HomeMy WebLinkAboutA001 - Council Action Form dated May 23, 2017 ITEM # 51
DATE: 05-23-17
COUNCIL ACTION FORM
SUBJECT: ELECTRIC UTILITY RATE CHANGES
BACKGROUND:
As discussed during the FY 2017/18 budget process, the City of Ames Electric
Services budget included a 4%electric rate increase to take effect with bills issued on
or after July 1, 2017. The revenue resulting from this rate increase is needed to fund
plant maintenance, capital improvement projects, and operating costs while
maintaining an adequate fund balance for the utility. The last electric rate increase
approved by the City Council was 5% on July 1, 2009.
The proposed rate change is an across-the-board increase with no change to
our current rate structure for all customer classes. It is not anticipated that any
additional electric rate increases will be needed for at least the next 5 years
following approval of this change.
Attached are sample bills for the different customer classes demonstrating the impact
this rate increase will have. It should be noted that the bills also include a proposed
increase in Storm Water rates to give a complete picture of the impact to a customer's
bill.
In addition to changes to the electric rates in the Municipal Code, staff is also
recommending changes to Section 28.107 Street and Security Lighting Rate and
28.108 Optional Time-of-Use (TOU) Industrial Electric Rate and Charges.
PROPOSED CHANGES TO SECTION 28.107:
The changes to this section include:
• Removal of rates for lights which are no longer in inventory
• Increasing the rates for existing street and security lights by 4%
• Addition of LED light rates for street and security lights, which are lower than their
non-LED equivalent
• Security light changes requiring an LED standard.
Section 28.107 has also been expanded to include incidental, unmetered energy usage
for customer-owned lighting, signs and other constant-wattage electric loads.
PROPOSED CHANGES TO SECTION 28.108
Section 28.108 began as a pilot program for the City's Industrial customers to provide
incentives to use less energy during periods of peak electric consumption. This program
works well for both the participating customers and the City to reduce the likelihood of
new electric peaks from occurring. The recommended change to this section is to
transition this program from a pilot option to a permanent option within the rate
ordinance. In the future, staff will be developing other pilot programs with the City's
largest energy users to create win-win opportunities.
Attached is a copy of the blue-lined edited ordinance section reflecting the changes,
as well as a copy of the final ordinance reflecting the changes from the Legal
Department.
ALTERNATIVES:
1. Approve the proposed changes to the Electric Utility Rate ordinance to
increase overall rates for all classes of customers of the Electric Utility by 4%
for bills issued on or after July 1, 2017, and adopt the changes to the street
and security lighting section which removes discontinued lights, creates
rates for incidental unmetered energy, includes lower cost LED lights, and
updates the rate for other existing lights.
2. Refer the Electric Utility Rate ordinance back to staff with direction to
develop an alternative rate structure. This alternative would likely delay
implementation of a rate increase, and could result in a larger rate increase or
cause us to drop below the Electric Utility fund balance target unless other
changes are made to reduce budget expenditures.
3. Do not approve a rate increase at this time. This alternative would require
extensive changes to the Electric Utility budget since a 4% revenue increase
was included in the adopted budget.
MANAGER'S RECOMMENDED ACTION:
The Electric Utility will embark on major maintenance projects that will help secure the
future power supply and maintain the infrastructure for our customers for the next 20
years. A rate increase is warranted because the current rate structure will not supply
the revenue necessary to adequately fund future proposed projects, cover the bonds
payments sold for the plant conversion, and maintain the $10,000,000 reserve fund
required by Council.
Therefore, it is the recommendation of the City Manager that the City Council
adopt Alternative #1 and approve a 4% rate increase for all customer classes
effective with bills issued on or after July 1, 2017 and adopt the changes to the
street and security lighting section which removes discontinued lights, includes
lower cost LED lighting, and updates the cost for other existing lights.
