HomeMy WebLinkAbout#4 & 5 - Electric Rates
Staff Report
To: Board of Directors
From: Stephen Hollabaugh – Assistant General Manager
Date: July 6, 2001
Proposed Retail Electric Rate Increase
Because of the increasing wholesale electric rates, the District proposes to raise retail
electric revenues for the first time since 1986. Even with this increase, the Districts rates will
be significantly lower than they are for Californian’s served by the state’s largest utilities.
Some of the additional information is contained herein.
TDPUD Power Supply Costs $/MWhr: This graph shows how our wholesale price has
increased from 2000 through 2009. In 2000 we were paying $35.35 per MWhr (megawatt
hour), which is the same as 3.535 cents per KWHr (kilowatt hour). In 2001 the wholesale
price went to 4.602 cents per kilowatt-hour. In 2002 it will go to 7.054 cents per kilowatt-
hour. Finally, in 2003 it will go to 8.25 cents per kilowatt-hour.
So, in 2002 we will have to be paying an additional 2.452 cents for wholesale power. Our
retail rates will need to go up a like amount by January 2002.
The next year our wholesale power costs will go up another 1.196 cents per kilowatt hour,
and our retail rates will again need to go up by that amount.
Review of retail rates: Our current residential retail electric rate is 6.811 cents per kilowatt-
hour. By January 2002 it will need to be increased to 9.263 cents, and by January 2003 it
will need to be increased to 10.459 cents.
Option A, Increase 50% now, 50% January 2002: The District would split the increase of
2.452 cents per KWhr into two equal increases, an increase of 1.226 cents per KWHr in
August of 2001 and another 1.226 increase to begin January 2002. The typical residential
monthly electric bill for a customer using 650 kWh would increase from about $48.27 to
$56.24 in August and $64.21 in January 2002. The proposed rates would be:
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Current Rate August 2001 January 2002
Domestic Electric Rates: Permanent Residents
Rate P10
Customer Charge: per month $4.00 $4.00 $4.00
Energy Charge per kilowatt-hour $0.06811 $0.08037 $0.09263
Domestic Electric Rates: Non-Permanent Residents
Rate S10
Customer Charge: per month $4.00 $4.00 $4.00
Energy Charge per kilowatt-hour $0.08196 $0.09422 $0.10648
Small Commercial Rates
Rate 15
Customer Charge: per month $8.00 $8.00 $8.00
Energy Charge per kilowatt-hour $0.08821 $0.10047 $0.11273
Medium Commercial Rates
Rate 20
Customer Charge: per month $80.00 $80.00 $80.00
Energy Charge per kilowatt-hour $0.03990 $0.05216 $0.06476
Demand Charge per kilowatt of demand $9.77 $9.77 $9.77
Large Commercial Rates
Rate 25
Customer Charge: per month $350.00 $350.00 $350.00
Energy Charge per kilowatt-hour $0.04139 $0.05365 $0.06591
Demand Charge per kilowatt of demand $9.27 $9.27 $9.27
Option B, 100% January 2002: The District would increase of 2.452 cents per KWhr to
begin January 2002. This could leave the District vulnerable to revenue shortages that
might occur during the first two quarters of 2002 when wholesale prices are historically lower
than the summer months. The typical residential monthly electric bill for a customer using
650 kWh would increase from about $48.27 to $64.21 in January 2002. The proposed
rates would be:
Current Rate January 2002
Domestic Electric Rates: Permanent Residents
Rate P10
Customer Charge: per month $4.00 $4.00
Energy Charge per kilowatt-hour $0.06811 $0.09263
Domestic Electric Rates: Non-Permanent Residents
Rate S10
Customer Charge: per month $4.00 $4.00
Energy Charge per kilowatt-hour $0.08196 $0.10648
Small Commercial Rates
Rate 15
Customer Charge: per month $8.00 $8.00
Energy Charge per kilowatt-hour $0.08821 $0.11273
Medium Commercial Rates
Rate 20
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Customer Charge: per month $80.00 $80.00
Energy Charge per kilowatt-hour $0.03990 $0.06476
Demand Charge per kilowatt of demand $9.77 $9.77
Large Commercial Rates
Rate 25
Customer Charge: per month $350.00 $350.00
Energy Charge per kilowatt-hour $0.04139 $0.06591
Demand Charge per kilowatt of demand $9.27 $9.27
RECOMMENDATION:
1) I recommend that the Board approve an Ordinance to raise rates in August 2001 as
described in Option A.
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