HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/04/2020 - ITEMS RELATING TO ELECTRIC AND WATER RATES, FEES A Agenda Item 14
Item # 14 Page 1
AGENDA ITEM SUMMARY November 4, 2020
City Council
STAFF
Randy Reuscher, Utility Rate Analyst
Lance Smith, Utilities Strategic Finance Director
Cyril Vidergar, Legal
Eric Potyondy, Legal
SUBJECT
Items Relating to Electric and Water Rates, Fees and Charges.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 139, 2020, Amending Chapter 26 of the Code of the City of Fort Collins
to Revise Electric Rates, Fees and Charges.
B. First Reading of Ordinance No. 140, 2020, Amending Chapter 26 of the Code of the City of Fort Collins
to Revise Water Rates, Fees, and Charges. This Ordinance has been revised.
The purpose of this item is for Council to consider the above-listed electric and water rate ordinances, adjusting
monthly charges for both electric and water services in 2021. The revenue requirements to support the 2021
budget require increasing monthly charges for electric service by 3.0%. Additionally, a reduction in pricing is
proposed for the voluntary Green Energy program, reducing the charge per kWh from 1.9 cents per kWh to 1.6
cents per kWh in 2021. A 2% increase for water services is proposed to help offset mitigation costs related to
the Cameron Peak Fire. Upon adoption, both rates would be effective January 1, 2021.
STAFF RECOMMENDATION
Staff recommends adoption of both Ordinances on First Reading.
BACKGROUND / DISCUSSION
The following table summarizes the proposed increase for 2021 by fund. Currently, there are no proposed
changes to wastewater or stormwater service fees associated with the City Manager’s Recommended budget.
Agenda Item 14
Item # 14 Page 2
Electric
Staff is proposing a 3% rate increase for the electric fund in 2021. This includes a 0.4% proposed increase in
wholesale expenses for Fort Collins, and the remaining 2.6% to increase operating revenues enough to offset
operating expenses and reductions in reserves, allowing funds to be set aside for future capital improvements.
Criteria 2019 2020 2021
1.4%0.3%
1. PRPA wholesale energy costs 1.4%0.3%
2. 3 yr ave Operating Income < 0 5.0%3.9%2.4%
3. Debt Coverage Ratio < 2.0
4. Available Reserves less Capital Need < 0
Sum of Above 6.4%5.3%3.0%
5. Lesser of 5.0% or the sum of above 5.0%5.0%3.0%
Increase Carried Forward 1.4%0.3%----
The electric cost-of-service (COS) model is updated every two years. Rate class adjustments are driven by
many factors, including rate class consumption, growth in customer counts, load factors, and the peak
demands put on the distribution system. Recent model updates show slightly larger impacts for small to mid-
sized commercial classes, and slightly less for residential, industrial, and substation customers. All rate class
variations are within 1%, up or down, from the 3% baseline.
Agenda Item 14
Item # 14 Page 3
Platte River Power Authority (Platte River) is proposing a 1.5% increase to the wholesale rate for 2021, but the
impacts to each of the 4 cities varies, with Fort Collins seeing less of an impact than the other cities and is
projected to be 0.4%. The lesser impact is driven largely by the elimination of the premium intermittent energy
charge, where Fort Collins has up to this point purchased a higher percentage of renewables than the load
share allocation. The increase is also lower due to a more favorable load factor, as compared to Loveland,
Longmont, and Estes Park.
The percentage changes in the wholesale rate will vary, with an overall shift from energy charges to the
demand charges. There will also be a 5.7% increase in the owner charge. The largest change is in a lower
intermittent energy charge, where the cost will be lower by just over 1 cent per kWh, or 25.1%, and is the result
of the lower trending costs of renewables.
Another proposed change for 2021 is related to the Green Energy Program (fcgov.com/greenenergy), which
provides an option for customers to subscribe to renewable electricity for 100% of their monthly usage or in
predetermined kWh blocks. The proposed 2021 retail price premium is 1.6 cents per kWh, a reduction of
nearly 16% from the current 1.9 cents. This considers that customers receive over 50% of their electricity from
non-carbon sources from the standard resource mix. In other words, the premium is adjusted by the non-
carbon percentage to be more precise when applied to the monthly usage for a customer who wants to be
Agenda Item 14
Item # 14 Page 4
100% renewable. There is also a small amount built into the premium which will be used to develop future
investments in the distribution system over time to allow for higher penetration of local renewables.
Several key resource changes are driving these updates. The new Roundhouse wind and Rawhide Prairie
solar projects will both be fully operational next year, joining other existing wind and solar resources from
Platte River and dramatically increasing the amount of renewable energy supplied to the cities. In addition, the
legacy renewable energy specific wholesale tariff (Tariff 7) will be eliminated in 2021. Fort Collins has
historically purchased Tariff 7 energy in amounts greater than the City’s load ratio share.
Green Energy Program Summary
Program 2020 2021 Notes
Price per kWh 1.9 cents 1.6 cents 16% decrease
Wind Mix 100% 77% Colorado and Wyoming sources
Solar 0% 23% Local and Rawhide locations
Water
The Cameron Peak Fire (CPF) ignited on August 13th, 2020 in the Arapaho and Roosevelt National Forests.
Prior to the fire, the budget process was starting, and a 10-year rate and debt issuance forecast was presented
to the Council Finance Committee. The table below shows the 10-year rate and debt issuance forecast for this
utility as it stood then. It reflects the anticipated capital investment needs and ongoing operations and
maintenance (O&M) expenses associated with the water utility for the next decade without the fire.
As discussed at the October 13th Work Session and with the Council Finance Committee on October 19th, it is
anticipated that there will be some costs associated with this fire that will be the obligation of the Water
Enterprise Fund. Additional capital investments and O&M expenses resulting from the fire will require either
realizing additional revenues through a rate increase, drawing down reserves ahead of the next debt issuance
or delaying other capital investments. While it is still not certain what mitigations will be necessary or allowed
on the burned areas, the impacts to the water quality will need to be addressed.
Fort Collins is again partnering with other affected water providers to realize both economies of scale in the
mitigation efforts and a coordinated request for federal assistance. At this point, mitigation costs are estimated
to cost between $8M and $32M depending on several factors. It is expected that there will be a matching
federal grant available for these efforts which would reduce the cost to ratepayers to $1 -4M. If the proposed
2.0% rate increase for 2022 were to be implemented in 2021, this would increase revenues in 2021 by
approximately $600,000.
Residential Bill Impacts
The typical residential customer’s total utility bill will increase in 2021, under the proposed rate changes, by
1.8% on average, per month, or $3.33. The table below shows the impacts of the proposed rate change for a
typical residential customer that receives all four services from Fort Collins Utilities.
Agenda Item 14
Item # 14 Page 5
CITY FINANCIAL IMPACTS
Electric: In 2021, the proposed 3.0% increase would add an estimated $3.3M to operating revenues, which
will fully address ongoing operating losses. The attached one-page budget summary for the Light and Power
Enterprise Fund shows the budget assuming this proposed 3.0% rate increase is adopted. Because reserves
have been drawn down already, any reduction in the proposed 3.0% rate increase would need to be offset by a
corresponding amount in the accepted budget Offers.
The rate increases implemented in the previous budget cycle were necessary to increase operating revenues
at a rate faster than operating expenses have been growing. Operating expenses are being actively managed.
