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Home My WebLink AboutRIDGE ANNEXATION & ZONING - 1-89, A - CORRESPONDENCE - RESPONSE TO CITIZEN (4)February 15, 1989 Dear Property Owner, The purpose of this letter is to clarify the Electric Service Information sent from the City of Fort Collins to property owners of the pending Ridge Annexation. The information in this letter was provided to the Planning Department by the City's Light and Power Utility Service. All information provided by the City to property owners is accurate and correct; however, the letter sent to property owners from Mr. Carey of the Poudre Valley REA 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 residents using 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 savings. As noted in the City's rate comparisons, the kW demands used to calculate the billings are the average demands experienced by the City's demand rate customers 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 substan- tially 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. The City was 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. (The City has continued to utilize the demand rate for comparison purposes.) 300 LaPorte Avenue - P.O. Box 580 - Fort Collins, CO 80522-0580 - (303) 221-6750 3. REFERENCE: Future City Rates. No electric rate increases are projected in the City's 1989 - 1993 long range electric utility plan. In conclusion, the Electric Service Information sheet sent by the City to property owners of the pending Ridge Annexation was an accurate reflection of the City's available rates and current PVREA rates. Customers who have or acquire demand controllers would see greater savings. It was clearly stated in the information provided to property owners that sales taxes are not included. If you have further questions concerning the annexation or information provided, please feel free to contact me. Sincerely, Kenneth G. Waido Chief Planner -2- RESIDENTIAL ELECTRIC RATE COMPARISON 1/ IF ANNEXED BEFORE APRIL 22, 1989 FOR CONSUMERS ANNEXED BEFORE 4/22/89 (AND AFTER 10 YEARS OF SERVICE BY CITY) - CITY OF FT COLLINIS POUDRE VALLEY SAVINGS KWH/MO KW J '89 RATES 21 REA 4/89 WITH CITY 200 NA S13.97 $17.60 $3.63 400 NA S25.31 S29.20 $3.89 600 NA S36.65 S40.50 $3.85 800 NA S48.00 S51.50 $3.50 1000 - - - - - 9.1 - - - - S54.70 S62.20 $7.50 1200 - - - - - - 9.8 - - - - - - - - - - - - - - - - S60.62 - - - - - - - - - 572.60 - - - - - - - $11.98 1400 - - 10.3 - - - - - - - - - - - - - $65.76 - - - - - - - - - $83.00 - - - - - - - $17.24 1600 10.7 $70.51 $93.40 $22.89 1800 11.4 $76.43 $103.80 $27.37 2000 11.6 $80.41 $114.20 $33.79 2500 13.0 S93.84 $140.20 $46.36 3000 13.0 S101.84 $166.20 S64.36 3500 13.3 $111.01 $192.20 S81.19 4000 15.9 S129.10 $218.20 $89.10 5000 16.7 S148.21 $270.20 $121.99 6000 17.3 $166.55 $322.20 $155.65 J Sales taxes, where applicable, are not included in the calculations. J The City offers customers a choice of residential rates. The amounts shown are from the most economic rate for the average consumer. Assumes Energy Rate to 800 kWh then based on Demand Rate for 1000 - 6000 kWh. These figures are based on the average demand readings of all City customers on demand rate during 1987 - your actual demand and corresponding costs may be higher or lower. RESIDENTIAL ELECTRIC -RATE COMPARISON 1/ IF ANNEXED -AFTER APRIL 22, 1989 SAVINGS CITY OF FT COLLINS POUDRE VALLEY (ADDITIONAL COST) K%HIMO KW '89 RATES 21 3/ REA 4/89 WITH CITY 200 NA S17.46 S17.60 $0.14 400 NA S31.64 529.20 (S2.44) 600 NA S45.82 S40.50 (S5.32) 800 NA 560.00 551.50 (S8.50) 1000 - - - - - 9.1 - - - - 568.38 - - - - - S62.20 (S6.18) 1200 9.8 - - - - - - - S75.77 - - - - - - - - S72.60 - - - - - - - (53.17) - - - - - 1400 - - - - 10.3 - - - - - - - - - - - - S82.20 - - - - - - - - 583.00 - - - - - - - $0.80 1600 10.7 - S88.14 S93.40 S5.26 1800 11.4 S95.54 5103.80 S8.26 2000 11.6 S100.51 S114.20 $13.69 2500 13.0 S117.30 S140.20 $22.90 3000 13.0 S127.31 $166.20 $38.89 3500 13.3 S138.76 S192.20 $53.44 4000 15.9 5161.38 S218.20 S56.82 5000 16.7 S185.26 $270.20 $84.94 6000 17.3 S208.18 5322.20 S114.02 1/ Sales taxes, where applicable, are not included in the calculations. J Includes 25% Service Rights payment to PVREA which ends 10 years after purchase of PVREA facilities by tha City Light and Power Utility. 3/ The City offers customers a choice of residential rates. The amounts shown are from the most economic rate for the average consumer. Assumes Energy Rate to 800 kWh then based on Demand Rate for 1000 - 6000 kWh. 4/ These figures are based on the average demand readings of all City customers on the demand rate during 1987 - your actual demand and corresponding costs may be higher or lower.