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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