HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/18/2011 - ITEMS RELATING TO UTILITY RATES, FEES AND CHARGESDATE: October 4, 2011
STAFF: Brian Janonis
Ellen Switzer
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 20
SUBJECT
Items Relating to Utility Rates, Fees and Charges for 2012.
A. First Reading of Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water Rates and
Charges.
B. First Reading of Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to Revise Water Plant
Investment Fees.
C. First Reading of Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise Wastewater
Rates, Fees and Charges.
D. First Reading of Ordinance No. 141, 2011, Amending Chapter 26 of the City Code to Revise Sewer Plant
Investment Fees.
E. First Reading of Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise Electric Rates,
Fees and Charges.
F. First Reading of Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to Revise Electric
Development Fees and Charges.
G. First Reading of Ordinance No. 144, 2011, Amending Chapter 26 of the City Code to Revise Stormwater Plant
Investment Fees.
EXECUTIVE SUMMARY
The following overall monthly rate increases are recommended for 2012.
% Increase
Water 6.0%
Wastewater 8.0%
Electric 8.3%
The water and wastewater rate increases are across the board to all customer classes. There is no change in the
monthly rate for stormwater. City Council has requested additional data and time to study proposed changes to the
electric residential energy service rate (hereafter referred to as “RESR”). Staff will return to Council on November 15,
2011, to recommend changes to the RESR. All other electric rates are included in the electric rate increase referenced
above. The electric rate increases are proposed to vary by customer class from 3.9% to 15.9%. The proposed
changes will impact individual electric customers more or less than the customer class averages.
With the water and wastewater rate changes contained in the proposed ordinances, a typical single family customer’s
monthly bill will increase $4.44 from $138.66 to $143.10 or 3.2%. If revisions to the RESR are approved by Council
at a later date, the typical residential customer will likely see an additional increase in costs. The later change will
depend on the rate form option preferred by City Council.
Changes to the water and wastewater plant investment fees and electric development fees will also go into effect if
the proposed ordinances are approved. A 4.7% increase in water plant investment fees (PIFs) and a 1.2% increase
in stormwater PIFs are proposed. A 3% reduction in wastewater PIFs is recommended. On average, electric
development fees will increase from 1% - 3.5% for residential and decrease less than 1% for commercial.
Several additional Code modifications and clarifications are also contained in the ordinances above.
October 18, 2011 -2- ITEM 20
BACKGROUND / DISCUSSION
Monthly Utility Rates
The recommended 2012 rate increases differ from the rates that were proposed in the original 2011-2012 Budget.
The changes are summarized in Attachment 1 and further explained by the staff memos included as Attachments 2
and 3. All proposed rates would be effective for meter readings on or after January 1, 2012.
A. Monthly Water Rates (Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water
Rates and Charges.)
Staff proposes a 6% water rate increase. The increase is across the board and applies to all rate classes. With the
proposed rate, a typical single family residential customer’s monthly bill will increase 6% as shown in the following
table:
Single Family
Typical Use
2011 Monthly
Water Bill
Proposed 2012
Monthly Water Bill $ Increase % Increase
January
5000 gallons $24.13 $25.58 $1.45 6%
July
21,000 gallons $65.11 $69.04 $3.93 6%
Monthly Average* $35.87 $38.05 $2.18 6%
*Average based on seasonal use of 117,131 gallons per year
Although water rates were increased 3% in 2007, 2010 and in 2011, total Water Fund revenues decreased 23%
between 2006 and 2010. The reduction in use is thought to be a combination of conservation, weather and economic
factors. While water use is down, the vast majority of the costs of operating the water system are fixed and do not vary
based on customer use. The proposed 2012 rate increase is required to fund operations, capital improvements and
maintain debt service coverage. Staff has increased projections for Water Fund capital projects needs between 2013
and 2020 by $33 million. Most of this increase is for distribution system replacement ($22 million). The distribution
system project increase is a result of the preliminary data from the asset management program. The increase is not
related to Halligan Reservoir which is to be funded from the Water Rights Reserve. The Water Rights Reserve is
funded by developers’ cash-in-lieu-of water rights payments and is restricted to the purchase of water rights and water
storage only. See Attachment 2 for additional detailed explanation of the water rate increase.
In addition, staff is proposing to eliminate unmetered construction water for customers with planned water services
with meters greater than 1-inch. Staff is also recommending a monthly charge for 3/4-inch and 1-inch construction
water service. Construction water will remain unmetered for 3/4-inch and 1-inch services but instead of a flat one time
fee on the building permit (equivalent to 1.5 times the base charge for the future account), a monthly account will be
established and billed a flat charge based on estimated construction use of 7000 gallons per month. Monthly billing
will continue until the permanent meter is set. These changes are proposed to eliminate, or at least reduce, the
extended over use of the unmetered construction service and will better reflect the cost of the water provided.
Construction Water
Frequency of Billing
3/4-inch
Meter 1-inch Meter
Current 2011 One time charge $ 20.40 $ 50.93
Proposed 2012 Monthly charge $ 25.46 $ 48.55
Includes PILOTs
October 18, 2011 -3- ITEM 20
B. Monthly Wastewater Rates (Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise
Wastewater Rates, Fees and Charges.)
Staff proposes an 8% wastewater rate increase for 2012. The increase is across the board and applies to all rate
classes. With the proposed increase, a typical residential customer’s bill will increase from $28.59 to $30.88 or $2.29
per month. The typical customer is based on 4,800 gallons of winter quarter water use.
Council previously approved a series of annual wastewater rate increases starting in 2008. The prior rate increases,
as well as the proposed 2012 increase, are necessary to fund wastewater operations and meet the increase in long
term debt service obligations for the now completed capital project which replaced the trickling filter, made odor control
improvements and prepared for future regulatory requirements at the Mulberry Water Reclamation Facility.
C. Monthly Electric Rates (Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise
Electric Rates, Fees and Charges.)
Based on Council response at the September 13, 2011 Work Session, the electric rate ordinance does not contain
any changes to the RESR, the rate applicable to the majority of residential customers. The changes to the RESR will
be presented in a separate ordinance on November 15, 2011 and will contain several rate form alternatives. The
ordinance for consideration at this meeting pertains only to the Residential Demand, Commercial (General Service,
General Service 25, General Service 50), Industrial (General Service 750) and Traffic rates.
Fort Collins’ wholesale and retail electric rates are among the lowest in the region and nation. This will continue to
be true following the 8.3% electric rate increase proposed for 2012. The 8.3% increase is the system average and
will not be equally applied to all customer rate classes. Based on a cost-of-service study, the proposed rates vary by
rate class as follows:
Proposed Rate Class Increases for 2012
Individual customers will vary from the class average.
Summer increases (June, July and August) will be greater than average.
RESR – Not included in Ordinance No. 142, 2011 6.0%
Residential Demand Rate 15.9%
1. General Service (small commercial less than 25 kW) 3.9%
1. General Service 25 (small commercial between 25-49 kW) 15.5%
General Service 50 (medium commercial between 50-749 kW) 8.7%
General Service 750 (large com/industrial greater than 749kW) 11.0%
Traffic Signals 11.3%
Floodlights 0.0%
Average System Increase 8.3%
1. New rate classes proposed for 2012
4.8% of the 8.3% system-wide increase is due to a 6.4% increase in Platte River Power Authority’s purchase power
rates. In addition, Platte River’s wholesale rate will be seasonal, with higher rates in June, July and August. Platte
River’s 2012 purchase power rate increase is due to several key factors:
• Reduced surplus sales
• Increased operating and maintenance costs
• Increased financing and depreciation costs as new projects are placed into service
• Reduced interest income – due to low interest rates and lower cash reserves
The remaining 3.5% of the 8.3% is required to reduce the use of Light and Power’s reserves to cover the cost of
system improvements and replacements. While the reduction of reserves has been intentional, expenditures in the
Light and Power Fund have exceeded revenues each year since 2007. Even following the proposed 3.5% increase,
expenditures are projected to exceed revenues for 2012.
October 18, 2011 -4- ITEM 20
The larger commercial classes are experiencing a greater than average increase due to the shift of purchase power
costs from demand charges to energy charges in Platte River’s new rate form. Those customers with larger load
factors, typically larger commercial and industrial customers and also the traffic signal system, will have larger than
average increases in the purchase power components of their rates. (Load factor measures the consistency of power
use over time.)
Although the last cost-of-service study showed that the residential demand (“RD”) rate was 18% under cost-of-service,
all rate classes were limited to a 10% increase in 2011. The 2012 increase brings the RD rate class up to full cost-of-
service. The rate has traditionally been selected by high-use customers such as those who exclusively heat their
homes with electricity. The increase to this rate will make the RESR more economical for many of the existing RD
customers in 2012. Staff is also recommending that the RD rate be available only to those customers providing
documentation that their home is heated entirely with electric energy. These changes will begin a phase-out of the
RD rate.
Electric Rate Form Changes
Changes in the electric rate forms are necessary to align rates in support of the City’s Energy Policy and Climate
Action Plan goals. By adopting rate forms to incentivize customers to conserve and use energy more efficiently and
by providing energy conservation assistance and programs to our customers, the City will more likely be able to
achieve its policy goals. In addition, successful implementation of these tools will delay or defer the expense of
constructing additional generation resources. Rate form changes are also needed to pass through the seasonal cost
differentials that will be charged by Platte River Power Authority beginning in 2012. All rates will have higher costs
in the summer (June, July and August) than during the remaining nine “non-summer” months. Consistent with Platte
River, the recommended rates also shift a greater proportion of the rate from the demand charges to energy charges.
Rate form options were presented to the Council Finance Committee on August 15, 2011 and to the full Council at
work sessions on September 13, 2011 and October 11, 2011. Based on Council’s responses to the questions posed
at the work sessions, there is a delay in the ordinance making changes to the RESR until November 15, 2011. Several
options for the RESR ordinance will be presented at that time. The changes recommended for the RD and
Commercial/Industrial rates seemed to have wide-spread support at the September 13 Work Session. The following
summarizes changes to the electric rate forms that are included in the proposed electric rate ordinance.
• Residential Demand: The residential demand rate will be increased to the cost-of-service and energy
charges will reflect the seasonal differential. The rate will be available only to customers who heat their
residences exclusively with electricity.
• Small /Medium Commercial: The General Service rate is currently one rate class serving all commercial
customers with average monthly demands of less than 50 kW. Staff is proposing that it be split into two rate
classes beginning in 2012.
N General Service - energy-only seasonal rate for customers with average monthly demands of less than
25 kW
N General Service 25 - energy/demand seasonal rate for customers with average monthly demands of
between 25 and 49kW
• Large Commercial / Industrial: The recommended rate form changes for the GS50 and GS750 rate classes
are due to Platte River’s seasonal wholesale rate.
N General Service 50 – add seasonal energy and coincident demand components for customers with
average demands of between 50-749 kW
N General Service 750 – add seasonal energy and coincident demand components for customers with
average demands of 750 kW and greater
Additional Amendments to Electric Article and Rates
• Wholesale Transactions: Staff is recommending the addition of a Code section and definition to clarify terms
of wholesale transactions and to specify that the retail rates, requirements and electric development fees do
not apply to wholesale purchases.
October 18, 2011 -5- ITEM 20
• Clarification of Net Metering Credit: Staff is recommending that the rate schedule specify that credits for net
excess generation due to net metering will be based on the summer season retail energy charge as reflected
in the new rate structure.
• Clarification of Parallel Generation Credit: Staff is recommending that the rate tariff schedule specify that
credits for parallel generation delivered to the utility will be based on Platte River Power Authority’s avoided
cost rate.
• Clarification of Distribution Facilities Demand: The proposed change more fully defines distribution facilities
demand for the large commercial and industrial rate classes and permits the Utilities Executive Director to use
an alternative method to recover a customer’s cost-of-service share of distribution demand if the costs
associated with serving a customer are not fully recovered by the standard rate.
Monthly Rate Increase Summary
The following chart summarizes the impact of the proposed rate changes on a typical single family residential
customer:
Typical Residential Customer – Monthly Utility Bill
Current
2011
Estimated
2012
$
Increase
%
Increase
Electric
700 kWh/mo $59.94 $59.94 * *
Wastewater
4,800 gal/mo WQA $28.59 $30.88 $2.29 8.0%
Stormwater
8,600 sq.ft. lot, light runoff $14.26 $14.26 $0.00 0.0%
Water
117,131 gal/yr $35.87 $38.03 $2.15 6.0%
Total Estimated Average Monthly
Utility Bill
$138.66 $143.10 $4.44 3.2%
* The 2012 electric RESR will not be considered by Council until a later Council meeting and therefore will not be
effective as of January 1, 2012. A change, averaging 6% is expected to be effective February 1, 2012.
October 18, 2011 -6- ITEM 20
The following charts compare Fort Collins Utilities’ monthly rates to others along the Front Range. The electric rate
shown for Fort Collins for 2012 is the current 2011 rate. A change to the RESR is expected to be effective in February.
The average change to the residential energy rate class is projected to be 6%.
2011 Residential Rate Comparison
January Water Use - 5,000 Gallons
$-
$20
$40
$60
$80
$100
$120
$140
$160
Stormwater $7.13 $10.39 $8.89 $7.10 $14.26 $5.63 $14.26 $- $8.16
Wastewater $20.38 $18.11 $15.83 $20.32 $28.59 $20.48 $30.88 $31.27 $16.72
Water $13.96 $13.19 $18.05 $18.85 $24.13 $26.70 $25.58 $25.26 $38.41
Electric $51.65 $55.37 $76.21 $76.21 $59.94 $76.21 $59.94 $77.47 $76.21
Longmont Loveland Denver Boulder Ft. Collins Greeley Ft. Collins
'12
Co.Sprs Aurora
2011 Residential Rate Comparison
July Water Use 21,000 Gallons
$-
$50
$100
$150
$200
$250
Stormwater $10.39 $7.13 $14.26 $7.10 $14.26 $8.89 $5.63 $8.16 $-
Wastewater $18.11 $20.38 $28.59 $20.32 $30.88 $15.83 $20.48 $16.72 $31.27
Water $40.71 $59.18 $65.11 $60.14 $69.04 $80.71 $80.14 $123.46 $128.10
Electric $55.37 $51.65 $59.94 $85.16 $59.94 $85.16 $85.16 $85.16 $77.47
Loveland Longmont Ft. Collins Boulder Ft. Collins
'12
Denver Greeley Aurora Co.Sprs
October 18, 2011 -7- ITEM 20
Plant Investment Fees (PIFs) and Electric Development Fees
City Code requires staff to present water, wastewater and stormwater plant investment fees to Council for approval
no less than every other year. These fees were last changed in 2009 effective on January 1, 2010. Staff is
recommending changes to each of the wet utility PIFs. Water and Stormwater PIFs are increasing 4.7% and 1.2%
respectively. Wastewater PIFs are recommended to decrease 3%.
Electric development fees are also required to be approved by City Council no less than every second year, although
historically staff has recommended annual changes. The current electric development fees were approved by Council
in 2010 and were effective January 1, 2011.
Staff is recommending the following changes to be effective on January 1, 2012.
A. Water Plant Investment Fees (Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to
Revise Water Plant Investment Fees.)
The water plant investment fees were developed to recover the current value of past investment and the current value
of future growth-related investment through 2040. This method includes calculating net water system equity, capacity
units and determining the net system equity per unit. The Water PIFs are calculated to increase an average of 4.7%
for 2012.
There are two major factors influencing the increase. First, projected capital improvements related to regulatory
requirements have been allocated to the PIF for that portion of the improvements that will serve new growth. Other
revisions have been made to the long range capital improvement plan which also impacted the Water PIF calculations.
Together, these capital changes have increased the PIF requirement.
The second factor offsets the increase. In 2009, detailed information was not available to classify the construction
work in progress. The decision was made to treat it all as backbone related capital additions. This overstated the 2010
PIF requirement. Since that time, additional reporting is available to clearly classify the work in progress. This resulted
in a reduction in equity of the backbone system.
Water PIF charges for a typical single family lot (8600 sq ft) would increase from $3,826 to $4,084 or $258. The
following table shows the proposed increases for water PIFs.
Water Plant Investment Fees
2011 2012
Existing Proposed % Change
Single Family Residential:
Domestic Interior Use - Flat Charge $ 730 $ 730 0.0%
Exterior Use - $/Sq ft $ 0.36 $ 0.39 8.3%
Duplex and Multi Family:
Domestic Interior Use - Charge per Unit $ 490 $ 510 4.1%
Exterior Use - $/Sq ft $ 0.27 $ 0.27 0.0%
Non-Residential by Meter Size
3/4" $ 7,530 $ 7,880 4.6%
1" $ 21,730 $ 22,750 4.7%
1-1/2" $ 45,300 $ 47,410 4.7%
2" $ 69,070 $ 72,290 4.7%
3" $ 157,920 $ 165,290 4.7%
4" and above assessed on individual basis
October 18, 2011 -8- ITEM 20
B. Wastewater/Sewer Plant Investment Fees (Ordinance No. 141, 2011, Amending Chapter 26 of the City
Code to Revise Sewer Plant Investment Fees.)
