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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/18/2014 - ITEMS RELATING TO UTILITY RATES, FEES AND CHARGESAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY November 18, 2014 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2015. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 154, 2014, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. B. Second Reading of Ordinance No. 155, 2014, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. C. Second Reading of Ordinance No. 156, 2014, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees, and Charges. The purpose of this item is to consider two Ordinances adjusting electric rates and fees and one Ordinance adjusting wastewater service rates for 2015. The City Manager’s Recommended 2015 City Budget includes small rate increases in the electric and wastewater utilities. The 1.9% electric rate increase is necessary due to increased operation and maintenance costs associated with the generation and transmission of the energy. The 3.0% wastewater rate increase is necessary to meet long-term capital improvement needs due to anticipated regulatory changes and aging infrastructure. Electric development fee changes are proposed due to changes in material costs. Water and wastewater plant investment fees were updated for 2014 and will not be updated again until 2016. These Ordinances were unanimously adopted on First Reading on October 21, 2014. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. BACKGROUND / DISCUSSION A question was asked at First Reading about the increase to the fixed charge for residential electric service. The increase is due to increasing costs associated with billing. Fort Collins’ electric fixed charge will continue to be among the lowest in the state even with this modest increase (See graph in Attachment 2). ATTACHMENTS 1. First Reading Agenda Item Summary, October 21, 2014 (w/o attachments) (PDF) 2. Residential Monthly Customer Charge for 58 Colorado Utilities (PDF) 3. Ordinance No. 154, 2014 (PDF) 4. Ordinance No. 155, 2014 (PDF) 5. Ordinance No. 156, 2014 (PDF) Agenda Item 20 Item # 20 Page 1 AGENDA ITEM SUMMARY October 21, 2014 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2015. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 154, 2014, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 155, 2014, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. C. First Reading of Ordinance No. 156, 2014, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees, and Charges. The purpose of this item is to consider two Ordinances adjusting electric rates and fees and one Ordinance adjusting wastewater service rates for 2015. The City Manager’s Recommended 2015 City Budget includes small rate increases in the electric and wastewater utilities. The 1.9% electric rate increase is necessary due to increased operation and maintenance costs associated with the generation and transmission of the energy. The 3.0% wastewater rate increase is necessary to meet long term capital improvement needs due to anticipated regulatory changes and aging infrastructure. The table above shows the overall changes in the operational revenues for each utility due to the proposed rate increases. In the discussion below the rate class specific adjustments are given for electric service. The proposed wastewater rate increase would be the same for all rate classes based on the wastewater cost of service study adjustments which were made for 2014. Electric development fee changes are proposed due to changes in material costs. Water and wastewater plant investment fees were updated for 2014 and will not be updated again until 2016. 2015 Proposed Rate Adjustments Utility Proposed Adjustment Development Fees to Be Adjusted? Electric 1.9% Yes Water - - Wastewater 3.0% - Stormwater - - ATTACHMENT 1 Agenda Item 20 Item # 20 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION A. Proposed Monthly Utility Rate Adjustments The recommended 2015 rate changes are consistent with the City Manager’s Recommended 2015-16 Budget. Individual customer changes will vary by rate class and season for electricity rates and be the same for all wastewater customers. All proposed rates would be effective for meter readings on or after January 1, 2015. Electric Rates - First Reading of Ordinance No. 154, 2014, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. Staff proposes a 1.9% increase in electric rates. This increase is due to Platte River Power Authority passing on higher operation costs associated with the generation and transmission of electricity. Fuel costs are expected to increase and there will be 60 MW of new wind power added to the base generation portfolio. The increased costs for purchased power are passed through to all customer classes in the energy charge of each rate schedule with no change in the associated demand charges. In addition, the 2015 increase varies by rate class to reflect the updated Cost of Service Study. The significant decrease in the residential demand rate is attributable to the changing demographics of this rate class following a change in the City Code in 2013 making this rate class available only to all electric households and the availability of actual customer demand data through the Advanced Metering Infrastructure for the 2014 Cost of Service Study. This new data is also behind the cost shift seen in the chart between the small and medium commercial rate classes which had been a single rate class until 2012. The Advanced Metering Infrastructure has decreased the cost of meter reading, which is reflected in lower fixed charges for the commercial rate classes. The following graph shows the proposed retail rate change for each customer class. Agenda Item 20 Item # 20 Page 3 Wastewater Rates - First Reading of Ordinance No. 156, 2014, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees, and Charges. The 3.0% overall rate increase being proposed here for wastewater is necessary to ensure sufficient revenues are being collected for the long term capital costs associated with renewing the wastewater collection system and anticipated treatment plant modifications that will be necessary due to changing regulatory requirements in the near future. The City Manager’s Recommended 2015-16 Budget includes these higher capital investments and the rate increase proposed herein. The Cost of Service Study was updated for 2014 so the proposed 3.0% increase will be consistent across all rate classes in 2015. Water Rates No changes are being proposed for 2015 water monthly rates. Stormwater Rates No changes are being proposed for 2015 stormwater monthly rates. B. Proposed Utility Development Fee Changes Electric Development Fees - First Reading of Ordinance No. 155, 2014, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges The annual review of the Electric Development Fees indicates that small fee adjustments are necessary to ensure that development costs are reimbursed fairly and fully by development in 2015. Current 2014 Proposed 2015 $ Change % Change $3,366 $3,389 $23 0.68% Current 2014 Proposed 2015 $ Change % Change $32,895 $32,624 ($271) ‐0.82% Single Family Lot 8,600 square feet, 70 feet of street frontage, 150 amp service, 4/0 secondary service Model Commercial Development 82,000 sq feet, 190 ft of street frontage, 250 ft primary service, 600 amps, 208 Volt, 3‐phase, 1 transformer Agenda Item 20 Item # 20 Page 4 An additional clarification relating to Residential Building Site Charges is also being made. The Secondary Service Charge, which provides the electric service line from the primary system in street right of way to the customer’s meter is collected on the building permit. This was previously the only building site charge listed for residential development. The proposed change now more clearly labels this charge as Secondary Service Charge. In addition, some multi-family developments require an internal primary service system (cable, conduit and transformers) within the development on private property. These costs are calculated in the same manner as for non-residential Building Site Charges. The proposed change makes this clarification for Residential Building Site Charges. There are no changes in practice or policy as a result of these clarifications. C. Utility Bill Comparisons The standard residential customer’s bill will increase in 2015 under the proposed rate changes by 0.9% in the summer. During the rest of the year the increase is 1.5%. The tables below show the impacts of each of the proposed rate changes on the overall utility bill. Category 2014 2015 % Change Per square foot $ 0.05036 $ 0.05121 1.7% Per lineal front foot $ 10.35 $ 10.36 0.1% 150 amp Single Family (non electric heat) 200 amp Single Family (electric heat 150 amp) 150 amp Multi‐Family (non electric heat) 200 amp Multi‐Family (electric heat 150 amp) 1/0 $ 672 $ 680 1.2% 4/0 $ 810 $ 819 1.1% 350 kCM $ 903 $ 919 1.8% Residential $ 1,398 $ 1,404 0.4% $ 1,638 $ 1,643 0.3% $ 936 0.3% Charge Charge per Dwelling Unit Electric Capactity Fee Building Site Charges Secondary Service $ 933 $ 2,329 $ 2,334 0.2% Category 2014 2015 % Change Per square foot $ 0.05036 $ 0.05121 1.7% Per lineal front foot $ 41.25 $ 40.21 ‐2.5% Utility Owned Transformers Customer Owned Transformers $ 9.53 $ 9.55 0.2% $ 18.33 $ 18.38 0.3% $ 1,372 $ 1,389 1.2% $ 2,442 $ 2,458 0.7% Charge Commercial Electric Capactity Fee Service Entrance (per kilowatt‐ amp) Agenda Item 20 Item # 20 Page 5 The next two tables provide some comparison of the utility bills for customers of Fort Collins Utilities with the proposed 2015 rate adjustments and neighboring communities based on the current 2014 rates in those communities. Current Estimated $ % 2014 2015 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $176.43 $178.04 $1.61 0.9% Current Estimated $ % 2014 2015 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo $33.21 $34.21 WQA Water 5,000 gal/mo Total Estimated Average Monthly Utility Bill $139.66 $141.77 $2.12 1.5% $0.00 $0.60 0.9% $0.00 0.0% $1.00 3.0% $0.00 0.0% 1.8% $1.00 3.0% $0.00 $63.21 $71.40 $1.11 $33.21 $34.21 $14.26 Typical Residential Customer – Monthly Utility Bill 0.0% $28.98 $28.98 0.0% $14.26 $58.16 SUMMER WINTER $64.32 $14.26 $14.26 $58.16 $70.80 Agenda Item 20 Item # 20 Page 6 FINANCIAL / ECONOMIC IMPACTS The proposed rate ordinances will increase costs of the typical residential customer receiving electric service by $0.60 per month in the Summer and $1.11 per month for the remainder of the year. The Summer increase is less than the non-Summer increase because the wholesale demand charges which are higher in the Summer are not changing in 2015. The typical residential customer receiving wastewater service will see an increase of $1.00 per month for this service. In general, more frequent and modest rate adjustments minimize the financial impacts of such adjustments to the community. Fort Collins Utilities strives to have such rate adjustments through intermediate and long term financial planning so as to avoid larger or more intermittent rate adjustments which can have more severe impacts to commercial customers on non-calendar fiscal years and residential customers on fixed incomes. Agenda Item 20 Item # 20 Page 7 ENVIRONMENTAL IMPACTS Funding from the proposed electric rate increase will directly increase the amount of wind energy utilized in Fort Collins and allow the Utilities to continue programs and services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan. Wastewater rate increases provide funding for environmental regulatory compliance. BOARD / COMMISSION RECOMMENDATION At its September 18, 2014 meeting, the Water Board voted to recommend approval of the proposed 2015 wastewater rate increase. The draft Board minutes are attached. At its September 4, 2014, meeting, the Energy Board voted unanimously to support the 2015 Electric rate and development fee increases. The approved Board minutes are attached. PUBLIC OUTREACH Notice of the proposed electric rate changes was published in the Coloradoan, and a mailing was sent to all city electric customers residing outside of the city limits in accordance with state requirements. Commercial customers have been advised of the proposed increases through community presentations and individual meetings and communications. Staff plans to conduct outreach to all customers following the adoption of the Ordinances. Each customer’s rate class specific adjustments will be presented along with the system average adjustment through social media, print media, and meetings. Commercial customers may contact customer service for specifically their estimated rate adjustments. Residential customers may do a rate comparison through the utility website. A public meeting was held in September for commercial Key Accounts. ATTACHMENTS 1. Energy Board minutes, September 4, 2014 (PDF) 2. Water Board minutes (draft), September 18, 2014 (PDF) 3. Powerpoint presentation (PDF) ATTACHMENT 2 - 1 - ORDINANCE NO. 154, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City purchases bulk wholesale electric power from Platte River Power Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy, dated September 1, 2010; and WHEREAS, PRPA costs are increasing due to reduced wholesale market prices and surplus sales, increased costs for coal, and increased operating costs for aging plants; and WHEREAS, PRPA will increase the City’s wholesale cost of power approximately 2.5% in 2015; and WHEREAS, the increased wholesale power costs will require an average 1.9% increase in the City’s electric rates; and WHEREAS, the proposed rate increase will vary by customer class based on the cost of service to each class; and WHEREAS, the Energy Board considered the proposed electric rates, fees and changes for 2015 at its September 4, 2014, meeting and recommended approval of the rate changes by an unanimous vote; and WHEREAS, the City Manager and staff have recommended to the City Council the following electric rate adjustments for all billings issued with meter readings on or after January 1, 2015; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 26-464(c), (d), (p) and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows: - 2 - (1) Fixed charge, per account: five dollars and seven cents ($5.07). (2) Distribution facilities charge, per kilowatt-hour: two and thirty-eight one- hundreds cents ($0.0238). (3) Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: six and five one-hundredths cents ($0.0605). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and sixty-nine one-hundredths cents ($0.0769). c. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). (4) Energy and demand charge, during the non-summer season billing months of January through May and September through December: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-five one-hundredths cents ($0.0545). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). c. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths cents ($0.0673). (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) Medical assistance program. (1) The rates described in Subsection (c) above shall be discounted for those electric customers to whom this rate schedule applies and who apply for such discount, as long as: a. the applicant's annual household income falls below sixty (60) percent of the Larimer County Area Median Income (as determined by the Federal Housing Authority); and - 3 - b. the application is accompanied by a certified, signed statement from a licensed physician that electrical durable medical equipment used at the residential premises is medically necessary and that such medical equipment has been assigned a Healthcare Common Procedure Coding System number; and/or c. a certified, signed statement from a licensed physician that air conditioning at the residential premises is medically necessary for a resident thereof who, in the absence of the air conditioning, may suffer medical deterioration due to a severe immune-compromising medical condition, including, but not limited to, multiple sclerosis, quadriplegia, paraplegia, scleroderma or hemiplegia; and d. the application is accompanied by a sworn affidavit from the applicant verifying that all information contained in the application, including, if applicable, the representation that air conditioning will be operational at the applicant's address during the summer billing months, is true and correct. (2) Applications for rate discounts under this Section must be submitted annually in accordance with an administratively established schedule. (3) The discounted rates for customers with electrical durable medical equipment only shall be calculated as follows: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and forty-two one-hundredths cents ($0.0342). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and sixty-nine one-hundredths cents ($0.0769). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents: ($0.1097). - 4 - d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and ninety-eight one-hundredths cents ($0.0298). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths ($0.0673). e. 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. (4) The discounted rates for customers with medical needs requiring air conditioning only shall be calculated as follows: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and thirty-five one-hundredths cents ($0.0335). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: four and twenty-five one-hundredths cents ($0.0425). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: - 5 - 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-five one-hundredths cents ($0.0545). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths cents ($0.0673). e. 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. (5) The discounted rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be calculated as follows: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and nineteen one-hundredths cents ($0.0219). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: two and seventy-eight one-hundredths cents ($0.0278). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and ninety-eight one-hundredths cents ($0.0298). - 6 - 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredth cents ($0.0673). e. 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. (6) Notwithstanding the foregoing, no rate established under this Subsection shall reflect a discount exceeding an amount consistent with the use of one hundred fifty (150) kilowatt hours per month for the operation of electrical durable medical equipment or, if applicable, an additional amount consistent with the use of three hundred fifty (350) kilowatt hours per month for air conditioning. (7) A decision that an applicant does not qualify to participate in this program for a medical or financial reason may be appealed to the Utilities Executive Director, who shall, prior to making his or her decision, and as he or she deems appropriate, confer with one (1) or more medical or financial experts in reviewing such appeal. … (p) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology 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 Fort Collins Utility - 7 - 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 and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer as follows: a. Distribution facilities charge, per kilowatt-hour: two and thirty- eight one-hundredths cents ($0.0238). b. The energy and demand credit, per kilowatt-hour: six and five one- hundredths cents ($0.0605). … (r) Net metering-community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer’s interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer’s point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities’ distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections (c) and (d) of this Section. The energy produced by the customer’s portion of the qualifying facility shall be credited to the customer as follows: - 8 - 1. Distribution facilities charge, per kilowatt-hour: one and nineteen one-hundredths cents ($0.0119). 2. The energy and demand credit, per kilowatt-hour: six and five one-hundredths cents ($0.0605). Section 2. That Sections 26-465 (c), (f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD (c) Monthly rate. The monthly rates are as follows: (1) Fixed charge, per account: five dollars and seven cents ($5.07). (2) Demand charge, per kilowatt: two dollars and twenty-six cents ($2.26). (3) Distribution facilities charge, per kilowatt-hour: two and eleven one- hundredths cents ($0.0211). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). 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 monthly service charges billed pursuant to this Section. … (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The monthly standby distribution charge shall be two dollars and thirty- three cents ($2.33) 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 six dollars and ninety-nine cents ($6.99) per kilowatt. - 9 - (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. … (q) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology 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 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 and production of energy that flows into the utility’s distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Section Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer as follows: - 10 - a. Distribution facilities charge, per kilowatt hour: two and thirty-eight one-hundredths cents ($0.0238). b. The energy and demand credit, per kilowatt-hour: six and five one- hundredths cents ($0.0605). … (r) Net metering-community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer’s interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer’s point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities’ distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer’s portion of the qualifying facility shall be credited to the customer as follows: 1. Distribution facilities charge, per kilowatt-hour: one and nineteen one-hundredths cents ($0.0119). 2. The energy and demand credit, per kilowatt-hour: six and five one- hundredths cents ($0.0605). Section 3. That Section 26-466 (c) 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. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: - 11 - a. Single-phase, two-hundred-ampere service: three dollars and twenty-six cents ($3.26). b. Single-phase, above two-hundred-ampere service: nine dollars and sixty cents ($9.60). c. Three-phase, two-hundred-ampere service: four dollars and ninety- six cents ($4.96). d. Three-phase, above two-hundred-ampere service: eleven dollars and seventy-four cents ($11.74). (2) Demand charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: two and seventy-seven one-hundredths cents ($0.0277). b. During the non-summer season billing months of January through May and September through December: one and forty-nine one- hundredths cents ($0.0149). 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: Two and twenty-seven one-hundredths cents ($0.0227). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). 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. … - 12 - (r) Net metering-community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer’s interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer’s point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities’ distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer’s portion of the qualifying facility shall be credited to the customer as follows: 1. Distribution facilities charge, per kilowatt-hour: one and fourteen one- hundredths cents ($0.0114). 2. The energy and demand credit, per kilowatt-hour: four and sixteen one-hundredths cents ($0.0416). Section 4. That Sections 26-467 (c) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 25, schedule GS25. (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 twenty-six cents ($3.26). b. Single-phase, above two-hundred-ampere service: nine dollars and sixty cents ($10.83$9.60). c. Three-phase, two-hundred-ampere service: four dollars and ninety- six cents ($4.96). - 13 - d. Three-phase, above two-hundred-ampere service: eleven dollars and seventy-four cents ($11.74). (2) Demand charge, per kilowatt: a. During the summer season billing months of June, July and August: seven dollars and fifty-two cents ($7.52). b. During the non-summer season billing months of January through May and September through December: four dollars and thirty-seven cents ($4.37). 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 seventy-six one- hundredths cents ($0.0176). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). 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. … (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The monthly standby distribution charge shall be three dollars and eighty- two cents ($3.82) 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 forty-five cents ($11.45) per kilowatt. - 14 - (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 5. That numbered Section 26-468 (c), (f) and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: nine dollars and forty-five cents ($9.45). An additional charge of forty dollars and zero cents ($40.) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and eighteen cents ($11.18). b. During the non-summer season billing months of January through May and September through December: seven dollars and eighty cents ($7.80). 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 demand charge, per kilowatt: five dollars and ninety cents ($5.90). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). 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. - 15 - (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. … (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be four dollars and seventy-two cents ($4.72) 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 fourteen dollars and sixteen cents ($14.16) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. … (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit charge shall be eighty-six cents ($0.86) 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 fifty-eight cents ($2.58) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. - 16 - Section 6. That numbered Sections 26-469 (c), (f) and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: fifteen dollars and twenty-four cents ($15.24). a. Additional charge for each additional metering point: nine dollars and fifty cents ($9.50). b. An additional charge of forty dollars and zero cents ($40.) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and one cent ($11.01). b. During the non-summer season billing months of January through May and September through December: seven dollars and sixty-nine cents ($7.69). 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 demand charge, per kilowatt: a. First seven hundred fifty (750) kilowatts: five dollars and eighty- five cents ($5.85). b. All additional kilowatts: three dollars and forty-eight cents ($3.48). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and ten one-hundredths cents ($0.0410). b. During the non-summer season billing months of January through May and September through December: three and ninety-four one- hundredths cents ($0.0394). 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. - 17 - (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. … (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be three dollars and fifty-two cents ($3.52) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten dollars and fifty-six cents ($10.56) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. … (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit charge shall be sixty-four cents ($0.64) 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 dollars and ninety-two cents ($1.92) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. - 18 - Section 7. That 26-470 (b), (c) and (e) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. (b) Applicability. This schedule applies to customers served directly from a City substation who do not utilize any part of the City's electric distribution system (including, but not limited to, duct banks, circuits or conduits) to receive service. This schedule applies only to individual services with an average metered demand of seven hundred fifty (750) kilowatts or greater. … (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: thirty-nine dollars and forty-seven cents ($39.47). (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: ten dollars and eighty-four cents ($10.84). b. During the non-summer season billing months of January through May and September through December: seven dollars and fifty-seven cents ($7.57). 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 demand charge, per kilowatt: two dollars and fifty cents ($2.50). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and four one-hundredths cents ($0.0404). b. During the non-summer season billing months of January through May and September through December: three and eighty-eight one- hundredths cents ($0.0388). 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. - 19 - … (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be two dollars and twenty-two cents ($2.22) 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 six dollars and sixty-six cents ($6.66) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. Section 8. That the amendments herein are effective shall go into effect for all bills issued with meter readings on or after January 1, 2015. Introduced, considered favorably on first reading, and ordered published this 21st day of October, A.D. 2014, and to be presented for final passage on the 18th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 20 - Passed and adopted on final reading on the 18th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 155, 2014 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 electric development fees to be reviewed annually by the City Manager and presented to the City Council for approval no less than biennially; and WHEREAS, on November 5, 2013 the City Council adopted Ordinance No. 147, 2013, which established the electric development fees in effect for 2014; and WHEREAS, Electric Utility staff has determined that capital improvement costs required to meet the demands of anticipated new development will increase in 2015; and WHEREAS, the City Manager and Electric Utilities staff have recommended to the City Council adjustments to the electric development fees and charges for all invoices paid on or after January 1, 2015; and WHEREAS, Electric Utilities staff have recommended to the City Council that the description of the Building Site Charge (“BSC”) at Section 26-474 of the City Code be amended to distinguish between the charge applicable when connection to an on-site transformer is required to serve a residential structure and the charge when an on-site transformer is not required for electric service; and WHEREAS, based on the foregoing, the City Council has determined that amending Chapter 26 of the City Code to revise electric development fees and charges for 2015 is in the best interests of the customers of the Electric Utility and the City in general. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-474 (b) and (c), “Residential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-474. Residential electric development fees and charges. . . . - 2 - (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and one hundred twenty-one thousandths cents ($0.05121) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the city as parkland, however, specific areas within city owned parks that require electric service will be charged; and b. ten dollars and thirty-six cents ($10.36) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand four hundred and four dollars ($1,404) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), two thousand three hundred thirty-four dollars ($2,334) per dwelling unit; c. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), nine hundred thirty-six dollars ($936) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), one thousand six hundred forty-three dollars ($1,643) per dwelling unit. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for any new or modified residential service shall consist of the total of the applicable charges as described in this subsection (c), and shall be paid as specified herein. (1) When any new or modified multi-family service requires extending primary circuitry to an on-site transformer, this component of the BSC charge 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, and shall be the total of the primary circuit charge, transformer installation charge and any additional - 3 - charges. The amounts shall be the same as the BSC for nonresidential development, as shown in Section 26-475 (c). (2) When any new or modified residential service requires installation by the Utility of secondary service the BSC shall include a secondary service charge (SSC), and shall be