HomeMy WebLinkAboutRes2019-113 Sponsored by: Meszaros
Public Hearing: December 9, 2019
CITY OF SEWARD,ALASKA
RESOLUTION 2019-113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE ELECTRIC RATES AND CHARGES AND
READJUSTING RATES TO REFLECT SEWARD ELECTRIC UTILITY
CHARGE, COST OF POWER ADJUSTMENT AND CUSTOMER
CHARGE FOR 2020 AND 2021
WHEREAS, the Seward City Council desires to keep the electric fund healthy and
sustainable while considering impacts to customers; and
WHEREAS, the Council does not wish to raise rates without adequate knowledge and
information for 2020 electric rates; and
WHEREAS, the Council seeks to define the electric rates in 2020 prior to initiating the
Consumer Price Index of 1.2% for 2020; and
WHEREAS, to that end, Council approves changes to the Electric Tariff as attached
hereto in"Electric Rates&Charges 2020", effective January 15, 2020; and
WHEREAS, the Council further approves changes to the Electric Tariff as attached
hereto in"Electric Rates &Charges 2021"to be effective January 15, 2021.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. Effective January 15, 2020, the Seward City Council hereby approves the
adjusted Electric Tariff rates and charges as attached hereto as "Electric Rates & Charges —
2020".
Section 2. Effective January 15, 2021, the Seward City Council hereby approves the
adjusted Electric Tariff rates and charges as attached hereto as "Electric Rates & Charges —
2021".
Section 3.This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th
day of December,2019.
CITY OF SEWARD,ALASKA
RESOLUTION 2019-113
T E IT OF EWARD, A A
isty Terry,
AYES: Osenga, McClure, Butts, Lane, Seese, Baclaan,Terry
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballo , MMC
City Clerk
(City Se s. e�
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Council Agenda Statement
Meeting Date: December 9, 2019
From: John Foutz, Manager Electric Utility
Through: Scott Meszaros, City Manager
Agenda Item: Amending Electric Rates and Charges and readjusting
rates to reflect Seward Electric Utility charge, cost of power charge and customer
charge for 2020 and 2021.
BACKGROUND & JUSTIFICATION:
Based on the discussion at the November 6`h Council work session, the Seward City Council
does not wish to implement the automatic Consumer Price Index (CPI) for 2020 of 1.2% until
more information about the electric rates is attained. The previous rate study done in 2017
showed that all rate classes were close to where they should be and that a slight increase was
justified and warranted based on the recent history of a decrease in overall usage to the utility.
During previous budget work sessions in 2017, some customers of the City of Seward Utility
expressed they wanted the electric utility bill to be easier to comprehend and transparent. The
Seward City Council chose to implement a COPA based rate system to all rate classes to address
this concern. The Council approved changing the previous rate structure (from an Energy
charge, Fuel adjustment charge, infrastructure fee) to a rate structure more in line with other
utilities (Seward utility charge, Cost of Power Adjustment [COPA], customer charge). The
council also approved narrowing the margin of difference for the seasonal rates (Summer and
Winter rates) for the residential and small general rate classes. The Seward utility does not
change the COPA as this is a pass-through cost from the utility selling power to Seward. This
was meant to more accurately demonstrate to rate payers the cost for purchasing power and the
cost to support the infrastructure of the Seward Utility. The COPA continues to fluctuate
monthly because the price of fuel is included with this category. Also, any rate adjustments by
the power provider, Chugach Electric Association, will be reflected in the COPA. With only two
years of historical data, the validity of the Cost of Power Adjustment (COPA) based rate system
cannot be accurately determined.
INTENT: The purpose of Resolution 2019-113 is to modify the Electric tariff to sufficiently
recover projected expenses to the Electric Enterprise fund for fiscal years 2020 and 2021.
84
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (L 3, 3. 7. 3. 1, 3. 7. 3. 2): Continue to upgrade
1 and expand utilities to meet existing needs and encourage future X
development. Expand customer base within the Seward Electric Utility
area as a means to reduce energy costs and improve services.
