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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/16/2010 - ITEMS RELATING TO ELECTRIC AND ELECTRIC DEVELOPMEN DATE: November 16, 2010 STAFF: Brian Janonis Ellen Switzer Items Relating to Electric and Electric Development Rates, Fees, and Charges for 2011. A. Second Reading of Ordinance No. 114,2010,Amending Chapter26 of the City Code to Revise Electric Rates, Fees and Charges. B. Second Reading of Ordinance No. 115, 2010, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. EXECUTIVE SUMMARY Ordinance No. 114, 2010, revises electric rates, fees and charges. A system average 6.5%electric rate increase is proposed for 2011. This Ordinance was adopted on First Reading by a vote of 6-1 (Nays: Kottwitz). Ordinance No. 115, 2010, revises electric development fees and charges and reflects a 1-3% reduction in costs. These fees are typically adjusted annually to reflect cost increases; however, some material costs have decreased slightly and labor costs have remained constant. This Ordinance was unanimously adopted on First Reading on November 2, 2010. Staff has prepared two options for Second Reading of Ordinance No, 115, 2010, based on the City Council's First Reading discussion of the Whereas clause in the Ordinance related to the Electric Board's recommendation on the Electric Development Fee reduction. • Option A deletes the clause related to the Electric Board's recommendation in its entirety. • Option B clarifies the intent of the Electric Board's rejected motion. BACKGROUND / DISCUSSION Electric Development Fees Ordinances Whereas Clauses At First Reading on November 2, 2010, there was some Council discussion about the fifth Whereas clause of Ordinance No. 115, 2010, which revises the electric development fees. The fifth clause states: "WHEREAS, the Electric Board considered the proposed electric fees and charges at its October 6, 2010 meeting, and voted 3-2 against recommending approval based on concerns about the lack of reduction in energy efficiency program expenditures and the lack of salary increases for employees". Staff believes that this Whereas clause is correct in that the Electric Board's motion included a recommendation on three topics: the City Manager's recommended 2011-2012 budget for the Light and Power Fund, the proposed cost of service-based 2011 electric rate increases, and 2011 electric development fee reductions. The motion was defeated 3-2 for the two concerns stated in this Whereas clause. The Ordinance has been revised on Second Reading to clarify the intent of the Board's motion. Since there was no specific direction from Council related to the retention or deletion of the clause,two options have been provided. Staff would have no objection if Council chose to delete reference to the Board's action on second reading. The third Whereas clause has been corrected on Second Reading to state that the Section 26-471 City Code requirement is for fees be presented to City Council for approval no less than "biennially'. The clause inadvertently misstated the timing of the requirement as"annually" at First Reading. November 16, 2010 -2- ITEM 25 STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- November 2, 2010 (w/o attachments) 2. Powerpoint presentation ATTACHMENT 1 DATE: November 2, 2010 AGENDA ITEM . STAFF: Brian Janonis FORT COLLINS CITY COUNCIL Ellen Switzer Items Relating to Utility Rates and Charges for 2011. A. First Reading of Ordinance No. 112, 2010, Amending Chapter 26 of the City Code to Revise Water Rates, Fees and Charges. B. First Reading of Ordinance No013 201,OvAmendingiGhaptey26fotfhte he City Code to Revise Wastewater Rates, Fees and Charges. C. First Reading of Ordinance No. 114�k2010,Amending Chapter City Code to Revise Electric Rates, Fees and Charges. D. First Reading of Ordinance No. 115, 2010, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. EXECUTIVE SUMMARY The Ordinances propose the following rate increases for monthly utility billings: , �s= A00-1q %JIncrease& Water ff %3.0% adrossrthe!board WastewateVA 9.0%'@across this board ElectricA✓ k%— .W 06.5% on average) The changes would take effect for billings with meter readings on or after January 1, 2011. The water and wastewater rate increases are across the board to all customer classes. The electric rate increase is proposed to vary by rate class from 0% to 10%. There is no change in the monthly rate for stormwater. A typical single family customer's monthly bill will increase$8.91 from $129.75 to $138.66 or 6.9%. A small reduction(1-3%)in electric development fees for 2011 is also proposed. No changes in plant investment fees are planned for water, wastewater