HomeMy WebLinkAbout~Master - Optional Time-of-Use (TOU) Industrial Electric Rate and Charges ORDINANCE NO. 4213
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF
AMES,IOWA,BY ENACTING A NEW SECTION 28.108 THEREOF,FOR
THE PURPOSE OF OPTIONAL TIME-OF-USE INDUSTRIAL ELECTRIC
RATE AND CHARGES; 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 28.108 as follows:
"Sec.28.108.OPTIONAL TIME-OF-USE(TOU)INDUSTRIAL ELECTRIC RATE AND CHARGES.
(1) Availability: The Industrial Time-of-Use (TOU) Electric Rate shall be voluntary for any non-
residential customer whose metered demand at any time exceeds 2,500 kVA. Service under this rate schedule is billed
on a Time-of-Use(TOU)basis as provided under these rules established by Electric Services. The Optional Time-of-Use
Industrial Electric Rate is an alternative to, and at the customer's discretion replaces, Section 28.107(1)Availability.
Customers opting for inclusion on the Optional Time-of-Use(TOU)Industrial Electric Rate are required to remain on
the rate for a period no less than twelve consecutive calendar months.
(Ord. No. 4130, 11-27-12)
(2) Intent:Electric Services is a summer peaking electric utility,and as such,the cost to deliver electricity
is generally most expensive and detrimental to generation and distribution systems during hours of greatest demand. The
utility,and the community of Ames,benefit when large electric users are encouraged to reduce their demand during these
tirnes. A Time-of-Use(TOU) Rate is a pricing strategy whereby Electric Services may vary the price of electricity
depending on the time-of-day it is delivered to the customer. Prices encourage the customer to use electricity during
times of low demand and discourage use during the peak times of the day. Time-of-Use(TOU)pricing allows Electric
Services to better control costs and mitigate any negative system impacts related to times of peak demand.
(3) Definitions:
(a) Time-of-Use(TOU):A specifically identifiable period oftime during a twenty-four hour day
used for establishing a pricing strategy aimed at reducing the overall demand for electricity.
(b) Peak: The greatest fifteen(15)minute demand for electricity measured during the current
billing period.
(c) Billing Demand: Highest metered kilovolt-amp (kVA) electric use, in a billing period
measured between the hours of 3pm and 7 pm Monday through Thursday,over the billing period. If,however,a higher
kVA electric use is set during a required Interruption(see Section 28.108(5)),this will result in a Billing Demand set
outside of the Monday—Thursday window.
(d) Holidays: Federally observed Holidays.
(e) On-Peak Energy: Electricity, measured in kilowatt hours, used Monday through Friday
between the hours of 8:00 am and 8:00 pm.
(0 Off-Peak Base Energy:Electricity,measured in kilowatt hours,used Monday through Friday
between the hours of 8:00 pm and 8:00 am, and all day Saturday,Sunday and Holidays,up to the established monthly
Billing Demand.
(g) Off-Peak Time-of-Use Energy: Electricity, measured in kilowatt hours, used Monday
through Friday between the hours of 8:00 pm and 8:00 am, and all day Saturday, Sundayand Holidays, in excess of
the established monthly Billing Demand
(h) Summer period: Bills mailed on or between July 1 and October 31.
(i) Winter period: Bills mailed on or between November 1 and June 30.
0) Energy Cost Adjustment(ECA):The Energy Cost Adjustment(ECA)is abilling component
that allows the utility to reflect fluctuations in the cost of fuel for the power plant without frequently changing the
standard energy charges.The ECA is simply the difference between actual fuel costs for the past twelve months and
the base fuel cost added to every metered kilowatt-hour(kWh).
(4) Rate Per Billing Period:For each monthly billing period,an Industrial customer participating in the
Optional Time-of-Use(TOU)Electric Rate shall be charged:
(a) the Service Charge of two hundred fifty dollars($250.00);
(b) the Demand Charge and the Energy Charge for the energy consumption during the billing
period as follows:
(i) for bills mailed on or between July 1 and October 31 (summer period):
1) the Billing Demand times the billing rate of$10.00 per kVA, and
2) the On Peak,Energy times the billing rate of$0.0619 per kWh,
3) the Off Peak,Base Energy times the billing rate of$0.0619 per kWh,
4) the Off Peak,Time-of-Use Energy times the billing rate of$0.04 per kWh,
(ii) for On-Peak bills mailed on or between November 1 and June 30(winter period):
1) the Billing Demand times the billing rate of$7.50 per kVA, and
2) the On Peak,Energy times the billing rate of$0.0619 per kWh,
3) the Off Peak,Base Energy times the billing rate of$0.0619 per kWh,
4) the Off Peak,Time-of-Use Energy times the billing rate of$0.04 per kWh,
(Ord. No. 3955, 05-27-08; Ord 3987, 05-12-09; Ord. No. 4130, 11-27-12)
(c) the applicable Energy Cost Adjustment(ECA)per Sec. 28.102, and
(Ord. No. 4130, 11-27-12)
(d) any applicable bill impacts of Section 28.107(3)Billing Demand, (4)Minimum Bill, (6)
Service Facilities, (7)Excess Facilities,(8)Primary Service, and(9)Conditions.
(5) Interruptible Option:For each summer monthly billing period,an Industrial customer participating
in the Optional Time-of-Use(TOU)Electric Rate may, at Electric Services' discretion,
(a) on at least a 6 hournotice,be required to reduce demand to that equal to,the previous Billing
Demand two months prior at any time Monday at 8:00 am thorough Saturday before 8:00 pm,
(i) the actual demand during the interruption period will be used as the Billing Demand
for the month if it is higher than the highest metered kilovolt-amp(kVA) electric use, in a billing month measured
between the hours of 3pm and 7 pm Monday through Thursday,over the billing period.
(b) the duration of the interruption will be up to 4 hours in length
(c) maximum number of occurrences per month (3)
(6) Noncompliance Penalty: If at any time during participation in the Optional Time-of-Use (TOU)
Electric Rate the customer's On-Peak demand exceeds One hundred thirty(130)percent of their ninety(90)day rolling
average peak,the customer will be charged a penalty of$5 per kVA on the current billing period's billing demand.
(7) This ordinance shall remain in effect until September 1, 2016, on which date it is repealed in its
entirety."
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 28`'day of April,2015.
(� 2 1;,t, A,a
Diane R. Voss, City Clerk nn H. Campbell,Mayor IF