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Home My WebLink About2001-07-11 Agenda Packet - Board (13) DONNER DistrictPublic Utility 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. TDPl1D Power Supply Costs $1MWhr: 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_wentto 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°lo 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: 0 Page 1 TDPUD Power Supply Costs $/MWhr 90.00 0 °o 0 0 0 0 0 80.00 - � � 70.00 - ^r n 60.00 50.00 - • 0 � ` l $/MWhr 40.00 `. z 30.00 s . t.. h' 20.00 10.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 O Energy Fixed Price 26.75 37.42 62.10 74.25 74.25 74.25 74.25 74.25 74.25 74.25 NCPA Scheduling 0.22 0.22 0.22 0.19 0.19 0.18 0.17 0.17 0.16 0.16 ■Demand 3.13 3.13 3.12 3.13 3.13 3.13 3.13 3.13 3.13 3.13 ®Transmission 5.25 5.25 5.25 5.00 5.00 5.00 5.00 5.00 5.00 500 ®Transmission ■Demand ❑NCPAScheduling El Energy FixedPrice� TDPUD Power Supply Costs $ $16,000,000 � 4 a � a �r $14,000,000 ` , F% $12,000,000' f $10,000,000 � $/Yr $8,000,000- 7 >„ e ' $6,000,000 Ila ; $4,000,000 � C M $2,000,000 ; { �s $o 2000 2001 2002 2003 2004 2005 2006 2007 2006 2009 [IIErgyRxedPrice $3,604,418 $5042.143 $8,615,973 $11,573,532 $12,036,433 $12,518,012 $13,018,270 $13,407,832 $13,808,195 $14,222,988 PA Scheduling $30,000 $30,000 $30,000 $30,000 $30,000 $301000 $301000 $30,000 $30,000 $30,000 mand $421,500 $421,500 $433,500 $487.881 $507,394 $527,695 $548,784 $565,206 $582,083 $599,568 nsmiss'0n $707,496 $707,496 $707,496 $780,014 $810,534 $842.964 $876,651 $902,884 $929,845 $957,777 ®Transmission 0 Demand 0 NCPA Scheduling M Energy Fixed Price_ 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 $0M990 $0.05216 $0.06476 Demand Charge per kilowatt of demand $9.77 $9.77 $9.77 Large Commercial Rates Rate25 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°k 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 1310 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 0 Page 2 Customer Charge: per month $8a00 $80.00 Energy Charge per kilowatt-hour $0,03990 $0.06476 Demand Charge per kilowatt of demand $9.77 $9.77 Lame 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. 0 Page 3 TRUCKEE DONNER Public Utility District Wfinance No. 2001 -03 Changing electric rates WHEREAS, as a result of increased costs for the purchase of wholesale power, the Board of Directors of the Truckee Donner Public Utility District has realized that it is essential to increase its electric rates; NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: • Effective 30 days from the date this ordinance is adopted,this ordinance,the rate provisions of Ordinance No. 8607 and all other portions of prior ordinances and/or resolutions which are inconsistent with the provisions of this ordinance are hereby repealed, • That effective with the first billing cycle in August 2001, the following rates will be placed into effect: Insert rates as shown in Option A or Option B from Stephen Hollabaugh's staff report of July 6, 2001 • All other provisions of Ordinances 8119, 8120 and 8121 shall remain if effect. • The Clerk of the Board is hereby directed to post and publish this ordinance in accordance with state law. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a regular meeting thereof duly called and held within said District on the 11 m day of July 2001, by the following roll call vote: AYES: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By James A. Maass, President of the Board ATTEST: Peter L. Holzmeister, Clerk of the Board