HomeMy WebLinkAboutRes2011-081 Sponsored by: Administration
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AMENDING THE ELECTRIC RATES AND
CHARGES TARIFF TO INCLUDE AUTOMATIC ANNUAL
ADJUSTMENTS TO ALL RATES AND FEES BY A CUMULATIVE
AMOUNT OF TEN PERCENT IN 2012 AND FIVE PERCENT IN 2013
WHEREAS, the Seward City Council conducted extensive public rate review work sessions
for the purpose of addressing critical infrastructure and operational needs of the Electric Utility; and
WHEREAS, the Council finds that it is in the financial interests of the Electric Utility to
pass along future Chugach rate adjustments to our customers when approved by the RCA; and
heretofore authorizes those rate adjustments to be made automatically at the time the City's rate
adjustment becomes effective; and
WHEREAS, the Council seeks to incrementally increase rates to customers in order to
address the growing infrastructure and operational needs of the electric utility, while avoiding single-
, year larger rate increases; and
inn.
WHEREAS, to that end, Council approves changes to the Electric Tariff as attached hereto
in "Electric Rates & Charges 2012 ", effective January 1, 2012, to include a 10% rate increase to all
rate classes and all fees; and
WHEREAS, the Council further approves changes to the Electric Tariff as attached hereto
in "Electric Rates & Charges 2013" to be effective January 1, 2013, to include a 5% rate increase to
all rate classes all fees.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. Effective January 1, 2012, the Seward City Council hereby approves the adjusted
Electric Tariff rates and charges as attached hereto as "Electric Rates & Charges — 2012 ".
Section 2. Effective January 1, 2013, the Seward City Council hereby approves the adjusted
Electric Tariff rates and charges as attached hereto as "Electric Rates & Charges — 2013 ".
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -081
Section 3. Effective January 1, 2012 the Seward City Council hereby approves the adjusted
language, which previously read "Meter Testing, per Test, When previous test occurred within the
last 24 months" to read "Meter Testing, per Test, When results determine meter is accurate ".
Section 4. This resolution is effective immediately upon passage.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 24th day of
October, 2011.
THE CITY OF SEWARD, LASKA
David Seaw -fayor
AYES: Valdatta, Bardarson, Keil, Terry
NOES: Casagranda, Shafer, Seaward
ABSENT: None
ABSTAIN: None
i
J
ATTEST:
J o hanna Kinney, CMC
ity Clerk
(City Seal)
s �I
e GA G s •
•
of 1 , Zs
Council Agenda Statement
Meeting Date: October 24, 2011 4 of SFt
From: John Foutz, Manager Electric Utility
'
Agenda Item: Amending Electric Rates and Charges
BACKGROUND & JUSTIFICATION:
The City of Seward's Electric rates must be increased for a number of important reasons. First,
the Electric Enterprise fund does not have the financial capacity to initiate a replacement plan for
critically aged infrastructure, effectively maintain essential equipment, and fund emergency
situations. The City has absorbed many of the rate increases from their generation supplier,
Chugach Electric Association (CEA). Funds have been transferred from the Electric Fund to
other City Funds, adversely impacting reserves. The costs to replace materials needed to repair
essential power lines have dramatically increased, but failure to increase rates to customers for
replacement of these items has not kept pace with increased costs.
While the electric department has kept the City's electrical distribution system functioning, it has
not been able to keep pace with important maintenance and replacement items. As a result, the
electric department has been unable to continue essential maintenance and upkeep of equipment
vital to the safety and well -being of the community of Seward.
After five extensive public work sessions aimed at reviewing capital infrastructure needs of the
City's enterprise funds, it has been determined that electric rates will be increased effective
January 1, 2012 by ten percent. In addition, rates will increase an additional five percent
effective January 1, 2013. These rates will not allow the City to replace all critical and high -risk
infrastructure items, but reflect incremental increases aimed at balancing the need for additional
revenue requirements, while minimizing the financial impact on the utility's customers.
