HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2016 - ITEMS RELATING TO 2017 UTILITY RATE ORDINANCESAgenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY November 1, 2016
City Council
STAFF
Lance Smith, Strategic Financial Planning Manager
SUBJECT
Items Relating to 2017 Utility Rate Ordinances.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 122, 2016, Amending Chapter 26 of the Code of the City of Fort Collins to
Revise Electric Rates, Fees and Charges. (Option 1 or Option 2)
B. First Reading of Ordinance No. 123, 2016, Amending chapter 26 of the Code of the City of Fort Collins to
Revise Water Rates, Fees and Charges. (Option 1 or Option 2)
C. First Reading of Ordinance No. 124, 2016, Amending Chapter 26 of the Code of the City of Fort Collins to
Revise Wastewater Rates, Fees and Charges.
D. First Reading of Ordinance No. 125, 2016, Amending Chapter 26 of the Code of the City of Fort Collins to
Revise Stormwater Rates, Fees and Charges. (Option 1 or Option 2)
The purpose of this item is for Council to consider adopting rate changes for electric, water, wastewater and
stormwater monthly charges beginning in January 2017. It is unusual to have all four utilities request a rate
increase in a single year. It may also seem counterintuitive that the utility budgets are decreasing in 2017 yet
rate increases are being proposed. However, the extensive capital improvement planning and long term
financial planning processes ahead of this Budgeting For Outcomes cycle have identified the need for rate
increases in each utility in 2017 despite the budget reductions.
The proposed rate increases for 2017 and 2018, as well as the primary driver behind the requested increases,
are outlined in the table below.
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Proposed Revenue Adjustments
Utility Service 2017 2018 Primary Driver
Electric 3.45% 1.80% Insufficient Operating Income
Water 5.00% 5.00%
Inadequate Available Reserves to support
10 year Capital Improvement Plan
Wastewater 3.00% 3.00% Revenue shortfalls in 2015 and 2016
Stormwater 5.00% 0.00%
Inadequate Available Reserves to support
15 year build-out of infrastructure
STAFF RECOMMENDATION
Staff recommends adoption of the rate increases as included in the 2017 Budget being considered at this
meeting.
Staff recommends adoption of the Ordinances on First Reading. Staff recommends adoption of the Ordinance
allocating the whole electric rate increase to the fixed or base monthly service charge (labeled Option 2 below)
as well as the adoption of the Ordinances which include a 5% increase for water (Option 2) and stormwater
(Option 1) monthly charges.
BACKGROUND / DISCUSSION
2017-18 Budgets for Utility Funds
There is a direct connection between utility rates and the biennial budget. Monthly service charges need to be
adequate to meet operating expenses for each utility and to provide additional revenues to support ongoing
infrastructure renewal and improvements that may be necessary in the next budget cycle. However, there are
also long-term planning considerations which may drive the need for rate adjustments. That is the situation
this year.
The CMRB 2017-18 includes significant reductions in the overall Utilities budget. These reductions are not the
result of reducing services but rather are driven by a concerted effort to build up each Fund’s budget from the
bottom up as a way of reducing the annual underspend that is inherent in a municipal utility budget. The
resulting budgets are expected to still be sufficient for each utility however, reducing the budgets increases the
likelihood that an unexpected event may require staff to request an off-cycle appropriation from Council. The
table below summarizes the 2017 budgets relative to the 2016 adjusted budgets.
Agenda Item 11
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Budget Change Budget Change
2016-2017 2016-2017
ELECTRIC $143.8 $141.2 ($2.6) -1.9%
Reduced O&M 10%; Increased
capital based on CIP
WATER * $46.6 $34.8 ($11.8) -25.4%
Reduced O&M 2.2%; Reduced
capital from $20M to $9M
WASTEWATER $28.5 $25.5 ($3.0) -10.4%
Reduced O&M 2.1%; Reduced
capital from $10M to $7M
STORMWATER ** $16.7 $18.7 $2.0 12.2%
O&M increased 4.0%; Increased
capital from $5M to $7M
Customer Service &
Administration
$18.1 $17.2 ($0.9) -5.2%
Reduced Customer Connections
3.1% and Administration 7.8%
Total Utilities $253.7 $237.4 ($16.3) -6.4%
Every manager’s budget was
reviewed at the line item level
and adjusted based on 2015
actual spend
* Assumes 5% rate increase for Water
** Assumes 5% rate increase for Stormwater
UTILITY
2017 Budget
$M
Comments
2016 Budget
$M
Attachment 2 provides a one page summary of each Utility Fund’s 2017-18 budgets by Offer as in the City
Manager’s Recommended Budget. These summaries also show the use of Available Reserves and the
expected Available Reserve balances at the end of 2018. For Water and Stormwater there are two one page
summaries based on feedback that consideration should be given to limiting those rate increases to 3.0%
rather than 5.0%.
2016 Capital Improvement Plans and Long-term Financial Planning
The prioritized 2016 Capital Improvement Plan (CIP) for each utility was presented to the Council Finance
Committee (CFC) in April 2016. At that time it was recognized that it is not possible to meet the capital needs
of each utility necessary to maintain the current levels of service being provided with existing rates and use of
Available Reserves. As discussed in Attachment 3 this is not the result of deferring infrastructure investment
in the past but rather is the result of significant increases in the expected capital investment over the coming
decade compared to the previous decade.
After further analysis staff returned to the CFC in June 2016 with a path forward based on a 10 year financial
model for each utility to meet the long term infrastructure renewal and additional capacity needs. The path
forward, or Strategic Financial Plan (SFP), was unique to each utility but each was based on the central tenets
presented at the April CFC meeting. Those tenets incorporated into the financial modeling were:
1. Meet minimum Reserve requirements
2. Maintain current credit ratings for each Enterprise Fund and the City
3. Limit rate increases to no more than 5% annually
4. Adjust rates when:
a. Previous 3 years averaged negative operating income
b. Debt coverage ratio is projected to drop below 2.0 in the next year
c. Available Reserves are insufficient for near term necessary capital investment
d. Any purchased power cost increase is expected from Platte River
5. Issue debt when:
a. Capital expenses are forecasted to exceed Available Reserves over the next 5 years
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Tenet 4 provides an objective, quantitative method that could be utilized for future rate adjustments. It would
determine when and why rate adjustments are necessary in a consistent manner and direct attention toward
the root drivers of any such adjustment.
The resulting financial models for each utility suggest that gradual, modest rate increases and some debt
issuances will allow each utility to meet the capital investments identified over the coming 10-15 planning
horizon. Below is a brief overview of this effort for each utility taken from Attachment 3.
Light & Power Fund’s SFP
For Light & Power, the SFP presented to the CFC in June 2016 required no additional debt issuances. The
current outstanding debt will be retired in 2021. Rate increases will be necessary as Platte River moves
forward with meeting the Clean Power Plan and the distribution system is renewed. The 10 year rate forecast
for the electric utility is:
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Rate Increase 2-5% 2-4% 2-4% 2-4% 2-4% 2-4% 2-4% 2-4% 2-4% 2-4%
* Rate increases may change depending on what PRPA needs each year.
Included in the above rate forecast is 2.5% annually for purchased power increases. Not included in the above
forecast is any additional rate adjustment that may be necessary to achieve the Road to 2020 objectives
although it is not anticipated that a full 1.5% will be necessary annually for the distribution system.
Water Fund’s SFP
For Water the 10-year prioritized CIP that was presented to the Water Board and the CFC in April 2016
projects that necessary capital improvements over the coming decade will be at a rate that is twice what it has
been over the past decade. It is also front heavy in capital needs. The SFP outlined a path forward which
required leveling the capital investment over the coming 10 years to the extent possible and allows for modest
rate adjustments and debt issuances. The need and schedule for debt issuances will be discussed with the
CFC in December 2016. The 10 year rate forecast and anticipated debt issuances for the water utility are:
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Rate Increase 0-5% 1-5% 1-3% 1-3% 3-5% 3-5% 3-5% 3-5% 3-5% 3-5%
Debt Issuance $30M $20-30M $3-5M
* $160M of capital work is expected to be needed between 2017 and 2026 NOT including Halligan
Wastewater Fund’s SFP
For Wastewater no additional debt is anticipated to be necessary over the next decade in the SFP. However,
rate increases will be necessary to address the ongoing operating revenue shortfall. The 10 year rate forecast
for the wastewater utility is:
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Rate Increase 1-3% 1-3% 1-3% 1-3% 1-3% 0-3% 0-3% 0-3% 0-3% 0-3%
* $80M of capital work is expected to be needed between 2017 and 2026.
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Stormwater Fund’s SFP
For Stormwater in order to complete the initial build-out of all the major outfalls significant capital investment
will be needed. The original 10 year CIP would have required issuing too much debt at once so the plan was
stretched out over 15 years. This will address the majority of existing deficiencies. Some rate increases will
be necessary but the capital investment will mainly be funded through debt. The 10 year rate forecast and
anticipated debt issuances for the stormwater utility are:
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Rate Increase 0-3% 0-3% 0-3% 0-3% 0-3% 0-3% 0-3% 0-3% 0-3% 0-3%
Debt Issuance $20-25M $20-25M $5-10M
*$156M of capital work is expected to be needed between 2017 and 2031.
2017 Proposed Rate Increases
Light & Power
A 3.45% rate increase is being proposed for the Light & Power Fund in 2017. This proposed rate adjustment
is being driven by the need to increase operating income for the distribution Enterprise Fund and an increase
in the purchased power costs from Platte River. The proposed retail rate increase will become effective on
January 1, 2017 and will vary by rate class. The proposed wholesale increase from Platte River will also be
effective in January 1, 2017, but not officially approved by its Board until late October. Both Platte River and
the City have rates that vary by season. Summer rates are effective for June, July and August with the non-
summer rates in effect for the remaining nine months of the year.
The increase in Platte River’s 2017 wholesale rate is currently projected to be 3.0%. Within this increase,
PRPA is proposing to modify the individual components for energy and demand for the summer and winter
seasons, as shown in the table below.
Charge 2016 Approved
Tariff
2017 Proposed
Budget
% Change
Demand – Summer (per kW) $11.33 $11.33 0%
Demand – Winter (per kW) $7.91 $8.64 9%
Energy – Summer (per kWh) $0.04121 $0.04200 2%
Energy – Winter (per kWh) $0.03954 $0.04028 2%
At the wholesale level, the energy charge will increase 1.9% for both seasons. The demand charge for the
summer season will remain flat, with no increase, while the winter demand charge will increase by 9.2%.
For Fort Collins Utilities customers, the above rates will be a pass through and equal a 1.9% increase for
energy and a 5.7% increase for demand (blended on an annual basis), as calculated on total billed mix for
2015.
The overall wholesale increase of 3.0% will equate to an approximate increase of 2.2% at the retail level. In
addition, Fort Collins Utilities is proposing a 1.25% increase for the distribution system, for an overall average
increase of 3.45%.
There are three drivers behind the requested increase for the distribution system:
1. The Light & Power Fund intentionally has been drawing down reserves through negative operating
income. As an Enterprise Fund, it is expected to generate positive operating income. Now that the
reserves have been drawn down a rate increase is necessary to generate sufficient operating
revenues.
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2. Several ongoing operating expenses were approved in 2015 and 2016 for the Road to 2020 efforts.
3. The 2016 CIP shows capital needed over the next decade is on par with what was spent in the last
decade at $8-9M annually. However, there is no expectation of another large grant (like the $16M
Smart Grid Investment Grant) so revenues will have to increase to meet these needs.
The cost of service model is updated every two years, and was last updated in 2014 for 2015. Staff updated
the cost of service model again in 2016 for 2017. The rate class percentage adjustments are shown in the
graph below. The horizontal line represents the average retail increase of 3.45%. Variations by rate class are
due to multiple factors, including changes in total consumption (either up or down), changes in customer
counts, changes in load factors, and dependent on specific costs and allocations to each rate class. As the
graphs shows, no one particular rate class varies, either up or down, by more than one percent from the
average of 3.45% increase.
The 4.2% increase to the residential rate class could be applied to both fixed and variable charges or to just
one or the other. All rates below are without the 6% payment in lieu of tax. Staff is presenting two options for
Council’s consideration on how to apply the 4.2% rate increase to residential customers:
Option 1 - Increase the monthly fixed charge from $5.07 to $5.79 as the cost of service model shows is
necessary. The distribution facilities charge would also increase from $0.0238/kWh to $0.0256/kWh. This
allows the clear delineation of what is in the fixed charge to be maintained.
Option 2 - Leave the distribution facilities charge unchanged and put the entire rate increase (excluding
wholesale increases) in the monthly fixed charge. This would increase the fixed charge from $5.07 to
$6.94. Doing this would stabilize revenues by allowing more of the fixed costs to be included in the fixed
charge. Staff is recommending this option. See Attachment 4 for the context of the CFC discussion on
fixed charges in September 2016.
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2016
Option 1 Option 2
Component Current COS Model No Change to kWh
Fixed Charge $ 5.07 $ 5.79 $ 6.94
Distribution kWh $ 0.0238 $ 0.0256 $ 0.0238
2017 Options
In addition to the changes in City Code related to the rate increase there is also a change to recognize an
income qualified community solar project. Light & Power is installing a solar array on the roof of the City-
owned building at 518 Loomis Street in October 2016 to benefit low-income customers. Utilities will rely on the
Low Income Energy Assistance Program’s (LEAP’s) qualification process to verify household income and
select participants. The monthly production of the solar array will be split equally between participating
households. Much like the existing community solar garden array, a monthly bill credit will be applied to those
households. It is expected to benefit around 20 income-qualified households.
Water
The 2016 operating revenues are expected to be $300-500K short of the budgeted projection. This updated
forecast negatively impacts the debt capacity of this Enterprise Fund. Low Available Reserves in this Fund
and the need to maintain the debt capacity for a near term debt issuance are driving the need for a 5% rate
increase in 2017 and 2018. The cost of service study for the Water Fund was updated in 2015. Since all rate
class adjustments needed from the results of that study were made in 2016, the proposed increase for 2017
will be the same for all rate classes.
After looking at the current Available Reserves and the near term capital needs outlined in the CIP ($33M in
2017-18 alone), the amount of capital work in the CMRB 2017-18 is $22M, or $11M less than the CIP. This is
because the current rates cannot support the 5 year capital needs of this Enterprise Fund. As discussed
above, there is also a need to issue debt in the near term.
Staff is presenting two options for Council’s consideration on the magnitude of the proposed rate increase for
2017:
Option 1 - Increases monthly charges by 5.0% in 2017 for all water customers. A 5% rate increase will
increase the debt capacity of this Fund by $8-15M, which along with a portion of the debt service that
will be retired in 2018, will allow for the issuance of revenue bonds in 2018. By increasing the rates in
2017 it will be clear to the bond rating agencies that net pledged revenues will be sufficient to pay all
future debt obligations.
Option 2 – Increases monthly charges by 3.0% in 2017 for all water customers. A 3% rate increase in
the Water Fund would require some Offers in the CMRB 2017-18 to be unfunded or funded at a lesser
amount in 2017 and 2018. It would also lessen the increase of the debt capacity of this Fund and
reduce 2017 revenues by $520,000.
Agenda Item 11
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Ramifications of limiting rate increases to 3.0% in the Water Fund
Lowers annual revenue increase by $500K
Near term (2017-18) offers not funded or reduced 2017 2018
Offer 6.19 - Conservation Coordinator (unfunded) $70K
Offer 6.23 - Utility Inspector (unfunded) $85K
Offer 6.28 - Water Vulnerability Assessment (unfunded) $250K
Offer 6.26 - Underground Electric Supply (reduced) $95K
Offer 6.29 - Cathodic Protection (reduced) $1.0M
Longer term (2017-26) would reduce revenues by at least $10M and delay capital improvements
Wastewater
There is a 3.0% overall rate increase proposed for the Wastewater Utility in 2017. Operating revenues for the
Wastewater utility continue to be below budget. The 3.0% increases in both 2017 and 2018 in the CMRB
2017-18 are expected to adequately address this revenue shortfall.
The cost of service study for the Wastewater fund was updated in 2015. Since all rate class adjustments
needed from the results of that study were made in 2016, the 3% increase for 2017 will be the same for all rate
classes. The main driver for the 2017 increase is related to the ongoing revenue shortfall that has continued in
2016. This revenue shortfall impacts the Enterprise Fund’s ability to financially support the 10-year CIP.
These modest rate adjustments in both 2017 and 2018 are expected to address this continued revenue
shortfall and put this Fund on a path to provide sufficient Available Reserves to complete the 10-year CIP
without the need to issue new debt. This Fund is also projected to have sufficient Available Reserves to
implement anticipated nutrient removal requirements just beyond the 10-year horizon without needing to issue
addition debt.
Stormwater
A 5% rate increase is being proposed for the Stormwater Fund in the CMRB 2017-18. Operating revenues are
higher than budgeted due to growth and annexations in 2016. Together with the proposed 5% rate increase
these additional revenues will increase the debt capacity of the Stormwater Fund by $12-25M allowing the
initial build out of much of the stormwater infrastructure to be on a 15-year completion schedule beginning in
2017.
Option 1 - Increases monthly charges by 5.0% in 2017 for all stormwater customers. A 5% rate
increase will increase the debt capacity of this Fund by $12-25M, which along with a portion of the
debt service that will be retired in 2018, will allow for the issuance of revenue bonds in 2017. By
increasing the rates in 2017 it will be clear to the bond rating agencies that net pledged revenues will
be sufficient to pay all future debt obligations.
