HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/05/2019 - ITEMS RELATING TO 2020 UTILITY RATESAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY November 5, 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. Second 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. Second 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. Second 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. Second 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.
These Ordinances, unanimously adopted on First Reading on October 15, 2019, adjust 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 Second Reading.
BACKGROUND / DISCUSSION
Five items from First Reading of 2020 Utility Rates were identified for staff to provide follow-up. These are
summarized below, along with responses from staff.
1. Question about whether this rate increase was independent of the TOD rate structure and tiered
rates. Council still expects a full report on usage patterns and what bills were as a result of these
changes.
RESPONSE: The 5% electric rate increase is independent of the rate structure change and was incorporated
into the 2019-2020 budget cycle prior to deployment of the TOD rate structure. The rate increase is necessary
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to increase operating revenue enough to offset operating expenses, so that reductions in reserves does not
continue and funds can be set aside for future capital improvements.
The transition to time-of-day (TOD) rates for residential customers occurred one year ago, in October 2018.
Staff is planning to compile the full year of data, summarize both financial and consumption impacts related to
the rate structure change, and provide to City Council in 1st quarter of 2020.
2. Concern that it is not obvious to the average layperson how rates are equitable. Need to do more
work to educate on this. Request for additional documentation on this prior to second reading.
RESPONSE: Staff provided a memo to the City Manager regarding this topic on September 26, which
highlights cost differences between rate classes for electric and water. (Attachment 2)
Rate brochures are provided to customers annually, typically mailed in December, and include information
regarding rate changes. There is also information for customers on our website regarding rates, at
<https://www.fcgov.com/utilities/residential/rates>, and information on utility rates allocation, at
<https://www.fcgov.com/utilities/residential/rates/utility-rates-allocation/>.
3. Council Finance Committee requested a new chart that demonstrates rate impacts for customers
who do not live within the Fort Collins water utility territory. Request that this be provided prior to
Second Reading.
RESPONSE: Staff has compiled a graph below that shows costs for customers that live in different parts of the
city, where some services may be provided by a bordering water and/or wastewater district instead of Fort
Collins Utilities. The costs for water and wastewater services in these areas do vary depending on the district.
Those customers that live in south Fort Collins and are served by Fort Collins/Loveland Water District and
South Fort Collins Sanitation District have the lowest combined costs, at $160.75 per month. Those customers
that receive all four services from Fort Collins Utilities have a slightly higher combined cost at $172.70 per
month. Customers in the northwest part of the city that are served by West Fort Collins Water District are the
next highest at $193.22 per month. And those customer in the northeast part of the city, and served by
Boxelder Sanitation and ELCO Water, are the highest at $205.10 per month for all four services.
Final approved 2020 rate increases for each of the bordering districts were not available to show 2020 rate
comparisons, therefore 2019 rates were used.
A map is provided as Attachment 3 showing the area of Fort Collins where customers receive all for services
from Fort Collins Utilities and the area where customers are served by bordering districts.
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In the Council First Reading material, the following table used an average electric rate increase of 5.0% to
show the year-over-year rate comparison for Fort Collins Utilities’ residential customers, while the actual
impact for these customers is 5.2%. This table has been modified below. This changes the average monthly
bill by 15 cents and increases the blended impact from 2.3% to 2.4% overall.
Utility 2019 2020 $ Change % Change
Electric $ 74.64 $ 78.52 $ 3.88 5.2%
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 $ 176.88 $ 4.18 2.4%
Comparative Residential Monthly Bill
Fort Collins Utilities
Additionally, the 2019 electric average amount shown above was calculated using TOD rates, where the 2019
average used in prior year material (i.e. rate brochure sent to customers in Dec 2018 for 2019 rates) was
calculated using the residential tiered rate structure. Minor differences arise as an estimate for average “on-
peak” consumption is used, which factors into the amount for the TOD calculation. This causes variations
between estimates and actuals for a given year, given on-peak percentages will fluctuate. Staff provides rate
comparisons to be representative of a typical residential customer’s bill but realizes there are varying factors
that come into play when trying to compare rates to other communities and bordering districts.
