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Home My WebLink AboutORD 2006-04 - Board I 6e,. TRUCKEE DONNER LIF Public Utility District Ordinance No. 2006 - 04 AMENDING THE ELECTRIC RETAIL RATES WHEREAS District staff has prepared a budget for District operation for 2006; and WHEREAS, on January 4, 2006 a public hearing was held to receive comments from the public concerning the 2006 budget; and WHEREAS the budget for 2006 recommends that electric retail rates be increased to cover increases in the costs of providing District services; and WHEREAS on January4,2006 a public hearing was held to receive public comments on proposed rate increases; NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: Section 1. Effective 30 days from the date this ordinance is adopted the following monthly electric rates shall be effective. Domestic Electric Rates: Permanent Residents Rate P10 Customer Charge: per month $6.13 Energy Charge per kilowatt-hour $0.120 Domestic Electric Rates: Non-Permanent Residents Rate S 10 Customer Charge: per month $6.13 Energy Charge per kilowatt-hour $0.137 Small Commercial Rates Rate 15 Customer Charge: per month $11.89 Energy Charge per kilowatt-hour $0.144 Medium Commercial Rates Rate 20 Customer Charge: per month $118.69 Energy Charge per kilowatt-hour $0.0852 Demand Charge per kilowatt of demand $11.67 Ordinance 2006-04 1 Large Commercial Rates Rate 25 Customer Charge: per month $520.62 Energy Charge per kilowatt-hour $0.0877 Demand Charge per kilowatt of demand $11.15 Section 2. If no protest is made pursuant to Public Utilities Code Section 16078, then this ordinance shall be effective thirty days after adoption by the board of directors of the District. Section 3. 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 4. 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 first day of February 2006 by the following roll call vote: AYES: Directors Aguera, Hemig, Sutton, Taylor and Thomason NOES: None ABSENT: None TRUCKEE DON PUBLIC UTI Y DISTRICT By J. mig, Pr sident of t e oard ATTEST:); Aaz,:�-A Peter L. Holzmeister, dierk of the Board Ordinance 2006-04 2 y� �� w.r �rrr.ii ....� �.� Yr+� �+-� 'rw+�w�+ ....ram ..r..�l► V......i '��► ir....i Yr..� �•� v�ww� ft.-O-a wW"w . ELECTRIC OPERATIONS INTRODUCTION The electric budget projects expenditures of $19,067,924 and revenues of $19,791,700, resulting in $723,776 being available for capital investment This budget recommends that the monthly electric rate be increased by three percent to cover operations and an additional two percent to build a rate stabilization fund that will be needed in 2008 when a new and more costly wholesale power contract will be needed. The budget also recommends that connection and facility fees r be increased five percent F Generally speaking, the District's electric system is in very good financial health. We have been enjoying a wholesale power contract that is priced significantly below the market for the past few years. That power supply contract expires at the end of 2007 and the replacement contract is anticipated to be more costly. This budget proposes that we begin to build a reserve fund to help deal with increased power costs. In 2008, the year of a new power supply contract, we will k have five years left to pay on the debt incurred to buy out the old expensive contract We need to manage ourselves through the five year period beginning in 2008 after which we anticipate healthy electric rate relief. We now turn our attention to growth and development in our service area and how best to respond organizationally and financially. Organizationally, the budget for 2006 recommends that we continue planning for construction of a new corporation yard. We desperately need additional space to store vehicles and equipment. Organizationally we recognize the heavy burden that housing costs impose on our employees. We will work with the Workforce Housing Association of Truckee Tahoe to find solutions to this problem. The budget proposes that we replace an old telephone system that is becoming difficult to repair and lacks technological features that new systems have. These new features will help improve staff productivity. There are two vehicles that need to be replaced because they are old and becoming maintenance problems. The computer that runs the electric system SCADA is old and needs to be updated. t i f I 5 .. .....,. -.. .. ... !^TN;�R wrr,..tia � xr..vN ;y.wwn a..r_..p� r^w.� wv..vq v .+n-vw. .•.-+...-., ✓n �• +w..,..ry SUMMARY OF ELECTRIC REVENUES AND EXPENSES BUDGET 9 MONTHS ENDED BUDGET RECAP REVENUES LESS EXPENSES 2005 SEPTE/tBE 2006 2006 ELECTRIC REVENUES i18,062,083 S13,637,271 i19,791,700 LESS EXPENSES.- Board of Directors $61,000 $45,144 $05,175 GWWNI Manager 440,261 289,600 555,390 Administrative Services 1,470,428 901,162 1,476,535 Planning Services 136,504 82,910 115,766 Support servlc" 333,M 380,852 449,403 Electric Operations 2,152,967 1,380,987 2,362,420 Po*W Supply 435,861 3161648 549,384 Purchased Power 8,385,157 6,059,157 9,026,888 Debt Savice(Appendix VIM) 3,735,817 2,80,293 3,806,290 Transfsr to Reserve-2003 COP# 300,000 225,000 300,000 Transfer to Electric Rafe Stsbltlretion Fund 0 0 360,678 TOTAL EXPENSES i17,471,793 i12,856,759 i10,W,924 NET AVAILABLE FOR CAPITAL i5901290 i9B0,512 $723,770 7 o ) 1 Public Utility District PROPOSED ELECTRIC R E INCREASES Five percent increase in retail rates Additional two percent for rate stabilization fund Each 1% increase raises $180,339 � Seven percent raises $1 ,262,373 Atypical residential electric customer will see an increase of $6.40 per month The monthly bill would go from $91 .34 to $97.74 (Based on usage of 750 kilowatt hours per month) Residential rate structure Current Proposed Customer charge 5.84 6.25 KWH charge 0.1140 0.1220 Proposed five percent increase in electric connection charge and electric facility fee 6 P Public Utility District ��PROPOSED WATER RATE INCREASES Five percent increase in retail rates Additional two percent for capital reserve fund jEach 1 % increase raises $77,052 Seven percent raises $539,364 A typical residential water customer will see an increase of $3.58 per month The monthly bill would go from $51 .18 to $54.76 (Based on a customer in zone 5) Proposed five percent increase in water connection charge and 7 electric facility fee