HomeMy WebLinkAbout1974-009-02/07/1974-DIRECTING A STUDY BE MADE OF ELECTRIC UTILITY RATES BY THE CITY LIGHT AND POWER DEPARTMENT t
RESOLUTION 74-9
OF THE COUNCIL OF THE CITY OF FORT COLLINS
DIRECTING A STUDY BE MADE OF ELECTRIC UTILITY
RATES BY THE CITY LIGHT AND POWER DEPARTMENT
WHEREAS, the Board of Directors for the Platte River Power
Authority, which furnishes power to the Light and Power Department of
the City of Fort Collins, has adopted a resolution making effective new
revised rates for power, and
WHEREAS, the City of Fort Collins was notified of these revised
rates on December 20, 1973, and the rates are to be effective for the
monthly billing period ending on or about January 24, 1974, and
WHEREAS, the Platte River Power Authority anticipates annual
rate increases resulting from increased cost of power from the United
States Bureau of Reclamation and debt service requirements of the proposed
Yampa Project and associated transmission facilities, and
WHEREAS, it is apparent that it will be necessary to revise
the rates for customers of the Fort Collins Light and Power Department
in order to meet the increased expenses which will be incurred by the
City utility, and
WHEREAS, the City Council desires to set forth certain policies
of the City Council and requirements of the City Charter and ordinances
relating to the establishment of rates for the City electric utility
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS
Section 1 The Light and Power Department is hereby directed
to undertake a rate study for the City electric utility and to make recom-
mendations to the City Council regarding the rates to be charged for
service from said utility
Sectior 2 The rate and finance policy for the City of Fort
Collins �3_ght and Power Department shall be as follows
A Fundamental Purpose The fundamental purpose of the
Fort Collins Light and Power Department shall be
1 To supply electric energy in adequate amounts,
reliably, economically, in an environmentally acceptable fashion, and with
due regard to conservation of natural resources
2 To provide ever higher standards of electric service,
utilizing progressive management techniques and business principles, to
construct, operate and maintain the Fort Collins energy supply system for
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the benefit of the consumer and the community
B Rates Electric rates will be based upon the cost of
service approach to reflect full distribution of costs to appropriate rate
classes in order to effect proper sharing of costs Rates will be estab- j
lisped and maintained at a level sufficient
1 Tc pay the full cost of operation and mairtenance
of the electric utility in good repair and working order
2 To pay the principal and interest on all bonds of
the City due and payable from electric revenue
3 To provide and maintain an adequate working capital
for the day to day business operations
4 To provide and maintain a depreciation and capital
improvement fund for the replacement of depreciated and obsolete property
and for the extension, improvement, enlargement, and betterment of the
electric utility The depreciation and capital improvement fund will be
maintained at a minimum level equal to the annual average of the approved
five-year capital improvement program
5 To pay into the general fund of the City of Fort
Collins in lieu of taxes and franchise permits 7-1/20 of revenues from the
sale of electric energy and an additional to into the general fund as payment
for City services, including, but not limited to, administrative, legal,
personnel, safety, purchasing and financial functions Payments will be
made monthly on the basis of actual revenues from the preceding month The
department will submit to the Council at budget time an estimate of the
amount of taxes and franchise fees that would be chargeable against the
Light and Power Department if the utility were privately owned
C Revenues All net operating revenues of the Light and
Power Department shall be paid into the Light and Power Depreciation and
Capital Improvement Fund and such funds shall be expended only for renewals,
replacements, extraordinary repairs, extensions, improvements, enlargements
and betterments of the electric utility
D Operating Records
1 The Light and Power Department will maintain all
records in accordance with the Federal Power Commission Uniform System of
Accounts prescribed for public utilities
2 The accounts of the Light and Power Department shall
be kept separate and distinct from all other accounts of the City and shall
contain proportionate charges for all services performed by other departments
as well as proportionate credits for all services rendered to other depart-
ments
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Passed and adopted at a regular meeting of the City Council
held this 7th day of February, A D 1974
ATTEST Mayor
City clerk
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