with the terms and conditions described in a special services agreement between the customer and the utility. (1) Power factor adjustment. Power factor shall be determined by using watt and volt-ampere reactive measurements collected by the electric meter at the point of service. The power factor calculated from such measurements shall be the basis of billing adjustment until satisfactory correction has been made. Review.shall be conducted on a monthly basis by the utility. If the power factor falls below ninety- percent lagging,a power factor adjustment may be ma&by increasing the coincident and distribution facilities demand by one (1) percent for each one (1) percent or fraction thereof by which the power factor is less than ninety-percent lagging. This adjustment shall be based on the power factor at the time of maximum demand as recorded during the billing period. (m) Secondary service. Where service is rendered under this schedule at secondary voltage and the City owns and furnishes the transformer and substation converting to the lower voltage desired by the customer, an additional charge shall be made each month of two (2) percent of the bill for service. If, for any reason, metering is accomplished at secondary voltage,an additional one and one-half(1%z) percent shall be added to the monthly bill. Instrument-rated metering transformers shall be at the expense of the owner.The utility may require that transformers greater than one thousand(1,000)kilo volt-amperes be owned by the customer and that such load be primary metered. -17- (n) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the City after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA,the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land;the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this. (o) Special services. Special services or complex service arrangements beyond those normally provided for service under this rate schedule may be arranged by a written services agreement that the General Manager may negotiate and enter into on behalf of the utility. Said agreement shall establish the terms and conditions for any spec ial'services or arrangements and shall incorporate by reference the requirements of this Chapter, as applicable. Any special services agreement modifying the rates, fees or charges for said services from those set forth in this Article shall be subject to approval by the City Council in accordance with Section 6 of Article XII of the Charter. (p) Parallel generation. Customers may generate 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 standby provisions of the schedule, and provided further that such facility is constructed operated and maintained in accordance with the provisions of the electric service rules and regulations. Parallel generation in excess of one(1) megawatt will be provided under the terms and conditions of Platte River Power Authority's Tariff —Schedule 10: Back-up Service. All charges incurred by the utility under this tariff will be billed to the customer. (q) Commodity delivery. If the electric utility authorizes the delivery of electric capacity or energy utilizing the utility's distribution system under mandatory provisions of state or federal law, a credit will be applied to the customer's monthly electric bill based upon the electric utility's displaced costs as credited to the utility by its supplier of electric energy.Capacity,energy,standby capacity,backup capacity and special services shall be delivered,metered, billed,dispatched and controlled in accordance with a special services agreement with the electric utility. -18- (r) Payment of charges. The foregoing rates are net. Payment becomes delinquent twenty-five(25) days after the billing date. (s) Contract period. The applicant shall take electric service under this or any other applicable schedule which is in effect during the term of the contract subject to adjustment from time to time by the City Council. All contracts under this schedule shall be for twelve (12) months with automatic renewal on a year-to-year basis. The contract may be terminated at the end of the term upon the giving of one (1)year's advance written notice to the City or may be terminated upon the giving of one (1) year's advance written notice to the City in the event of vacation of the premises or a change in ownership or tenant occupancy status. (t) Rules and regulations. Service supplied under this schedule is subject to the terms and conditions set forth in the electric utility rules and regulations as approved by the City Council. Copies may be obtained from the Utility's Customer Service Office. Introduced, considered favorably on first reading, and ordered published this 19th day of May, A.D. 2009, and to be presented for final passage on the 2 y of June, A.D. 2009. Mayo ATTEST: - 'A fps Chief Deputy City Clerk Passed and adopted on final reading on the 2nd day of June, A.D. 2009. Mayor ATTEST: City Clerk -19- ORDINANCE NO. 057, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLIES AMENDING CHAPTER 26, ARTICLE III, DIVISION 6 OF THE CITY CODE RELATING TO WATER CONSERVATION WHEREAS, new forms of water conservation are constantly appearing in the open market; and WHEREAS, water conservation programs have expanded to meet customer demand in accordance with City Council-adopted demand-related policy; and WHEREAS, current language in the City Code regarding conservation assistance, rebates and incentives does not provide Utility Services with sufficient flexibility in the administration of newly developed water conservation programs; and WHEREAS, in order to clarify that the Water Utility may offer its customers the opportunity to participate in voluntary programs designed to reduce water consumption or system peak demands consistent with City Council-adopted policy, staff has proposed the addition of a new section to the Water Conservation division of Article III, Chapter 26 of the City Code to that effect. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLIES that the Code of the City of Fort Collins is hereby amended by the addition of a new Section 26-170 which shall read in its entirety as follows: Sec. 26-170. Conservation assistance, rebates and incentives. The utility may establish programs to assist customers or provide incentives to customers in order to reduce water consumption or system peak demands consistent with Council-adopted policy applicable to the utility. Such programs may include financial or technical assistance, incentives or rebates and shall be consistent with program objectives approved by the General Manager. Introduced, considered favorably on first reading, and ordered published this 19th day of May, A.D. 2009, and to be presented for final passage on the 2n of June, A.D. 2009. ayor ATTEST: 4 )(;u ��s Chief Deputy City Clerk Passed and adopted on final reading on the 2nd day of June, A.D. 2009. Mayor ATTEST: City Clerk