HomeMy WebLinkAbout8, Consent Public Hearing Electric Utility Rate Increase
ACTION ITEM #8of Electric Utility RatesPublic Hearing Related for Adoption Consideration of Scheduling a of Electric Utility RatesPublic Hearing Related for Adoption Consideration of
Scheduling a February 6, 2019
Electric Utility Rate Increase 2016 Electric Utility limited rate structure design review •update2015 Water Utility rate study •Water Utility rate study 2013 •structure design review
comprehensive rate 2010 Electric Utility •rates and feesand Water Utility Electric review the District’s cost of service and to provide rate design for in the past to Engineering, HDR
District has contracted with The •that objective is metstudies help ensure Rate •cost of serviceThe District strives to ensure rates are set adequately to cover the •BACKGROUND / HISTORY
Electric Utility Rate Increase
BACKGROUND / HISTORY Efficient operations•agreementsWell structured long term power purchase •since FY09not changed had Utility rates 01 Electric -Prior to Ordinance 2016••replacement
SCADA •AMI Project•FY19in % and 3FY18, in rate increases of 2% in FY17, 3% Utility maximum Electric 01 setting -2016the Board adopted Ordinance July of 2016 In •Electric Utility Rate
IncreaseElectric Utility Rate Increase
BACKGROUND / HISTORY Increasing legislative and regulatory costs•Changing operating environment•Focusing on rate increases for FY20 & FY21 to allow flexibility•Identifying inflationary
adjustments needed to cover costs•Preparing District for changes in technology and industry shifts•based rates across rate categories-Developing equitable cost•2024)–operations and
infrastructure maintenance (2020 Analyzing cost of service necessary to determine revenue needed for •The Study included the following services•Presented as a workshop item on 1/16/19•Designfor
a comprehensive Electric Utility Cost of Service and Rate The Board authorized a contract with HDR Engineering in July 2018 •Electric Utility Rate IncreaseElectric Utility Rate Increase
BACKGROUND / HISTORY residentsMaintaining separate rate categories for primary and secondary •Deferred liability fund for pensions costs•One year capital replacement•Six months cost
of purchased power•Six months operating budget•reservesthe need for increased cash The Study also included evaluating •Electric Utility Rate IncreaseElectric Utility Rate Increase
NEW INFORMATION The next step is to set a Pubic Hearing for March•Cost of Service Study and Possible Rate Adjustment Timeline•Rates Effective JAN 2020 Adopt OrdinancePublic Hearing MAR
Board Workshop JAN 2019 CompleteInitial Study SEPT BoardProposal to JUL 2018 IncreaseElectric Utility Rate IncreaseElectric Utility Rate
FISCAL IMPACT process that may affect the District’s finances for the next three yearsThis request to set a Public Hearing is part of the overall rate design •IncreaseElectric Utility
Rate IncreaseElectric Utility Rate
RECOMMENDATION Utility Rates6:00 pm or shortly thereafter for proposed changes to the Electric Set a Public Hearing for the March 6, 2019 District Board meeting at •IncreaseElectric
Utility Rate IncreaseElectric Utility Rate