Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2019 - ITEMS RELATING TO 2020 UTILITY RATESAgenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY October 15, 2019 City Council STAFF Randy Reuscher, Utility Rate Analyst Lance Smith, Utilities Strategic Finance Director Eric Potyondy, Legal Cyril Vidergar, Legal SUBJECT Items Relating to 2020 Utility Rates. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 125, 2019, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 126, 2019 Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees and Charges. C. First Reading of Ordinance No. 127, 2019 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. 128, 2019 Amending Chapter 26 of the Code of the City of Fort Collins to Revise Stormwater Rates, Fees and Charges. The purpose of this item is for Council to consider adjusting monthly charges for electric, water, wastewater, and storm water services in 2020. The revenue requirements to support the 2020 budget will require increasing monthly charges for electric service by 5.0% and stormwater service by 2.0%. While there is no overall percentage increase planned for the Water or Wastewater Funds, there are minor rate class adjustments proposed based on recent cost-of-service model updates. Upon adoption, these rates would be effective January 1, 2020. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Electric Fund The electric rate ordinance proposed for 2020 rates includes the following items: • A proposed 5% increase for the Electric Fund in 2020, which was included as part of the 2019-2020 City Manager’s Recommended Budget • Changes to retail rates driven by proposed wholesale rate structure changes • The residential solar credit rate for excess generation proposed to remain at the current amount for 2020 • Reducing the Green Energy subscription price by 30% to account for non-carbon resources in the overall electricity mix. Agenda Item 11 Item # 11 Page 2 Staff is proposing a 5% overall rate increase for the Electric Fund in 2020 to increase operating revenues enough to offset operating expenses, so that reductions in reserves stop and funds can be set aside for future capital improvements. The electric cost-of-service (COS) model is updated every two years, with the last update occurring in 2018. The resulting rate class impacts being proposed for 2020 are not tied to model updates, and instead are due to a combination of varying levels to which customers classes use the distribution system, as well as structure and component changes in wholesale rates. As shown in the table below, the impacts are greater on a percentage basis for the residential and small commercial classes and less for industrial and substation customers. 2020 % Increase Residential 5.2% Small Commercial 4.4% Mid-sized Commercial 3.1% Large Commercial 2.7% Industrial 0.6% Substation 0.0% Rate Class The ten-year rate forecast recognizes the increased cost of operations along with investments in environmental initiatives and system infrastructure renewal. The increase in 2020 would generate additional revenue that remains within the distribution utility of the City and will result in positive operating income being generated for this Enterprise. Implementing these increases in 2020 compensates for the reduction in Reserves which has occurred over the previous three budget cycles (2013-2018). Changes in Wholesale Costs Platte River Power Authority (Platte River) has proposed changes to the wholesale rate structure for 2020 related to recent updates to the wholesale rate model. While the proposed wholesale structure is a departure from having only a basic energy charge and a coincident peak charge, the changes will not impact how retail rates are structured for billing Fort Collins’ retail customers in 2020. However, these changes will have financial implications as to how it affects various customer rate classes, mostly dependent on load factors. Existing wholesale rates are based on two components: • a seasonal energy charge, per kilowatt-hour (kWh) and • a seasonal coincident peak demand charge, per kilowatt (kW) The proposed wholesale rates for 2020 will include the following charges: • Fixed monthly owner charge, based on the percentage of average annual energy sales • transmission charge, per kW, based on non-coincident peak • seasonal generation charge, per kW, based on coincident peak • energy charge, per kWh (no longer seasonal) o based on a dispatchable fixed charge for all energy supplied, o plus, a weighted ratio of ▪ variable dispatchable energy ▪ variable intermittent energy Agenda Item 11 Item # 11 Page 3 Additional Platte River changes include: • adding the month of September to the “summer” season, in addition to the months of June, July, and August. • Implementing a 75% demand ratchet for both the non-coincident peak charge (NCP) and coincident peak (CP) charge, which will increase demand costs in non-summer months of the year, but is driven by peaks that occur during the summer months Without making an adjustment to demand costs at the retail level, the wholesale demand ratchet would drive a ~$1.5M revenue shortfall. While these costs are incurred during the non-summer months, staff is proposing the summer demand charge for retail customers be increased to offset this amount because the cause of the increased cost is higher summer peak demands. The impact would be an increase in the summer months from $11.98 / kW to $13.27 / kW. The Electric Rates Ordinance changes the Code to match Platte River’s change in the summer season and extend the summer period for commercial customers to include the month of September. Residential customers will continue with a five-month summer season, as previously established for time-of-day (TOD) pricing, which already includes September as a summer month. The wholesale energy component will no longer be seasonal, therefore eliminating the need for seasonal energy charges at the retail level, other than in cases where wholesale demand charges are collected via an energy charge (i.e. TOD pricing will continue to have a seasonal on-peak charge, but not a seasonal off-peak charge) The mix of wholesale costs will shift slightly higher (~2%) for demand and slightly lower for energy, therefore having varying effects for retail rate classes. Generally, higher load factor customers (i.e. large commercial and industrial) will benefit from this shift, while other rate classes will be negatively impacted. The table below shows how the component charges will change for 2020 for residential TOD customers, given the changes to distribution and wholesale costs that comprise each charge. Agenda Item 11 Item # 11 Page 4 6 percent c. Fixed Charge Per account $ 6.40 17.9% $ 7.55 $ 8.00 b. Distribution facilities charge (included in each component below for billing purposes) d. Energy and demand charge 1. Summer (a) On-Peak Per kWh $ 0.2055 6% $ 0.2183 $ 0.2585 (b) Off-Peak Per kWh $ 0.0437 -5% $ 0.0414 $ 0.0710 2. Non-summer. (a) On-Peak Per kWh $ 0.1824 0% $ 0.1815 $ 0.2195 (b) Off-Peak Per kWh $ 0.0419 -1% $ 0.0414 $ 0.0710 e. Energy efficiency tier charge, for total consumption over 700 kWh in a billing month Per kWh $ 0.0183 17.9% $ 0.0216 $ 0.0229 2020 Billed Charge Description Unit 2019 Component Charge 2020 % Change 2020 Component Rate a. Payment in lieu of taxes (PILOT) Per kWh $ 0.0217 17.9% $ 0.0256 Green Energy Program Platte River provides renewable energy in the general resource mix (formerly Tariff 1) through the supplemental Tariff 7, which is based on individual member City commitments. Tariff 7 will continue through 2020 based upon the current structure. All renewable energy sources are expected to be included in the primary wholesale tariff starting in 2021, and Tariff 7 will be eliminated. The Green Energy Program provides an option for customers to subscribe to renewable electricity, in predetermined “blocks” or up to 100% of their usage. The price premium has been based upon the tariff 7 cost, which in 2019 is 2.5 cents per kWh. The retail price premium is currently 2.65 cents per kWh after the inclusion of PILOTs. The current program does not account for the amount of non-carbon resources provided to customers as part of the overall resource mix. Given that non-carbon resources make up at least 30% of electricity, customers who pay the total premium on 100% of their monthly kilowatt-hour use are buying more than 100% renewable energy. Staff is recommending the Green Energy Rate be modified to account for the base resource mix. The proposed approach adjusts the amount of renewable energy purchased by a factor of 70% of kWh use. This adjustment means the current premium charge of 2.65 cents per kWh would be reduced in 2020 to 1.9 cents per kWh. The overall decrease in revenue to the utility, at the current participation rate related to this adjustment, is ~$125,000, but may be partially offset by increased participation in the program. Staff has also determined that as a consequence of this change in program logic, the Green Energy program will no longer be eligible for certification under the Green-e® Energy Program (green-e.org/programs/energy). The primary reason is that some of the non-carbon resources in the base mix do not quality as Green-e® certifiable sources (e.g. the hydro and older wind). Green-e® has provided a valuable external certification for the Green Energy (and previously Wind Power) Program. However, it’s structure will be limiting to Utilities options to provide renewable choices for customers moving forward. Several key points related to this change include: • Staff has no evidence that Green-e