The wastewater plant investment fees were developed to recover the current value of past investment and the current
value of future growth-related investment through 2040. This method includes calculating net wastewater system
equity, capacity units and determining the net system equity per unit. The Wastewater PIFs are calculated to decrease
3% for 2012. Like the Water PIF, this reduction is in part due to a change in the basis for calculating construction work
in progress. Other recent revisions to the long range capital improvement plan have reduced the Wastewater PIF
calculations.
Wastewater PIF charges for a single family lot would decrease from $3,550 to $3,440, a reduction of $110. The
following table shows the proposed changes.
Wastewater Plant Investment Fees
2011 2012
Existing Proposed % Change
Single Family Residential $ 3,550 $ 3,440 -3%
Duplex and Multi Family, per unit $ 2,490 $ 2,410 -3%
Non-Residential by Water Meter Size
3/4" $ 7,100 $ 6,880 -3%
1" $ 17,880 $ 17,300 -3%
1-1/2" $ 31,490 $ 30,480 -3%
2" $ 55,290 $ 53,520 -3%
3" $ 150,130 $ 145,310 -3%
4" and above assessed on individual basis
C. Electric Development Fees (Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to
Revise Electric Development Fees and Charges.)
Electric development fees recover both actual on-site costs (building site charges) and allocated off-site costs (electric
capacity charges) to serve commercial or residential development. These fees are typically adjusted annually to reflect
changes in costs. Proposed 2012 fees will increase slightly for some developments (1%-3%) and decrease slightly
for others. The table below shows the changes for a typical single family lot and a model commercial development.
Typical Single Family Lot
8600 square feet, 70 foot of street frontage, 150 amp service, 4/0 secondary service
Current 2011 Proposed 2012 $ Change % Change
$3,139 $3,233 $94 3.0%
Model Commercial Development
82,000 sq ft, 1900 ft street frontage, 250 ft primary srv, 600 amps, 208Volt, 3-phase, 1-transformer
Current 2011 Proposed 2012 $ Change % Change
$31,076 $30,981 -$95 -0.3%
D. Stormwater Plant Investment Fees (Ordinance No. 144, 2011, Amending Chapter 26 of the City Code
to Revise Stormwater Plant Investment Fees)
The Stormwater PIFs are recommended to increase 1.2% in 2012. The increase represents a $7.3 million increase
in capital facilities added since the last study. However, annexation has caused an increase in total developed and
developable acres which results in an increased divisor in the calculation. The two changes result in a modest
increase of 1.2%. The PIF will increase from $6,313 per acre to $6,390 per acre.
Stormwater PIF charges for a typical single family lot would increase from $1,069 to $1,082, an increase of $13.
October 18, 2011 -9- ITEM 20
PIF Change Summary
The following chart summarizes the impact of the proposed PIF and development fee changes on a typical residential
lot:
PIF Changes for Typical Single Family
Current
2011
Proposed
2012
Change
%
Change
$
Water1
Raw Water2
Wastewater
Stormwater3
Electric1
Total
$3,826
$5,203
$3,550
$1,069
$3,139
787
$4,084
$5,203
$3,440
$1,082
$3,233
$17,042
6.7%
0.0%
-3.1%
1.2%
3.0%
1.5%
$258
$0
(-$110)
$13
$94
$255
1Typical, based on lot size of 8,600 sq. ft.; 70-foot street frontage
2 No increase for Raw Water
3 8,600 sq. ft. lot plus estimated 6,156 sq. ft common area and right-of-way; .5 run off
coefficient
Next Steps:
November 1, 2011 City Council Meeting
• Second Reading of these seven Ordinances
November 15, 2011 City Council Meeting
• First Reading of Residential Energy Service Rate Ordinance with seasonal and seasonal-tiered options
• First Reading of Service Charges Ordinance with increases for after-hours service charges and a monthly fee
for manual meter reading for customers who opt out of the Advanced Meter Fort Collins project.
December 6, 2011 City Council Agenda
• Second Reading of Residential Energy Service Rate Ordinance
• Second Reading of Service Charges Ordinance
January 1, 2012
• Effective date of the seven Ordinances included in this agenda item summary and for changes in service
charges. (Monthly rate ordinances are effective for billings with meter readings on or after this date.)
October 18, 2011 -10- ITEM 20
the total increase. That amount will depend on the rate form option selected by Council at the November 15, 2011
Council meeting. Utility programs can help customers to reduce their water and electric use and to lessen the financial
impact of the rate increases.
ENVIRONMENTAL IMPACTS
Funding from the proposed electric rate increase will allow the Utilities to continue programs and services aimed at
meeting the goals and objectives of the Energy Policy and Climate Action Plan. Accurate seasonal price signals may
delay/ avoid the need for additional peak electric generation. Water and wastewater rates provide funding for
conservation programs and environmental regulatory compliance.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BOARD / COMMISSION RECOMMENDATION
At its September 15, 2011 meeting the Water Board recommended approval of the proposed 2012 water and
wastewater monthly rates and the plant investment fees for 2012.
At its October 6, 2011 meeting, the Electric Board voted to recommend approval of the proposed 2012 electric rates
(exclusive of the Residential Energy Services Rate) and the proposed 2012 electric development fees.
PUBLIC OUTREACH
Notice of the proposed electric rate changes was published in the Coloradoan on October 2, 2011 and a mailing was
sent to City electric customers outside of the city limits in accordance with PUC requirements. Electric rate forms were
discussed at the Council Finance Committee on August 15, 2011 and at a Council Work Session on September 13.
A written review of all the rates was included in the October 10, 2011, Council Finance Committee Agenda; however,
discussion of the item was postponed until October 17, 2011.
Staff plans to conduct outreach to all customers following adoption of the Ordinances.
ATTACHMENTS
1. 2012 Utility Rate Increases – Explanation of Change
2. Staff memo to Council related to water rate increase, September 19, 2011
3. Staff memo to Council related to electric rate increase, September 19, 2011
4. Staff memo to Council related to plant investment fees, September 19, 2011
5. Council Work Session Summary September 13, 2011
6. Council Finance Committee, August 15, 2011
7. Water Board minutes, September 15, 2011
8. Electric Board minutes, October 6, 2011
9. Power Point Presentation
ATTACHMENT 1
2012 Utility Rate Increases
Current
Original Projection Recommendation
2011-2012 Budget 2012 Revised Budget Explanation of Change
Electric
Purchase Power 4.53% 4.80% 2012 purchase power rate will increase 6.4% for Fort Collins. This was projected at 6.0% in 2010 when the 2011-2012 Budget
was prepared.
Capital Funding 1.70% 3.50% Expenditures have exceeded revenues since 2008. During this time, much of the capital and system replacement program has
been intentionally funded by reserves, which has resulted in reduced L&P reserves balances. Two substations ($11.3 million),
the SW Annex Electric Transfer ($1.9 M to date) and replacement of aging infrastructure ($7.4M) have proceeded without
raising rates for the construction. Miscellaneous revenues (primarily interest income and development fees), which have helped
to fund fixed costs and capital projects and system replacement in the past, have declined significantly. Growth in energy
sales, which has also forestalled rate increases in the past, has declined. Projected reserves are now anticipated to fall below
minimum policy levels as early as 2013 without a series of rate increases starting in 2012. The 1.7% originally planned, is no
longer adequate to reverse this unsustainable deficit.
Total Electric 6.23% 8.30% The 8.3% projection does not include rate increases for the Fort Collins Solar Program and the Energy Effeciency Financing
Program 2012 Budget exception requests.
Water 0% 6% Actual total water fund revenues have decreased 23% between 2006 and 2010. A 6% rate water rate increase is needed to
address steadily declining water fund revenues due to customer conservation and wet weather. These uncertainties, as well as
the slow economy, have made it difficult to project water revenues. Actual revenues from the sale of water were $6.4 million
less than projections between 2006-2010. Since 2010, demand projections have dropped from 150 gallons per capita per day
(gpcd) to as low as 138.5 gpcd. The water fund has also been impacted by a drop in interest revenue and plant investment fees
requiring the Water Fund to rely more heavily on rate revenue to cover fixed costs and capital improvements. The proposed
increase is necessary to stabilize revenue and net income and maintain adequate reserves to fund long term capital
maintenance programs.
Wastewater 8% 8% No change from 2011-2012 Budget.
Stormwater 0% 0% No change from 2011-2012 Budget.
ATTACHMENT 2
Utilities
City of
electric
stormwater. wastewater water
7CC Wood Street
Fort
CoLLins
:
utilities @fcgov. corn
fcgov.cornJutthlies
MEMORANDUM
Date: September 19. 2011
To: Mayor Weilkunat and Councilmembers
From: Kevin Geruig, Water Resources & Treatme.i.X)peia[ions Manager
-tJ
Brian Janoni.s. Utilities Executive Directoi
,
Ii
Thru: Darin Atteherry. City Manager ‘‘rfi )
Re: 2012 Water Fund Rate Increase
The proposed 6 percent water rate increase for 2012 is needed to address steadily declining water
fund revenues. The impact of customers’ response to water saving measures. the unusually wet
weather in 2009 and again this year, as well as the decline in the economy, has negatively
impacted water fund revenues. The unstable environment created with the changes in the
economy, conservation, and weather makes it difficult to project water fund revenues. Actual
operating revenues between 2006 and 2010 were a total of $6.4 million less than projections.
As of the end of May the 2011 demand projections have been decreased from 150 gallons per
capita per day (gpcd) to 145.9 in order to accommodate the wet year. The May demand
adjustment reduces the 201 lopcradng revenue projections by $159,000, or 1°A. More recent
information indicates that it may drop by an additional 5(4
to [38.5 gpcd resulting in a further
reduction in revenue of $675.000.
The following is a five year analysis of actual water fund revenue from 2006-2010:
• Actual total water fund revenues between 2006 and 2010 have decreased 23°A.
• Operating revenue has decreased l0’7 over the last five years after factoring in the
6% rate increases (3’% in 2007 & 2010).
• Development related revenue declined 74(4.
• Non operating revenue decreased 63%
• With shrinking develonment revenue, operating revenue is being relied upon to cover
more of the costs.
• In 2006 operating revenue was 7ILA of total revenue: by 2010 it was 89/o 01 total
revenue.
• Demand decreased 15(4 over the last five years and is projected to drop by 19 if the
2020 water conservation goal is met.
The proposed rate increase is intended to stabilize revenue, as well as net income, and rnaiiitaii
adequate reserves which help fund long term capital maintenance projects. Net incoim’ has
declined an overall $4.8 million from 2006 to 2010.
City cf
Fort Collins
Although the water utility continues to experience increased costs in chemicals, supplies and
energy. the overall increase in actual expenses from 2006 through 2010 have been contained at
10’A. During that period the cost of the operating programs, which includes treatment,
transmission and distribution, engineering, laboratory services, water resources and conservation.
increased by 169; administrative costs increased 24Vc, and interest expense decreased 504. The
Water Fund’s 2011 operating budget is 6°/c lower than 2010’s operating budget. The graphs
below demonstrate a 5-year history of actual revenue and projected revenue through 2020. with
and without the 6% rate increase in 2012. Additional graphs include a 5-year history of
expenditures in the water fund, the comparison of projected operating revenues vs. actual
operating revenues, and the impact on net income.
$10
$40
$35
$30
I Develop Revenue
Water Fund Revenue
With 0%Rate Incr 2012 & 2°/i 2.5%2013-2014
C Other Nonoperating
-.-—-_—-—.-•-•-----•---. mOperatingRevenue
Actual ojected
Revenue —-- - Revenue
$25
$20
$15
$5
S.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
I Develop Revenue
Water Fund Revenue
With 6% Rate lncr 2012 & 8% 2013-2015
0 Other Nonoperahng
$40 — -------• ------- iOperatirigRevenue
-
$30
$25
$20
$15
$10
$5
2006 2007 2008 2009 2010 2011 2012 2013 20’4 2015 2016 2017 2018 2019 2020
Ft°o([
ins
Water
Operating
Expenditures,
Capital,
&
Bond
Principal
IapitalF’ojects $3,623,369 $3,318,667 $3,401,817 $3,754,579 - $5,515,793
D kro- CaptaI $841,535 $617,586 $594,378 $713,005 $499,069
oBondftincipal $5,300,935 $4722,368 $4,868,800 $4,227,982 I $2,574,911
C Transfer to CS & A F,rid $2,835,917 $2,901 642 $3,859,087 $3,839,790 $3,897,100
O
Pynnts
& Transfers $4,318,426 $4,309,071 $4,229,206 $3,916,545 $3,553,911
D Water Conservation $- $. $- $1,269 $273,262
DWaterResources $1,376,381 t. $1,389,636 t $1,386,216 $1,493,842 f $1,449,875
4 - —
0
Water Quality $878,464 $940,117 $874,180 $941,200 $897,282
•WaterT&D Eng $2056236 $2167859 $2316977 $2255027 $2369234
4-.-
0
Water F1’oduction $3,898,511 $4,160,623 $4,355,886 $4,772,714 $4,444,073
•
Water
ter
Ope-ators $451,944 $466,530 $522,268 $543,655 $583,148
$30
$25
$20
$15
$10 -i
$5
—
2006 2007 2008 2009 2010
$10
$81
$6
City
of
Fort
CoLLins
U,
0
Water
Revenue
-
Charges
for
Services
Actual
Revenue
is
$6.4
mIllion
Iessthan
projected
2006-2010
$30
$251..
-
$20
$15
sioL
$5
4
2006
2007
2008
2009
—.—
Actual
Operating
Revenue
2010
Fojected
Net
Income-
Water
Fund
2006-2010
$4
$2
$-
L*
2010
2006
2007
2008
2009
—.—Net
Income
$7,904,128 $6,946,393 $5,326,007 $1,124,766
$3,144,821
ATTACHMENT
3
Utilities
C.t
f
electric stormwater
wastewater
I water
0
700 Wood Street
Fort
CoLlins
970221.66
19
utllhties@fcgov corn
fcgov.com/utililies
MEMORANDUM
DATE:
September
19,
2011
TO:
Mayor
Weitkunat
and
Councilmembers
FROM:
Steve
Catanach,
Light
and
Power
Operations Manager
41
Ellen
Switzer, Utilities Financial
Operation4anager
.
st’
Brian
Janonis,
Utilities
Executive
Director
THRU:
Darin
Atteberry,
City
Manager
RE:
2012
Electric
Rates
-
Additional background
for
the
September
26,
2012
Otyof
rtIns
the total cost of operating, maintaining and improving electrical infrastructure. The original 2012
budget provided a I increase to begin funding more of the costs of the capital improvements through
monthly rates, however, the draw down on reserves has been accelerated due to significant decreases in
interest income and development fee revenue. Without a series of 3.5% rate increases starting in 2012
to cover the costs of capital additions and improvements, Light and Power Fund working capital
reserves will fall below minimum policy levels starting as early as 2013. (Note: These proposed 3.5%
increases do not include any purchase power adjustments.) The following chart shows the reduction in
these revenue sources.
Light and Power - Non Operating Revenues
$9- -—
$8 . I Misc Reenue
- —1 I —-——- o DeIopment Fees
$6 -
— • inteist
w - I-....
2006 2007 2008 2009 2010 BudOet Est 2011 Otiginat Revised
2011 Budget Est2012
2012
• Development related revenue declined 67% between 2006 and 2010.
• Interest revenue decreased 63%
• With these shrinking revenues; operating revenue is being relied upon to cover more of the costs
of capital additions and replacements.
Net Assets:
Change in Net Assets declined from $9.8 million in 2006 to $1.2 million in 2010 and was -$1.0 million
in 2009. This provides funding for all system additions and capital projects except for those funded by
bond issues. The proposed 8.3% rate increase is will begin to stabilize revenue, as well as net income,
and maintain adequate reserves for operating and capital contingencies. The graph that follows shows
the annual change in net assets over this period.
Change In Net A5seta L&P Fund
(M Rind fliwnu.e .me AS Op.ratJn E.sp.nua IncIui5n Depr.cletton)
512
-.-- Change In Net Melts
62782OW
5(2)
City of
ECcjins
Increases for implementation of the Energy Policy Services have been funded by earlier rate increases in
2010 and 2011. However, labor, services and materials for Light and Power operations and
maintenance, as well as, capital projects and system additions and improvements continue to increase.
Since 2006 the combined cost of the Light and Power Operations and System Additions and
Replacement programs increased 25%, with an increase of 19% in personal services and an increase of
34% in non-personal services purchases. During periods of consistent 3+% annual growth, increased
fixed costs were able to be funded by revenues from increased kWh sales. KWh sales have stabilized
and even declined over the last few years. While this is consistent with Energy Policy objectives, it does
not provide adequate ongoing funding for the distribution system. Rate increases are required to cover
the increasing fixed costs of operating and improving the electric system.
