Lakeland Electric Rate Study Slides

AFFORDABLE | DEPENDABLE | SUSTAINABLE

2015 Rate Study Workshop #5 Base Rate Adjustments Jeff Sprague, CPM Manager Pricing & Rates Ted Kelly, Project Manager Burns & McDonnell November 17, 2014

Workshop Agenda • Cost of Service - Review • Policy and Rate Design

• Base Rate Adjustments • Changes to Existing Pricing

• New/Optional Pricing • Billing Impacts 2

Revenue Increase- Proposed 2015 Rate Study - Proposed

Revenue Share

Revenue Adjustment Required

Percent COS

System

$

7,525,077

5.08%

100.0%

Residential

$

5,180,329

6.21%

100.0%

Sm Comm

$

-3.68%

108.7%

Comm Demand

$

1,138,641

4.84%

100.0%

Industrial

$

984,603

7.55%

98.0%

Interruptible

$

154,873

7.50%

98.5%

ELDC

$

245,134

7.52%

82.1%

Interruptible TOD

$

334,285

30.84%

100.0%

(515,741)

3

Cost of Service Allocations Revenue Share

Revenue Adjustment Required

Percent COS Achieved

System

$ 155,593,096

5.08%

100.0%

Residential

$

88,580,129

6.21%

100.0%

3.50%

Sm Comm

$

13,514,559

-3.68%

108.7%

-2.12%

Comm Demand

$

24,659,241

4.84%

100.0%

2.29%

Industrial

$

14,021,103

7.55%

98.0%

3.54%

Interruptible

$

2,218,473

7.50%

98.5%

2.67%

ELDC

$

3,503,134

7.52%

82.1%

2.27%

Interruptible TOD Lighting & Unmetered

$

1,418,285

30.84%

100.0%

$

7,678,172

Average Bill Change pre-tax

4

Policy Change in Rate Study • New PV-owning customers on demand rate • Demand pricing provides equitable recovery of Delivery costs • Reduce customer subsidy to PV owners

• Existing PV-owning customers • Move to demand pricing after 10 years • September 2015 to install planned systems 5

Base Rate Adjustments Changes to Existing Pricing • Residential • Customer Charge increase to $9.50 • Energy Charge increase to •

Tier 1(<1000) $0.05085

Tier 2(1001-1500) $0.05646

Tier 3(>1501) $0.06207

• Billing Impact (pre-tax) – est. 3.5% • • •

3.8% for 750 kWh 3.3% for 1148 kWh 3.1% for 2000 kWh 6

Base Rate Adjustments Changes to Existing Pricing • Residential Shift-to-Save • • • • •

Change to 3-period pricing Customer Charge increase to $9.50 On-Peak Energy Charge increase to $0.13225 Mid-Peak Energy Charge increase to $0.07736 Off-Peak Energy Charge increase to $0.02232

• All existing Residential Shift-to-Save customer 7

Base Rate-New • Residential – Demand Option • Customer Charge $9.50 • Energy Charge $0.02232 • Demand Charge $4.80

• New PV-owning customers in FY16

8

Base Rate Adjustments Changes to Existing Pricing • Small Commercial • Customer Charge increase to $12.00 • Energy Charge decrease to $0.04974 • Billing Impact (pre-tax) – est. -2.12% • • •

-1.2% for 1000 kWh -2% for 1780 kWh -2.8% for 5000 kWh

9

Base Rate Adjustments Changes to Existing Pricing • Small Commercial Shift-to-Save • • • • •

Change to 3-period pricing Customer Charge increase to $12.00 On-Peak Energy Charge increase to $0.0XX Mid-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX

• All existing Small Commercial Shift-to-Save customer 10

Base Rate-New • Small Commercial – Demand Option • Customer Charge $12.00 • Energy Charge $0.01986 • Demand Charge $4.83

11

Base Rate Adjustments Changes to Existing Pricing • Commercial Demand • • • •

Customer Charge increase to $35.00 Energy Charge decrease to $0.01911 Demand Charge increase to $8.00 Billing Impact (pre-tax) – est. 2.29% • • •

3.2% for 13,505 kWh, 50 kW demand 2.3% for 33,268 kWh, 98 kW demand 1.6% for 207,634 kWh, 499 kW demand

12

Base Rate Adjustments Changes to Existing Pricing • Commercial Demand Shift-to-Save • • • •

Customer Charge increase to $35.00 Demand Charge increase to $8.00 On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX

13

Base Rate Adjustments Changes to Existing Pricing • Industrial (GSLD) • • • •

Customer Charge increase to $380.00 Energy Charge decreased to $0.01492 Demand Charge increase to $9.34 Billing Impact (pre-tax) – est. 3.54% • • •

4% for 318,974 kWh, 971kW demand 2.7% for 2,007,099 kWh, 4,999 kW demand 1.8% for 2,372,026 kWh, 4,999 kW demand

14

Base Rate Adjustments Changes to Existing Pricing • Industrial (GSLD) Shift-to-Save • • • •

Customer Charge increase to $380.00 Demand Charge increase to $9.34 On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX

15

Base Rate Adjustments Changes to Existing Pricing • Interruptible • • • •

Customer Charge increase to $380.00 Energy Charge decreased to $0.01492 Demand Charge increase to $9.45 Billing Impact (pre-tax) – est. 2.67% • • •

3.7% for 401,500 kWh, 1000 kW demand 2.5% for 1,056,665 kWh, 2236 kW demand 1.6% for 1,224,210 kWh, 2236 kW demand

16

Base Rate Adjustments Changes to Existing Pricing • Interruptible Shift-to-Save • • • • •

Customer Charge increase to $380.00 Demand Charge increase to $9.45 Controlled Demand Credit unchanged On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX

17

Base Rate Adjustments Changes to Existing Pricing • Large Demand Interruptible Shift-toSave • • • • •

Customer Charge increase to $380.00 Demand Charge increase to $X.XX Controlled Demand Credit unchanged On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX

18

Base Rate Adjustments Changes to Existing Pricing • Extra Large Demand Customer • • • • •

Customer Charge increase to $380.00 Energy Charge decreased to $0.00205 Demand Charge increase to $10.58 Local Distribution Charge not needed Billing Impact (pre-tax) – est. 2.27% • • •

2.5% for 2,737,500 kWh, 5000 kW demand 2.1% for 9,307,500 kWh, 15,000 kW demand 1.8% for 10,402,500 kWh, 15,000 kW demand 19

Base Rate Adjustments Changes to Existing Pricing • Firm Supplemental and Standby • • • • • • •

Customer Charge increase to $.00 Reservation Charge increase to $X.XX Daily Demand Charge increase to $X.XX Local Distribution Charge increase to $0.0XX Energy Charge increase to $0.0XX On-Peak Energy Charge increase to $0.0XX Off-Peak Energy Charge increase to $0.0XX 20

Base Rate-New • Economic Development • • • • • • •

$250,000 initial funding level Compatible w/ LEDC target industry & jobs Subject to approval of City Manager Discount Year 1 - 25% Discount declines 5% per year 350 kW minimum demand – new 350 kW minimum demand - existing 21

Other Rate Schedule Changes • Delete unused service schedules • Residential & Commercial Electric Vehicle Charging • Large High Load Factor Power Service • Shift-to-Save market trial service

• Stop accepting new Interruptible customers • Update miscellaneous service charges 22

Update Service Charges

23

What Next?

1.

2.

3.

4.

Complete rate design December 1st rate ordinance 1st reading December 11th public hearing 6:00 pm December 15th rate ordinance 2nd reading

24

Questions?

25