certification remains an important factor for customers. Annual letters are sent out to subscribers regarding Green-e® certification with no feedback from customers and staff has discussed this topic with key accounts and business subscribers. • Utilities will save approximately $3,500 annually to not have to go through the certification process. • There is a requirement to notify existing subscribers that the program is no longer certified. Staff will be communicating the lower pricing to existing customers and can incorporate this requirement into the same Agenda Item 11 Item # 11 Page 5 • Utilities will be able to provide customers with detailed accounting of their sources of electricity as a Green Energy program subscriber, in a similar fashion to that required by Green-e®. Staff is recommending this pricing change for 2020 as an interim step prior to a more comprehensive revisions for the Green Energy Program for 2021. By 2021, the new Roundhouse wind and Rawhide Prairie solar projects will be operational, and the legacy Tariff 7 commitments may be absorbed into the primary wholesale tariff. These major changes to the renewable energy sources for Fort Collins customers will necessitate an overhaul of the Green Energy Program. Staff will incorporate this effort into 2020 work plans with the intent being to provide customers with options to achieve 100% renewable energy from local and utility scale sources as the overall resource mix evolves towards the 2030 goal of 100% renewable electricity. Residential Solar Net Export Credit Residential solar customers currently receive full retail credit rate for solar energy which they generate and consume within their home and for solar energy generated in excess of what their home is consuming (net export). Retail electricity rates include approximately 2.2 cents per kWh related to the cost of service for operations and maintenance of the distribution system. Fort Collins customers’ increasing adoption of solar energy systems provides long-term opportunities and challenges for Utilities, for customers and for the community’s climate and energy goals. While Fort Collins remains in the early phases of solar adoption, it is important to recognize that the current financial structures are not sustainable if continued indefinitely. Staff is recommending a multi-step process with the objectives of: • Continuing to support a robust local solar adoption rate and solar industry presence, and • Providing a glide path for residential rate structures which aligns with the community’s goal to achieve 100% renewable electricity by 2030. The analysis required to review the goals, targets, rates, pricing, policies and business models for solar and distributed energy resources will be incorporated into the Our Climate Future planning process to update the City’s energy and climate plans. The outcome for the effort will be to establish a sustainable financial model for distributed energy resources and a predictable path and timeline for customers and trade allies which recognizes the value of both the distribution grid system and individual assets to create Fort Collins energy future. As an initial step, staff is recommending that the effective residential solar credit rate for net excess generation be maintained at the current amount for 2020. This proposed change in approach does not affect the customer value for self-consumed solar energy. Because Fort Collins’ advanced electric meters measure and record the net electricity consumption or net electricity export every 15 minutes, all self-consumed solar is always credited at the full retail rate. It is only the excess solar energy that is returned to the distribution system that is impacted by this proposal. By holding the effective solar net export credit flat in 2020, the rate begins to address the inequity caused by solar customers not contributing to the distribution system annual costs. The approach of holding the net export compensation flat creates a gradual shift where the expected increases in wholesale costs will approach the solar net export rate in the future. Note that other factors, including strategies related to fixed (or base) charges for all customers may impact this approach in future years. The initial impact on solar customers in 2020 is relatively small, as the average impact is expected to be approximately $1.10 less compensation per month. This is approximately 2% of the annual system value. With simplified modeling, this approach would reduce the cost recovery of a typical solar system by approximately $450 over ten years. From the Utilities perspective, implementation of this strategy would have an impact of approximately $2M over ten years. Agenda Item 11 Item # 11 Page 6 Rate Strategy Overview: The rate strategy that was developed as part of the Strategic Financial Plan in 2016 provides for objective rate adjustments based on financial metrics. This strategy is included in the stochastic financial modeling for the plan and serves as the basis of the rate projections presented to Council since 2016. The following criteria objectively determine when, why and how much rates should be adjusted to maintain the financial health of each utility: 1. Adjust electric rates sufficient to meet Platte River Power Authority wholesale rate adjustments. 2. If the previous 3 years have averaged negative operating income, raise rates next year to the lesser of 5% or the level sufficient to have offset the average operating loss. 3. If debt coverage is less than 2.0, increase rates the lesser of 5% and a level sufficient to raise the debt coverage ratio to 2.1 the next year. 4. If the Available Reserve fund balance is projected to be negative at the end of any year, increase rates the lesser of 5% and an amount sufficient to increase reserves to the minimum required reserve. 5. Add up all the previous criteria driven rate adjustments and take the lesser of 5% and the sum as the recommended rate adjustment. The table below shows how the criteria led to the requested rate adjustments for this budget cycle: Oct '18 CURRENT Criteria 2019 2020 2020 2021 1.4% 1.4% 0.3% 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% 3.9% TBD 3. Debt Coverage Ratio < 2.0 TBD 4. Available Reserves less Capital Need < 0 TBD Sum of Above 6.4% 5.8% 5.3% 5. Lesser of 5.0% or the sum of above 5.0% 5.0% 5.0% TBD Increase Carried Forward 1.4% 0.8% 0.3% TBD TBD - to be determined in the 2021-22 Budget cycle Agenda Item 11 Item # 11 Page 7 Electric Rate Trend: Below are charts for these two utilities showing the adjustments to rates that have been implemented since 2007, along with the forecasted rate adjustments being proposed in this budget. The table below each chart shows the rate adjustments that are anticipated to be necessary over the next 10 years to provide adequate revenues to maintain the financial health as determined by the bond rating agencies criteria for assessing new debt issuances. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Electric Monthly Rates Purchased Power Distribution System Energy Services 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Rate Increase 3.5% 1.8% 5.0% 5.0% 2-3% 1-3% 1-3% 1-3% 1-3% 1-3% Debt Issuance $M $20.0 $165M of capital work is expected to be needed between 2017 and 2026 in addition to the current capital appropriations. Stormwater Fund The 2% stormwater increase for 2019 is intended to raise operating revenues modestly to increase the debt capacity of the Enterprise. This is in anticipation of significant debt being needed for the capital improvements necessary to complete the initial buildout of the stormwater infrastructure. Similar, modest adjustments of less than 3% may be necessary over the coming decade depending on the timing and scale of the necessary capital investments. Criteria 2019 2020 1. 3 yr ave. Operating Income < $0 - - 3. Debt Coverage Ratio < 2.0 - - 4. Available Reserves less Capital Need < 0 * 2.0% 2.0% Sum of Above 2.0% 2.0% 5. Lesser of 5.0% or the sum of above 2.0% 2.0% * This is an estimate in lieu of the capital improvement plan being prioritized. It will be necessary to increase revenues to support the significant capital needs for this utility Agenda Item 11 Item # 11 Page 8 The graph below shows the rate history and forecast for the Stormwater Fund. There was a 5% increase in 2017, no increase in 2018, and 2% in 2019, along with 2% proposed for 2020. The forecast for future years includes a 1%, or less, increase each year. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Stormwater Monthly Rate Changes Water and Wastewater Funds Staff is proposing no changes in total revenue for the Water and Wastewater Funds for 2020. While there are no overall changes to these funds, staff recently updated the cost-of-service models for each fund, which is done every two years. These model updates are driving some minor rate class adjustments. The proposed adjustments consider variations over the past two years in customer counts, consumption data, and costs related to operating and maintenance, as well as capital projects. The graph below shows the proposed rate class adjustments by customer class for the Water Fund. The adjustments range from (1.3%) to 0.9%. The biggest driver is related to variations in overall consumption, generally during the summer months when outdoor irrigation occurs. The peaking factor (peak day consumption compared to average day consumption) for the residential class has increased, on average, thereby driving an increase in the allocation of water production expenses to this class of customers, albeit minor. The residential class is proposed to increase 0.4%, the duplex class is proposed to increase 0.8%, and the multi-family class is proposed to increase 0.9%. The commercial class has decreased peak day flows slightly, which along with other minor changes, is reflected in the proposed 1.3% rate decrease for 2020. Agenda Item 11 Item # 11 Page 9 The graph below shows the rate history and forecast for the Water Fund. No change occurred for 2019 and no overall change is proposed for 2020. Future year proposals are for a 3% rate increase each year. 0% 2% 4% 6% 8% 10% 12% 14% 16% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Water Fund Annual Rate Changes The graph below shows the proposed rate class adjustments by customer class for the Wastewater Fund, which range from (0.6%) to 1.5%. While wastewater billing is tied to indoor water consumption, there are other factors that play into wastewater utility costs. One example is effluent charges, which includes surcharges for biochemical oxygen demand and total suspended solids, which are collected from commercial customers that exceed certain thresholds. The biggest drivers in the wastewater changes are related to a combination of the variability in the wastewater flows, and associated strengths of that waste, since the last model update. The outcome of the recent model update shows the residential class decreasing 0.6%, the duplex class increasing 0.1%, the multi-family class increasing 1.4%, and the commercial class increasing 1.5%, for 2020. Agenda Item 11 Item # 11 Page 10 The graph below shows the rate history and forecast for the Wastewater Fund. No change occurred for 2019 and no overall change is proposed for 2020. Future year proposals are for a 2% increase each year. 0% 2% 4% 6% 8% 10% 12% 14% 16% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase 503 - Wastewater Fund Rate Changes Typical Residential Utility Bill The typical residential customer’s total utility bill will increase in 2020, under the proposed rate changes, by 2.3% on average, per month. The table below shows the impacts of all the proposed rate changes on the utility bill of a typical residential customer. Agenda Item 11 Item # 11 Page 11 Utility 2019 2020 $ Change % Change Electric $ 74.64 $ 78.37 $ 3.73 5.0% Water $ 47.88 $ 48.07 $ 0.19 0.4% Wastewater $ 34.45 $ 34.24 $ (0.21)-0.6% Stormwater $ 15.73 $ 16.04 $ 0.31 2.0% Total Average Bill $ 172.70 $ 176.73 $ 4.03 2.3% Average Residential Monthly Bill Fort Collins Utilities CITY FINANCIAL IMPACTS Electric Rate Ordinance - In 2020, the proposed 5.0% increase would add an estimated $6.5M to operating revenues which will partially address the ongoing operating loss. The attached one-page budget summary for the Light and Power Enterprise Fund shows the budget assuming this proposed 5.0% rate increase is adopted. Because reserves have been drawn down already any reduction in the proposed 5.0% rate increase would need to be offset by a corresponding amount in the accepted budget Offers. Stormwater Rate Ordinance - In 2020, the proposed 2.0% increase would add an estimated $0.3M to operating revenues. In the near term this modest rate increase will allow the utility to build up reserves to strengthen the utility’s financial position ahead of anticipated debt issuances. The attached one-page budget summary for the Stormwater Enterprise Fund shows a contribution to reserves in both years. In the long term this will increase the debt capacity necessary to finance the remaining stormwater infrastructure. BOARD / COMMISSION RECOMMENDATION At its September 12, 2019 meeting, the Energy Board voted unanimously to support the 2020 electric rate increase and changes as proposed by staff. At its September 19, 2019 meeting the Water Board voted unanimously that City Council approve the proposed 2% increase to Stormwater as well as the rate class adjustments for Water and Wastewater for 2020, as proposed by staff. PUBLIC OUTREACH Key Accounts have been communicating the 5.0% overall electric rate increase, 2% stormwater increase, and the rate class adjustments to water and wastewater rates being proposed for 2020. ATTACHMENTS 1. Energy Board minutes, September 12, 2019 (draft) (PDF) 2. Water Board minutes, September 19, 2019 (draft) (PDF) 3. Powerpoint presentation (PDF) ENERGY BOARD REGULAR MEETING - ABRIDGED September 12, 2019 – 5:30 pm 222 Laporte Ave.; Colorado Room ENERGY BOARD MEETING |09/12/2019 ROLL CALL Board Members Present: Chairperson Nick Michell, Vice Chairperson Amanda Shores, Alan Braslau, Bill Becker, Dan Gould, Jeremy Giovando, John Fassler, Stacey Baumgarn Board Members Absent: None OTHERS PRESENT Staff Members Present: Christie Fredrickson, Cyril Vidergar, Brian Tholl, Tim McCollough, Molly Saylor, Michael Authier, Lance Smith, Rhonda Gatzke, Mark Cassalia Platte River Power Authority: Paul Davis Members of the Public: Rick Coen 2020 ELECTRIC RATES, INCLUDING GREEN ENERGY & SOLAR EXPORT Lance Smith, Director, Financial Planning & Assets (attachments available upon request) Mr. Smith summarized the proposed rate increases for 2020, which includes a 5% increase in electric rates, and a 2% increase in stormwater rates. Water and wastewater do not have a proposed increase in 2020. In 2019, Platte River raised the cost of wholesale energy by 1.4%, but the Utility’s three-year average operating income was negative, so staff requested a 5% electric rate increase to improve the operating income and carried forward the 1.4% increase from Platte River to 2020. Mr. Smith said in 2020, finance staff identified a 3.9% electric rate increase as necessary to bring the operating income above zero, and the 1.4% wholesale rate increase carried over from 2019 (totaling 5.3%). So as not to exceed the 5% increase threshold, staff is proposing a 5% increase in 2020 and carrying over the remaining 0.3% to 2021. Chairperson Michell said it would be helpful to see and & understand exactly what the Light and Power fund looks like. Mr. Smith said staff is currently awaiting the completion of the updated Capital Improvement Plan, which will help them understand a rate forecast after they run it through the long-term financial model. By the by end of year Mr. Smith expects to have a clear picture of the Utility’s financial health and would be happy to come back to the Board with that information. Chairperson Michell asked if the increased costs for the Halligan expansion will affect the request for a 5% electric rate increase, and Mr. Smith said no, they won’t be asking for Halligan funding in 2020 and he tries to stagger the utility rate increases so the customer’s bill doesn’t have a drastic increase all at once. In addition to the 5% overall electric rate increase, staff is also proposing to hold the solar credit flat for energy returned to the grid. The intent behind that proposal is to create a smooth path to merge with Platte River’s 100% renewable energy goal by 2030. Commercial customers’ summer season will be extended to four months in 2020 (June through September), and wholesale energy will no longer be seasonal (wholesale demand charges will remain seasonal, with a 75% ratchet implemented). Without making an adjustment to demand costs at the retail level, the wholesale demand ratchet would drive an approximate $1.5 million revenue shortfall. While these costs are incurred during the non- summer months, staff is proposing the summer demand charge for retail customers be increased to offset ATTACHMENT 1 ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 09/12/2019 this amount because the cause of the increased cost is higher summer peak demands. The impact would be an increase in the summer months from $11.98 per kW to $13.27 per kW. Staff is also looking to modify the Green Energy Program. The current green energy price is 2.65 cents per kWH, but because 30% of our resource mix is non-carbon, staff is proposing to reduce the green energy price to 1.9 cents per kWh in 2020. This is expected to reduce the Utility revenue by approximately $125,000 for 2020, but it’s possible the reduction in charge could encourage participation. Chairperson Michell asked if there will still be a Green Energy Program in 2021, or if it’s possible it will go away along with Tariff 7? Mr. McCollough said the plan for Tariff 7 beyond 2020 has not been finalized yet. He added it would be good for Fort Collins to roll everything into the base tariff portfolio, because we have a disproportionate share of Tariff 7 energy and cost. Mr. Smith displayed a chart showing the current solar retail credit and wholesale cost forecast over the next 10 years. By flattening the retail credit from 2020 to 2030, the distribution delta gap will decrease as we approach the goal of 100% renewable energy by 2030. Board member Braslau asked what the Colorado law is regarding solar energy buy-back rates. Mr. McCollough said there is no statewide specification for net-metering buy-back rates. Mr. Vidergar added that the City’s Electric Utility is exempt from many of the PUC’s regulations, including specifics on the setting of rates and the state’s renewable energy standards. The City uses the PUC regulations as a benchmark or best practices but is not required to comply with them. Chairperson Michell said from a financial standpoint he understands why staff would propose to flatten the retail credit, but as a customer, he would prefer to see something structured about how the City puts a value on solar because now the flattening of the credit could appear as devaluing solar and renewable energy practices. Mr. McCollough added that the 5% rate increase benefits self-consumption solar customers because they are