Summary: The following graphs show the gap between Light and Power’s total revenues and
expenditures. Revised Estimate 2012 includes the projected rate increase of 8.3%. Please observe that
even with this rate increase, expenses will continue to exceed expenses and the Utility will continue to
draw on remaining reserves for the difference.
Light and Power - Expenditures with Depreciation
O,fi P...d Oil
Iudg2OlO 2012
Light and Power - Expenditures without Depreciation
-
$120- --—---
4-_;i-
‘
C 1
lii
I
2004 2007 2004 0009 2010 bidcil2Oll 0112011 Odgil R.iadE,l
Totai Revenuwa ITotaI fljy lUdi4 2012 2012
While the draw down on reserves was intentional, reserves are projected to be reduced to minimum
levels in the next few years. A series of rate increases, starting in 2012 are necessary to reverse this
unsustainable deficit.
$140
$120
$100
$80
fr
$40
$20
2004 2007 2001 2009 2010 Budgil 2011 Lii 2011
1otaI Revenuel nTolai Expancttures
Recommendation: Staff recommends an 8.3% rate increase for 2012.
ATTACHMENT
4
Utilities
C
ity
of
electric
storrnwater wastewater
water
700 Wood
Street
Fort
ColLins
97Q2
TOD
utilities
@fcgov.
corn
(cgov corn/utilities
MEMORANDUM
DATE:
September
19,
2011
TO: Mayor
Weitkunat
and
Councilmembers
FROM:
Bill
Switzer,
Rate
Analyst
•
Brian
Janonis,
Utilities
Executive
Directori!6
ThRU:
Darin
Atteberry,
City
Manager
€if
RE:
2012
Utility
Plant
Investment
Fees
—
Additional
background
for
the
September
26,
2012
Council
....F&iboWns
Water Plant Investment Fees
Initially, in 2005, the approach used to calculate the water PIFs was the Buy-In approach based
on the understanding that all “backbone” and treatment facilities necessary for future growth had
been constructed. However, to accommodate the additional capital needed to meet future
growth, a 14MG treated water reservoir was scheduled (in 2009) for construction in 2016-17 for
an estimated cost of $23M The need for this project resulted in a change to the Hybrid
approach for the 2009 study.
Table A below shows an overall increase of 4.7% to the proposed 2012 water PIFs. All 2011
values are in current dollars. Three items of significance need to be highlighted:
Water Plant investment Fee analysis and update - Table A
2009 Study 2011 Study for2Ol2 Fees
Descnptlon Change
$ $ $
Existing Backbone Facilities
Distritution System (16-Inch and larger) 87,1 00.000 86,400,000 (700,000) -0.8%
Less $5.5M Contract investment I 968 (10,1 00,000) (1 0800,000) (700,000) 6.9%
Other Facilties 237,100.000 250.700,000 13600,000 5.7%
Less $2,313K Contract investment 1988 (4,200,000) 14,500,000) (300,000)
Less $668K Contract investment 1999 (900,O00 (1,000,000) (1 00,000)
Proposed Growth Related Capital Mdltions
Capital improvements 27,660,000 3,000,000
Regulatory projects attributed to unused capacity (27.7 of 78.0 Mgd) - 31,400,000
Total capital Additions 27,660,000 34,400,000 6,740,000 24.4%
CWIP 2010 10,894,766 309,746 (10,585,020) -97.2%
Total Existing Backbone Facilities 347,554,766 355,509,746 7,954,9602.3%
Less: Outstanding Existing Debt Principal (a) (29,800,000) (23,303,000) 6,500,000 -21.8%
Total Debt Service — (29,800MOO) (23,300.000) 6,500,000 -21.8%
Total System Valuation 317,754,766 332,209,746 14,454,980 4.5%
Goss System CapacIty 87,000.000 87,000,000 0
Less: Contract CapacIty 9,000,000 9,000,000 0
Not System Capacity, GPO 78,000,000 76,000,000 0 0.0%
Proposed PIF, $ per gpd 4.07 4.26 0.19 4.7%
(a) Ewisting debt principal excludes remaining A-Bpilncipaipayrnents.
1. The following changes have been made to the proposed capital additions:
• A 14MG treated water reservoir ($23M) scheduled for 201 6-2017 was removed from the
CIP for reasons described by the Lisa Voytko: “it has been determined that the
proposed new 14 Mgal reservoir is not required, iF a new chlorine contact basin at the
Water Treatment Facility is constructed. While storage for emergency, fire and
operational needs is still required, it can be met by using the existing finished water
reservoirs on site to their full extent. Currently part of the volume in those reservoirs
must be reserved to meet chlorine contact time, a requirement for disinfection. When a
new stand-alone chlorine contact basin is constructed, that volume in the reservoirs will
CT
o1
Fart
Collins
be
available,
and
will
meet
the
projected
future
needs
of
the Fort
Collins
rate
payers
for
storage
(fire,
emergency,
operational).”
•
There
are
also
significant
projects
planned
for
regulatory
purposes
(including
the
chlorine
contact
basin
mentioned
above).
Those
portions
of
the
regulatory projects
attributable
to
unused
capacity
are considered
as
growth
related
expenses
and
included
in
the
PIE
calculation.
Wastewater Plant Investment Fees
C:ey cf
fort
CoWns
In 2005, the Hybrid approach was and continues to be used to calculate the wastewater PIEs
because the City’s wastewater growth met the criteria (above) for this approach.
Table B below shows an overall reduction of 3% to our 2012 wastewater PIEs. Four items of
significance need to be highlighted:
Wastewater Plant Investment Fee analysis and uDdate -Table B
2009 Study 2011 Study
Change
Description $ $ -
Existing Backbone Facilities
Coflection System (10-Inch and larger) 61,900,000 67,600,000 5,700,000 9%
Other Facilities 215,600,000 232,700,000 17,100,000 8%
Less $19M Contract investment 1987 (35,800,000) (38,100000) (2,300,000) 6%
cWl) ‘:•. I 8,400,000 1,6b1 562 ( IS 798,4313; -91%
Total Existing Backbone FacilitIes 260,100,000 263,801,562 3,701,562 1%
Proposed Capital Additions
Capital Improvements (w/o collection) 91,000,000 55,500,000 )95,50Q,000 -39%
Capital rn proveme nts - collection only 1 0,661 081 1 0,400,000 (261,03!) -2%
Regulatory projects attributed to unused capacity (9.5 at 27.2 Mgd) . 0 1 9,400,000 19,400,000
Total Proposed Capital Additions 101,661,081 65,300,000 (16361,081) -16%
Debt Service
Proposed Debt Carrying Costs
Less: Outstanding Existing Debt PrIncipal (39,700,000) (37,300,000) 2,400,000
Less: Poposed Debt Principal 0
Total Debt Service (39,700,000) (37:300,000) 2,400,000 -6%
Total System Valuation 322,061,081 311,801,562 (10,259 519) -3%
Giss System Capacity 29,000,000 29,000,000 0 0%
Less: Con tract Cape city 1.800.000) 1.800000) 0 0%
Net System Capacity, Gala per Day 27,200,000 27,200,000
Proposed PIF, $ per gpd $ 1184 $
1 1.46 -3%
1. A $38M South Process Train Expansion project planned for 2014-15 was removed from
the Capital Improvement Plan (CIP). In 2009, projected growth needs were re-evaluated
with the result that this project is no longer necessary due to significantly reduced growth
projections.
2. There also are significant projects planned for regulatory purposes. Those portions of
the regulatory projects attributable to unused capacity are considered as growth-related
expenses and included in the PIF calculation.
3. In 2009, in a manner similar to the situation detailed above for water PIFs, we incorrectly
classified all 2008 CWIP ($18.4M) as growth-related construction. More recently
available detailed reports reveal that related to both 2008 and 2010 CWIP totals; little
Ft°oLLins
was
applicable
for
backbone
facilities.
Thus
the
value
of
the
system
was
overstated
in
the
2009
calculation
for
the
2010
PlFs.
4.
As
with
water
PIFs,
an
average
calculation
of
the most
recent
four
years’
history
has
been
used
to
set
estimated
usage
for
new
customers
with
tap
sizes
of
3”
or less.
The
most
recent
four
years’
history (2007-2010)
shows
significant reduction
Backbone System Investments
Existing infrastructure equity
Replacement Costs
Master Plan Expenses
Flood Mapping
Developer Repays
Annual Inflationary Increase
Total
Capital Improvements
2008/10 Cost Levels
Annual Inflationary Increase
Total
Total Backbone Facilities asof 12/31
Total Principal Outstanding
Total Backbone System Equity
Amount per acre
Average runoff coefficient
Fee per acre adjusted for run-off factor
Estimated fee per equivalent residential un
Existing developed & developable acres
Proposed developed & developable acres
Total projected
Fto11ins
77 1.2%
13 1.2%
1. The existing developed and developable acres have increased significantly, primarily from
the South West Annexation which increased the Fossil Creek portion within the City limits by
over 50%. This increase in the divisor of the PIE formula almost offsets the 11.2% increase
In system backbone equity.
Table C
2009 studi 2011 study Change
Proj 12/31/09 Proj 12/31/11 $ [ O/,
$146,369,006 $ 11,833,301
$ 4,683,808 $ (966,691)
$151,052,815 $ 10866,610
8.8%
7.8%
$ 134,535,705
$ 5,650,500
$ 140186205
6,897,000
$ 289,674
$ 7,186,674
$ 147372,879
$ 34,087,500
$ 113,285,379
$ 3,472
0.55
3,484,000
$ 111,488
$ 3,595,488
$
$
$
(3,413000) -49.5%
(178,186)
(3,591,186) -50.0%
$ 154,648,303 $ 7,275,424 4.9%
$ 28,622,500 $ (5,465,000) -16.0%
$
ATTACHMENT
5
Utilities
City
of
elctic
stomiwater
wastewater
water
700
Wood
Street
Fort
CoLLins
IICO
80522
974
=
TDD
utilities@fcgov.com
fcgov
coin/utilities
Memorandum
Date:
September
15,
2011
To:
City
Councilmembers
Thru:
Darin
Atteberry, City
Manager
Brian
Janonis,
Utilities
Executive
Director
From:
Patty
Bigner, Utilities
Customer
and
Employee
Relations Manager
Re
Work Session
Summary
(Partial)
—
September
13,
2011
Electric
Rate
Options
All
City
Councilmembers
cQins
Examples
of
customers
in
the
proposed
OS
customer
class include
housing
services
for
condos
and
apartments
(lights, laundry,
etc.);
small
retail;
professional offices; non-profit
agencies;
and
small
churches.
The proposed
GS
25
customer
class includes
fast
food restaurants, medium-
sized
churches,
restaurants,
larger
retail,
fraternity
and
sorority
houses,
convenience
stores, copy
centers
and
banks.
The
remaining large
commercial
industrial
rates
will
remain
in
the
coincident
peak form
but
with
a
Cityof
Fort
CoLLins
of
the
rate,
if
it
is
changed,
will be
delayed beyond
January
1,
2012.
Typically,
rate
changes
occur
with
the
first
meter
reading
of
the
new
year.
Staff
plans
to
move
forward
with rate
changes
with
the
exception
of
the
Residential
Energy
Rate.
Rate
ordinances for
the
Residential
Demand,
GS,
GS
25,
GS
50 and
GS
750
rate
classes
will be
discussed
at
ATTACHMENT 6
1
Attachment 7
Excerpt from Unapproved Water Board Minutes, September 15, 2011
2012 Water/Wastewater Budget Exceptions and Rate and PIF Recommendations; 2012
Stormwater Budget Exceptions and Rate and PIF Recommendations
(Attachments available upon request).
Chairperson Janett introduced this item and reminded the current members that the previous
Water Board recommended a 3 percent rate increase for 2011-2012. They also recommended
small incremental rate increases more often rather than large rate increases less often. The Water
Board made this recommendation to Council; however, they did not approve a 3 percent rate
increase for 2012.
Water Fund
Financial Analyst Rita DeCourcey presented information on this item and stated the budget
exceptions include a 6 percent increase for the water fund. This is needed to stabilize the water
fund revenue. This is projected to result in $1.5 million additional operating revenue in 2012,
depending on demand. Payment in Lieu of Taxes (PILOT) transfers will have to be increased by
approximately $88,000 to cover the 2012 rate increase. Additional funds are needed to accelerate
the normal upgrade process for meter replacements to meet the timeline of the Automated
Metering Infrastructure (AMI) project.
Wastewater Fund
There are no exceptions to the wastewater fund. There is an 8 percent water fund rate increase
included in the original 2011-2012 biennial budget for the wastewater fund. The 6 percent rate
increase for 2012 is needed to stabilize the water fund revenue, fund long term capital programs,
meet debt service requirements, maintain adequate reserves, and meet financial reserve policies.
Water Fund Revenue
Total Revenue has dropped almost 23 percent from 2006 to 2010. Since the Operating Revenue
has increased from 70.7 percent in 2006 to 88.5 percent in 2010, it has to cover a greater
percentage of the costs. Demand has dropped 15 percent from 172 gallons per capita per day
(gpcd) to 146 gpcd.
Water Fund Expense Analysis 2006-2010
There was a 10 percent overall increase in operating and interest expense and a 16 percent
increase in operating program expenses, including an increase in Commodity Costs (chemical
costs increased 34 percent even though less water was treated). Payments and Transfers
increased 44 percent, including increased funding for the General Employees Retirement Plan
(GERP) and asset management. Interest Expense decreased 50 percent because 2002 bonds were
paid off and 1998 bonds were refinanced at lower interest rates. Operating expense for the
CS&A fund increased 28 percent from 2006 to 2010, including 11 percent for Asset
Management. Ms. DeCourcey noted most of the costs for Asset Management are one-time costs.
Water Fund Fixed and Variable Expense
87 percent of the costs are fixed considering PILOTs. If PILOTs are removed, approximately 94
percent of the costs are fixed. Demand decreased 15 percent and the total variable expense
increased 11 percent. This includes increased electrical and chemical costs such as alum and
lime. Ms. DeCourcey noted that alum and lime are utilized the most in the treatment facility.
2
Water Fund Net Income
The net income has dropped approximately $4.8 million from 2006 to 2010.
Water Fund Reserves
As Is Rate Increases and Capital per 2011 – 2012 Budget and Revised Capital
If Utilities looks at capital reserves without the rate increase and the revised capital budget, the
capital budget will be increased by approximately $33 million from 2012 to 2020 above the
original 2011-2012 budget. If Utilities looks at limiting the capital expense approximately $5
million from 2012 to 2014, this will assist the reserve calculations. Utilities will look at
prioritizing capital projects to see what needs to be completed in the future. The water fund 6
percent rate increase is an across the board increase and does not vary by customer class. A
typical residential customer’s bill will increase $1.47 for winter use (5,000 gallons) and $3.93 for
summer use (21,000 gallons).
Water Rate Comparison
Ms. DeCourcey showed a graph comparing the water rates for the City of Fort Collins with other
cities in the Front Range. This water rate comparison is for average residential usage in January
and July.
Board discussion:
A board member asked for clarification on the administrative costs and why they increased?
The biggest component is the transfer to the CS&A fund and this included the new asset
management program. Water Engineering and Field Services Operations Manager Jon Haukaas
stated most of the costs are up-front fees associated with the consultants as a part of setting up
the program.
A board member questioned the item concerning over charging from the Water Fund Expense
Analysis. Ms. DeCourcey stated the internal IT department overcharged Utilities for an internal
service charge. Utilities will receive a reimbursement from this overcharging.
Will customer billing become less costly? Financial Analyst Phil Ladd stated Utilities does not
expect an increase and no upgrades are planned to the billing system. Some other services will be
brought in house and this may offset the costs.
Are more people having trouble paying their water bill? Mr. Ladd stated the collection rate has
stayed steady. The City of Fort Collins has a lien ordinance which states that if a tenant moves
out of the property without paying their water bill, the bill is collected from the property owner
when the property changes hands.
A board member noted reserves decline over time. At what level does Utilities want the reserves
and why at that particular level? Ms. DeCourcey stated Utilities would like to cover their capital
appropriations including prior year and new appropriations, a 5 percent operating reserve, a
principal and interest reserve, a debt service reserve, and an Art in Public Places reserve.
Are the costs for the Halligan project included in the projections? Yes, those costs are included
in prior year capital projects.
A board member suggested showing the rate comparison over time rather than showing year to
year increases.
3
Chairperson Janett stated when the Legislative, Finance, and Liaison (LFL) Committee reviewed
the financial information at their September meeting, they noted that even though demand is
going down, fixed costs are increasing. Water Resources Manager Dennis Bode reiterated this
point by stating the water use for August was less than predicted. Ms. DeCourcey stated this may
be due to the fact that industry is learning how to use less water in their processes and consumers
are more educated on water usage.
Chairperson Janett stated this is a dilemma because it sends a mixed message to consumers that
they should save water even though their rates are increasing.