4. Question about whether we have any way for consumers to have a device that can show where
they are with consumption/usage. Do we provide information on this that is easy for customers to
find?
RESPONSE: Utilities offers several options for customers to view their electricity use in detail so that they can
better understand and manage their home usage in response to time of day pricing.
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• Monitor-My-Use is a free online tool for customers. By setting up an online profile with Fort Collins Utilities
you have access to this free tool that allows viewing of your electricity and water usage on a daily basis.
<https://www.fcgov.com/utilities/manage-your-account/monitor-my-use>
• In partnership with the Poudre River District Public Library, customers can check out a Home Energy
Monitor via the library’s loan program. Patrons of the Library can check out a device and by making a
phone call to the Peak Partners program during which they identify the loaner device a signal is sent to the
electric meter in their home to “pair” with the electric meter. This device can wirelessly connect with a Fort
Collins Light and Power electric meter (no electrician installation is needed) for near-real time readout of
the whole house energy consumption. Users can then turn on/off different appliances and get near-
instantaneous (less than 10 sec) feedback of the electricity use.
• Customers can also purchase their own home energy monitor which can link to the electric meter in the
same way as the library loan program. Fort Collins Utilities strongly recommends that customers check out
a unit from the library before purchasing their own Home Energy Monitor to confirm successful pairing with
the meter, as there could be radio range or Wi-Fi interference issues. Given the large variety of make and
models of Home Energy Monitors in the market, Fort Collins Utilities cannot guarantee all of them will work
with the electric meter. If a customer wants to purchase their own Home Energy Monitor, the “Rainforest
EMU-2” (same model as the library owns) have been tested and verified for compatibility and cybersecurity
requirements. More information on purchasing and setting up a home energy monitor is available at
<https://www.peakpartnersfortcollins.com/how_home_energy_monitor_program_works>
5. Question about the increase for IQAP and whether this would be in line with cost of living
increases.
RESPONSE: Income Qualified Assistance Program (IQAP) customers will continue to receive a 23% rate
reduction for applicable services and will also receive direct assistance from the Low-Income Energy
Assistance Program (LEAP). More customers are likely to qualify for LEAP (and therefore IQAP) due to new
requirements for LEAP eligibility which changed from income limits of up to 165% of federal poverty level index
to up to 60% of state median income level. The LEAP office estimates a 15% increase in LEAP eligible
participants at the state level.
In addition to the rate reduction from IQAP and the direct assistance provided through LEAP, IQAP customers
are eligible to receive indirect conservation and efficiency services and upgrades at no cost though the Larimer
County Conservation Crops, the Colorado Affordable Residential Energy Program and/or the Weatherization
Assistance Program (WAP). However, staff can evaluate how IQAP can be calculated based on cost-of-living
going forward and present findings to Council as part of the TOD analysis first quarter 2020.
ATTACHMENTS
1. First Reading Agenda Item Summary, October 15, 2019 (w/o attachments) (PDF)
2. Memo Explaining Customer Classes with Higher Blended Costs, September 26, 2019 (PDF)
3. Fort Collins Utilities Service Areas (PDF)
4. 2018 Electric Cost of Service Model Update (PDF)
5. Ordinance No. 125, 2019 (PDF)
6. Ordinance No. 126, 2019 (PDF)
7. Ordinance No. 127, 2019 (PDF)
8. Ordinance No. 128, 2019 (PDF)
Agenda Item 11
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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.
ATTACHMENT 1
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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.
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
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
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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.
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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
mailing.
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
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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.
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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
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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.
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.
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.
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
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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.
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.
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
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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.
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.
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
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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.
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.
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
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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 202 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)
Utility 2019 2020 $ Change % Change
Electric $64 74.$37 78.$ 3.73 5.0%
Water $ 47.88 $07 48.$ 0.19 0.4%
Wastewater $45 34.$24 34.$ (0.21)‐0.6%
Stormwater $ 15.73 $04 16.$ 0.31 2.0%
Total Average Bill $ 172.70 $73 176.$ 4.03 2.3%
Average Residential Monthly Bill
Fort Collins Utilities
M E M O R A N D U M
DATE: September 26, 2019
TO: Darin Atteberry, City Manager
FROM: Randy Reuscher, Lead Analyst, Utility Rates
THROUGH: Kevin R. Gertig, Utilities Executive Director
Lance Smith, Director, Financial Planning & Analysis
RE: Utility Rates - Explanation of Customer Classes with Higher Blended Costs
Bottom line:
The tables below summarize the per kilowatt-hour and per thousand-gallon charges by rate class.
Background
As the tables above show, the overall blended cost for providing electric and water services to
utility customers vary between rate classes. This variation is attributable to the allocation of
costs between the rate classes through the various fixed and variable charges. This allocation of
costs is done through a Cost of Service (COS) study every 2 years to ensure costs are shared
equitably between rate classes.
2018 Blended
Electric Rate Class Charge / kWh
Residential 10.4 cents
Small Commercial 9.7 cents
Mid-size Commercial 8.8 cents
Large Commercial 8.2 cents
Industrial 6.9 cents
Substation 6.5 cents
2018 Blended
Water Rate Class Charge / 1,000 Gallons
Residential $5.30
Small Commercial $4.00
Large Commercial $2.80
Industrial $1.90
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
ATTACHMENT 2
The most significant differences between the rate class charges are:
1) Load factors are the main driver for differences in unit costs for each rate class.
Each class consists of customers with similar load factors, which is the ratio of the peak
day demand to the average daily demand. The amount of infrastructure needed to serve a
rate class is a function of the rate class’s load factor. Some rate classes utilize more
infrastructure to provide them services than other rate classes. For example, the cost to
serve residential customers with electric service is higher, on a per unit basis, than the
cost to serve industrial customers because industrial customers typically own their own
distribution transformers and require less, if any, secondary cable to serve them.
2) Customers only pay for the infrastructure needed to serve them. An industrial
electric customer that pulls electricity directly from the substation, for example, does not
use the local distribution system, whereas a residential or small commercial relies on the
distribution system to get electricity from the substation to their home or business.
Therefore, there are different cost allocations to each of the customer classes.
3) Component Charges – Component charges are not a factor in determining “how much”
revenue should be collected from a rate class but is something to be considered if trying
to compare the base kWh charge for one class to the kWh charge of another class. While
each electric rate class is allocated both energy and demand costs, some rate classes are
billed these costs through only an energy component (residential customers), while others
classes have these costs broken out into an energy component, a demand component, and
a coincident peak component (large commercial/industrial customers), or some variation
of the above. If one only considers a portion of the total charges to a rate class, such as
only considering energy costs, an inaccurate picture emerges.
If there is a desire for additional information regarding varying unit costs for electric and water
services amongst rate classes, please let me know and more details can be provided. I have
attached a short overview of the last Electric Cost of Service study, completed in 2018.
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
S Taft Hill Rd
Laporte Ave
Giddings Rd
S County Road 19
E County Road 54
N Taft Hill Rd
Main St
N County Road 5
S County Road 5
E Vine Dr
Ziegler Rd
S Lemay Ave
E Douglas Rd
S College Ave
W
C
o
u
n
ty R
o
a
d
3
8
E
E County Road 52
Strauss Cabin Rd
S Shields St
E Mulberry St
N Shields St
E Mulberry St
E Vine
Dr
S County Road 5
Ziegler Rd
S Shields St
Legend
Customers Receiving 4 Fort Collins Utility Services (69,290)
Customers Receiving 1,2 or 3 Fort Collins Utility Services (19,640)
City Limits
Growth Management Area
FORT COLLINS UTILITIES
SERVICE AREA ATTACHMENT 3
1
Utilities
electric · stormwater · wastewater · water
700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
970.224.6003 – TDD
utilities@fcgov.com
fcgov.com/utilities
2018 Electric Cost-of-Service (COS) Model Update
Utility staff recently completed the electric cost of service (COS) study update in 2018 (last
updated in 2016) to determine necessary changes for 2019.
The City of Fort Collins Utilities Financial Management Policies 4.2.a.2 states:
“Utility rates will be based upon the cost-of-service approach to reflect full
distribution costs to appropriate rate classes in order to effect equitable sharing of costs”
To accommodate this requirement, a COS study is undertaken every two years to determine if
current revenue generated by each customer class is within reasonable bounds of its cost to
serve and, if not, to make recommendations to correct this difference. In addition, a COS study
provides data on various disaggregated cost elements for analyzing the impacts of customer
behavior and setting customer specific contract rates.
The methodology used to perform the 2018 COS study is in accordance with the general
approach taught by the American Public Power Association (APPA) and the National Association
of Regulatory Utility Commissioners (NARUC) cost allocation manual.
The electric model was reviewed externally by NewGen Strategies, in 2016, to ensure allocation
methods being used are consistent with standard practice within the electric industry.
BACKGROUND
The COS study consists of the following steps:
Determine Revenue Requirements
Revenue requirements are determined in the budget process. For 2019, it was determined
a 5% overall revenue increase was necessary for the City of Fort Collins Light and Power
Utility to operate and maintain its distribution system and meet a wholesale rate increase,
as well as incorporate additional funding for energy services programs.
Functionalization of System Costs
Functionalization is the arrangement of costs according to functions performed by the Light
and Power Utility such as substations, circuits, transformers, services, meters and customer
accounts. The Utility uses Federal Energy Regulatory Commission (FERC) accounting
numbers, which help to categorize plant-in-service assets, depreciation, operations and
maintenance (O&M) and construction-in-progress costs. This step is necessary to allocate
the functionalized costs to the customer classes.
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
ATTACHMENT 4
2
Load Analysis
The 2018 COS study uses actual load data to develop allocation factors based on customer
class load patterns. Key elements are -
Hourly demands of the customer class at the time of the monthly coincident system
peak are used to allocate wholesale demand costs.
Hourly demands of the customer class at the time of the monthly maximum peak
are used to allocate distribution facilities costs.
Fort Collins charges a coincident peak rate for medium and large commercial customer
classes, and in addition, has AMI metering to collect interval data on customers in the
remaining customer classes, which provides complete data for all facets of the load analysis
for the COS study.
2019 Rate Recommendations
A COS model is detailed and methodological and the outputs serve as a guide to adjusting the
cost burdens among customer classes.
The overall revenue increase proposed for 2019 is 5.0% at the retail level
3.6% is related to distribution system increases
1.4% is related the PRPA wholesale increase
The following chart summarizes the COS results and the recommended rate changes:
The rate class adjustments incorporate the wholesale and distribution components. The
contributions are displayed in the table below. The impacts vary slightly by rate class, ranging
from 1.3% to 1.8% for wholesale expenses and from 3.3% to 3.9% for distribution expenses.
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
3
Expenses for the utility are recovered through monthly billing charges. Approximately 72% of
total utility costs are associated with wholesale expenses for purchased power energy and
purchased power demand, which covers the generation and transmission aspects of providing
electric service. The remaining costs are associated with the distribution utility, which are
broken out in the graph below, as a percentage of total costs, and make up the other 28% of
total utility costs.
Capital projects vary significantly from year to year. To level these expenses, a 10-year average,
including 5 years of historical data and 5 years of projected budget data, is used. From this, the
average depreciation is subtracted and the result (known as capital in-excess of depreciation) is
functionalized using existing depreciation allocations. This value represents those capital
expenses necessary, beyond routine replacement levels, to keep the system operational.
