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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/21/2017 - ITEMS RELATING TO THE 2018 UTILITY RATESAgenda Item 23 Item # 23 Page 1 AGENDA ITEM SUMMARY November 21, 2017 City Council STAFF Randy Reuscher, Utility Rate Analyst Lisa Rosintoski, Utilities Customer Connections Manager Lance Smith, Utilities Strategic Finance Director Eric Potyondy, Legal Cyril Vidergar, Legal SUBJECT Items Relating to the 2018 Utility Rates. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 155, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges and Updating Related Provisions. B. Second Reading of Ordinance No. 156, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees and Charges and Updating Related Provisions. C. Second Reading of Ordinance No. 157, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Wastewater Rates, Fees and Charges These Ordinances relate to 2018 proposed utility rates. A 1.8% increase to monthly charges is proposed for the Electric Fund in 2018. Electric rate increases are proposed to meet increased wholesale costs and to provide some operating income to the utility. On First Reading, Council adopted Option 3 of Ordinance No. 155, 2017, which defaults all residential customers to the residential time of use (TOU) + tier option, with the exception of electric heat customers, who would be on the standard TOU rate. Ordinance No. 155, 2017 was adopted on First Reading on November 7, 2017, by a vote of 4-3 (Nays: Martinez, Summers, Troxell) A 5.0% overall rate increase is proposed for the Water Fund in 2018, with variations by rate class. Water rates are proposed to increase to meet the anticipated capital needs of the utility. A 3.0% overall rate increase is proposed for the Wastewater Utility in 2018, with variations by rate class. Wastewater rates are proposed to be increased to address previous operating revenue shortfalls to meet anticipated capital expenditures for the utility. Ordinance Nos. 156 and 157, 2017, were unanimously adopted on First Reading on November 7, 2017. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION As part of the 2017-18 budget process, the long term strategic financial plan for the Water Enterprise Fund identified the need for the 5% rate increases in 2017 and 2018 as well as the need to issue debt in 2018 for identified capital improvements in the near term. This effort also involved a significant effort to identify reductions in the ongoing budget. The result of this last effort was that the approved 2017 budget for this Enterprise Fund was that the 2017 budget reflected a 2.2% reduction from the 2016 budget. The Council approved 2018 budget for this Enterprise Fund is a 0.3% increase over the 2017 budget. Staff continues to review and manage costs Agenda Item 23 Item # 23 Page 2 within each Enterprise Fund to ensure that our community continues to benefit from well managed municipal utility services. ATTACHMENTS 1. First Reading Agenda Item Summary, November 7, 2017 (w/o attachments) (PDF) 2. Residential Water Rate Comparisons (PDF) 3. Ordinance No. 155, 2017 (PDF) 4. Ordinance No. 156, 2017 (PDF) 5. Ordinance No. 157, 2017 (PDF) Agenda Item 21 Item # 21 Page 1 AGENDA ITEM SUMMARY November 7, 2017 City Council STAFF Randy Reuscher, Utility Rate Analyst Lisa Rosintoski, Utilities Customer Connections Manager Lance Smith, Utilities Strategic Finance Director Eric Potyondy, Legal Cyril Vidergar, Legal SUBJECT Items Relating to the 2018 Utility Rates. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 155, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges and Updating Related Provisions. (Option 1, Option 2, or Option 3) B. First Reading of Ordinance No. 156, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees and Charges and Updating Related Provisions. C. First Reading of Ordinance No. 157, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Wastewater Rates, Fees and Charges The purpose of this item is to enact rate ordinances related to 2018 proposed utility rates. A 1.8% increase to monthly charges is being proposed for the Electric Fund in 2018. Electric rate increases are proposed to meet increased wholesale costs and to provide some operating income to the utility. Staff will be presenting three separate rate ordinances, all of which incorporate the 2018 increase that would be effective January 1, along with variations for separate residential time-of-use (TOU) rate options to be implemented in October 2018. Staff recommends implementing the standard TOU rate for all residential customers, as opposed to the TOU+tier option. A 5.0% overall rate increase is proposed by staff for the Water Fund in 2018, with variations by rate class. Water rates are proposed to increase to meet the anticipated capital needs of the utility. A 3.0% overall rate increase is proposed for the Wastewater Utility in 2018, with variations by rate class. Wastewater rates are proposed to be increased to address previous operating revenue shortfalls in order to meet anticipated capital expenditures for the utility. STAFF RECOMMENDATION Staff recommends 2018 rate adjustments as follows:  A 1.8% rate increase for the Electric Fund in 2018, along with implementation of a default TOU rate (Option 1 above) for all residential customers in October 2018  A 5.0% rate increase for the Water Fund in 2018, with variations by rate class  A 3.0% rate increase for the Wastewater Fund in 2018, with variations by rate class Staff recommends adoption of these Ordinance on First Reading. ATTACHMENT 1 Agenda Item 21 Item # 21 Page 2 BACKGROUND / DISCUSSION 2018 Electric Rates – Ordinance No. 155, 2017 (Option 1, Option 2 or Option 3) A 1.8% overall rate increase is proposed by staff for the Electric Fund in 2018, which is consistent with the City Manager’s Recommended Budget (CMRB) for 2018. This rate increase is driven mainly by an increase in wholesale purchase power costs, which requires a 1.4% retail increase, along with an additional 0.4% increase for the distribution system expenses, which will increase operating income by ~$500k / year for future capital investments. Platte River Power Authority is expected to increase Tariff 1 purchases by 2.0%, which equates to a 1.4% increase at the retail level. Both the summer and non-summer seasons, and the energy and demand components, will increase equally. Below is a table of the current 2017 component charges, along with the proposed 2018 component charges. 