This proposed tariff does not include a fee for the purpose of recovering costs associated with
individuals who elect to turn off power seasonally. However, if the City Council desires to
amend the tariff at this time to recover the lost revenue associated with the monthly
infrastructure fee, we would propose the following amendment:
Add a service as follows: "Reconnection to approved existing meter installation based on
seasonal shut -off' (defined as shut -off for a period exceeding one month for seasonal purposes).
Zone I = $127.33; Zone II = $159.16; Zone III = $191.00. The basis for this recommendation is
to charge the customer the approximate monthly infrastructure fee multiplied by seven months.
This methodology follows that used in the water tariff to address the adverse impact of seasonal
turn -offs to that utility.
During the previous budget session the Seward City Council chose to implement step rate
increases instead of the one time increase of twenty -six percent. The revised tariffs for 2012 and
2013 are attached.
0 ,
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City
Council Rules of Procedures.
Other:
FISCAL NOTE:
The 10% rate increase in m2012 is expected to generate approximately $1.1 million in additional
revenues. The 5% rate increase in 2013 is expected to generate an additional $500,000 in
revenue. Those added revenues are crucial to the ability of the Electric Fund to cover the cost of
some of its critical capital needs.
Approved by Finance Department:
RECOMMENDATION:
tAt
Seward City Council approve Resolution 2011- amending the Electrical Rates and Charges
tariffs for 2012 and 2013.
City of Seward
Electric Rates & Charges 2012
Rates for Electrical Power by Class of Service
Monthly Operations
Class of Service Energy Charge Demand Charge
& Infrastructure
Residential $0.10891/kWh N/A $18.19
Small General Service
$0.12551 N/A $36.39
(Less than 25 kW)
$0.08987
st
/kWh (1 200
Large General Service $15.76 $36.39
kWh/kW)
/kW*
$0.05368(Additional
kWh’s)
$8.18 (175 watts)
Yard Lights N/A N/A $12.13 (250 watts)
$36.39
Street Lights $0.14806 N/A
* Demand Charges
will be based on the maximum demand recorded over a
15-minute period.
These rates are based, in part, on the cost of energy and demand from
Chugach Electric Association (CEA) and will change when there is an
adjustment to CEA rates charged to the City of Seward.
st
Effective January 1, 2012 and each January 1 thereafter, rates will be
adjusted based on a five-year average of the cost of living as stated in the
consumer price index, all items, 1982-84 =100 for urban wage earners and
clerical workers, Anchorage, Alaska area, as published by the U.S.
City of Seward Electric Tariff
January 1, 2012 per Seward City Council Approval
NOTE:
Department of Labor, Bureau of Labor Statistics. ( 1/1/2012 will
utilize CPI Data from 2005-2009).
A Small General Service customer may elect to be billed under the large
General Service schedule; however, the election to change the billing rate
from one customer group to another may not be made more often than once
every 12 months.
Definitions And Miscellaneous Charges
CEA Fuel Adjustment:
1. The fuel adjustment charge from Chugach Electric
Association directly distributed to Seward Electric Utility customers
prorated according to the number of kWh the customers consumed during
the billing period.
Seward Fuel Adjustment:
2. The cost of operating the standby generation
plant, including fuel, labor, maintenance and repair when it exceeds the
amount budgeted to date for the fiscal year. The cost will be prorated
according to the number of kWh the customer consumed during the billing
Period.
Special Contracts:
3. Special contracts may be negotiated by the Utilities
Manager with customers that have a demand in excess of 750 kW or that
have unique power requirements that cannot be reasonably addressed by the
large general service tariff. Special contracts may include, but are not
limited to, provisions for instantaneous demand charges, time of service,
interruptible power, minimum and maximum demand, adjustment of
demand level, ownership and payment of new distribution facilities,
termination charges and power factor. Special contracts must be approved
by the City Council.
VAR Change(Power Factor Adjustment):
4. All schedules requiring
demand metering will be subject to the following power factor adjustment
provisions:
A: Demand-metered customer should attempt to maintain a unity
power factor. If the power factor falls below ninety percent lagging,
the customer will take corrective steps to return the power factor to
ninety percent or higher. Also, the following charge for billed
kilowatts will apply:
Monthly Billing Demand = Maximum Demand x 90%
City of Seward Electric Tariff
January 1, 2012 per Seward City Council Approval
Actual Power Factor
B: All power factor adjustment equipment installed by the
customer must be approved by the city. Power factor can be
determined by permanently installed monitoring equipment or by
periodic testing at reasonable intervals, at the discretion of the City.
Standby Generation:
5. the cost of operating the standby generation plant to
meet a specific customer’s need will be charged directly to that customer.
Such cost will be the total cost of operating the plant, including fuel, labor,
overtime, maintenance, repair and overhead, less the value of energy
generated in excess of customer’s need.
Other Miscellaneous Fees and Charges:
6. Fees and charges for existing
facilities follow on Page 4. Engineering service fees and charges for new
facilities follow on Page 5. Fees on Pages 4 and 5 are listed according to
service zones as follows:
ZONE I
Inside City Limits (excluding the Small Boat Harbor).
ZONE II
City limits to mile 12, Seward Highway, and all roads
connecting to the highway within this area.
ZONE III
Mile 12 to Lawing.
APUC Regulatory Cost Charge:
7. A special surcharge of $0.000626/kWh
imposed on electrical utilities by the Regulatory Commission of Alaska
(RCA) in response to the state’s intent to assess user fees to support
activities of the RCA and departments. This charge was recommended by
the RCA as a pass through charge to retail utilities customers.
City of Seward Electric Tariff
January 1, 2012 per Seward City Council Approval
Service Zone I Zone II Zone III
Meter Testing, per Test, When results
$60.64 $84.90 $109.15
determined meter is accurate
Reconnection to approved existing meter
$24.26 $30.32 $36.39
installation
Reconnection to approved existing meter
$169.79 $206.17 $242.55
installation outside regular business hours
New connection fee $181.92 $181.92 $181.92
$110.00 $110.00 $110.00
Minimum Deposit - Residential Account
Minimum Deposit - Commercial or $220.00 $220.00 $220.00
Industrial Account
Deposit - Interruptible, Off-Peak Account:
$220.00 $220.00 $220.00
The larger of twice the estimated monthly
OR
bill
Tampering with or unauthorized breaking
$606.38 $606.38 $606.38
of meter seal
Per Annum interest on delinquent account 10.50% 10.50% 10.50%
Door Hanger Fee $28.75 $28.75 $28.75
Monthly late fee on delinquent account $5.75 $5.75 $5.75
Dishonored check fee $40.50 $40.50 $40.50
City of Seward Electric Tariff
January 1, 2012 per Seward City Council Approval
Reconnection during regular business hours
following disconnection of delinquent $48.51 $60.64 $72.77
account
Reconnection outside regular business
hours following disconnection of $169.79 $206.17 $242.55
delinquent account
City of Seward Electric Tariff
January 1, 2012 per Seward City Council Approval
Service Zone I Zone II Zone III
Temporary secondary service $60.64 $72.77 $84.90
Primary Overhead Extensions (Residence) $60.64 $72.77 $84.90
Primary Underground Extensions
$60.64 $72.77 $84.90
(Residence)
Secondary service $60.64 $72.77 $84.90
Primary Overhead extensions (Subdivision,
$121.28 $145.53 $169.79
Mobile Home Park, Multi-Residence)
Primary Overhead Extensions (Commercial
$242.55 $291.06 $315.32
& Industrial)
Primary Underground Extensions
$242.55 $291.06 $315.32
(Commercial & Industrial)
Modifications of Existing Facilities $121.28 $145.53 $169.79
Street Lighting Systems and Yard Lights $60.64 $72.77 $84.90
NOTE:
The Zone Fee or Charge is non-refundable until the service is connected.
If the service is constructed and connected, the charge will be adjusted to
the actual coast of engineering services.
See Page 2-3 for description of Zones I, II and III.
City of Seward Electric Tariff
January 1, 2012 per Seward City Council Approval
City of Seward
Electric Rates & Charges 2013
Rates for Electrical Power by Class of Service
Monthly Operations
Class of Service Energy Charge Demand Charge
& Infrastructure
Residential $0.11436/kWh N/A $19.10
Small General Service
$0.13179 N/A $38.21
(Less than 25 kW)
$0.094364
st
/kWh (1 200
Large General Service $16.55 $38.21
kWh/kW)
/kW*
$0.05636(Additional
kWh’s)
$8.59 (175 watts)
Yard Lights N/A N/A $12.74 (250 watts)
$38.21
Street Lights $0.15546 N/A
* Demand Charges
will be based on the maximum demand recorded over a
15-minute period.
These rates are based, in part, on the cost of energy and demand from
Chugach Electric Association (CEA) and will change when there is an
adjustment to CEA rates charged to the City of Seward.
st
Effective January 1, 2012 and each January 1 thereafter, rates will be
adjusted based on a five-year average of the cost of living as stated in the
consumer price index, all items, 1982-84 =100 for urban wage earners and
clerical workers, Anchorage, Alaska area, as published by the U.S.
City of Seward Electric Tariff
January 1, 2013 per Seward City Council Approval
NOTE:
Department of Labor, Bureau of Labor Statistics. ( 1/1/2012 will
utilize CPI Data from 2005-2009).
A Small General Service customer may elect to be billed under the large
General Service schedule; however, the election to change the billing rate
from one customer group to another may not be made more often than once
every 12 months.
Definitions And Miscellaneous Charges
CEA Fuel Adjustment:
1. The fuel adjustment charge from Chugach Electric
Association directly distributed to Seward Electric Utility customers
prorated according to the number of kWh the customers consumed during
the billing period.
Seward Fuel Adjustment:
2. The cost of operating the standby generation
plant, including fuel, labor, maintenance and repair when it exceeds the
amount budgeted to date for the fiscal year. The cost will be prorated
according to the number of kWh the customer consumed during the billing
Period.
Special Contracts:
3. Special contracts may be negotiated by the Utilities
Manager with customers that have a demand in excess of 750 kW or that
have unique power requirements that cannot be reasonably addressed by the
large general service tariff. Special contracts may include, but are not
limited to, provisions for instantaneous demand charges, time of service,
interruptible power, minimum and maximum demand, adjustment of
demand level, ownership and payment of new distribution facilities,
termination charges and power factor. Special contracts must be approved
by the City Council.
VAR Change(Power Factor Adjustment):
4. All schedules requiring
demand metering will be subject to the following power factor adjustment
provisions:
A: Demand-metered customer should attempt to maintain a unity
power factor. If the power factor falls below ninety percent lagging,
the customer will take corrective steps to return the power factor to
ninety percent or higher. Also, the following charge for billed
kilowatts will apply:
Monthly Billing Demand = Maximum Demand x 90%
City of Seward Electric Tariff
January 1, 2013 per Seward City Council Approval
Actual Power Factor
B: All power factor adjustment equipment installed by the
customer must be approved by the city. Power factor can be
determined by permanently installed monitoring equipment or by
periodic testing at reasonable intervals, at the discretion of the City.
Standby Generation:
5. the cost of operating the standby generation plant to
meet a specific customer’s need will be charged directly to that customer.
Such cost will be the total cost of operating the plant, including fuel, labor,
overtime, maintenance, repair and overhead, less the value of energy
generated in excess of customer’s need.
Other Miscellaneous Fees and Charges:
6. Fees and charges for existing
facilities follow on Page 4. Engineering service fees and charges for new
facilities follow on Page 5. Fees on Pages 4 and 5 are listed according to
service zones as follows:
ZONE I
Inside City Limits (excluding the Small Boat Harbor).
ZONE II
City limits to mile 12, Seward Highway, and all roads
connecting to the highway within this area.
ZONE III
Mile 12 to Lawing.
APUC Regulatory Cost Charge:
7. A special surcharge of $0.000626/kWh
imposed on electrical utilities by the Regulatory Commission of Alaska
(RCA) in response to the state’s intent to assess user fees to support
activities of the RCA and departments. This charge was recommended by
the RCA as a pass through charge to retail utilities customers.
City of Seward Electric Tariff
January 1, 2013 per Seward City Council Approval
Service Zone I Zone II Zone III
Meter Testing, per Test, When results
$63.67 $89.15 $114.61
determine meter is accurate
$55.13 $77.18 $99.23
Reconnection to approved existing meter
$25.47 $31.84 $38.21
installation
$22.05 $27.56 $33.08
Reconnection to approved existing meter
$178.28 $216.48 $254.68
installation outside regular business hours
$154.35 $187.43 $220.50
New connection fee $191.02 $191.02 $191.02
$165.38 $165.38 $165.38
$115.50 $115.50 $115.50
Minimum Deposit - Residential Account
$100.00 $100.00 $100.00
Minimum Deposit - Commercial or $231.00 $231.00 $231.00
Industrial Account $200.00 $200.00 $200.00
Deposit - Interruptible, Off-Peak Account:
$231.00 $231.00 $231.00
The larger of twice the estimated monthly
$200.00 $200.00 $200.00
OR
bill
Tampering with or unauthorized breaking
$636.70 $636.70 $636.70
of meter seal
$551.25 $551.25 $551.25
Per Annum interest on delinquent account 10.50% 10.50% 10.50%
Door Hanger Fee $30.50 $30.50 $30.50
$26.25 $26.25 $26.25
Monthly late fee on delinquent account $6.25 $6.25 $6.25
$5.25 $5.25 $5.25
Dishonored check fee $42.50 $42.50 $42.50
$36.75 $36.75 $36.75
City of Seward Electric Tariff
January 1, 2013 per Seward City Council Approval
Reconnection during regular business hours
following disconnection of delinquent $50.94 $63.68 $76.41
account $44.10 $55.13 $66.15
Reconnection outside regular business
hours following disconnection of $178.28 $216.48 $254.68
delinquent account $154.35 $187.43 $220.50
City of Seward Electric Tariff
January 1, 2013 per Seward City Council Approval
Service Zone I Zone II Zone III
Temporary secondary service $63.67 $76.41 $89.15
$55.13 $66.15 $77.18
Primary Overhead Extensions (Residence) $63.67 $76.41 $89.15
$55.13 $66.15 $77.18
Primary Underground Extensions
$63.67 $76.41 $89.15
(Residence)
$55.13 $66.15 $77.18
Secondary service $63.67 $76.41 $89.15
$55.13 $66.15 $77.18
Primary Overhead extensions (Subdivision,
$127.34 $152.81 $178.28
Mobile Home Park, Multi-Residence)
$110.25 $132.30 $154.35
Primary Overhead Extensions (Commercial
$254.68 $305.61 $331.09
& Industrial)
$220.50 $264.60 $286.65
Primary Underground Extensions
$254.68 $305.61 $331.09
(Commercial & Industrial)
$220.50 $264.60 $286.65
Modifications of Existing Facilities $127.34 $152.81 $178.28
$110.25 $132.30 $154.35
Street Lighting Systems and Yard Lights $63.67 $76.41 $89.15
$55.13 $66.15 $77.18
NOTE:
The Zone Fee or Charge is non-refundable until the service is connected.
If the service is constructed and connected, the charge will be adjusted to
the actual coast of engineering services.
See Page 2-3 for description of Zones I, II and III.
City of Seward Electric Tariff
January 1, 2013 per Seward City Council Approval