Is the 15 percent decrease in demand per person? Yes.
Chairperson Janett requested the information presented to the LFL Committee concerning the
concept of less demand and increased costs be sent to the entire board.
Stormwater Fund 2012 Budget Exceptions
Mr. Ladd presented information on this item and stated there are three budget exception requests
for the Stormwater Fund:
• Land Acquisition – Remove structures from Poudre River Floodway
• Land Acquisition – Master Plan Flood Mitigation project property
• Household Hazardous Waste Community Event Increase (The event held in 2011
exceeded expectations so additional funding is needed for 2012.)
Board discussion:
Do the expenses for the hazardous waste event include paying for the waste to be hauled away?
Yes, the items are removed by professionals who handle household hazardous waste.
What is the largest volume of items collected? Environmental Regulatory Specialist Susan Strong
stated paint is the most collected item. A pilot project is being implemented to use collected paint
for a graffiti abatement program.
How much is going to the landfill versus what is going down the drain? Ms. Strong stated she is
unsure how much is collected versus what is sitting in garages and such.
Water Resources and Treatment Operations Manager Kevin Gertig stated there will also be a
prescription drug collection event sponsored by Police Services. This event will be held in
October 2011.
A board member stated he felt the numbers are overwhelming. He feels that it is important to
portray the information to the public and feels staff should remind the public of the costs
associated with projects such as the renovation of the Mulberry Water Reclamation Facility
(MWRF). It is also important to consider population density when presenting the numbers, such
as comparing Denver to the City of Fort Collins.
Stormwater Rate Comparison
Mr. Ladd presented a graph showing stormwater rates for the City of Fort Collins compared with
other cities along the Front Range. Utilities does not anticipate an increase in fees.
Will there be any reduction in fees? Yes, there is the potential for reduced fees because debt will
be paid off in 2017.
4
How long has the rate been at $14.26? It has been at this current rate since 2005. Stormwater
and Floodplain Program Manager Ken Sampley stated since these fees have funded capital
improvement projects, it is not a straight comparison when looking at other cities in the graph.
A board member expressed concerns that Utilities promised the rates would be reduced and they
haven’t been reduced as of yet.
Plant Investment Fees (PIF) (Developer Fees)
Utility Rate Analyst Bill Switzer presented information on this item and stated City Code
requires Utilities to review the fees annually and submit for Council approval at least every
second year. Plant Investment Fees are an additional source of revenue and help offset rate
increases. The fees presented are the maximum allowable. A consulting company was hired in
2005 to set up a new PIF model. In March 2011, the City Manager asked Utilities to review the
fees.
• Water PIFs increased 4.7 percent for all commercial customer classes.
• Wastewater PIFs decrease 3 percent for all customer classes.
• Stormwater PIFs increased slightly by 1.2 percent. Increased infrastructure was offset by
an increased service area.
Board discussion:
Chairperson Janett stated because of the reduction in water usage, there is excess capacity in
both the water treatment and wastewater treatment plants. The concept of sharing capacity with
the special districts has been discussed. What would happen with the PIFs at that point? Mr.
Switzer stated this would be beneficial in relationship with Capital Investment Fees.
Chairperson Janett stated this is another incentive to encourage cooperation with neighboring
districts.
Additional Fee Changes – Construction Water
Mr. Haukaas stated there are additional fee changes including construction water fees and
miscellaneous service charges. Construction water fees are applied to new construction projects
for water that is not metered. The contractor pays 1.5 months of their base charge. Since there
has been a slow down in the building industry and some of the projects have taken longer than
anticipated, Utilities is losing revenue and metering of actual water usage with these construction
projects. Utilities would like to initiate a monthly billing charge. As soon as the property has a
certificate of occupancy, the user would receive a meter and would be charged actual usage at
that point. If there is a large development, a temporary meter pit may be installed to meter the
usage. Utilities can track the usage better with this implemented.
Additional Fee Changes – Miscellaneous Service Charges
The after-hours water connect fee and the fees for special trips will increase because Utilities
desires to recover their actual costs. The after-hours water connect fee of $85.35 includes two
hours of personnel time and one hour of vehicle usage time.
Board discussion:
What does Utilities define as a special trip? A special trip is defined as any service request from
a citizen including water turn-ons and turn-offs.
This does not include normal projects such as turning on a water meter? No.
5
Why would Utilities make a trip after hours? This is simply because of customer service issues.
Will the 6 percent rate increase for 2012 pay for future projects or will there be another rate
increase? Utilities is only asking for the board’s recommendation for the 2012 budget. Utilities
needs time to determine what other projects are priorities and what kind of rate increase may be
needed at a later time. The current rate increase is to stabilize the revenues and balance
increasing expenses.
A board member suggested it might be beneficial to remove the line item concerning the asset
management expenses from the operating expense presentation when the information is
presented to Council. This may be helpful in showing that the increase was not as severe because
most of the costs associated with asset management were up-front fees. Also, when presenting
information on the average bill, it may be beneficial to present the information relative to several
years’ worth of data. It may also be beneficial to show what the average consumer will conserve
over time.
Vote on the motion. It passed unanimously.
Vote on the motion. It passed unanimously.
Board discussion:
A board member asked for more details on the land acquisition items under the 2012 Budget
Exception Requests for the Stormwater Fund. Mr. Haukaas stated that when the 2011-2012
budget was submitted, there was not a major capital project identified for 2012. Typically,
Utilities does approximately $3 million in capital projects every year. At that time, the only
identified stormwater item was for approximately $300,000. If a project is not identified, the
funds would be earmarked for later capital projects. Utilities desires to have the budget exception
in place for a grant match for acquiring property in the floodplain and floodway areas. Utilities
desires to have funds available for buying properties to remove from the floodway in the College
Avenue and Vine Drive area. The second budget exception relates to a master plan flood
mitigation project property near LaPorte Avenue and Vine Drive east of Taft Hill Road.
Is this the direction the City wants to go in philosophically from the City’s Master Plan? This
policy has been in place for a number of years. Utilities will revisit the grant application process
in 2012. The City desires to have the grant match funds available if the opportunity becomes
available to purchase the properties.
What is the benefit for the city? The primary benefit is public safety; however, there are also
environmental and recreational benefits when the properties are converted to open space.
Would the Water Board revisit the issue or does the board have one chance to review the
information? Utilities Executive Director Brian Janonis stated the negotiations are not held in the
public format because of sensitivity with the negotiation process.
Board Member Gessler moved that the Water Board recommend City Council adopt
the proposed 6 percent across the board water rate increase and the 8 percent across
the board wastewater increase for 2012. Board Member Goldbach seconded the
motion.
Board Member Gessler moved that the Water Board recommend City Council adopt
the proposed changes to the 2012 plant investment fees for water, wastewater, and
stormwater. Board Member Goldbach seconded the motion.
6
Floodplain Administrator Marsha Hilmes-Robinson stated there are no capital projects mitigating
flood damages on the Poudre River. There are regulations in place to control new development
and land acquisition is just another tool for the City to use to remove the risks. With the risk,
there are damage potentials that affect the City as a whole such as debris removal and landfill
storage issues.
Chairperson Janett reminded the board there was less impact during the 1997 Spring Creek
flooding because the City bought properties and removed some of the risk.
A board member stated that it seems counter productive for the City to remove successful
businesses. Mr. Haukaas stated the properties are only purchased when the property owners are
willing to sell the property.
A board member asked for clarification on the concept of how the properties are sought for
purchase? Mr. Haukaas stated Utilities and Real Estate Services staff members handle the
negotiations on a one-on-one approach for each property.
Vote on the motion. It passed unanimously.
* Board Member Eccleston departed at 7:05 p.m.
Board Member Balderson moved that the Water Board recommend City Council approve
the Water and Stormwater Funds’ 2012 proposed exceptions to the 2011-2012 Budget.
Board Member Bovee seconded the motion.
1
Attachment 8
Excerpt from Unapproved Electric Board Minutes, October 6, 2011
2011 L&P Budget Exceptions and Rate Recommendations
(Presentation available upon request)
Utilities Financial Operations Manager Ellen Switzer presented information on this item. She
began the presentation by thanking the board members for arranging their schedule to review the
information before it is presented to Council. The residential energy rate will not be presented to
Council at this time. It will be presented later this year.
Electric Rate Increase
Staff is recommending an 8.3 percent electric rate increase. There are several components to the
rate increase. The wholesale electric rates from Platte River Power Authority (PRPA) will
increase 6.4 percent, with a 4.8 percent increase at the retail level. There will be higher seasonal
rates in June, July, and August. More costs will shift from the demand component to the energy
component. There are several key factors relating to the PRPA rate increase, including reduced
surplus sales, increased Operation and Maintenance (O&M) costs, increased financing cost and
depreciation, and reduced interest income. Reduced interest income is affecting all the Utilities
funds.
Board discussion:
Did anyone question the increase to O&M costs? Mr. Catanach stated he will have to research
the answer to this question.
Ms. Switzer stated the remaining 3.5 percent rate increase is related to internal needs for Light
and Power. Utilities is trying to slow the use of reserves for capital projects. Since 2007,
expenses have been greater than revenues.
Is there a target for reserves? Mr. Catanach stated there is a mandated minimum that Utilities
should preserve. He also stated Light &Power operational expenses for 2010-2011 have been
reduced by 9 percent. The budget structure was revamped and there was a 2.4 percent reduction
for the 2011-2012 Budget.
Is the reserve based on a percent of the revenue? Ms. Switzer stated it is based on two things.
There is an operating reserve equal to 8 percent of the operating budget less purchase power.
There is also a capital reserve. There was also a fairly large reduction in other revenues not
related to rates, including increased development fees. Also, because of lower interest rates,
interest income has been reduced.
Proposed Electric Rates
All electric rates will be seasonal. Rates will be higher during the months of June, July, and
August. The residential energy rate is not included in the ordinance. The residential demand rate
will be restricted to those customers who do not have natural gas service.
Board discussion:
A customer will have to be 100 percent electric to participate in the residential demand rate?
Currently, it is an option.
2
The General Service (GS) Rate will be split into two classes (General Service <25 kW Energy
Only and General Service >25kW Energy and Demand). General Service 50 and 750 (larger
commercial and industrial customers) will retain coincident peak pricing with seasonal
differential.
Ms. Switzer stated the rate schedules are posted on the City Clerk’s webpage at www.fcgov.com.
Ms. Switzer explained the graph for the 8.3 percent electric rate increase by customer class for
Summer, Non Summer, and Average. The average increase is 6 percent.
Board discussion:
This chart shows the percentage in rate change? Where does that leave the overall rate? Ms.
Switzer stated the actual rate schedules are on the City Clerk’s webpage with the old and new
rates listed. The rate changes are based on load factor and load characteristics.
What is a typical customer profile for GS<25? Ms. Switzer stated this is typically a small office,
such as an attorney or accountant.
What customer class do most of the restaurants belong to? Most of the restaurants are as high as
GS50.
What are the criteria for generating the differential for cost of service versus seasonal rates?
Ms. Switzer stated this is purely based on purchase power cost from PRPA.
Recommended Electric Rate Clarifications
Staff is recommending a new definition for wholesale transactions be included in the City Code.
This is subject to requirements for interconnection and is not governed by the electric rate
schedules or electric development fees. The code clarification sets the value of the energy.
Mr. Catanach stated there will be a net metering credit for net excess generation that will be
based on the summer season retail energy charge. The value is carried month to month. With the
tiered rate structure, the value is impossible to track over a 12 month period. Utilities will
purchase the power back at the lowest tiered rate for the season.
Board discussion:
Is there more incentive in the summer? The majority of the production is in the summer.
Mr. Catanach stated the parallel generation credit for energy delivered to the utility will be based
on PRPA’s avoided cost rate. The Special Services Agreement states the customer can earn the
credit for offsetting the demand. If a customer consistently generates a benefit to the system (for
example 10 kW), Utilities is willing to recognize the demand benefit. Since Utilities has to invest
in system capacity, it is important to ensure the rate reflects the true value that a generating
customer brings to Utilities.
Was there a change in the City Code to implement this? No; however, the change in the Special
Services Agreement was presented to Council.
Electric Development Fees
The Electric Development Fees are required to be adjusted by Council every other year.
Typically, they are presented to Council every year. The 2011 Electric Development Fees were
approved in 2010. The proposed changes for 2012 include a 3.0 percent increase for a typical
3
single family lot and a 0.3 percent decrease for a model commercial development. The changes
are based on the current construction estimates.
Ms. Switzer explained the graph for the 2011-2012 Electric Development Fee Comparison based
on a typical single family lot and a model commercial development.
Board discussion:
How do these rates compare with other cities? Mr. Catanach stated these rates are comparable
with other nearby cities.
Miscellaneous Fees
These changes will be presented to Council on November 15, 2011. The after-hours service
charge will increase to $85.35. It is currently at $55.45. A monthly charge for manual meter
reading for those customers who opt out of the Automated Metering Infrastructure (AMI)
program needs to be determined. Currently, it is estimated at $10-15 per month. Mr. Catanach
stated the rate should not be a punishing rate for individuals who choose to opt out of the AMI
program.
Board discussion:
How long do you expect this rate structure to continue? When is the next phase of the rate
change for the other classes? The rate form will remain the same until at least 2014.
A board member expressed concern that the timing of the rate changes along with the AMI
program implementation should be considered.
2012 Budget Revisions/Exceptions
The following changes are recommended to the original 2012 budget:
• Purchase Power: $1,724,505
• Payment in Lieu of Taxes (PILOTs): $121,969
• Energy Efficiency Financing Program: $300,000
Ms. Switzer stated the $300,000 for the Energy Efficiency Financing Program will cover loans
and fees to set-up and administer the program. Council has been asking for this program.
Board discussion:
Is this in lieu of on-bill financing? Energy Services Manager John Phelan stated there is a range
of options with the program. The requested amount would be sufficient to get the program
started as a pilot program. Utilities would like the program up and running in the first quarter of
2012.
What is the increase from last year’s budget? Last year’s budget was $50,000.
Is this an exception or a revision? Ms. Switzer stated that typically these are called exceptions;
however, a Councilmember requested they be referred to as revisions in the future.
Ms. Switzer stated there may also be a city wide exception for increasing salaries for employees
currently paid less than market value. This is a city wide recommendation. Mr. Catanach stated
the City has budgeted 2 percent for increases. $800,000 would be dedicated to market increases.
The City will also supplement this with a budget exception.
4
How far are some of the Utility employee’s salaries below market value? Mr. Catanach stated
some salaries are 15-20 percent below market value; however, some of these positions are entry
level or new hire positions. Approximately half of the Light and Power employee’s salaries are
6-7 percent below market value.
Vote on the motion: It passed unanimously.
* Chairperson Wolley abstained from the vote due to a conflict of interest as a representative of a
business.
Vote on the motion: It passed unanimously.
Discussion on the motion:
A board member recommended the line item for the Energy Efficiency Financing Program be
removed from the list of exceptions. He would like more explanation on the program.
A board member asked for clarification on the item. Is it a form of a loan program? Yes.
How did Utilities arrive at $300,000 for the program? Mr. Phelan stated this amount is enough
to establish a pilot program.
When City Council requested an increase to the budget, did they ask for a specific increase for
this item? No, Council only asked that the program be implemented.
What is the duration of the loan program? Typically, it is 5-10 years. Utilities can design the
terms of the loan.
Does Utilities have a document that describes the scope of the program? No, not currently.
A board member suggested dividing the recommended motion into two segments. Vice
Chairperson DeCourcey withdrew the original motion. Board Member Yurash requested a
friendly amendment to staff’s recommended motion.
Board Member Yurash moved that the Electric Board recommend that City Council adopt
the proposed electric rate increases for all rate classes with the exception of the Residential
Energy Rate. Board Member Graham seconded the motion.
Board Member Harris moved that the Electric Board recommend that City Council adopt
the proposed changes to the 2012 Electric Development Fees and Charges. Vice Chairperson
DeCourcey seconded the motion.
Vice Chairperson DeCourcey moved that the Electric Board recommend that City Council
approve the proposed exceptions to the Light and Power Fund’s 2011-2012 Budget. Board
Member Graham seconded the motion.
Amended Motion: Board Member Yurash moved that the Electric Board recommend that
City Council approve the recommended budget additions for Purchase Power costs,
Payments in Lieu of Taxes (PILOTs), and the creation of an exception for increasing Utility
employees’ salaries for market rate adjustments. Vice Chairperson DeCourcey seconded the
motion.
5
Vote on the motion: It passed unanimously.
Board discussion:
Is the last chance for Utilities to add this amount to the exception process? Yes, it will be voted
on by Council on October 18, 2011.
The board members agreed to not modify the recommendation concerning the Energy Efficiency
Financing Programs. A board member felt the original recommended motion concerning this
was too vague.
Attachment 9 - Utility Rates
1
1
2012 Utility Rates and Fees Ordinances
First Reading
October 18, 2011
2
7 Ordinances – Effective January 1, 2012
• Monthly Water Rates
• Monthly Wastewater Rates
• Monthly Electric Rates (excludes the Residential Energy Rate)
• Water Plant Investment Fees
• Wastewater Plant Investment Fees
• Electric Development Fees
• Stormwater Plant Investment Fees
Attachment 9 - Utility Rates
2
3
Monthly Utility Rates
Water 6.0%
Stormwater 0.0%
Electric 8.3%
Wastewater 8.0%
Average
Increase
• Water and Wastewater
– across the board to
all customers
• Electric increases vary
– by customer class
– within classes
– seasonally
4
6% Water Rate Increase
• Stabilize Water Fund revenue
• Revenues decreased 23% between 2006-2010
• Demand down 15%
• The vast majority of costs are fixed
• Variable costs (chemicals/electricity) increasing
• Fund capital projects (not Halligan)
• Slow use of reserves and maintain debt
coverage
• Also change billing for water used during
construction
Attachment 9 - Utility Rates
3
5
8% Wastewater Rate Increase
• Part of planned series of wastewater
increases to fund the debt for the Mulberry
Wastewater Treatment Facility
• Wastewater revenues are increasing less
than the adopted rate increases
• Loss of large contract customer
• Reduced water use
6
8.3% Electric Rate Increase
• Residential Energy Rate
– not changed in tonight’s ordinance
– will come back to Council November 15th with options
• Two factors in 8.3% increase
+4.8% retail impact from PRPA’s 6.4% rate increase
+3.5% needed to slow the use of L&P reserves for capital
additions
• Fort Collins Electric Rates remain among the lowest in the state
and nation.
Attachment 9 - Utility Rates
4
7
Rate Increase Varies by Customer Class & Season
2012 RATE INCREASE
16.8%
19.6%
18.1%
27.0%
20.0%
20.7%
19.2%
2.0%
15.1%
10.9%
4.7%
7.6%
4.4%
6.0%
15.9%
3.9%
15.5%
8.7%
11.0%
8.3%
-1.6%
-5%
0%
5%
10%
15%
20%
25%
30%
RESIDENTIAL
- Not included
in proposed
Ord
RESIDENTIAL
DEMAND
RATE GS<25
RATE GS>25
GS50
GS750
system
Summer Non Summer Average
8
Recommended Electric Rate Clarifications
• Wholesale transactions - add new Code section
–retail rates do not apply to purchases
• Net metering credit for net excess generation
–based on the summer season retail energy charge
• Parallel generation credit for energy delivered to utility
–based on Platte River’s avoided cost rate
• Clarification of distribution facilities demand for the
largest customers
Attachment 9 - Utility Rates
5
9
Current Estimated $ %
2011 2012 Increase Increase
Electric
700 kWh/mo $59.94 $59.94 * *
Wastewater
4,800 gal/mo WQA $28.59 $30.88 $2.29 8.0%
Stormwater
8,600 sq.ft. lot, light runoff $14.26 $14.26 $0.00 0.0%
Water
117,131 gal/yr $35.87 $38.03 $2.15 6.0%
Total Estimated Average
Monthly Utility Bill $138.66 $143.10 $4.44 3.2%
2012 Utility Rates Typical Residential Customer – Monthly Utility Bill
* The 2012 electric residential energy rate will not be implemented January 1, 2012.
A change, averaging 6% is expected to be effective February 1, 2012.
Monthly Rates Summary
10
Plant Investment Fees
• By Code, PIF/ Electric Development Fees are to be
adjusted at least biennially
• Proposed changes for 2012:
Water PIF +4.7%
Wastewater PIF -3.0%
Stormwater PIF +1.2%
Electric Development Fees:
• Residential +3.0%
• Commercial -0.3%
Attachment 9 - Utility Rates
6
11
PIFs Summary
PIF Changes for Typical Single Family
Current Proposed Change Change
2011 2012 % $
Water1 $3,826 $4,084 6.7% $258
Raw Water2 $5,203 $5,203 0.0% $0
Wastewater $3,550 $3,440 -3.1% ($110)
Stormwater3 $1,069 $1,082 1.2% $13
Electric1 $3,139 $3,233 3.0% $94
Total $16,787 $17,042 1.5% $255
1 Typical, based on lot size of 8,600 sq. ft.; 70' street frontage
2 No increase for Raw Water
3 8,600 sq. ft. lot plus estimated 6,156 sq. ft common area and right-of-way;
.5 run off coefficient
12
2011 Residential Rate Comparison
July Water Use 21,000 Gallons
$-
$50
$100
$150
$200
$250
Loveland
Longmont
Ft. Collins
Boulder
Ft. Collins '12
Denver
Greeley
Aurora
Co.Sprs
Electric Water Wastewater Stormwater
Conclusion: Total utility costs are competitive in the region.
Electric rates are among the lowest in the country.
Attachment 9 - Utility Rates
7
13
Next Steps
• November 1, 2011
– 2nd
reading of these 7 ordinances
• November 15, 2011
– 1st reading of Residential Energy Service Rate
(RESR) Ordinance with seasonal & seasonal-
tiered options
– 1st reading of Service Charges Ordinance
• December 6, 2011 City Council Agenda
– 2nd
reading of RESR & Service Fees Ordinances
• January 1, 2012 - All rates effective except RESR
• February 1, 2012 - Proposed effective date of RESR
14
Questions?
ORDINANCE NO. 138, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO REVISE WATER RATES AND CHARGES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to from time to time fix, establish, maintain and provide for the collection of such rates,
fees or charges for utility services furnished by the City as will produce revenues sufficient to pay
the costs, expenses and other obligations of the water utility, as set forth therein; and
WHEREAS, Section 26-118 of the City Code requires that the City Manager analyze the
operating and financial records of the water utility during each calendar year and recommend to the
City Council the user rate fees to be in effect for the following year; and
WHEREAS, the Water Board considered the proposed water rates, fees and charges for 2012
at its September 15, 2011 meeting and recommended approval of the proposed rate changes by a
unanimous vote; and
WHEREAS, the City Manager has recommended to the City Council that the following
water use rates be imposed for the billing year beginning January 1, 2012.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-126 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 26-126. Schedule A, flat rates for unmetered construction water use.
For residential and nonresidential premises under construction there shall be
a one-time charge equal to one and one-half (1½) times the monthly base charge as
specified for the applicable residential or nonresidential account in § 26-127.with a
planned meter size greater than 1”, no flat unmetered water service will be provided.
For residential and nonresidential premises under construction with a planned meter
size of 1-inch or less, the following flat rates will apply per month until the
permanent meter is set:
¾-inch construction service, flat charge per month $24.02
1-inch construction service, flat charge per month $45.80
Section 2. That Section 26-127 (a) and (b) of the Code of the City of Fort Collins is
hereby amended to read as follows:
1
Sec. 26-127. Schedule B, meter rates.
(a) Residential Rates.
(1) Residential customers with one (1) dwelling unit.
a. Base Charge. Residential customers with one (1) dwelling unit shall
pay a base monthly charge of twelvethirteen dollars and eight-
threesixty cents ($12.8313.60).
b. Quantity Charge. Residential customers with one (1) dwelling unit
shall pay a monthly quantity charge as follows:
For the first seven thousand (7,000) gallons used per month, a charge
of onetwo dollars and ninety-two and eight-tenthsten and five-tenths
cents ($1.9282.105) per one thousand (1,000) gallons.
For the next six thousand (6,000) gallons used per month, a charge of
two dollars and twenty-one and six tenthsforty-one and nine-tenths
cents ($2.2162.419) per one thousand (1,000) gallons.
For all additional gallons used per month, a charge of two dollars and
fifty-four and nine-tenthsseventy-eight and three-tenths cents
($2.5492.783) per one thousand (1,000) gallons.
(2) Residential customers with two (2) dwelling units.
a. Base Charge. Residential customers with two (2) dwelling units shall
pay a base monthly charge of fifteen dollars and ninety-seven cents
($15.097).
b. Quantity Charge. Residential customers with two (2) dwelling units
shall pay a monthly quantity charge as follows:
For the first nine thousand (9,000) gallons used per month, a charge
of onetwo dollars and ninety-one and three-tenthstwo and eight-
tenths cents ($1.9132.028) per one thousand (1,000) gallons.
For the next four thousand (4,000) gallons used per month, a charge
of two dollars and nineteen and nine-tenthsthirty-three and one-tenth
cents ($2.1992.331) per one thousand (1,000) gallons.
For all additional gallons used per month, a charge of two dollars and
fifty-three and zero tenthssixty-eight and two-tenths cents
($2.5302.682) per one thousand (1,000) gallons.
2
(3) Residential customers with more than two (2) dwelling units.
a. Base Charge. Residential customers with more than two (2) dwelling
units shall pay a base monthly charge of twelvethirteen dollars and
seventy-threeforty-nine cents ($12.7313.49) for the first dwelling unit
and four dollars and twenty-fourforty-nine cents ($4.244.49) for the
second and each additional dwelling unit.
b. Quantity Charge. Residential customers with more than two (2)
dwelling units shall pay a monthly quantity charge of one dollar and
eighty-four and eight-tenthsninety-five and nine-tenths cents
($1.8481.959) per one thousand (1,000) gallons used in the winter
season months of November through April. They shall pay a monthly
quantity charge of two dollars and thirty-one and zero tenthsforty-
four and nine-tenths cents ($2.3102.449) per one thousand (1,000)
gallons used in the summer season months of May through October.
The meter reading date shall generally determine the seasonal
monthly quantity charge; however, no customer shall be billed more
than six (6) full billing cycles at the summer quantity charge.
(b) Nonresidential Rates.
(1) Base charge. Nonresidential customers shall pay a base monthly
charge based on meter size as follows:
Meter Size (inches) Monthly Base Charge
¾ $ 11.4812.17
1 32.0333.95
1½ 87.1092.33
2 131.26139.14
3 200.21212.22
4 314.30333.16
6 609.72646.30
8 1,077.121,141.75
(2) Quantity charges. Nonresidential customers shall pay a monthly
quantity charge of one dollar and fifty-nine and seven-tenthssixty-
nine and three-tenths cents ($1.5971.693) per one thousand (1,000)
gallons used in the winter season months of November through April.
They shall pay a monthly quantity charge of onetwo dollars and nine
and six-tenthseleven and six-tenths cents ($1.9962.116) per one
thousand (1,000) gallons used in the summer season months of May
through October. The meter reading date shall generally determine
the seasonal monthly quantity charge; however, no customer shall be
3
billed more than six (6) full billing cycles at the summer quantity charge.
(3) Charges for excess use. Monthly water use in excess of the amounts
specified in the following table shall be billed at two dollars and
twenty-nine and five-tenthsforty-three and three-tenths cents
($2.2952.433) per one thousand (1,000) gallons used in the winter
season months of November through April. Monthly water use in
excess of the amounts specified below shall be billed at twothree
dollars and eighty-seven and zero tenthsfour and two-tenths cents
($2.8703.042) per one thousand (1,000) gallons used in the summer
season months of May through October. The meter reading date shall
generally determine the seasonal billing excess quantity charge;
however, no customer shall be billed more than six (6) full billing
cycles at the summer excess quantity charge.
Meter Size (inches) Specified Amount (gallons per month)
¾ 100,000
1 300,000
1½ 625,000
2 1,200,000
3 1,400,000
4 2,500,000
. . .
Section 3. That the amendments to the Chapter 26 of the City Code contained herein
shall go into effect for all bills issued based on meter readings on or after January 1, 2012.
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
4
Mayor
ATTEST:
_____________________________
City Clerk
5
ORDINANCE NO. 139, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO REVISE WATER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to from time to time fix, establish, maintain and provide for the collection of such rates,
fees or charges for utility services furnished by the City as will produce revenues sufficient to pay
the costs, expenses and other obligations of the water utility, as set forth therein; and
WHEREAS, Section 26-120 of the City Code provides that the rates and parameters of the
Water Plant Investment Fees be reviewed annually by the City Manager and shall be presented to
City Council for approval no less frequently than biennially; and
WHEREAS, on November 3, 2009, the City Council adopted Ordinance No. 116, 2009,
which established the plant investment fees that are now in effect; 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, City staff recommends that existing Water Plant Investment Fees be adjusted
based on the current replacement cost of the capital facilities that will be needed to serve new
development and for future growth related capital expansion; and
WHEREAS, the City Manager has recommended to the City Council the adjustments to the
Water Plant Investment Fees set forth herein, to be effective January 1, 2012; and
WHEREAS, the Water Board considered the proposed Water Plant Investment Fees for 2012
at its September 15, 2011, meeting and recommended the approval of the proposed fees by an
unanimous vote; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Section 26-
128 of the City Code to revise Water Plant Investment Fees.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-128 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 26-128. Schedule C, water plant investment fees.
The water plant investment fee prescribed in § 26-120 shall be payable by
users both inside and outside of the City, as follows:
(1) Single-family residential buildings: For the first three-fourths-inch
water tap or meter, a fee of seven hundred thirty dollars ($730.) for
a single-family residence, plus thirty-sixthirty-nine cents ($0.360.39)
for each square foot of lot area. For a single-family residential lot
greater than one-half (½) acre in size, the lot size shall be deemed to
be one-half (½) acre for the purpose of this fee calculation. For each
additional tap or meters larger than three-fourths (¾) inch, the
nonresidential rate shall apply.
(2) Residential buildings of two (2) or more dwelling units: For each
residential building unit, a fee of four hundred ninetyfive hundred ten
dollars ($490.510.), plus twenty-seven cents ($0.27) for each square
foot of lot area. The fee will provide for one (1) tap per residential
building and an adequate number of additional taps to serve common
irrigable areas, if any. The number and size of taps shall be
determined by the Utilities Executive Director based upon the criteria
established in the Uniform Plumbing Code as amended pursuant to
Chapter 5 of the Code.
(3) Mobile home parks: For each mobile home park, a fee of four
hundred ninetyfive hundred ten dollars ($490.510.) for each mobile
home space in the park, plus twenty-seven cents ($0.27) for each
square foot of lot area. The fee will provide for one (1) tap per mobile
home park. The size of the tap shall be determined by the Utilities
Executive Director based upon the criteria established in the Uniform
Plumbing Code as amended pursuant to Chapter 5 of the Code.
(4) Hotels, rooming houses, sororities, fraternities and similar uses: The
nonresidential rate shall apply.
(5) Nonresidential service:
a. Service to all nonresidential taps, including but not limited to
taps for commercial and industrial service, shall be charged
according to the size of the meter pursuant to the following
schedule:
Meter Size (inches) Nonresidential Plant Investment Fee
¾ $ 7,5307,880
1 21,73022,750
1½ 45,30047,410
2 69,07072,290
3 157,920165,290
b. The fee for all meters larger than three (3) inches shall be
negotiated withdetermined by the Executive Director and
-2-
shall be based on estimated peak day demand but shall not be
less than the charge for a three-inch meter.
Section 2. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect on January 1, 2012.
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-3-
ORDINANCE NO. 140, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO REVISE WASTEWATER 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 wastewater utility, as set forth therein; and
WHEREAS, City Code Section 26-277 requires that the City Manager analyze the operating
and financial records of the wastewater utility during each calendar year and recommend to the City
Council the user rate fees or adjustments to be in effect for the following year; and
WHEREAS, City Code Section 26-277 further requires that the user rates be revised as
necessary to assure equity of the rate system established and to assure that sufficient funds are
obtained to adequately operate and maintain the wastewater system; and
WHEREAS, the Mulberry Wastewater Reclamation Plant has undergone a upgrade of the
plant's treatment processes to prepare the plant for future regulation-based improvements and to
make odor control improvements; and
WHEREAS, such improvements are not related to growth and will require increased user
rates to generate sufficient revenues to repay the debt necessary to finance these improvements; and
WHEREAS, the Water Board considered the proposed wastewater rates, fees and changes
for 2012 at its September 22, 2011, meeting and recommended approval of the changes by
unanimous vote; and
WHEREAS, the City Manager has recommended to the City Council that the following
wastewater rates be imposed for the billing year beginning January 1, 2012.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-280 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 26-280. Service charges established by category.
The schedule of rates for each category described in § 26-279 shall be as
follows:
Category Class of Customer Rate
A Single-family residential
user (flat rate)
$31.2433.74 per month
Single-family residential
user (metered water use)
$13.9515.07 per month plus $2.7122.929 per 1,000
gallons of either winter quarter water use or 3,000
gallons, whichever is greater. For single family
customers who have not established a winter quarter
water use at the service address, a system average of
4,800 gallons per month shall be billed.
B Duplex (two-family)
residential users (flat rate)
$48.7852.68 per month
Duplex (two-family)
residential users (metered
water use)
$18.0719.52 per month plus $2.7122.929 per 1,000
gallons of either winter quarter water use or 4,000
gallons, whichever is greater. For duplex customers
who have not established a winter quarter water use at
the service address, a system average 7,200 gallons
shall be billed.
C Multi-family residential
user (more than two
dwelling units including
mobile home parks) and
winter quarter based
nonresidential user
$2.7122.929 per 1,000 gallons of winter quarter water
use, plus a base charge of $2.132.30 per month per
dwelling unit served. For multi family customers who
have not established a winter quarter water use at the
service address, a system average of 3,400 gallons per
living unit shall be billed.
D Minor nonresidential user $2.7122.929 per 1,000 gallons of water use, measured
sewage flow or winter quarter water use, whichever is
applicable, plus the following applicable base charge:
Size of water
meter (inches)
¾ or smaller
1
1½
2
3
4
6
8
Base
Charge
$7.838.46
18.0719.52
36.3739.28
62.2367.21
99.43107.38
157.03169.59
688.35743.42
794.80858.38
-2-
E and F Intermediate
nonresidential user and
Significant industrial
user
$2.7122.929 per 1,000 gallons of water use,
measured wastewater flow or winter quarter water
use, whichever is applicable; plus a surcharge of
$2.8053.029 per million gallons for each milligram
per liter of suspended solids in excess of 235
milligrams per liter; plus a surcharge of
$2.3362.523 per million gallons for each milligram
per liter of BOD in excess of 265 milligrams per
liter or a surcharge of $1.4751.593 per million
gallons for each milligram per liter of COD in
excess of 400 milligrams per liter, or a surcharge of
$4.3674.716 per million gallons for each milligram
per liter of TOC in excess of 130 milligrams per
liter, whichever is applicable. The user shall pay this
calculated amount plus the applicable base charge
set forth below:
Size of water meter
(inches)
¾ or smaller
1
1½
2
3
4
6
8
Base
charge
$7.838.46
18.0719.52
36.3739.28
62.2367.21
99.43107.38
157.03169.59
688.35743.42
794.80858.38
G User outside City limits The rate for users outside the City limits shall be the
same as for like service inside the City limits as is
specified in Categories A—F and H in this Section
H Special with agreement The rate pursuant to a special wastewater services
agreement approved by the City Council pursuant to §
26-290 shall be set forth in said agreement.
Section 2 That Section 26-281(c) of the Code of the City of Fort Collins is hereby
amended to read as follows:
(c) The amount of the wastewater strength surcharge to be billed each
user shall be calculated from one (1) of the following three (3) formulas, depending
on whether the wastewater is more amenable to testing for BOD, COD or TOC or on
the selection of the Executive Director in the absence of monitoring:
-3-
(1) Cs=Vu[Bc(B) + Sc(S)]
(2) Cs=Vu[CODc(COD) + Sc(S)]
(3) Cs=Vu[TOCc(TOC) + Sc(S)]
Where:
Cs = User's surcharge for wastewaters of excessive strength per billing
period
Vu = Volume of water used or wastewater discharged per billing period
Bc = Cost of service for treatment of a unit of BOD
B = Concentration of BOD from a user in excess of two hundred sixty-
five (200265) mg/l
Sc = Cost of service for treatment of a unit of TSS
S = Concentration of TSS from a user in excess of two hundred
fiftythirty-five (250235) mg/l
CODc = Cost of service for treatment of a unit of COD
COD = Concentration of COD from a user in excess of threefour hundred
(300400) mg/l
TOCc = Cost of service for treatment of a unit of TOC
TOC = Concentration of TOC from a user in excess of one hundred thirty
(100130) mg/l
Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-282. Wastewater strength or industrial surcharges and categories
established.
(a) The schedule of wastewater strength surcharge for customers located either
inside or outside the City limits shall be as follows:
Parameter Excess over (mg/l) Rate per 1,000 gallons
BOD 265 $0.0023360.002523
COD 400 0.0014750.001593
TOC 130 0.0043670.004716
TSS 235 0.0028050.003029
Section 4. That Section 26-289 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 26-289. Miscellaneous fees and charges.
The following is a schedule of miscellaneous fees and charges:
-4-
Description Amount
(1) Connection fees and service
charges
Fees shall be set forth as in §
26-712(b)
(2) Industrial discharge permits:
a. Administration $76.00 annually
b. Surveillance Determined for each user
annually, based on direct
cost plus 15% indirect costs,
billed monthly
(3) Laboratory support services Determined on a case-by-
case basis based on direct
cost plus 15% indirect costs
(4) Determined on a case-by-case basis
based on direct cost plus 15% indirect
costs
Cost plus 15%
(5) Charges for disposal at the Fort
Collins Regional Sanitary Waste
Transfer Station:
a. Septic tanks, vaults, privies, portable
toilets:
Generated within Larimer
County
$0.0660.071 per gallon
Generated outside Larimer
County
b. Recreational vehicle sanitary
waste holding tanks:
$0.1000.108 per gallon
Residential customers of the
City of Fort Collins Wastewater
Utility
No charge for single
individual disposal at
Transfer Station
Others $2.182.35 base fee plus
$0.0660.071 per gallon
(6) Miscellaneous fees Determined on a case-by-
case basis based on direct
costs plus 15% indirect costs
Section 5. That the amendments to the Chapter 26 of the City Code contained herein
shall go into effect for billings based upon meter readings on or after in January 1, 2012.
-5-
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-6-
ORDINANCE NO. 141, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO REVISE SEWER PLANT INVESTMENT FEES
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 wastewater utility, as set forth therein; and
WHEREAS, Section 26-277 of the City Code requires that the City Manager analyze the
operating and financial records of the wastewater utility during each calendar year and recommend
to the City Council the user rate fees or adjustments to be in effect for the following year; and
WHEREAS, Section 26-283 of the City Code provides that the City Manager review the
rates and parameters of the Sewer Plant Investment Fees annually and present them to City Council
for approval no less frequently than biennially; and
WHEREAS, on November 3, 2009, the City Council adopted Ordinance No. 117, 2009,
which established the Sewer Plant Investment fees now in effect; and
WHEREAS, it is the City Council’s intent that existing Sewer Plant Investment Fees be
adjusted based on the current replacement cost of the capital facilities that will be needed to serve
new development and for future growth related capital expansion; and
WHEREAS, the City Manager has recommended to the City Council the adjustments to the
Sewer Plant Investment Fees set forth herein, to be effective January 1, 2012; and
WHEREAS, the Water Board considered the proposed Wastewater Plant Investment Fees
for 2012 at its September 15, 2011, meeting and recommended the approval of the proposed fees
by an unanimous vote; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to revise Sewer Plant Investment Fees.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-284(a) and (d) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-284. Sewer plant investment fees and surcharges established.
(a) The schedule of sewer plant investment fees, subject to the exceptions and
additional requirements provided in this Section, is as follows:
Category SPIF
A $ 3,550.3,440.
B and C $2,490.2,410. for each dwelling unit or mobile home
space
Category
Water meter
size (inches) Fee
D, E, F ¾ $7,1006,880
1 17,88017,300
1½ 31,49030,480
2 55,29053,520
3 150,130145,310
4 and above Calculated on an individual basis based on peak wastewater
flow (determined in the manner set forth hereinafter) but not less
than the charge for a three-inch meter
G Same as equivalent category, plus any
special sanitation district fees.
H Determined pursuant to paragraph (d)
of this Section.
. . .
(d) The amount of the plant investment fee and surcharge for each nonresidential
surcharged user, users in Category H and any user that is expected to generate
greater than its proportionate share of peak day flow at the treatment plant for the
applicable category (including both contributed wastewater volume and volume
related to infiltration and inflow), shall be calculated utilizing the following formula:
SPIF = Site Flow x [Flow$ + (BOD x BOD$) + (TSS x TSS$)] + I&I Flow x [Flow$
+ (200 mg/l x BOD$) + (250 mg/l x TSS$)]
Where:
SPIF = Plant investment fee for Category H users and users
discharging wastewater with average concentrations of BOD
and/or TSS which exceed those average concentrations
which are set forth in § 26-282(b) under Category E-34
Site Flow = The user's proportionate share of peak day flow at the
treatment plant based on
site flow discharge from user's site
-2-
I&I Flow = That proportionate share of peak day flow due to infiltration
and inflow as
allocated to user's site flow discharge
Flow$ = $6.346.10 per gallon (unit cost of facilities attributable to
treating wastewater flow)
BOD = Average BOD concentration for user category or measured
BOD concentration for the user as determined in accordance
with Subsection (c) of this Section, but not less than 200
mg/l
BOD$ = $0.01380.0134 per mg/l (unit cost of facilities attributable to
treating BOD)
TSS = Average TSS concentration for user category or measured
TSS concentration for the user as determined in accordance
with Subsection (c) of this Section, but not less than 250
mg/l
TSS$ = $0.01100.0107 per mg/l (unit cost of facilities attributable to
treating TSS)
. . .
Section 2. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect on January 1, 2012.
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-3-
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-4-
ORDINANCE NO. 142, 2011
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 (“Platte River”) costs are increasing due to
reduced surplus sales, increased operating costs for aging plants and environmental mitigation,
increased financing costs, and continuing capital investment; and
WHEREAS, Platte River will increase the City’s wholesale cost of power approximately
6.4% in 2012; and
WHEREAS, the increased wholesale power costs will require a 4.8% increase in the City’s
electric rates; and
WHEREAS, the revenues in the Light and Power Fund have not been sufficient to fund
capital projects and system replacements and reserves have been utilized to make up for the short
fall; and
WHEREAS, the reduction in reserves was accelerated due to reductions in interest revenue
and development fee revenue; and
WHEREAS, without additional rate increases, reserves are projected to fall below minimum
policy levels as early as 2013; and
WHEREAS, a 3.5% rate increase will begin to fund the necessary capital improvements and
system replacements and will also begin to stem the decline in reserves; and
WHEREAS, City Council desires to enact rate structures to encourage additional energy
conservation measures in order to meet Energy Policy and Climate Action Plan goals; and
WHEREAS, in order to further encourage energy conservation, the recommended
adjustments to the electric rates include an amendment to the residential demand service rate
schedule limiting participation to those customers who establish to the satisfaction of the Utility that
their residences are heated entirely by electric energy; and
WHEREAS, City Council has requested an additional work session to review and study the
rate form options for the residential energy service rate class and will defer making a decision
related to changes for the 2012 residential energy service rate until that review is completed later
in 2011 or early 2012; and
WHEREAS, the City Manager and staff have recommended to City Council the following
adjustments to the existing residential demand, general service, general service 50, general service
750 and traffic signal electric rates for all billings issued with meter readings on or after January 1,
2012; and
WHEREAS, the City Manager and staff have recommended to City Council the creation of
a new rate class, general service 25; 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 26-391 of the Code of the City of Fort Collins is hereby amended
by the addition of a new definition “Wholesale energy” which reads in its entirety as follows:
Wholesale energy, as used in this Article, shall mean that energy sold to the City or
to Platte River Power Authority by negotiated contract to be sold by the City or
Platte River Power Authority to others.
Section 2. That Sections 26-446 and 26-447 of the Code of the City of Fort Collins shall
be renumbered as Sections 26-447 and 26-448 respectively.
Section 3. That the Code of the City of Fort Collins is hereby amended by the addition
of a new Section 26-447 which reads in its entirety as follows:
Sec. 26-446. Wholesale transactions.
The sale of wholesale energy, as defined in this Article, shall be subject to
requirements for interconnection to the City’s electric system and requirements for
sales to the City, if applicable, will not be governed by the electric rate schedules or
electric development fees and charges set out in this Article.
Section 4. That Section 26-465(a), (c), (k) and (q) of the Code of the City of Fort Collins
are hereby amended to read as follows:
(a) Availability. The residential demand service rate, schedule RD, shall be
available within the corporate limits of the City and the suburban fringe. Service
under this rate class is available only to customers who establish to the satisfaction
of the utility, by providing to the utility such documentation as the utility may deem
appropriate, that the residence served is heated entirely by electric energy. Such
documentation must be submitted by April 1, 2012. At such time that the utility
implements a time-of-use rate, this rate schedule will no longer be available.
-2-
. . .
(c) Monthly rate. The monthly rates are as follows:
(1) Ffixed charge, per account: Six dollars and thirty-twoseven dollars
and twenty-four cents ($6.237.24).
(2) Ddemand charge, per kilowatt: Three dollars and eighty-seventwo
dollars and forty-three cents ($3.872.43).
(3) Ddistribution facilities charge, per kilowatt-hour: Onetwo and eighty-
eight one-hundredths cents ($0.018800.0288).
(4) Eenergy charge, per kilowatt-hour: Two and forty-eight one-
hundredths cents ($0.0248).
a. during the summer season billing months of June, July and
August: three and seventy-two one-hundredths cents
($0.0372).
b. during the non-summer season billing months of January
through May and September through December: three and
fifty-five one-hundredths cents ($0.0355).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
(5) Iin lieu of taxes and franchise: A charge at the rate of six and zero-
tenths (6.0) percent of monthly service charges billed pursuant to this
Section.
. . .
(k) Parallel generation. Customers may operate all or part of their instantaneous
energy or capacity needs by operation of a qualifying facility in parallel with the
utility system, provided that electric service is being rendered under the special
services provisions of this schedule, and provided further that such facility is
constructed, operated and maintained in accordance with the provisions of the
electric service rules and regulations. The credit for the energy delivered to the
electric utility under this provision shall be provided at applicable Platte River Power
Authority avoided cost rates. If a customer is receiving net metering service, such
customer's service shall also be governed by the net metering service terms and
conditions described in Subsection (q) below, and the credit for energy delivered to
the electric utility shall be calculated as described in that Subsection.
. . .
-3-
(q) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility shall be
measured on a monthly basis and, in the event that the qualifying facility has
produced more electricity than the customer-generator has consumed, the
customer-generator shall receive a monthly credit for such production.
During the second calendar quarter of each year, the customer-generator shall
receive payment for the net excess generation accrued for the preceding
twelve (12) months. The credit per kilowatt hour for the energy delivered to
the electric utility under this provision shall be provided at the summer
season energy charge as specified in Subsection (c).
Section 5. That Section 26-466(b), (c), (m) and (r) of the Code of the City of Fort Collins
is hereby amended to read as follows:
Sec. 26-466. General service, schedule GS.
. . .
(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, 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 energy-only meter and
for demand metered services with an average metered demand of not greater than
fifty (50)twenty-five (25) kilowatts.
(c) Monthly rate. The monthly rates for this schedule are as follows:
(1) Ffixed charge, per account:
a. Ssingle-phase, two-hundred-ampere service: three dollars and
twenty-onesixty-eight cents ($3.213.68).
b. Ssingle-phase, above two-hundred-ampere service: Nine
dollars and forty-sixten dollars and eighty-three cents
($9.4610.83).
c. Tthree-phase, two-hundred-ampere service: Four dollars and
eight-eightfive dollars and fifty-nine cents ($4.885.59).
-4-
d. Tthree-phase, above two-hundred-ampere service: Eleven
dollars and fifty-sixthirteen dollars and twenty-four cents
($11.5613.24).
(2) Ddemand charge, per kilowatt-hour:
a. First two thousand (2,000) kilowatt-hours: Three and sixty-
two one-hundredths cents ($0.0362).during the summer
season billing months of June, July and August: two and
sixty-seven one-hundredths cents ($0.0267).
b. Next five thousand (5,000) kilowatt-hours: One and seventy-
eight one-hundredths cents ($0.0178).during the non-summer
season billing months of January through May and September
through December: one and thirty-nine one-hundredths cents
($0.0139).
c. All additional kilowatt-hours: Zero ($0.00).the meter reading
date shall generally determine the summer season billing
months; however, no customer shall be billed more than three
(3) full billing cycles at the summer rate.
(3) Demand charge, per kilowatt:
a. All kilowatts billed in excess of twenty-five (25) kilowatts:
Six dollars and fifty-seven cents ($6.57).
(43)Ddistribution facilities charge, per kilowatt-hour: Oone and fifty-
eighteighty-one one-hundredths cents ($0.01580.0181).
(54)Eenergy charge, per kilowatt-hour: Two and forty-eight one-
hundredths cents ($0.0248).
a. during the summer season billing months of June, July and
August: three and seventy-two one-hundredths cents
($0.0372).
b. during the non-summer season billing months of January
through May and September through December: three and
fifty-five one-hundredths cents ($0.0355).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
-5-
(65)Iin 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.
. . .
(m) 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. The credit for the energy delivered to the
electric utility under this provision shall be provided at applicable Platte River Power
Authority avoided cost rates. If a customer is receiving net metering service, such
customer's service shall also be governed by the net metering service terms and
conditions described in Subsection (r) below, and the credit for energy delivered to
the electric utility shall be calculated as described in that Subsection.
. . .
(r) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility
shall be measured on a monthly basis and, in the event that the
qualifying facility has produced more electricity than the customer-
generator has consumed, the customer-generator shall receive a
monthly credit for such production. During the second calendar
quarter of each year, the customer-generator shall receive payment
for the net excess generation accrued for the preceding twelve (12)
months. The credit per kilowatt hour for the energy delivered to the
electric utility under this provision shall be provided at the summer
season energy charge as specified in Subsection (c).
