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Home My WebLink About7 Ordinance 2019-01 Electric Rates 20-21AqendaItem#7kTRUCKEEDONNERDistrictACTIONTo:BoardofDirectorsFrom:LisaHailDate:March06,2019Subject:ConsiderationofAdoptingOrdinance2019-01ElectricUtilityRatesIncreaseforFY20&FY211.WHYTHISMATTERISBEFORETHEBOARDItistheBoard’spurviewtoadoptDistrictOrdinances.2.HISTORYTheDistrictcontractedwithHDREngineering,Inc.,inthepasttoreviewtheDistrict’srevenuerequirements,costofservice,andtoprovideratedesignforboththeElectricandWaterUtilities.In2016,HDREngineeringprovidedanelectricratestructuredesignreviewandrecommendedincreasingthecustomercharge.TheBoardadoptedOrdinance2016-01increasingelectricratesfortheyears2017,2018,and2019byamaximumof2%,3%,and3%,respectively.Theentireincreasewasappliedtothefixedcustomercharge.DuringtheFY18&FY19budgetadoptionprocess,staffpresentedthe10-yearFinancialMasterPlanwhichinformedtheBoardoftheneedtoconsiderincreasedrevenuerequirementstopayforoperationsandtomeetcashreservegoals.TheBoard,atitsJuly18,2018,meeting,approvedthecontractwithHDREngineeringtoprovideacomprehensiveElectricCostofServiceandRateStudy.AteamofDistrictstaffbeganworkingwithHDREngineeringinAugust,2018,todevelopacostofservicestudyfortheElectricUtility.ShawnKoornofHDREngineeringpresentedasummaryofthedraftresultsattheJanuary16,2019,Boardmeeting.AnoticeofpublichearingfortheproposedElectricUtilityrateincreasewaspublishedonFebruary15,2019.3.NEWINFORMATIONThefinal2018ratestudy:.AnalyzesratedesignforFY20throughFY24inordertopreparetheDistrictforchangesinregulations,technology,andindustryshifts;.Focusesprimarilyonatwo-yeartimeframeofFY20&FY21; .Analyzesfixedinfrastructuremaintenanceandoperationcostsproportionatetorates;.Evaluatesrateincreaseappliedtothecustomercharge;and.Analyzeseachratecategoryindividuallyandcollectivelytoensureadequatecostrecovery.Theresidentialprimaryandsecondaryratecategoriesshouldremainseparate.TheBoard,attheJanuaryworkshop,agreedwithHDR’srecommendationtomaintainseparateratecategoriesatthistime.Theraterecommendationwasbuiltonthefollowingcashreserveassumptions:.ProvideanElectricgeneralfundgoalwithsixmonthsoperatingbudget;.EnsureanElectricratestabilizationfundwithsixmonthscostofpurchasedpower;.Buildacapitalreservefundwithoneyearbudgetedcapital.Provideadeferredliabilityfundwithadequatecashescalatingpensionandotherunfundedliabilitycosts.Followingisatableshowingcurrentratesalongwitha2.7%recommendationforFY20anda2.7%-3%rangeforFY21.RatesProposedRateAdj.FY212.70%3.00%PermanentResidentsCustomerCharge$/Mo___________________________________________EnergyCharge$/kWhNon-PermanentResidentsCustomerCharge$/Mo___________________________________________EnergyCharge$/kWhSmallCommercialCustomerCharge$/Mo___________________________________________EnergyCharge$/kWh___________________________________________MediumCommercialCustomerCharge$/Mo__________________________________________EnergyCharge$/kWhDemandCharge$/kW__________________________________________LargeCommercialCustomerCharge$/Mo__________________________________________EnergyCharge$/kWhDemandCharge$/kwreplacement;andreservestocoverCurrentRatesFY19ProposedFY202.70%I$14.10I$16.18I$18.32$18.55I$0.132$0.132$0.132$0.132I$14.10I$16.18I$18.32$18.55I$o.isi$0.151$o.1s1$o.isi$27.32$27.32$27.32$27.32L$o.159$0.164I$0.169$o.17oI$272.84$272.84$272.84$272.84$0.1o3$o.1o6$0.1o9$0.11$12.86$13.24$13.63$13.67$1,196.79$1,196.79$1,196.79$1,196.79I$o.o97$0.10$0.103$010412.29$12.65$13.02$13.06 4.FISCALIMPACTArateincreaseof2.7%forFY20and3.0%forFY21isrecommendedandwillimpacttheDistrict’sbudgetandfinancialdecisionsthroughFY21.5.RECOMMENDATIONAdoptOrdinance2019-01adoptingnewratesfortheElectricUtilityforyearsFY20andFY21.Thisordinancewilltakeeffect30daysfromadoptiononApril6,2019,andwillbeimplementedonJanuary1,2020.frzLisaHallMichaelD.HolleyAdministrativeServicesDirectorGeneralManager OrdinanceNo.2019-01rIFUCKEE•..DONNERPUbICUtIityDistnctAMENDINGTHEELECTRICRETAILRATESWHEREASDistrictstaffretainedHDREngineeringtoconductanelectricretailratestudy;andWHEREASHDREngineeringcompletedtheelectricretailratestudyandrecommendedanoptiontofairlyallocatethecostofservicetotheDistrict’scustomersthroughincreasedrates;WHEREASapublicworkshopwasheldJanuary16,2019toreceivecommentsconcerningaproposaltoadoptsuchrateincreases;andWHEREASnoticeofapublichearingfortheproposedelectricutilityrateincreasewasadvertisedonFebruary15,2019;andWHEREASapublichearingwasheldonMarch6,2019toreceivepubliccommentsontheproposedelectricrateincrease;andNOW,THEREFORE,BEITENACTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictasfollows:Section1.IfnoprotestismadepursuanttoPublicUtilitiesCodeSection16078,thenthetermsofthisordinanceshallbeeffective30daysafteradoptionbytheBoardofDirectorsoftheDistrict.EffectiveApril6,2019,thefollowingmonthlyelectricratesshallbeimplementedJanuary1,2020.$16.18$0.132DomesticElectricRates:Non-PermanentResidentsRate510CustomerCharge:permonth$16.18EnergyChargeperkilowatt-hour$0.151$27.32$0.164$272.84$0.106$13.241DomesticElectricRates:PermanentResidentsRatePlOCustomerCharge:permonthEnergyChargeperkilowatt-hourSmallCommercialRatesRate15CustomerCharge:permonthEnergyChargeperkilowatt-hourMediumCommercialRatesRate20CustomerCharge:permonthEnergyChargeperkilowatt-hourDemandChargeperkilowattofdemandandOrdinance2019-01 LargeCommercialRatesRate25CustomerCharge:permonth$1,196.79EnergyChargeperkilowatt-hour$0.10DemandChargeperkilowattofdemand$12.65Section2.EffectiveApril6,2019,thefollowingmonthlyelectricratesshallbeimplementedJanuary1,2020.DomesticElectricRates:PermanentResidentsRatePlOCustomerCharge:permonth$18.55EnergyChargeperkilowatt-hour$O.132DomesticElectricRates:Non-PermanentResidentsRateSlOCustomerCharge:permonth$18.55EnergyChargeperkilowatt-hour$O.l51SmallCommercialRatesRate15CustomerCharge:permonth$27.32EnergyChargeperkilowatt-hour$0.17MediumCommercialRatesRate20CustomerCharge:permonth$272.84EnergyChargeperkilowatt-hour$0.11DemandChargeperkilowattofdemand$13.67LargeCommercialRatesRate25CustomerCharge:permonth$1,196.79EnergyChargeperkilowatt-hour$O.1O4DemandChargeperkilowattofdemand$13.06Section3.TheClerkoftheDistrictshallimmediatelycauseacopyofthisordinancetobepublishedinanewspaperofgeneralcirculationandpostedinthreeplaceswithintheDistrict.Section4.TheprovisionsofotherOrdinancesshallremainifeffecttotheextentthattheydonotconflictwiththisordinance.PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictatameetingdulycalledandheldwithintheDistrictonthesixthdayofMarch,2019bythefollowingrollcallvote:AYES:NOES:Ordinance2019-012 ABSTAIN:ABSENT:TRUCKEEDONNERPUBLICUTILITYDISTRICTByBobEllis,PresidentoftheBoardATTEST:ShannaKuhlemier,CMC,DistrictClerkOrdinance2019-013