HomeMy WebLinkAbout8 Electric Rate Ord. Agenda Item # '
M W 01
Memorandum
To: Board of Directors
From: Peter L. Holzmeister
Date: December 28, 2001
Subject: Electric rate ordinance
We have been discussing the draft budget for 2002. The Board participated in a workshop at
which we discussed the programs planned and the funding needs. Our challenge in the electric
utility has been the cost of wholesale power. Steve Hollabaugh described two options for
increasing our electric rates. One option would increase the kilowatt-hour charge by 0.5 cents,
the other increases that rate by 0.7 cents. Attached is an analysis of those options compared to
our current rates. Steve will describe the status of the wholesale market at the meeting on the
2nd and will describe some contract restructuring options he has been looking at.
It is never easy to increase electric rates. However, our rates now are low and our customers
know the problem we are facing. I think they are ready to accept a rate increase if we can show
them we have a reasonable long-term outlook. An increase of 0.7 cents will position us for the
future far better than an increase of 0.5 cents.
RECOMMENDATION: I recommend that the Board adopt the ordinance containing Option B, an
increase of 0.7 cents per kilowatt-hour.
TRUCKEE DONNE.
Public Utility� District
Ordinance No. 2002-01
Changing retail electric rates
WHEREAS the District distributes electricity to its customers; and
WHEREAS the District has entered into a contract for the purchase of wholesale electric power from Idacorp
Inc; and
WHEREAS the cost of wholesale power has increased significantly due to structural problems that persist in
the electric supply industry nationwide; and
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 the District's retail 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, the rate provisions all other ordinances and/or
resolutions which are inconsistent with the provisions of this ordinance are hereby repealed.
• An increase of 0.5 cents per Kwh will begin February 2002 as shown in "Option A" attached.
• The provisions of all other Ordinances shall remain if effect to the extent that they do not conflict with this
ordinance.
• 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 2nd day of January 2002, by the following roll
call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Nelson Van Gundy, President of the Board
ATTEST:
Peter L. Holzmeister, Clerk of the Board
Option A, An increase of 0.5 cents per Kwh will begin February 2002: The District would increase
electric rates 0.5 cents per Kwh beginning February 2002. The typical residential monthly electric bill for a
customer using 650 kWh would be $67.46 starting in February 2002. The proposed rates would be:
February 2002
Domestic Electric Rates: Permanent Residents
Rate P10
Customer Charge: per month $4.00
Energy Charge per kilowatt-hour $0.09763
Domestic Electric Rates: Non-Permanent Residents
Rate S10
Customer Charge: per month $4.00
Energy Charge per kilowatt-hour $0.11148
Small Commercial Rates
Rate 15
Customer Charge: per month $8.00
Energy Charge per kilowatt-hour $0.11773
Medium Commercial Rates
Rate 20
Customer Charge: per month $80.00
Energy Charge per kilowatt-hour $0.06976
Demand Charge per kilowatt of demand $9.77
Large Commercial Rates
Rate 25
Customer Charge: per month $350.00
Energy Charge per kilowatt-hour $0,07091
Demand Charge per kilowatt of demand $9.27
T r III I� III ��
Publict , District
Ordinance No. 2002-01
Changing retail electric rates
WHEREAS the District distributes electricity to its customers; and
WHEREAS the District has entered into a contract for the purchase of wholesale electric power from Idacorp
Inc; and
WHEREAS the cost of wholesale power has increased significantly due to structural problems that persist in
the electric supply industry nationwide; and
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 the District's retail 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, the rate provisions of all other ordinances
and/or resolutions which are inconsistent with the provisions of this ordinance are hereby repealed.
• An increase of 0.7 cents per Kwh will begin February 2002 as shown in "Option B" attached.
• The provisions of other Ordinances shall remain if effect to the extent that they do not conflict with this
ordinance.
• 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 2nd day of January 2002, by the following roll
call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Nelson Van Gundy, President of the Board
ATTEST:
Peter L. Holzmeister, Clerk of the Board
Option B, An increase of 0.7 cents per Kwh will begin February 2002: The District would increase
electric rates 0.7 cents per Kwh beginning February 2002. The typical residential monthly electric bill for a
customer using 650 kWh would be $68.76 starting in February 2002. The proposed rates would be:
February 2002
Domestic Electric Rates: Permanent Residents
Rate P10
Customer Charge: per month $4.00
Energy Charge per kilowatt-hour $0.09963
Domestic Electric Rates: Non-Permanent Residents
Rate S10
Customer Charge: per month $4.00
Energy Charge per kilowatt-hour $0.11348
Small Commercial Rates
Rate 15
Customer Charge: per month $8.00
Energy Charge per kilowatt-hour $0.11973
Medium Commercial Rates
Rate 20
Customer Charge: per month $80.00
Energy Charge per kilowatt-hour $0.07176
Demand Charge per kilowatt of demand $9.77
Large Commercial Rates
Rate 25
Customer Charge: per month $350.00
Energy Charge per kilowatt-hour $0.07291
Demand Charge per kilowatt of demand $9.27