HomeMy WebLinkAboutRIDGE ANNEXATION & ZONING - 1-89, A - CORRESPONDENCE - CITY STAFFUtility Si
Light and
Citv of Fort Collins
DT: February 13, 1989
M E M O R A N D U M
TO: Tom Peterson, Planning Director
FM: Ellen Alward, Administrative Services Manager L�~
RE: Clarification concerning information sent to Ridge property owners
All information provided by the City to Ridge residents is accurate and cor-
rect; however, the letter Poudre Valley REA sent to Ridge property owners
requires clarification in several areas.
1. REFERENCE: Mr. Carey's statement that the Residential Service Rate
should be applied to customers without demand controllers.
It was entirely appropriate for the City to use the residential demand
rate for comparison purposes. The City's demand rate is recommended for
most electric heat customers and other residences using in excess of 900
kWh per month. PVREA's letter implies that in order to benefit from the
demand rate, a customer would have to purchase a load demand controller.
This is not the case. The City has about 5,000 residential demand customers
but only about 200 of the customers have demand controllers. Most large
residential customers choose the demand rate and achieve considerable sav-
ings.
As noted in the City's rate comparisons, the kW demands used to calculate
the billings are the average demands experienced by our demand rate custom-
ers at the given kWh consumption levels. An individual customer may
have higher or lower monthly demands than the average for their kWh con-
sumption level. Customers with demand controllers would experience
substantially higher savings (about 25 percent) than the average customer
indicated in the tables.
2. REFERENCE: PVREA April 1, 1989 rate reduction.
The rate comparisons provided by the City were based on current PVREA
rate schedules. We were not aware that a PVREA rate reduction had been
approved for April, 1989. The PVREA letter calculated their costs based on
this decrease. Thus, there was a $1.45 discrepancy in PVREA's charges
at 1200 kWh. A revised comparison is attached using PVREA's future
rates. (We have continued to utilize the demand rate for comparison pur-
poses.)
•
Tom Peterson
February 13, 1989
Page 2
3. REFERENCE: Future City rates.
No electric rate increases are projected in the 1989 - 1993 long range plan.
In conclusion, the Electric Service Information sheet sent by the City to
Ridge property owners was an accurate reflection of the City's available
rates and current PVREA rates. Customers who have or acquire demand con-
trollers would see greater savings. It is clearly stated that sales taxes
are not included.
Please call me if you would like additional information.
/jl
cc: Robert A. Kost
Rich Shannon
Ken Waido