Option 2 – Increases monthly charges by 3.0% in 2017 for all stormwater customers. A 3% rate
increase in the Stormwater Fund would reduce some stream rehabilitation Offers in the CMRB 2017-
18. It would also lessen the increase of the debt capacity of this Fund.
Agenda Item 11
Item # 11 Page 9
Ramifications of limiting rate increase to 3.0% in the Stormwater Fund
Lowers annual revenue increase by $300K
Near term (2017-18) offers not funded 2017 2018
Offer 8.6 - Stream Rehabilitation Program (unfunded in 2017; reduced in 2018) $350K $300K
Longer term (2017-31) would reduce revenues by $4.5M
Alternative - Debt Issuance in 2017
Utilize proceeds to support capital improvements
Giving priority to stream restoration
Plant Investment Fees
No changes are proposed for any of the utility Plant Investment Fees (PIFs) in 2017 at this time. A review of
the Electric Capacity Fees (ECF) will be presented to the Council Finance Committee at the December 19,
2016 meeting and then to the Council at the January 10, 2017 Work Session. Depending on Council direction,
the ECF may be adjusted later in 2017. The water, wastewater and stormwater plant investment fees will be
reviewed as part of the biannual cost of service studies in 2017.
CITY FINANCIAL IMPACTS
Impact to Enterprise Funds
The proposed rate increases are necessary to support both the near term budget and the long term capital
improvement plans necessary to maintain the current levels of service being provided to our community.
Adoption of these Ordinances will improve the financial resiliency of each utility.
Summary Utility Bill Comparisons
A typical residential customer, based on average use for each utility service, would see an increase of $6.52
per month on their total utility bill, if they receive all four utility services through the City. This represents a
4.00% increase in monthly utility costs.
ELECTRIC WATER WASTEWATER STORMWATER TOTAL
Current 2016 $68.21 $43.57 $35.07 $14.26 $161.11
Proposed 2017 $71.07 $45.75 $36.12 $14.97 $167.91
$ Increase $2.86 $2.18 $1.05 $0.71 $6.80
% Increase 4.2% 5.0% 3.0% 5.0% 4.2%
Comparing rates between communities provides one point of contrast but it should be done carefully. Rates
are a function of the utility infrastructure age, management and operation. Rates can be depressed by
deferring capital improvements, for example. It is not possible to fully understand all of the drivers behind what
other communities may consider in their rate decisions. Nevertheless, below are a few comparisons of the
proposed 2017 utility rates for several neighboring communities. The first table shows the estimated bill for a
typical residential customer. Because of the large increases being proposed in some communities the gap
shown in the total utility bill for the other communities with all 4 services is shrinking in 2017.
Agenda Item 11
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ELECTRIC WATER WASTEWATER STORMWATER TOTAL
Loveland $71.37 $37.06 $28.23 $13.68 $150.34
Longmont $65.78 $38.08 $34.64 $13.05 $151.55
Boulder $79.67 $38.71 $30.53 $14.54 $163.45
Greeley $79.67 $52.89 $20.62 $6.97 $160.15
Ft Collins $71.07 $45.75 $36.12 $14.97 $167.91
Colorado Springs $88.28 $82.49 $31.27 N/A $202.04
Considering all customers the absolute percentage increases tend to be less modest than in Fort Collins:
ELECTRIC WATER WASTEWATER STORMWATER TOTAL
Loveland 6.50% 9.00% 11.00% 9.60% 8.20%
Longmont 4.00% 21.00% 3.00% 0.00% 7.20%
Boulder 0.00% 8.00% 5.00% 8.00% 3.40%
Greeley 0.00% 3.00% 0.00% 8.00% 1.30%
Ft Collins 3.45% 5.00% 3.00% 5.00% 3.90%
Colorado Springs 3.30% 6.00% 0.00% N/A 3.80%
BOARD / COMMISSION RECOMMENDATION
The electric rate increase was presented to the Energy Board at its October 6, 2016 Regular Meeting. The
Energy Board supported the 3.45% rate increase and recommends doing so by putting the entire increase into
the fixed charge. The motion carried unanimously. Please see the attached draft meeting minutes
(Attachment 1).
The water, wastewater and stormwater rate increases were presented to the Water Board at its October 20,
2016 Regular Meeting. The Water Board supported the 5% increase (Option 1 above) for the Water Fund and
the 3% increase to the Wastewater Fund unanimously. At the time the Water Board meeting was scheduled
only a 3% rate increase was presented to the board for consideration. The Water Board also supported the
3% increase in Stormwater by a 9-1 vote. Please see the attached draft meeting minutes (Attachment 5).
PUBLIC OUTREACH
Notice of the proposed electric rate increase was published in the Coloradoan, and a mailing was sent to all
electric customers residing outside of the city limits in accordance with state requirements.
Staff plans to conduct outreach to all customers following the adoption of the Ordinances through mailings,
face-to-face meetings and social media.
Agenda Item 11
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ATTACHMENTS
1. Energy Board minutes, October 6, 2016 (draft) (PDF)
2. All Utilities Master Summary (PDF)
3. Council Finance Committee Agenda Item Summary - Utilities Strategic Financial Plan, June 20, 2016
(PDF)
4. Council Finance Committee Agenda Item Summary-Residential Electric Rate Structure, September 19,
2016 (PDF)
5. Water Board minutes, October 20, 2016 (draft) (PDF)
6. Powerpoint presentation (PDF)
DRAFT: Energy Board Minutes
October 6, 2016
1
DRAFT: Energy Board Minutes
October 6, 2016
DRAFT: Fort Collins Utilities Energy Board Minutes
Thursday, October 6th, 2016
Energy Board Chairperson City Council Liaison
Pete O’Neill, 970-223-8703 Ross Cunniff, 970-420-7398
Energy Board Vice Chairperson Staff Liaison
Nick Michell, 970-215-9235 Tim McCollough, 970-305-1069
Roll Call
Board Present: Chairperson Pete O’Neill, Vice Chairperson Nick Michell, Board Members Alan Braslau,
Greg Behm, Stacey Baumgarn and Councilman Ross Cunniff.
Staff Present: Cyril Vidergar, John Phelan, Lance Smith, Tim McCollough, Christie Fredrickson, Randy
Reuscher
PRPA: Paul Davis
Members of the Public: Rick Coen
…
2017 Utility Rates
Lance Smith, Utilities Strategic Financial Director
Randy Reuscher, Utility Rate Analyst
(attachments available upon request)
Mr. Reuscher asked if the Board supports a retail electric rate increase of 3.45% (included two options to
achieve the increase). Mr. Reuscher also asked the Board to vote on the following motion: “Motion to
support the 2017 electric increase of 3.45% overall, with variation by rate class based on the recent cost of
service model update, and to support increasing the fixed charge based on option (1 or 2), as presented.”
Current Option #1 - Cost of
Service
Option #2 – Fixed
Charge
Fixed Charge $5.07 $5.79 $6.94
Distribution kWh $0.0238 $0.0256 $0.0238
Board members inquired which option might encourage the most conservation, and Mr. Phelan said the
proposed rate increases are so small in both plans that there would be very little impact from a
conservation perspective. Mr. Smith said a rate increase is necessary to cover the City’s Platte River
Power Authority Bill, operating costs, reliability and redundancy. He added that the $14M currently in
reserves will be used to help cover increased expenses and Utilities will still have enough in reserves to
meet minimum requirements.
ATTACHMENT 1
DRAFT: Energy Board Minutes
October 6, 2016
2
DRAFT: Energy Board Minutes
October 6, 2016
Chairperson O’Neill made a motion to support the 2017 electric increase of 3.45% overall, with variations
by rate class based on the recent cost of service model update and to support increasing the fixed charge
based on Option 2, as presented.
Vice Chairperson Michell seconded the motion
Motion passed unanimously 5-0
LIGHT & POWER FUND
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Operating Revenue $122,814,300 $117,450,191 $128,159,300 $126,490,000 $130,530,000
% Change -4.4% 9.1% -1.3% 3.2%
PIF / Contributions $3,150,000 $4,435,202 $3,150,000 $3,130,000 $3,130,000
% Change 40.8% -29.0% -0.6% 0.0%
All Other Revenues $2,128,011 $3,988,188 $2,318,348 $2,083,323 $2,202,456
% Change 87.4% -41.9% -10.1% 5.7%
Total Revenues $128,092,311 $125,873,581 $133,627,648 $131,703,323 $135,862,456 Revenues $131,703,323 $135,862,456
% Change -1.7% 6.2% -1.4% 3.2%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
5.1 Econ Utilities: Light & Power - Payments and Transfers $17,556,273 $16,188,056 $17,934,728 $17,907,664 $18,493,708
% Change -7.8% 10.8% 1.0% 2.6%
5.2 Econ Utilities: Light & Power - Core Operations $9,032,774 $8,988,666 $9,544,319 $9,847,223 $10,031,766
% Change -0.5% 6.2% 3.2% 1.9%
5.5 Econ Utilities: Light & Power - Ongoing Capital System
Additions $11,629,381 $9,402,428 $16,343,356 $4,951,214 $5,003,777
% Change -19.1% 73.8% -69.7% 1.1%
5.6 Econ Utilities - Light and Power Purchase Power $84,569,000 $82,164,556 $88,792,000 $87,300,000 $89,500,000
% Change -2.8% 8.1% -1.7% 2.5%
5.7 Econ Equipment Replacement - Utilities: Light & Power -
Vehicles and Equipment $615,121 $394,262 $536,630 $625,000 $480,000
% Change -35.9% 36.1% 16.5% -23.2%
6.65 Envir Utilities: Light & Power - Energy Services $4,429,403 $4,282,694 $4,475,203 $4,234,054 $4,263,877
% Change -3.3% 4.5% -5.4% 0.7%
6.67 Envir Utilities: Light & Power - Residential &
Commercial Solar Rebates $1,414,156 $1,211,801 $896,520 $500,000 $500,000
% Change -14.3% -26.0% -44.2% 0.0%
6.68 Envir Utilities: Light & Power - Core Renewable Energy $4,267,084 $3,461,397 $3,720,520 $2,960,000 $3,052,000
% Change -18.9% 7.5% -20.4% 3.1%
6.69 Envir Utilities: Light & Power - Demand Response $1,307,062 $567,069 $1,526,471 $794,950 $620,400
% Change -56.6% 169.2% -47.9% -22.0%
Subtotal Current Offers $134,820,254 $126,660,929 $143,769,749 $129,324,870 $132,030,846 $129,324,870 $132,030,846
% Change -6.1% 13.5% -10.0% 2.1% Less Current $2,378,453 $3,831,610
CAPITAL PROJECTS
Offer Result Title
5.8 Econ Capital Replacement - Utilities: Light & Power - New Feeder Capacity $4,615,492 $1,287,440
% Change -72.1%
5.9 Econ Capital Replacement - Utilities: Light & Power - System Purchases $140,000 $15,000
% Change -89.3%
5.11 Econ Capital Replacement - Utilities: Light & Power - Distribution System Conversions $0 $800,000
% Change
5.12 Econ Capital Replacement - Utilities: Light & Power - System Improvements & Replacements $2,062,000 $2,225,000
% Change 7.9%
43.1 Culture Utilities Capital Project: Art in Public Places $66,774 $43,124
% Change
Previous Capital $250,642 $4,103,963 $70,476
% Change
Subtotal Capital Projects $4,103,963 $70,476 $6,884,266 $4,370,564 $6,884,266 $4,370,564
% Change -36.5%
TOTAL WITH CAPITAL PROJECTS $134,820,254 $130,764,892 $143,840,225 $136,209,136 $136,401,410 Less Capital ($4,505,813) ($538,954)
% Change -3.0% 10.0% -5.3% 0.1%
ENHANCEMENTS
Offer Result Title
WATER FUND
10/24/2016
Based on a 5% increase
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Operating Revenue $29,450,000 $27,704,834 $29,680,000 $27,750,000 $29,070,000
% Change -5.9% 7.1% -6.5% 4.8%
PIF / Contributions $3,560,000 $6,037,438 $3,080,000 $4,640,000 $4,540,000
% Change 69.6% -49.0% 50.6% -2.2%
All Other Revenues $1,105,700 $1,656,040 $1,251,650 $2,569,872 $1,596,160
% Change 49.8% -24.4% 105.3% -37.9%
Total Revenues $34,115,700 $35,398,312 $34,011,650 $34,959,872 $35,206,160 Revenues $34,959,872 $35,206,160
% Change 3.8% -3.9% 2.8% 0.7%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
6.1 Envir Utilities: Water - Core Operations $12,752,827 $11,707,186 $13,043,786 $12,939,691 $13,240,204
% Change -8.2% 11.4% -0.8% 2.3%
6.3 Envir Utilities: Water - Conservation $871,016 $720,452 $860,201 $877,549 $891,974
% Change -17.3% 19.4% 2.0% 1.6%
6.9 Envir Capital Replacement - Utilities: Water - Minor Capital $2,481,351 $1,711,036 $1,794,549 $1,852,400 $1,681,200
% Change -31.0% 4.9% 3.2% -9.2%
6.10 Envir Utilities: Water - Payments & Transfers $10,634,269 $10,884,896 $10,633,793 $10,090,960 $10,031,241
% Change 2.4% -2.3% -5.1% -0.6%
Subtotal Current Offers $26,739,462 $25,023,569 $26,332,328 $25,760,600 $25,844,619 25,760,600 25,844,619
% Change -6.4% 5.2% -2.2% 0.3% Less Current $9,199,272 $9,361,541
CAPITAL PROJECTS
Offer Result Title
6.5 Envir Capital Replacement - Utilities: Water - Treatment and
Source of Supply $1,591,205 $3,422,001 $1,581,182 $1,000,000 $1,000,000
% Change 115.1% -53.8% -36.8% 0.0%
6.6 Envir Capital Replacement - Utilities: Water - Distribution
Master Plan Priority Projects
6.7 Envir Capital Replacement - Utilities: Water - Distribution Small
Projects
$500,000 $2,339,481 $2,300,000 $2,900,000 $2,460,000
% Change 367.9% -1.7% 26.1% -15.2%
6.8 Envir Capital Replacement - Utilities: Water - Meter
Replacement $800,000 $30,824 $800,000 $800,000 $800,000
% Change -96.1% 2495.4% 0.0% 0.0%
6.11 Envir Capital Replacement: Utilities: Water - Water Quality
Instrumentation $50,000 $50,000
% Change 0.0%
43.1 Culture Utilities Capital Project: Art in Public Places $24,000 $42,300
% Change 76.3%
Previous Capital $4,699,346 $4,553,988 $15,599,582
% Change
Subtotal Capital Projects $7,590,551 $10,346,299 $20,280,789 $4,774,000 $4,352,300 $4,774,000 $4,352,300
% Change 36.3% 96.0% -76.5% -8.8%
TOTAL WITH CAPITAL PROJECTS $34,330,013 $35,369,868 $46,613,117 $30,534,600 $30,196,919 Less Capital $4,425,272 $5,009,241
% Change 3.0% 31.8% -34.5% -1.1%
ENHANCEMENTS
Offer Result Title
6.16 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Quality Lab Infrastructure Replacement $1,300,000 $1,300,000
6.17 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Quality/Pollution Control Master Plan $110,000 $0
6.19 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Conservation Coordinator $70,724 $75,394
6.20 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Conservation Specialist, Contractual $72,596 $77,541
WATER FUND
10/24/2016
Based on a 3% increase
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Operating Revenue $29,450,000 $27,704,834 $29,680,000 $27,230,000 $28,060,000
% Change -5.9% 7.1% -8.3% 3.0%
PIF / Contributions $3,560,000 $6,037,438 $3,080,000 $4,640,000 $4,540,000
% Change 69.6% -49.0% 50.6% -2.2%
All Other Revenues $1,105,700 $1,656,040 $1,251,650 $2,569,872 $1,596,160
% Change 49.8% -24.4% 105.3% -37.9%
Total Revenues $34,115,700 $35,398,312 $34,011,650 $34,439,872 $34,196,160 Revenues $34,439,872 $34,196,160
% Change 3.8% -3.9% 1.3% -0.7%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
6.1 Envir Utilities: Water - Core Operations $12,752,827 $11,707,186 $13,043,786 $12,939,691 $13,240,204
% Change -8.2% 11.4% -0.8% 2.3%
6.3 Envir Utilities: Water - Conservation $871,016 $720,452 $860,201 $877,549 $891,974
% Change -17.3% 19.4% 2.0% 1.6%
6.9 Envir Capital Replacement - Utilities: Water - Minor Capital $2,481,351 $1,711,036 $1,794,549 $1,852,400 $1,681,200
% Change -31.0% 4.9% 3.2% -9.2%
6.10 Envir Utilities: Water - Payments & Transfers $10,634,269 $10,884,896 $10,633,793 $10,090,960 $10,031,241
% Change 2.4% -2.3% -5.1% -0.6%
Subtotal Current Offers $26,739,462 $25,023,569 $26,332,328 $25,760,600 $25,844,619 25,760,600 25,844,619
% Change -6.4% 5.2% -2.2% 0.3% Less Current $8,679,272 $8,351,541
CAPITAL PROJECTS
Offer Result Title
6.5 Envir Capital Replacement - Utilities: Water - Treatment and
Source of Supply $1,591,205 $3,422,001 $1,581,182 $1,000,000 $1,000,000
% Change 115.1% -53.8% -36.8% 0.0%
6.6 Envir Capital Replacement - Utilities: Water - Distribution
Master Plan Priority Projects
6.7 Envir Capital Replacement - Utilities: Water - Distribution Small
Projects
$500,000 $2,339,481 $2,300,000 $2,900,000 $2,460,000
% Change 367.9% -1.7% 26.1% -15.2%
6.8 Envir Capital Replacement - Utilities: Water - Meter
Replacement $800,000 $30,824 $800,000 $800,000 $800,000
% Change -96.1% 2495.4% 0.0% 0.0%
6.11 Envir Capital Replacement: Utilities: Water - Water Quality
Instrumentation $50,000 $50,000
% Change 0.0%
43.1 Culture Utilities Capital Project: Art in Public Places $24,000 $42,300
% Change 76.3%
Previous Capital $4,699,346 $4,553,988 $15,599,582
% Change
Subtotal Capital Projects $7,590,551 $10,346,299 $20,280,789 $4,774,000 $4,352,300 $4,774,000 $4,352,300
% Change 36.3% 96.0% -76.5% -8.8%
TOTAL WITH CAPITAL PROJECTS $34,330,013 $35,369,868 $46,613,117 $30,534,600 $30,196,919 Less Capital $3,905,272 $3,999,241
