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HomeMy WebLinkAboutWYKOFF-LARIMER ANNEXATION & ZONING - 57-98 - CORRESPONDENCE - CITY STAFFUtilities light & power • stormwater • wastewater • water City of Fort Collins November 18, 1998 Bret Larimer 1600 W. Horsetooth Rd. Fort Collins CO 80526 Dear Mr. Latimer: RE: Electric Service to the Proposed Wykoff-Larimer Annexation The City of Fort Collins Utilities has received a copy of the proposed Wykoff-Larimer Annexation from the City's Current Planning Department. Poudre Valley Rural Electric Association (PVREA) currently provides electric service to this area. The City of Fort Collins Utilities will assume responsibility for providing the electric service following annexation. In most cases, the transfer of electric service territory will take place within one year of annexation. To compensate PVREA for the loss of territory, Colorado State law requires a payment of service rights fees to PVREA. The fee is equal to 25% of the City's revenue for electric service for all customers within the annexation at the time the territory is transferred to Fort Collins Utilities. A 5% service rights fee is applicable to new customers added within the annexation boundaries after the transfer of service territory. All service rights fees terminate ten years after the electric customers and facilities are transferred to the City. It is important you know that service rights fees will apply to this annexation because the fees are collected from annexed customers through the City's electric rates. However, the City's electric rates are among the lowest in the State. The City's rates will thus help mitigate the impact if the service rights fee. If you would like additional information on the cost of electric service following annexation, please call me at 221-6714. Sincerely, ,A CQ1- Ellen Alward Finance and Budget Manager cc: Mike Ludwig, Current Planning Dept. 700 Wood Street • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6700 • FAX (970) 221-6619 • TDD (970) 224-6003 e-mail: utilities(�l-ci.fort-collins.co.us