2 Strategic Plan:The mission of the City of Seward government is to X
provide quality leadership and economic wellbeing of its citizens
3. Other: X
FISCAL NOTE:
A freeze to 2020 rates will impact the electric utility with a projected decrease of$86,882 and
the 1.2% increase in 2021 is expected to compensate for a projected slight loss, based on
historical data, in overall sales and continue to keep up with inflation.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Seward City Council approves Resolution 2019-113 amending the Electrical Rates and Charges
tariffs for 2020 and 2021.
85
Electric Rates & Charges
2020
ELECTRIC RATES & CHARGES
RATES FOR ELECTRICAL POWER BY CLASS OF SERVICE
Class of Service Seward Utility Charge Demand Charge Customer Charge
/kWh /kW
Residential Base rate: $.09526
Summer* $0.11718 N/A
$21.84
Winter* $0.08098 N/A
Small General Service Base rate: $.10906
(Less than 25 kW)
Summer* $0.12542 N/A $41.72
Winter* $0.09161 N/A
Boat Harbor(Less $.10906/kWh N/A $41.72
than 25 kW)
Large General Service $0.07523 (l st 200 kWh/kW) $26.61** $43.71
$0.02606(Additional kWh)
$9.82 (175 watts)
$14.58 (250 watts)
Yard Lights N/A N/A $27.76 (400 watts)
$69.38 (1000 watts)
LED equivalent=(1/2
of cost)
Metered Street Lights $0.14471 N/A $43.71
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.
* Summer is defined to mean the period from April 15 through October 15 with Winter defined as the
remainder of the year.
** Demand Charges will be based on the maximum demand recorded over a 15-minute period.
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. Department of Labor, Bureau of Labor Statistics.
(NOTE:11112014 utilizes CPI Data from 2007-2011).
87
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
System delivery charge: A system delivery Charge (SDC) of$28.75 will be applied to any service that
uses less than 150 kWh/month, whether or not electric service is used. This replaces the Seward Utility
energy charge and the Cost of Power Adjustment, and is subject to proration. SDC under this schedule is
an addition to the customer-charge and is based on a monthly usage of 150 kWh times the energy rate and
the COPA. Absent an active customer the registered property owner- will be billed this monthly
minimum charge.
Cost of Power Adjustment(COPA): The Cost of Power adjustment charge from the Power Provider is a
direct pass-through of the monthly total Power bill, including fuel costs, energy charges, customer
charges, demand charges, and other miscellaneous adjustments, prorated according to the number of
kilowatt hours the Seward Electrical Utility customers consumed during the billing period. The monthly
rate for COPA may be modified as frequently as monthly, or through the use of a balancing account
intended to reduce rate fluctuations.
Seward Fuel Adjustment: The Seward Fuel Adjustment cost may be included in the COPA in the event
The City operates the standby generation plant, including fuel, labor, maintenance and repair when the
cost exceeds the amount budgeted. The cost will be prorated according to the number of kWh the
customers consumed during the billing period.
Special Contracts: 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): All schedules requiring demand metering will be subject to the
following power factor adjustment provisions:
(1) 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%
Actual Power Factor
(2) 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: 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,
88
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: Fees and charges for existing facilities can be found on the
following pages, as well as engineering service fees and charges for new facilities. Fees are listed
according to service zones as follows:
ZONE I Inside City Limits (excluding the Seward 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: 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.