In 2020, mid-year budget reductions totaling $1.0M were identified and implemented. These reductions,
including a hiring freeze and no salary adjustments in 2021, were necessary to minimize the amount of
increase being requested here. The proposed 2021 ongoing operations and maintenance (O&M) budget of
$130.8M reflect these efforts. The 5-year growth on O&M is 4.4% (1.1% annualized) higher than the 2017
actual O&M, which is below inflation for the same period.
Water: The 2% water increase is expected to generate approximately $600,000 in 2021 that was
unanticipated during the budget process. This additional revenue in 2021, along with unanticipated operating
revenues in 2020, will help to offset the anticipated fire mitigation expenses which are expected to be between
$1.0M and $4.3M to the Water Fund.
BOARD / COMMISSION RECOMMENDATION
Electric: At the September 10, 2020, meeting, the Energy Board voted unanimously to support the 2021
electric rate increase and changes, as proposed by staff.
Water: The proposed increase to the Water Fund related to fire mitigation expenses has not been presented
to the Water Board for formal consideration yet. Staff provided the Water Board with a memo on the fire dated
October 6th which discusses the potential rate increase. At the time of the memo the next step was to discuss
the potential with the Council Finance Committee on October 19, 2020.
Agenda Item 14
Item # 14 Page 6
PUBLIC OUTREACH
Customer Accounts staff has been communicating with customers in recent months the potential for a 3.0%
overall electric rate increase for 2021. The need for a water rate increase has arisen more recently, therefore
this has not been communicated to customers at this point.
Electric utility customers receiving service outside the City limits received a postcard 30 days before Council’s
consideration of this Ordinance, describing the proposed rate increase and their opportunities to participate in
Council’s public hearing process.
ATTACHMENTS
1. Light and Power 2021 Budget Summary (PDF)
2. Energy Board Minutes (PDF)
3. Powerpoint Presentation (PDF)
LIGHT & POWER FUNDActual 2017 Actual 2018 Actual 2019 Budget 2019 Budget 2020Budget 2021 Budget 2021REVENUE PROJECTIONOperating Revenue $128,730,192 $131,699,040 $135,131,321 $135,573,000 $140,395,000 $137,900,000% Change2.3% 2.6% 2.9% 3.6% -1.8%Atached PIF / Contributions $5,490,709 $4,302,440 $3,492,813 $3,230,000 $3,230,000 $2,830,000% Change-21.6% -18.8% -24.9% 0.0% -12.4%All Other Revenues $2,785,561 $2,553,726 $2,903,175 $2,069,686 $1,844,020 $1,467,660% Change-8.3% 13.7% -19.0% -10.9% -20.4%Total Revenues $137,006,462 $138,555,206 $141,527,309 $140,872,686 $145,469,020 $142,197,660 $142,197,660% Change1.1% 2.1% -0.5% 3.3% -2.2%Actual 2017 Actual 2018 Actual 2019 Budget 2019 Budget 2020Ongoing Offer Reduction Offer Budget 2021CURRENT OFFERSOffer Result Title15.1 OTHER Utilities: Light & Power - Payments and Transfers $17,180,271 $16,119,250 $15,940,250 $17,189,780 $17,568,978 $17,224,819 $17,224,819% Change-6.2% -1.1% 7.8% 2.2% -2.0%11.1 ECON Wholesale Purchased Power $89,413,232 $92,104,424 $91,707,977 $94,441,000 $97,817,000 $93,740,000 $93,740,000% Change3.0% -0.4% 3.0% 3.6% -4.2%12.121 ENV Purchase Pwr - Community Renewables (Tariff 7) $1,900,007 $1,899,993 $1,900,000 $1,900,000 $1,900,000 $1,900,000 $1,900,000% Change0.0% 0.0% 0.0% 0.0% 0.0%12.122 ENV Purchase Pwr - Community Renewables $754,063 $770,017 $1,315,861 $1,528,300 $1,771,500 $2,014,700 $2,014,700% Change2.1% 70.9% 16.1% 15.9% 13.7%11.2 ECON L&P Operations $10,034,802 $10,836,548 $9,857,112 $10,467,457 $10,756,362 $10,188,792($159,009)$10,029,783% Change8.0% -9.0% 6.2% 2.8% -6.8%12.123 ENV Energy Services $4,529,922 $4,803,655 $3,375,430 $4,630,758 $4,674,927 $4,732,842($397,596)$4,335,246% Change6.0% -29.7% 37.2% 1.0% -7.3%12.125 ENV Utilities: Light & Power - Renewable Customer Programs $825,680 $1,026,050 $630,764 $625,000 $625,000 $625,000 $625,000% Change24.3% -38.5% -0.9% 0.0% 0.0%12.124 ENV Demand Response $586,908 $665,824 $756,177 $629,460 $638,663 $638,663$100,337$739,000% Change13.4% 13.6% -16.8% 1.5% 15.7%24.2 HPG City Manager's Office$108,145 $111,390 $111,389 $111,389% Change3.0% 0.0%67.1 HPG General Legal Services$86,407 $89,000 $79,244 $79,244% Change3.0% -11.0%25.1 SAFE City Managers Office: Office of Emergency Management$12,000 $13,000 $16,316 $16,316% Change8.3% 25.5%Subtotal Current Offers $125,224,885 $128,225,761 $125,483,571 $131,618,307 $135,965,820 $131,271,765($456,268)$130,815,497% Change2.4% -2.1% 4.9% 3.3% -3.8%CAPITAL PROJECTSOffer Result Title11.3 ECON Utilities: Light & Power - Ongoing Capital - System Addition/Replacement $4,564,438 $5,355,077 $5,427,972 $5,943,120 $5,585,120% Change17.3% 1.4% 2.9%11.4 ECON Utilities: Light & Power - Ongoing Capital - Vehicles & Equipment $372,000 $522,000 $575,000($369,000)$206,000ATTACHMENT 1
% Change11.5 ECON Utilities: Light & Power - Ongoing Capital - Substation Capital Upgrades $649,000 $624,000 $748,000($498,000)$250,000% Change11.6 ECON Utilities: Light & Power - Ongoing Capital - Electric Distribution Transformer Replacement $577,500 $922,600 $970,000($250,000)$720,000% Change11.7 ECON Utilities: Light & Power - Ongoing Capital - Attrition Based LED Streetlight Conversion $341,360 $351,000 $642,000 $642,000% Change11.8 ECON Utilities: Light & Power - Ongoing Capital - System Cable Replacement $500,000 $500,000 $1,100,000($490,000)$610,000% Change11.9 ECON Utilities: Light & Power - Ongoing Capital - Distribution Automation$160,000 $160,000% Change16.1 CUL Utilities Capital Project: Art in Public Places$14,800 $14,076 $14,076 $14,220% ChangeOther Capital Work Completed% ChangeSubtotal Capital Projects$7,809,737 $8,361,648 $10,152,196 $0 $8,187,340% Change7.1% -2.1%TOTAL WITH CAPITAL PROJECTS$139,428,044 $144,327,468 $141,423,961($456,268)$139,002,837% Change3.5% -3.7%ENHANCEMENTS / REDUCTIONS / REDEPLOYOffer Result Title11.11 ECON Utilities: REDUCTION Light & Power Operations($391,009) ($391,009)12.128 ENV Utilities: REDUCTION Energy Services($297,259) ($297,259)12.132 ENV Utilities: ENHANCEMENT Light & Power - Epic Loans Capital Accounting $3,060,00030.13 NLSH Energy Code Compliance Specialist Redeployment$013.21 HPG Utilities: ENHANCEMENT Exadata$181,796 $181,79611.13 ECON Utilities: ENHANCEMENT Light & Power - Asset Management - Advanced Metering Infrastructure Equipment and Technology Upgrade $541,000($241,000)$300,00011.19 ECON Utilities: ENHANCEMENT Light & Power - Capital Project - System Relocations Due to Road, Intersection, and Alley Improvements $478,000($178,000)$300,00012.131 ENV Utilities: ENHANCEMENT Light & Power - Demand Response Technology Upgrade$679,000($243,500)$435,50011.15 ECON Utilities: ENHANCEMENT Light & Power - Capital Project - Advanced Distribution Management System (ADMS) Additional Functionality $150,000 $150,00011.18 ECON Utilities: ENHANCEMENT Light & Power - Capital Project - Drake & Dixon Automated Tie Circuit $572,000($160,000)$412,00011.23 ECON Utilities: ENHANCEMENT Purchased Power Rate Increase$753,000 $753,00013.19 HPG Utilities: ENHANCEMENT Data Management Program and Analytics Platform$228,627 $228,62711.21 ECON Utilities: ENHANCEMENT Light & Power - Joint Training Field with Poudre Fire Authority$110,000 $110,00013.20 HPG Utilities: ENHANCEMENT Asset Risk Register$250,000 $250,00011.20 ECON Utilities: ENHANCEMENT Light & Power - Capital Project - Disaster Recovery Site Improvements $571,000 $571,00012.133 ENV Utilities: ENHANCEMENT Light & Power - Non-Residential Solar Rebates$275,000 $150,00011.22 ECON Utilities: ENHANCEMENT Light & Power - New Operational Technology Equipment Testing and Miscellaneous Capital $50,000 $50,00012.130 ENV Utilities: ENHANCEMENT Light & Power - Demand Response Devices$55,000 $55,000Subtotal Enhancements$1,409,481 $3,943,423($688,268)$2,432,655TOTAL WITH ENHANCEMENTS$139,428,044 $145,736,949 $145,367,384($688,268)$141,435,492% Change4.5% -3.0%REVENUE PROJECTION LESS ALL OFFERS$1,444,642 ($267,929) $762,168
ENERGY BOARD
REGULAR MEETING – NOTES ABRIDGED FOR 2021 RATES & FEES UPDATE
September 10, 2020 – 5:30 pm
Remote – Zoom Meeting
|
ROLL CALL
Board Members Present: Amanda Shores, Jeremy Giovando, Bill Becker, Dan Gould, Alan Braslau,
Marge Moore, Steve Tenbrink, Sue McFaddin
Board Members Absent: John Fassler (Sue McFaddin departed the meeting early)
OTHERS PRESENT
Staff Members Present: John Phelan, Christie Fredrickson, Cyril Vidergar, Tim McCollough, Lance
Smith, Randy Reuscher, Jamie Gaskill, Cyril Vidergar, Rhonda Gatzke
Platte River Power Authority: Trista Fugate
Members of the Public: Rich Stave
2021 RATES & FEES UPDATE
Randy Reuscher, Lead Analyst, Utility Rates
John Phelan, Energy Services Senior Manager
Staff is proposing a 3% increase in the Electric Fund, which is composed of 0.3% carryover from the prior
year’s rate smoothing, 0.3% wholesale cost increase for 2021, and 2.4% due to negative operating
income and future capital project needs. The electric rate impact across class shows the residential class
at a 2.6% increase, some of which is due to the Time of Day rate structure and a reduction of the Utility’s
demand costs. Since no other services are increasing in 2021, the average residential utility customer
who receives all four services can expect an increase of 1.3% per bill, per month as compared to 2020.
Mr. Reuscher said staff also monitors surrounding utility rate increases, and though they do not drive
decisions it is useful to benchmark.
Staff is also proposing a 3% increase in Electric Capacity Fees (ECFs). These fees are presented every
two years (along with other City-wide fee adjustments) along with model updates, and in the alternating
year an inflationary factor is applied. 2021 is a year to apply the inflationary factor and these increases
apply to all residential and commercial developments equally.
Subscribing to the Green Energy program with the City means that a customer can claim their home or
business is powered from renewable energy. In the current Green Energy program, the additional charge
is paying for the price premium through a renewable energy tariff with Platte River Power Authority. In
2021, staff is proposing a price premium of 1.5 cents per kWh, which is a 20% decrease from 2020’s 1.9
cents per kWh. Currently, the product offered to subscribed customers is 100% wind, but moving forward
it will be composed of 13% local solar (from the Solar Power Purchase Program), and the remaining will
come from Platte River’s intermittent energy product. This should ultimately total 23% solar energy and
77% wind energy.
Mr. Phelan said there are plans to rebrand this program, potentially in naming and outreach, as staff
capacity becomes available. The price premium change was prompted by the new Roundhouse wind
project and the Rawhide Prairie solar project both coming online, which is driving an overall decrease in
the cost of the intermittent product, as well as the dissolution of Tariff 7 wholesale surcharge. He added
that approximately 5% of the 1.5 cents will be initially dedicated toward accruing funding that will be used
for future investment in the distribution system to enhance the City’s ability to host more DERs.
ATTACHMENT 2
ENERGY BOARD
REGULAR MEETING
Board member Braslau asked how the Green Energy Program drives increased investment in renewable
resources, beyond what the City is already doing? Mr. Phelan said beyond the 5% investment allocation
of the premium, there are no specific plans to take those funds to build new investments. Board member
Braslau asked if it makes sense to retain the 20% decrease and build a fund for infrastructure from that.
Mr. Phelan said staff hopes the lower price premium will encourage more subscriptions. Board members
expressed concern that people who are buying green energy are buying it because they already believe
in it, and there is less weight in the price point.
Board member Becker asked if the proposed 3% increase is meant to be equally applied across the
board or how it will distribute? Mr. Reuscher explained the 3% is at the fund level, but once the
components are built in there are more variables. The wholesale components (roughly 70% of the rate)
are direct pass throughs to each rate class. The distribution only portion will either go into the fixed
charge or the energy or demand component, which is dependent on the rate class.
Board member McFaddin asked what happens for solar rate payers. Mr. Reuscher said the charges will
go up 3% depending on their rate class, but the credit rate will remain flat as it did in 2020.
Mr. McCollough added if the Board would like to review individual rate components at their October 8
meeting, there should be enough time between the Board meeting and the November 4 Council Meeting
material deadline.
Board member Becker moved the Energy Board support the proposed changes to 2021 electric
utility rates and fees, as presented.
Board member Braslau seconded the motion.
Discussion:
Board members want to discuss the individual rate component and policy implications of the fees with
their Council Liaison (Ross Cunniff), ideally at their October meeting. Mr. Phelan asked the Board to
provide specific set of principles for Mr. Reuscher to consider, and he can and provide additional
feedback and options in October.
Mr. McCollough said Mr. Reuscher has a set of driving principles that guide the rate design, so there are
no fundamental changes from previous years. If the Board desires a policy level change, that information
would be helpful for Mr. Reuscher.