The revenue generated from each rate class is shown in the graph below.
Rate Class
Wholesale
Costs
Distribution
Costs
Overall
Increase
Residential 1.3% 3.5% 4.8%
Small Commercial 1.4% 3.7% 5.1%
Mid-sized Commercial 1.5% 3.9% 5.4%
Large Commercial 1.6% 3.7% 5.3%
Industrial 1.8% 3.3% 5.1%
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
4
Utility systems are built to deliver service to all customers at any given time and approximately
72% of the utility budget is for the operation, maintenance and debt of the generation,
transmission and distribution facilities of this system. Costs related to generation and
transmission are contained within the energy and demand charges of the wholesale rate.
To appropriately allocate costs related to the wholesale demand costs, customer class hourly
demands at the time of Platte River Power Authority’s monthly system peaks must be
incorporated. In addition, costs related to the distribution facilities are allocated using the
estimated customer class contribution to the sum of the customer class maximum peaks. This
latter calculation is the proxy for evaluating customer class demands upon the distribution main
feeder circuits and substations.
The utility has adopted a coincident peak contribution rate structure for medium and large
commercial customer classes. These two classes account for approximately one-half of the
system energy use. To administer this rate, hourly data for each customer in these classes is
collected, which provides accurate data for these customers’ peak contributions to both the
system monthly peaks, as shown in the graph below, as well as the sum of the customer class
maximum peaks.
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
5
The traffic signal, street lighting and floodlighting classes’ demand contributions are
determined using load calculations and assuming coincidence with summer and winter peak
times.
The remaining classes’ (Residential, Residential Demand, General Service and General Service
25) load data is available through the AMI hourly data we now have as a result of the AMI
metering project. In addition to these demand estimates, we can also accurately estimate the
maximum monthly aggregate demand for each customer class necessary for developing
allocation factors for allocating many of our distribution facilities related costs.
After it is determined how much should be collected from each rate class, based on the COS
outputs, adjustments are made to billing determinants to complete the process.
By utilizing an industry standard approach to cost allocation, the utility is able to ensure that
each rate class is contributing fairly to the utility.
DocuSign Envelope ID: 99DB2361-FF68-420A-8E2F-EA495C47565B
-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. The monthly rates for this schedule shall be the sum of the following
charges applied to all energy consumption on or after January 1, 2020.
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
b. Fixed Charge
Per
account
$7.55 $8.00
c. Distribution facilities charge (applied to energy
charges in d.1. and d.2. below)
Per kWh $0.0256
d. Wholesale Energy Charge (combined energy and demand costs)
1. Summer. For billings based on consumption during the months of May, June, July, August,
and September
-3-
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per kWh
$0.2183 $0.2585
(b) Off-Peak Per kWh $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
$0.1815 $0.2195
(b) Off-Peak Per kWh $0.0414 $0.0710
e. 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
$0.0216 $0.0229
f. Income-qualified assistance discount. Discount applied to
effective monthly charges in "a.", "b.", "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). 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, 2020:
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
Per
account
$7.55 $8.00
3. Distribution facilities charge (applied to energy
charges in 4.a) and 4.b) below)
Per kWh
$0.0256
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July, August,
and September
-4-
(i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per kWh
$0.1528 $0.1891
(ii) Off-Peak Per kWh $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
$0.1271 $0.1618
(ii) Off-Peak Per kWh $0.0290 $0.0578
5. 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
$0.0216 $0.0229
(4) a. Air Conditioning (A/C). 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, 2020:
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
Per
account
$7.55 $8.00
3. Distribution facilities charge (applied to
energy charges in 4.a) and 4.b) below)
Per kWh $0.0256
4. 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 0.0414 $0.0710
(ii) Off-Peak Per kWh $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 $0.1815 $0.2195
(ii) Off-Peak Per kWh $0.0414 $0.0710
-5-
5. 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 $0.0216 $0.0229
(5) a. Durable Medical Equipment (DME) & A/C. 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, 2020:
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
Per
account
$7.55 $8.00
3. Distribution facilities charge (applied to
energy charges in 4.a) and 4.b) below)
Per kWh $0.0256
4. 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 $0.0414 $0.0710
(ii) Off-Peak Per kWh $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 $0.1271 $0.1618
(ii) Off-Peak Per kWh $0.0290 $0.0578
5. 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 $0.0216 $0.0229
. . .
(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
-6-
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 $0.0175 $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 $2.32 $2.46
. . .
(p) 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 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, 2020.
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 $0.2183 $0.2400
b) Off-Peak Per kWh $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
-7-
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1815 $0.2032
b) Off-Peak Per kWh $0.0414 $0.0631
. . .
(r) Net metering—Community solar projects.
. . .
(3) 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, 2020.
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 $0.2183 $0.2292
b) Off-Peak Per kWh $0.0414 $0.0523
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 $0.1815 $0.1924
b) Off-Peak Per kWh $0.0414 $0.0523
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. - All-electric residential service, schedule RE.
. . .
(c) Monthly rate.
(1) The monthly rates for this schedule shall be the sum of the following charges, applied to
all energy consumption on or after January 1, 2020.
-8-
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
b. Fixed Charge Per account $7.55 $8.00
c. Distribution facilities charge (applied to
charges in d.1. and d.2. below)
Per kWh $0.0330
d. 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
$0.2183 $0.2664
b) Off-Peak Per kWh $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
$0.1815 $0.2274
b) Off-Peak Per kWh $0.0414 $0.0789
e. Income-qualified assistance program ("IQAP") discount.
Discount applied to monthly charges in "b.", "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 $0.0175 $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.
-9-
Unit
Component
Charge
Billed Charge
(including
PILOT)
Per kW $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 $2.34 $2.48
For all metered kilowatts in excess of the
contracted amount
Per kW $7.00 $7.42
. . .
(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 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, 2020.
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 $0.2183 $0.2462
b) Off-Peak Per kWh $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 $0.1815 $0.2094
-10-
b) Off-Peak Per kWh $0.0414 $0.0693
(r) Net metering—community solar projects.
...
(3) 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, 2020.
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 $0.2183 $0.2324
b) Off-Peak Per kWh $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 $0.1815 $0.1956
b) Off-Peak Per kWh $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:
-11-
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
(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
-12-
(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 $0.0175 $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 $2.32 $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:
Description Unit Component Credit
a. Energy credit for billings based on generation
during the months of June, July, August, and
September
Per kWh $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:
-13-
Description Unit
Component
Credit
a. Energy and demand credit Per kWh $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
2. Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $4.99 $5.29
b. Single-phase, above two-hundred-ampere service Per account $14.71 $15.60
c. Three-phase, two-hundred-ampere service Per account $7.60 $8.06
d. Three-phase, above two-hundred-ampere service Per account $18.00 $19.08
3. Distribution facilities charge (applied to energy
charges in 5. below)
Per kWh $0.0257
4. Demand charge
a. Summer. For billings based on meter readings
in the months of June, July, August, and
September
Per kW $9.69 $10.27
b. Non-summer. For billings based on meter
readings in the months of January through May
and October through December
Per kW $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
four (4) full billing cycles at the summer rate
5. Energy charge
-14-
a. Summer. For billings based on meter readings
in the months of June, July, August, and
September
Per kWh $0.0414 $0.0711
b. Non-summer. For billings based on meter
readings in the months of January through May
and October through December
Per kWh $0.0414 $0.0711
(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 $0.0175 $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 $2.32 $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 $4.25 $4.51
For all metered kilowatts in excess of the
contracted amount
Per kW $12.77 $13.53
. . .