Section 6. That Section 26-466 (f) of the Code of the City of Fort Collins is hereby
deleted and the remaining sections 26-466 (g) through 26-466 (r) are renumbered 26-466 (f) through
26-466 (q) respectively.
(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:
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(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 7. That currently numbered Sections 26-467 through 26-473 are renumbered as
Sections 26-468 through 26-474 respectively and that an entirely new Section 26-467 General
service 25, schedule GS25, is hereby inserted to read as follows:
Sec. 26-467. General service 25, schedule GS25.
(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, 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 less than (25)
kilowatts or 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: three dollars and
sixty-eight cents ($3.68).
b. single-phase, above two-hundred-ampere service: ten dollars
and eighty-three cents ($10.83).
c. three-phase, two-hundred-ampere service: five dollars and
fifty-nine cents ($5.59).
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d. three-phase, above two-hundred-ampere service: thirteen
dollars and twenty-four cents ($13.24).
(2) demand charge, per kilowatt:
a. during the summer season billing months of June, July and
August: seven dollars and seven cents ($7.07).
b. during the non-summer season billing months of January
through May and September through December: four dollars
and thirty- six cents ($4.36).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
(3) distribution facilities charge, per kilowatt-hour: one and eighty-one
one-hundredths cents ($0.0181).
(4) energy charge, per kilowatt-hour:
a. during the summer season billing months of June, July and
August: three and seventy-two one-hundredths cents
($0.0372).
b. during the non-summer season billing months of January
through May and September through December: three and
fifty-five one-hundredths cents ($0.0355).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
(5) in lieu of taxes and franchise: a charge at the rate of six and zero-
tenths (6.0) percent of all monthly service charges billed pursuant to
this Section.
(d) Renewable resource. Renewable energy resources, including but not limited
to energy generated by the power of wind, may be offered on a voluntary basis to
customers at a premium of one and nine-tenths cents ($.019) 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.
-8-
(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 four dollars and
twenty-seven cents ($4.27) 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 twelve dollars and eighty-one
cents ($12.81) 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
Utilities Executive Director.
(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.
(j) 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
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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 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.
(l) 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 Utilities Executive Director 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 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. The credit for the energy delivered to the
electric utility under this provision shall be provided at applicable Platte River Power
Authority avoided cost rates. If a customer is receiving net metering service, such
customer's service shall also be governed by the net metering service terms and
conditions described in Subsection (r) below, and the credit for energy delivered to
the electric utility shall be calculated as described in the Subsection.
(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
-10-
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.
(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.
(r) Net metering.
(1) Net metering service is available to a customer-generator producing
electric energy exclusively with a qualifying facility when the
generating capacity of the customer-generator's qualifying facility
meets the following two (2) criteria:
a. the qualifying facility is sized to supply no more than one
hundred twenty (120) percent of the customer-generator's
average annual electricity consumption at that site, including
all contiguous property owned or leased by the customer-
generator, without regard to interruptions in contiguity caused
by easements, public thoroughfares, transportation rights-of-
way or utility rights-of-way; and
b. the rated capacity of the qualifying facility does not exceed
the customer-generator's service entrance capacity.
(2) The energy generated by an on-site qualifying facility and delivered
to the utility's electric distribution facility shall be used to offset
energy provided by the utility to the customer-generator during the
applicable billing period.
(3) The customer-generator and electric service arrangements shall be
subject to the requirements and conditions described in the City of
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Fort Collins Utility Services Interconnection Standards for
Generating Facilities Connected to the Fort Collins Distribution
System.
(4) A customer-generator who receives approval from the electric utility
to obtain net metering service shall be subject to the monthly rates
described above in this rate schedule section.
(5) The customer-generator's consumption of energy from the utility
shall be measured on a monthly basis and, in the event that the
qualifying facility has produced more electricity than the customer-
generator has consumed, the customer-generator shall receive a
monthly credit for such production. During the second calendar
quarter of each year, the customer-generator shall receive payment
for the net excess generation accrued for the preceding twelve (12)
months. The credit per kilowatt hour for the energy delivered to the
electric utility under this provision shall be provided at the summer
season energy charge as specified in Subsection (c).
Section 8. That renumbered Sections 26-468(c), (f), (g), (k), (p) and (u) of the Code of
the City of Fort Collins are hereby amended to read as follows:
Sec. 26-467468. General service 50, schedule GS50.
. . .
(c) Monthly rate. The monthly rates for this schedule are as follows:
(1) Ffixed charge, per account: Eighteen dollars and thirty-sixtwenty-one
dollars and two cents ($18.2621.02). An additional charge of forty
dollars and zero cents ($40.) may be assessed if telephone
communication service is not provided by the customer.
(2) Ccoincident demand charge, per kilowatt: Twelve dollars and eighty
center ($12.80) but not less than one cent ($.01) per kolowatt hour.
a. during the summer season billing months of June, July and
August: ten dollars and thirty-six cents ($10.36).
b. during the non-summer season billing months of January
through May and September through December: seven dollars
and seventy-six cents ($7.76).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
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(3) Ddistribution facilities demand charge, per kilowatt: Four dollars and
eighty-twofive dollars and fifty-two cents ($4.825.52).
(4) Eenergy charge, per kilowatt-hour: Two and forty-eight one-
hundredths cents ($0.0248).
a. during the summer season billing months of June, July and
August: three and seventy-two one-hundredths cents
($0.0372).
b. during the non-summer season billing months of January
through May and September through December: three and
fifty-five one-hundredths cents ($0.0355).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
(5) Iin 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) Sstandby distribution charge.
a. Tthe monthly standby distribution charge shall be three
dollars and ninety-onefour dollars and forty-eight cents
($3.914.48) 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-threethirteen dollars and forty-four cents
($11.7313.44) per kilowatt.
b. Iin 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
-13-
to a waiting period. An operation and maintenance charge
may be added for special facilities required to provide
standby service.
(2) Sstandby 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) 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) Tthe excess circuit charge shall be eighty-threeninety-five cents
($0.830.95) per contracted kilowatt of backup capacity per month.
For any metered kilowatts in excess of the contracted amount, the
excess circuit charge shall be two dollars and forty-nineeighty-five
cents ($2.492.85) per kilowatt.
(2) Iin 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.
. . .
(k) Distribution facilities demand. The distribution facility demand charge used
by the utility is designed to recover the costs of operating and maintaining the
electric distribution system and it is based on a per unit rate tied to the peak demand
(kW) of a customer’s monthly electric use. Under the utility’s billing system, cost
recovery is based on a twelve month model. Monthly billing is one-twelfth (1/12)
of the annual cost recovery required for given service and the twelve-month use
patterns serve as the reference base for monthly billings.
(1) 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.
(2) If the Utilities Executive Director determines the calculation
described in (1) above does not recover the customer’s share of the
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actual distribution facilities costs, the customer’s distribution
facilities demand charge may be determined according to a billing
calendar designed to fully recover said customer’s share of the
distribution facilities costs.
. . .
(p) 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. The credit for the energy delivered to the
electric utility under this provision shall be provided at applicable Platte River Power
Authority avoided cost rates. Parallel generation will be provided consistent with all
of the requirements contained in Platte River Power Authority's Tariff Schedule 3:
Parallel Generation Purchases, as may be amended from time to time. All charges
incurred by the utility under this tariff will be billed to the customer. If a customer
is receiving net metering service, such customer's service shall also be governed by
the net metering service terms and conditions described in Subsection (q) below, and
the credit for energy delivered to the electric utility shall be calculated as described
in that Subsection.
(u) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility
shall be measured on a monthly basis and, in the event that the
qualifying facility has produced more electricity than the customer-
generator has consumed, the customer-generator shall receive a
monthly credit for such production. During the second calendar
quarter of each year, the customer-generator shall receive payment
for the net excess generation accrued for the preceding twelve (12)
months. The credit per kilowatt hour for the energy delivered to the
electric utility under this provision shall be provided at the summer
season energy charge as specified in Subsection (c).
Section 9. That renumbered Sections 26-469(c), (f), (g), (k), (q) and (v) of the Code of
the City of Fort Collins are hereby amended to read as follows:
Sec. 26-468469. General service 750, schedule GS750.
. . .
(c) Monthly rate. The monthly rates for this schedule are as follows:
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(1) Ffixed charge, per account: Fifty four dollars and elevensixty-one
dollars and ninety-six cents ($54.1161.96).
a. Aadditional charge for each additional metering point: Forty
seven dollars and eighty-onefifty-four dollars and seventy-
four cents ($47.8154.74).
b. Aan 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) Ccoincident demand charge, per kilowatt: Twelve dollars and sixty-
one cents ($12.61) but not less than one cent ($0.01) per kilowatt
hour.
a. during the summer season billing months of June, July and
August: ten dollars and twenty cents ($10.20).
b. during the non-summer season billing months of January
through May and September through December: seven dollars
and sixty-four cents ($7.64).
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
(3) Ddistribution facilities demand charge, per kilowatt:
a. Ffirst seven hundred fifty (750) kilowatts: Four dollars and
seventy-fivefive dollars and forty-four cents ($4.755.44).
b. Aall additional kilowatts: Two dollars and eighty-fourthree
dollars and twenty-five cents ($2.843.25).
(4) Eenergy charge, per kilowatt-hour: Two and forty-five one-
hundredths cents ($0.0245).
a. during the summer season billing months of June, July and
August: three and sixty-seven one-hundredths cents
($0.0367).
b. during the non-summer season billing months of January
through May and September through December: three and
forty-nine one-hundredths cents ($0.0349).
-16-
c. the meter reading date shall generally determine the summer
season billing months; however, no customer shall be billed
more than three (3) full billing cycles at the summer rate.
(5) Iin 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) Sstandby distribution charge.
a. Tthe monthly standby distribution charge shall be two dollars
and ninety-seven three dollars and forty cents ($2.973.40) 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-oneten
dollars and twenty cents ($8.9110.20) per kilowatt.
b. Iin 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) Sstandby 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:
-17-
(1) Tthe excess circuit charge shall be sixty-threeseventy-two cents
($0.630.72) 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-ninetwo dollars
and seventeen cents ($1.892.17) per kilowatt.
(2) Iin 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.
. . .
(k) Distribution facilities demand. The distribution facilities demand charge used
by the utility is designed to recover the costs of operating and maintaining the
electric distribution system and it is based on a per unit rate tied to the peak demand
(kW) of a customer’s monthly electric use. Under the utility’s billing system, cost
recovery is based on a twelve month model. Monthly billing is one-twelfth (1/12)
of the annual cost recovery required for given service and the twelve month use
patterns serve as the reference base for monthly billings.
(1) 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.
(2) If the Utilities Executive Director determines the calculation
described in (1) above does not recover the customer’s share of the
actual distribution facilities costs, the customer’s distribution
facilities demand charge may be determined according to a billing
calendar designed to fully recover the customer’s share of the
distribution facilities costs.
(q) 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. The credit for the energy delivered to the
electric utility under this provision shall be provided at applicable Platte River Power
Authority avoided cost rates. Parallel generation will be provided consistent with all
of the requirements contained in Platte River Power Authority's Tariff Schedule 3:
Parallel Generation Purchases, as may be amended from time to time. All charges
incurred by the utility under this tariff will be billed to the customer. If a customer
-18-
is receiving net metering service, such customer's service shall also be governed by
the net metering service terms and conditions described in Subsection (q) below, and
the credit for energy delivered to the electric utility shall be calculated as described
in that Subsection.
. . .
(v) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility
shall be measured on a monthly basis and, in the event that the
qualifying facility has produced more electricity than the customer-
generator has consumed, the customer-generator shall receive a
monthly credit for such production. During the second calendar
quarter of each year, the customer-generator shall receive payment
for the net excess generation accrued for the preceding twelve (12)
months. The credit per kilowatt hour for the energy delivered to the
electric utility under this provision shall be provided at the summer
season energy charge as specified in Subsection (c).
Section 10. That renumbered Section 26-471 (c) of the Code of the City of Fort Collins
is hereby amended to read as follows:
Sec. 26-470471. 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) Ffixed charge, per account: Sixty-three dollars and ninetyseventy-
three dollars and sixteen cents ($63.9073.16).
(2) Ccharge, per kilowatt-hour: Five and fifty-fivesix and eighteen one-
hundredths cents ($0.05550.0618).
(3) Sservice 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 11. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect for all bills issued based on meter readings on or after January 1, 2012.
-19-
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-20-
ORDINANCE NO. 143, 2011
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 the City Manager and staff to annually
consider the parameters and rates related to setting electric development fees and charges; and
WHEREAS, Section 26-471 of the City Code requires that the electric development fees be
presented to the City Council for approval no less frequently than biennially; and
WHEREAS, on November 16, 2010 the City Council adopted Ordinance No. 115, 2010,
which established the electric development fees now in effect; and
WHEREAS, the City Manager and staff have recommended to the City Council the
following adjustments to the electric development fees and charges for all invoices paid on or after
January 1, 2012; 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 development fees and charges.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-471 the Code of the City of Fort Collins is hereby amended
by the addition of a new subsection (e) which reads in its entirety as follows:
(e) This Section does not apply to wholesale energy transactions, as defined in
this Article. Any applicable fees and charges will be addressed in a written services
agreement subject to approval by City Council in accordance with Section 6 of
Article XII of the Charter, if applicable.
Section 2. 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) Tthe site footage charge shall be the combined total of:
a. Ffour and nine hundred fifty-four thousandths cents
($0.049540.04950) per square foot of developed site square footage,
including all applicable tracts but excluding the area dedicated public
rights-of-way; and
b. Eightten dollars and seventy-eight cents ($8.7810.08) per lineal foot
of the developed site abutting a dedicated street or roadway.
(2) Tthe dwelling unit charge shall be as follows:
a. Ffor a single-family panel size with one-hundred-fifty-amp service
(nonelectric heat), one thousand two hundred eighty-fiveeighty-one
dollars ($1,285.1,281.) per dwelling unit;
b. Ffor a single-family panel size with two-hundred-amp service or with
one-hundred-fifty-amp service (electric heat), two thousand one
hundred seventy-sixsixty-five dollars ($2,176.2,165.) per dwelling
unit;
c. Ffor a multi-family panel size with one-hundred-fifty-amp service
(nonelectric heat), eight hundred fifty-sixfifty-four dollars
($856.854.) per dwelling unit;
d. Ffor a multi-family panel size with two-hundred-amp service or with
one-hundred-fifty-amp service (electric heat), one thousand five
hundred twenty-sixnineteen dollars ($1,526.1,519.) per dwelling unit.
(3) Aa 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:
-2-
(1) Tthe secondary service charge shall be as follows:
Secondary
Service Size
Charge
(up to 65 feet)
Plus Per Foot
Charge For Each
Foot Over 65
1/0 service $639.00642.00 $4.664.65/Foot
4/0 service $813.00821.00 $5.835.82/Foot
350 kCM Service $830.00818.00 $6.566.54/Foot
1/0 Mobile Home
Service $499.00503.00 N/A
4/0 Mobile Home
Service $638.00646.00 N/A
(2) Aactual 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 3. 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) Tthe site footage charge shall be the combined total of:
a. Ffour and nine hundred fifty-four thousandths cents
($0.049540.04950) per square foot of developed site square footage,
including all applicable tracts but excluding the area of dedicated
public rights-of-way; and
b. Tthirty-eight dollars and zerothirty cents ($38.0038.30) per lineal foot
of the developed site abutting a dedicated street or roadway.
(2) Tthe kVA service charge shall be determined as follows:
a. Ffor customer electric loads served by the utility the kVA service
charge shall be:
i. Uutility owned transformers: Tthe kVA service charge shall
be fifty-nine dollars and sixfour cents ($59.0659.04) per
kilovolt-amp (kVA) of service load rating.
-3-
ii. Ccustomer owned transformers: Tthe kVA service charge
shall be forty-eight dollars and sixty-one fifty-nine cents
($48.6148.59) per kilovolt-amp (kVA) of service load rating.
b. Ffor 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. Uutility owned transformers: Tthe kVA service charge shall
be forty-eight dollars and sixty-four fifty-nine cents
($48.6448.59) 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 Utilities Executive Director.
ii. Ccustomer owned transformers: Tthe kVA service charge
shall be thirty-eight dollars and nineteennine cents
($38.1938.09) 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 Utilities Executive Director.
(3) Aa 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
circuit charge, transformer installation charge and any additional charges, determined
as follows:
(1) Tthe primary circuit charge for service from the utility source to the
transformer shall be as follows:
a. Ffor single-phase service, a charge of eightnine dollars and seventy-
sixfifteen cents ($8.769.15) per foot of primary circuit;
b. Ffor three-phase service, a charge of eighteen dollars and forty-
threezero cents ($18.4318.00) per foot of primary circuit.
(2) Tthe transformer installation charge shall be as follows:
-4-
a. Ffor single-phase service, a charge of one thousand three hundred
eighteentwo hundred seventy-eight dollars ( $1,318.1,278.) per
transformer;
b. Ffor three-phase service, a charge of two thousand four hundred
twenty-onethree hundred eighty-five dollars ( $2,421.2,385.) per
transformer.
(3) Aactual 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 4. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect as of January 1, 2012.
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
-5-
ORDINANCE NO. 144, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF
THE CODE OF THE CITY OF FORT COLLINS
TO REVISE STORMWATER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to by ordinance from time to time fix, establish, maintain and provide for the collection
of such rates, fees or charges for utility services furnished by the City as will produce revenues
sufficient to pay the costs, expenses and other obligations of the storm water utility, as set forth
therein; and
WHEREAS, Section 26-511(a) of the City Code requires that the City Manager review the
rates and parameters of the Stormwater Plant Investment Fees annually and present them to City
Council for approval no less frequently than biennially; and
WHEREAS, on November 3, 2009, the City Council adopted Ordinance No. 119, 2009,
which established the Stormwater Plant Investment Fees now in effect; and
WHEREAS, the Council has adopted stormwater basin master plans recommending
stormwater facilities that are necessary to provide for the proper drainage and control of flood and
surface waters within the City; and
WHEREAS, existing stormwater rate payers have paid for the design, right-of-way and
construction of stormwater facilities identified in the drainage basin master plans that will benefit
and be utilized by new development; and
WHEREAS, the City Council has determined that new development should pay its
proportionate share of the costs of the stormwater infrastructure as it exists at the time of
development; and
WHEREAS, the City Manager has recommended to the City Council the revised Stormwater
Plant Investment Fees set forth herein, to be effective January 1, 2012; and
WHEREAS, the Water Board considered the proposed Stormwater Plant Investment Fees
for 2012 at its September 15, 2011, meeting and recommended the approval of the proposed fees
by an unanimous vote; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to revise Stormwater Plant Investment Fees.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-512(2) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-512. Stormwater plant investment fees established.
. . .
(2) Plant investment fee base rate. The stormwater plant investment fee base rate
is six thousand three hundred thirteenninety dollars ($6,3136,390.) per gross
acre of area.
. . .
Section 2. That the amendment to Chapter 26 of the City Code contained herein shall
go into effect January 1, 2012.
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
the
City Council
Finance Committee
on
Sept.
26,
2011.
Public
notification
will
begin
October
2
and
Electric
Rate
Ordinances
will be
considered
by
City
Council
at
first reading
Oct.
18,
2011.
Second reading
isNov.
1,2011.
Next
Steps
September
26
-
Council
Finance Committee
related
to
all
utilities
rates
and
fees
October
11
-
Work session
on
Residential
Energy
Rate
October
18
-
I
reading
of
Electric
Rates
(without changes
to
Residential Energy
Rate);
also 1’
reading
of
ordinances for
water
and
wastewater
rates and
PIFs/development
fees
October
25
-
Work session
on
Energy Conservation
Programs
November
1
-
2
reading
of
Rates
and
Fees
Jan.
1,
2012
-
all
rates
effective except for Residential Energy
Rate
Late
2011
or
early
2012
-
1
5t reading
of
ordinance changing Residential
Energy
Rate
to
be
effective
shortly
thereafter.
seasonal
adjustment.
Questions for
City
Council included:
Residential Rate
Options
1.
Of
the
four
proposed rate
options
for
the
residential
energy
rate, which specific option
is
preferred?
2.
Does City
Council
support
the
proposed
change
to
the
residential
demand rate?
Commercial Rate
Options
I.
Does
City
Council
support
the
proposed
change
that
would
create
an
additional
rate
class
from the
existing General
Service
rate class?
Questions
from
Councilmembers
primarily
focused
on
aspects
of
the
residential
energy
rate,
its
merits
in
addressing
carbon
reduction
and
energy
efficiency
goals,
and
its
impacts
on
customers
as
well
as
the
perceived
value
or
lack
of
value
to
the
system
(generation,
transmission
and
distribution). Other
questions
focused
on
the
impacts
to
customers
related
to
size
of
households
and
square
footage
of
homes,
number
and
type
of
appliances,
and
electricity
use
associated
with
lifestyle
(home
office or
other differences).
City
Council
requested additional information:
1.
Assumptions
related
to
elasticity
(in
plain
English)
—
what
kind
of
impact
can be
expected? What
is
the
corresponding
carbon
reduction?
2.
Are
the
options
designed
to
be
revenue neutral?
If
demand
and
energy
are
reduced,
the
purchase
power requirements
will
also
be
reduced
lowering
overall revenue
requirements.
3.
Provide
more
context
on
system
impacts. How might
the
tiered
rates
affect
shifts
in
demand
which
may
have
a
negative
impact
on
the
overall load?
4.
Provide
more
data
on
the
monthly variation
in
bill
impacts,
including
the
typical
variation
in
monthly
use.
5.
Provide
sample
(8
to
10)
scenarios
of
year-round
use and
the
price
impacts
of
the
options.
Examples:
Large
users with
no
air
conditioning
(AC), large
users
with
AC,
small users
with
AC,
small
users
without
AC,
etc.
Changes
to
the
Residential Demand
Rate
and
the
Commercial General Service
Rate were
discussed
and
generally seemed
acceptable.
Councilmembers
had
a
number
of
unresolved
questions regarding
the
Residential Energy Rate
and
requested
a
follow-up
Work
Session,
now
scheduled
for
Oct
1
1,
2011.
Councilmembers
recognized
that
the
schedule
for
implementation
were
present.
Utilities
Executive
Director
Brian
Janonis
provided
introductions
and noted
that
the
consideration
of
a
change
to
the
electric
rate
form
is
unprecedented
in
the
history
of
the
Light and
Power
Utility.
Presentations
were provided
by
Patty
Bigner
and
SAIC
consultant Joe
Mancinelli. Staff answering
questions included
Bill
Switzer,
Steve
Catanachm
and
Patty
Bigner.
SAIC
consultant
Joe
Mancinelli
provided
a
brief presentation
on
industry
trends and
response
to
those trends
by
utilities
across
the
country,
with
specific
information
on
electric
rates,
customer
assistance,
time
of
use
rates,
and
special
programs
for electric
vehicles.
The
residential energy
rate
options proposed
for
Council
discussion
included:
•
Single
Tier
(current
rate
structure)
• Seasonal (Platte
River Power
Authority
[PRPA]
pass-through)
•
Three
Tier
•
Five Tier
Staff
also
proposed phasing
out
the Residential
Demand
Rate
and
suggested limiting
the
rate
to
residential
customers
who could
provide
documentation
of
total
electric
residence
(no
natural
gas).
One
change
to
the
rate
form
is
proposed
for
the
commercial
rate
classes.
As
noted
in
the
Agenda
Item
Summary,
the
proposed change
to the
General
Service
(GS)
or
commercial
rate
class would
more
accurately
reflect electric
use
of
this
diverse group
of
customers.
This
change
would
create
a
fourth
commercial
rate class
to
include
the
lower
end
of
the
mid-sized
commercial customers
by
splitting
the
GS
customer
class
into
two
customer
classes,
GS
and
GS
25.
$
1 26,025,803
3,514
0.55
$ 12,740,424
$ 42
$
S 6,313 $ 6,390
11.2%
1.2%
1,069
32,628
$
$ 1,082 $
35,860 3,232 9,9%
in
use
from
the
four
year
history
two
years
previous. The
history
used
for
wastewater
calculations
is
for
the
6
winter
months
(November
through
April).
This
continued
trend
appears
unstable
and,
as
a
result,
the
estimated
usages
will
remain
the
same as
used
in
the
prior
PIE
study
until
a
more
stable
trend
or
methodology
is
developed.
The
following
table
shows
the
resulting
fee
impact
of
the
new
$/gpd
as
applied
to
the
estimated
gpds
for
the
customer
classes:
Wastewater
Plant
Investment
Fee
analysis
and update
Current
Proposed
2012
Volume
Proposed
Fee
Customer
Class
05-’08
data
PIF
Change
gpd
$ $
%
Single family
Res
300
$
3,550
$
3,440
-3%
Duplex&
Multi-tam
210
$
2,490
$
2,410
-3%
Nonresidenia
I
Meter
Size
(inches)
3/4”
600
$
7,100
$
6,880
-3%
1’,
1,510
$
17,880
$
17,300
-3%
1
1/2”
2,660
$
31,490
$
30,480
-3%
2”
4,670
$
55,290
$
53,520
-3%
3”
12,680
$
150,130
$
145,310
-3%
Stormwater
Plant
Investment
Fees
The
current
methodology
used
for
calculating
storm
water
PlFs
was designed
by
Jim
Hibbard
and
endorsed
in
the
Fee
Study
Draft
Report
presented
in
June
2010
by
Red
Oak
consulting.
It
is
essentially
a
buy-in
method
with
the
system
value
consisting
of
land,
master
plan
and
drainage
system
and
the
capacity
defined
as
the
City’s
developable
acreage.
The
fee
is
adjusted
to
reflect
the
average
runoff
coefficient
for
the
City.
The
fee
per
acre
is
then
applied
to
all
new
developments
based
on
the
average
acreage
of
the
development.
Table
C
below
shows
an
overall
increase
of
1.2%
to
our
2012
storm
water
PIFs.
One
item
of
significance
needs
to
be
pointed
out:
2.
In
2009
we incorrectly
classified
all
2008 Construction
Work
in
Progress
(CWIP;
$1
0.8M)
as
growth
related construction.
More
recently
available
detailed reports
reveal
that,
for
both
2008
and
2010
CWIP
totals,
little
was
applicable
for
backbone
facilities.
Thus
the
value
of
the
system
was
overstated
in
the
2009
calculation
for
the
2010
PlFs.
3.
An
average
calculation
of
the
most
recent
four
years’ history
has
been
used
to
set
estimated
usage
for
new
customers
with
tap
sizes
of
3”
or
less.
The
most
recent
four
years’
history
(20072010)
shows
significant reduction
in
use
from
the
four
year
history
two
years
previous.
Staff
considers
the
recent
four
years
of
use
less
than what
would
normally
be
expected
due
to
above
average
annual
rainfall
for
the
same
period.
As
a
result
the estimated
usages
will
remain
the
same
as
used
in
the
prior
PIE
study
until
a
more
stable
trend
or
methodology
is
developed.
The
following
table
shows
the
resulting
fee
impact
of
the
new
$/gpd
to
the
customer
classes:
Water
Plant Investment
Fee
analysis
and
update
2009
Study
2009
implemented
2011
Study
Average
Use System
Peak Peak
Day
Use
Fee
Customer Class
par
Bill
(a),
(b) r
per
Bill
(a),
tb)
PIF
Fee
PIF
Fee
PIF
Fee
Change
gpd
gpd
$
$
$
%
Single
Family
flea
Domestic
Use
(base)
172 172
700
730
730
0.0%
Peak
Use
(par
sqft)
785
0.370
0.360 0.390
8.3%
Total
319
3.00
957
Duplex,
per
unit
Domestic
Use
(base)
120
120
490
490
510
4.1%
Peak
Usa
(persqft)
217
0.260
0.270 0.270
0.0%
Total
153
2.20
337
MultI-family
Domestic
Use
(base)
120
120
490 490
510
4.1%
Peak
Use
(per
sqft)
217
0.260 0.270
0.270
0.0%
Nonresidential
Meter
Size
Inches
3/4
561
3.10
1.850
7,530
7,530
7,880
4.6%
1
1,820
3.10
5,340
21,730
21,730
22,750
4.7%
1
1/2
3,375
3
10
11,130
45,300
45,300
47,410
4.7%
2
5,144
3.10
16970
69,070
69,070
72,290
4.7%
3
11,766
3.10
38,800
157,920
157,920
165,290
4.7%
a)
Indoor
usage
is
based
on
2005-2.008 winter
average
use.
Total
dass
use
is
based
on
252
08
annual
average.
(b)
Includes
6
percent
(or
waterlosses.
Finance
Committee
AIS
Plant
Investment
Fees
(PIFs)
are
used
to
finance
growth
related
capital
facility
costs
for
water
and
wastewater
“backbone”
(transmission and
distribution
mains
for
water;
trunk
and
collection
mains
for
wastewater)
and
treatment
facilities
and stormwater infrastructure. The
fees
establish
equity
between
existing
customers
and
new
customers
by
sheltering
existing
customers
from
the
cost
of
growth,
and
must
be
established
and
applied
in
a
legal
manner
(Colorado
Senate
Bill
15,
2001).
It
is
important
to
note
that
the
legal
requirements
allow
a
maximum
threshold
for
PIFs
but
do
not
require
the
utility
to
charge
at
these
levels.
The
utility
can
charge
less than the
legal
allowable
requirements.
In
2005,
the
City
of
Fort
Collins
Utilities
hired
Red
Oak
consulting
to
assist
in
creating
models
to
develop
PIFs
consistent
with
the above
requirements.
Staff
has
updated
this
model
every
two
years
to
set
PIEs
in
accordance
with
City
Code
requirements.
In
March
2010,
the
City
Manager
asked
Red Oak
consulting
to
review
the
City’s
existing
development
related
fees
which
included
the
four
Utility
Plant
Investment
Fees;
storm
water,
water,
wastewater
and
electric.
In
a
June
10,
2010
draft
report,
Red
Oak
found
all
four
Utilities’
fees
as
“reasonable
and
sound’.
This
report
has
yet
to
be
finalized.
There
are
three
design
approaches
to PIF
methodology:
•
The
Buy-In
approach
-
-
used
when
existing
capacity
is
sufficient
to
meet
future
needs
to
build-out
in
2040.
PIFs
are
to
recover
the
growth
related
portion
of
capacity
carried
by
current
customers
in
their
rates.
•
The Incremental
approach
--
used
when
no
current
capacity exists
to
meet
additional
growth.
The
PIFs
are
to
recover
the
costs
of
the
new
capacity
planned
to
accommodate
growth
to
build-out
in
2040.
•
The
Hybrid
approach
--
used
when
some
capacity
is
available
but
more
is
needed
to
meet
projected
growth
to
build-out
in
2040.
This
combines the
buy-in
and
incremental
methodologies.
Council
Finance
Committee
AIS
When developing
the
2011-2012
Budget,
staff
projected
a
6.23%
increase
in
electric
rates for
2012.
The
current recommended increase
is
8.3%.
The
components
of
the
rate
increase
are
as
follows:
2012
Electric
Rate
Increase
-
Original
Budget 2012
Recommended
2012
Retail
Purchase
Power
Rate
Increase
4.53%
4.80%
Increase
for
Capital
1.70%
3.50%
Total
Increase
6.23% 8.30%
Increase for
Purchase
Power
Platte
River’s
rate
increase projection
has
increased for
2012
from
6.0%
to
6.4%.
In
addition,
Platte
River
is
revising
its
rate
structure
to
charge more
per
kWh
and
peak
kW
for
the
three
summer
months
of
June,
July
and
August
and
is
increasing
the
per unit
energy
cost
while
reducing
the
per
unit
peak
demand
charge.
This
results
in
a
projected
increase
of
4.8%
to
the
City’s
retail
rates,
an
increase
of
0.27%
from the
original
2012
budget projection.
KWh sales
are
projected
at 2010
levels.
Increase
for
Capital
Light
and
Power
is
moving
from
a
period
where
capital
expenditures
were
funded
mainly through
system
growth
and
development
fees
to
a
future
where
the
majority
of
resources
will
be
directed toward
maintaining, upgrading
and
replacing existing
capital
infrastructure
which
must
be
funded through
rates.
Over
the
last
few
years,
instead
of
raising
rates
for
these needs,
Light
and
Power
has
been
intentionally
drawing
down
reserves
to
fund
many
capital
expenditures.
During
this
time
two
substations
were
built,
much
of
the
Southwest Annexation
was
transferred,
and
aging
infrastructure
was
upgraded
without
an
impact
on
rates.
Because
of
the
availability
of
surplus reserves, rate
increases
have not
kept
pace
with
February 1, 2012
• Proposed effective date of Residential Energy Service Rate Ordinance. (Effective for billings with meter
readings on or after this date.)
FINANCIAL / ECONOMIC IMPACTS
The rates are projected to increase 2012 annual operating revenues of the Water Fund by 6%, the Wastewater Fund
by 8% and the Light and Power Fund by 8.3%. (The short delay in adopting the RESR increase will slightly reduce the
increase for Light and Power.) The projected revenue from the rate increases is included in the revised 2012 budget
projections. The increases are necessary to fund purchase power, operations and system additions and replacements
and to meet debt service requirements.
The proposed water and wastewater rate ordinances will increase costs for a typical residential customer by $4.47 per
month if such customer’s water use remains unchanged. An additional change to the RESR at a later date will change