or stormwater. BACKGROUND / DISCUSSIONSVIE A. Monthly Water Rates (Ordance,4No1122010) ru Ordinance No. 112,2010, proposes a 3%water rate increase. The increase is across the board and applies to all rate classes. A cost of service study was conducted in 2009 and the 2010 water rate classes were realigned based on the study. With the proposed rate,a typical single family residential customer's monthly bill will increase 3%as shown in the table below: Single Family 2010 Monthly Proposed 2011 Typical Use Water Bill Monthly Water Bill $ Increase % Increase January- 5000 gallons $23.43 $24.13 $0.70 3% .4n]SmiR. M.w p. July-21,000 gallons $1.89 3% Monthly Average based on seasonal use of 117,131 $34.83 $3�5.87 $1.04 3% gallons per year November 2, 2010 -2- ITEM 16 Although 3%water rate increases were implemented in 2007 and in 2010,water operating revenues decreased 13.4% between 2006 and 2009. The reduction in use is thought to be a combination of conservation,weather and economic factors. The proposed 2011 rate increase is required to fund operations, capital improvements and maintain debt service coverage. B. Monthly Wastewater Rates (Ordinance No. 113, 2010) Ordinance No. 113, 2010, proposes a 9% wastewater rate increase. The increase is across the board and applies to all rate classes. A 2009 cost of service study was conducted and wastewater rate classes were realigned in 2010. With the proposed increase, a typical residential customer's bill will increase from $26.23 to $28.59 or $2.36 per month. The typical customer is based on 4,800 gallons of winter quarter water use. Council has approved a series of annual wastewater mate starting in2008. The prior rate increases,as well as the proposed 2011 increase,are necessary tolfund wastewater.operations and meet the increase in longterm debt service obligations for a major capita project+to replace the trickling filter[�make odor control improvements and to prepare for future regulation based improvements atithMlberry Water&Reclamation Facility. An 8% increase is projected for 2012. In addition, staff is proposing a clarification to the Code to set a default winter quarter water use for residential customers who did not establish a winter quarter average(WQA)during the prior January-March. The winter quarter water use approximates the customer's indoor water use and is defined in Section 26.206 of the City Code as"the average monthly amount of water billed to the user during the preceding months of January, February and March." City Code does not address customers who have not been at the premise to establish a WQA. Current administrative practice is to assign such single family customers a default WQA of 5,200 gallons. The 5,200 gallons was based on a historic average water use. With the lower water use during the last few years, the average WQA for single family residential customers has dropped to�4s800gallons,per month Vllinter quartetwater use for duplexes and multifamily units is also now lower than historicatifaverages Based on this trend `64reduced winter quarter water use, staff is t -w w�ev recommending that the Code be amended to specify t e d faelPamoun for all residential customer classes as follows: Default Winter Quarter Average Current Administrative Default Proposed To Be Included Residential Rate Class Practice In CityCode Single Family 5,200 gallons WQA 4,800 gallons WQA Duplex 8,500 gallons WQA 7,200 gallons WQA Multi Family 4,200 gallons/unit WQA 3,400 gallons/unit WQA These default amounts will only be usetl for customers who�iave of established a WQA for the premise during the previous January, February and March The reduZtion in default WQA amouun2s will result in the loss of about$38,000 per year. C. . Monthly Electric Rates (Ordinance NP14, 10) A system average 6.5% electric rate increase is proposed for 2011. This rate increase will not be applied to all customer rate classes across the board. Based on a cost of service study conducted by staff in 2010, the rates are proposed to vary by rate class as follows: Proposed Electric Rate Increase for 2011 Residential Energy Rate 10.0% Residential Demand Rate 10.0% General Service small commercial) 0.0% `'�General Service 50 medium commdrbial AV " , rJ A X\ 1,4 5.1% General Service 750 (large commercial, industfial f1 ( y \ 5.6% Traffic Signals V'4 iz? U H W 6.7% Floodlights Nt N�b� 9 M 0.0% Average System Increase 6.5% November 2, 2010 -3- ITEM 16 The above recommendations are based on modified cost of service results but are capped with a limit of no more than a 10% increase for any customer class. The Council Finance Committee reviewed the results of the electric cost of service study and the staff