% Change 3.0% 31.8% -34.5% -1.1%
ENHANCEMENTS
Offer Result Title
6.16 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Quality Lab Infrastructure Replacement $1,300,000 $1,300,000
6.17 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Quality/Pollution Control Master Plan $110,000 $0
6.20 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Conservation Specialist, Contractual $72,596 $77,541
6.21 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Planner Scheduler Dispatcher (Field Operations) $47,618 $49,029
WASTEWATER FUND
10/24/2016
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Operating Revenue $23,360,000 $22,064,339 $24,060,000 $22,260,000 $22,930,000
% Change -5.5% 9.0% -7.5% 3.0%
PIF / Contributions $1,930,000 $2,729,160 $1,930,000 $1,540,000 $1,290,000
% Change 41.4% -29.3% -20.2% -16.2%
All Other Revenues $441,960 $721,712 $623,953 $650,507 $746,897
% Change 63.3% -13.5% 4.3% 14.8%
Total Revenues $25,731,960 $25,515,211 $26,613,953 $24,450,507 $24,966,897 Revenues $24,450,507 $24,966,897
% Change -0.8% 4.3% -8.1% 2.1%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
6.40 Envir Utilities: Wastewater - Core Operations $8,948,190 $7,649,742 $8,948,190 $8,710,177 $8,856,228
% Change -14.5% 17.0% -2.7% 1.7%
6.46 Envir Utilities: Wastewater - Payments and Transfers $8,319,293 $7,655,208 $8,400,217 $8,889,364 $9,120,841
% Change -8.0% 9.7% 5.8% 2.6%
6.47 Envir Capital Replacement - Utilities: Wastewater - Minor
Capital $1,329,054 $846,701 $1,329,054 $692,844 $913,500
% Change -36.3% 57.0% -47.9% 31.8%
Subtotal Current Offers 18,596,537 16,151,651 18,677,461 18,292,385 18,890,569 18,292,385 18,890,569
% Change -13.1% 15.6% -2.1% 3.3% Less Current $6,158,122 $6,076,328
CAPITAL PROJECTS
Offer Result Title
6.41 Envir Capital Replacement - Utilities: Wastewater - Collection
System Master Plan Priority Projects
6.42 Envir Capital Replacement - Utilities: Wastewater - Collection
System Small Capital Projects
6.43 Envir Capital Replacement - Utilities: Wastewater - Cured in
Place Pipe Lining
$1,492,000 $1,026,255 $1,602,000 $1,606,000 $1,543,000
% Change -31.2% 56.1% 0.2% -3.9%
6.44 Envir Capital Replacement - Utilities: Wastewater - Water
Reclamation and Biosolids $300,000 $2,722,052 $301,500 $1,000,000 $1,000,000
% Change 807.4% -88.9% 231.7% 0.0%
6.45 Envir Capital Replacement - Utilities: Wastewater - Pollution
Control Lab Instrumentation $50,000 $30,000
% Change -40.0%
43.1 Culture Utilities Capital Project: Art in Public Places $73,010 $114,650
% Change 57.0%
Previous Capital $7,579,549 $4,012,867 $7,881,535
% Change
Subtotal Capital Projects $9,371,549 $7,761,182 $9,785,035 $2,729,012 $2,687,650 $2,729,012 $2,687,650
% Change -17.2% 26.1% -72.1% -1.5%
TOTAL WITH CAPITAL PROJECTS $27,968,086 $23,912,833 $28,462,496 $21,021,397 $21,578,219 Less Capital $3,429,110 $3,388,678
% Change -14.5% 19.0% -26.1% 2.6%
ENHANCEMENTS
Offer Result Title
6.17 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Quality/Pollution Control Master Plan $100,000
6.21 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Planner Scheduler Dispatcher (Field Operations) $47,618 $49,029
6.50 Envir ENHANCEMENT - Utilities: Wastewater - Inflow-Infiltration Study $200,000
6.51 Envir ENHANCEMENT - Utilities: Wastewater - Anaerobic Digester Lid Replacement $0 $2,100,000
6.52 Envir ENHANCEMENT - Utilities: Wastewater - Dewatering Improvements $2,135,000 $2,135,000
6.53 Envir ENHANCEMENT - Utilities: Wastewater - Facility Sludge Strain Press Redundancy $720,000 $800,000
6.54 Envir ENHANCEMENT - Utilities: Wastewater - Water Reclamation and Biosolids Master Plan $500,000
STORMWATER FUND
10/24/2016
Based on a 5% increase
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Operating Revenue $14,552,000 $15,035,237 $14,625,000 $16,210,000 $16,210,000
% Change 3.3% -2.7% 10.8% 0.0%
PIF / Contributions $800,000 $1,295,049 $800,000 $900,000 $800,000
% Change 61.9% -38.2% 12.5% -11.1%
All Other Revenues $263,029 $573,700 $265,453 $350,414 $415,305
% Change 118.1% -53.7% 32.0% 18.5%
Total Revenues $15,615,029 $16,903,988 $15,690,453 $17,460,414 $17,425,305 Revenues $17,460,414 $17,425,305
% Change 8.3% -7.2% 11.3% -0.2%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
6.86 Envir Utilities: Stormwater - Household Hazardous Waste &
Spill Response Services $136,625 $118,286 $199,764 $139,060 $139,060
% Change -13.4% 68.9% -30.4% 0.0%
8.1 Safe Utilities: Stormwater - Core Operations $3,094,050 $2,808,625 $3,157,614 $3,283,300 $3,367,278
% Change -9.2% 12.4% 4.0% 2.6%
8.7 Safe Capital Replacement - Utilities: Stormwater - Minor
Capital $364,792 $278,352 $315,026 $230,000 $155,000
% Change -23.7% 13.2% -27.0% -32.6%
8.8 Safe Utilities: Stormwater - Payments and Transfers $7,816,669 $7,114,530 $7,824,257 $8,301,024 $7,536,994
% Change 10.0% 6.1% -9.2%
Subtotal Current Offers $11,412,136 $10,319,793 $11,496,661 $11,953,384 $11,198,332 11,953,384 11,198,332
% Change -9.6% 11.4% 4.0% -6.3% Less Current $5,507,030 $6,226,973
CAPITAL PROJECTS
Offer Result Title
8.3 Safe
Withdrawn - Capital Replacement - Utilities: Stormwater -
Boxelder Basin Regional Stormwater Authority Fees
(moved to Offer 8.8)
8.6 Safe Capital Replacement - Utilities: Stormwater - Stream
Rehabilitation Program $350,000 $1,400,000
8.9 Safe Capital Replacement - Utilities: Stormwater - Collection
System Replacement - Small Capital Projects $1,400,000 $1,500,000
$850,000
% Change 64.7% 7.1%
43.1 Culture Utilities Capital Project: Art in Public Places $54,000 $57,000
% Change
Previous Capital $5,575,729 $4,244,132 $4,330,700
% Change
Subtotal Capital Projects $4,244,132 $5,180,700 $1,804,000 $2,957,000 $1,804,000 $2,957,000
% Change -65.2% 63.9%
TOTAL WITH CAPITAL PROJECTS 11,412,136 14,563,925 16,677,361 13,757,384 14,155,332 Less Capital $3,703,030 $3,269,973
% Change 27.6% 14.5% -17.5% 2.9%
ENHANCEMENTS
Offer Result Title
8.15 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Buckingham and Lincoln Outfall $200,000
8.16 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Poudre River at Oxbow Levee $850,000
8.17 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Prospect and College Storm Sewer $750,000
8.18 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Remington Street Storm Sewer $100,000 $800,000
8.19 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Magnolia Street Outfall Phase 1 $300,000 $1,200,000
8.20 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Mulberry & Riverside Storm Sewer $800,000
8.21 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - NECCO Phase 3: Lemay to Redwood $1,600,000 $1,700,000
STORMWATER FUND
10/24/2016
Based on a 3% increase
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Operating Revenue $14,552,000 $15,035,237 $14,625,000 $15,900,000 $15,900,000
% Change 3.3% -2.7% 8.7% 0.0%
PIF / Contributions $800,000 $1,295,049 $800,000 $900,000 $800,000
% Change 61.9% -38.2% 12.5% -11.1%
All Other Revenues $263,029 $573,700 $265,453 $350,414 $415,305
% Change 118.1% -53.7% 32.0% 18.5%
Total Revenues $15,615,029 $16,903,988 $15,690,453 $17,150,414 $17,115,305 Revenues $17,150,414 $17,115,305
% Change 8.3% -7.2% 9.3% -0.2%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
6.86 Envir Utilities: Stormwater - Household Hazardous Waste &
Spill Response Services $136,625 $118,286 $199,764 $139,060 $139,060
% Change -13.4% 68.9% -30.4% 0.0%
8.1 Safe Utilities: Stormwater - Core Operations $3,094,050 $2,808,625 $3,157,614 $3,283,300 $3,367,278
% Change -9.2% 12.4% 4.0% 2.6%
8.7 Safe Capital Replacement - Utilities: Stormwater - Minor
Capital $364,792 $278,352 $315,026 $230,000 $155,000
% Change -23.7% 13.2% -27.0% -32.6%
8.8 Safe Utilities: Stormwater - Payments and Transfers $7,816,669 $7,114,530 $7,824,257 $8,301,024 $7,536,994
% Change 10.0% 6.1% -9.2%
Subtotal Current Offers $11,412,136 $10,319,793 $11,496,661 $11,953,384 $11,198,332 11,953,384 11,198,332
% Change -9.6% 11.4% 4.0% -6.3% Less Current $5,197,030 $5,916,973
CAPITAL PROJECTS
Offer Result Title
8.3 Safe
Withdrawn - Capital Replacement - Utilities: Stormwater -
Boxelder Basin Regional Stormwater Authority Fees
(moved to Offer 8.8)
8.6 Safe Capital Replacement - Utilities: Stormwater - Stream
Rehabilitation Program $1,100,000
8.9 Safe Capital Replacement - Utilities: Stormwater - Collection
System Replacement - Small Capital Projects $1,400,000 $1,500,000
$850,000
% Change 64.7% 7.1%
43.1 Culture Utilities Capital Project: Art in Public Places $50,500 $54,000
% Change
Previous Capital $5,575,729 $4,244,132 $4,330,700
% Change
Subtotal Capital Projects $4,244,132 $5,180,700 $1,450,500 $2,654,000 $1,450,500 $2,654,000
% Change -72.0% 83.0%
TOTAL WITH CAPITAL PROJECTS 11,412,136 14,563,925 16,677,361 13,403,884 13,852,332 Less Capital $3,746,530 $3,262,973
% Change 27.6% 14.5% -19.6% 3.3%
ENHANCEMENTS
Offer Result Title
8.15 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Buckingham and Lincoln Outfall $200,000
8.16 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Poudre River at Oxbow Levee $850,000
8.17 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Prospect and College Storm Sewer $750,000
8.18 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Remington Street Storm Sewer $100,000 $800,000
8.19 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Magnolia Street Outfall Phase 1 $300,000 $1,200,000
8.20 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - Mulberry & Riverside Storm Sewer $800,000
8.21 Safe ENHANCEMENT CAPITAL - Utilities: Stormwater - NECCO Phase 3: Lemay to Redwood $1,600,000 $1,700,000
CS&A FUND
10/24/2016
Amended
Budget 2015 Actual 2015
Amended
Budget 2016 Projected 2017 Projected 2018 2017 2018
REVENUE PROJECTION
Admin Charges - L&P $6,509,642 $5,268,453 $6,500,603 $6,705,767 $7,064,327
% Change -19.1% 23.4% 3.2% 5.3%
Admin Charges - Water $3,686,024 $2,983,212 $3,665,852 $3,381,285 $3,568,793
% Change -19.1% 22.9% -7.8% 5.5%
Admin Charges - Wastewater $2,667,290 $2,158,720 $2,679,150 $2,997,115 $3,150,418
% Change -19.1% 24.1% 11.9% 5.1%
Admin Charges - Stormwater $2,812,697 $2,276,402 $2,815,355 $2,789,308 $2,907,435
% Change -19.1% 23.7% -0.9% 4.2%
Transfers From GF for Graffiti and ClimateWise $140,459
% Change -100.0%
Transfer from Fund 602 (Self Insurance) $188,885 $188,885 $192,405 $202,632 $205,200
% Change 0.0% 1.9% 5.3% 1.3%
Other Revenues $1,170,000 $1,474,707 $1,314,108 $1,134,639 $1,135,498
% Change 26.0% -10.9% -13.7% 0.1%
Total Revenues $17,174,997 $14,350,379 $17,167,473 $17,210,746 $18,031,671 Revenues $17,210,746 $18,031,671
% Change -16.4% 19.6% 0.3% 4.8%
Budget 2015 Actual 2015 Budget 2016 Projected 2017 Projected 2018
CURRENT OFFERS
Offer Result Title
7.1 HPG Utilities - Customer Connections Programs and Services $6,461,752 $5,777,703 $6,561,635 $6,360,448 $6,455,643
% Change -10.6% 13.6% -3.1% 1.5%
7.3 HPG Utilities: Administration & General Operations $6,619,660 $5,591,480 $6,967,428 $5,946,132 $6,373,031
% Change -15.5% 24.6% -14.7% 7.2%
7.5 HPG Utilities: Information Technology Services $3,741,980 $3,434,692 $3,869,721 $4,182,470 $4,220,529
% Change -8.2% 12.7% 8.1% 0.9%
7.7 HPG Utilities: Customer Service & Administration - Minor
Capital $207,000 $172,231 $195,000 $185,000 $182,000
% Change -16.8% 13.2% -5.1% -1.6%
7.8 HPG Utilities: Customer Service & Administration - Information
Technology Minor Capital $528,527 $495,027 $552,300 $372,671 $626,795
% Change -6.3% 11.6% -32.5% 68.2%
Subtotal Current Offers $17,558,919 $15,471,133 $18,146,083 $17,046,721 $17,857,998 17,046,721 17,857,998
% Change -11.9% 17.3% -6.1% 4.8% Less Current $164,025 $173,673
CAPITAL PROJECTS
Offer Result Title
Subtotal Capital Projects $0 $0
% Change
TOTAL WITH CAPITAL PROJECTS $17,558,919 $15,471,133 $18,146,083 $17,046,721 $17,857,998 Less Capital $164,025 $173,673
% Change -11.9% 17.3% -6.1% 4.8%
ENHANCEMENTS
Offer Result Title
7.16 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - GIS Programmer Analyst $70,446 $92,457
10.5 HPG ENHANCEMENT - 1.0 FTE - Purchasing Buyer (Utilities funding .5 FTE) $33,079 $42,841
10.7 HPG ENHANCEMENT - City Procurement and Vendor Payment Modernization Program $60,500 $38,375
Subtotal Enhancements $164,025 $173,673 $164,025 $173,673
TOTAL WITH ENHANCEMENTS $17,558,919 $15,471,133 $18,146,083 $17,210,746 $18,031,671 Less
Enhancements $0 $0
% Change -11.9% 17.3% -5.2% 4.8%
Available
Reserves
REVENUE PROJECTION LESS ALL OFFERS ($383,922) ($1,120,754) ($978,610) $0 $0 $0 $0 $0
UNFUNDED ENHANCEMENTS
7.2 HPG ADMINISTRATIVE POSITION CHANGE 7.0 FTE Utilities: Customer Connections Programs & Services $65,375 $67,130
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Lance Smith, Utilities Strategic Financial Director
Date: June 20, 2016
SUBJECT FOR DISCUSSION Utilities 2016 Strategic Financial Plan Update
EXECUTIVE SUMMARY
The purpose of this agenda item is to provide the Council Finance Committee with an update on
the 2016 Utilities Strategic Financial Plan as a follow up to the discussion on April 18, 2016 on
each utility’s Capital Improvement Plan (CIP). As stated in that Agenda Item Summary:
“Each of these plans [CIPs] is projecting substantial capital investment being needed for each
utility over the next decade. Because the projected levels of investment are not achievable
through current operating revenues alone it will be necessary to further analyze the best means of
achieving these operational needs without negatively impacting the financial integrity of the
utilities while maintaining affordable utilities to the community. This analysis and the long term
Utilities Strategic Financial Plan will be the focus of the follow up discussion in a few months.”
Recommendations for achieving the capital investments proposed in the CIPs while maintaining
the financial health of each utility, along with the bond rating, through modest rate adjustments
are discussed below and in the presentation. With the exception of the Stormwater Fund, the
recommendation achieves these objectives within the next decade. The Stormwater CIP will
require 15 years to complete the work targeted within the next decade in order to achieve these
objectives.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does the Council Finance Committee support the Utilities Strategic Financial Planning
recommendations?
BACKGROUND/DISCUSSION
At the April 18, 2016 Council Finance Committee the “Utilities Capital Improvement Plan and
Strategic Financial Plan Update” outlined the full planning process for capital projects beginning
with the Master Planning efforts, including the prioritized CIPs and how the process continues
with the Strategic Financial Plan being developed. That discussion showed why none of the
utility funds have adequate Available Reserves
1
to achieve the proposed capital projects over the
1 Available Reserves are the portion of the Fund Balance that is not necessary to meet Bond covenants or the City’s
Minimum Reserve Financial Policy, and is not currently appropriated for another purpose.
ATTACHMENT 3
coming decade. Thus it will be necessary to adjust rates and consider issuing debt before
considering also delaying some of the capital projects beyond 10 years.
Several Next Steps were identified then which are being discussed herein. The Next Steps were
to:
1. Incorporate the 10 year capital projections into the long term financial model for each
utility
2. Perform scenario analyses to understand cash vs. debt funding impacts on rates, reserves,
debt capacity and the financial position of each Enterprise Fund
3. Develop recommendations on rate increases and debt issuances to meet the expected
needs of the Fund
Incorporate the 10 Year CIP into Financial Models
Since the meeting in April, the capital investment projections for 2017-2026 have been entered
into a long term financial planning model for each utility. This model considers a 21 year
horizon (2006 – 2026) beginning 10 years ago and projecting forward 10 years from today. The
10 years of historical analysis provides the basis for the 10 year forward projection for each
revenue and expense.
Perform Scenario Analyses
There are several financial mechanisms available to cover the incremental capital investments.