avoiding that cost. Chairperson Michell asked Mr. Coen his opinion about the flattened retail credit. Mr. Coen said residential homeowners purchase homes for a variety of reasons, so the impact might be minimal, but said it will be important to work thoroughly on the messaging so that it doesn’t inadvertently discourage the use and adoption of solar. Vice Chairperson Shores asked for clarification regarding Mr. Smith’s rate smoothing process. Mr. Smith said Council focuses on the overall impact to the utility bill, so they provide general direction about rate increase ceilings and balancing which or how many of the utilities can increase rates in a calendar year. Mr. McCollough said staff can also ask for higher rate increases in years when a utility doesn’t really need it, to help build for needs in the future. Board member Giovando said he understood from the presentation that there is a need to increase revenue, and the majority of the rate increase will be imposed upon the peak-usage charge; however, the Utility is also encouraging customers to curb their usage during those peak-hour rate periods. He asked if staff is anticipating that many customers won’t change their usage behaviors so the Utility can hit the revenue mark, or do they think customers have changed their behaviors and the Utility will still come up short on the revenue? Mr. Smith said the majority of the increase is coming through increasing the fixed charge and the distribution facility charge, which has nothing to do with when a customer uses uses energy. Board member Baumgarn said he understands the necessity of the rate increase, but he believes the storytelling of the increase is unsettling. Chairperson Michell moved the Energy Board support the 2020 electric rate increase and ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 09/12/2019 changes, as proposed by staff. Vice Chairperson Shores seconded the motion. Discussion: Board member Braslau said it’s important for the communications to justify the increase in residential fixed rate charges. Chairperson Michell said if Council will approve these rates increases, it would be a step in the right direction because the Board has asked for base rate increases for at least five years. Vote on the Motion: It passed 7-0, with 1 abstention. Board member Giovando said he abstained from voting because he feels uncomfortable encouraging customers to reduce their energy usage while also raising rates and the Utility’s revenue. Excerpt from Unapproved DRAFT MINUTES - WATER BOARD REGULAR MEETING September 19, 2019, 5:30 p.m. 222 Laporte Avenue, Colorado River Community Room 09/19/2019 – Excerpt from Unapproved DRAFT MINUTES Page 1 2020 Utility Rates (Attachments available upon request) Utilities Strategic Finance Director Lance Smith summarized the proposed rates that staff will take to City Council on October 15 for first reading and November 5 for second reading: 5% increase in electric rates by 5%, 2% stormwater increase to raise operating revenues modestly to increase the enterprise’s debt capacity; 0% increase in rates for to the Water Fund and Wastewater Fund with variation by rate class. Wastewater rates contain small rate class specific adjustments; staff has seen an increase in wastewater treated at the plant and slight decrease in single family use, which is reflective of the trend of overall decrease in use; didn’t increase in 2019 and 2020, but forecasting a 2% increase on average. Customers will receive information with their first bill in January and information will be available at www.fcgov.com. Discussion Highlights: Board members commented on and inquired about various related topics including the need to clarify the messaging on rate increases and suggestion that staff give context, such as annual increase per customer totals; elevator speech on why rates are increasing; whether customers in different rate classes receive different messages (staff confirmed they do); messaging on Water Supply Requirement increase due to excessive use (The proposed change to the Water Supply Requirement increases the cost of 1 acre-foot of required raw water from $17,300 to $21,500, or 24%); whether there will be an increase in 2022 (Mr. Smith replied he expects an increase; Ms. Webb mentioned developers installing water taps of inadequate size at the time of construction and then later having to pay for larger taps); impacts of a hypothetical scenario in which a homeowners association (HOA) chooses to not pay the excess water use fee and lets the grass die, and it’s not counted as revenue; whether staff is examining landscaping plans as part of development review process to ensure adequate water will be supplied (staff confirmed outreach to HOAs and developers); Rigden Farm landscaping (staff stated the HOA decided to install drought-tolerant landscaping and is therefore allowing the grass to die as recommended by staff as the most cost effective and efficient preparation for the transition); upcoming Council discussion on changes in the community’s look as high-water landscaping is phased out and replaced by drought tolerant landscaping. ATTACHMENT 2 WATER BOARD REGULAR MEETING 09/19/2019 – Excerpt from Unapproved DRAFT MINUTES Page 2 Board Member Steve Malers moved that Water Board recommend to City Council approval of the proposed 2% increase to Stormwater as well as the rate class adjustments for Water and Wastewater for 2020, as proposed by staff. Board Member Phyllis Ortman seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 Discussion after the vote: A board member commented on similarities between Connecticut and Colorado water prices; moved from Connecticut because monthly water bill went from $100 per month to $1,000 per month over 25 years. Mr. Smith replied that rates will not increase by more than 5% at a time. Another board member commented on past Southern California Edison bills; understood that at one point in summer the monthly bill would be as high as $400. 2020 October 15, 2019 City Council – First Reading ATTACHMENT 3 2020 Rate Summary 2 UTILITY 2020 PROPOSED INCREASE NOTES ELECTRIC 5% Varies by rate class WATER 0% Varies by rate class WASTEWATER 0% Varies by rate class STORMWATER 2% Same for all classes Financial Criteria for Rate Adjustments 3 Electric Criteria 2019 2020 2021 1.4% 0.3% 1. PRPA wholesale energy costs 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.9% TBD 3. Debt Coverage Ratio < 2.0 TBD 4. AvailableReserves less Capital Need < 0 TBD Sum of Above 6.4% 5.3% 5. Lesser of 5.0% or the sum of above 5.0% 5.0% TBD Increase Carried Forward 1.4% 0.3% TBD TBD - to be determined in the 2021-22 Budget cycle 2020 Electric Rates • Wholesale Rate Changes for PRPA • Implementation of an Owner Charge • Energy charges will no longer be seasonal • Changes to demand charges • 4-month summer season to include September (Jun – Sep) • Proposed Retail Rate Changes • Lower renewable energy premium by 30% • Proposal to hold solar credit flat for energy returned to grid (less than 20% of distributed generation would be impacted) 2020 Water Rates Shifts in peaking factors (ratio of peak day demand to the average day demand) are driving these adjustments 2020 Wastewater Rates Changes in flow volumes and associated strengths of that waste are driving shifts in costs between rate classes Financial Criteria for Rate Adjustments 7 Criteria 2019 2020 1. 3 yr ave Operating Income < 0 2. Debt Coverage Ratio < 2.0 3. Available Reserves less Capital Need < 0 2.0% 2.0% Sum of Above 2.0% 2.0% 4. Lesser of 5.0% or the sum of above 2.0% 2.0% Stormwater 2019 - 2020 Residential Average Bill Utility 2019 2020 $ Change % Change Electric $ 74.64 $ 78.37 $ 3.73 5.0% Water $ 47.88 $ 48.07 $ 0.19 0.4% Wastewater $ 34.45 $ 34.24 $ (0.21)-0.6% Stormwater $ 15.73 $ 16.04 $ 0.31 2.0% Total Average Bill $ 172.70 $ 176.73 $ 4.03 2.3% Average Residential Monthly Bill Fort Collins Utilities 2019 Residential Average Bill Electric Water Wastewater Stormwater Total 2019 2019 2019 2019 2019 Longmont $ 65.25 $ 49.43 $ 33.38 $ 13.05 $ 161.11 Greeley $ 79.39 $ 57.05 $ 20.24 $ 11.76 $ 168.44 Loveland $ 77.08 $ 44.84 $ 32.33 $ 17.60 $ 171.84 Ft Collins $ 74.64 $ 47.88 $ 34.45 $ 15.73 $ 172.70 Boulder $ 79.39 $ 47.13 $ 36.87 $ 16.39 $ 179.78 Colorado Springs $ 86.43 $ 88.87 $ 29.41 N/A $ 204.71 Utilities Affordability Portfolio 11 -1- ORDINANCE NO. 125, 2019 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 AND UPDATING RELATED PROVISIONS 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, revenues 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 May 30, 2019; and WHEREAS, Utilities staff has determined the increased local distribution costs will require an additional average 5% rate increase in 2020 in order to remain consistent with Article XII, Section 6, of the City Charter; and WHEREAS, in addition to adjusting electric rates, 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 and methods of application at its September 12, 2019 regular meeting, and provided recommendations of approval of proposed rate sets to City Council; and 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 billings issued with meter readings on or after January 1, 2020; 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 as set forth herein. 