HomeMy WebLinkAboutA012 - Council Action Form, September 21, 1982 COUNCIL ACTION FORM
No. 9-21-82
SUBJECT: Sundstrand Contract for Power - Establishing a rate classification
BACKGROUND: On June 15, 1982 an ordinance to establish the electrical
rates for Sundstrand was adopted effective July 1, 1982
through September 30, 1982. During this 90 day interval
of time between July and October, two members of the
Electric Utility Operations Review and Advisory Board,
City staff, and Sundstrand representatives met on
numerous occasions in an effort to reach agreement on an
appropriate rate. Guidelines for City Staff were:
1. Sundstrand's electric utility bill for energy, fuel
adjustment and demand charges should be comparable to that
which it would have under the filed tariffs of other utili-
ties in the Ames area.
2. Sundstrand's electric utility bill in Ames should be
comparable to that which would be paid if the Ames plant
were located at the site of other Sundstrand plants being
served by fossil fueled utilities.
Attached is an annual cost comparison that provided some
basis for increased charges in the proposed rate ordinance.
The proposed ordinance provides an annual revenue increase
of 15.19% based on 1981 Sundstrand energy and demand use for
that year.
ALTERNATIVES: On October 1, 1982 put Sundstrand on the Large Power rate
that is in existance now; this would represent an annual
revenue increase of 30.38% based on 1981 Sundstrand energy
and demand use for that year.
CITY MANAGER'S RECOMMENDATION: Adopt the Ordinance to establish a new
electrical utility rate classification for manufacturing/
processing type industrial customers with high demand for
and consumption of electrical energy by repealing subsection
28.5.1 as it exists heretofore and enacting a new subsection
28.5.1; and establishinn effective dates.
The Sundstrand representatives have reviewed this proposed
Ordinance and have agreed to the conditions.