recommendations at its September 20, 2010 committee meeting and supported this modified cost of service implementation. Fort Collins' electric rates will remain among the lowest in the state. The impacts of these rate recommendations for i typical residential and commercial customers are shown in the following table: 2011 Electric Rate Impacts on Typical Customers Average Proposed Rate Class Rate Class '010& FF201;1, " $ Inc % Inc. % Inc. Residential " 700 kWh/month 1 $54.43'; "$9.94 "$$5.51 10.1% 10.0% Residential Demand 1,400 kWh/month, 10 kW $1 0 $112.42 $10.42 10.2% 1 10.0%. General Service 2,300 kWh/month $193.61 $194.41 -$2.20 -1.1% 0.0% General Service 50 54,000 kWh/mo, 140 kW $3,277 $3,443 $166 5.1% 5.1% General Service 750 2,000,000 kWh/month 3600 kW 98 932 $104,453 5 521 5.6% 5.6% The 6.5% system-wide increase is due to an increase in purchase power rates and the second year of the Energy Policy implementation. The majority of the,raatte increase,�resulns?fr9_ ornm,a 6 1%wholesale rate increase from Platte River Power Authority. This increase in purchase power cost equates to V.7% retail rate increase. Secondly, as part of �r e, � e- , Va �r the 2010 budget,Council approved asignificant increase to)th6.Utilities energy services budgets in order to implement additional programs targeted to meetin,�g Enneergy`IPPoolicy and -limate ActioN Plan goals. In 2010, half of this energy services budget increase was funded from'veservesiwith the remainder funded from a 1.8%rate increase. The 2010 plan called for a second 1.8% rate increase in 2011 to continue the energy conservation and efficiency programs at the 2010 level. Platte River's 20116.1% purchase power rate increase is due to several key factors: • Reduced surplus energy sales • Increased operations and maintenance costs ° Major maintenance work at Craig Unit 1 ° Ongoing O&M of aging plants o Environmental costs primarily mercuryre f oval:at Rawhide • Increased fuel expense duejt�o higher utilization of natural gas peaking plants • Increased financing and depreciation expense for transmission p into service • Decrease in interest income • Capital investment The proposed electric rate Ordinance also deletes an outdated reference to rental charges for traffic equipment. The rental charges related to an early traffic signal system(1970s era)which was purchased by the Light and Power Fund and then repaid by the traffic department through the referenced rental charges. November 2, 2010 -4- ITEM 16 Monthly Rate Increase Summary The following chart summarizes the impact of the proposed rate changes on a typical residential customer: 2011 Utility Rates—Im act to Typical Single Family Customer Current Proposed $ 2010 2011 Increase % Increase Electric. 700 kWh per month $54.43 $59.94 $5.51 10.1% Wastewater G 4,800 al/mo WQA ~' A $26.23 $28:591�� $2.36 9.0% Stormwater 8,600 sq ft lot, light run off $14.26 $14.26 $0.00 0.0% Water Monthly Average based on seasonal use of 117,131 gallons per year $34.83 $35.87 $1.04 3.0% Total Tvpical Monthly Utility Bill $129.75 $138.66 $8.91 6.9% The following graphs compare Fort Collins current 2010 and proposed 2011 rates with the current 2010 and estimated 2011 rates of several surrounding communities. The graphs are based on the same typical customer shown in the table above with the exception ofwater,�w,high is base nn 21,000 galllogs,a typical July use. The estimated 2011 rate increases for the comparison cities are based on inform' atiom1 obtainedlby staff through phone inquiries. These are v� a ca t; for 1.s ry not approved rates for any of the citieslor Xcel. Denver waste`w��a�te,r�and stormwater rates have not been released and t i edi "!'—" Denver. so the 2011 graph reflects 2010 wastew. ater grid storm ater�rates for Dentjver. F� 2010 Rates9 2010 Residential Rate Comparison July Water Use 21,000 Gallons $250 $200 $150 amxw - c d+ $100 $50 iSirs;+ "1:;`:.:; y; t':T ..:.•ljiii 1,::, •i!i!i i!i$^;; i!i$• lii.j.;:;. ',�.�,ti. �i ) {;' il�"•• C O 41 _� p, () N C N N (D p` p LL m X X 0 X o Q X U pElectric ®Water []Wastewater @ Stormwater NOV8OOb8[ 2 2010 -5- ITEM 16 2011 Estimated Rates Estimated 2011 Residential Rate Comparison July Water Use 21,000 Gallons Electric developmentfees recover bolhawc-tJ'al on'site,costs( dilding site charges)and allocated off-site costs(electric capacity charges)to serve commercial or residential development. These fees are typically adjusted annually to reflect cost increases; however, some material costs have decreased slightly and labor costs have remained constant. The proposed2O11 Electric Development Fee Ordinance(item D)reflects a 1-3%reduction in costs. The following table shows the impacts ona sample residential and commercial development. Typical Single Family Lot 8600 square feet, 70 foot of street frontage, 150 amp service, 4/0 secondary service Current 2010 Proposed 2011 $ Change % Change 82,000 sq ft, 1900 ft street frontage, 250'IftV7prim'aN*y srv�60(Yamps, 208Volt, 3-phase, 1-transformer Current 2010 Proposed 2011 $ Change % Change Water,wastewater and stormwater plant investment fees were revised for 2010. There are no changes recommended for2O11. COPY November 2, 2010 -6- ITEM 16 FINANCIAL / ECONOMIC IMPACTS The rate Ordinances are projected to increase 2011 annual operating revenues of the Water Fund by 3%, the Wastewater Fund by 9%,and the Light and Power Fund by 6.5%. The projected revenue from the rate increases was included in the 2011-2012 budget projections. , The proposed rate ordinances will increase costs for typical residential customers by$8.91 per month if their water and electric use remain unchanged. Utility programs can help customers to reduce their water and electric use to lessen the financial impact of the rate increases. ENVIRONMENTAL IMPACTS Funding from the proposed electric ratezinclfeashill!alll the Utilities to continue programs and services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan. Water and wastewater rates provide funding for conservation programs, and environmental regulatory compliance. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. N MV BOARD / COMMISSION RECOMMENDATION The Water Board recommends approv-51-0 Pthe W ter Wastewater and S ormwater budget and rate increases for Water and Wastewater by unanimous vote (7-0). The Electric Board recommends against the approval of the Light and Power budget and electric rate ordinances by a vote of 3-2. Two of the three Electric Boardmembers voting against approval stated that they believed the City should reduce budgets for energy efficiency during this period of citywide budget reductions. One of the Electric Boardmembers voting against approval expressed a concern that an increase in employee salaries should have been included in the budget in order to retain qualified staff. Minutes from both Board meetings are attached. rnpyPUBLIC OUTREACH W W Postcard notification of the proposed electric rate changes was mailed to out-of-city electric customers on October 13, 2010 and notice was published in the Coloradoan on October 17. Preliminary utility rate increases were shown in the recommended budget document. The Utilities has planned additional outreach for all customers prior to the effective dates of the rate changes. ATTACHMENTS 1. Water Board Minutes, Septerribe 16, 2Q 10 2. Electric Board Minutes (drafOctober62010 3. Finance Committee, excerptfrom minutes, Septem_e'"r``20, 2Y 3. Power Point presentation Attachment 2 - Staff Presentation 2011 Electric Rates & Fees - 2nd Reading • Ordinance 114 , 2010 — Increases monthly electric rates an average of +6 . 5 % — Rate increases vary from 0 % to 10 % — Approved 6- 1 on first reading — Electric rates are among the lowest in the State • Ordinance 115 , 2010 — Makes slight reduction ( 1 -3% ) in electric development fees — Approved 7-0 on first reading — Two options for 2nd reading • Both Ordinances are effective in January 2010 City F, t_ Collins 1 2011 Proposed Monthly Electric Rates Residential 10 . 0 % Small Commercial ( General Service ) 0 . 0 % Medium Commercial ( GS50 ) 5 . 1 % Large Commercial/ Industrial (GS750 ) 5 . 6 % Traffic Signals 6 . 7 % Floodlights 0 . 0 % Average System Increase 6 . 5% Typical residential bill will increase $ 5 . 51 /month . ( From $ 54 . 43 to $59 . 94 ) City of Fort Collins `�` 2 1 Attachment 2 - Staff Presentation Electric Rates Remain Among the Lowest in the State (All Rate Classes — Residential (graph), Small & Large Commercial and Industrial) Colorado Utilities Electric Rate Increases Since 2005 Avg coop $90 at >'u Avg. Investor $8$ IRA L $80 z $75 A . Muni Tess PRPA 8 n $70 M [Stes Park 161% d $60 Fort Collins 124% $55 Q $50 Loveland IC 5% Longmont $45 —` 11.6% $40 Jan O5 July 05 Jan 06 Ju106 Jan 07 Ju107 Jan 08 Jul O8 Jan 09 Ju109 Jan 10 Jul 10 3 Electric Development Fees Ordinance 115 , 2010 • At first reading Council briefly discussed the Ordinance ' s whereas clause regarding Electric Board 's recommendation : — The Electric Board denied a motion recommending Council approval of the L&P 2011 -2012 budget, 2011 rates & development fee reduction — Since the Board 's concerns were mostly unrelated to the development fees , Council considered deleting this whereas clause — No consensus was reached — The whereas clause remained in the Ordinance for first reading and it was approved 7-0 — Staff was asked to review the clause for second