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. -2- Section 2. That Section 26-391 (a) of the Code of the City of Fort Collins is hereby amended by addition of two new definitions to read as follows: … Component energy charge/credit shall mean the base rate for energy consumption or net-metered generation, which is combined with the PILOT and distribution facilities charge (where indicated) for the “billed charge” or “bill credit” reflected on a customer’s utility bill. … Billed charge shall mean the charge appearing on a residential or small commercial customer’s utility bill, reflecting the combined total of PILOT, component energy charge, and distribution facilities charge (where indicated). For other commercial services, this charge adds only PILOT to the designated component charge, as indicated in the respective rate table for the service class. Bill credit shall mean the credit appearing on a residential customer’s bill, reflecting the combined total of component energy credit and distribution facilities credit (where indicated). … Section 3. That Sections 26-464 (c), (d), (e), (f), (p), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. - Residential energy service, schedule R. . . . (c) Monthly rate. Tiered Rate - Limited-Term. The monthly rates for this schedule shall be the sum of the following charges, applied to all remote-read meter readings on or after January 1, 2019. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, as which time the time-of-day rates under subsection (2) of this Section shall apply. a. Fixed Charge Per account $6.40 b. Distribution facilities charge Per kWh $0.0283 c. Energy and demand charge 1. Summer. For billings based on meter readings during the months of June, July and August, 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 Per kWh $0.0660 b) Tier 2 - for the next five hundred (500) kilowatt hours per month Per kWh $0.0839 -3- c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.1196 2. Non-summer. For billings based on meter readings during the months of January through May and September through December. a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh Per kWh $0.0607 b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh Per kWh $0.0651 c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0744 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. Income-qualified assistance program ("IQAP") discount. Discount applied to monthly charges in "a.", "b.", and "c." for IQAP participating residential customers, as further described in Section 26-724 of the Code. 23 percent (2) Time-of-day. The monthly rates for this schedule shall be the sum of the following charges applied to all energy consumption on or after January 1, 201920. Customers enrolled in manual meter reading services as of August 31, 2018 shall be billed based on time-of- day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. Description Unit Component Charge Billed Charge (including PILOT) a. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent ab. Fixed Charge Per account $6.40 $7.55 $8.00 bc. Distribution facilities charge (applied to energy charges in d.1. and d.2. below) Per kWh $0.0217 $0.0256 cd. Wholesale Energy Charge (combined eEnergy and demand costs) charge 1. Summer. For billings based on consumption during the months of May, June, July, August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2055 $0.2183 $0.2585 -4- (b) Off-Peak Per kWh $0.0437 $0.0414 $0.0710 2. Non-summer. For billings based on consumption during the months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.2195 (b) Off-Peak Per kWh $0.0419 $0.0414 $0.0710 de. 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 $0.0183 $0.0216 $0.0229 e. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent f. Income-qualified assistance discount. Discount applied to effective monthly charges in "a.", "b.", and "c." and “d.” for IQAP participating residential customers, as further described in Section 26-724 of the Code. 23 percent (d) Medical assistance program. . . . (3) a. Durable Medical Equipment (DME) Time-of-day. The discounted monthly rates for customers with electrical durable medical equipment only shall be the sum of the following charges, applied to all energy consumption on or after January 1, 201920: Description Unit Component Charge Billed Charge (including PILOT) 1. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent 12. Fixed Charge Per account $6.40 $7.55 $8.00 3. Distribution facilities charge (applied to energy charges in 4.a) and 4.b) below) Per kWh $0.0217 $0.0256 2. Distribution facilities charge Per kWh $0.0217 -5- 34. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1439 $0.1528 $0.1891 (ii) Off-Peak Per kWh $0.0306 $0.0290 $0.0578 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1277 $0.1271 $0.1618 (ii) Off-Peak Per kWh $0.0294 $0.0290 $0.0578 45. 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 $0.0183 $0.0216 $0.0229 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 Percent (4) a. Air Conditioning (A/C) Time-of-day. The discounted monthly rates for customers with medical needs requiring air conditioning only shall be the sum of the following charges, applied to all energy consumption on or after January 1, 201920: Description Unit Component Charge Billed Charge (including PILOT) 1. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent 12. Fixed Charge Per account $6.40 $7.55 $8.00 3. Distribution facilities charge (applied to energy charges in 4.a) and 4.b) below) Per kWh $0.0217 $0.0256 2. Distribution facilities charge Per kWh $0.0217 34. Energy and demand charge -6- holidays) (ii) Off-Peak Per kWh $0.0437 $0.0414 $0.0710 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.2195 (ii) Off-Peak Per kWh $0.0419 $0.0414 $0.0710 45. 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 $0.0183 $0.0216 $0.0229 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (5) a. Durable Medical Equipment (DME) & A/C Time-of-day. 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, applied to all energy consumption on or after January 1, 201920: Description Unit Component Charge Billed Charge (including PILOT) 1. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent 12. Fixed Charge Per account $6.40 $7.55 $8.00 3. Distribution facilities charge (applied to energy charges in 4.a) and 4.b) below) Per kWh $0.0217 $0.0256 2. Distribution facilities charge Per kWh $0.0217 34. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.0437 $0.0414 $0.0710 (ii) Off-Peak Per kWh $0.0306 $0.0290 $0.0578 b) Non-summer. For billings based on consumption during the months of January through April and October through December. -7- (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1277 $0.1271 $0.1618 (ii) Off-Peak Per kWh $0.0294 $0.0290 $0.0578 45. 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 $0.0183 $0.0216 $0.0229 5. 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. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 (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. Unit Component Charge Billed Charge (including PILOT) Per kW $2.21 $2.32 $2.46 . . . (p) Net metering. . . . -8- (5) a. Tiered Rate - Limited Term. 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 from the utility consumed 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, applied to all manual-read meter readings on or after January 1, 2019. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates under subsection b. of this Section shall apply. 1. Distribution facilities credit Per kWh $0.0283 2. Energy and demand credit Per kWh $0.0660 b. Time-of-day. For The customer-generator’s on a "time-of-day" (TOD) rate, 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 from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 201920. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0217 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2055 $0.2183 $0.2400 b) Off-Peak Per kWh $0.0437 $0.0414 $0.0631 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.2032 b) Off-Peak Per kWh $0.0419 $0.0414 $0.0631 -9- . . . (r) Net metering—Community solar projects. . . . (3) a. Tiered Rate - Limited Term. Both the customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows, applied to all remote-read meter readings on or after January 1, 2019. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates under Subsection b. of this Section shall apply. 1. Distribution facilities credit Per kWh $0.0141 2. Energy and demand credit Per kWh $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" rate, tThe customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 201920. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0109 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2055 $0.2183 $0.2292 b) Off-Peak Per kWh $0.0437 $0.0523 -10- $0.0414 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.1924 b) Off-Peak Per kWh $0.0419 $0.0414 $0.0523 c. The Utilities Executive Director shall have authority to extend issuance of credits under Subsection (3)a. until December 31, 2018, as needed to comply with requirements of power supply or purchase agreements with project owners. Section 4. That Sections 26-465 (c), (e), (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 All-electric residential service, schedule RED. . . . (c) Monthly rate. (1) Tiered Rate - Limited Term. The monthly rates shall be the sum of the following charges, applied to all manual-read meter readings on or after January 1, 2019. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates in subsection (2) of this Section shall apply. a. Fixed Charge Per account $6.40 b. Demand charge Per kW $2.50 c. Distribution facilities charge Per kWh $0.0249 d. Energy charge 1. Summer. For billings based on meter readings in the months of June, July and August Per kWh $0.0461 2. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0443 3. 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 e. Payment in lieu of taxes (PILOT) and franchise. 