paid at the time of building permit and based upon the current rates as of the time of issuance of the building permit. The SSC shall be the total of the secondary service charges, determined as follows: a. The 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 $ 680.00 $4.98/Foot 4/0 service $ 819.00 $5.72/Foot 350 kCM Service $ 919.00 $7.29/Foot 1/0 Mobile Home Service $ 531.00 N/A 4/0 Mobile Home Service $ 647.00 N/A (3) Actual special costs to the utility of installation of primary or secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 2. That Section 26-475 (b) and (c), “Nonresidential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and one hundred twenty-one thousandths cents ($0.05121) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding - 4 - areas dedicated to the city as parkland, however, specific areas within city owned parks that require electric service will be charged; and b. forty dollars and twenty-one cents ($40.21) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service charge shall be determined as follows. a. For customer electric loads served by the utility the kVA service charge shall be: 1. Utility-owned transformers: the kVA service charge shall be sixty-three dollars and fifty-three cents ($63.53) per kilovolt- amp (kVA) of service load rating. 2. Customer owned transformers: the kVA service charge shall be fifty-four dollars and thirty-five cents ($54.35) per kilovolt-amp (kVA) of service load rating. b. For the utility to receive customer generation in excess of the customer’s electric service provided by the utility, the following KVA service charge will also apply: 1. Utility-owned transformers: the kVA service charge shall be fifty-four dollars and thirty-five cents ( $54.35) per kilovolt- amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2)a.1. above. Such ratings shall be determined by the Utilities Executive Director. 2. Customer owned transformers: the kVA service charge shall be forty-three dollars and eighty-five cents ($43.85) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.2. above. Such ratings shall be determined by the Utilities Executive Director. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section. The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: - 5 - (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. for single-phase service, a charge of nine dollars and fifty-five cents ($9.55) per foot of primary circuit; b. for three-phase service, a charge of eighteen dollars and thirty- eight cents ($18.38) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. for single-phase service, a charge of one thousand three hundred eighty-nine dollars ($1,389) per transformer; b. for three-phase service, a charge of two thousand four hundred fifty-eight dollars ($2,458) per transformer. (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all invoices paid on or after January 1, 2015. Introduced, considered favorably on first reading, and ordered published this 21st day of October, A.D. 2014, and to be presented for final passage on the 4th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 4th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 156, 2014 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 Water Board considered the proposed wastewater rates, fees, and changes for 2015 at its September 18, 2014 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, 2015. 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) $37.38 per month Single-family residential user (metered water use) $16.70 per month plus $3.245 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 - 2 - at the service address, a system average of 4,800 gallons per month shall be billed. B Duplex (two-family) residential users (flat rate) $51.20 per month Duplex (two-family) residential users (metered water use) $18.97 per month plus $2.847 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 $3.143 per 1,000 gallons of winter quarter water use, plus a base charge of $2.47 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. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. D Minor nonresidential user $2.908 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) Base charge ¾ or smaller $8.39 1 19.37 1½ 38.99 2 66.71 3 106.58 4 168.33 6 737.91 8 852.02 - 3 - E and F Intermediate nonresidential user and Significant industrial user $2.908 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.214 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.677 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.690 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $5.003 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) Base charge ¾ or smaller $ 8.39 1 19.37 1½ 38.99 2 66.71 3 106.58 4 168.33 6 737.91 8 852.02 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 26-282 (a) of the Code of the City of Fort Collins is hereby amended to read as follows: - 4 - 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 $ 0.002677 COD 400 0.001690 TOC 130 0.005003 TSS 235 0.003214 . . . Section 3. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect for all bills issued on or after January 1, 2015. Introduced, considered favorably on first reading, and ordered published this 21st day of October, A.D. 2014, and to be presented for final passage on the 18th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk $ 64.32 $ 63.53 ‐1.2% $ 53.87 $ 54.35 0.9% Transformer Install 1 phase Transformer Install 3 phase Building Site Charges Primary Circuit 1 phase Primary Circuit 3 phase