(r) Net metering .
-15-
. . .
(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, August, and September
Per kWh $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.
. . .
(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
(2). Fixed Charge Per account $12.62 $13.37
(3) Coincident demand charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kW $13.68 $14.50
b. Non-summer. For billings based on meter readings
in the months of January through May and October
through December
Per kW $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 four (4) full billing
cycles at the summer rate
(4) Distribution facilities charge Per kW $8.69 $9.21
(5) Energy charge
-16-
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kWh $0.0414 $0.0439
b. Non-summer. For billings based on meter readings
in the months of January through May and October
through December
Per kWh $0.0414 $0.0439
(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 $0.0175 $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 $2.32 $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 $5.46 $5.79
For all metered kilowatts in excess of the contracted
amount
Per kW $15.92 $16.87
-17-
. . .
(g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit
capacity for the purpose of controlling the available electric capacity of a backup circuit
connection, this service, if available, will be provided on an annual contract basis at a level at
least sufficient to meet probable backup demand (in kilowatts) as determined by the customer
and approved by the utility according to the following:
(1) 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 $1.11 $1.18
Metered kilowatts in excess of the contracted amount Per kW $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, August and September
Per kWh $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:
-18-
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 Per account $24.49 $25.96
a. Additional charge for each additional metering
point
Per account $14.94 $15.83
(3) Coincident demand charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kW $13.47 $14.28
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kW $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 four (4) full
billing cycles at the summer rate
(4) Distribution facilities charge
a. First seven hundred fifty (750) kilowatts Per kW $9.44 $10.01
b. All additional kilowatts Per kW $5.58 $5.91
(5) Energy charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kWh $0.0407 $0.0431
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kWh $0.0407 $0.0431
(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.
-19-
Unit
Component
Charge
Billed
Charge
(including
PILOT)
Per kWh $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 $2.32 $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 $3.77 $4.00
For all metered kilowatts in excess of the contracted
amount
Per kW $11.34 $12.02
. . .
(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.
-20-
Description Unit
Component
Charge
Billed
Charge
(including
PILOT)
Contracted backup capacity per month Per kW $0.78 $0.82
Metered kilowatts in excess of the contracted amount Per kW $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, August, and September
Per kWh $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
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 Per account $58.20 $61.69
(3) Coincident demand charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kW $13.27 $14.07
-21-
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kW $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 four (4) full
billing cycles at the summer rate
(4) Distribution facilities charge Per kW $4.72 $5.00
(5) Energy charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kWh $0.0401 $0.0425
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kWh $0.0401 $0.0425
(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.
Unit
Component
Charge
Billed
Charge
(including
PILOT)
Per kWh $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 $2.81 $2.98
-22-
For all metered kilowatts in excess of the contracted
amount
Per kW $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, August, and September
Per
kWh
$0.0401
Section 10. That Section 26-471 of the Code of the City of Fort Collins is hereby
amended to read as follows:
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
$18.67 $19.79
b. Two hundred fifty (250) watt $21.99 $23.31
c. Four hundred (400) watt $28.82 $30.55
(2) Charge per lamp, high-pressure sodium:
-23-
Description
Component
Charge
Billed Charge
(including
PILOT)
a. Seventy (70) watt $7.89 $8.36
b. One hundred (100) watt $11.16 $11.83
c. One hundred fifty (150) watt $17.65 $18.71
d. Two hundred fifty (250) watt $22.50 $23.85
e. Four hundred (400) watt $29.73 $31.51
(3) Charge per lamp, LED:
Description
Component
Charge
Billed Charge
(including
PILOT)
a. Fifty-four (54) watt $7.74 $8.20
b. Seventy-two (72) watt $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.
. . .
(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 $80.66 $85.50
(2) Energy charge Per kWh $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.
-24-
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 $29.56 $31.33
1-inch construction service, flat charge per month $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
$16.93 $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
$2.621 $2.779
Tier 2 - For the next six thousand (6,000) gallons used per
month, per one thousand (1,000) gallons
$3.012 $3.193
Tier 3 - For all additional gallons used per month, per one
thousand (1,000) gallons
$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
$17.88 $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
$2.271 $2.407
Tier 2 - For the next four thousand (4,000) gallons used per
month, per one thousand (1,000) gallons
$2.610 $2.766
Tier 3 - For all additional gallons used per month, per one
thousand (1,000) gallons
$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
Code.
23 percent
-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 $12.86 $13.64
Second and each additional dwelling unit $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
$1.870 $1.982
Summer - per one thousand (1,000) gallons used in the
summer season months of May through October
$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 $15.06 $15.97
1 $42.02 $44.54
1½ $114.25 $121.10
2 $172.17 $182.50
3 $262.60 $278.36
-5-
4 $412.26 $437.00
6 $799.74 $847.72
8 $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
$2.095 $2.221
Summer - per one thousand (1,000) gallons used in the
summer season months of May through October
$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
$3.010 $3.191
Summer - per one thousand (1,000) gallons used in the
summer season months of May through October
$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:
-6-
Peaking Factor
Monthly Charge per
Thousand Gallons
Billed Charge (with
PILOT)
1.00—1.09 $1.64 $1.74
1.10—1.19 $1.70 $1.80
1.20—1.29 $1.76 $1.86
1.30—1.39 $1.81 $1.91
1.40—1.49 $1.87 $1.98
1.50—1.59 $1.91 $2.03
1.60—1.69 $1.97 $2.09
1.70—1.79 $2.03 $2.16
1.80—1.89 $2.08 $2.21
1.90—1.99 $2.15 $2.28
> 2.00 $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.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
-2-
Section 1. That the City Council hereby makes any and all determinations and findings
contained in the recitals set forth above.
Section 2. That Section 26-277(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 $39.81 $42.20
Single-family
residential user
(metered water use)
1. Per month (base) $17.79 $18.86
2. Plus, per 1,000 gallons per month
(volumetric)
$3.456 $3.664
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
-3-
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) $55.47 $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) $20.54 $21.77
2. Plus, per 1,000 gallons per month, to be
calculated on a monthly basis (volumetric)
$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.
C
Multi-family
residential user (more
than two dwelling units
including mobile home
1. Base charge per month per dwelling unit
served (base)
$2.79 $2.96
2. Plus, per 1,000 gallons per month (volumetric) $3.547 $3.760
-4-
parks) and winter
quarter based
nonresidential user
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:
$3.342 $3.543
2. Size of water meter (inches) Base charge
¾ or smaller $9.64 $10.22
1 $22.26 $23.59
1½ $44.80 $47.49
2 $76.66 $81.26
3 $122.50 $129.85
4 $193.46 $205.07
6 $848.08 $898.97
-5-
8 $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;
$3.342 $3.543
2. PLUS a surcharge per million gallons for each
milligram per liter of suspended solids in excess
of 235 milligrams per liter;
$3.887 $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
$3.239 $3.433
b. per million gallons for each milligram per liter
of COD in excess of 400 milligrams per liter; or
$2.044 $2.167
c. per million gallons for each milligram per liter
of TOC in excess of 130 milligrams per liter,
$6.052 $6.416
whichever is applicable.
The user shall pay the calculated amount based
on 1, 2 and 3 above, plus the applicable base
charge set forth below:
Size of water meter
(inches)
Base charge
¾ or smaller $9.64 $10.22
1 $22.26 $23.59
1½ $44.80 $47.49
2 $76.66 $81.26
3 $122.50 $129.85
-6-
4 $193.46 $205.07
6 $848.08 $898.97
8 $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.
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 $0.003504 $0.003714
COD 540 $0.002303 $0.002441
TOC 170 $0.007316 $0.007755
TSS 365 $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.
-7-
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. 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 $0.00453 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