6 percent -11- A charge based on all monthly service charges billed pursuant to this Section f. Income-qualified assistance program ("IQAP") discount. Discount applied to monthly charges in "a.", "b.", and "c." above for IQAP participating residential customers, as further described in Section 26- 724 of the Code 23 percent (2) Time of day. The monthly rates for this schedule shall be the sum of the following charges, applied to all energy consumption on or after January 1, 201920. Customers enrolled in manual meter reading services as of August 31, 2018 shall be billed based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. Description Unit Component Charge Billed Charge (including PILOT) a. Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent ab. Fixed Charge Per account $6.40 $7.55 $8.00 c. Distribution facilities charge (applied to charges in d.1. and d.2. below) Per kWh $0.0330 b. Distribution facilities charge Per kWh $0.0280 cd. Energy and demand charge 1. Summer. For billings based on consumption during the months of May, June, July and August, and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2055 $0.2183 $0.2664 b) Off-Peak Per kWh $0.0437 $0.0414 $0.0789 2. Non-summer. For billings based on consumption during the months of January through April and October through December. a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.2274 b) Off-Peak Per kWh $0.0419 $0.0414 $0.0789 3. 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 e. Payment in lieu of taxes (PILOT) and franchise. 6 percent -12- A charge based on all monthly service charges billed pursuant to this Section fe. Income-qualified assistance program ("IQAP") discount. Discount applied to monthly charges in "a.", "b.", and "c." and “d” above for IQAP participating residential customers, as further described in Section 26-724 of the Code 23 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. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 (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. Unit Component Charge Billed Charge (including PILOT) Per kW $2.21 $2.32 $2.46 (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: Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge Per kW $2.23 $2.34 $2.48 For all metered kilowatts in excess of the contracted amount Per kW $6.67 $7.00 $7.42 . . . -13- (q) Net metering. . . . (5) a. Tiered Rate - Limited Term. 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 from the utility consumed 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, applied to all manual-read meter readings on or after January 1, 2019. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates in subsection b. of this Section shall apply. 1. Distribution facilities credit Per kWh $0.0283 2. Energy and demand credit Per kWh $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" (TOD) rate, 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 from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 201920. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0279 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2055 $0.2183 $0.2462 b) Off-Peak Per kWh $0.0437 $0.0414 $0.0693 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.2094 b) Off-Peak Per kWh $0.0419 $0.0693 -14- $0.0414 (r) Net metering—community solar projects. ... (3) a. Tiered Rate - Limited Term. Both the customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed 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 the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows, applied to all manual-read meter readings on or after January 1, 2019. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates under Subsection b. of this Section shall apply. a. Distribution facilities credit Per kWh $0.0141 b. Energy and demand credit Per kWh $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" (TOD) rate, The customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all generation returned to the grid on or after January 1, 201920. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. Description Unit Component Credit Bill Credit 1. Distribution facilities credit (applied to credits in 2. and 3. below) Per kWh $0.0141 2. Energy and demand credit - For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2055 $0.2324 -15- $0.2183 b) Off-Peak Per kWh $0.0437 $0.0414 $0.0555 3. Energy and demand credit - For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1824 $0.1815 $0.1956 b) Off-Peak Per kWh $0.0419 $0.0414 $0.0555 . . . Section 5. That Sections 26-466 (c), (d), (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. . . . (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 $4.05 b. Single-phase, above two-hundred-ampere service Per account $11.95 c. Three-phase, two-hundred-ampere service Per account $6.17 d. Three-phase, above two-hundred-ampere service Per account $14.62 (2) Demand charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0278 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0170 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 $0.0275 (4) Energy charge a. Summer. For billings based on meter readings in the Per kWh $0.0461 -16- months of June, July, and August b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0443 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 Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent (2) Fixed Charge a. Single-phase, two-hundred-ampere service Per account $4.77 $5.63 b. Single-phase, above two-hundred-ampere service Per account $14.09 $16.61 c. Three-phase, two-hundred-ampere service Per account $7.27 $8.58 d. Three-phase, above two-hundred-ampere service Per account $17.24 $20.32 (3) Distribution facilities charge (added to demand and energy charges below for “Billed Charge” shown in (5)) Per kWh $0.0324 (4) Demand charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0314 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0192 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate -17- (5) Energy charge a. Summer. For billings based on meter readings in the months of June, July, August, and September Per kWh $0.0414 $0.1115 b. Non-summer. For billings based on meter readings in the months of January through May and October through December Per kWh $0.0414 $0.0986 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than four (4) full billing cycles at the summer rate (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. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 (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. Unit Component Charge Billed Charge (including PILOT) Per kW $2.21 $2.32 $2.46 . . . (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 from the utility consumed 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: -18- Description Unit Component Credit a. Energy credit for billings based on generation during the months of June, July and August, and September Per kWh $0.0461 $0.0414 (r) Net metering—community solar projects. . . . (3) Both the customer's consumption of energy from the utility and interest in the production of energy that flows into the utilities' distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed 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: Description Unit Component Credit a. Distribution facilities credit Per kWh $0.0137 ba. Energy and demand credit Per kWh $0.0461 $0.0414 Section 6. That Sections 26-467 (c), (d), (e), (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: Description Unit Component Charge Billed Charge (including PILOT) 1.Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent 12. Fixed Charge a. Single-phase, two-hundred-ampere service Per account $4.23 $4.99 $5.29 b. Single-phase, above two-hundred-ampere service Per account $12.48 $14.71 $15.60 c. Three-phase, two-hundred-ampere service Per account $6.45 $7.60 $8.06 d. Three-phase, above two-hundred-ampere service Per account $15.27 $18.00 $19.08 -19- 3. Distribution facilities charge (applied to energy charges in 5. below) Per kWh $0.0257 24. Demand charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kW $8.48 $9.69 $10.27 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kW $4.86 $5.53 $5.86 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) four (4) full billing cycles at the summer rate 3. Distribution facilities charge Per kWh $0.0275 45. Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kWh $0.0461 $0.0414 $0.0711 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kWh $0.0443 $0.0414 $0.0711 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. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 -20- (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. Unit Component Charge Billed Charge (including PILOT) Per kW $2.21 $2.32 $2.46 (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 Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge Per kW $4.05 $4.25 $4.51 For all metered kilowatts in excess of the contracted amount Per kW $12.16 $12.77 $13.53 . . . (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 from the utility consumed 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: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July and August, and September Per kWh $0.0461 $0.0414 Section 7. That Sections 26-468 (c), (d) 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. -21- . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent (12). Fixed Charge Per account $10.70 $12.62 $13.37 An additional charge may be assessed if telephone communication service is not provided by the customer Per account $47.16 (23) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kW $12.15 $13.68 $14.50 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kW $9.26 $10.39 $11.01 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) four (4) full billing cycles at the summer rate (34) Distribution facilities charge Per kW $7.37 $8.69 $9.21 (45) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kWh $0.0461 $0.0414 $0.0439 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kWh $0.0443 $0.0414 $0.0439 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 6 percent -22- pursuant to this Section (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at 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. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 (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. Unit Component Charge Billed Charge (including PILOT) Per kW $2.21 $2.32 $2.46 (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: Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge Per kW $5.20 $5.46 $5.79 For all metered kilowatts in excess of the contracted amount Per kW $15.61 $15.92 $16.87 . . . (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 -23- connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly charge shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) Contracted backup capacity per month Per kW $1.06 $1.11 $1.18 Metered kilowatts in excess of the contracted amount Per kW $3.20 $3.36 $3.56 . . . (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 from the utility consumed 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: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July, and August and September Per kWh $0.0461 $0.0414 Section 8. That Sections 26-469 (c), (d) 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: -24- Description Unit Component Charge Billed Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section 6 percent (12) Fixed Charge Per account $20.77 $24.49 $25.96 a. Additional charge for each additional metering point Per account $12.67 $14.94 $15.83 b. An additional charge may be assessed if telephone communication service is not provided by the customer Per account $53.39 (23) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kW $11.97 $13.47 $14.28 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kW $9.13 $10.23 $10.84 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) four (4) full billing cycles at the summer rate (34) Distribution facilities charge a. First seven hundred fifty (750) kilowatts Per kW $8.01 $9.44 $10.01 b. All additional kilowatts Per kW $4.73 $5.58 $5.91 (45) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kWh $0.0454 $0.0407 $0.0431 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kWh $0.0436 $0.0407 $0.0431 -25- (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. Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 (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. Unit Component Charge Billed Charge (including PILOT) Per kW $2.21 $2.32 $2.46 (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 Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.59 $3.77 $4.00 For all metered kilowatts in excess of the contracted Per kW $10.80 $12.02 -26- amount $11.34 . . . (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 rates: (1) Monthly charge. Description Unit Component Charge Billed Charge (including PILOT) Contracted backup capacity per month Per kW $0.74 $0.78 $0.82 Metered kilowatts in excess of the contracted amount Per kW $2.22 $2.33 $2.47 . . . (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: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July and August, and September Per kWh $0.0454 $0.0407 Section 9. That Sections 26-470 (c), (d), (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: Description Unit Component Billed -27- Charge Charge (including PILOT) (1) Payment in lieu of taxes (PILOT) and franchise. A charge based on all component charges pursuant to this Section. 6 percent (12) Fixed Charge Per account $49.36 $58.20 $61.69 (23) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kW $11.79 $13.27 $14.07 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kW $8.99 $10.08 $10.68 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) four (4) full billing cycles at the summer rate (34) Distribution facilities charge Per kW $4.00 $4.72 $5.00 (45) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August, and September Per kWh $0.0448 $0.0401 $0.0425 b. Non-summer. For billings based on meter readings in the months of January through May and September October through December Per kWh $0.0428 $0.0401 $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 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. -28- Unit Component Charge Billed Charge (including PILOT) Per kWh $0.025 $0.0175 $0.019 (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: Description Unit Component Charge Billed Charge (including PILOT) Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.68 $2.81 $2.98 For all metered kilowatts in excess of the contracted amount Per kW $8.03 $8.43 $8.94 . . . (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: Description Unit Bill Credit a. Energy credit for billings based on generation during the months of June, July and August, and September Per kWh $0.0448 $0.0401 Section 10. That Section 26-471 of the Code of the City of Fort Collins is hereby amended to read as follows: -29- Sec. 26-471. - Special area floodlighting, schedule FL. . . . (b) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp, mercury vapor: Description Component Charge Billed Charge (including PILOT) a. One hundred seventy-five (175) watt $17.78 $18.67 $19.79 b. Two hundred fifty (250) watt $20.94 $21.99 $23.31 c. Four hundred (400) watt $27.45 $28.82 $30.55 (2) Charge per lamp, high-pressure sodium: Description Component Charge Billed Charge (including PILOT) a. Seventy (70) watt $7.51 $7.89 $8.36 b. One hundred (100) watt $10.63 $11.16 $11.83 c. One hundred fifty (150) watt $16.81 $17.65 $18.71 d. Two hundred fifty (250) watt $21.43 $22.50 $23.85 e. Four hundred (400) watt $28.31 $29.73 $31.51 (3) Charge per lamp, LED: Description Component Charge Billed Charge (including PILOT) a. Fifty-four (54) watt $7.37 $7.74 $8.20 b. Seventy-two (72) watt $8.57 $9.00 $9.54 Section 11. That Section 26-472 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-472. - Traffic signal service, schedule T. -30- . . . (c) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and franchise) shall be the sum of the following charges: Description Unit Component Charge Billed Charge (including PILOT) (1) Fixed charge Per account $76.82 $80.66 $85.50 (2) Energy charge Per kWh $0.0714 $0.0750 $0.0795 (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation Section 12. That the modifications set forth above shall be effective for all energy consumption on or after January 1, 2020. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2019, and to be presented for final passage on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 126, 2019 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 AND UPDATING RELATED PROVISIONS 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 and 26-127 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, 2020; and WHEREAS, this Ordinance does not increase water rates for the fund as a whole, although there are variations for individual customer rates classes based on recent cost-of-service model updates; WHEREAS, the Water Board considered the proposed water-related rates, fees, and charges adjustments for 2019 at its meeting on September 19th, 2019, 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 26-118(c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-118. – Determination of user rates. . . . (c) In addition to the monthly service charges set forth in §§ 26-126 and 26-127, there shall be a charge for payments in lieu of taxes and franchise (PILOT). The charge shall be six and zero-tenths (6.0) percent of said monthly service charges billed pursuant to said §§ 26-126 and 26-127. . . . Section 3. 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: Category Component Charge Billed Charge (with PILOT) ¾-inch construction service, flat charge per month $29.44 $29.56 $31.33 1-inch construction service, flat charge per month $56.14 $56.36 $59.75 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: -3- Category Component Charge Billed Charge (with PILOT) a. Base monthly charge for residential customers with one (1) dwelling unit $16.86 $16.93 $17.94 b. Quantity monthly charge for residential customers with one (1) dwelling unit (volumetric) Tier 1 - For the first seven thousand (7,000) gallons used per month, per one thousand (1,000) gallons $2.611 $2.621 $2.779 Tier 2 - For the next six thousand (6,000) gallons used per month, per one thousand (1,000) gallons $3.000 $3.012 $3.193 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $3.451 $3.465 $3.673 c. Income-qualified assistance discount. Discount applied to monthly base and Tier 1 volumetric charges for IQAP participating residential customers in properties with one (1) dwelling unit, as further described in Section 26-724 of the Code. 23 percent (2) Residential customers with two (2) dwelling units shall pay the sum of the following charges: Category Component Charge Billed Charge (with PILOT) a. Base monthly charge for residential customers with two (2) dwelling units $17.74 $17.88 $18.95 b. Quantity monthly charge for residential customers with two (2) dwelling units (volumetric) Tier 1 - For the first nine thousand (9,000) gallons used per month, per one thousand (1,000) gallons $2.253 $2.271 $2.407 Tier 2 - For the next four thousand (4,000) gallons used per month, per one thousand (1,000) gallons $2.589 $2.610 $2.766 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $2.979 $3.003 $3.183 c. Income-qualified assistance discount. Discount applied to monthly base and Tier 1 volumetric charges for IQAP participating residential customers in properties with two (2) dwelling units, as further described in Section 26-724 of the -4- (3) Residential customers with more than two (2) dwelling units shall pay the sum of the following charges: Category Component Charge Billed Charge (with PILOT) a. Base monthly charge for residential customers with more than two (2) dwelling units First dwelling unit $12.75 $12.86 $13.64 Second and each additional dwelling unit $4.24 $4.28 $4.53 b. Quantity monthly charge for residential customers with more than two (2) dwelling units (volumetric) Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.853 $1.870 $1.982 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.316 $2.337 $2.477 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. c. Income-qualified assistance discount. A discount applied to the monthly base and volumetric charges above for IQAP participating residential customers in properties with more than two (2) dwelling units who hold water and wastewater service accounts in their own names, subject to Section 26- 724 of the Code. 23 percent (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 Billed Charge (with PILOT) ¾ $15.26 $15.06 $15.97 1 $42.57 $42.02 $44.54 1½ $115.75 $114.25 $121.10 2 $174.44 $172.17 $182.50 3 $266.06 $262.60 $278.36 -5- 4 $417.69 $412.26 $437.00 6 $810.27 $799.74 $847.72 8 $1,431.42$1,412.81 $1,497.58 (2) Quantity charges. Nonresidential customers shall pay monthly charges as follows: Category Component Charge Billed Charge (with PILOT) Winter - per one thousand (1,000) gallons used in the winter season months of November through April $2.123 $2.095 $2.221 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.653 $2.619 $2.776 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: Category Component Charge Billed Charge (with PILOT) Winter - per one thousand (1,000) gallons used in the winter season months of November through April $3.050 $3.010 $3.191 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $3.815 $3.765 $3.991 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. . . . (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 Billed Charge (with -6- PILOT) 1.00—1.09 $1.66 $1.64 $1.74 1.10—1.19 $1.72 $1.70 $1.80 1.20—1.29 $1.78 $1.76 $1.86 1.30—1.39 $1.83 $1.81 $1.91 1.40—1.49 $1.89 $1.87 $1.98 1.50—1.59 $1.94 $1.91 $2.03 1.60—1.69 $2.00 $1.97 $2.09 1.70—1.79 $2.06 $2.03 $2.16 1.80—1.89 $2.11 $2.08 $2.21 1.90—1.99 $2.18 $2.15 $2.28 > 2.00 $2.23 $2.20 $2.33 (d) Service outside the City. The monthly charge for water taken through a meter by a user outside the City limits shall be the same as for like service within the City limits as specified in Subsections (a) and (b) of this Section. (e) Rates by special water services agreement. The rate structure and associated charges for water service pursuant to a special water services agreement approved by the City Council pursuant to Section 26-130 shall be as set forth in said agreement. Section 4. That the modifications set forth above shall be effective for meter readings on or after January 1, 2020, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2020. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2019, and to be presented for final passage on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk -7- Passed and adopted on final reading on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 127, 2019 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 recommended to the City Council adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective January 1, 2020; and WHEREAS, this Ordinance does not increase wastewater rates for the fund as a whole, although there are variations for individual customer rates classes based on recent cost-of-service model updates; and WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and charges adjustments for 2020 at its meeting on September 19, 2019, 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 26-277(c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-277.- Determination of user rates; annual adjustment. . . . (c) In addition to the monthly service charges set forth in §§ 26-279, 26-280 and 26-282, there shall be a charge for payments in lieu of taxes and franchise (PILOT). The charge shall be six and zero-tenths (6.0) percent of said monthly service charges billed pursuant to said §§ 26-279, 26-280 and 26-282. Section 3. 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 Component Charge Billed Charge (with PILOT) A Single-family residential user (flat rate) Per month $40.05$39.81 $42.20 Single-family residential user (metered water use) 1. Per month (base) $17.90$17.79 $18.86 2. Plus, per 1,000 gallons per month (volumetric) $3.477$3.456 $3.664 3. Income-qualified assistance discount. Discount applied to monthly base and volumetric charges for IQAP participating residential 23 percent -3- customers, as further described in Section 26- 724 of the Code. Note: 1. For single family customers who have not yet established a winter quarter water use at the service address, a system average of 4,000 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) 1. Per month (base) $55.41 $55.47 $58.79 2. Income-qualified assistance discount. Discount applied to monthly base charge for IQAP participating residential customers, as further described in Section 26-724 of the Code. 23 percent Duplex (two-family) residential users (metered water use) 1. Per month (base) $20.52 $20.54 $21.77 2. Plus, per 1,000 gallons per month, to be calculated on a monthly basis (volumetric) $3.081 $3.084 $3.269 3. Income-qualified assistance discount. Discount applied to monthly base and volumetric charges for IQAP participating residential customers, as further described in Section 26- 724 of the Code. 23 percent Note: 1. For duplex customers who have not yet established a winter quarter water use at the service address, a system average 6,200 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. -4- C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user 1. Base charge per month per dwelling unit served (base) $2.75 $2.79 $2.96 2. Plus, per 1,000 gallons per month (volumetric) $3.498 $3.547 $3.760 3. Income-qualified assistance discount. Discount applied to monthly base and volumetric charges for IQAP participating residential customers in properties with more than two (2) dwelling units who hold water and wastewater service accounts in their own names, subject to Section 26-724 of the Code. 23 percent Note: 1. For multi-family customers who have not yet established a winter quarter water use at the service address, a system average of 3,200 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: $3.293 $3.342 $3.543 2. Size of water meter (inches) Base charge ¾ or smaller $9.50 $9.64 $10.22 1 $21.93 $22.26 $23.59 1½ $44.14 $44.80 $47.49 -5- 2 $75.53 $76.66 $81.26 3 $120.69 $122.50 $129.85 4 $190.60 $193.46 $205.07 6 $835.55 $848.08 $898.97 8 $964.76 $979.23 $1,037.99 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; $3.293 $3.342 $3.543 2. PLUS a surcharge per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; $3.830 $3.887 $4.121 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 $3.191 $3.239 $3.433 b. per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter; or $2.014 $2.044 $2.167 c. per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, $5.963 $6.052 $6.416 whichever is applicable. The user shall pay the calculated amount based -6- on 1, 2 and 3 above, plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $9.50 $9.64 $10.22 1 $21.93 $22.26 $23.59 1½ $44.14 $44.80 $47.49 2 $75.53 $76.66 $81.26 3 $120.69 $122.50 $129.85 4 $190.60 $193.46 $205.07 6 $835.55 $848.08 $898.97 8 $964.76 $979.23 $1,037.99 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. -7- Section 4. 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 Billed Charge (with PILOT) BOD 355 $0.003452 $0.003504 $0.003714 COD 540 $0.002269 $0.002303 $0.002441 TOC 170 $0.007208 $0.007316 $0.007755 TSS 365 $0.003474 $0.003526 $0.003738 . . . Section 5. That the modifications set forth above shall be effective for meter readings on or after January 1, 2020, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2020. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2019, and to be presented for final passage on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2019. __________________________________ ATTEST: Mayor _______________________________ City Clerk -1- ORDINANCE NO. 128, 2019 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 citywide master plans recommending stormwater facilities necessary to provide for proper drainage and control of flood and surface waters within Fort Collins; 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 reflects an increase of 2.0%; and WHEREAS, the Water Board considered the proposed stormwater utility fee adjustments at its meeting on September 19th, and recommended approval of the proposed adjustments; and WHEREAS, pursuant to City Code Section 26-511, the City Manager recommends the proposed stormwater utility fee for 2020; 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 $0.00444 $0.00453 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, 2020. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2019, and to be presented for final passage on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Code. 23 percent 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 a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding Per kWh $0.0437 $0.0414 $0.0710 mailing.