HomeMy WebLinkAboutRICE HOMESTEAD ANNEXATION - 47-00 - CORRESPONDENCE - (10)Utilities
light & power • stormwater • wastewater • water
City of Fort Collins
November 14, 2000
Revised December 8, 2000
Shirley M. Slaton
2406 Kodiak Road
Fort Collins, CO 80525
Dear Ms. Slaton:
RE: Electric Service to the Proposed Rice Homestead Annexation
The City of Fort Collins Utilities has received a copy of the proposed Prospect Rice Homestead
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.
There is no charge to you for the construction of facilities required to transfer the electric
service of existing customers.
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 the 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 and will help mitigate the impact of 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,
Ellen Switzer,
Finance and Budget Manager
cc: Steve Olt, Current Planning Dept.
700 Wood St. • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6700 • FAX (970) 221-6619 • FAX (970) 221-6593 • TDD (970) 224-6003
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