Any Available Reserves can be appropriated to the specific capital projects ensuring their
adequate funding. Any operating income will increase the Available Reserves. Rate
adjustments provide a direct way to increase operating income. Available Reserves can also be
increased by issuing debt through revenue bonds. The balance between these mechanisms is the
objective of the stochastic model.
The financial model has several financial objectives:
Maintaining adequate Operating Income and Reserve Minimums are necessary.
It is preferred that the City maintain, if not improve, its bond rating wherever possible
including the Utility Enterprise Funds.
Rate spikes are undesirable because of the impact such adjustments can have on
residential and commercial customers.
An order of preference is necessary when considering rates, Available Reserves and Debt in the
model. Because rate adjustments provide the most direct communication with ratepayers that
costs are increasing, rate adjustments were considered first by themselves. This is consistent
with the assumption that rate adjustments will always be a consideration. Then because the CIP
was prioritized to respect that prioritization it is necessary to also consider debt in the sources
available to increase the Available Reserves. Lastly, adjustments to the capital investment over
the next decade were considered if it just is not financially feasible to respect the prioritization of
the CIP.
1. Scenario 1 – This scenario first considers if it is possible to complete the proposed capital
projects within the next 10 years (2017 – 26) by only adjusting rates and not issuing any
new debt. If this is achievable with modest rate adjustments then this is the
recommended path for that specific utility.
2. Scenario 2 – This scenario acknowledges that it may not be possible to achieve the
objectives through Scenario 1 and considers also issuing debt to raise of the necessary
capital. If this is achievable through manageable debt service costs and modest rate
adjustments then it is the recommendation.
3. Scenario 3 – This scenario is considered when there is no combination of modest rate
adjustments and serviceable debt issuances to achieve the capital projects and maintain
the financial health of the utility. In this scenario adjustments to the 10 year capital spend
are considered – either smoothing out the capital spend evenly across those 10 years or
extending the time horizon out beyond 10 years.
Develop Recommendations
Light & Power
The projected 10 Year CIP includes $90M of new capital needs for the anticipated system
demands over the decade. This represents a 10-15% increase over the previous decade’s capital
investment.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Annual Capital Investment
501 - Light & Power Fund
Operational Technology & Fiber
Annexations
New Capacity
Substation Improvements
Distribution System Improvements
Ave. Capital Investment 2017-26
Historical Ave Capital 2006-15
Such a change from recent history should be manageable through modest rate increases alone.
The dashboard below shows how this is viable. The upper left corner is a chart showing
potential annual rate increases as being less than 5%. The upper right corner is a chart showing
the annual operating income for the fund. Each Enterprise is expected to have adequate
operating income. The bottom right corner shows a chart of the total outstanding principal debt.
In this analysis no additional debt was issued and the outstanding debt is fully retired in 2020.
The bottom left corner shows the Available Reserves. Here the capital investment drops off
significantly in the last few years resulting in an increased operating income which results in the
Available Reserves building up quickly. This analysis will be updated every two years to
monitor if any adjustments are necessary.
Recommendation: Scenario 1 will allow for the additional capital needs through modest rate
adjustments without the anticipated need of issuing debt over the coming decade.
Water
The Water Enterprise Fund has a CIP with $160M which represents twice the historical average
annual spend has been.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Rate Increase
($5,000,000)
($2,500,000)
$0
$2,500,000
$5,000,000
$7,500,000
$10,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
This utility also has low Available Reserves which limits short term financial agility. The CIP
also ramps up quickly which together make it infeasible to have modest rate adjustments alone
(Scenario 1) and achieve the operational needs for the CIP. The dashboard below shows the
negative Available Reserves and large rate increases. The build-up of Available Reserves may
make it necessary to adjust rates downward as well in the last few years.
Next, issuing debt along with modest rate increases was considered. This Scenario (Scenario 2)
does result in a feasible path. However, as the dashboard below shows, operating income
remains negative.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Annual Capital Investment
502 - Water Fund
Environmental Services
Water Resources
Water Distribution
Water Production
Ave. Capital Investment 2017-26
Historical Ave Capital 2006-15
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
($10,000,000)
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0% Rate Increase
Next it was assumed that the annual capital spend over the coming decade can be smoothed to
near the average annual spend each year (Scenario 3). This change respects the prioritization in
the CIP and accomplishes the same infrastructure in 2026 as the CIP. The dashboard below
shows how this change reduces the amount of debt needing to be issued from $55-70M to $50-
60M and results in positive operating income.
Recommendation: Scenario 3 (immediately above) which will accomplish the financial
objectives while completing the CIP over the coming decade.
Wastewater
The slight reduction in the estimated capital investment over the coming decade compared to the
previous decade is the result of the Mulberry rebuild.
($5,000,000)
($3,000,000)
($1,000,000)
$1,000,000
$3,000,000
$5,000,000
$7,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0% Rate Increase
($5,000,000)
($3,000,000)
($1,000,000)
$1,000,000
$3,000,000
$5,000,000
$7,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
The minor change in the average annual capital investment should be manageable through rate
adjustments alone. This Fund also has healthy Available Reserves allowing for more financial
agility if needed in an emergency. The dashboard below shows how Scenario 1 is sufficient to
meet the operational needs and maintain the current levels of service.
The bottom left corner shows a sizable build-up of Available Reserves over the next decade.
This is intentional to address new nutrient removal and temperature regulations driven capital
projects in 2027-30 estimated to cost $60-80M in addition to ongoing system renewal.
Recommendation: Modest rate adjustments should be sufficient to cover capital investment in
the next decade without the need to issue additional debt for this fund.
Stormwater
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Annual Capital Investment
503 - Wastewater Fund
Environmental Services
Wastewater Collection
Water Reclamation
Ave. Capital Investment 2017-26
Historical Ave Capital 2006-15
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
2.0%
4.0%
6.0%
The Stormwater Enterprise Fund has spent just over $5M per year on capital investments in the
previous decade. The 2017-26 CIP requires just over $15M per year or 3 times the current rate
of investment.
This utility has low Available Reserves which limits the financial agility of the utility in the short
term. The CIP is also heavily focused on the first 5 years ($71M invested in 2017-21 and $29M
in 2022-26). Together these challenges make it infeasible to address the CIP goals through rates
alone. The dashboard below for this Scenario (Scenario 1) shows that Available Reserves
immediately turn negative and operating income jumps with the large rate adjustments.
Rate adjustments are not effective in the situation this utility is in with high operating income,
low Available Reserves, and annual operating revenues of just $15M, or the same amount of
capital investment requested per year although it is tightly focused on 4 years in the middle.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Annual Capital Investment
504 - Stormwater Fund Boxelder Basin Stormwater
Authority
Stream Rehabilitation
Minor Capital
Major Capital
Ave. Capital Investment 2017-26
Historical Ave Capital 2006-15
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
($30,000,000)
($25,000,000)
($20,000,000)
($15,000,000)
($10,000,000)
($5,000,000)
$0
$5,000,000
$10,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Rates and debt (Scenario 2) are shown in the dashboard below. Available Reserves are not
sufficient even with the very large debt issuance ($80-90M within the first 5 years) and 10% rate
increases.
Next it was considered how the CIP could be modified while respecting the prioritization of the
investments. Because the increase in the average annual capital investment is increasing so
much from $5M to $15M per year smoothing the investment evenly over the 10 years is not
going to be adequate. Instead stretching the timeline from 10 years out to 15 years was
considered (Scenario 3). The dashboard below shows how effective this approach is at achieving
the financial objectives albeit over a longer time period.
Recommendation: Scenario 3 which reduces the near term debt issuance down from $80-90M to
$40-50M by extending the time horizon out 5 years to 2031.
Where Are We In the Planning Process?
As the CIPs are incorporated into developing the 2016 Utilities Strategic Financial Plan there is a
need for some back and forth discussions between the Utility Executive Director, Operations
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
($10,000,000)
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0% Rate Increase
$0
$1,000,000
Managers and Finance around what may be a manageable adjustment to the annual capital
investment while maintaining the current levels of service being provided to the community.
This is where we are at now in the whole planning process.
The Scenario Analyses suggested the preferred financial strategy to the CIP. Now the
Operations Managers need to consider what this approach would mean in terms of impacts to the
current levels of service and what may be adjustable or not. Subsequent modeling efforts may be
needed if the preferred financial strategy is not operationally feasible.
On the version of the process map presented in April shown below the red loop represents where
we are currently at in the planning process:
Conclusion
The 2016 CIPs included significant increases in anticipated capital investments for two of the
utilities over the previous decade’s investment level. These two utilities also are the same two
utilities with low Available Reserves. Managing the financial health of these two utilities, Water
and Stormwater, while maintaining the current levels of service will require rate adjustments,
debt issuances and some adjustments to the CIPs.
The other two utilities, Light & Power and Wastewater, are expecting modest rate adjustments
may be necessary over the next 10 years, but there is not expected to be a need to issue debt in
these two utilities over the next decade.
Utility
Available
Reserves (in $M)
2015 Operating
Expenses (in $M)
Days Cash on Hand in
Available Reserves
Capital Spend
2006-15 (in $M)
Capital Spend
2017-26 (in $M)
% Increase /
(Decrease)
Light & Power 16.4 38.8 154 80.5 85 5.6%
Water 4.4 23.3 69 73.9 152.1 105.8%
Wastewater 18.5 15.8 427 87.7 84.8 -3.3%
Stormwater 4.1 9.9 151 56.3 156.5 178.0%
Staff will continue to keep the Council Finance Committee and the entire City Council informed of the
biannual updates and other changes to the Utilities Strategic Financial Plan. The 2016 Utilities Strategic
Financial Plan will be published once the current iterative step between Finance and Operations is agreed
upon within the next few months.
ATTACHMENTS
Attachment 1 – CFC Presentation for June 20, 2016
Attachment 2 – CFC AIS on “Utilities Capital Improvement Plans and Strategic Financial Plan
Update” from April 18, 2016
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Lance Smith, Utilities Strategic Financial Director
SUBJECT FOR DISCUSSION – Residential Electric Rate Structure
EXECUTIVE SUMMARY
The purpose of this agenda item is to provide the Council Finance Committee with an overview of current
electric rate structure methodologies and trends. The considerable interest in potential changes to our
existing rate structures, particularly in the electric monthly charges, led staff to engage a utility rate
consultant to provide an outside perspective and additional expertise on how the utility industry is
addressing the current changes in the industry. This presentation is focused on the electric utility but
many of the principles and considerations in designing rates are applicable to the water and wastewater
utilities as well. The presentation and subsequent discussion will serve to provide the City Council and
staff with some common footing for subsequent presentations and discussions.
Dawn Lund is a Vice President at Utility Financial Solutions (UFS). UFS is utilized by Platte River Power
Authority and the City of Loveland for rate analysis, and has worked with Fort Collins Utilities in the past.
Dawn and Mark Beauchamp, President of UFS, provide the annual rate making training that is provided
through the American Public Power Authority (APPA) and are recognized authorities in rate design and
current rate trends in the electric industry.
The presentation to begin the discussion will focus on the following:
Current industry rate trends
Current weaknesses of residential rate structures
Distributed generation issues and rate structures
Rates that promote financial stability
Pros and cons of alternative rate structures
Determining the role of a monthly customer charge
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does the Council Finance Committee have specific direction on residential electric rate structures
that staff should explore beyond the current Time of Use pilot?
2. Does the Council Finance Committee have direction for the rate structures in place in any of the
utilities?
BACKGROUND/DISCUSSION
The update to the Utilities Capital Improvement Plans in 2016 and the two prior discussions with the
Council Finance Committee in April and June of 2016 have provided a long range perspective on the
infrastructure needs of each utility. This long range planning will require rate adjustments in order to
provide the necessary revenues for such improvements beginning in the 2017-18 Budget cycle. With any
rate increase it is necessary to consider the impacts such an increase will have on the utility and the
community. The Rate Ordinances are scheduled for First reading on November 1, 2016 and will include
a thorough explanation of why the specific rate increases are being proposed for City Council
consideration.
Considerable interest has been expressed by the City Council and community to consider alternative rate
structures. Staff continues to do the due diligence necessary before presenting any alternative rate
structures to the City Council. Specific recent considerations related to residential electric rates include:
ATTACHMENT 4
1. Time of Use Pilot (TOU) – A year-long pilot study is concluding at the end of September that was
designed to determine if a rate structure which charges more during the few hours each day that
energy is most in demand and less during the remainder of the day. Results from this study and
the customer survey will be presented at the January 24, 2017 Council Work Session.
2. Electric Vehicles (EV) – The current rate structure does not provide an incentive to promote EV
adoption in our community. There have been requests for consideration of an “EV rate.” This is
a variation on the TOU rate structure. As the charging technology develops the trend has been to
faster charging which requires significantly more electric capacity throughout the distribution
system.
3. Distributed Storage – As battery technology evolves it may be possible to reduce the anticipated
increase in distribution infrastructure and to reduce demand charges for energy during peak
periods. A pilot study is being proposed in the 2017-18 City Manager’s Recommended Budget to
explore how this may be optimized in our community. While the study is focused on utility owned
battery storage, consumer owned storage is certainly possible and how to compensate those
customers for the use of their storage will become an industry concern in the near future.
4. Rate Affordability - Rate increases are not desired by anyone but the financial burden is
particularly acute in lower income households. The current rate structure, while intended to
promote energy conservation by charging more than the marginal cost to those residences that
exceed the community average in energy use, may add to this burden by charging customers
living in inefficient housing more than the cost to provide service to them.
5. Net Metering – With the deployment of the advanced metering infrastructure it became possible
to do a monthly reconciliation for those residential accounts that have distributed solar
generation. Adoption of distributed solar generation is an ongoing objective of the electric utility
but it also poses a financial risk to the utility. The current fixed charge is not adequate to cover
the fixed costs of providing electric service to residential customers. Some utilities have mitigated
this risk by increasing their fixed charges or by having a higher fixed charge for Net Metering
customers.
Utility rate design involves balancing a number of potentially competing objectives. Understanding these
objectives and the balancing act rate design entails is crucial before changes are made to the existing
rate structure. These objectives include:
1. Full cost recovery – any rate structure needs to provide adequate revenues to meet anticipated
expenses
2. Fairness or Equity – each rate class should cover the cost of serving that rate class whenever
possible; intra-class subsidies will occur to some extent but inter-class subsidies should be
avoided
3. Revenue stability and predictability – confidence in anticipated revenues is necessary for major
capital investment; weather and other unanticipated events can significantly affect revenues
4. Rate stability and predictability – economic development and community support for the utility
require that rate adjustments are predictable
5. Simplicity – utility rates should provide an effective, understandable price signal to customers
6. Feasible – any rate structure needs to be administrable by the utility
7. Defendable – rates must meet legal restrictions
Utility rates will be discussed with City Council on several agendas in the coming months as shown in the
table below.
Conclusion
UFS will provide an opportunity for the CFC to discuss any rate structure ideas with an outside industry
expert. Through this discussion and the subsequent agenda items an explanation of the need for the rate
increases being proposed for 2017 will be provided to the City Council.
Agenda Item Forum Date Purpose
Electric Rate Trends
Council Finance
Committee
9/19/2016
To provide some background information
to the CFC on current trends
Raw Water Requirements
and Cash-in-lieu
City Council Work Session 10/25/2016
To update the raw water requirements
and the associated cash-in-lieu of water
rights
2017 Rate Ordinances
City Council Regular
Meeting
11/1/2016
To gain support and direction on the
increases being proposed for 2017
Electric Capacity Fees City Council Work Session 1/10/2017
To present a new methodology for
calculating electric development
charges
DRAFT/Unapproved Minutes
Excerpt from Unapproved Water Board Minutes - October 20, 2016
2017 Utility Rate Ordinances
(Attachments available upon request)
Utilities Strategic Finance Director Lance Smith summarized the Water, Wastewater, and
Stormwater ordinances for proposed 2017 rates that will be on the City Council agenda for first
and second readings on November 1 and 15. No changes are proposed for any of the three utility
Plant Investment Fees (PIFs) in 2017.
A 5% increase is proposed for the Water Fund in 2017. This rate increase is driven by the need to
increase available reserves for near-term capital requirements and to increase operating revenues
to cover debt service required to achieve the 10-year prioritized capital improvement plan (CIP).
Examples of 2017 projects include Poudre Canyon raw water line assessment, distribution
system renewals, and Water Quality Lab improvements.
A 3% rate increase is proposed for the Wastewater Fund for 2017. Operating revenues for the
Wastewater utility continue to be below budget. The 3% increases in both 2017 and 2018 in the
City Manager’s Recommended Budget (CMRB 2017-18) are expected to address this continued
revenue shortfall and put this fund on a path to provide sufficient available reserves to complete
the 10-year CIP without the need to issue new debt. Examples of 2017 projects include
replacement of centrifuges and biosolids improvement.
A 3% rate increase is proposed for the Stormwater Fund in 2017. Staff originally proposed a 5%
rate increase in the CMRB 2017-18. The 3% rate increase would increase the debt capacity of
the Stormwater Fund by $8 million to $17 million, allowing the initial buildout of the stormwater
infrastructure to be on a 15-year completion schedule beginning in 2017. Examples of 2017
projects include Magnolia Street Outfall Phase 1, North East College Corridor Outfall Phase 3.
Neighboring communities are planning 2017 water rate increases of 9% (Loveland), 21%
(Longmont), 8% (Boulder), 6% (Colorado Springs), and 3% (Greeley). West Fort Collins Water
District is planning an 8% water rate increase; Fort Collins Utilities provides treated water to this
district.
Discussion Highlights
Board members inquired about and commented on various topics, including the revenue shortage
(possibly due to customers installing more water efficient toilets, etc.), messaging to customers
regarding rate increases, and quantifying risk factors related to insurance discounts for
customers. Utilities Executive Director Kevin Gertig commented on critical reasons for capital
improvement projects, such as the expectation of more erratic precipitation and longer periods of
drought in the coming years. He suggested that Water Engineering and Stormwater staff present
the master plan at a future meeting to explain the plan and highlights of 150 current projects. A
board member commented that a drought assessment study would not get funded if the water rate
were approved at a 3% increase instead of 5% (the additional 2% increase would generate
enough revenue to fund the Water Supply Vulnerability Assessment, a Utilities inspector, and a
ATTACHMENT 5
DRAFT/Unapproved Minutes
Water Conservation Coordinator). A board member inquired about affordability for customers.