2017 Proposed 2018 % Change Energy Summer 0.04200 / kWh 0.04284 / kWh 2.0% Non-summer 0.04028 / kWh 0.04109 / kWh 2.0% Demand Summer 11.33 / kW 11.56 / kW 2.0% Non-summer 8.64 / kW 8.81 / kW 2.0% Tariff 7 charges from PRPA for renewable energy are not proposed to change in 2018. Time-of-Use Implementation Staff’s recommendation is to implement a standard TOU rate for all residential customers in October 2018. Discussions around this recommendation took place at Council work sessions in February and again in July. Some Councilmembers expressed interest for bringing back TOU+tier options. Staff presented the TOU pilot study results to the Energy Board in March and October, where the Board voted 6-1 in support for residential TOU rates, as recommended by staff. Consistent with Council’s work session discussions, there are three options for Ordinance No. 155, 2017, presented for City Council to consider. Option 1, which is a standard TOU rate for all residential customers, is the option recommended by staff. Option 2 is implementing the TOU + tier rate structure for all residential customers. Option 3 is a combination of the first two options. This option would default all residential customers to the TOU+tier option, with the exception of electric heat customers, who would be on the standard TOU rate. The table below shows a side-by-side comparison of the two TOU rates included in the pilot study. The cells Agenda Item 21 Item # 21 Page 3 highlighted in green identify where staff has identified a stronger justification for implementing that particular rate structure. This is the basis for staff recommending the TOU rate for all residential customers, rather than the TOU+tier option. For more detailed understanding of the rate options, comparisons, and recommendations, please see the July 7 Council Work Session AIS. (Attachment 2) TOU Customer Outreach The memo provided to Council in May and discussion at the July work session outlined proposed timelines and the TOU Rates Communication Plan, recommending an October 1, 2018 effective date, based on following needs:  Develop messaging, look and feel of campaign that resonates with customers  Design outreach and education materials that are easy and simple to understand  Consult community boards and groups prior to City Council action  Provide thorough customer engagement prior to effective date of October 1, 2018  Ongoing outreach and communications engagement after effective date  During the pilot study, customers were sent postcards with graphics similar to what is shown below to help educate them around seasonal changes in on-peak hours and costs that included the specific rates. Based on the TOU pilot study feedback, staff would provide similar outreach upon full rollout. Examples may include postcards, letters, utility bill inserts, refrigerator magnets, etc. As it is not recommended that a new rate structure be deployed during the summer peak season, the optimal deployment was determined to be October 1, 2018. This option allows for time and resources to create and execute communication materials and outreach plans and for public communication, as well as targeted communication to reach customer segments within the broader residential customer class based on behavior types. In addition, key stakeholder groups have been identified to make formal presentations as part of their regularly scheduled meetings. Strategies for mass communication, targeted communication and stakeholder Agenda Item 21 Item # 21 Page 4 collaboration have also been developed. By implementing TOU on October 1, 2018, a lead time of 11 months will maximize outreach. 2018 Water Rates – Ordinance No. 156, 2017 There is a 5.0% overall rate increase proposed by staff for the Water Fund in 2018, which is consistent with the City Manager’s Recommended Budget (CMRB) for 2018. This rate increase is driven by the need to increase available reserves for near-term capital requirements and to increase operating revenues to cover debt service that will be needed to achieve the 10-year prioritized capital improvement plan (CIP). It is expected that capital improvement spending over the coming decade will be at a rate that is twice what it has been over the past decade. It is also front heavy in capital needs. The Strategic Financial Plan (SFP) outlines a path forward which will require leveling the capital investment over the coming 10 years to the extent possible that allows for modest rate adjustments and debt issuances. Approximately $200M worth of capital work is expected prior to 2026, which includes anticipated work associated with the Halligan Water Supply Project. Along with the overall planned increase, the cost of service study for the Water fund was recently updated from the last update two years. The graph below shows the results of the study. The residential classes will need a slightly less than the average increase, as compared to the fund increase of 5.0%, while the commercial class will need slightly more than the average. These changes take into consideration slight shifts in use from the last model update, along with reduced peak demands for residential customers and slight increases in peak demands for commercial customers, as well as the most current allocations of capital spending needs, which impact rate classes differently. 2018 Wastewater Rates – Ordinance No. 157, 2017 There is a 3.0% overall rate increase proposed for the Wastewater Utility in 2018, which is consistent with the CMRB for 2018. Operating revenues for the Wastewater Utility continue to be below budget. The 3% increases in both 2017 and 2018 in the Recommended Budget are expected to address this continued revenue shortfall and put this fund on a path to provide sufficient available reserves to complete the 10-year CIP without the need to issue new debt. It is expected that ~$80M of capital work will be needed prior to the year 2026. The main driver for the increase is related to the ongoing revenue shortfall. This revenue shortfall impacts the Agenda Item 21 Item # 21 Page 5 Enterprise Fund’s ability to financially support the 10-year CIP. The modest rate adjustments in recent years, along with the planned increase in 2018, are expected to address this continued revenue shortfall and put this fund on a path to provide sufficient available reserves to complete the 10-year CIP without the need to issue new debt. This Fund is also projected to have sufficient available reserves to implement anticipated regulatory nutrient removal requirements just beyond the 10-year horizon without needing to issue addition debt. Along with the overall planned increase, the cost of service model for the Wastewater fund was updated recently from the last update two years ago. The proposed increases by class are summarized in the graph below. A driver for the adjustments is an increase in use from the commercial class, as well as a larger increase in the number of accounts for the multifamily and commercial classes. Currently, when a customer does not have an established winter quarter average (WQA), the class average has been used for billing purposes until enough history has been established. For the single- family class, 4,800 gallons has been the default, but with demands going down, staff is proposing to reduce this to 4,000 gallons. For duplexes, the default amount would reduce from 7,200 to 6,200 gallons based on the lower average demands for the class. Multi-family would reduce from 3,400 to 3,200 gallons per unit. The graph below shows average WQA trends by year over the past decade for each residential class. Agenda Item 21 Item # 21 Page 6 2018 Stormwater Rates No rate increase is being proposed for the Stormwater Fund in 2018. There was a 5.0% increase in 2017, which was incorporated to allow for the initial build out of the stormwater infrastructure on a 15-year completion schedule beginning in 2017. It is expected the utility will need ~$156M of capital work prior to the year 2031. The increase in 2017 was the first increase for this fund since 2004. CITY FINANCIAL IMPACTS Typical Residential Utility Bill The typical residential customer’s total utility bill will increase in 2018, under the proposed rate changes, by 2.2% on average in the customer’s 2018 monthly bills. The table below shows the impacts of all of the proposed rate changes on the utility bill of a typical residential customer. Communities along the Front Range were recently polled on their expected 2018 rate increases. As shown in the table below, it is apparent there are varying challenges within each community that drive differing increases each year. In some cases, increases are greater than 10% for services such as water and wastewater. Electric increases range from no increase up to 5.0% for 2018. Current Estimated $ % 2017 2018 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,000 gal/mo $33.22 $33.72 WQA Water 5 kGAL non-summer, 15 kGAL summer Total Estimated Average Monthly Utility Bill $164.73 $168.43 $3.70 2.2% $14.69 $14.69 $0.00 0.0% $0.50 1.5% $45.75 $47.67 $1.92 4.2% $71.07 $72.35 $1.28 1.8% Electric Water WW Storm 2018 2018 2018 2018 Lower Range Increase 0.0% 3.5% 0.0% 0.0% Upper Range Increase 5.0% 13.0% 11.0% 7.8% 2018 Estimated Rate Increases Greeley / Loveland / Longmont / Colorado Springs / Boulder Agenda Item 21 Item # 21 Page 7 BOARD / COMMISSION RECOMMENDATION At its October 12, 2017, meeting, the Energy Board voted unanimously to support the electric rate increase for 2018 for the Electric Fund, as proposed by staff, as well as voted 6-1 to support implementing the standard TOU rate in October 2018, as proposed by staff. See attached memo provided by the Board. At its August 17, 2017, meeting, the Water Board voted unanimously to support the rate increases for 2018 for the Water and Wastewater Fund, as proposed by staff. PUBLIC OUTREACH Notice of the proposed electric rate increase was published in the Coloradoan, and a mailing was sent to all electric customers residing outside of the city limits in accordance with state requirements. Staff plans to conduct outreach to all customers following the adoption of the Ordinances utilizing a variety of tactics, including printed communication material, face-to-face meetings, online resources and social media. ATTACHMENTS 1. Work Session Agenda Item Summary, July 11, 2017 (w/o attachments) (PDF) 2. Work Session Summary, July 11, 2017 (PDF) 3. Energy Board Time of Use Memo, October 12, 2017 (PDF) 4. Powerpoint presentation (PDF) $43.64 $45.95 $47.88 $49.10 $65.60 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Fort Collins / Loveland Water District Fort Collins Utilities (2017) Fort Collins Utilities (2018) East Larimer County Water District West Fort Collins Water District Residential Water Rate Comparisons ATTACHMENT 2 -1- ORDINANCE NO. 155, 2017 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, the revenue from the rates, fees or charges for utility services set forth herein shall be used to defray the costs of providing such utility services as required by the Charter and the City Code; and WHEREAS, the City purchases bulk wholesale electric power from Platte River Power Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy, dated September 1, 2010; and WHEREAS, PRPA costs are increasing due to reduced wholesale market prices and surplus sales, increased costs for coal, and increased operating costs for aging plants; and WHEREAS, PRPA will increase the City’s wholesale cost of power approximately 2.0% in 2018; and WHEREAS, the increased wholesale power cost will require an average 1.4% retail rate increase and increased local distribution costs will require an additional average 0.4% rate increase, for a total City retail electric rate increase in 2018 of 1.8% in order to remain consistent with Article XII, Section 6, of the City Charter; and WHEREAS, the proposed rate increase will vary based on the cost of service to each customer class; and WHEREAS, since 2012, residential customers have been billed under “tier” based electric rates, where tier 1 consumption is lower than the cost-of-service and a progressively higher step charge per kWh is applied for tier 2 and tier 3 consumption, in an effort to encourage energy conservation and efficiency in the rate class; and WHEREAS, as presented at the July 11, 2017, City Council work session, staff has identified benefits available through “time-of-use” (“TOU”) based residential electric rates, compared to tiered electric rates, including aligning retail pricing with PRPA’s wholesale power costs paid by the City for total system consumption; and -2- WHEREAS, adopting residential TOU rates will also enable the City to better leverage incentives in electric rates to encourage energy conservation and efficiency, and equitably shift energy costs to residential customers who use more energy; and WHEREAS, based on direction provided by the City Council on July 11, 2017, staff developed optimal rates, fees and charges for TOU residential electric services, as further set forth herein and as necessary to produce sufficient revenues to provide the utility services described herein; and WHEREAS, staff’s TOU rate recommendations include updating the Residential Demand (“RD”) rate for all-electric heat customers, effective for all billings issued with meter readings on or after October 1, 2018, in order to equalize the conservation incentives of TOU rates for all residential customers and avoid potentially penalizing low-income or net-metered customers; and WHEREAS, in addition to adjusting the 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 TOU electric rates at its March 9, 2017, and May 11, 2017 regular meetings, and the proposed tiered rates, fees, and charges, and language clarifications for 2018 at its October 12, 2017, regular meeting, and provided recommendations of approval of both 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 electricity used by GS50 and GS750 rate class customers on or after January 1, 2018, and for all other customer classes for all billings issued with meter readings on or after January 1, 2018; and WHEREAS, with regard to residential customers, the City Manager and staff further recommend to the City Council the following TOU electric rate adjustments and City Code rate language clarifications to transition such customers from tiered rates, which new rates will go into effect for all billings issued with meter readings on or after October 1, 2018; and WHEREAS, the City Manager and staff have recommended that the residential tiered rates described in this Ordinance remain in effect from January 1, 2018, until September 30, 2018, and that TOU-based rates go into effect for all residential rate class billings issued on meter readings on or after October 1, 2018; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -3- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Sections 26-391 of the Code of the City of Fort Collins is hereby amended by the addition of a new definition to read as follows: Holiday shall mean the twenty-four (24) hour calendar day for each of the following: New Year’s Day, Memorial Day, July 4 th , Labor Day, Thanksgiving Day, and Christmas. Section 3. That Sections 26-464 (c), (d), (f), (p), (r) and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. Residential energy service, schedule R. . . . (c) Monthly rate. (1) Tiered. The monthly rates for this schedule shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: a. Fixed Charge Per account $5.81 b. Distribution facilities charge Per kWh $0.0257 c. Energy and demand charge 1. Summer. For billings based on meter readings during the months of June, July and August, provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. a) Tier 1 - for the first five hundred (500) kilowatt hours per month b) Tier 2 - for the next five hundred (500) kilowatt hours per month c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0647 Per kWh $0.0823 Per kWh $0.1173 2. Non-summer. For billings based on meter readings during the months of January through May and September through December. a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0595 Per kWh $0.0638 Per kWh $0.0729 d. Payment in lieu of taxes (PILOT) and franchise. 6 percent -4- A charge based on all monthly service charges billed pursuant to this Section (2) Time-of-use. The monthly rates for this schedule shall be the sum of the following charges, applied to all meter readings on or after October 1, 2018: a. Fixed Charge Per account $5.81 b. Distribution facilities charge Per kWh $0.0197 c. Energy and demand charge 1. Summer. For billings based on consumption during the months of May, June, July, August, and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) b) Off-Peak Per kWh $0.2015 Per kWh $0.0428 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) b) Off-Peak Per kWh $0.1788 Per kWh $0.0411 d. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0166 e. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Medical assistance program. . . . (3) a. Tiered. The discounted monthly rates for customers with electrical durable medical equipment only shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0257 3. Energy and demand charge -5- a) Summer. For billings based on meter readings during the months of June, July and August, provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month (iii) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0363 Per kWh $0.0823 Per kWh $0.1173 b) Non-summer. For billings based on meter readings during the months of January through May and September through December. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (iii) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0325 Per kWh $0.0638 Per kWh $0.0733 4. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent b. Time-of-use. The discounted monthly rates for customers with electrical durable medical equipment only shall be the sum of the following charges, applied to all meter readings on or after October 1, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0197 3. 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) (ii) Off-Peak Per kWh $0.1411 Per kWh $0.0300 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) (ii) Off-Peak Per kWh $0.1252 Per kWh $0.0288 -6- 4. 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 $0.0166 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 Percent (4) a. Tiered. The discounted monthly rates for customers with medical needs requiring air conditioning only shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0257 3. Energy and demand charge a) Summer. For billings based on meter readings during the months of June, July and August, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month (iii) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0358 Per kWh $0.0454 Per kWh $0.1173 b) Non-summer. For billings based on meter readings during the months of January through May and September through December. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (iii) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0595 Per kWh $0.0638 Per kWh $0.0733 4. Payment in lieu of taxes (PILOT) and franchise. A charge of all monthly service charges billed pursuant to this Section 6 percent b. Time-of-use. The discounted monthly rates for customers with medical needs requiring air conditioning only shall be the sum of the following charges, applied to all meter readings on or after October 1, 2018: -7- 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0197 3. 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) (ii) Off-Peak Per kWh $0.0428 Per kWh $0.0428 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) (ii)Off-Peak Per kWh $0.1788 Per kWh $0.0411 4. 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 $0.0166 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (5) a. Tiered. 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 meter readings on or after January 1, 2018, through September 30, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0257 3. Energy and demand charge a) Summer. For billings based on meter readings during the months of June, July and August, provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month (iii) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0234 Per kWh $0.0298 Per kWh $0.1173 -8- b) Non-summer. For billings based on meter readings during the months of January through May and September through December. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (iii) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0325 Per kWh $0.0638 Per kWh $0.0733 4. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent b. Time-of-use. 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 meter readings on or after October 1, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0197 3. 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) (ii) Off-Peak Per kWh $0.0428 Per kWh $0.0300 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) (ii) Off-Peak Per kWh $0.1252 Per kWh $0.0288 4. 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 $0.0166 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent . . . -9- (f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (f) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 . . . (p) Net metering. … (5) a. Tiered. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Distribution facilities credit Per kWh $0.0257 2. Energy and demand credit Per kWh $0.0647 b. Time-of-use. For customer-generators on a "time-of-use" (TOU) rate, consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows, applied to all meter readings on or after October 1, 2018: 1. Distribution facilities credit Per kWh $0.0197 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 $0.2015 b) Off-Peak Per kWh $0.0428 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 $0.1788 b) Off-Peak Per kWh $0.0411 -10- . . . (r) Net metering—community solar projects. . . . (3) a. Tiered. Both the customer’s consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections (c) and (d) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Distribution facilities credit Per kWh $0.0128 2. Energy and demand credit Per kWh $0.0647 b. Time-of-use. For customer-generators on a "time-of-use" (TOU) rate, the customer’s consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy 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 meter readings on or after October 1, 2018: 1. Distribution facilities credit Per kWh $0.0099 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 $0.2015 b) Off-Peak Per kWh $0.0428 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 $0.1788 b) Off-Peak Per kWh $0.0411 -11- Section 4. That Sections 26-465 (c), (e), (f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. . . . (c) Monthly rate. (1) The monthly rates shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: a. Fixed Charge Per account $5.81 b. Demand charge Per kW $2.45 c. Distribution facilities charge Per kWh $0.0229 d. Energy charge 1. Summer. For billings based on meter readings in the months of June, July and August 2. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0452 Per kWh $0.0434 3. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. e. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (2) Time of use. The monthly rates for this schedule shall be the sum of the following charges, applied to all meter readings on or after October 1, 2018: a. Fixed Charge Per account $5.81 b. Distribution facilities charge Per kWh $0.0257 c. 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) b) Off-Peak Per kWh $0.2015 Per kWh $0.0428 2. Non-summer. For billings based on consumption during the months of January through April and October through December. Per kWh $0.1788 -12- a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) b) Off-Peak Per kWh $0.0411 d. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent ... (e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 (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: . . . (q) Net metering. . . . (5) a. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all meter readings on or after January 1, 2018, through September 30, 2018: Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.12 For all metered kilowatts in excess of the contracted amount Per kW $6.35 -13- 1. Distribution facilities credit Per kWh $0.0257 2. Energy and demand credit Per kWh $0.0647 b. Time-of-use. For customer-generators on a "time-of-use" (TOU) rate, consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows, applied to all meter readings on or after October 1, 2018: 1. Distribution facilities credit Per kWh $0.0257 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 $0.2015 b) Off-Peak Per kWh $0.0428 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 $0.1788 b) Off-Peak Per kWh $0.0411 (r) Net metering-community solar projects. . . . (3) a. Both the customer’s consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber- owned facilities and dedicated program-managed facilities. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Distribution facilities credit Per kWh $0.0128 2. Energy and demand credit Per kWh $0.0647 b. Time-of-use. For customer-generators on a "time-of-use" (TOU) rate, the customer’s consumption of energy from Fort Collins Utilities and interest in the -14- production of energy that flows into Fort Collins 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 meter readings on or after October 1, 2018: 1. Distribution facilities credit Per kWh $0.0128 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 $0.2015 b) Off-Peak Per kWh $0.0428 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 $0.1788 b) Off-Peak Per kWh $0.0411 Section 5. That Sections 26-466 (c), (e), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. General service, schedule GS. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge a. Single-phase, two-hundred-ampere service Per account $3.61 b. Single-phase, above two-hundred-ampere service Per account $10.65 c. Three-phase, two-hundred-ampere service Per account $5.50 d. Three-phase, above two-hundred-ampere service Per account $13.03 (2) Demand charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0273 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0167 -15- c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kWh $0.0245 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0452 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0434 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent ... (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 . . . (q) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy 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: a. Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0452 (r) Net metering-community solar projects. . . . -16- (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy 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: a. Distribution facilities credit Per kWh $0.0122 b. Energy and demand credit Per kWh $0.0452 Section 6. That Sections 26-467 (c), (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: 1. Fixed Charge a. Single-phase, two-hundred-ampere service Per account $3.61 b. Single-phase, above two-hundred-ampere service Per account $10.65 c. Three-phase, two-hundred-ampere service Per account $5.50 d. Three-phase, above two-hundred-ampere service Per account $13.03 2. Demand charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kW $8.31 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $4.76 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 3. Distribution facilities charge Per kwh $0.0186 4. Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0452 -17- b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0434 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent ... (e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly standby distribution charge Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.84 For all metered kilowatts in excess of the contracted amount Per kW $11.54 . . . (r) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: -18- Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0452 Section 7. That Sections 26-468 (c), (e) through (g), and (u) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge Per account $9.11 An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.14 (2) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July and August Per kW $11.91 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $9.08 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $6.27 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0452 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0434 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent ... (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. -19- Per kW $2.10 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. Monthly standby distribution charge shall be the sum of the following charges: Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $4.94 For all metered kilowatts in excess of the contracted amount Per kW $14.82 . . . (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: Contracted backup capacity per month Per kW $1.01 Metered kilowatts in excess of the contracted amount Per kW $3.04 (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. . . . (u) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy 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: -20- Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0452 Section 8. That Sections 26-469 (c), (e) through (g) and (v) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge Per account $15.62 a. Additional charge for each additional metering point Per account $9.53 b. An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.14 (2) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July and August Per kW $11.74 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $8.95 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge a. First seven hundred fifty (750) kilowatts Per kW $6.02 b. All additional kilowatts Per kW $3.56 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0445 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0427 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. -21- (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent ... (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. Monthly standby distribution charges shall be paid in the following amounts Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.42 For all metered kilowatts in excess of the contracted amount Per kW $10.28 . . . (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. . . . (v) Net metering. . . . Contracted backup capacity per month Per kW $0.70 Metered kilowatts in excess of the contracted amount Per kW $2.11 -22- (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: Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0445 Section 9. That Sections 26-470 (c), (e), and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge Per account $35.51 (2) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July and August Per kW $11.56 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $8.81 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $2.88 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0439 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0420 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. 6 percent -23- A charge based on all monthly service charges billed pursuant to this Section ... (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility at the following rates: (1) Standby distribution charge. a. Monthly standby distribution charge: Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.56 For all metered kilowatts in excess of the contracted amount Per kW $7.68 . . . (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 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: Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0439 Section 10. That the amendments herein are effective and shall go into effect as follows: a. Amended commercial schedule tiered rates (GS, GS25, GS50, GS750 & SS) shall apply to all electricity used on or after January 1, 2018; b. Amended schedules of tiered rates for all other rate classes shall apply to all bills issued on the basis of meter readings on or after January 1, 2018; c. Schedules of residential TOU rates (R and RD rate classes) shall apply to all bills issued on the basis of meter readings on or after October 1, 2018. -24- Introduced, considered favorably on first reading, and ordered published this 7th day of November, A.D. 2017, and to be presented for final passage on the 21st day of November, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 21st day of November, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 156, 2017 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, 26-127 and 26-129 concern various water-related rates, fees, and charges; and WHEREAS, City Code Section 26-118 requires that the City Manager analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have recommended to the City Council adjustment of the water-related rates, fees, and charges as set forth herein to be effective January 1, 2018; and WHEREAS, the rate increase for water set forth herein is 5.0% overall, with variations for customer rate classes; and WHEREAS, it is beneficial to revise the definition of “peaking factor” in City Code Section 26-41 in order to more appropriately account for single days of high water deliveries that may be unrepresentative outliers due to system flushing and other operations that do not represent the true demand for treated water; and WHEREAS, the Water Board considered the proposed water-related rates, fees, and charges adjustments for 2018 at its meeting on October 12, 2017, and recommended approval of the proposed adjustments by a unanimous vote; and -2- 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: 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 26-41 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-41. - Definitions. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: … Peaking factor shall mean the ratio of the average of the five (5) highest daily amounts of water delivered during the year to the average daily demand for that year. … 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: ¾-inch construction service, flat charge per month $29.44 1-inch construction service, flat charge per month $56.14 Section 4. 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. -3- (1) Residential customers with one (1) dwelling unit shall pay the sum of the following changes: a. Base monthly charge for residential customers with one (1) dwelling unit $16.86 b. Quantity monthly charge for residential customers with one (1) dwelling unit Tier 1 - For the first seven thousand (7,000) gallons used per month, per one thousand (1,000) gallons $2.611 Tier 2 - For the next six thousand (6,000) gallons used per month, per one thousand (1,000) gallons $3.000 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $3.451 (2) Residential customers with two (2) dwelling units shall pay the sum of the following charges: a. Base monthly charge for residential customers with two (2) dwelling units $17.74 b. Quantity monthly charge for residential customers with two (2) dwelling units Tier 1 - For the first nine thousand (9,000) gallons used per month, per one thousand (1,000) gallons $2.253 Tier 2 - For the next four thousand (4,000) gallons used per month, per one thousand (1,000) gallons $2.589 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $2.979 (3) Residential customers with more than two (2) dwelling units shall pay the sum of the following charges: a. Base monthly charge for residential customers with more than two (2) dwelling units First dwelling unit $12.75 Second and each additional dwelling unit $4.24 b. Quantity monthly charge for residential customers with more than two (2) dwelling units Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.853 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.316 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. -4- (b) Nonresidential rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26-127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $15.26 1 $42.57 1½ $115.75 2 $174.44 3 $266.06 4 $417.69 6 $810.27 8 $1,431.42 (2) Quantity charges. Nonresidential customers shall pay monthly charges as follows: Winter - per one thousand (1,000) gallons used in the winter season months of November through April $2.123 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.653 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (3) Charges for excess use. Nonresidential customers shall also pay monthly water use charges in excess of the amounts specified in the following table: Winter - per one thousand (1,000) gallons used in the winter season months of November through April $3.050 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $3.815 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. -5- Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 (c) High volume industrial rates. High volume industrial rates apply to any customer with an average daily demand in excess of two million (2,000,000) gallons per day. The specific rate for any qualifying customer shall be based upon the applicable peaking factor for that customer as follows: Peaking Factor Monthly Charge per Thousand Gallons 1.00—1.09 $1.66 1.10—1.19 $1.72 1.20—1.29 $1.78 1.30—1.39 $1.83 1.40—1.49 $1.89 1.50—1.59 $1.94 1.60—1.69 $2.00 1.70—1.79 $2.06 1.80—1.89 $2.11 1.90—1.99 $2.18 > 2.00 $2.23 . . . Section 5. That the modifications set forth above shall be effective for meter readings on or after January 1, 2018, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2018. -6- Introduced, considered favorably on first reading, and ordered published this 7th day of November, A.D. 2017, and to be presented for final passage on the 21st day of November, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 21st day of November, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 157, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WASTEWATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to produce sufficient revenues to provide the utility services described herein; and WHEREAS, the revenue from the rates, fees or charges for utility services set forth herein shall be used to defray the costs of providing such utility services as required by the Charter and the City Code; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-280 and 26-282 concern various wastewater-related rates, fees, and charges; and WHEREAS, City Code Section 26-277 requires that the City Manager analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective January 1, 2018; and WHEREAS, the rate increase for wastewater set forth herein is 3.0% with variations for individual customer rates classes; and WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and charges adjustments for 2018 at its meeting on August 17, 2017, and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) Per month $40.05 Single-family residential user (metered water use) 1. Per month $17.90 2. Plus, per 1,000 gallons per month $3.477 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) Per month $55.41 Duplex (two-family) residential users (metered water use) Per month $20.52 Or, per 1,000 gallons per month, whichever is greater, to be calculated on a monthly basis $3.081 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 parks) 1. Base charge per month per dwelling unit served $2.75 2. Plus, per 1,000 gallons per month $3.498 -3- and winter quarter based nonresidential user Note: 1. For multi-family customers who have not yet established a winter quarter water use at the service address, a system average of 3,200 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. 2. After establishment of a water quarter use at the service address, the monthly amount billed shall be per 1,000 gallons of winter quarter water use, calculated on a monthly basis. D Minor nonresidential user 1. Per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, to be calculated on a monthly basis, plus the following applicable base charge: $3.293 2. Size of water meter (inches) Base charge ¾ or smaller $9.50 1 $21.93 1½ $44.14 2 $75.53 3 $120.69 4 $190.60 6 $835.55 8 $964.76 E and F Intermediate nonresidential user and Significant industrial user User shall pay an amount calculated to include: 1. Rate per 1,000 gallons of water use, measured wastewater flow or winter quarter water use per month, whichever is applicable; $3.293 2. PLUS a surcharge per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; $3.830 3. PLUS a surcharge for the following: a. per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter; or $3.191 b. per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter; or $2.014 -4- c. per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, $5.963 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 $9.50 1 $21.93 1½ $44.14 2 $75.53 3 $120.69 4 $190.60 6 $835.55 8 $964.76 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. - Wastewater strength or industrial surcharges and categories established. (a) A monthly wastewater strength surcharge shall be paid by customers located either inside or outside the City limits in accordance with the following schedule: Parameter Excess over (mg/l) Rate per thousand gallons BOD 355 $0.003452 COD 540 $0.002269 TOC 170 $0.007208 TSS 365 $0.003474 -5- . . . Section 4. That the modifications set forth above shall be effective for meter readings on or after January 1, 2018, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2018. Introduced, considered favorably on first reading, and ordered published this 7th day of November, A.D. 2017, and to be presented for final passage on the 21st day of November, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 21st day of November, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk