HomeMy WebLinkAboutA001 - Council Action Form dated May 28, 2013 ITEM #: 36
DATE: 5-28-13
COUNCIL ACTION FORM
SUBJECT: ELECTRIC UTILITY RATE STRUCTURE CHANGES FOR STREET AND
SECURITY LIGHTING
BACKGROUND:
Following City Council approval, the Electric Services department implemented a change in
the City's electric rates on January 1, 2013. The new rates are the result of an extensive
cost-of-service study completed by SAIC which provided alternative rate structures and
analysis on customers. As part of the rate update, the Energy Cost Adjustment (ECA)was
added to the base energy cost to"zero out"that cost component. No new rate update was
applied to street and security lighting because the revenue generated under the old
rate was sufficient to meet the revenue requirement for this specific customer class.
However, the old rate does contain an ECA cost component. When the ECA was
reset from approximately$0.025 per kilowatt-hour to a credit of approximately$0.005
per kilowatt hour, the revenues decreased by close to 20%, or$10,000 per month for
our street lights. The lack of update has resulted in a loss of revenue which if not
corrected will negatively affect the utility's ability to adequately collect revenues to
cover street light costs.
Attached is a draft Ordinance to amend the City Municipal Code, Section 28 dealing
with Street and Security Lighting rates. This rate adjustment increases the monthly light
charge to offset the change in the ECA. Staff would like to implement these rates on
bills mailed on or after July 1, 2013. This is the first of three readings of the draft
ordinance.
ALTERNATIVES:
1. Approve the proposed new rate changes to the street and security lighting
ordinance.
2. Refer this electric utility rate proposal back to staff with direction to develop an
alternative rate structure. Depending on the complexity of the desired rate
structure, this alternative would likely delay implementation of any new rate.
3. Do not approve a new rate structure change.
MANAGER'S RECOMMENDED ACTION:
The proposed changes to the Street and Security Lighting ordinance will bring it into sync
with the rest of the electric rate by rolling in the old Energy Cost Adjustment number as was
done with the other rates. This change also enables simplification of billing calculations.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby approving the attached Street and Security Lighting rate
changes.
ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY
OF AMES,IOWA,BY ENACTING A NEW SECTION THEREOF, FOR
THE PURPOSE OF REVENUE NEUTRAL STREET AND SECURITY
LIGHT RATES ; REPEALING ANY AND ALL ORDINANCES OR
PARTS OF ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH
CONFLICT;AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED,by the City Council for the City of Ames,Iowa,that:
Section One. The Municipal Code of the City of Ames,Iowa shall be and the same is hereby amended by
enacting a new Section as follows:
"Sec.28.107. STREET AND SECURITY LIGHTING RATE.
(1) Availability. Lighting energy and service shall be available for street lighting and for security
lighting where it is impossible or impractical to meter the electrical energy through the customer's normal metering
location.
(2) Rate per Billing Period.For each monthly billing period the lighting customer:
(a) shall be charged for service per lamp:
(i) for bills mailed on or after July 1,2013:
Monthly Monthly Consumption
Lamp
Charge (kWh per Lama)
1000 Watt-Mercury Vapor 35.95 383
700 Watt-Mercury Vapor 25.85 268
400 Watt-Mercury Vapor 15.75 153
400 Watt-Mercury Vapor-Ornamental 18.10 153
250 Watt-Mercury Vapor 10.90 96
250 Watt-Mercury Vapor-Ornamental 14.80 96
175 Watt-Mercury Vapor 8.60 67
175 Watt-Mercury Vapor-Ornamental 10.90 67
400 Watt-High Pressure Sodium 16.65 153
400 Watt-High Pressure Sodium-Ornamental 18.10 153
360 Watt-High Pressure Sodium 15.55 138
360 Watt-High Pressure Sodium-Ornamental 17.05 138
250 Watt-High Pressure Sodium 11.65 96
250 Watt-High Pressure Sodium-Ornamental 15.25 96
200 Watt-High Pressure Sodium 10.75 77
200 Watt-High Pressure Sodium-Ornamental 14.65 77
150 Watt-High Pressure Sodium 9.10 60
150 Watt-High Pressure Sodium-Ornamental 11.45 60
100 Watt-High Pressure Sodium 7.05 38
100 Watt-High Pressure Sodium-Ornamental 9.15 38
70 Watt-High Pressure Sodium 5.95 27
70 Watt-High Pressure Sodium-Ornamental 8.15 27
Ornamental fixtures are units on poles other than wood.
(Ord. No. 2975, Sec. 1, 5-19-87; Ord. No. 2977, Sec. 1, 6-9-77; Ord. No. 3885, 07-25-06;Ord. No. 3955,05-27-08;
Ord. No. 3987, 05-12-09)
(b) and all lamps shall be charged any applicable energy cost adjustment, per Sec. 28.102,
based on the stated average monthly kWh consumption per lamp.
(Ord. No. 4130, 11-27-12)
(3) Conditions. The street and security lighting rate will be subject to 28.101(1) and (5) and the
following specific conditions:
(a) new service agreements shall be 3 years minimum
(b) new installation for "security lights" will only be made with 175, 400, or 1000 watt
mercury vapor or with 70, 100, 150, 200, or 250 watt sodium fixtures on existing poles with a maximum of a 150
foot span of wire.
(c) Customers desiring a change from mercury to sodium fixtures after less than 3 years
under an existing service agreement will be charged for conversion costs.
(d) Flood lights,where available from utility stock, shall have an additional
monthly charge of $0.65 per lamp.
(Ord. No. 3885, 07-25-06,Ord. No. 3955, 05-27-08; Ord. No. 3987, 05-12-09)
(e) No new 360 watt sodium fixtures will be installed.
(Ord. No. 2921, Sec. 6, 4-9-85; Ord. No. 3199, Sec. 1, 9-24-92)
(f) Contract for energy only charges will be billed at a rate of$0.110 per kilowatt
hour plus the applicable energy cost adjustment.
(Ord. No. 3955, 05-27-08;Ord. No. 3987, 05-12-09)
Section Two. All ordinances, or parts of ordinances, in conflict herewith are hereby repealed to the extent
of such conflict,if any.
Section Three. This ordinance shall be in full force and effect from and after its passage and publication as
required by law.
Passed this day of
Diane R.Voss,City Clerk Ann H. Campbell,Mayor