reading City of Fort Collins `�` 4 2 Attachment 2 - Staff Presentation Electric Development Fees Ordinance 115 , 2010 There are two options for Council consideration at 2nd reading • Option A — Delete the whereas clause containing the Electric Board recommendation and remain silent on the Board motion • Option B — Revise the whereas to better clarify the intent of the Electric Board 's motion • Both options make an additional correction and clarification to the existing whereas clauses • Both options are equally acceptable to staff ort�hs 5 3 ORDINANCE NO. 114, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the. City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, Platte River Power Authority costs are increasing due to reduced surplus sales, increased operating costs for aging plants and environmental mitigation, increased natural gas expenses for peaking plants, increased financing costs, and continuing capital investment; and WHEREAS, Platte River Power Authority will increase the City's wholesale cost of power approximately 6.1% in 2011; and WHEREAS, the increased wholesale power costs will require a 4.7% increase in the City's electric rates; and WHEREAS, a 1.8% electric rate increase was approved in 2010 as the first of two required to fund the associated costs with funding energy efficiency programs for meeting the goals of 2009 Energy Policy; and WHEREAS, a final 1.8% rate increase is required in 2011 to provide the remainder of funding for the implementation of the 2009 Energy Policy; and WHEREAS, the Electric Board considered the proposed electric rates at its October 6, 2010 meeting, and voted 3 to 2 against recommending approval, based on concerns about the lack of reduction in energy efficiency program expenditures and the lack of salary increases for employees; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the electric rates for all billings issued with meter readings on or after January 1, 2011; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-464(c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-464. 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 ninety-one cents ($3.91). (2) Demand charge, per kilowatt-hour: Two and eighty-four one-hundredths cents ($0.0284). (3) Distribution facilities charge, per kilowatt-hour: Two and twenty one- hundredths cents ($0.0220). (4) Energy charge, per kilowatt-hour: Two and forty-eight one-hundredths cents ($0.0248). (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 2. That Section 26-465(c) 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 thirty-two cents ($6.32). (2) Demand charge, per kilowatt: Three dollars and eighty-seven cents ($3.87). (3) Distribution facilities charge, per kilowatt-hour: One and eighty-eight one- hundredths cents ($0.0188). (4) Energy charge, per kilowatt-hour: Two and forty-eight one-hundredths cents ($0.0248). (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. Section 3. That Sections 26-466(c) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: -2- a. Single-phase, two-hundred-ampere service: Three dollars and twenty-one cents ($3.21). b.' Single-phase, above two-hundred-ampere service: Nine dollars and forty-six cents ($9.46). C. Three-phase, two-hundred-ampere service: Four dollars and eighty-eight cents ($4.88). d. Three-phase, above two-hundred-ampere service: Eleven dollars and fifty-six cents ($11.56). (2) Demand charge, per kilowatt-hour: a. First two thousand (2,000) kilowatt-hours: Three and sixty- two one-hundredths cents ($0.0362). b. Next five thousand (5,000) kilowatt-hours: One and seventy-eight one-hundredths cents ($0.0178). 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 fifty-seven cents ( $6.57). (4) Distribution facilities charge, per kilowatt-hour: One and fifty-eight one- hundredths cents ($0.0158). (5) Energy charge, per kilowatt-hour: Two and forty-eight one-hundredths cents ($0.0248). (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. (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 three dollars and two cents ($3.02) 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 nine dollars and six cents ($9.06) 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. Section 4. That Sections 26-467(c), and (f) 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: Eighteen dollars and thirty-six cents ($18.36). 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 eighty cents ($12.80) but not less than one cent ($.O1) per kilowatt-hour. (3) Distribution facilities demand charge, per kilowatt: Four dollars and eighty-two cents ($4.82). (4) Energy charge, per kilowatt-hour: Two and forty-eight one-hundredths cents ($0.0248). (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 ninety-one cents ($3.91) 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 eleven dollars and seventy-three cents ($11.73) per kilowatt. -4- 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. Section 5. That Sections 26-468(c), (0, and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: Fifty-four dollars and eleven cents ($54.11). a. Additional charge for each additional metering point: Forty-seven dollars and eighty-one cents ($47.81). 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 sixty-one cents ($12.61) 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 seventy-five cents ($4.75). b. All additional kilowatts: Two dollars and eighty-four cents ($2.84). (4) Energy charge, per kilowatt-hour: Two and forty-five one-hundredths cents ($0.0245). -5- (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 ninety-seven cents ($2.97) 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 ninety-one cents ($8.91) 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) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit charge shall be sixty-three cents ($0.63) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be one dollar and eighty-nine cents ($1.89) per kilowatt. -6- (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. Section 6. That Section 26-470(c) of the Code of the City of Fort Collins is 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-percent charge in lieu of taxes and franchise) are as follows: (1) Fixed charge, per account: Sixty-three dollars and ninety cents ($63.90). (2) Charge, per kilowatt-hour: Five and fifty-five one-hundredths cents ($0.0555). (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Section 7. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all billings based on meter readings after January 1, 2011. Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D. 2010, and to be presented for final passage on the 16th day of November, A.D. 2010. 4Mayo _�A ATTEST: City Clerk -7- Passed and adopted on final reading on the I6th day of November, A.D. 2010. Mayor ATTEST: Chief Deputy City Clerk -8- ORDINANCE NO . 115 , 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC DEVELOPMENT FEES AND CHARGES WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS , the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements ; and WHEREAS , Section 26-471 of the City Code requires that the electric development fees be reviewed annually by the City Manager and that the fees be presented to the City Council for approval no less than biennially; and WHEREAS , on October 20, 2009, the City Council adopted Ordinance No . 118 , 2009, which established the electric development fees now in effect; and WHEREAS , the City Manager and staff have recommended to the City Council the f6flowing adjustments a reduction in the electric development fees and charges for all invoices paid on or after January 1 , 2011 ; and OPTION A : NN`HEREAS � the Electric Board considered the proposed electTic fees and charges UV I' LO October 6 , 2OtO tnecting, mid voted 3 to 2 against recommending approval bascd On concet its aboi the lack of reduction in energy effi expenditmes and the lack of salary increases OPTION B : I*qfEREAS � the Electric Board considered the proposed clectric fees and charges October 6, 20 10 meeting, and voted 3 to 2 against recommending approval based on concerns aboi the lack of reduction in energy effi mi expendituTcs and the lack of salary increases fi WHEREAS , on October 6, 2010, the Electric Board considered the Electric Utility ' s proposed 2011 -2012 budget, as well as the 2011 monthly rate increases and the proposed reduction in 2011 development fees, and rejected a motion which would have recommended Council ' s approval of these items ; and WHEREAS , the Board members ' vote was based upon the following concerns : ( 1 ) that the energy efficiency budget, as proposed, should be revised so as to reduce the proposed 2011 monthly rate increase and; (2) that the 2011 budget does not provide the funding necessary to attract and retain quality, experienced Electric Utility employees ; and WHEREAS , based on the foregoing, it is the desire ofthe City Council believes it is in the best interests of the Electric Utility rate payers to amend Chapter 26 of the City Code to revise the electric development fees and charges . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 26-472(b) and (c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-472. Residential electric development fees and charges. (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows : ( 1 ) The site footage charge shall be the combined total of: a. Four and nine hundred fifty-four thousandths cents ($0 . 04954) per square foot of developed site square footage, including all applicable tracts but excluding the area dedicated public rights-of-way; and b. Eight dollars and seventy-eight cents ($ 8 . 78) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows : a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand two hundred eighty- five dollars ($ 1 ,285 .) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), two thousand one hundred seventy-six dollars ($2, 176 .) per dwelling unit; C . For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), eight hundred fifty-six dollars ($ 856 .) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), one thousand five hundred twenty-six dollars ($ 1 ,526.) per dwelling unit. -2- (3 ) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF . (c) A Building Site Charge ("BSC ") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall be the total of the secondary service charges , and any additional charges, determined as follows : ( 1 ) The secondary service charge shall be as follows : Secondary Charge (up to 65 feet) Plus Per Foot Charge For Each Service Size Foot Over 65 1 /0 service $639 , 00 $4. 66/Foot 4/0 service $ 813 . 00 $5 . 83/Foot 350 kCM Service $ 830 , 00 $6 . 56/Foot 1 /0 Mobile Home $499 ,00 N/A Service 4/0 Mobile Home $638 ,00 N/A Service (2) Actual special costs to the utility of installation of secondary service resulting from site conditions shall be included in the BSC as additional charges . Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 2 . That Section 26-473 (b) and (c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-473. Nonresidential electric development fees and charges. (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows : ( 1 ) The site footage charge shall be the combined total of: a. Four and nine hundred fifty-four thousandths cents ($0 . 04954) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and -3 - b. Thirty-eight dollars and zero cents ($38 . 00) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service charge shall be determined as follows . a. For customer electric loads served by the utility the kVA service charge shall be : i. Utility owned transformers : The kVA service charge shall be fifty-nine dollars and six cents ($ 59 . 06) per kilovolt-amp (kVA) of service load rating. ii. Customer owned transformers : The kVA service charge shall be forty-eight dollars and sixty-one cents ($48 . 61 ) per kilovolt-amp (kVA) of service load rating. b. For the utility to receive customer generation in excess of the customer' s electric service provided by the utility, the following KVA service charge will also apply: i. Utility owned transformers : The kVA service charge shall be forty-eight dollars and sixty-four cents ($48 . 64) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2)a.i. above. Such ratings shall be determined by the General Manager. ii. Customer owned transformers : The kVA service charge shall be thirty-eight dollars and nineteen cents ($38 . 19) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a. ii. above. Such ratings shall be determined by the General Manager. (3 ) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model . The differential costs associated with such system modifications will be included in the calculated ECF . (c) A Building Site Charge ("BSC ") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section. The BSC shall be the total of the primary -4- circuit charge, transformer installation charge and any additional charges, determined as follows : ( 1 ) The primary circuit charge for service from the utility source to the transformer shall be as follows : a. For single-phase service, a charge of eight dollars and seventy-six cents ($ 8 . 76) per foot of primary circuit; b. For three-phase service, a charge of eighteen dollars and forty-three cents ($ 18 .43 ) per foot of primary circuit. (2) The transformer installation charge shall be as follows : a. For single-phase service, a charge of one thousand three hundred eighteen dollars ($ 1 ,318 . ) per transformer; b. For three-phase service, a charge of two thousand four hundred twenty-one dollars ($2,421 .) per transformer. (3 ) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges . Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 3 . That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all invoices paid on or after January 1 , 2011 . Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D . 2010, and to be presented for final passage on the 16th day of November, A.D . 2010, Mayor ATTEST : City Clerk -5 - Passed and adopted on final reading on the l6th day of November, A.D . 2010 . Mayor ATTEST : Chief Deputy City Clerk -6-