HomeMy WebLinkAboutHARMONY FARM SECOND ANNEXATION & ZONING - 1-04 - CORRESPONDENCE - CITY STAFF (3)Troy Jones - Re: upon annexation r Page 2;
PVREA. Do you know?
Troy Jones
Current Planning
Troy Jones - Re: upon annexation Page 1
From: Troy Jones
To: Ellen Switzer
Subject: Re: upon annexation
Thank you for the clarification.
>>> Ellen Switzer 07/23/03 04:20PM >>>
Troy --- It's a 25% adder to the electric rates which equates to a 25% adder per kWh.
If they are paying 7.51 cents/kWh to PVREA, the City's charges would be about $7.68/ kWh including the
25% adder. To complicate matters, they will also be paying city sales tax on the electric bill which they
don't pay to PVREA in the County.
Ellen
>>> Troy Jones 07/23/03 02:OOPM >>>
Is this an additional 25% per KWH?
>>> Ellen Switzer 07/21/03 05:01 PM >>>
State Law requires the 25% Service Rights Fee for any customer annexed from REA service territory
regardless of the reason for the annexation.
>>> Troy Jones 07/21/03 04:59PM >>>
Does it matter whether or not the customer is being annexed against his will as to whether or not he has to
pay an additional 25% for 10 years?
Troy
>>> Ellen Switzer 07/21/03 03:28PM >>>
Hi Troy,
The cost per kWh will vary based on level of use. If you could have the customer send me his usage
data, I can do an exact comparison.
On average, Fort Collins residential customers pay 6.146 cents per kWh. Applying PVREA's rates to the
city's customer base, the PVREA residential charge is about $7.509 cents per kWh. (Both calculations are
2003 rates.)
As you know the REA customers who are annexed will pay an additional 25% for 10 years. This would
increase the Fort Collins cost from 6.146 cents to about 7.683 cents per kWh. The extra 25% will
terminate after 10 years.
At this time we are projecting rate increases of 5.3% for 2004 and 3.5% for 2005. 1 do not know if any
increases are planned by PVREA.
Again, the numbers listed are averages. I can do a better comparison for the customer with his/her usage
data.
Hope this helps, Ellen
>>> Troy Jones 07/17/03 08:11 AM >>>
Ellen,
I spoke with a property owner who is in an enclave that will eventually be annexed. They are currently
being served by PVREA for their power. Perhaps you can help me answer their question. They wanted to
know how the cost per Kilowatt Hour will differ once they are annexed from what they've been paying with