Alternative Power Rebate: kWh generated by an alternative power source will be deducted from the kWh
supplied by the City of Seward distribution system on a per month basis. Any excess energy generated
and placed onto the City's distribution system will be credited at the non-firm avoided cost rate
established by the Regulatory Commission of Alaska. (Resolution 2014-047, Effective June 7, 2014)
89
EXISTING FACILITIES
SCHEDULE OF FEES AND CHARGES
Service Zone I Zone II Zone III
Meter Testing,per test,when results determined meter 72.84 101.98 131.09
is accurate
Reconnection to approved existing meter installation 29.14 36.42 43.71
Reconnection to approved existing meter installation 203.95 247.62 291.33
outside regular business hours
New connection fee 218.52 218.52 218.52
Minimum Deposit-Residential Account 120.10 120.10 120.10
Minimum Deposit-Commercial or Industrial Account 240.21 240.21 240.21
The larger of The larger of The larger of
twice the twice the twice the
Deposit-Interruptible, Off-Peak Account estimated estimated estimated
monthly bill or monthly bill or monthly bill or
$240.20 $240.20 $240.20
Tampering with or unauthorized breaking of meter seal $728.32 728.32 728.32
Per Annum interest on delinquent account 10.5% 10.5% 10.5%
Door Hanger Fee 34.68 34.68 34.68
Monthly late fee on delinquent account 6.25 6.25 6.25
Dishonored check fee 39.12 39.12 39.12
Seasonal Turn-On Fee and Seasonal Turn-Off Fee $150.50 Turn- $150.50 Turn- $165.55Turn-
(excludes brand new service; includes new account On On On
name or same account name; waived if<2 months $150.50 Turn- $150.50 Turn- $165.55Tum-
between turn-off and turn-on) Off Off Off
Reconnection during regular business hours following $57.32 $71.69 $86.03
disconnection of delinquent account
Reconnection outside regular business hours following $200.74 243.72 287.79
disconnection of delinquent account
Transmission Rate $7.84/kW-per $7.84/kW- $7.84/kW-
Month per Month per Month
90
NEW FACILITIES—ENGINEERING SERVICE CHARGES
SCHEDULE OF FEES AND CHARGES
Service Zone I Zone II Zone III
Temporary secondary service $72.84 87.41 101.98
Primary Overhead Extensions (Residence) 72.84 87.41 101.98
Primary Underground Extensions (Residence) 72.84 87.41 101.98
Secondary service 72.84 87.41 101.98
Primary Overhead extensions (Subdivision,Mobile 145.66 174.85 203.95
Home Park, Multi-Residence)
Primary Overhead Extensions (Commercial& 291.33 349.60 378.74
Industrial)
Primary Underground Extensions (Commercial& 291.33 349.60 378.74
Industrial)
Modifications of Existing Facilities 145.66 174.80 203.95
Street Lighting Systems and Yard Lights 72.84 87.41 101.98
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 cost of engineering services.
91
Electric Rates & Charges
2021
ELECTRIC RATES & CHARGES
RATES FOR ELECTRICAL POWER BY CLASS OF SERVICE
Class of Service Seward Utility Charge Demand Charge Customer Charge
/kWh /kW
Residential Base rate: $.0964
Summer* $0.1186 N/A
$22.10
Winter* $0.0820 N/A
Small General Service Base rate: $.1103
(Less than 25 kW)
Summer* $0.1269 N/A $42.22
Winter* $0.0927 N/A
Boat Harbor(Less $.1103/kWh N/A $42.22
than 25 kW)
Large General Service $0.0761 (lst 200 kWh/kW) $26.93** $44.23
$0.0264(Additional kWh)
$9.94(175 watts)
$14.75 (250 watts)
Yard Lights N/A N/A $28.09 (400 watts)
$70.21 (1000 watts)
LED equivalent=(1/2
of cost)
Metered Street Lights $0.1464 N/A $44.23
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.
* Summer is defined to mean the period from April 15 through October 15 with Winter defined as the
remainder of the year.
** Demand Charges will be based on the maximum demand recorded over a 15-minute period.
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. Department of Labor, Bureau of Labor Statistics.
(NOTE:11112014 utilizes CPI Data from 2007-2011).
99
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
System delivery charge: A system delivery Charge (SDC) of$28.75 will be applied to any service that
uses less than 150 kWh/month, whether or not electric service is used. This replaces the Seward Utility
energy charge and the Cost of Power Adjustment, and is subject to proration. SDC under this schedule is
an addition to the customer-charge and is based on a monthly usage of 150 kWh times the energy rate and
the COPA. Absent an active customer the registered property owner- will be billed this monthly
minimum charge.
Cost of Power Adjustment(COPA): The Cost of Power adjustment charge from the Power Provider is a
direct pass-through of the monthly total Power bill, including fuel costs, energy charges, customer
charges, demand charges, and other miscellaneous adjustments, prorated according to the number of
kilowatt hours the Seward Electrical Utility customers consumed during the billing period. The monthly
rate for COPA may be modified as frequently as monthly, or through the use of a balancing account
intended to reduce rate fluctuations.
Seward Fuel Adjustment: The Seward Fuel Adjustment cost may be included in the COPA in the event
The City operates the standby generation plant, including fuel, labor, maintenance and repair when the
cost exceeds the amount budgeted. The cost will be prorated according to the number of kWh the
customers consumed during the billing period.
Special Contracts: 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): All schedules requiring demand metering will be subject to the
following power factor adjustment provisions:
(1) 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%
Actual Power Factor
(2) 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: 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,
100
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: Fees and charges for existing facilities can be found on the
following pages, as well as engineering service fees and charges for new facilities. Fees 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: 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.
Alternative Power Rebate: kWh generated by an alternative power source will be deducted from the kWh
supplied by the City of Seward distribution system on a per month basis. Any excess energy generated
and placed onto the City's distribution system will be credited at the non-firm avoided cost rate
established by the Regulatory Commission of Alaska. (Resolution 2014-047, Effective June 7, 2014)
101
EXISTING FACILITIES
SCHEDULE OF FEES AND CHARGES
Service Zone I Zone II Zone III
Meter Testing,per test,when results determined meter 75.75 106.06 136.33
is accurate
Reconnection to approved existing meter installation 30.30 37.88 45.46
Reconnection to approved existing meter installation 212.11 257.52 302.98
outside regular business hours
New connection fee 221.14 221.14 221.14
Minimum Deposit-Residential Account 121.54 121.54 121.54
Minimum Deposit-Commercial or Industrial Account 243.09 243.09 243.09
The larger of The larger of The larger of
twice the twice the twice the
Deposit-Interruptible, Off-Peak Account estimated estimated estimated
monthly bill or monthly bill or monthly bill or
$243.09 $243.09 $243.09
Tampering with or unauthorized breaking of meter seal $737.06 737.06 737.06
Per Annum interest on delinquent account 10.5% 10.5% 10.5%
Door Hanger Fee 35.10 35.10 35.10
Monthly late fee on delinquent account 6.33 6.33 6.33
Dishonored check fee 39.59 39.59 39.59
Seasonal Turn-On Fee and Seasonal Turn-Off Fee $156.50 Turn- $156.50 Turn- $172.17Turn-
(excludes brand new service; includes new account On On On
name or same account name; waived if<2 months $156.50 Turn- $156.50 Turn- $172.17Tum-
between turn-off and turn-on) Off Off Off
Reconnection during regular business hours following $57.32 $71.69 $86.03
disconnection of delinquent account
Reconnection outside regular business hours following $200.74 243.72 287.79
disconnection of delinquent account
Transmission Rate $7.84/kW-per $7.84/kW- $7.84/kW-
Month per Month per Month
102
NEW FACILITIES—ENGINEERING SERVICE CHARGES
SCHEDULE OF FEES AND CHARGES
Service Zone I Zone II Zone III
Temporary secondary service $73.71 88.46 103.20
Primary Overhead Extensions (Residence) 73.71 88.46 103.20
Primary Underground Extensions (Residence) 73.71 88.46 103.20
Secondary service 73.71 88.46 103.20
Primary Overhead extensions (Subdivision,Mobile 147.41 176.95 206.40
Home Park, Multi-Residence)
Primary Overhead Extensions (Commercial& 294.83 353.80 383.28
Industrial)
Primary Underground Extensions (Commercial& 294.83 353.80 383.28
Industrial)
Modifications of Existing Facilities 147.41 176.95 206.40
Street Lighting Systems and Yard Lights 73.71 88.46 103.20
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 cost of engineering services.
103