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Home My WebLink About9 Public Hearing on Proposed Electric Rates FY22-FY23 December 1, 2021 FY23-FY2203 Setting Electric Rates for -2021Public Hearing and Consideration of Ordinance 9PUBLIC HEARING # •3%2.7%3%3%2%IncreaseFY21FY20FY19FY18FY17Fiscal Year BACKGROUND / HISTORYBACKGROUND / HISTORY 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 No change in electric rates from 2012 through 2016•tableincreases are summarized in the following These •-FY20increased electric rates for 01 -2019Ordinance •-FY17electric rates for increased 01 -2016Ordinance •Ordinanceadopted by Board and retail rates are set by the Electric •NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 23 BudgetMaster Plan and proposed FY22in the Financial goals financial rate generated revenues with aligns Electric rate study •goalsimprovements and cash reserve Consider increased revenue requirements to pay for capital •PlanFinancial Master year 1023 Budget adoption process, staff presented the the FY22During •optionenergy, retail rate renewable (green) 100•updateretail rate design Comprehensive Electric Utility Cost of Service Analysis (COSA) and •), tasked with preparingConsulting, Inc. (EES ConsultingOn October 7, 2020, the Board approved a contract with EES •NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 and reserve fund balance goalsIncrementally builds toward the electric utility capital investment needs •Budget23 -FY22the approved alignment with Provides a year over year increase in annual electric utility revenue in •classesall customer rate design for developed a recommended rate staff and EES Consulting have received, on feedback Based •6.5% in FY23revenue increase from rates of 8.5% in FY22 and Recommended electric •Budget, including23 -also presented the final proposed FY22Staff •rate study and proposed 100% Renewable energy rate optionConsulting, presented an overview and summary of the EES and Staff •meetingthe November 3rd Board At •$0.2206 $0.2072 $0.1901 Average Cost per kWh$6.38 / 6.5%$8.15 / 9.0%NA Average Monthly Bill change$104.81 $98.42 $90.28 Average Monthly Bill at 475 kWh$0.1690 $0.1623 $0.1510 Energy Charge $/kWh$24.53 $21.33 $18.55 Customer Charge $/MonthResidents (Secondary)Permanent -NonRate S10$0.1793 $0.1684 $0.1552 Average Cost per kWh$8.72 / 6.5%$10.54 / 8.5%NA Average Monthly Bill change$143.41 $134.69 $124.15 Average Monthly Bill at 800 kWh$0.1486 $0.1417 $0.1320 Energy Charge $/kWh$24.53 $21.33 $18.55 Customer Charge $/MonthResidents (Primary)Permanent Rate P10 6.5%8.5%NAProposed Overall Revenue ImpactFY23FY22FY21RateRateRateProposedProposedCurrent NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 Primary and Secondary ResidentialRecommended rate design •$0 / 7.7%$0 / 5.0%Average Cost per kWh change$0.1882 $0.1747 $0.1664 Average Cost per kWh$14.93 $14.22 $13.67 Demand Charge $/kW$0.1257 $0.1166 $0.1100 Energy Charge $/kWh$272.84 $272.84 $272.84 Customer Charge $/MonthMedium CommercialRate 20 $0.2112 $0.1983 $0.1888 Average Cost per kWh$18.73 / 6.5%$13.69 / 5.0%NA Average Monthly Bill change$306.24 $287.51 $273.82 Average Monthly Bill at 1450 kWh$0.1884 $0.1776 $0.1700 Energy Charge $/kWh$33.06 $30.05 $27.32 Customer Charge $/MonthSmall CommercialRate 156.5%8.5%NAProposed Overall Revenue ImpactFY23FY22FY21Ra teRateRateProposedProposedCurrent NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 Small and Medium CommercialRecommended rate design •$0.020 $0.020 NA Energy Charge Adder $/kWh100% Renewable Energy Rate AdderRate G100 (Optional)$0 / 5.7%$0 / 14.5%Average Cost per kWh change$0.1919 $0.1815 $0.1585 Average Cost per kWh$14.40 $13.71 $13.06 Demand Charge $/kW$0.1343 $0.1248 $0.1040 Energy Charge $/kWh$1,196.79 $1,196.79 $1,196.79 Customer Charge $/MonthLarge CommercialRate S106.5%8.5%NAProposed Overall Revenue ImpactFY23FY22FY21RateRateRateProposedProposedCurrent NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 Large Commercial & 100% RenewableRecommended rate design Public Hearing & Ordinance 2021 2021August NCPA source: Chart NEW INFORMATIONNEW INFORMATION 23-03 Electric Rates FY22-Public Hearing & Ordinance 202123-03 Electric Rates FY22- •NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 Average 800 kWh per month Primary, 475 kWh Secondary•Residential rate comparison (blend 40% Primary and 60% Secondary) •NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 28.82 cents)-Seasonal average bill increase of 52% (average per kWh •)23.62 cents-average bill increase of 40% (average per kWh Permanent •UtilitiesLiberty Regional benchmark residential rate increase comparison with •4.1%–Hayward area -Oakland-in the San Franciscoyear period -growth for the same tenenergy rate US Bureau of Labor Statistics •2.3%–Secondary Customers •1.8%–Primary Customers •Average annual compounded energy rate growth•rates) to 2022 (recommended rate)Residential rate comparison over 10 year period from 2012 (actual •NEW INFORMATIONNEW INFORMATION 2303 Electric Rates FY22Public Hearing & Ordinance 20212303 Electric Rates FY22Public Hearing & Ordinance 2021 Commercial rate comparison (based on blend of all commercial rates) •32%26%42%%of Revenue @ Current Rates37%28%35%% of KW Demand35%27%38%% of kWh94%% of CustomerLargeMediumSmallClassStatistics / RateCommercial NEW INFORMATIONNEW INFORMATION 23-03 Electric Rates FY22-Public Hearing & Ordinance 202123-03 Electric Rates FY22-Public Hearing & Ordinance 2021 Commercial customer statistics by rate class •NEW INFORMATIONNEW INFORMATION 23-03 Electric Rates FY22-Public Hearing & Ordinance 202123-03 Electric Rates FY22-Public Hearing & Ordinance 2021 100% renewable rate study and supporting information-4 Attachment •design/recommendationsComplete cost of service study including rate -3 Attachment •2alternative recommendation, referred to as Proposed Rate and an Recommended new rates, referred to as Proposed Rate -Attachment 2 •)Attachment 2 (Proposed Rate 1and detailed in table rate design as shown on the prior Recommended •FY23-FY22Establishing a 100% Renewable Energy Rate Option for 03 Setting Electric Rates and -Ordinance 2021-1 Attachment •Review of Attachments •NEW INFORMATIONNEW INFORMATION 23-03 Electric Rates FY22-Public Hearing & Ordinance 202123-03 Electric Rates FY22-Public Hearing & Ordinance 2021 2022of each year beginning in January 1st would be effective Rates •2022 January •Renewable Energy ratenew 100% increase Electric rates and adopt a 03 to -Ordinance 2021onsideration C•Electric Utility rate increases on proposed a public hearing Hold •2021December 1, •Renewable Energy rateUtility rate increases and new 100% the proposed Electric on December 1, 2021 for a public hearing Scheduled •Renewable Energy rate% 100the proposed Electric Utility rate increases and a new Reviewed •2021November 3, •appliesfollowing schedule rates, the the Board adopts new If •FISCAL IMPACTFISCAL IMPACT 23-03 Electric Rates FY22-Public Hearing & Ordinance 202123-03 Electric Rates FY22-Public Hearing & Ordinance 2021 increase)overall dependent on the FY22 Budget (also required for the approved FY23 FY23 increase of 6.5% generates an incremental $2,012,000 in revenue •Budgetrequired for the approved FY22 FY22 increase of 8.5% generates an incremental $2,415,000 in revenue •improvementsbudgeted expenditures for operations and capital generated revenues and rate rates will have a direct impact New •Optional 100% Renewable Energy rate of 2 cents per kWh•FY23and 6.5% for FY22, Overall effective rate increase of 8.5% for •FY23 includes-FY22recommendation to adopt and set new electric rates for The •RECOMMENDATIONRECOMMENDATION 23-03 Electric Rates FY22-Public Hearing & Ordinance 202123-03 Electric Rates FY22-Public Hearing & Ordinance 2021 2022implemented starting on January 1, Ordinance will take effect 30 days from adoption and will be optional 100% Renewable Energy Rate, for FY22 and FY23. This 03 setting Electric Rates, including an -Ordinance 2021Approve •andoptional 100% Renewable Energy rate; a Public Hearing on the proposed Electric Rates and an Conduct