Another board member spoke in favor of a 5% rate increase due to the dangers of not budgeting
money for vital capital improvements, and stated that a vulnerability assessment is crucial to
replace information that is 30 years old.
Staff recommendations:
A 5% rate increase proposed for the Water Fund in 2017.
A 3% rate increase proposed for the Wastewater Fund in 2017.
A 3% rate increase proposed for the Stormwater Fund in 2017.
Board Member Phyllis Ortman moved that the Water Board support the 2017 water
increase of 5% as presented by staff.
Board Member Duncan Eccleston seconded the motion.
Vote on the motion: It passed unanimously, 10-0.
Board Member Duncan Eccleston moved that the Water Board express support the 2017
3% wastewater increase as presented by staff.
Board Member Phyllis Ortman seconded the motion.
Vote on the motion: It passed unanimously, 10-0.
Board Member Duncan Eccleston moved that the Water Board support the 2017 3%
stormwater increase as presented by staff.
Board Member Phyllis Ortman seconded the motion.
Vote on the motion: It passed 9-1 with Board Member Lori Brunswig dissenting.
Reason for Nay vote: Due to difficulty in getting questions answered by staff regarding rate
increases, and not being treated well when asking questions about rate increases and requesting
information about projects. Utilities Executive Director Kevin Gertig thanked Ms. Brunswig for
her comments and expressed concern about the issues she raised; he stated he’s listening, vowed
to research her concerns, and make changes.
Kevin R. Gertig, Utilities Executive Director
Lance Smith, Utilities Strategic Finance Director
11.01.2016
ATTACHMENT 6
Rates / Budget Process Overview
2
Utility Rates
Necessity: To provide long term revenues necessary to meet the
operational needs of each utility
Revenue Requirements:
– Biennial Budget addresses near term
– Strategic operational and financial planning addresses long
term
Adjustments:
– Cost of Service studies every other year
– Revenue requirements
3
Process
4
UTILITIES RATES
Analysis:
• Near term revenue
requirements
• Long term capital and
O&M needs
Development:
• Ongoing and
Enhancement Offers
focus on buying
Strategic Outcomes
STRATEGIC PLAN BIENNIAL BUDGET
Strategic Outcomes:
• High-Performing
Government
• Economic Health
• Environmental Health
• Safe Community
2017 Budgets
5
Utilities Budget Cuts
UTILITY
FUND
2017 Budget
$M
Budget Change
2016-2017 Comments
ELECTRIC $141.2 -1.9%
Reduced O&M 10%; Increased capital based on
CIP
WATER $34.8 -25.4%
Reduced O&M 2.2%; Reduced capital from $20M
to $9M
WASTEWATER $25.5 -10.4%
Reduced O&M 2.1%; Reduced capital from $10M
to $7M
STORMWATER $18.7 12.2%
O&M increased 4.0%; Increased capital from $5M
to $7M
CS&A $17.2 -5.2%
Reduced Customer Connections 3.1% and
Administration 7.8%
Total Utilities $237.4 -6.4%
Every manager’s budget was reviewed at the line
item level and adjusted based on 2015 actual
spend
6
2017 Proposed Rate Adjustments
7
2017 Rate Summary
UTILITY 2017 PROPOSED
INCREASE NOTES
PLANT
INVESTMENT FEES
ELECTRIC 3.45% Varies by rate class
Electric
Capacity Fee
January 2017
WATER 5.00% Same for rate classes 2018
WASTEWATER 3.00% Same for rate classes 2018
STORMWATER 5.00% Same for rate classes 2018
8
Light & Power Capital Needs
9
Electric Rate Increase
Average increase of 3.45 percent
- Exact percent varies by rate class
2.2 percent from wholesale increase for:
• Operational improvements to generation and transmission facilities
• Solar facility at Platte River Power Authority
1.25 percent at distribution level for:
• Operating Income
• Solar incentives
• Increased energy efficiency programs
• Capital infrastructure improvements
10
Electric Increase by Rate Class
4.2%
3.8%
2.9% 2.8%
3.5%
2.6%
0%
1%
2%
3%
4%
5%
Residential Residential
Demand
Small
Commercial
Medium
Commercial
Large
Commercial
Industrial
% Rate Increase
2017 Proposed Electric Rate Changes
Based on 2016 Cost of Service Study
Full COS Adjustments System Rate Change
11
Water Infrastructure Needs
12
Water Rate Increase
3 or 5% rate increase for all rate classes
managing source of supply to tap:
• 10 year Capital Improvement Plan
• Increase financial agility of the Enterprise
2017 Project Examples:
• Poudre Canyon Raw Water Line
assessment
• Distribution System renewals
• Water Quality Lab improvements
13
Wastewater Infrastructure Needs
14
Wastewater Rate Increase
3% rate increase for all rate classes for:
• Revenue shortfall
• Infrastructure improvements
• Replacement of aging pipes in collection
system
2017 Project Examples:
• Replacement of centrifuges
• Biosolids improvement
15
Stormwater Capital Needs
16
Stormwater Rate Increase
3 or 5% rate increase for all rate classes for:
• Meeting 15 year horizon for completing buildout
of major drainage outfalls
• Minimizing flood hazard community-wide
2017 Project Examples:
• Magnolia Street Outfall Phase 1
• North East College Corridor
Outfall Phase 3
17
2017 Rate Comparisons
18
2017 Rate Adjustments
in Neighboring Communities
ELECTRIC
OVERALL
WATER
OVERALL
WASTEWATER
OVERALL
STORMWATER
OVERALL
TOTAL
Loveland 6.5% 9.0% 11.0% 9.6% 8.2%
Longmont 4.0% 21.0% 3.0% 0.0% 7.2%
Boulder 0.0% 8.0% 5.0% 8.0% 3.4%
Greeley 0.0% 3.0% 0.0% 8.0% 1.3%
Ft Collins 3.45% 5.0% 3.0% 5.0% 3.9%
Colorado Springs 3.30% 6.0% 0.0% N/A 3.8%
19
2017 Comparison - Residential
ELECTRIC
OVERALL
WATER
OVERALL
WASTEWATER
OVERALL
STORMWATER
OVERALL
TOTAL
Loveland $71.37 $37.06 $28.23 $13.68 $150.33
Longmont $65.78 $38.08 $34.64 $13.05 $151.55
Boulder $79.67 $38.71 $30.53 $14.54 $163.45
Greeley $79.67 $52.89 $20.62 $6.97 $160.15
Ft Collins $71.07 $45.75 $36.12 $14.97 $167.91
Colorado Springs $88.28 $82.49 $31.27 N/A $202.04
20
Electric Rates – Residential
21
Electric Rates – Small Business
$0
$50
$100
$150
$200
$250
$300
$350
$400
CAMU Small Commercial Survey | July 2016 - Cost of 2,000 kWh + 10 kW
Municipality CO-OP Investor
22
Electric Rates – Large Business
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
CAMU Large Commercial Survey | July 2016 - Cost of 45,000 kWh + 130 kW
Municipality CO-OP Investor
23
Residential Customer Impact
24
2017 Residential Typical Bill
ELECTRIC
OVERALL
WATER
OVERALL
WASTEWATER
OVERALL
STORMWATER
OVERALL
TOTAL
Current 2016 $68.21 $43.57 $35.07 $14.26 $161.11
Proposed 2017 $71.07 $45.75 $36.12 $14.97 $167.91
$ Increase $2.86 $2.18 $1.05 $0.71 $6.52
% Increase 4.2% 5.0% 3.0% 5.0% 4.2%
25
26
- 1 -
OPTION 1
(Increase in Fixed Monthly Charge and Distribution Facilities Charge)
ORDINANCE NO. 122, 2016
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 rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth herein
shall be used to defray the costs of providing such utility services as required by the Charter and
the City Code; 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 3.0%
in 2017; and
WHEREAS, the increased wholesale power cost will require an average 2.2% rate increase
and increased local distribution costs will require an additional average 1.25% rate increase, for a
total City electric rates increase in 2017 of 3.45% in order to remain consistent with Article XII,
Section 6, of the City Charter; and
WHEREAS, the proposed rate increase will vary by customer class based on the cost of
service to each class; and
WHEREAS, in addition to adjusting the electric rates in the City Code, Utilities staff has
identified formatting and maintenance updates to Chapter 26 of the City Code necessary to
improve the clarity with which electric rates are stated; and
WHEREAS, the Energy Board considered the proposed electric rates, fees, and charges,
and language clarifications for 2017 at its October 6, 2016 regular meeting and provided a
recommendation of approval to City Council; and
- 2 -
WHEREAS, the City Manager and staff have recommended to the City Council the
following electric rate adjustments and City Code rate language clarifications for all electricity
used by GS50 and GS750 rate class customers on or after January 1, 2017, and for all other
customer classes for all billings issued with meter readings on or after January 1, 2017; 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 the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Sections 26-464 (c) through (f), (p), (r) and (s) 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 shall be the sum of the following
charges:
(1) Fixed Charge Per account $5.07
$5.79
(2) Distribution facilities charge Per kWh $0.0238
$0.0256
(3) Energy and demand charge
a. Summer. 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.
1. Tier 1 - for the first five hundred (500) kilowatt hours
per month
2. Tier 2 - for the next five hundred (500) kilowatt hours
per month
3. Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0632
$0.0634
Per kWh $0.0804
$0.0807
Per kWh $0.1146
$0.1150
b. Non-summer. During the non-summer season billing months of January through
May and September through December.
1. Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh Per kWh
$0.0570
$0.0583
- 3 -
2. Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
3. Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0611
$0.0625
Per kWh $0.0703
$0.0719
(4) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
(d) Medical assistance program.
. . .
(3) The discounted monthly rates for customers with electrical durable medical
equipment only shall be the sum of the following charges:
a. Fixed Charge Per account $5.07
$5.79
b. Distribution facilities charge Per kWh $0.0238
$0.0256
c. Energy and demand charge
1. Summer. 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.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month
(c) Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0357
$0.0358
Per kWh $0.0804
$0.0807
Per kWh $0.1146
$0.1150
2. Non-summer. During the non-summer season billing months of January through May and
September through December.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
(c) Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0311
$0.0318
Per kWh
$0.0611
$0.0625
Per kWh $0.0703
$0.0719
d. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
- 4 -
(4) The discounted monthly rates for customers with medical needs requiring
air conditioning only shall be the sum of the following charges:
a. Fixed Charge Per account $5.07
$5.79
b. Distribution facilities charge Per kWh $0.0238
$0.0256
c. Energy and demand charge
1. Summer. 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.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month
(c) Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0350
$0.0351
Per kWh $0.0444
$0.0446
Per kWh $0.1146
$0.1150
2. Non-summer. During the non-summer season billing months of January through May
and September through December.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
(c) Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0570
$0.0583
Per kWh
$0.0611
$0.0625
Per kWh $0.0703
$0.0719
d. Payment in lieu of taxes (PILOT) and franchise.
A charge of all monthly service charges billed pursuant to this Section
6 percent
(5) The discounted monthly rates for customers with electrical durable medical
equipment and medical needs requiring air conditioning shall be the sum of the
following charges:
a. Fixed Charge Per account $5.07
$5.79
b. Distribution facilities charge Per kWh $0.0238
$0.0256
c. Energy and demand charge
1. Summer. 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
- 5 -
provided that no customer shall be billed more than three (3) full billing cycles at the
summer rate.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month
(c) Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0229
Per kWh $0.0291
$0.0292
Per kWh $0.1146
$0.1150
2. Non-summer. During the non-summer season billing months of January through May
and September through December.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
(c) Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0311
$0.0318
Per kWh
$0.0611
$0.0625
Per kWh $0.0703
$0.0719
d. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
. . .
(e) 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 the premium per kilowatt hour set forth in this Subsection (e). 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.
Per kWh $0.024
$0.025
(f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this
Subsection (f) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
. . .
(p) Net metering.
- 6 -
…
(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 monthly as follows:
a. Distribution facilities credit Per kWh $0.0238
$0.0256
b. Energy and demand credit Per kWh $0.0632
$0.0634
(6) TOU rates, for customer-generators participating in a qualifying
"time-of-use" (TOU) rate study, 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 study rates under Subsection (s)
of this Section. The energy produced by the customer-generator shall be credited to
the customer monthly as follows:
a. Energy and demand credit – summer season billing months
1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1968 $
2. Off-Peak Per kWh $0.0412 $
b. Energy and demand credit – non-summer season billing months
1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1632 $
2. Off-Peak Per kWh $0.0395 $
. . .
(r) Net metering—community solar projects.
. . .
(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 method used to
measure energy produced and issue credits under this Section shall be identical for
customers participating in third-party administered and City low-income
community solar projects. The energy produced by the customer's portion of the
qualifying facility shall be credited to the customer monthly as follows:
- 7 -
1. Distribution facilities credit Per kWh $0.0119
$0.0128
2. Energy and demand credit Per kWh $0.0632
$0.0634
(s) Time of Use (TOU) Pilot Study.
(1) Objective. The City has identified potential benefits available through
time-of-use (TOU) based electric service rates, including encouraging reduced
energy consumption and equitably shifting energy costs to customers who use more
energy. In order to study these benefits, Fort Collins Utilities shall conduct a
temporary pilot project beginning with the billing cycle commencing on or after
October 1, 2015, and concluding after twelve (12) full billing cycles.
(2) Scope. The project shall include six thousand residential energy service
(Schedule R) customers selected at random. Customers selected at random will be
notified and given a one-time opportunity to "opt-out" of participation in the
project. Customers who do not opt-out will be assigned, as determined by the
Executive Director, to one of the two pilot rates described in Subsections (s)(4)
(pilot TOU rate) and (s)(5) (pilot TOU with energy efficiency tier rate), or
monitored on their existing residential energy service tiered rate, as a control group.
(3) Best-bill guarantee. Customers participating in the pilot project for the full
twelve (12) billing cycle period will be eligible for the following best-bill
guarantee: the total energy costs paid by each customer under either of the pilot
rates for the twelve full billing cycles shall be compared with the energy costs such
customer would have paid under the base residential energy service tiered rate
during the same twelve billing cycles, and each customer shall be reimbursed (by
issuance of a billing credit or otherwise, as determined by the Executive Director)
for the amount by which the total energy costs paid exceed the amount that would
have been due under the base residential energy service tiered rate for such period.
Each customer who pays total energy costs under either of the pilot rates during the
twelve full billing cycles of the project that are less than the energy costs such
customer would have paid under the base residential energy service tiered rate shall
retain those savings.
(4) Pilot TOU rate. Customers assigned to this rate during the pilot study shall
pay monthly rates under this sub-schedule equal to the sum of the following
charges:
a. Fixed Charge Per account $5.07 $
b. Distribution facilities charge Per kWh $0.0238 $
c. Energy and demand charge
1. Summer. During the summer season billing months of May, June, July and August, and
September
- 8 -
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1968 $
Per kWh $0.0412 $
2. Non-summer. During the non-summer season billing months of January through April and
October through December.
(a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1632 $
Per kWh $0.0395 $
d. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
(5) Pilot TOU with energy efficiency tier rate. Customers assigned to this rate
during the pilot study shall pay monthly rates under this sub-schedule equal to the
sum of the following charges:
a. Fixed Charge Per account $5.07 $
b. Distribution facilities charge Per kWh $0.0194 $
c. Energy and demand charge
1. Summer. During the summer season billing months of May, June, July, August, and
September
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1968 $
Per kWh $0.0412 $
2. Non-summer. During the non-summer season billing months of January through April and
October through December.
(a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1632 $
Per kWh $0.0395 $
d. Energy efficiency tier charge, per kilowatt hour for total
consumption over 700 kWh in a billing month (regardless of on-peak or
off-peak)
Per kWh $0.0163 $
e. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
Section 3. That Sections 26-465 (c) through (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 shall be the sum of the following charges:
- 9 -
(1) Fixed Charge Per account $5.07
$5.79
(2) Demand charge Per kW $2.36
$2.44
(3) Distribution facilities charge Per kWh $0.0211
$0.0228
(4) Energy charge
a. Summer season billing months of June, July and August
b. Non-summer season billing months of January through May and
September through December
Per kWh $0.0435
$0.0443
Per kWh $0.0418
$0.0425
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) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
(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) Monthly standby distribution charge:
Contracted standby service, this charge shall be in lieu
of the distribution facilities charge. Per kW $2.33 $2.11
- 10 -
. . .
(q) Net metering.
. . .
(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 monthly as follows:
a. Distribution facilities credit Per kWh $0.0238
$0.0256
b. Energy and demand credit Per kWh $0.0632
$0.0634
(r) Net metering-community solar projects.
. . .
(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 method used to measure
energy produced and issue credits under this Section shall be identical for
customers participating in third-party administered and City low-income
community solar projects. The energy produced by the customer's portion of the
qualifying facility shall be credited to the customer monthly as follows:
1. Distribution facilities credit Per kWh $0.0119
$0.0128
2. Energy and demand credit Per kWh $0.0632
$0.0634
Section 4. That Sections 26-466 (c) through (e), (q), and (r) of the Code of the City of
Fort Collins are hereby amended to read as follows:
Sec. 26-466. General service, schedule GS.
For all metered kilowatts in excess of the contracted
amount Per kW $6.99 $6.33
- 11 -
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
1. Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $ 3.26
$3.60
b. Single-phase, above two-hundred-ampere service Per account $ 9.60
$10.61
c. Three-phase, two-hundred-ampere service Per account $ 4.96
$5.48
d. Three-phase, above two-hundred-ampere service Per account $11.74
$12.98
2. Demand charge
a. Summer season billing months of June, July, and August Per kWh $0.0289
$0.0268
b. Non-summer season billing months of January through May
and September through December
Per kWh $0.0156
$0.0164
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 kWh $0.0227
$0.0244
4. Energy charge
a. Summer season billing months of June, July, and August Per kWh $0.0435
$0.0443
b. Non-summer season billing months of January through May
and September through December
Per kWh $0.0418
$0.0425
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. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this
Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). The utility may establish
and offer voluntary programs designed to increase and enhance the use of energy generated
- 12 -
by renewable energy resources in support of Council-adopted policy applicable to the
utility.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
. . .
(q) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0435
$0.0443
(r) Net metering-community solar projects.
. . .
(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
monthly as follows:
1. Distribution facilities credit Per kWh $0.0114
$0.0122
2. Energy and demand credit Per kWh $0.0435
$0.0443
- 13 -
. . .
Section 5. That Sections 26-467 (c) through (f) and (r) 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 shall be the sum of the following
charges:
1. Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $ 3.26
$3.60
b. Single-phase, above two-hundred-ampere service Per account $ 9.60
$10.61
c. Three-phase, two-hundred-ampere service Per account $ 4.96
$5.48
d. Three-phase, above two-hundred-ampere service Per account $11.74
$12.98
2. Demand charge
a. Summer season billing months of June, July, and August Per kW $7.86
$8.28
b. Non-summer season billing months of January through
May and September through December
Per kW $4.57
$4.74
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 kwh $0.0176
$0.0185
4. Energy charge
a. Summer season billing months of June, July, and August Per kWh $0.0435
$0.0443
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0418
$0.0425
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.
- 14 -
5. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
(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) Monthly standby distribution charge
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$3.82
$3.83
For all metered kilowatts in excess of the contracted amount Per kW $11.45
$11.50
. . .
(r) Net metering.
. . .
(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 rate as outlined in Subsection
- 15 -
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0435
$0.0443
. . .
Section 6. That Sections 26-468 (c) through (g), and (u) 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 shall be the sum of the following
charges:
(1) Fixed Charge Per account
$9.45
$9.08
An additional charge may be assessed if telephone
communication service is not provided by the customer. Per account $40.00
(2) Coincident demand charge
a. summer season billing months of June, July and August Per kW $11.68
b. non-summer season billing months of January through
May and September through December Per kW
$8.15
$8.90
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 kW $5.90
$6.25
(4) Energy charge
a. Summer season billing months of June, July, and August Per kWh $0.0435
$0.0443
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0418
$0.0425
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.
- 16 -
(5) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
(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. Monthly standby distribution charge shall be the sum of the
following charges:
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$4.72
$4.92
For all metered kilowatts in excess of the contracted amount Per kW $14.16
$14.77
. . .
(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) Monthly charge shall be the sum of the following charges:
Contracted backup capacity per month Per kW $0.86
$1.01
Metered kilowatts in excess of the contracted amount Per kW $2.58
$3.03
(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.
. . .
(u) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0435
$0.0443
Section 7. That Sections 26-469 (c) through (g) and (v) 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 shall be the sum of the following
charges:
(1) Fixed Charge Per account
$15.24
$15.56
a. Additional charge for each additional metering point Per account $9.50
b. An additional charge may be assessed if telephone
communication service is not provided by the customer. Per account $40.00
(2) Coincident demand charge
- 18 -
a. summer season billing months of June, July and August Per kW $11.51
b. non-summer season billing months of January through
May and September through December Per kW
$8.04
$8.77
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
a. First seven hundred fifty (750) kilowatts Per kW $5.85
$6.00
b. All additional kilowatts Per kW $3.48
$3.55
(4) Energy charge
a. Summer season billing months of June, July, and August Per kWh $0.0428
$0.0436
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0412
$0.0419
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) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
- 19 -
(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. Monthly standby distribution charges shall be paid in the following
amounts
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$3.52
$3.41
For all metered kilowatts in excess of the contracted amount Per kW $10.56
$10.24
. . .
(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 at the following:
(1) Monthly charge.
. . .
(v) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0428
$0.0436
Contracted backup capacity per month Per kW $0.64
$0.70
Metered kilowatts in excess of the contracted amount Per kW $1.92
$2.10
- 20 -
Section 8. That Sections 26-470 (c) through (e), and (s) of the Code of the City of Fort
Collins are hereby amended to read as follows:
Sec. 26-470. Substation service, schedule SS.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
(1) Fixed Charge Per account
$39.47
$35.38
(2) Coincident demand charge
a. summer season billing months of June, July and August Per kW $11.33
b. non-summer season billing months of January through
May and September through December Per kW
$7.91
$8.64
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) Distribution facilities charge Per kW $2.50
$2.87
(4) Energy charge
a. Summer season billing months of June, July, and August Per kWh $0.0422
$0.0430
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0405
$0.0412
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) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 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.
- 21 -
Per kWh $0.024
$0.025
(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 at the following rates:
(1) Standby distribution charge.
a. Monthly standby distribution charge:
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$2.22
$2.55
For all metered kilowatts in excess of the contracted amount Per kW $6.66
$7.65
. . .
(s) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0422
$0.0430
Section 9. That the amendments herein are effective and shall go into effect as
follows:
a. Amended GS50 & GS750 schedule rates shall apply to all electricity used
on or after January 1, 2017;
b. All other amended schedule rates shall apply to all bills issued on the basis
of meter readings on or after January 1, 2017.
- 22 -
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
OPTION 2
(Increase in Fixed Monthly Charge Only)
ORDINANCE NO. 122, 2016
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 rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; 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 3.0%
in 2017; and
WHEREAS, the increased wholesale power cost will require an average 2.2% rate
increase and increased local distribution costs will require an additional average 1.25% rate
increase, for a total City electric rates increase in 2017 of 3.45% in order to remain consistent
with Article XII, Section 6, of the City Charter; and
WHEREAS, the proposed rate increase will vary by customer class based on the cost of
service to each class; and
WHEREAS, in addition to adjusting the electric rates in the City Code, Utilities staff has
identified formatting and maintenance updates to Chapter 26 of the City Code necessary to
improve the clarity with which electric rates are stated; and
WHEREAS, the Energy Board considered the proposed electric rates, fees, and charges,
and language clarifications for 2017 at its October 6, 2016 regular meeting and provided a
recommendation of approval to City Council; and
-2-
WHEREAS, the City Manager and staff have recommended to the City Council the
following electric rate adjustments and City Code rate language clarifications for all electricity
used by GS50 and GS750 rate class customers on or after January 1, 2017, and for all other
customer classes for all billings issued with meter readings on or after January 1, 2017; 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 the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Sections 26-464 (c)-(f), (p), (r) and (s) 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 shall be the sum of the
following charges:
(1) Fixed Charge Per account $5.07
$6.94
(2) Distribution facilities charge Per kWh $0.0238
(3) Energy and demand charge
a. Summer. 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.
1. Tier 1 - for the first five hundred (500) kilowatt hours
per month
2. Tier 2 - for the next five hundred (500) kilowatt hours
per month
3. Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0632
$0.0634
Per kWh $0.0804
$0.0807
Per kWh $0.1146
$0.1150
b. Non-summer. During the non-summer season billing months of January through May
and September through December.
1. Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
2. Tier 2 - for the next five hundred (500) kilowatt hours
Per kWh $0.0570
$0.0583
Per kWh $0.0611
-3-
per month, per kWh
3. Tier 3 - for all additional kilowatt hours per month, per
kWh
$0.0625
Per kWh $0.0703
$0.0719
(4) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this
Section
6 percent
(d) Medical assistance program.
. . .
(3) The discounted monthly rates for customers with electrical durable
medical equipment only shall be the sum of the following charges:
a. Fixed Charge Per account $5.07
$6.94
b. Distribution facilities charge Per kWh $0.0238
c. Energy and demand charge
1. Summer. 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.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month
(c) Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0357
$0.0358
Per kWh $0.0804
$0.0807
Per kWh $0.1146
$0.1150
2. Non-summer. During the non-summer season billing months of January through May
and September through December.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
(c) Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0311
$0.0318
Per kWh
$0.0611
$0.0625
Per kWh $0.0703
$0.0719
d. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this
Section
6 percent
-4-
(4) The discounted monthly rates for customers with medical needs requiring
air conditioning only shall be the sum of the following charges:
a. Fixed Charge Per account $5.07
$6.94
b. Distribution facilities charge Per kWh $0.0238
c. Energy and demand charge
1. Summer. 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.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month
(c) Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0350
$0.0351
Per kWh $0.0444
$0.0446
Per kWh $0.1146
$0.1150
2. Non-summer. During the non-summer season billing months of January through
May and September through December.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
(c) Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0570
$0.0583
Per kWh
$0.0611
$0.0625
Per kWh $0.0703
$0.0719
d. Payment in lieu of taxes (PILOT) and franchise.
A charge of all monthly service charges billed pursuant to this Section
6 percent
(5) The discounted monthly rates for customers with electrical durable
medical equipment and medical needs requiring air conditioning shall be the sum
of the following charges:
a. Fixed Charge Per account $5.07
$6.94
b. Distribution facilities charge Per kWh $0.0238
c. Energy and demand charge
1. Summer. 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.
-5-
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month
(c) Tier 3 - for all additional kilowatt hours per month
Per kWh $0.0229
Per kWh $0.0291
$0.0292
Per kWh $0.1146
$0.1150
2. Non-summer. During the non-summer season billing months of January through
May and September through December.
(a) Tier 1 - for the first five hundred (500) kilowatt hours
per month, per kWh
(b) Tier 2 - for the next five hundred (500) kilowatt hours
per month, per kWh
(c) Tier 3 - for all additional kilowatt hours per month, per
kWh
Per kWh $0.0311
$0.0318
Per kWh
$0.0611
$0.0625
Per kWh $0.0703
$0.0719
a. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this
Section
6 percent
. . .
(e) 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 the premium per kilowatt hour set forth in this Subsection (e). 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.
Per kWh $0.024
$0.025
(f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this
Subsection (f) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
. . .
(p) Net metering.
. . .
-6-
(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 monthly as follows:
a. Distribution facilities credit Per kWh $0.0238
b. Energy and demand credit Per kWh $0.0632
$0.0634
(6) TOU rates, for customer-generators participating in a qualifying "time-of-
use" (TOU) rate study, 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 study rates under Subsection (s) of this Section.
The energy produced by the customer-generator shall be credited to the customer
monthly as follows:
a. Energy and demand credit – summer season billing months
1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1968 $
2. Off-Peak Per kWh $0.0412 $
b. Energy and demand credit – non-summer season billing months
1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1632 $
2. Off-Peak Per kWh $0.0395 $
. . .
(r) Net metering-community solar projects.
. . .
(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
method used to measure energy produced and issue credits under this Section
shall be identical for customers participating in third-party administered and City
low-income community solar projects. The energy produced by the customer's
portion of the qualifying facility shall be credited to the customer monthly as
follows:
-7-
1. Distribution facilities credit Per kWh $0.0119
2. Energy and demand credit Per kWh $0.0632
$0.0634
(s) Time of Use (TOU) Pilot Study.
(1) Objective. The City has identified potential benefits available through
time-of-use (TOU) based electric service rates, including encouraging reduced
energy consumption and equitably shifting energy costs to customers who use
more energy. In order to study these benefits, Fort Collins Utilities shall conduct a
temporary pilot project beginning with the billing cycle commencing on or after
October 1, 2015, and concluding after twelve (12) full billing cycles.
(2) Scope. The project shall include six thousand residential energy service
(Schedule R) customers selected at random. Customers selected at random will be
notified and given a one-time opportunity to "opt-out" of participation in the
project. Customers who do not opt-out will be assigned, as determined by the
Executive Director, to one of the two pilot rates described in Subsections (s)(4)
(pilot TOU rate) and (s)(5) (pilot TOU with energy efficiency tier rate), or
monitored on their existing residential energy service tiered rate, as a control
group.
(3) Best-bill guarantee. Customers participating in the pilot project for the full
twelve (12) billing cycle period will be eligible for the following best-bill
guarantee: the total energy costs paid by each customer under either of the pilot
rates for the twelve full billing cycles shall be compared with the energy costs
such customer would have paid under the base residential energy service tiered
rate during the same twelve billing cycles, and each customer shall be reimbursed
(by issuance of a billing credit or otherwise, as determined by the Executive
Director) for the amount by which the total energy costs paid exceed the amount
that would have been due under the base residential energy service tiered rate for
such period. Each customer who pays total energy costs under either of the pilot
rates during the twelve full billing cycles of the project that are less than the
energy costs such customer would have paid under the base residential energy
service tiered rate shall retain those savings.
(4) Pilot TOU rate. Customers assigned to this rate during the pilot study shall
pay monthly rates under this sub-schedule equal to the sum of the following
charges:
a. Fixed Charge Per account $5.07 $
b. Distribution facilities charge Per kWh $0.0238 $
c. Energy and demand charge
1. Summer. During the summer season billing months of May, June, July and August, and
September
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1968 $
-8-
(b) Off-Peak Per kWh $0.0412 $
2. Non-summer. During the non-summer season billing months of January through April and
October through December.
(a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1632 $
Per kWh $0.0395 $
d. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
(5) Pilot TOU with energy efficiency tier rate. Customers assigned to this rate
during the pilot study shall pay monthly rates under this sub-schedule equal to the
sum of the following charges:
a. Fixed Charge Per account $5.07 $
b. Distribution facilities charge Per kWh $0.0194 $
c. Energy and demand charge
1. Summer. During the summer season billing months of May, June, July, August, and
September
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1968 $
Per kWh $0.0412 $
2. Non-summer. During the non-summer season billing months of January through April and
October through December.
(a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays)
(b) Off-Peak
Per kWh $0.1632 $
Per kWh $0.0395 $
d. Energy efficiency tier charge, per kilowatt hour for total
consumption over 700 kWh in a billing month (regardless of on-peak or
off-peak)
Per kWh $0.0163 $
e. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
Section 3. That Sections 26-465 (c) through (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 shall be the sum of the following charges:
-9-
(1) Fixed Charge Per account $5.07
$6.94
(2) Demand charge Per kW $2.36
$2.44
(3) Distribution facilities charge Per kWh $0.0211
(4) Energy charge
a. Summer season billing months of June, July and August
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0435
$0.0443
Per kWh $0.0418
$0.0425
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) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
(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) Monthly standby distribution charge:
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$2.33
$2.11
-10-
. . .
(q) Net metering.
. . .
(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 monthly as follows:
a. Distribution facilities credit Per kWh $0.0238
b. Energy and demand credit Per kWh $0.0632
$0.0634
(r) Net metering-community solar projects.
. . .
(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 method used
to measure energy produced and issue credits under this Section shall be identical
for customers participating in third-party administered and City low-income
community solar projects. The energy produced by the customer's portion of the
qualifying facility shall be credited to the customer monthly as follows:
1. Distribution facilities credit Per kWh $0.0119
2. Energy and demand credit Per kWh $0.0632
$0.0634
Section 4. That Sections 26-465 (c)-(e), (q), and (r) of the Code of the City of Fort
Collins are hereby amended to read as follows:
Sec. 26-466. General service, schedule GS.
. . .
For all metered kilowatts in excess of the contracted amount Per kW $6.99
$6.33
-11-
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the
following charges:
1. Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $ 3.26
$3.60
b. Single-phase, above two-hundred-ampere service Per account $ 9.60
$10.61
c. Three-phase, two-hundred-ampere service Per account $ 4.96
$5.48
d. Three-phase, above two-hundred-ampere service Per account $11.74
$12.98
2. Demand charge
a. Summer season billing months of June, July, and
August
Per kWh $0.0289
$0.0268
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0156
$0.0164
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 kWh $0.0227
$0.0244
4. Energy charge
a. Summer season billing months of June, July, and
August
Per kWh $0.0435
$0.0443
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0418
$0.0425
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. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). The utility may establish
and offer voluntary programs designed to increase and enhance the use of energy
-12-
generated by renewable energy resources in support of Council-adopted policy applicable
to the utility.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in
this Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
. . .
(q) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0435
$0.0443
(r) Net metering-community solar projects.
. . .
(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 monthly as follows:
1. Distribution facilities credit Per kWh $0.0114
$0.0122
2. Energy and demand credit Per kWh $0.0435
$0.0443
-13-
. . .
Section 5. That Sections 26-467 (c) through (f) and (r) 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 shall be the sum of the
following charges:
1. Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $ 3.26
$3.60
b. Single-phase, above two-hundred-ampere service Per account $ 9.60
$10.61
c. Three-phase, two-hundred-ampere service Per account $ 4.96
$5.48
d. Three-phase, above two-hundred-ampere service Per account $11.74
$12.98
2. Demand charge
a. Summer season billing months of June, July, and
August
Per kW $7.86
$8.28
b. Non-summer season billing months of January through
May and September through December
Per kW $4.57
$4.74
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 kwh $0.0176
$0.0185
4. Energy charge
a. Summer season billing months of June, July, and
August
Per kWh $0.0435
$0.0443
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0418
$0.0425
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.
-14-
5. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
(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) Monthly standby distribution charge
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$3.82
$3.83
For all metered kilowatts in excess of the contracted amount Per kW $11.45
$11.50
. . .
(r) Net metering.
. . .
(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 rate as outlined in Subsection
-15-
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0435
$0.0443
Section 6. That Sections 26-468 (c) through (g), and (u) 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 shall be the sum of the
following charges:
(1) Fixed Charge Per account
$9.45
$9.08
An additional charge may be assessed if telephone
communication service is not provided by the customer. Per account $40.00
(2) Coincident demand charge
a. summer season billing months of June, July and August Per kW $11.68
b. non-summer season billing months of January through
May and September through December Per kW
$8.15
$8.90
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 kW $5.90
$6.25
(4) Energy charge
a. Summer season billing months of June, July, and August Per kWh $0.0435
$0.0443
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0418
$0.0425
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.
-16-
(5) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
(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. Monthly standby distribution charge shall be the sum of the
following charges:
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$4.72
$4.92
For all metered kilowatts in excess of the contracted amount Per kW $14.16
$14.77
. . .
(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) Monthly charge shall be the sum of the following charges:
Contracted backup capacity per month Per kW $0.86
$1.01
Metered kilowatts in excess of the contracted amount Per kW $2.58
$3.03
(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.
. . .
(u) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0435
$0.0443
Section 7. That Sections 26-469 (c) through (g) and (v) 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 shall be the sum of the
following charges:
(1) Fixed Charge Per account
$15.24
$15.56
a. Additional charge for each additional metering point Per account $9.50
b. An additional charge may be assessed if telephone
communication service is not provided by the customer. Per account $40.00
(2) Coincident demand charge
-18-
a. summer season billing months of June, July and August Per kW $11.51
b. non-summer season billing months of January through
May and September through December Per kW
$8.04
$8.77
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
a. First seven hundred fifty (750) kilowatts Per kW $5.85
$6.00
b. All additional kilowatts Per kW $3.48
$3.55
(4) Energy charge
a. Summer season billing months of June, July, and
August
Per kWh $0.0428
$0.0436
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0412
$0.0419
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) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 the premium per kilowatt hour set forth in this Subsection (d). 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.
Per kWh $0.024
$0.025
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Per kW $2.00
$2.09
-19-
(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. Monthly standby distribution charges shall be paid in the following
amounts
Contracted standby service, this charge shall be in lieu of the distribution
facilities charge. Per kW
$3.52
$3.41
For all metered kilowatts in excess of the contracted amount Per kW $10.56
$10.24
. . .
(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 at the following:
(1) Monthly charge.
. . .
(v) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0428
$0.0436
Contracted backup capacity per month Per kW $0.64
$0.70
Metered kilowatts in excess of the contracted amount Per kW $1.92
$2.10
-20-
Section 8. That Sections 26-470 (c) through (e), and (s) of the Code of the City of
Fort Collins are hereby amended to read as follows:
Sec. 26-470. Substation service, schedule SS.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the
following charges:
(1) Fixed Charge Per account
$39.47
$35.38
(2) Coincident demand charge
a. summer season billing months of June, July and August Per kW $11.33
b. non-summer season billing months of January through
May and September through December Per kW
$7.91
$8.64
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) Distribution facilities charge Per kW $2.50
$2.87
(4) Energy charge
a. Summer season billing months of June, July, and
August
Per kWh $0.0422
$0.0430
b. Non-summer season billing months of January through
May and September through December
Per kWh $0.0405
$0.0412
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) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to
this Section
6 percent
(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 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.
-21-
Per kWh $0.024
$0.025
(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 at the following
rates:
(1) Standby distribution charge.
a. Monthly standby distribution charge:
Contracted standby service, this charge shall be in lieu of the
distribution facilities charge. Per kW
$2.22
$2.55
For all metered kilowatts in excess of the contracted amount Per kW $6.66
$7.65
. . .
(s) Net metering.
. . .
(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 rate as outlined in Subsection
(c) of this Section. The energy produced by the customer-generator shall be
credited to the customer monthly as follows:
a. Summer season energy credit Per kWh $0.0422
$0.0430
Section 9. That the amendments herein are effective and shall go into effect as
follows:
a. Amended GS50 & GS750 schedule rates shall apply to all electricity used
on or after January 1, 2017;
b. All other amended schedule rates shall apply to all bills issued on the basis
of meter readings on or after January 1, 2017.
-22-
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
OPTION 1 (3% increase)
ORDINANCE NO. 123, 2016
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, FEES, AND CHARGES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, 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 as set forth
therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; and
WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a
utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-126, 26-127 and 26-129 concern various water-
related rates, fees, and charges; and
WHEREAS, City Code Section 26-118 requires that the City Manager to analyze the
operating and financial records of the utility during each calendar year and recommend to the
City Council user rates or adjustments to be in effect for the following year; and
WHEREAS, the City Manager and City staff have recommended to the City Council
adjustment of the water-related rates, fees, and charges as set forth herein to be effective January
1, 2017; and
WHEREAS, the rate increase for water set forth herein is 3% for all customer classes;
and
WHEREAS, the Water Board considered the proposed water-related rates, fees, and
charges adjustments for 2017 at its meeting on October 20, 2016 and recommended approval of
the proposed adjustments by a unanimous vote; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth
herein.
-2-
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. 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 with a planned meter size
greater than one (1) inch, no flat unmetered water service will be provided. For
residential and nonresidential premises under construction with a planned meter size of
one (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 $26.91 $27.72
1-inch construction service, flat charge per month 51.31 $52.85
Section 3. That Section 26-127 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-127. - Schedule B, meter rates.
(a) Residential rates.
(1) Residential customers with one (1) dwelling unit shall pay the sum of the
following changes:
a. Base monthly charge for residential customers with one (1) dwelling unit $15.41 $15.87
b. Quantity monthly charge for residential customers with one (1) dwelling
unit
Tier 1 - For the first seven thousand (7,000) gallons used per month, per
one thousand (1,000) gallons
$2.386 $2.458
Tier 2 - For the next six thousand (6,000) gallons used per month, per one
thousand (1,000) gallons
$2.742 $2.824
Tier 3 - For all additional gallons used per month, per one thousand
(1,000) gallons
$3.154 $3.249
(2) Residential customers with two (2) dwelling units shall pay the sum of the
following charges:
a. Base monthly charge for residential customers with two (2) dwelling units $16.31 $16.80
-3-
b. Quantity monthly charge for residential customers with two (2) dwelling
units
Tier 1 - For the first nine thousand (9,000) gallons used per month, per one
thousand (1,000) gallons
$2.071 $2.133
Tier 2 - For the next four thousand (4,000) gallons used per month, per
one thousand (1,000) gallons
$2.380 $2.451
Tier 3 - For all additional gallons used per month, per one thousand
(1,000) gallons
$2.739 $2.821
(3) Residential customers with more than two (2) dwelling units shall pay the
sum of the following charges:
a. Base monthly charge for residential customers with more than two (2)
dwelling units
First dwelling unit $11.72 $12.07
Second and each additional dwelling unit $3.90 $4.02
b. Quantity monthly charge for residential customers with more than two
(2) dwelling units
Winter - per one thousand (1,000) gallons used in the winter season months
of November through April
$1.703 $1.754
Summer - per one thousand (1,000) gallons used in the summer season
months of May through October
$2.129 $2.193
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, except for special users as described in
Subsection 26-127(c) below, customers shall pay a base monthly charge based on
meter size as follows:
Meter Size (inches) Monthly Base Charge
¾ $13.63 $14.04
1 38.03 $39.17
1½ 103.41 $106.51
2 155.85 $160.53
3 237.70 $244.83
4 373.17 $384.37
6 723.91 $745.63
8 1,278.85 $1317.22
-4-
(2) Quantity charges. Nonresidential customers shall pay monthly charges as
follows:
Winter - per one thousand (1,000) gallons used in the winter season
months of November through April
$1.897 $1.954
Summer - per one thousand (1,000) gallons used in the summer season
months of May through October
$2.370 $2.441
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.
(3) Charges for excess use. Nonresidential customers shall also pay monthly
water use charges in excess of the amounts specified in the following table:
Winter - per one thousand (1,000) gallons used in the winter
season months of November through April
$2.725 $2.807
Summer - per one thousand (1,000) gallons used in the summer
season months of May through October
$3.408 $3.510
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.
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
(c) High volume industrial rates. High volume industrial rates apply to any customer
with an average daily demand in excess of two million (2,000,000) gallons per day. The
specific rate for any qualifying customer shall be based upon the applicable peaking
factor for that customer as follows:
Peaking Factor
Monthly Charge per
Thousand Gallons
1.00—1.09 $1.490 $1.53
1.10—1.19 1.540 $1.59
-5-
1.20—1.29 1.590 $1.64
1.30—1.39 1.640 $1.69
1.40—1.49 1.690 $1.74
1.50—1.59 1.740 $1.79
1.60—1.69 1.790 $1.84
1.70—1.79 1.840 $1.90
1.80—1.89 1.890 $1.95
1.90—1.99 1.950 $2.01
> 2.00 2.000 $2.06
. . .
Section 4. That the modifications set forth above shall be effective for meter readings
on or after January 1, 2017, and in the case of fees not based on meter readings, shall be effective
for all fees paid on or after January 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
OPTION 2 (5% increase)
ORDINANCE NO. 123, 2016
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, FEES, AND CHARGES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, 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 as set forth
therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; and
WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a
utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-126, 26-127 and 26-129 concern various water-
related rates, fees, and charges; and
WHEREAS, City Code Section 26-118 requires that the City Manager analyze the
operating and financial records of the utility during each calendar year and recommend to the
City Council user rates or adjustments to be in effect for the following year; and
WHEREAS, the City Manager and City staff have recommended to the City Council
adjustment of the water-related rates, fees, and charges as set forth herein to be effective January
1, 2017; and
WHEREAS, the rate increase for water set forth herein is 5% for all customer classes;
and
WHEREAS, the Water Board considered the proposed water-related rates, fees, and
charges adjustments for 2017 at its meeting on October 20, 2016 and recommended approval of
the proposed adjustments by a unanimous vote; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth
herein.
-2-
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. 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 with a planned meter size
greater than one (1) inch, no flat unmetered water service will be provided. For
residential and nonresidential premises under construction with a planned meter size of
one (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 $26.91 $28.26
1-inch construction service, flat charge per month 51.31 $53.88
Section 3. That Section 26-127 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-127. - Schedule B, meter rates.
(a) Residential rates.
(1) Residential customers with one (1) dwelling unit shall pay the sum of the
following changes:
a. Base monthly charge for residential customers with one (1) dwelling unit $15.41 $16.18
b. Quantity monthly charge for residential customers with one (1) dwelling
unit
Tier 1 - For the first seven thousand (7,000) gallons used per month, per
one thousand (1,000) gallons
$2.386 $2.505
Tier 2 - For the next six thousand (6,000) gallons used per month, per one
thousand (1,000) gallons
$2.742 $2.879
Tier 3 - For all additional gallons used per month, per one thousand
(1,000) gallons
$3.154 $3.312
(2) Residential customers with two (2) dwelling units shall pay the sum of the
following charges:
a. Base monthly charge for residential customers with two (2) dwelling units $16.31 $17.13
-3-
b. Quantity monthly charge for residential customers with two (2) dwelling
units
Tier 1 - For the first nine thousand (9,000) gallons used per month, per one
thousand (1,000) gallons
$2.071 $2.175
Tier 2 - For the next four thousand (4,000) gallons used per month, per
one thousand (1,000) gallons
$2.380 $2.499
Tier 3 - For all additional gallons used per month, per one thousand
(1,000) gallons
$2.739 $2.876
(3) Residential customers with more than two (2) dwelling units shall pay the
sum of the following charges:
a. Base monthly charge for residential customers with more than two (2)
dwelling units
First dwelling unit $11.72 $12.31
Second and each additional dwelling unit $3.90 $4.10
b. Quantity monthly charge for residential customers with more than two
(2) dwelling units
Winter - per one thousand (1,000) gallons used in the winter season months
of November through April
$1.703 $1.788
Summer - per one thousand (1,000) gallons used in the summer season
months of May through October
$2.129 $2.235
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, except for special users as described in
Subsection 26-127(c) below, customers shall pay a base monthly charge based on
meter size as follows:
Meter Size (inches) Monthly Base Charge
¾ $13.63 $14.31
1 38.03 $39.93
1½ 103.41 $108.58
2 155.85 $163.64
3 237.70 $249.59
4 373.17 $391.83
6 723.91 $760.11
8 1,278.85 $1342.79
-4-
(2) Quantity charges. Nonresidential customers shall pay monthly charges as
follows:
Winter - per one thousand (1,000) gallons used in the winter season
months of November through April
$1.897 $1.992
Summer - per one thousand (1,000) gallons used in the summer season
months of May through October
$2.370 $2.489
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.
(3) Charges for excess use. Nonresidential customers shall also pay monthly
water use charges in excess of the amounts specified in the following table:
Winter - per one thousand (1,000) gallons used in the winter
season months of November through April
$2.725 $2.861
Summer - per one thousand (1,000) gallons used in the summer
season months of May through October
$3.408 $3.578
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.
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
(c) High volume industrial rates. High volume industrial rates apply to any customer
with an average daily demand in excess of two million (2,000,000) gallons per day. The
specific rate for any qualifying customer shall be based upon the applicable peaking
factor for that customer as follows:
Peaking Factor
Monthly Charge per Thousand
Gallons
1.00—1.09 $1.490 $1.56
1.10—1.19 1.540 $1.62
-5-
1.20—1.29 1.590 $1.67
1.30—1.39 1.640 $1.72
1.40—1.49 1.690 $1.77
1.50—1.59 1.740 $1.83
1.60—1.69 1.790 $1.88
1.70—1.79 1.840 $1.93
1.80—1.89 1.890 $1.98
1.90—1.99 1.950 $2.05
> 2.00 2.000 $2.10
. . .
Section 4. That the modifications set forth above shall be effective for meter readings
on or after January 1, 2017, and in the case of fees not based on meter readings, shall be effective
for all fees paid on or after January 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 124, 2016
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
Charter of the City of Fort Collins, 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 as set forth
therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; and
WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as
a utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-280 and 26-282 concern various wastewater-related
rates, fees, and charges; and
WHEREAS, City Code Section 26-277 requires that the City Manager analyze the
operating and financial records of the utility during each calendar year and recommend to the
City Council user rates or adjustments to be in effect for the following year; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective
January 1, 2017; and
WHEREAS, the rate increase for wastewater set forth herein is 3% for all customer
classes; and
WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and
charges adjustments for 2017 at its meeting on October 20, 2016 and recommended approval of
the proposed adjustments by a unanimous vote; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth
herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
-2-
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. 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)
Per month $38.31 $39.46
Single-family residential user
(metered water use)
1. Per month $17.12 $17.63
2. Plus, per 1,000 gallons per month $3.326 $3.426
Note:
1. For single family customers who have not yet established a winter
quarter water use at the service address, a system average of 4,800
gallons per month shall be billed.
2. After establishment of a winter quarter water use at the service
address, the monthly amount billed shall be based on a minimum of
3,000 gallons per month.
B
Duplex (two-family) residential
users (flat rate)
Per month $52.48 $54.05
Duplex (two-family) residential
users (metered water use)
Per month $19.44 $20.02
Or, per 1,000 gallons per month, whichever is
greater, to be calculated on a monthly basis
$2.918 $3.006
Note:
1. For duplex customers who have not yet established a winter quarter
water use at the service address, a system average 7,200 gallons shall
be billed.
2. After establishment of a winter quarter use at the service address,
the monthly amount billed shall be based on a minimum of 4,000
gallons per month.
C
Multi-family residential user
(more than two dwelling units
including mobile home parks)
1. Base charge per month per dwelling unit
served
$2.53 $2.61
2. Plus, per 1,000 gallons per month $3.222 $3.319
-3-
and winter quarter based
nonresidential user
Note:
1. For multi-family customers who have not yet 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.
2. After establishment of a water quarter use at the service address,
the monthly amount billed shall be per 1,000 gallons of winter quarter
water use, calculated on a monthly basis.
D Minor nonresidential user
1. Per 1,000 gallons of water use, measured
sewage flow or winter quarter water use,
whichever is applicable, to be calculated on a
monthly basis, plus the following applicable base
charge:
$3.039 $3.130
2. Size of water meter (inches) Base charge
¾ or smaller $8.77 $9.03
1 $20.24 $20.85
1½ $40.74 $41.96
2 $69.71 $71.80
3 $111.38 $114.72
4 $175.90 $181.18
6 $771.12 $794.25
8 $890.36 $917.07
E and F
Intermediate nonresidential user
and Significant industrial user
User shall pay an amount calculated to include:
1. Rate per 1,000 gallons of water use,
measured wastewater flow or winter quarter
water use per month, whichever is applicable;
$3.039 $3.130
2. PLUS a surcharge per million gallons for
each milligram per liter of suspended solids in
excess of 235 milligrams per liter;
$3.535 $3.641
3. PLUS a surcharge for the following:
a. per million gallons for each milligram per
liter of BOD in excess of 265 milligrams per
liter; or
$2.945 $3.033
b. per million gallons for each milligram per
liter of COD in excess of 400 milligrams per
liter; or
$1.859 $1.915
-4-
c. per million gallons for each milligram per
liter of TOC in excess of 130 milligrams per liter,
$5.503 $5.668
whichever is applicable.
The user shall pay the calculated amount based
on 1, 2 and 3 above, plus the applicable base
charge set forth below:
Size of water meter
(inches)
Base charge
¾ or smaller $8.77 $9.03
1 $20.24 $20.85
1½ $40.74 $41.96
2 $69.71 $71.80
3 $111.38 $114.72
4 $175.90 $181.18
6 $771.12 $794.25
8 $890.36 $917.07
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 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) A monthly wastewater strength surcharge shall be paid by customers located
either inside or outside the City limits in accordance with the following schedule:
Parameter Excess over (mg/l) Rate per thousand gallons
BOD 265 $0.002945 $0.003033
COD 400 $0.001859 $0.001915
TOC 130 $0.005503 $0.005668
TSS 235 $0.003535 $0.003641
. . .
-5-
Section 4. That the modifications set forth above shall be effective for meter readings
on or after January 1, 2017, and in the case of fees not based on meter readings, shall be effective
for all fees paid on or after January 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
OPTION 1 (5% increase)
ORDINANCE NO. 125, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE STORMWATER RATES, FEES, AND CHARGES
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 as set forth therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; and
WHEREAS, Article VII, Chapter 26 of the City Code establishes the stormwater utility
as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Council has adopted stormwater basin and City-wide master plans
recommending stormwater facilities necessary to provide for proper drainage and control of
flood and surface waters within the City; and
WHEREAS, in 1998, City Council adopted Ordinance No. 168, 1998, determining that
all lands within the City benefit by the installation of such stormwater facilities; and
WHEREAS, City Code Section 26-513 imposes stormwater utility fees on all parcels of
land within the City to pay for the operation, maintenance, administration and routine functions
of the existing and future City stormwater facilities established within the City; and
WHEREAS, City Code Section 26-514 sets forth the manner in which stormwater utility
fees are to be determined; and
WHEREAS, the proposed stormwater utility fee adjustment for 2017 reflects an increase
of approximately 5%; and
WHEREAS, the Water Board considered the proposed stormwater utility fee adjustments
for 2017 at its meeting on October 20, 2016, and recommended approval of the proposed
adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the scope and rate of the stormwater utility fee as set forth herein.
-2-
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-514(a)(3) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-514. - Determination of stormwater utility fee.
(a) The stormwater utility fee shall be determined as set forth in this Section, and shall be
based upon the area of each lot or parcel of land and the runoff coefficient of the lot or parcel.
For the purposes of this Section, the total lot or parcel area shall include both the actual square
footage of the lot or parcel and the square footage of open space and common areas allocated to
such lot as provided in Paragraph (4) of this Subsection. The stormwater utility fee shall recover
the costs of both operations and maintenance and a portion of capital improvements. The
Utilities Executive Director shall determine the rates that shall apply to each specific lot or parcel
of land within the guidelines herein set forth and shall establish the utility fee in accordance with
the rate together with the other factors set forth as follows:
. . .
(3) The base rate for the stormwater utility fee shall be $0.00414540.0043526 per
square foot per month for all areas of the City.
. . .
Section 3. That the modifications set forth above shall be effective for all fees
accruing on or after January 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-3-
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
OPTION 2 (3% increase)
ORDINANCE NO. 125, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE STORMWATER RATES, FEES, AND CHARGES
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 as set forth therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; and
WHEREAS, Article VII, Chapter 26 of the City Code establishes the stormwater utility
as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Council has adopted stormwater basin and City-wide master plans
recommending stormwater facilities necessary to provide for proper drainage and control of
flood and surface waters within the City; and
WHEREAS, in 1998, City Council adopted Ordinance No. 168, 1998, determining that
all lands within the City benefit by the installation of such stormwater facilities; and
WHEREAS, City Code Section 26-513 imposes stormwater utility fees on all parcels of
land within the City to pay for the operation, maintenance, administration and routine functions
of the existing and future City stormwater facilities established within the City; and
WHEREAS, City Code Section 26-514 sets forth the manner in which stormwater utility
fees are to be determined; and
WHEREAS, the proposed stormwater utility fee adjustment for 2017 reflects an increase
of approximately 3%; and
WHEREAS, the Water Board considered the proposed stormwater utility fee adjustments
for 2017 at its meeting on October 20, 2016, and recommended approval of the proposed
adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the scope and rate of the stormwater utility fee as set forth herein.
-2-
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-514(a)(3) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-514. - Determination of stormwater utility fee.
(a) The stormwater utility fee shall be determined as set forth in this Section, and shall be
based upon the area of each lot or parcel of land and the runoff coefficient of the lot or parcel.
For the purposes of this Section, the total lot or parcel area shall include both the actual square
footage of the lot or parcel and the square footage of open space and common areas allocated to
such lot as provided in Paragraph (4) of this Subsection. The stormwater utility fee shall recover
the costs of both operations and maintenance and a portion of capital improvements. The
Utilities Executive Director shall determine the rates that shall apply to each specific lot or parcel
of land within the guidelines herein set forth and shall establish the utility fee in accordance with
the rate together with the other factors set forth as follows:
. . .
(3) The base rate for the stormwater utility fee shall be $0.00414540.0042697 per
square foot per month for all areas of the City.
. . .
Section 3. That the modifications set forth above shall be effective for all fees
accruing on or after January 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 1st day of
November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-3-
Passed and adopted on final reading on the 15th day of November, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Operating Income
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0% Rate Increase
120.0% Rate Increase
8.0%
10.0%
12.0%
14.0% Rate Increase
$50,000,000
$60,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Outstanding Debt
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Available Reserves
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0% Rate Increase
7.4 HPG ADMINISTRATIVE POSITION CHANGE 5.0 FTE Utilities: Administration & General Operations $42,119 $43,225
7.6 HPG ADMINISTRATIVE POSITION CHANGE 1.0 FTE Utilities: Information Technology Services $23,676 $24,289
7.15 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Systems Analyst $84,105 $111,127
7.17 HPG CAP ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Strategic Account Specia $66,263 $81,784
7.19 HPG CAP ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Program Coordinator Sup $80,380 $90,159
7.20 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Environmental Regulatory Tec $70,149 $78,722
7.21 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Environmental Regulatory Spe $102,394 $114,725
7.22 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Utility Data Scientist $95,743 $98,208
7.23 HPG ENHANCEMENT - Utilities: Customer Service & Administration - Cyber Security - Continuous Improvem $100,000 $100,000
7.25 HPG Withdrawn ENHANCEMENT - Utilities: CS&A - Large Commercial and Industrial Customer Data Portal $300,000 $250,000
7.26 HPG ENHANCEMENT - Utilities: Customer Service & Admin - Customer Relationship Management System E $125,000 $0
7.28 HPG ENHANCEMENT - Utilities: Customer Service & Administration - Regulatory Compliance Software $60,000 $22,000
7.30 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Web Programmer Analyst $84,410 $98,680
7.31 HPG CAP ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Publicity Marketing Techn $66,054 $69,878
7.32 HPG ENHANCEMENT - 1.0 FTE Utilities: Customer Service & Administration - Systems Specialist $77,485 $102,076
TOTAL UNFUNDED $1,443,153 $1,352,003
8.30 Safe ENHANCEMENT - 1.0 FTE Utilities: Conversion of Contractual Special Project Manager to Classified $6,608 $6,774
8.31 Safe ENHANCEMENT - 1.0 FTE Utilities: Stormwater Construction Inspector $77,774 $87,228
7.24 HPG ENHANCEMENT Capital - Utilities: Customer Information Billing System $0 $345,499
7.29 HPG ENHANCEMENT Capital - Utilities: Asset Register and Work Order Management System $275,000 $160,000
Subtotal Enhancements $4,959,382 $4,299,501 $4,959,382 $4,299,501
TOTAL WITH ENHANCEMENTS 11,412,136 14,563,925 16,677,361 18,363,266 18,151,833 Less Enhancements ($1,212,852) ($1,036,528)
% Change 27.6% 14.5% 10.1% -1.2%
Available Reserves
REVENUE PROJECTION LESS ALL OFFERS $4,202,893 $2,340,063 ($986,908) ($1,212,852) ($1,036,528) $3,120,300 $1,907,448 $870,920
UNFUNDED ENHANCEMENTS
8.2 Safe ADMINISTRATIVE POSITION CHANGE 8.0 FTE Utilities: Stormwater Core Operations $87,093 $89,052
8.4 Safe Capital Replacement - Utilities: Stormwater - Basin Master Plan Updates $250,000 $250,000
8.5 Safe Capital Replacement - Utilities: Stormwater - Developer Repayments $150,000 $150,000
8.22 Safe ENHANCEMENT - Utilities: Stormwater - New Equipment Purchase $160,000
TOTAL UNFUNDED $647,093 $489,052
8.30 Safe ENHANCEMENT - 1.0 FTE Utilities: Conversion of Contractual Special Project Manager to Classified $6,608 $6,774
8.31 Safe ENHANCEMENT - 1.0 FTE Utilities: Stormwater Construction Inspector $77,774 $87,228
7.24 HPG ENHANCEMENT Capital - Utilities: Customer Information Billing System $0 $345,499
7.29 HPG ENHANCEMENT Capital - Utilities: Asset Register and Work Order Management System $275,000 $160,000
Subtotal Enhancements $4,959,382 $4,299,501 $4,959,382 $4,299,501
TOTAL WITH ENHANCEMENTS 11,412,136 14,563,925 16,677,361 18,716,766 18,454,833 Less Enhancements ($1,256,352) ($1,029,528)
% Change 27.6% 14.5% 12.2% -1.4%
Available Reserves
REVENUE PROJECTION LESS ALL OFFERS $4,202,893 $2,340,063 ($986,908) ($1,256,352) ($1,029,528) $3,120,300 $1,863,948 $834,420
UNFUNDED ENHANCEMENTS
8.2 Safe ADMINISTRATIVE POSITION CHANGE 8.0 FTE Utilities: Stormwater Core Operations $87,093 $89,052
8.4 Safe Capital Replacement - Utilities: Stormwater - Basin Master Plan Updates $250,000 $250,000
8.5 Safe Capital Replacement - Utilities: Stormwater - Developer Repayments $150,000 $150,000
8.22 Safe ENHANCEMENT - Utilities: Stormwater - New Equipment Purchase $160,000
TOTAL UNFUNDED $647,093 $489,052
6.55 Envir ENHANCEMENT 1.0 FTE - Utilities: Wastewater - Resource Recovery Specialist $62,453 $77,065
6.56 Envir ENHANCEMENT - Utilities: Wastewater - Sidestream Treatment $4,300,000
7.24 HPG ENHANCEMENT CAPITAL - Utilities: Customer Information Billing System $507,023
7.29 HPG ENHANCEMENT Capital - Utilities: Asset Register and Work Order Management System $275,000 $160,000
6.87 Envir ENHANCEMENT Capital - Utilities: Biogas to Co-Gen Update $440,000
Subtotal Enhancements $4,480,071 $10,128,117 $4,480,071 $10,128,117
TOTAL WITH ENHANCEMENTS $27,968,086 $23,912,833 $28,462,496 $25,501,468 $31,706,336 Less
Enhancements ($1,050,961) ($6,739,439)
% Change -14.5% 19.0% -10.4% 24.3%
Available Reserves
REVENUE PROJECTION LESS ALL OFFERS ($2,236,126) $1,602,378 ($1,848,543) ($1,050,961) ($6,739,439) $18,500,000 $17,449,039 $10,709,600
UNFUNDED ENHANCEMENTS
6.18 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Database Analyst $47,957 $59,226
6.22 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Contractual Maintenance Specialist (Production) $67,747 $83,576
6.26 Envir ENHANCEMENT - Utilities: Water - Underground Electrical Power Supply $555,000 $650,000
6.27 Envir ENHANCEMENT - Utilities: Water - Watershed Protection $80,000 $80,000
6.29 Envir ENHANCEMENT - Utilities: Water - Cathodic Protection $0 $1,280,000
6.30 Envir ENHANCEMENT - Utilities: Water - Azalea Waterline Replacement $450,000 $0
6.31 Envir ENHANCEMENT - Utilities: Water - Poudre Canyon Raw Water Line Improvements $800,000 $0
6.32 Envir (DELETED) ENHANCEMENT - 0.5 FTE Utilities: Lab Quality Assurance Coordinator
6.33 Envir (DELETED) ENHANCEMENT - Utilities: Water - Real-Time Water Quality Monitoring on the Cache La Poudre River
7.24 HPG ENHANCEMENT CAPITAL - Utilities: Customer Information Billing System $636,638
7.29 HPG ENHANCEMENT Capital - Utilities: Asset Register and Work Order Management System $275,000 $160,000
Subtotal Enhancements $3,757,961 $4,316,784 $3,757,961 $4,316,784
TOTAL WITH ENHANCEMENTS $34,330,013 $35,369,868 $46,613,117 $34,292,561 $34,513,703 Less Enhancements $147,311 ($317,543)
% Change 3.0% 31.8% -26.4% 0.6%
Available Reserves
REVENUE PROJECTION LESS ALL OFFERS ($214,313) $28,444 ($12,601,467) $147,311 ($317,543) $4,400,000 $4,547,311 $4,229,768
UNFUNDED ENHANCEMENTS
6.18 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Database Analyst $47,957 $59,226
6.24 Envir CAP ENHANCEMENT CAPITAL - Utilities: Water - Water Treatment Solar Energy System $1,883,000
6.25 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Treatment Solids Drying Pad $1,350,000
6.2 Envir ADMINISTRATIVE POSITION CHANGE 10.0 FTE Utilities: Water Core Operations $121,618 $124,758
6.4 Envir ADMINISTRATIVE POSITION CHANGE 2.0 FTE Utilities: Water - Conservation $62,374 $63,924
6.28 Envir ENHANCEMENT - Utilities: Water - Supply Vulnerability Assessment $250,000 $100,000
6.23 Envir ENHANCEMENT - 1.0 FTE Utilities: Inspector $84,842 $87,228
6.19 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Conservation Coordinator $70,724 $75,394
TOTAL UNFUNDED $1,987,515 $2,393,530
6.21 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Planner Scheduler Dispatcher (Field Operations) $47,618 $49,029
6.22 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Contractual Maintenance Specialist (Production) $67,747 $83,576
6.23 Envir ENHANCEMENT - 1.0 FTE Utilities: Inspector $84,842 $87,228
6.26 Envir ENHANCEMENT - Utilities: Water - Underground Electrical Power Supply $650,000 $650,000
6.27 Envir ENHANCEMENT - Utilities: Water - Watershed Protection $80,000 $80,000
6.28 Envir ENHANCEMENT - Utilities: Water - Supply Vulnerability Assessment $250,000 $100,000
6.29 Envir ENHANCEMENT - Utilities: Water - Cathodic Protection $0 $2,280,000
6.30 Envir ENHANCEMENT - Utilities: Water - Azalea Waterline Replacement $450,000 $0
6.31 Envir ENHANCEMENT - Utilities: Water - Poudre Canyon Raw Water Line Improvements $800,000 $0
6.32 Envir (DELETED) ENHANCEMENT - 0.5 FTE Utilities: Lab Quality Assurance Coordinator
6.33 Envir (DELETED) ENHANCEMENT - Utilities: Water - Real-Time Water Quality Monitoring on the Cache La Poudre River
7.24 HPG ENHANCEMENT CAPITAL - Utilities: Customer Information Billing System $636,638
7.29 HPG ENHANCEMENT Capital - Utilities: Asset Register and Work Order Management System $275,000 $160,000
Subtotal Enhancements $4,258,527 $5,579,406 $4,258,527 $5,579,406
TOTAL WITH ENHANCEMENTS $34,330,013 $35,369,868 $46,613,117 $34,793,127 $35,776,325 Less Enhancements $166,745 ($570,165)
% Change 3.0% 31.8% -25.4% 2.8%
Available Reserves
REVENUE PROJECTION LESS ALL OFFERS ($214,313) $28,444 ($12,601,467) $166,745 ($570,165) $4,400,000 $4,566,745 $3,996,580
UNFUNDED ENHANCEMENTS
6.18 Envir ENHANCEMENT - 1.0 FTE Utilities: Water - Database Analyst $47,957 $59,226
6.24 Envir CAP ENHANCEMENT CAPITAL - Utilities: Water - Water Treatment Solar Energy System $1,883,000
6.25 Envir ENHANCEMENT CAPITAL - Utilities: Water - Water Treatment Solids Drying Pad $1,350,000
6.2 Envir ADMINISTRATIVE POSITION CHANGE 10.0 FTE Utilities: Water Core Operations $121,618 $124,758
6.4 Envir ADMINISTRATIVE POSITION CHANGE 2.0 FTE Utilities: Water - Conservation $62,374 $63,924
TOTAL UNFUNDED $1,581,949 $2,130,908
5.23 Econ ENHANCEMENT - Capital Replacement - Utilities: Light & Power - Operational Technology $2,579,927 $182,457
5.25 Econ ENHANCEMENT - Utilities: Light & Power - Stray Voltage Testing $250,000 $0
5.26 Econ CAP ENHANCEMENT - Utilities: Light & Power - Electric Distributed Battery Pilot Program $100,000 $100,000
5.27 Econ ENHANCEMENT - Utilities: Light & Power - Electric Distribution System Corrosion Mitigation $150,000 $175,000
6.76 Envir ENHANCEMENT - Utilities: Light & Power - Energy Services $950,000 $950,000
6.77 Envir ENHANCEMENT - 1.0 FTE - Utilities: Light & Power - Energy Services Engineer $101,260 $104,073
6.78 Envir ENHANCEMENT - Utilities: Light & Power - Renewable Non-Residential Solar Power Purchases $72,500 $282,500
6.79 Envir ENHANCEMENT - Utilities: Light & Power - Renewable Non-Residential Solar Rebates $500,000 $500,000
6.80 Envir ENHANCEMENT - Utilities: Light & Power - Renewable Community Shared Solar $250,000 $250,000
7.24 HPG ENHANCEMENT CAPITAL - Utilities: Customer Information Billing System $0 $810,840
7.29 HPG ENHANCEMENT Capital - Utilities: Asset Register and Work Order Management System $0 $0
Subtotal Enhancements $4,953,687 $3,354,870 $4,953,687 $3,354,870
TOTAL WITH ENHANCEMENTS $134,820,254 $130,764,892 $143,840,225 $141,162,823 $139,756,280 Less
Enhancements ($9,459,500) ($3,893,824)
% Change -3.0% 10.0% -1.9% -1.0%
Available
Reserves
REVENUE PROJECTION LESS ALL OFFERS ($6,727,943) ($4,891,311) ($10,212,577) ($9,459,500) ($3,893,824) $15,424,517 $5,965,017 $2,071,193
UNFUNDED ENHANCEMENTS
Offer Result Title
5.4 Econ ADMINISTRATIVE POSITION CHANGE 8.75 FTE - Utilities: Light & Power - Operations $37,288 $38,311
6.66 Envir ADMINISTRATIVE POSITION CHANGE 1.0 FTE Utilities: Light & Power - Energy Services $15,155 $15,551
5.10 Econ Capital Replacement - Utilities: Light & Power - Mulberry System Infrastructure Investment $0 $500,000
5.21 Econ ENHANCEMENT - Capital Replacement - Utilities: Light & Power - LED Street Light Conversion $500,000 $950,000
5.22 Econ ENHANCEMENT - Capital Replacement - Utilities: Light & Power - Cut to Length Cable Program $900,000 $0
5.24 Econ ENHANCEMENT - 1.0 FTE - Utilities: Light & Power - Planner Scheduler $116,038 $119,221
6.75 Envir ENHANCEMENT - Utilities: Light & Power - Distributed Energy Resource Management System $179,400 $50,712
94.1 Envir ENHANCEMENT: Wind and Solar Energy for Municipal Operations $599,187 $654,113
TOTAL UNFUNDED $2,347,068 $2,327,908
10/18/2016
b. Issue debt no more frequently than once every 3 years