Board member Becker feels strongly that the Utility needs to work toward a fixed charge recovery as it
continues to encourage customers to use less electricity. Board members Tenbrink and Moore agreed
with Mr. Becker’s opinion, and would like to hear more about the rate components in the future. Mr.
Becker suggested adding language to his proposed motion:
Board member Becker moved to support the proposed changes, but the Board will discuss the
allocation of rate components and policy implications at their October meeting.
Board member Braslau seconded the motion.
Vote on the motion:
It passed, 7-0, with two absent.
2021
Lance Smith, Utilities Strategic Finance Director
11 .04.2020
ATTACHMENT 3
2
2021 Proposed Changes
Electric Rate Adjustment Financial Metrics
3
Crit eria 2019 2020 2021
1.4%0.3%
1. PRPA wh olesale energy cost s 1.4%0.3%
2. 3 y r av e Operat ing I nc ome < 0 5.0%3.9%2.4%
3. Debt Cov erage Ratio < 2.0
4. A vailable Reserves less Capit al Need < 0
Sum of A bove 6.4%5.3%3.0%
5. Lesser o f 5.0% or the sum of above 5.0%5.0%3.0%
Increase Carrie d Forward 1.4%0.3%----
4
2021 COS Model Updates
Proposed 2021 Residential Average Bill
6
2021 Proposed Changes
El ectric Wate r WW Stormwate r
Longmont 5.9%9%0%0%
Gr eeley N/A 6%10%8%
Loveland 3%7%7%1.9%
Fo rt Collins 3%2%0%0%
Boulder N/A 8%5%12%
Co lorado Springs 0%0%0%N/A
2021 Projected Ra te Increases
7
Green Energy Program
Solar energy 23%
Wind energy 77%
Green Energy Program Summary
Program 2020 2021 Notes
Price per kW h 1.9 cents 1.6 cents 16% decrease
Wind Mix 100%77%Colorado and Wyoming sources
Solar 0%23%Local and Rawhide locations
Payment Assistance
Fund
(One-Time Assistance)
364 people served
$85,751 total benefit
$236 average assistance
payment
2019 Impact –Payment Assistance
8
Income-Qualified
As sistance Program
(Discounted Rate)
700 average participants
per month
$146,180 total benefit
23% savings per customer
Medical Assistance
Program
(Discounted Rate)
167 average participants
per month
$38,787 total benefit
22% savings per customer
9
-1-
ORDINANCE NO. 139, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE ELECTRIC RATES, FEES, AND CHARGES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to fix, establish, maintain and provide for the collection of such rates, fees or
charges for utility services furnished by the City as will produce revenues sufficient to pay the
costs, expenses and other obligations of the electric utility, as set forth therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, revenues from the rates, fees or charges for utility services set forth herein
shall be used to defray the costs of providing such utility services as required by the Charter and
the City Code; and
WHEREAS, the City purchases bulk wholesale electric power from Platte River Power
Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy,
dated May 30, 2019; and
WHEREAS, Utilities staff has determined the increased local distribution costs will
require an additional average 3% rate increase in 2021 in order to remain consistent with Article
XII, Section 6, of the City Charter; and
WHEREAS, the Energy Board considered the proposed electric rates and methods of
application at its September 10, 2020 and October 8, 2020 regular meetings, and provided
recommendations of approval of proposed rate sets to City Council; and
WHEREAS, the City Council Finance Committee considered the proposed electric rates
and methods of application at its October 19, 2020 regular meeting, and provided
recommendations of approval of proposed rate sets to the full City Council; and
WHEREAS, the City Manager and staff have recommended to the City Council the
following electric rate adjustments and City Code rate language clarifications for all billings
issued with meter readings on or after January 1, 2021; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to revise the electric rates, fees and charges as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
-2-
Section 2. That Sections 26-464 (c) through (f), (p), and (r) of the Code of the City of
Fort Collins are hereby amended to read as follows:
Sec. 26-464. - Residential energy service, schedule R.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the
following charges applied to all energy consumption on or after January 1, 2020 2021.
Description Unit Component
Charge
Billed Charge
(including
PILOT)
a. Payment in lieu of taxes (PILOT) and franchise. A charge
based on all component charges pursuant to this Section
6 percent
b. Fixed Charge
Per
account
$7.55
$8.10
$8.00
$8.59
c. Distribution facilities charge (applied to energy
charges in d.1. and d.2. below)
Per kWh $0.0256
$0.0275
d. Wholesale Energy Charge (combined energy and demand costs)
1. Summer. For billings based on consumption during the months of May, June, July, August,
and September
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays) Per kWh $0.2183
$0.2201
$0.2585
$0.2624
(b) Off-Peak Per kWh $0.0414
$0.0404
$0.0710
$0.0719
2. Non-summer. For billings based on consumption during the months of January through April
and October through December.
(a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays) Per kWh $0.1815
$0.1840
$0.2195
$0.2242
(b) Off-Peak Per kWh $0.0414
$0.0404
$0.0710
$0.0719
e. Energy efficiency tier charge, per kilowatt hour
for total consumption over 700 kWh in a billing
month (regardless of on-peak or off-peak)
Per kWh
$0.0216
$0.0232
$0.0229
$0.0246
f. Income-qualified assistance discount. Discount applied to
effective monthly charges in "a.", "b.", "c." and “d.” for 23 percent
-3-
IQAP participating residential customers, as further described
in Section 26-724 of the Code.
(d) Medical assistance program.
. . .
(3) a. Durable Medical Equipment (DME). The discounted monthly rates for customers
with electrical durable medical equipment only shall be the sum of the following
charges, applied to all energy consumption on or after January 1, 2020 2021:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
1. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
2. Fixed Charge Per
account
$7.55
$8.10
$8.00
$8.59
3. Distribution facilities charge (applied to energy
charges in 4.a) and 4.b) below) Per kWh $0.0256
$0.0275
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July, August, and
September
(i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays) Per kWh $0.1528
$0.1541
$0.1891
$0.1924
(ii) Off-Peak Per kWh $0.0290
$0.0283
$0.0578
$0.0591
b) Non-summer. For billings based on consumption during the months of January through April
and October through December.
(i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays) Per kWh $0.1271
$0.1288
$0.1618
$0.1656
(ii) Off-Peak Per kWh $0.0290
$0.0283
$0.0578
$0.0591
5. Energy efficiency tier charge, per kilowatt hour
for total consumption over 700 kWh in a billing
month (regardless of on-peak or off-peak)
Per kWh
$0.0216
$0.0232
$0.0229
$0.0246
(4) a. Air Conditioning (A/C). The discounted monthly rates for customers with medical
needs requiring air conditioning only shall be the sum of the following charges, applied to all
energy consumption on or after January 1, 2020 2021:
-4-
Description Unit Component
Charge
Billed Charge
(including
PILOT)
1. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
2. Fixed Charge Per
account
$7.55
$8.10
$8.00
$8.59
3. Distribution facilities charge (applied to
energy charges in 4.a) and 4.b) below)
Per kWh $0.0256
$0.0275
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July, August,
and September
(i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per kWh 0.0414
$0.0404
$0.0710
$0.0719
(ii) Off-Peak Per kWh $0.0414
$0.0404
$0.0710
$0.0719
b) Non-summer. For billings based on consumption during the months of January through
April and October through December.
(i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per kWh $0.1815
$0.1840
$0.2195
$0.2242
(ii) Off-Peak Per kWh $0.0414
$0.0404
$0.0710
$0.0719
5. Energy efficiency tier charge, per kilowatt
hour for total consumption over 700 kWh in a
billing month (regardless of on-peak or off-peak)
Per kWh $0.0216
$0.0232
$0.0229
$0.0246
(5) a. Durable Medical Equipment (DME) & A/C. The discounted monthly rates for
customers with electrical durable medical equipment and medical needs requiring air
conditioning shall be the sum of the following charges, applied to all energy
consumption on or after January 1, 2020 2021:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
1. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section
6 percent
2. Fixed Charge Per
account
$7.55
$8.10
$8.00
$8.59
-5-
3. Distribution facilities charge (applied to
energy charges in 4.a) and 4.b) below)
Per kWh $0.0256
$0.0275
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July, August,
and September
(i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per kWh $0.0414
$0.0404
$0.0710
$0.0719
(ii) Off-Peak Per kWh $0.0290
$0.0283
$0.0578
$0.0591
b) Non-summer. For billings based on consumption during the months of January through
April and October through December.
(i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per kWh $0.1271
$0.1288
$0.1618
$0.1656
(ii) Off-Peak Per kWh $0.0290
$0.0283
$0.0578
$0.0591
5. Energy efficiency tier charge, per kilowatt
hour for total consumption over 700 kWh in a
billing month (regardless of on-peak or off-
peak)
Per kWh $0.0216
$0.0232
$0.0229
$0.0246
. . .
(e) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at the
premium per kilowatt hour set forth in this Subsection (e). The utility may establish and offer
voluntary programs designed to increase and enhance the use of energy generated by
renewable energy resources in support of Council-adopted policy applicable to the utility.
Unit Component
Charge
Billed
Charge
(including
PILOT)
Per kWh $0.0175
$0.015
$0.019
$0.016
(f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (f)
may be added to the above charges for service to intermittent loads in accordance with the
provisions of the Electric Service Standards.
Unit Component
Charge
Billed
Charge
-6-
(including
PILOT)
Per kW $2.32
$2.39
$2.46
$2.53
. . .
(p) Net metering.
. . .
(5) The customer-generator’s consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 2020 2021.
Description Unit Component
Credit Bill Credit
1. Distribution facilities credit (applied to credits in 2. and
3. below)
Per kWh $0.0217
2. Energy and demand credit - For billings based on generation during the months
of May, June, July, August and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2183
$0.2201
$0.2400
$0.2418
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0631
$0.0621
3. Energy and demand credit - For billings based on generation during the months
of January through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1815
$0.1840
$0.2032
$0.2057
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0631
$0.0621
. . .
-7-
(r) Net metering—Community solar projects.
. . .
(3) The customer's consumption of energy from the utility and interest in the production of
energy that flows into the utilities' distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The method used to measure
energy produced and issue credits under this Section shall be the same for subscriber-
owned facilities and dedicated program-managed facilities. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 2020 2021.
Description Unit Component
Credit Bill Credit
1. Distribution facilities credit (applied to credits in 2.
and 3. below)
Per kWh $0.0109
2. Energy and demand credit - For billings based on generation during the months of May,
June, July, August and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per kWh $0.2183
$0.2201
$0.2292
$0.2310
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0523
$0.0513
3. Energy and demand credit - For billings based on generation during the months of January
through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per kWh $0.1815
$0.1840
$0.1924
$0.1949
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0523
$0.0513
Section 4. That Sections 26-465 (c) through (f), (q), and (r) of the Code of the City of
Fort Collins are hereby amended to read as follows:
Sec. 26-465. - All-electric residential service, schedule RE.
. . .
(c) Monthly rate.
(1) The monthly rates for this schedule shall be the sum of the following charges, applied
to all energy consumption on or after January 1, 2020 2021.
Description Unit Component
Charge
Billed Charge
(including
PILOT)
-8-
a. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
b. Fixed Charge Per account $7.55
$8.10
$8.00$8.59
c. Distribution facilities charge (applied to
charges in d.1. and d.2. below)
Per kWh $0.0330
$0.0354
d. Energy and demand charge
1. Summer. For billings based on consumption during the months of May, June, July and
August, and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays) Per kWh $0.2183
$0.2201
$0.2664
$0.2708
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0789
$0.0804
2. Non-summer. For billings based on consumption during the months of January through April
and October through December.
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays) Per kWh $0.1815
$ 0.1840
$0.2274
$0.2326
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0789
$0.0804
e. Income-qualified assistance program ("IQAP") discount.
Discount applied to monthly charges in "b.", "c." and “d”
above for IQAP participating residential customers, as further
described in Section 26-724 of the Code
23 percent
(d) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at the
premium per kilowatt hour set forth in this Subsection (d). The utility may establish and o ffer
voluntary programs designed to increase and enhance the use of energy generated by renewable
energy resources in support of Council-adopted policy applicable to the utility.
Unit Component
Charge
Billed Charge
(including
PILOT)
Per kWh $0.0175
$0.015
$0.019
$0.016
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection
(e) may be added to the above charges for service to intermittent loads in accordance with
the provisions of the Electric Service Standards.
-9-
Unit Component
Charge
Billed Charge
(including
PILOT)
Per kW $2.32
$2.39
$2.46
$2.53
(f) Standby service charges. Standby service, if available, will be provided on an annual
contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Monthly standby distribution charge:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
Contracted standby service, this charge shall be
in lieu of the distribution facilities charge
Per kW $2.34
$2.41
$2.48
$2.55
For all metered kilowatts in excess of the
contracted amount
Per kW $7.00
$7.21
$7.42
$7.64
. . .
(q) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 2020 2021.
Description Unit Component
Credit
Bill
Credit
1. Distribution facilities credit (applied to credits in 2. and
3. below)
Per kWh $0.0279
2. Energy and demand credit - For billings based on generation during the months of May,
June, July, August and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2183
$0.2201
$0.2462
$0.2480
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0693
$0.0683
-10-
3. Energy and demand credit - For billings based on generation during the months of January
through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1815
$0.1840
$0.2094
$0.2119
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0693
$0.0683
(r) Net metering—community solar projects.
...
(3) The customer's consumption of energy from the utility and interest in the production of
energy that flows into the utilities' distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The method used to measure
energy produced and issue credits under this Section shall be the same for subscriber-
owned facilities and dedicated program-managed facilities. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 2020 2021.
Description Unit Component
Credit
Bill
Credit
1. Distribution facilities credit (applied to credits in 2. and
3. below)
Per kWh $0.0141
2. Energy and demand credit - For billings based on generation during the months of May,
June, July, August and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2183
$0.2201
$0.2324
$0.2342
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0555
$0.0545
3. Energy and demand credit - For billings based on generation during the months
of January through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1815
$0.1840
$0.1956
$0.1981
b) Off-Peak Per kWh $0.0414
$0.0404
$0.0555
$0.0545
. . .
Section 5. That Sections 26-466 (c), (d), (e), (q), and (r) of the Code of the City of
Fort Collins are hereby amended to read as follows:
-11-
Sec. 26-466. - General service, schedule GS.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this Section
6 percent
(2) Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $4.77
$5.25
$5.63
$5.56
b. Single-phase, above two-hundred-ampere
service
Per account $14.09
$15.50
$16.61
$16.43
c. Three-phase, two-hundred-ampere service Per account $7.27
$8.00
$8.58
$8.48
d. Three-phase, above two-hundred-ampere
service
Per account $17.24
$18.96
$20.32
$20.10
(3) Distribution facilities charge (added to
demand and energy charges below for “Billed
Charge” shown in (5))
Per kWh $0.0324
$0.0356
(4) Demand charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kWh $0.0314
$0.0330
b. Non-summer. For billings based on meter
readings in the months of January through May
and October through December
Per kWh $0.0192
$0.0200
c. The meter reading date shall generally
determine the summer season billing months;
however, no customer shall be billed more than
four (4) full billing cycles at the summer rate
(5) Energy charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
Per kWh $0.0414
$0.0404
$0.1115
$0.1156
-12-
and September
b. Non-summer. For billings based on meter
readings in the months of January through May
and October through December
Per kWh $0.0414
$0.0404
$0.0986
$0.1018
c. The meter reading date shall generally
determine the summer season billing months;
however, no customer shall be billed more than
four (4) full billing cycles at the summer rate
(d) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at the
premium per kilowatt hour set forth in this Subsection (d). The utility may establish and
offer voluntary programs designed to increase and enhance the use of energy generated by
renewable energy resources in support of Council-adopted policy applicable to the utility.
Unit Component Charge Billed Charge
(including PILOT)
Per kWh $0.0175$0.015 $0.019$0.016
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in accordance
with the provisions of the Electric Service Standards.
Unit Component Charge Billed Charge
(including PILOT)
Per kW $2.32$2.39 $2.46$2.53
. . .
(q) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Component Credit
a. Energy credit for billings based on generation
during the months of June, July, August, and
September
Per kWh $0.0414$0.0404
-13-
(r) Net metering—community solar projects.
. . .
(3) Both the customer's consumption of energy from the utility and interest in the
production of energy that flows into the utilities' distribution system shall be measured
on a monthly basis. The energy from Fort Collins Utilities consumed by the customer
shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this
Section. The energy produced by the customer's portion of the qualifying facility shall
be credited to the customer monthly as follows:
Description Unit Component
Credit
a. Energy and demand credit Per kWh $0.0414$0.0404
Section 6. That Sections 26-467 (c) through (f) and (r) of the Code of the City of Fort
Collins are hereby amended to read as follows:
Sec. 26-467. - General service 25, schedule GS25.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
1.Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this Section
6 percent
2. Fixed Charge
a. Single-phase, two-hundred-ampere service Per account $4.99
$5.54
$5.29
$5.87
b. Single-phase, above two-hundred-ampere
service Per account $14.71
$16.33
$15.60
$17.31
c. Three-phase, two-hundred-ampere service Per account $7.60
$8.44
$8.06
$8.94
d. Three-phase, above two-hundred-ampere service Per account $18.00
$19.98
$19.08
$21.18
3. Distribution facilities charge (applied to energy
charges in 5. below)
Per kWh $0.0257
$ 0.0286
4. Demand charge
-14-
a. Summer. For billings based on meter readings
in the months of June, July, August, and
September
Per kW $9.69
$10.20
$10.27
$10.81
b. Non-summer. For billings based on meter
readings in the months of January through May
and October through December
Per kW $5.53
$5.75
$5.86
$6.10
c. The meter reading date shall generally
determine the summer season billing months;
however, no customer shall be billed more than
four (4) full billing cycles at the summer rate
5. Energy charge
a. Summer. For billings based on meter readings
in the months of June, July, August, and
September
Per kWh $0.0414
$0.0404
$0.0711
$0.0731
b. Non-summer. For billings based on meter
readings in the months of January through May
and October through December
Per kWh $0.0414
$0.0404
$0.0711
$0.0731
(d) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at the
premium per kilowatt hour set forth in this Subsection (d). The utility may establish and
offer voluntary programs designed to increase and enhance the use of energy generated by
renewable energy resources in support of Council-adopted policy applicable to the utility.
Unit Component Charge Billed Charge
(including PILOT)
Per kWh $0.0175$0.015 $0.019$0.016
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection
(e) may be added to the above charges for service to intermittent loads in accordance with the
provisions of the Electric Service Standards.
Unit Component Charge Billed Charge
(including PILOT)
Per kW $2.32
$2.39
$2.46
$2.53
(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
-15-
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge shall be in
lieu of the distribution facilities charge
Per kW $4.25
$4.38
$4.51
$4.64
For all metered kilowatts in excess of the
contracted amount
Per kW $12.77
$13.15
$13.53
$13.94
. . .
(r) Net metering .
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill Credit
a. Energy credit for billings based on generation during the months of
June, July, August, and September
Per kWh $0.0414
$0.0404
Section 7. That Sections 26-468 (c) through (g), and (u) of the Code of the City of
Fort Collins are hereby amended to read as follows:
Sec. 26-468. - General service 50, schedule GS50.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
-16-
(2). Fixed Charge Per account $12.62
$14.64
$13.37
$15.52
(3) Coincident demand charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kW $13.68
$14.57
$14.50
$15.44
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kW $10.39
$11.56
$11.01
$12.25
c. The meter reading date shall generally determine
the summer season billing months; however, no
customer shall be billed more than four (4) full
billing cycles at the summer rate
(4) Distribution facilities charge Per kW $8.69
$10.08
$9.21
$10.69
(5) Energy charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kWh $0.0414
$0.0404
$0.0439
$0.0428
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kWh $0.0414
$0.0404
$0.0439
$0.0428
(d) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at the
premium per kilowatt hour set forth in this Subsection (d). The utility may establish and
offer voluntary programs designed to increase and enhance the use of energy generated by
renewable energy resources in support of Council-adopted policy applicable to the utility.
Unit Component
Charge
Billed Charge
(including
PILOT)
Per kWh $0.0175
$0.015
$0.019
$0.016
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Unit Component
Charge
Billed Charge
(including
PILOT)
Per kW $2.32$2.39 $2.46$2.53
-17-
(f) Standby service charges. Standby service, if available, will be provided on an annual contract
basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Standby distribution charge.
a. Monthly standby distribution charge shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge shall be in
lieu of the distribution facilities charge
Per kW $5.46$5.62 $5.79$5.96
For all metered kilowatts in excess of the
contracted amount
Per kW $15.92$16.40 $16.87$17.38
. . .
(g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit
capacity for the purpose of controlling the available electric capacity of a backup circuit
connection, this service, if available, will be provided on an annual contract basis at a level
at least sufficient to meet probable backup demand (in kilowatts) as determined by the
customer and approved by the utility according to the following:
(1) Monthly charge shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted backup capacity per month Per kW $1.11
$1.14
$1.18
$1.21
Metered kilowatts in excess of the contracted amount Per kW $3.36
$3.46
$3.56
$3.67
. . .
(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
-18-
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill Credit
a. Energy credit for billings based on generation during the months of
June, July, August and September
Per kWh $0.0414
$0.0404
Section 8. That Sections 26-469 (c) through (g) and (v) of the Code of the City of
Fort Collins are hereby amended to read as follows:
Sec. 26-469. - General service 750, schedule GS750.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
(2) Fixed Charge Per
account
$24.49
$28.75
$25.96
$30.48
a. Additional charge for each additional metering
point
Per
account
$14.94
$17.54
$15.83
$18.59
(3) Coincident demand charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kW $13.47
$13.55
$14.28
$14.36
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kW $10.23
$10.75
$10.84
$11.40
c. The meter reading date shall generally determine
the summer season billing months; however, no
customer shall be billed more than four (4) full
billing cycles at the summer rate
(4) Distribution facilities charge
a. First seven hundred fifty (750) kilowatts Per kW $9.44 $10.01
-19-
$11.08 $11.75
b. All additional kilowatts Per kW $5.58
$6.55
$5.91
$6.94
(5) Energy charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kWh $0.0407
$0.0398
$0.0431
$0.0422
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kWh $0.0407
$0.0398
$0.0431
$0.0422
(d) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at the
premium per kilowatt hour set forth in this Subsection (d). The utility may establish and offer
voluntary programs designed to increase and enhance the use of energy generated by
renewable energy resources in support of Council-adopted policy applicable to the utility.
Unit Component
Charge
Billed
Charge
(including
PILOT)
Per kWh $0.0175
$0.015
$0.019
$0.016
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Unit Component
Charge
Billed
Charge
(including
PILOT)
Per kW $2.32$2.39 $2.46$2.53
(f) Standby service charges. Standby service, if available, will be provided on an annual
contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Standby distribution charge.
a. Monthly standby distribution charges shall be paid in the following amounts
Description Unit Component Billed
-20-
Charge Charge
(including
PILOT)
Contracted standby service, this charge shall be in lieu
of the distribution facilities charge.
Per kW $3.77
$3.88
$4.00
$4.12
For all metered kilowatts in excess of the contracted
amount
Per kW $11.34
$11.68
$12.02
$12.38
. . .
(g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit
capacity for the purpose of controlling the available electric capacity of a backup circuit
connection, this service, if available, will be provided on an annual contract basis at a level at
least sufficient to meet probable backup demand (in kilowatts) as determined by the customer
and approved by the utility at the following rates:
(1) Monthly charge.
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted backup capacity per month Per kW $0.78$0.80 $0.82$0.85
Metered kilowatts in excess of the contracted amount Per kW $2.33$2.40 $2.47$2.54
. . .
(v) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy consumed from the utility by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill Credit
a. Energy credit for billings based on generation during the months
of June, July, August, and September
Per kWh $0.0407
$0.0398
Section 9. That Sections 26-470 (c), (d), (e), and (s) of the Code of the City of Fort
Collins are hereby amended to read as follows:
-21-
Sec. 26-470. - Substation service, schedule SS.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section.
6 percent
(2) Fixed Charge Per
account
$58.20
$70.42
$61.69
$74.65
(3) Coincident demand charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kW $13.27
$13.35
$14.07
$14.15
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kW $10.08
$10.59
$10.68
$11.23
c. The meter reading date shall generally determine
the summer season billing months; however, no
customer shall be billed more than four (4) full
billing cycles at the summer rate
(4) Distribution facilities charge Per kW $4.72
$5.71
$5.00
$6.05
(5) Energy charge
a. Summer. For billings based on meter readings in
the months of June, July, August, and September
Per kWh $0.0401
$0.0392
$0.0425
$0.0416
b. Non-summer. For billings based on meter
readings in the months of January through May and
October through December
Per kWh $0.0401
$0.0392
$0.0425
$0.0416
(d) Renewable resource. Renewable energy resources, including, but not limited to, energy
generated by the power of wind, may be offered on a voluntary basis to customers at a
premium per kilowatt hour. The utility may establish and offer voluntary programs designed
to increase and enhance the use of energy generated by renewable energy resources in
support of Council-adopted policy applicable to the utility.
-22-
Unit Component
Charge
Billed
Charge
(including
PILOT)
Per kWh $0.0175
$0.015
$0.019
$0.016
(e) Standby service charges. Standby service, if available, will be provided on an annual contract
basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility at the following rates:
(1) Standby distribution charge.
a. Monthly standby distribution charge:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge shall be in
lieu of the distribution facilities charge.
Per kW $2.81
$2.89
$2.98
$3.07
For all metered kilowatts in excess of the contracted
amount
Per kW $8.43
$8.68
$8.94
$9.20
. . .
(s) Net metering.
...
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy consumed from the utility by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill
Credit
a. Energy credit for billings based on generation during the months of
June, July, August, and September
Per
kWh
$0.0401
$0.0392
-23-
Section 10. That Section 26-471 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-471. - Special area floodlighting, schedule FL.
. . .
(b) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and
franchise) are as follows:
(1) Charge per lamp, mercury vapor:
Description Component
Charge
Billed Charge
(including
PILOT)
a. One hundred seventy-five (175) watt $18.67
$19.23
$19.79
$20.38
b. Two hundred fifty (250) watt $21.99
$22.65
$23.31
$24.01
c. Four hundred (400) watt $28.82
$29.68
$30.55
$31.47
(2) Charge per lamp, high-pressure sodium:
Description Component
Charge
Billed Charge
(including
PILOT)
a. Seventy (70) watt $7.89
$8.13
$8.36
$8.61
b. One hundred (100) watt $11.16
$11.49
$11.83
$12.18
c. One hundred fifty (150) watt $17.65
$18.18
$18.71
$19.27
d. Two hundred fifty (250) watt $22.50
$23.18
$23.85
$24.57
e. Four hundred (400) watt $29.73
$30.62
$31.51
$32.46
-24-
(3) Charge per lamp, LED:
Description Component
Charge
Billed Charge
(including
PILOT)
a. Fifty-four (54) watt (Cobra) $7.74
$7.97
$8.20
$8.45
b. Seventy-two (72) watt (Cobra) $9.00
$9.27
$9.54
$9.83
c. Eighty (80) watt (Cobra) $9.58 $10.16
d. Eighty-eight (88) watt (Cobra) $10.15 $10.76
e. Sixty-five (65) watt (Post Top) $12.47 $13.21
Section 11. That Section 26-472 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-472. - Traffic signal service, schedule T.
. . .
(c) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and
franchise) shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Fixed charge Per account $80.66
$83.08
$85.50
$88.06
(2) Energy charge Per kWh $0.0750
$0.0773
$0.0795
$0.0819
(3) Service extensions and signal installations
made by the utility shall be paid for by the City
General Fund, subject to material and
installation costs at the time of installation
Section 12. That the modifications set forth above shall be effective for all energy
consumption on or after January 1, 2021.
-25-
Introduced, considered favorably on first reading, and ordered published this 4th day of
October, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D.
2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 17th day of November, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
This Ordinance has been amended in red below.
ORDINANCE NO. 140, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF
FORT COLLINS TO REVISE WATER RATES, FEES, AND CHARGES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and
provide for the collection of such rates, fees or charges for utility services furnished by the City as
will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth
therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth herein
shall be used to defray the costs of providing such utility services as required by the Charter and
the City Code; and
WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a utility
service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-126 and 26-127 concern various water-related rates,
fees, and charges; and
WHEREAS, City Code Section 26-118 requires that the City Manager analyze the
operating and financial records of the utility during each calendar year and recommend to the City
Council user rates or adjustments to be in effect for the following year; and
WHEREAS, the City Manager and City staff have recommended to the City Council
adjustment of the water-related rates, fees, and charges as set forth herein to be effective January
1, 2021; and
WHEREAS, this Ordinance increases the subject water rates by 2% to address mitigation
and related costs associated with the Cameron Peak Fire; and
WHEREAS, the Water Board considered the proposed water-related rates, fees, and
charges adjustments for 2021 at its meeting on September 17, 2020, 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 26-126 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-126. - Schedule A, flat rates for unmetered construction water use.
For residential and nonresidential premises under construction with a planned meter size greater
than one (1) inch, no flat unmetered water service will be provided. For residential and
nonresidential premises under construction with a planned meter size of one (1) inch or less, the
following flat rates will apply per month until the permanent meter is set:
Category Component
Charge
Billed Charge
(with PILOT)
¾-inch construction service, flat charge per month $29.56
$30.15
$31.33
$31.96
1-inch construction service, flat charge per month $56.36
$57.49
$59.75
$60.94
Section 2. That Section 26-127 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-127. - Schedule B, meter rates.
(a) Residential rates.
(1) Residential customers with one (1) dwelling unit shall pay the sum of the following
changes:
Category Component
Charge
Billed
Charge (with
PILOT)
a. Base monthly charge for residential customers with one (1)
dwelling unit
$16.93
$17.27
$17.94
$18.30
b. Quantity monthly charge for residential customers with one
(1) dwelling unit (volumetric)
Tier 1 - For the first seven thousand (7,000) gallons used per
month, per one thousand (1,000) gallons
$2.621
$2.673
$2.779
$2.834
Tier 2 - For the next six thousand (6,000) gallons used per
month, per one thousand (1,000) gallons
$3.012
$3.072
$3.193
$3.257
Tier 3 - For all additional gallons used per month, per one
thousand (1,000) gallons
$3.465
$3.534
$3.673
$3.746
-3-
c. Income-qualified assistance discount. Discount applied to
monthly base and Tier 1 volumetric charges for IQAP
participating residential customers in properties with one (1)
dwelling unit, as further described in Section 26-724 of the
Code.
23 percent
(2) Residential customers with two (2) dwelling units shall pay the sum of the following
charges:
Category Component
Charge
Billed Charge
(with PILOT)
a. Base monthly charge for residential customers with two (2)
dwelling units
$17.88
$18.24
$18.95
$19.33
b. Quantity monthly charge for residential customers with
two (2) dwelling units (volumetric)
Tier 1 - For the first nine thousand (9,000) gallons used per
month, per one thousand (1,000) gallons
$2.271
$2.316
$2.407
$2.455
Tier 2 - For the next four thousand (4,000) gallons used per
month, per one thousand (1,000) gallons
$2.610
$2.662
$2.766
$2.822
Tier 3 - For all additional gallons used per month, per one
thousand (1,000) gallons
$3.003
$3.063
$3.183
$3.247
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:
Category Component
Charge
Billed Charge
(with PILOT)
a. Base monthly charge for residential customers with more
than two (2) dwelling units
First dwelling unit $12.86
$13.12
$13.64
$13.90
Second and each additional dwelling unit $4.28
$4.37
$4.53
$4.63
-4-
b. Quantity monthly charge for residential customers with
more than two (2) dwelling units (volumetric)
Winter - per one thousand (1,000) gallons used in the winter
season months of November through April
$1.870
$1.907
$1.982
$2.022
Summer - per one thousand (1,000) gallons used in the
summer season months of May through October
$2.337
$2.384
$2.477
$2.527
The meter reading date shall generally determine the seasonal
monthly quantity charge; however, no customer shall be
billed more than six (6) full billing cycles at the summer
quantity charge.
c. Income-qualified assistance discount. A discount applied
to the monthly base and volumetric charges above for IQAP
participating residential customers in properties with more
than two (2) dwelling units who hold water and wastewater
service accounts in their own names, subject to Section 26-
724 of the Code.
23 percent
(b) Nonresidential rates.
(1) Base charge. Nonresidential, except for special users as described in Subsection 26-
127(c) below, customers shall pay a base monthly charge based on meter size as
follows:
Meter Size (inches) Monthly Base
Charge
Billed Charge (with
PILOT)
¾ $15.06
$15.36
$15.97
$16.28
1 $42.02
$42.86
$44.54
$45.43
1½ $114.25
$116.54
$121.10
$123.53
2 $172.17
$175.61
$182.50
$186.15
3 $262.60
$267.85
$278.36
$283.92
4 $412.26
$420.51
$437.00
$445.74
6 $799.74
$815.73
$847.72
$864.68
-5-
8 $1,412.81
$1,441.07
$1,497.58
$1,527.53
(2) Quantity charges. Nonresidential customers shall pay monthly charges as follows:
Category Component
Charge
Billed Charge
(with PILOT)
Winter - per one thousand (1,000) gallons used in the winter
season months of November through April
$2.095
$2.137
$2.221
$2.265
Summer - per one thousand (1,000) gallons used in the
summer season months of May through October
$2.619
$2.671
$2.776
$2.832
The meter reading date shall generally determine the
seasonal monthly quantity charge; however, no customer
shall be billed more than six (6) full billing cycles at the
summer quantity charge.
(3) Charges for excess use. Nonresidential customers shall also pay monthly water use
charges in excess of the amounts specified in the following table:
Category Component
Charge
Billed Charge
(with PILOT)
Winter - per one thousand (1,000) gallons used in the winter
season months of November through April
$3.010
$3.070
$3.191
$3.254
Summer - per one thousand (1,000) gallons used in the
summer season months of May through October
$3.765
$3.840
$3.991
$4.071
The meter reading date shall generally determine the seasonal
monthly quantity charge; however, no customer shall be
billed more than six (6) full billing cycles at the summer
quantity charge.
. . .
(c) High volume industrial rates. High volume industrial rates apply to any customer with an
average daily demand in excess of two million (2,000,000) gallons per day. The specific rate
for any qualifying customer shall be based upon the applicable peaking factor for that customer
as follows:
Peaking Factor Monthly Charge per
Thousand Gallons
Billed Charge (with
PILOT)
-6-
1.00—1.09 $1.64
$1.67
$1.74
$1.77
1.10—1.19 $1.70
$1.73
$1.80
$1.84
1.20—1.29 $1.76
$1.80
$1.86
$1.90
1.30—1.39 $1.81
$1.85
$1.91
$1.96
1.40—1.49 $1.87
$1.91
$1.98
$2.02
1.50—1.59 $1.91
$1.95
$2.03
$2.07
1.60—1.69 $1.97
$2.01
$2.09
$2.13
1.70—1.79 $2.03
$2.07
$2.16
$2.19
1.80—1.89 $2.08
$2.12
$2.21
$2.25
1.90—1.99 $2.15
$2.19
$2.28
$2.32
> 2.00 $2.20
$2.24
$2.33
$2.38
. . .
Section 3. That the modifications set forth above shall be effective for meter readings
on or after January 1, 2021, and in the case of fees not based on meter readings, shall be effective
for all fees paid on or after January 1, 2021.
Introduced, considered favorably on first reading, and ordered published this 4th day of
November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D.
2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-8-
Passed and adopted on final reading on the 17th day of November, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk