HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/17/2018 - ITEMS RELATED TO INCOME QUALIFIED ASSISTANCE PROGRAgenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY April 17, 2018
City Council
STAFF
Randy Reuscher, Utility Rate Analyst
Lisa Rosintoski, Utilities Customer Connections Manager
Lance Smith, Utilities Strategic Finance Director
Cyril Vidergar, Legal
SUBJECT
Items Related to Income Qualified Assistance Programs.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 053, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to
Change the Name of Time-of-Use Electric Rates to Time-of-Day Electric Rates.
B. First Reading of Ordinance No. 054, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to
Adopt Discounts Applicable to Water, Wastewater and Electric Rates, Fees and Charges Applied Under an
Income Qualified Assistance Program.
The purpose of Ordinance No. 053, 2018, is to change the name for the electric service rates that will go into
effect on October 1, 2018, from “time-of-use” to “time-of-day” to better identify how the rates will be applied to
different times during the day.
The purpose of Ordinance No. 054, 2018, is to bring forward an ordinance to implement an Income-Qualified
Assistance Program (IQAP), formerly referred to as the income-qualified rate (IQR). For qualified customers
who “opt-in”, this program will initially provide a 23% discount on specified rate components for electric, water
and wastewater services on a customer’s monthly bill. Utilities will qualify customers through the Low-income
Energy Assistance Program (LEAP), which uses an income threshold of 165% of the Federal Poverty Level
(FPL). The IQAP will have a three-year phased approach to provide data to City Council that demonstrates
reasonable bill affordability and presents long-term recommendations on participation criteria, including
whether a specific level of dwelling improvements in participants’ homes may (or may not) eliminate the need
for payment assistance, or support removal of participants from the program. The IQAP will be rolled out in
October 2018, in conjunction with time-of-day (TOD) (formerly referred to as “time-of-use” [TOU]) rates for
residential customers, as approved by Council in November 2017.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
Staff initially referred to a rate structure based on blocks of time throughout a day when electric services are
used as “time-of-use” rates. This terminology was used when the City Code was amended for 2018 electric
service rates. Staff has now determined that “time-of-day” better communicates to customers how rates are
applied throughout the day. Staff recommends changing references from “time-of-use” rates to “time-of-day”
rates in Chapter 26. “Time-of-day” rates will go into effect for meter readings on or after October 1, 2018.
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Staff initially presented a low-income assistance plan to Council at a work session on June 14, 2016. An
ordinance was brought forth at the August 16, 2016, regular Council meeting, where it was postponed until
September 6, 2016, and then initially adopted on consent on first reading 7-0. Shortly thereafter, Council
reconsidered its vote and indefinitely postponed the ordinance until further action was initiated by Council.
In November 2017, staff brought forward a separate ordinance on time-of-use (now referred to as time-of-day
(TOD) rates) which Council voted to approve and will be effective for meter readings on/after October 1, 2018.
In those discussions, the impacts on low-income customers were discussed pertaining to the two proposed
TOD rate structures, and the need to continue discussions on providing an income-qualified rate (IQR).
Staff returned with a recommendation for the IQR at the January 30, 2018 Work Session. With feedback from
Council at the work session and two subsequent meetings; one with Mayor Pro Tem Horak and the other with
Councilman Cunniff, staff subsequently revised its initial recommendation of a 42% discount on the total billed
services to a 23% discount applied to specific rate components.
Staff provided two memos to Council on March 15, 2018 to summarize the revised recommendations. The first
memo focused on an implementation strategy as a customer assistance program, including modifications of
the discount approach, efficiency and conservation participation elements, and creating a program that can
phase-out based on participants’ dwellings achieving sustained utility bill savings. The second memo focused
on the rate structure details and overall financial impacts for the electric, water, and wastewater enterprise
funds.
Implementation Strategy
Utilities intends to implement an IQAP that results in reasonable utility bill affordability for qualifying low-income
participants that “opt-in.” The program will have a three-year phased approach to provide data to City Council
that demonstrates the following:
1. Achieve sustainable savings in participant dwellings through efficiency and conservation actions and
dwelling improvements.
2. Inventory IQAP participant locations for regular outreach and to measure the impact of efficiency and
conservation actions and dwelling improvements.
3. Gather data over a 3-year period to measure the effectiveness of IQAP in achieving efficiency and
conservation results.
4. Partner with LEAP and include thorough screening to minimize IQAP being used inappropriately by non-
qualifying participants.
Utilities’ proposed strategy for implementing the IQAP, based on the modified discount approach with
efficiency and conservation outcomes, is framed as part of an IQAP rate ordinance as follows:
1. Begin with a three-year phased approach to gather and analyze data prior to presenting long-term
recommendations on participation criteria.
2. Initial rate implementation on October 1, 2018, at the same time as TOD rate implementation.
3. Discount designed to establish equitable cost impacts for customers earning 165% FPL in relation to
customers earning 100% of the area median income (AMI).
4. Base annual eligibility on “opt-in” process.
5. Administer IQAP qualification through LEAP to ensure a streamlined customer application process,
minimum administrative burden, and maximum leverage of LEAP assistance dollars.
6. Apply the IQAP discount amount of 23%, compared to the original 42% discount proposed, based on:
a. Original costs to calculate IQAP discount were electric, water and wastewater; updated
analysis includes natural gas.
b. Original savings calculation related only to the IQAP discount. Updated analysis includes
savings from LEAP assistance active energy management education opportunities and
potential efficiency installations.
7. IQAP-driven efficiency targets:
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a. Basic retrofits: 5,000 premises by year 10 (Larimer County Conservation Corp (LCCC) or
similar programs)
b. Deep retrofits: 1,000 premises by year 10 (insulation, air sealing, etc)
c. Active Energy Management Education: all participants annually by year 4
8. Gather data from IQAP participants and other stakeholders to understand communication preferences,
program accessibility and ownership that inform efficiency and conservation strategies and tactics for the
low-income customer segment.
9. Expand existing, and develop new, long-term low-income segment efficiency and conservation strategies
and tactics that leverage IQAP to increase participation.
Rate Structure/Proposed Benefit
The average utility bill for electric, water, wastewater and natural gas services in Fort Collins is roughly $2,271
annually. Customers participating in LEAP receive an annual program benefit that averages $441. Additional
benefits may also be provided to customers who participate in conservation education and accept efficiency
installations, which potentially represent another $215 annually. Recognizing the above low-income assistance
amounts, 23% is the discount needed for each City utility to provide income-qualified customers a monthly
utility bill discount that would reduce utility bill impacts to 3.1% of household income, which is the percentage
of income that customers at 100% AMI pay. The average annual and monthly bill amounts, along with the
average percentage of income a customer pays at 165% FPL, is demonstrated below in Table 1. By modifying
the application of the discount within the rate, and only applying it to specific components, the total City utility
discount required is reduced.
Table 1 below shows the average annual and monthly household costs for electric, water, wastewater, and gas
services in Fort Collins. After consideration of program benefits provided to LEAP participants, and potential
savings associated with income-qualified utility programs, it is estimated a customer that receives all three
services (electric, water, wastewater) would need to receive an additional $387 annual benefit to reduce their
household financial burden to 3.1%. Not all low-income customers have all three services in their name, some
customers earn significantly less than 165% FPL, and some dwellings may not be eligible for every
improvement opportunity, so the resulting direct financial benefit may vary from the numbers stated in the
table.
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TABLE 1
Annually Monthly % of income
Electric $ 788 $ 66 2.0%
Water $ 431 $ 36 1.1%
Wastewater $ 469 $ 39 1.2%
Gas $ 583 $ 49 1.5%
Utility Expense $ 2,271 $ 189 5.7%
Avg LEAP Benefit $ (441) $ (37) -1.1%
Utilities programs $ (215) $ (18) -0.5%
Current Program Benefits $ (656) $ (55) -1.6%
Expense less benefits $ 1,615 $ 135 4%
Proposed Avg IQAP Benefit $ (387) $ (32) -1.0%
Including IQAP $ 1,228 $ 102 3.1%
Average Utility Costs and Benefits
for Customers Fully Participating in IQAP
Utilities proposes a modified IQAP to provide a 23% discount on certain rate components for electric, water
and wastewater services as set forth below.
• Electric - the discount would apply to only the base charge and the on-peak and off-peak kWh
charges. It would not apply to the “tier surcharge.”
o This lowers the benefit to these customers by 5% on average, since approximately 5% of total
charges are collected through this tier surcharge.
o All-electric homes would benefit from the full discount, as those customers do not have a “tier
surcharge” (on the standard TOD rate).
o Estimates show this would reduce the cost of the program by $18,000/year, which could be
directed to energy efficiency improvements in eligible housing.
• Water - the discount would apply to the base charge and the Tier 1 charge, though not the Tier 2 or
Tier 3 water consumption charges.
o Roughly 75% of costs are collected through the base charge and Tier 1 charge and keeping
the full Tier 2 and 3 charges maintain the current conservation signal built into the rate
structure.
o Estimates show this would reduce the cost of the program by $17,000/year, which could be
directed towards water conservation efforts in eligible housing.
• Wastewater - no changes since initial proposal and the discount would apply to both the base charge
and the variable charge.
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Modifications to the application of the discount for specific components considers Council feedback from
meetings in 2018, as well as recommendations from external interest groups received throughout the rate
study process.
CITY FINANCIAL IMPACTS
Table 2 below summarizes the financial impacts to the electric, water, and wastewater utility enterprise, given
the estimates for customers that may qualify through LEAP and the services that are held in those customers’
names. It is estimated the program would provide a benefit of $441,000 annually, split among the three utility
funds according to actual impacts once in place. With an opt-in approach that requires customers to return a
form to Utilities if they would like to participate, (as opposed to an opt-out approach that requires customers to
return a form if they do NOT want to participate), enrollment and overall financial impacts may be lower than
shown below.
TABLE 2
Staff will monitor actual enrollment levels and financial impacts on an annual basis upon program approval,
and modify qualifications and benefits as necessary going forward to maximize benefits for each respective set
of rate payers. Current research shows ratepayer benefits of similar public utility programs include reduced
system consumption, increased participation in conservation education programs by customers occupying
substandard housing, and improved consumption behaviors. Additional ratepayer benefits also may be
revealed as the program moves through successive cycles and is broadly adopted by qualifying customer
households.
BOARD / COMMISSION RECOMMENDATION
At its February 4, 2016, meeting the Energy Board showed support for the IQAP with unanimous support, as
presented by staff at the time, and the Board followed up with a memo provided to Council dated May 3, 2016
expressing their unanimous support for the program. Staff shared recent updates to the IQAP proposal with
the Board via a memo highlighting changes.
At the Water Board’s June 2, 2016 work session, staff presented the IQAP, as proposed at the time. The
Board provided a memo to Council dated June 6, 2016 with general comments to consider. Staff returned to
the Board on April 5, 2018 and the Board reaffirmed its support for income-qualified assistance programming.
(Attachment 1)
Agenda Item 8
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PUBLIC OUTREACH
As a reminder to Council, letters of support on the initial proposal were provided in 2016 from the Affordable
Housing Board, United Way, LEAP, and Energy Outreach Colorado. These letters were shared with Council in
previous agenda packets.
A customer email recognizing the value of the low income programs is provided by Utilities. (Attachment 2)
ATTACHMENTS
1. Water Board Minutes, April 5, 2018 (PDF)
2. Customer Comment Email (PDF)
DRAFT
DRAFT Meeting Minutes – March 15, 2018 Page 1
DRAFT Fort Collins Utilities Water Board Minutes – SPECIAL MEETING
Thursday, April 5, 2018
Water Board Chairperson City Council Liaison
Brett Bovee, 970-889-0469 Wade Troxell, 970-219-8940
Water Board Vice Chairperson Staff Liaison
Kent Bruxvoort, 970-219-2832 Carol Webb, 970-221-6231
ROLL CALL
Board Present: Chairperson Brett Bovee, and Board Members Phyllis Ortman, Rebecca Hill,
Steve Malers, Andrew McKinley, Jim Kuiken, Michael Brown, and Jason Tarry, John Primsky
Board Absent: Board Members Lori Brunswig, Kent Bruxvoort
OTHERS PRESENT
Staff: Carol Webb, Lance Smith, Lisa Rosintoski, Pete Iengo, Randy Reuscher, Pete Iengo,
Adam Jokerst, Theresa Connor
Members of the Public: Richard Stave.
Meeting Convened
Chairperson Bovee called the meeting to order at 5:32 p.m.
Public Comment
Rich Stave - IQR meeting – not a big fan of shared rates and time of use rates. Biased toward
low income people. Not supportive of time of use rates for water.
Halligan Memo
Staff Adam Jokerst provided overview of the Halligan cost increases, memo, and process
to date. Board Member Jim Kuiken moved that the board memo be sent to Council.
Phyllis Ortman seconded the motion. All in favor was unanimous.
Income Qualified Assistance Program (IQAP), formerly known as Income Qualified Rate
(IQR)
(Attachments available upon request)
Utilities Customer Connections Manager Lisa Rosintoski and Rate Analyst Randy Reuscher
summarized the history of the Income Qualified Rate and the evolution to the current proposal of
the Income Qualified Assistance Program. They discussed the implementation timeline and
requested the support of the Water Board for the proposal that will be presented to City Council
on April 17 for their approval.
Discussion Highlights
ATTACHMENT 1
DRAFT
DRAFT Meeting Minutes – March 15, 2018 Page 2
Board members commented on and inquired about various related topics including how much
money is in the payment assistance fund, how LEAP relates to the new proposal, whether Energy
Board had previously weighed in on the proposal, the savings per household participating, the
impact on personnel resources, and how we can better use education tools around conservation
and asking customers to donate to a payment assistance fund. Staff indicated that we do allow
this currently on bills where customers can round their bill up to support programs. Lisa
Rosintoski commented that we save money on administration by partnering with LEAP (one
form, multiple benefits). Pete Iengo commented that customers participating must attend
conservation training, etc. to also reduce their use. The Board asked about the income level of
households that can participate (about $40K per year). Board members asked about future
potential efficiency programs, including the income-qualified rebates which focus on data from
the IQAP program. Board members also asked how improvements are handled for rentals. Board
members reiterated the need for the IQAP to help drive conservation. Staff indicated this is part
of the implementation plan and will use data to drive these programs. The Board asked about
potential sunset in the future of the program. Staff reiterated that data will drive these decisions.
The Board asked about partnerships to serve more transient populations. Staff indicated the rate
will follow them regardless of where they live and customers have to reapply every year. One
board member suggested that we message the cost of this program to other customers. Staff
indicated it was pennies.
Board Member Brett Bove moved that Water Board support adoption of the Income
Qualified Assistance Program in October 2018, to provide a 23% discount on identified
components of a customers monthly utility bills for electric, water, and wastewater charges
for those customers that quality for LEAP and opt-in to the utility IQAP program,
conditioned on that it is a 3 year pilot and cost not to exceed $273,000 from water and
wastewater funds and the program must see measurable conservation benefits from the
participants. Board Member Phyllis Ortman seconded the motion.
• Vote on the Motion: It passed 8-1.
Adjourn
The meeting was adjourned at 6:25 pm.
Convene Regularly Scheduled Work Session
Approved by the Water Board on April 5, 2018.
________________________________ ______________
Staff Liaison Carol Webb Date
From: Kell
Sent: Monday, April 09, 2018 9:41 AM
To: Wade Troxell <WTroxell@fcgov.com>
Subject: Utility Bills and Poverty
Mayor Troxell,
My name is y, I met you last year at the NCHA homeschool meet and greet you did for us. I want to
thank you for serving as mayor. I also want to offer some feedback on my experience as a homeowner in
Fort Collins.
In short, my husband and I bought the most affordable house we could find in a safe neighborhood
several years ago. We were shocked to recieve our first city electric bills, some of which were over $500
and $600 (nearly as high as our mortgage and nearly half of my husband's monthly take-home from
PSD). We don't grow pot or have anything like that which would raise our bill. We don't have gas
hookups at our house, so we depend on electricity. We had our home tested through several programs
for efficiency and came to realize it is just the fact that we have electric heat and the city has the tiered
electric rates which are punitive to low income households who rely on electric only. We have survived
thanks to LEAP and SAP. We are so thankful for those programs (though SAP is only for one year).
Thanks for taking the time to read my email.
ATTACHMENT 2
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ORDINANCE NO. 053, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF
FORT COLLINS TO CHANGE THE NAME OF TIME-OF-USE
ELECTRIC RATES TO TIME-OF-DAY ELECTRIC RATES
WHEREAS, in 2015, Electric Utility staff identified that deployment of advanced
metering infrastructure in the City had created the potential for more refined application of
electric rates and practices, including studying whether a rate structure based on the time of day
when use occurred, referred to at the time as “time-of-use” (TOU), as opposed to the seasonal
tiered rates, could encourage more efficient consumption across the system; and
WHEREAS, on July 21, 2015, City Council adopted Ordinance No. 078, 2015, approving
amendments to Chapter 26 of the City Code and authorizing a residential pilot TOU rate study to
run from October 1, 2015 through September 30, 2016; and
WHEREAS, at the conclusion of the pilot study, staff reported to City Council data on
two TOU rate sub-schedules, analyzed based on four objectives: promotion of energy
conservation, efficient reduction in daily customer demand, customer preference, and revenue
sustainability compared to operating expenses; and
WHEREAS, based on the results of the study, Utility Services staff proposed a transition
from tiered-based electric rates to a TOU-based rate structure, for meter readings on or after
October 1, 2018; and
WHEREAS, on November 21, 2017, City Council adopted Ordinance No. 155, 2017,
approving amendments to Chapter 26 of the City Code and transitioning the electric service rates
to a TOU-based structure for meter readings on or after October 1, 2018; and
WHEREAS, Utility Service staff has determined changing the name of the electric
service rate structure approved in Ordinance No. 155, 2017 from “time-of-use” to “time-of-day”
more clearly communicates to customers how rates will be applied throughout a service day; and
WHEREAS, staff recommends amending Chapter 26 of the City Code to change the
name of the electric service rates that will go into effect for residential customers for meter
readings on or after October 1, 2018 from “time-of-use (TOU)” to “time-of-day (TOD)” 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.
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Section 2. That Section 26-464(c)(2) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-464. Residential energy service, schedule R.
. . .
(c) Monthly rate.
(2) Time of useday. 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:
. . .
Section 3. That Section 26-465(c)(2) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
. . .
(c) Monthly rate.
(2) Time of useday. 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:
. . .
Introduced, considered favorably on first reading, and ordered published this 17th day of
April, A.D. 2018, and to be presented for final passage on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 054, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO ADOPT DISCOUNTS APPLICABLE TO WATER,
WASTEWATER AND ELECTRIC RATES, FEES, AND CHARGES
APPLIED UNDER AN INCOME-QUALIFIED ASSISTANCE PROGRAM
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, as presented at the January 30, 2018, City Council work session, staff has
identified benefits available through an Income-Qualified Assistance Program (“IQAP”) that
improves adoption of conservation practices by qualifying low-income ratepayers who “opt-in”
to receive discounts that produce reasonable utility bill affordability; and
WHEREAS, based on direction provided by the City Council on January 30, 2018, staff
developed optimal program components, requirements, and utility service discounts for
residential water, wastewater, and electric services, as further set forth herein; and
WHEREAS, Utilities Services staff has recommended a stepped rollout of an IQAP to
produce data for City Council on specific utility purpose goals, including ensuring the discount
accounts for state and regional programs already offering similar benefits to qualifying
participants, achieving tangible and sustainable efficiency and conservation improvements at
participant addresses, and verifying and improving the City’s understanding of low-income
efficiency and conservation locations on which to focus outreach and monitoring efforts; and
WHEREAS, Articles III, IV, and VI of Chapter 26 of the City Code establish the water,
wastewater, and electric utilities as utility services furnished by and respective enterprises of the
City; and
WHEREAS, staff designed proposed IQAP rates in consideration of regional discounts
available to low-income utility customers, including Larimer County’s Low-income Energy
Assistance Program (LEAP), and City Charter and Code requirements that utility rates generate
sufficient revenues to provide the utility services described herein; and
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WHEREAS, the Water Board considered proposed water and wastewater-related rate
adjustments for IQAP initially on June 2, 2016 and again at its April 5, 2018 regular meeting,
and recommended approval of the proposed adjustments; and
WHEREAS, the Energy Board considered proposed electric-related rate adjustments for
IQAP customers on February 4, 2016, and provided recommendations of approval to City
Council on May 3, 2016; 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 electric and 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 26-127(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-127. - Schedule B, meter rates.
(a) Residential rates.
(1) Residential customers with one (1) dwelling unit shall pay the sum of the
following changes:
a. Base monthly charge for residential customers with one (1) dwelling unit $16.86
b. Quantity monthly charge for residential customers with one (1) dwelling
unit (volumetric)
Tier 1 - For the first seven thousand (7,000) gallons used per month, per
one thousand (1,000) gallons
$2.611
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
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:
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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 (volumetric)
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
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
(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 (volumetric)
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.
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
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 Rate
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Customer
A
Single-family residential user
(flat rate)
Per month $40.05
Single-family residential user
(metered water use)
1. Per month (base) $17.90
2. Plus, per 1,000 gallons per month
(volumetric)
$3.477
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 single family customers who have not yet established a winter
quarter water use at the service address, a system average of 4,000
gallons per month shall be billed.
2. After establishment of a winter quarter water use at the service
address, the monthly amount billed shall be based on a minimum of
3,000 gallons per month.
B
Duplex (two-family) residential
users (flat rate)
1. Per month (base) $55.41
2. Income-qualified assistance discount.
Discount applied to monthly base charge for
IQAP participating residential customers, as
further described in Section 26-724 of the
Code.
23 percent
Duplex (two-family) residential
users (metered water use)
1. Per month (base) $20.52
2. OrPlus, per 1,000 gallons per month,
whichever is greater, to be calculated on a
monthly basis (volumetric)
$3.081
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
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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)
and winter quarter based
nonresidential user
1. Base charge per month per dwelling unit
served (base)
$2.75
2. Plus, per 1,000 gallons per month
(volumetric)
$3.498
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.
. . .
. . .
Section 4. That the table contained in Section 26-464(c)(2) of the Code of the City of
Fort Collins are hereby amended and renumbered to read as follows:
Sec. 26-464. Residential energy service, schedule R.
. . .
(c) Monthly rate.
. . .
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(2) . . .
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)2. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
(b)3. Off-Peak
Per kWh $0.2015
Per kWh $0.0428
2d. Non-summer. For billings based on consumption during the months of January through
April and October through December.
(a)1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
(b)2. Off-Peak
Per kWh $0.1788
Per kWh $0.0411
de. Energy efficiency tier charge, per kilowatt hour for total
consumption over 700 kWh in a billing month (regardless of
on-peak or off-peak)
Per kWh $0.0166
ef. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
e. Income-qualified assistance discount. Discount applied to monthly charges in
“a.”, “b.”, and “c.” for IQAP participating residential customers, as further
described in Section 26-724 of the Code.
23 percent
. . .
Section 5. That the table contained in Section 26-465(c)(2) of the Code of the City of
Fort Collins is hereby amended to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
. . .
(c) Monthly rate.
. . .
(2) . . .
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
-7-
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. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all monthly service charges billed pursuant to this Section
6 percent
e. Income-qualified assistance discount. The discount applied to the monthly charges in
“a.”, “b.”, and “c.” above for IQAP participating residential customers, as further
described in Section 26-724 of the Code.
23 percent
. . .
Section 6. That a new Section 26-724 is added to the Code of the City of Fort Collins
to read as follows:
Sec. 26-724. Residential Income-Qualified Assistance Program.
(a) Purpose. To benefit ratepayers of the affected Utilities by enabling residents with
household incomes below a certain level to commit a reasonable level of household
income to monthly utility bills and in doing so, achieve greater conservation and
efficiency improvements and consumption behaviors in qualified program households.
(b) Qualification. As set forth in this Section, a discount on certain components of
City utility service rates applied under this Chapter shall be available for qualified
customers who satisfy the following criteria:
(1) maintain an account in the customer’s name directly for City residential
electric and/or water and wastewater utility services, except that customers
residing in multi-family properties with more than two (2) dwelling units must
hold water service accounts in their own names to satisfy this criterion; and
(2) have an annual household income that qualifies for the Larimer County
Low-Income Energy Assistance Program (LEAP); and
(3) one or more users at the account address apply for and enroll in LEAP
during the preceding LEAP program year (November 1 through April 30), and
when LEAP qualification is based on a member of the household other than the
customer, the customer produces proof of lawful presence in the U.S. in the valid
forms accepted by LEAP; and
(4) exercise reasonable efforts to improve the water and energy efficiency of
the account premise, participate in Active Energy Management Education
sessions, and meet program milestones determined according to guidelines
established by the Utilities Executive Director, which guidelines may include
procedures for disenrollment.
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(c) Applications. Applications for discounts under this Section must be submitted
annually in accordance with an administratively established schedule available from the
Fort Collins Utilities.
(d) Rates. The discounts applied to monthly base and volumetric rates for qualified
IQAP customers shall be as set forth in Sections 26-127(a), 26-280, 26-464(c), and 26-
465(c) of this Code on meter readings during the period of August 1 through July 31
(beginning October 1, 2018 and ending July 31, 2021).
(e) Appeal of decision. A decision that an applicant does not qualify to participate in
this program, except when the decision is based on lack of qualification for LEAP, may
be appealed to the Utilities Executive Director, who shall, prior to making his or her
decision, and as he or she deems appropriate, confer with one (1) or more financial
experts in reviewing such appeal, including LEAP officials.
Section 7. That the modifications set forth shall be effective for meter readings on or
after October 1, 2018.
Introduced, considered favorably on first reading, and ordered published this 17th day of
April, A.D. 2018, and to be presented for final passage on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk