HomeMy WebLinkAbout16 Firm for Electric Rate Study Agenda Item # 16
Public Utility District I
WORKSHOP
To: Board of Directors
From: Mary Chapman
Date: February 03, 2010
Subject: Discussion of Selection of a Firm to Perform an Electric Rate-Study
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is informational regarding the planned retention of a consultant to perform
an electric rate-study.
2. HISTORY
During 2009, the Board awarded a contract to a consultant to perform a water rate-
study to assist the District in transitioning to metered water rates as required by
AB2572. Increasing/changing of water rates is subject to the requirements of
California Proposition 218. The Board held twelve separate public meetings to review
various aspects of the new water rate structure and increased rates.
Since the completion of the water rate-study, the Board has directed staff to begin
planning for an electric rate-study to be performed during FY10. Under the current
rate structure, residential customers (permanent residents and non-permanent
residents) and commercial customers (small, medium and large) all pay a flat kilowatt-
hour charge (different for each group) and a separate customer charge based on the
size of their service. Additionally, our medium and large commercial customers pay a
demand charge based on their highest energy demand during the month.
In 1994, the District hired a rate consultant to perform an electric rate-study which
became effective in February, 1995. The basic rate structure adopted at that time still
remains in effect, except for periodic rate increases to cover increased District costs.
Attachment 1 is a copy of the current electric rate structure.
3. NEW INFORMATION
In considering the selection of a rate consultant, the Board would want to consider
minimum qualifications, past electric rate design experience in rural resort
communities and look for a project manager that is articulate in both Board
presentations and interaction with community members.
Attached is a Proposed Electric Rate Study Calendar (Attachment 2) to illustrate the
process needed to complete an electric rate-study which could result in a different rate
structure. Unlike water rates, electric rates within the State of California are not
subject to the requirements of Proposition 218.
4. FISCAL IMPACT
There is no direct fiscal impact associated with this workshop item. However, the cost
of hiring an electric rate consultant is estimated to be between $60,000 and $90,000.
5. RECOMMENDATION
Review this report and provide staff direction relating to how the Board would like to
proceed.
Mary ChaQn`an0 Michael D. Holley
Administrative Services Manager General Manager
ATTACHMENT 1 TRUCKEE
-
Ordinance No. 2007 - 03
AMENDING THE ELECTRIC RETAIL RATES AND
ESTABLISHING THE CALIFORNIA SOLAR INITIATIVE CUSTOMER CHARGE
WHEREAS District staff has prepared a budget for District operation for 2008; and
WHEREAS, on November 7 and 19, 2007 a public hearing was held to receive comments
from the public concerning the 2008 budget; and
WHEREAS, the budget for 2008 recommends that electric retail rates be increased by 7%
for the year 2008 and 3% for the year 2009 to cover increases in the costs of providing
District services; and
WHEREAS, on November 7 and 19, 2007 a public hearing was held to receive public
comments on proposed electric rate increase;
WHEREAS, the state of California has enacted The California Solar Initiative, through the
signing of SB-1; and
WHEREAS, the California Solar Initiative requires that electric utility companies must raise,
through customer charges, a specified amount of money to fund the required solar rebate
program; and
WHEREAS, the Truckee Donner Public Utility District must raise $177,400 annually for the
solar rebate program.
NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner
Public Utility District as follows:
Section 1. Effective January 1, 2008, the following monthly electric rates shall be effective.
Domestic Electric Rates: Permanent Residents
Rate P 10
Customer Charge: per month $6.56
Energy Charge per kilowatt-hour $0.128
Domestic Electric Rates: Non-Permanent Residents
Rate S 10
Customer Charge: per month $6.56
Energy Charge per kilowatt-hour $0.147
Small Commercial Rates
Rate 15
Customer Charge: per month $12.72
Energy Charge per kilowatt-hour $0.154
Ordinance 2007-03 1
Medium Commercial Rates
Rate 20
Customer Charge: per month $127.00
Energy Charge per kilowatt-hour $0.091
Demand Charge per kilowatt of demand $12.49
Large Commercial Rates
Rate 25
Customer Charge: per month $557.06
Energy Charge per kilowatt-hour $0.094
Demand Charge per kilowatt of demand $11.93
Section 2. Effective January 1, 2009, the following monthly electric rates shall be effective.
Domestic Electric Rates: Permanent Residents
Rate P 10
Customer Charge: per month $6.76
Energy Charge per kilowatt-hour $0.132
Domestic Electric Rates: Non-Permanent Residents
Rate S 10
Customer Charge: per month $6.76
Energy Charge per kilowatt-hour $0.151
Small Commercial Rates
Rate 15
Customer Charge: per month $13.10
Energy Charge per kilowatt-hour $0.159
Medium Commercial Rates
Rate 20
Customer Charge: per month $130.81
Energy Charge per kilowatt-hour $0.094
Demand Charge per kilowatt of demand $12.86
Large Commercial Rates
Rate 25
Customer Charge: per month $573.78
Energy Charge per kilowatt-hour $0.097
Demand Charge per kilowatt of demand $12.29
Section 3: Effective January 1, 2008, the following monthly solar initiative customer charge
shall be effective.
Domestic (both permanent and non- permanent) $0.60
Small Commercial $5.00
Medium Commercial $10.00
Large Commercial $15.00
Ordinance 2007-03 2
Section 4. If no protest is made pursuant to Public Utilities Code Section 16078, then this
ordinance shall be effective January 1, 2008 and January 1, 2009.
Section 5. The Clerk of the District shall immediately cause a copy of this ordinance to be
published in a newspaper of general circulation and posted in three places within the District.
Section 6. The provisions of other Ordinances shall remain if effect to the extent that they do
not conflict with this ordinance.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility
District at a meeting duly called and held within the District on the nineteenth day of
November 2007 by the following roll call vote:
AYES: Directors Aguera, Hemig, Sutton and Taylor
NOES: Director Thomason
ABSTAIN: None
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Tim F. Taylor, PrTSident/of the Board
ATTEST:
John f4r-ich, Cler of tlae card
Ordinance 2007-03 3
ATTACHMENT 2
PROPOSED ELECTRIC RATE STUDY CALENDAR:
February 3, 2010 Workshop to discuss how the Board wishes to proceed with an
Electric Rate Study
February, 2010 Seek proposals from consultants to perform an Electric Rate Study
March, 2010 Board of Directors awards a contract to a consulting firm to perform
the Electric Rate Study
April, 2010 Workshop with the Board and consultant to discuss electric rate
structure alternatives
April, 2010 Public outreach of Electric Rate Study
May, 2010 Workshop to discuss electric rate structure alternatives
June, 2010 Discussion of the preliminary Electric Rate Study report
July, 2010 Consideration of the final Electric Rate Study report and proposed
electric rates
July, 2010 Public hearing on proposed electric rates
July, 2010 Consideration of an Ordinance to adopt electric rates