City of Ames Utilities Rate Samples
Rate Increases
Assumptions for
Electric: 4.0%
Water: 0.0% ECA of 0.0047 per Kwh meter size,kW,
Sewer: 0.0% PF,&RW Tier
Storm Water Drainage 0.0% $increase nota% crease,
MINIMUM USE RESIDENTIAL CUSTOMERS
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
100 kWh and 100 cf $19.66 $4.70 $13.13 $13.45 $50.94 5/8x3/4"
Electric ECA $0.47 $0.47 Tier 1
Totals $20.13 $4.70 $13.13 $13.45 $51.41
Increase Due to Rate Change $0.79 $0.25 $0.00 $0.00 $1.04
Totals $20.92 $4.95 $13.13 $13.45 $52.45
% Impact on Total Bill 2.02%
MEDIAN USE RESIDENTIAL CUSTOMERS
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
600 kWh and 600 cf $77.96 $4.70 $23.88 $27.15 $133.69 5/8x3/4"
Electric ECA $2.82 $2.82 Tier 1
Totals $80.78 $4.70 $23.88 $27.15 $136.51
Increase Due to Rate Change $3.12 $0.25 $0.00 $0.00 $3.37
Totals $83.90 $4.95 $23.88 $27.15 $139.88
% Impact on Total Bill 2.47%
LARGE RESIDENTIAL CUSTOMERS
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
1,000 kWh and 1,000 cf $124.60 $4.70 $32.48 $38.11 $199.89 5/8x3/4"
Electric ECA $4.70 $4.70
Totals $129.30 $4.70 $32.48 $38.11 $204.59
Tier 1
Increase Due to Rate Change $4.98 $0.25 $0.00 $0.00 $5.23
Totals $134.28 $4.95 $32.48 $38.11 $209.82
% Impact on Total Bill 2.56%
SMALL COMMERCIAL(GP)
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
2,000 kWh and 600 cf $244.60 $4.70 $27.84 $27.15 $304.29 5/8x3/4"
Electric ECA $9.40 $9.40 Tier 1
Totals $254.00 $4.70 $27.84 $27.15 $313.69
Increase Due to Rate Change $9.76 $0.25 $0.00 $0.00 $10.03
Totals $263.78 $4.95 $27.84 $27.15 $323.72
% Impact on Total Bill 3.20%
SMALL COMMERCIAL(GP)
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
5,000 kWh and 1,000 cf $589.00 $4.70 $39.08 $38.11 $670.89 5/8x3/4"
Electric ECA $23.50 $23.50 Tier 1
Totals $612.50 $4.70 $39.08 $38.11 $694.39
Increase Due to Rate Change $23.56 $0.25 $0.00 $0.00 $23.81
Totals $636.06 $4.95 $39.08 $38.11 $718.20
% Impact on Total Bill 3.43%
SMALL COMMERCIAL(GP)
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
10,000 kWh and 3,000 cf $1,163.00 $9.40 $106.26 $92.91 $1.371.57 3/4"
Electric ECA $47.00 $47.00 Tier 2
Totals $1,210.00 $9.40 $106.26 $92.91 $1,418.57
Increase Due to Rate Change $46.52 $0.50 $0.00 $0.00 $47.02
Totals $1,256.52 $9.90 $106.26 $92.91 $1,465.59
% Impact on Total Bill 3.31%
COMMERCIAL(LP)
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
20,000 kWh and 5,000 cf $2,097.57 $9.40 $162.46 $147.71 $2,417.14 3/4"
Electric ECA $94.00 $94.00 62 kW
Totals $2,191.57 $9.40 $162.46 $147.71 $2,511.14 90%PF
68.89 kVA
Increase Due to Rate Change $83.90 $0.50 $0.00 $0.00 $84.40 44.8%LF
Totals $2,275.47 $9.90 $162.46 $147.71 $2,595.54 Tier 2
% Impact on Total Bill 3.36%
COMMERCIAL(LP)
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
60,000 kWh and 15,000 cf $5,981.27 $14.10 $465.43 $421.71 $6,882.51 1"
Electric ECA $282.00 $282.00 185 kW
Totals $6,263.27 $14.10 $465.43 $421.71 $7,164.51 90% PF
205.56 kVA
Increase Due to Rate Change $239.25 $0.75 $0.00 $0.00 $240.00 45.0% LF
Totals $6,502.52 $14.85 $465.43 $421.71 $7,404.51 Tier 3
% Impact on Total Bill 3.35%
COMMERCIAL(LP)
Electric Storm Water
Electric/Water Use Summer Water Summer Sewer Total
100,000 kWh and 20,000 cf $9,887.73 $42.25 $649.86 $558.71 $11,138.55 1&1/2"
Electric ECA $470.00 $470.00 310 kW
Totals $10,357.73 $42.25 $649.86 $558.71 $11.608.55 90% PF
344.44 kVA
Increase Due to Rate Change $395.51 $2.30 $0.00 $0.00 $397.81 44.8% LF
Totals $10,753.24 $44.55 $649.86 $558.71 $12,006.36 Tier 4
% Impact on Total Bill 3.43%
CHAPTER 28
UTILITIES
Page
DIVISION I
Electric..........................................................................................................................28-1
DIVISION II
WaterService................................................................................................................28-9
DIVISION III
Sewers...........................................................................................................................28-18
DIVISION IV
Utility Retirement System.............................................................................................28-27
DIVISION V
Utilities Generally 28-28
DIVISION VI
WaterRationing............................................................................................................28-29
DIVISION VII
Electric Utility Operations Review &Advisory Board................................................28-33
DIVISION VIII
Storm Water Drainage System......................................................................................28-33
DIVISION IX
Water& Sewer Connection Fee Districts.....................................................................28-38
CHAPTER 28
UTILITIES
DIVISONaI,wk
Sec.28.101. GENERAL CONDITIONS FOR ELECTRIC RATES.
The following general conditions are applicable to the following as indicated in each rate schedule:
(1) Service shall be provided subject to Ames Municipal Electric System rules and regulations.
(Ord. No. 2975, Sec. 1, 5-19-87; Ord. No. 2977, Sec. 1, 6-9-87)
(2) The schedule will be applied to each meter and point of delivery and in no event will meter
readings be combined except when it has been determined necessary by the Ames Municipal Electric System.
(Ord. No. 3885, 07-5-06)
(3) Where a residence and a business are combined on one premise,service for the combined use will be
considered residential only if the predominant use is for residential purposes.If the use is predominantly for business
purposes,the customer is required to take all service under the applicable Small Commercial or Commercial Rate.
(Ord. No. 4130, 11-27-12)
(4) The standard approved type of electric water heater shall have a single 120 volt heating element no
larger than 1500 watts or shall have multiple thermostatically controlled noninductive 240 volt heating elements of not
more than 5000 watts per element with such multiple elements connected interlocking so that only one element may
operate at a time.
(5) The utility may assess an excess facilities charge when necessary to meet costs of an unusual
installation.
(Ord. No. 2921, Sec. 1, 4-9-85; Ord No. 3199, Sec. 1, 9-24-92)
Sec.28.102.ENERGY BILLING(ENERGY UNIT RATE,ENERGY COST ADJUSTMENT,&ENERGY
RATE ADJUSTMENT).
The net monthly billing based on rates will be increased or decreased according to the Energy Unit Rate and Energy
Cost Adjustment,calculated as of the prior month. For purposes of this section,the following definitions apply:
"Energy Unit Rate" means the portion of the retail electric rates that produces revenue to offset fuel and
electrical energy related expenses. The Energy Unit Rate for all retail rate schedules shall be $0.0495 per kilowatt-
hour(kWh).
"Energy Cost Adjustment (ECA)" means the amount the customer's billed energy charges are adjusted to
compensate for variations in the cost of energy to the Ames Municipal Electric System. The ECA,shall be adjusted
monthly for variations in the utility's net cost of energy associated with electrical energy purchases/sales,transmission
expenses/revenues,and adjustments;fuel purchases/sales,delivery expenses,and adjustments;and fuel waste disposal
expenses/revenues and adjustments. The ECA shall be determined by multiplying the customer's billed energy
consumption(kWh)times the Energy Rate Adjustment($/kWh).
"Energy Rate Adjustment"means the Energy Unit Rate($/kWh)subtracted from the quotient of the Utility's
net cost of energy($), as defined in the ECA, invoiced for the prior twelve-month period divided by the total retail
energy(kWh)sales for the corresponding twelve-month period.
(Ord. No. 2921, Sec. 2, 4-9-85; Ord.No. 2975,Sec. 1, 5-19-87; Ord. No. 2977, Sec. 1, 6-9-87; Ord.No. 3199, Sec. 1,
9-24-92; Ord. No. 4130, 11-27-12; Ord.No. 4262, 6-14-16).
Sup#2017-2 28-1 Rev.4-1-17
See.28.103. RESIDENTIAL ELECTRIC RATES.
(1) Availability: Electrical energy and service shall be available at the "Residential Rate" for all
single-phase domestic uses in separately metered,dwelling units that are intended for occupancy by a single family as
defined by the Ames Zoning Ordinance,as distinguished from group domiciles such as rooming houses,fraternity or
sorority houses,supervised group homes,and residential care facilities of various kinds.
(2) Rate per billing period.For each monthly billing period a residential rate customer:
(a) shall be charged eight dollars($8.4Q 32)as a customer service charge,and
(b) in addition,shall be charged for energy consumption during the billing period as follows:
(i) for bills mailed on or between July 1 and October 31 (summerperiod):
$0.44�-1213 per kWh,or
(ii) for bills mailed on or between November 1 and June 30(winter period):
$0.996&.1005 per kWh
(c) All charges above shall also be subject to the current applicable energy cost
adjustment per Sec.28.102. (Ord. No. 4130, 11-27-12)
and
(3) Minimum bill:The minimum charge per billing period shall be eight dollars($8-098.32).
(Ord. No. 3885, 07-25-06; Ord. No. 3955, 05-27-08; Ord.No. 3987, 05-12-09; Ord. 4130, 11-27-12)
(4) Conditions: The Residential Rate shall be subject to the general conditions set forth in Section
28.101(1),(2),(3),(4)and(5).
(5) Load Management Credit: Any dwelling unit that qualifies under the Residential Rate and is
equipped with a properly installed central air conditioner shall be eligible to participate in the Residential Load
Management Program. Customers who agree to allow the utility to install and maintain a Load Management Switch
on their central air conditioner will receive the following credits to their electric bills:
(a) $5 credit for each installed Load Management Switch for bills mailed on or
between July 1 and October 31.
(b) The total annual credit for each customer shall not exceed$20 for each central air
conditioner on which a Load Management Switch is installed.
(Ord. No. 3277, Sec. 1, 5-24-94)(Ord. No. 822, Sections 2, 3; Code 1956, Sections 26-2, 26-3; Ord. No. 1038, Sec. 1,
9-4-62; Ord.No. 2172,Sec.2,2-7-67; Ord.No.2271,Sec. 1,2, 10-22-68; Ord.No. 2505,Sec. 1, 2, 4-22-75; Ord.No.
2586, Sec. 2, 2-22-77; Ord. No. 2657, Sec, 2, 6-6-78; Ord.No. 2723, Sec. 2, 7-24-79; Ord. No. 2895, Sec. 1, 5-22-84;
Ord. No. 2921, Sec. 3, 4-9-85; Ord. No. 3199, Sec. 1, 9-24-92)
See.28.104. SMALL COMMERCIAL RATE.
(1) Availability: Electrical energy and service shall be available at the "Small Commercial Rate" to
all customers except those that qualify for another rate schedule, for all single-phase or three-phase, single-metered
usage,where the metered demand does not exceed 55 kVA.
(Ord.No. 4130, 11-27-12)
(2) Rate per billing period:For each monthly billing period a Small Commercial Rate customer:
(a) shall be charged fifteen dollars($43 W 5.60)as the customer service charge;and,
(b) in addition,shall be charged for energy consumption during the billing period as follows:
(i) for bills mailed on or between July 1 and October 3 1(summer period):
$0.14-4�-1194 per kWh
(ii) for bills mailed on or between November 1 and June 30(winter period):
$0.094&0986 per kWh
(c) All charges above shall also be subject to the current applicable energy cost
Adjustment per Sec.28.102.
(Ord. No. 4130, I1-27-12)
(3) Minimum bill: The minimum charge per billing period shall be fifteen dollars($4-5-.W 5.60).
(Ord. No. 4130, I1-27-12)
Sup#2017-2 28-2 Rev.4-1-17
(4) Conditions: The Small Commercial Rate shall be subjectto:
(a) the general conditions of section 28.101 (1),(2),(3)and(5);and,
(b) the following specific conditions:
(i) Unless three-phase service is determined by the Ames Municipal Electric System
to be economically available, motors up to and including 5 hp shall be single-phase. Motors above 5 hp shall be
three-phase. Three-phase service will normally be 120/208 volt, 4 wire. Where conditions warrant (outside the
business district area), 4-wire 120/240 volt or 277/480 volt service may be furnished if mutually agreeable to the
Ames Municipal Electric System and the customer.
(ii) Fluctuating loads. Loads requiring excess transformer capacity because of large
momentary current requirements,or to provide close voltage regulation,shall be subject to an additional charge of
$0.327 per rated kVA of capacity above normal capacity requirement for the diversified demand.The kVA subject
to an additional charge will be adjusted no more than once a year.No charge shall apply if the customer furnishes
the transformers.
(Ord. No. 3885, 07-25-06; Ord. 3987, 05-12-09)
(iii) Should the electrical energy furnished under this schedule for any reason be in
on
the primary side of the service transformers,the energy metered shall be reduced by 1 '/2 per cent before calculating
the energy charge.
(Ord. No. 4130, 11-27-12)
(5) Load Management Credit: Any facility that qualified and is equipped with a properly installed
central air conditioner shall be eligible to participate in the Load Management Program. Customers who agree to
allow the Ames Municipal Electric System to install and maintain a Load Management Switch on their central air
conditioner will receive the following credits to their electric bills:
(a) Five dollars($5.00)credit for each installed Load Management Switch for bills mailed on
or between July 1 and October 31.
(b) The total annual credit for each customer shall not exceed twenty dollars($20.00)for each
central air conditioner on which a Load Management Switch has been installed.
(Ord.No. 822, Sections 4, 5; Code 1956, Sections 26-4, 26-5; Ord. No. 1038, Sec. 1, 9-4-62; Ord. No. 2172, Sec. 2,
2-7-67; Ord. No. 2271, Sec. 1, 2, 10-22-68; Ord.No. 2505,Sec. 1, 2, 4-22-75; Ord.No. 2586, Sec. 2, 2-22-77; Ord.
No. 2657, Sec. 2, 6-6-78; Ord.No. 2723, Sec. 1, 2, 7-24-79; Ord. No. 2921, Sec. 4, 4-9-85; Ord. No. 3199, Sec. 1,
9-24-92; Ord. No. 3885, 07-25-06)
Sec.28.105. COMMERCIAL RATE.
(1) Availability. The "Commercial Rate" shall be optional for any non-residential customer whose
consumption in any billing period exceeds 10,000 kWh. The Commercial Rate shall be mandatory for any non-
residential customer whose metered demand at any time exceeds 55 kVA. If at any time, a non-residential
customer's metered demand exceeds 55 kVA,all consumption for the billing period in which that occurs,and for the
next succeeding eleven billing periods, shall be charged at the Commercial Rate. Any customer for whom the
Commercial Rate became mandatory,who subsequently has a metered demand of less than 55 kVA for 12 consecutive
months,will again become an optional commercial rate customer with a choice between Small Commercial Rate and
Commercial Rates. Any customer for whom the Commercial Rate is optional shall not switch rates more than once in
a period of 12 months. Any customer on the Commercial Rate who has a metered demand of less than 55 kVA,and a
consumption of less than 10,000 kWh, for twelve consecutive months, shall be changed to the Small Commercial
Rate.
(Ord. No. 4130, I1-27-12)
(2) Rate per Billing Period.For each monthly billing period,a Commercial Rate customer:
(a) shall be charged one hundred fifty dollars($45.0- 56.00)as a customer service charge,
and
(b) in addition,shall be charged for demand and energy consumption duringthe
billing period as follows:
Sup#2017-2 28-3 Rev.4-1-17
(i) for bills mailed on or between July 1 and October 31 (summer period)
a customer shall be charged a demand of:
$44.3910.71 per kVA and an energy charge of:
$0.0&19-0644 per kWh
(ii) for bills mailed on or between November 1 and June 30(winter period)a
customer shall be charged a demand charge of:
$74-88.0I per kVA and an energy charge of:
$0.4&14 0644 per kWh
(Ord. No. 3987, 05-12-09; Ord. 4130, 11-27-12)
(c) All charges above shall also be subject to the current applicable energy cost adjustment per
Sec.28.102.
(Ord, No. 4130, 11-27-12)
(3) Billing Demand: The"Billing Demand"shall be the greater of:
(a) The peak 15-minute demand measured during the present monthly billing period;or
(b) Seventy-five percent(75%)of the peak demand measured during the most recent four
months of the summer period;or
(c) Sixty percent(60%)of the peak demand measured during the last eleven billing periods.
(d) Provided,however,that the demand used for billing shall in no case be less than 15 kVA
after discounts.
(Ord. No. 4130, 11-27-12)
(4) Minimum bill: The minimum bill shall be the customer service charge plus the current demand
charge.
(5) RESERVED
(6) Service facilities: The Ames Municipal Electric System shall furnish as a standard installation
facilities adequate to supply service at a single point of delivery to a normal load equal to the maximum 15-minute
demand of the customer. Each standard installation shall include, where necessary, facilities for one standard
transformation and the demand and energy consumption of the entire premises.
(7) Excess facilities charge: In the event service facilities in addition to,or different from, a standard
installation are requested by the customer,or are required to serve the customer's load,the Ames Municipal Electric
System shall furnish,install,and maintain such facilities subject to the following considerations:
(a) The type,extent,and location of such service facilities shall be determined by agreement
between the Ames Municipal Electric System and thecustomer.
(b) Such service facilities shall be the property of the Ames Municipal Electric System.
(c) The customer shall pay a monthly rental charge on those facilities in excess of the facilities
included in a standard installation.
(d) If the optional or nonstandard facilities are used for other customers also,the rental payable
by the customer shall be that portion of the total rental which is reasonably assignable to the customer.
(8) Primary service: Customers who take service at primary voltage shall be granted discounts to
demand and energy as follows:
(a) 1-1/2%of the billing demand and measured energy where metering is on the high voltage
side of utility-owned transformers.
(b) 5%of the billing demand and 1-1/2%of the measured energy where metering is on the
high voltage side of customer-owned transformers.
(c) A minimum billing demand after discount shall be 15 kVA.
(Ord. No. 4130, 11-27-12)
(d) Voltages below 8,000/13,800 Y nominal are considered secondaryvoltage.
(9) Conditions: The Commercial Rate shall be subject to
(a) the general condition in section 28.101 (1),(2),(3)and(5);and,
(b) the following specific conditions:
Sup#2017-2 28-4 Rev.4-1-17
(i) The customer's total usage on a single premise shall determine whether the
customer qualifies for service under this rate structure. In no event will the customer be billed on both the Small
Commercial Rate and Commercial Rates. A premise is defined as the main building of a commercial or industrial
establishment,and shall include the outlying or adjacent buildings used by the same provided the use of service in the
outlying buildings is supplemental and similar to the service used in the main building.
(Ord. No. 4130, 11-27-12)
(ii) Fluctuating loads. If use of energy is intermittent or subject to violent
fluctuation,the Ames Municipal Electric System may add to the 15-minute measured demand an amount equal to 65%
of the rated capacity in kVA ofthe apparatus which causes such fluctuations.
(Ord. No. 4130, 11-27-12)
(10) Load Management Credit: Any facility that qualified and is equipped with a properly installed
central air conditioner shall be eligible to participate in the Load Management Program. Customers who agree to
allow the Ames Municipal Electric System to install and maintain a Load Management Switch on their central air
conditioner will receive the following credits to their electric bills:
(a) Five dollars($5.00)credit for each installed Load Management Switch for bills mailed on
or between July 1 and October 31.
(b) The total annual credit for each customer shall not exceed twenty dollars($20.00)for each
central air conditioner on which a Load Management Switch has been installed.
(Ord. No. 822, Sections 4, 5; Code 1956, Sections 26-4, 26-5; Ord. No. 1038, Sec. 1, 9-4-62; Ord.No. 2172,
Sec. 2, 2-7-67; Ord. No. 2271,Sec. 1, 2, 10-22-68; Ord. No. 2505, Sec. 1, 2, 4-22-75; Ord.No. 2586, Sec. 2, 2-22-77;
Ord.No.2657,Sec.2, 6-6-78;Ord.No.2723,Sec. 1,2, 7-24-79; Ord.No.2921,Sec.4, 4-9-85; Ord.No.3199,Sec. 1,
9-24-92)(Ord. No. 3885, 07-5-06)
Sec.28.106. INDUSTRIAL RATE.
(1) Availability: The Industrial Rate shall be mandatory for any non-residential customer whose
metered demand at any time exceeds 2,500 kVA. If at any time, a non-residential customer's metered demand
exceeds 2,500 kVA, all consumption for the billing period in which that occurs, and for the next succeeding eleven
billing periods,shall be charged at the Industrial Rate.
(Ord. No. 4130, 11-27-12)
(2) Rate Per Billing Period.For each monthly billing period,an Industrial Rate customer
(a) shall be charged one hundred fifty dollars($159:98156.00)as a customer service
charge,and
(b) in addition,shall be charged for demand and energy consumption duringthe
billing period as follows:
(i) for bills mailed on or between July 1 and October 31 (summerperiod)
a customer shall be charged a demand charge of$4440-10.40 per kVA of billing demand,and an energy charge of:
$0.069-0644 per kWh
(ii) for bills mailed on or between November 1 and June 30(winter period)a
customer shall be charged a demand charge of:
$7487.80 per kVA of billing demand,and an energy charge of:
$0.449-0644 per kWh
(Ord. No. 3955, 05-27-08; Ord 3987, 05-12-09; Ord. No. 4130, 11-27-12)
(c) All charges above also shall be subject to the current applicable energy cost adjustment per
Sec.28.102.
(3) Billing Demand. The'Billing Demand'shall be the greater of:
(a) The peak fifteen(15)minute demand measured during the current monthly billing period,
or
(b) Seventy-five percent(75%)of the peak demand measured during the most recent four
months of the summer period;or
(c) Sixty percent(60%)of the peak demand measured during the last eleven billing periods.
Sup#2017-2 28-5 Rev.4-1-17
(d) Provided,however,that the demand used for billing shall in no case be less than 2,500
kVA after discounts.
(Ord. No. 4130, 11-27-12)
(4) Minimum Bill. The minimum monthly bill shall be the customer service charge plus the current
demand charge plus the energy charge and energy cost adjustment for 600,000kWh.
(5) RESERVED
(6) Service Facilities. The Ames Municipal Electric System shall furnish as a standard installation
facilities adequate to supply service at a single point of delivery to a normal load equal to the maximum 15-minute
demand of the customer. Each standard installation shall include, where necessary, facilities for one standard
transformation and the demand and energy consumption of the entire premises.
(7) Excess Facility Charge. In the event service facilities in addition to, or different from,a standard
installation are requested by the customer,or are required to serve the customer's load,the Ames Municipal Electric
System shall furnish,install,and maintain such facilities subject to the following considerations:
(a) The type,extent,and location of such service facilities shall be determined by agreement
between the Ames Municipal Electric System and the customer.
(b) Such service facilities shall be the property of the Ames Municipal Electric System.
(c) The customer shall pay a monthly rental charge on those facilities in excess of the facilities
included in a standard installation.
(d) If the optional or nonstandard facilities are used for other customers also,the rental payable
by the customer shall be that portion of the total rental which is reasonably assignable to the customer.
(8) Primary service: Customers who take service at primary voltage shall be granted discounts to
demand and energy as follows:
(a) 1-1/2%of the billing demand and measured energy where metering is on the high voltage
side of utility-owned transformers.
(b) 5%of the billing demand and 1-1/2%of the measured energy where metering is on the
high voltage side of customer-owned transformers.
(c) A minimum billing demand after discount shall be 2,500 kVA
(Ord. No. 4130, 11-27-12)
(d) Voltages below 8,000/13,800 Y nominal are considered secondary voltage.
(9) Conditions. The Industrial Rate shall be subject to the following specific conditions.
(a) the general condition in section 28.101 (1),(2)and(5)and
(b) the following specific conditions:
(i) The customer's total usage on a single premise shall determine whether the
customer qualifies for service under this rate structure. In no event will the customer be billed on more than one rate.
A premise is defined as the main building of a commercial or industrial establishment,and shall include the outlying or
adjacent buildings used by the same provided the use of service in the outlying buildings is supplemental and similar to
the service used in the main building.
(ii) Fluctuating loads. If use of energy is intermittent or subject to violent
fluctuation,the Ames Municipal Electric System may add to the 15-minute measured demand an amount equal to 65%
of the rated capacity in kVA ofthe apparatus which causes such fluctuations.
(Ord.No.2827, 6-15-82;Ord.No.2832,9-21-82; Ord.No.2921,Sec. 1, 4-9-85;Ord.No.3199,Sec. 1,9-24-92; Ord.
No. 4130, 11-27-12)
Sup#2017-2 28-6 Rev.4-1-17
Sec.28.107. STREET AND SECURITY LIGHTING RATE&INCIDENTAL UNMETERED ENERGY.
(1) Availability. Lighting energy and service shall be available for street lighting and €er--seeur-ity
lighting •,.hef!e it is impossible er :.,,,,,.a^.:^^'ether incidental constant-wattage loads where it is not practicable 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 1,2M2017:
Monthly Monthly
Lamp Consumption
Charge (kWh per Lamp)
35.95 au
25-85 2"
400 Watt-Mercury Vapor 15.7516.38 153
400 Watt-Mercury Vapor-Ornamental 38.1018.82 153
250 Watt-Mercury Vapor 1-0.9011.34 96
250 Watt-Mercury Vapor-Ornamental 14.8015.39 96
175 Watt-Mercury Vapor 5-.608.94 67
175 Watt-Mercury Vapor-Ornamental 10.9011.34 67
400 Watt-High Pressure Sodium 16.6517.32 153
400 Watt-High Pressure Sodium-Ornamental 18.1018.82 153
360 :'matt High n..^...ufe Sodium i5.55 438
360 A14t High n..e......re Sodium n.......,ental l7.05 439
250 Watt-High Pressure Sodium 44.6512.12 96
250 Watt-High Pressure Sodium-Ornamental 1-5.2515.86 96
200 Watt-High Pressure Sodium 10.7511.18 77
200 Watt-High Pressure Sodium-Ornamental 14.6515.24 77
150 Watt-High Pressure Sodium 94-09.46 60
150 Watt-High Pressure Sodium-Ornamental 11-4511.91 60
100 Watt-High Pressure Sodium -7-.07.33 38
100 Watt-High Pressure Sodium-Ornamental 94-59.52 38
70 Watt-High Pressure Sodium 5-.M6.19 27
70 Watt-High Pressure Sodium-Ornamental 84-58.48 27
400 —LED 13.81 69
400—LED—Ornamental 18.81 69
250—LED 10.77 36
250—LED—Ornamental 15.77 36
150—LED 8.39 24
150—LED-Ornamental 11.89 24
70—LED 5.45 13
70—LED—Ornamental 8.45 13
Ornamental fixtures are units on poles other than standard
round-wood poles.
(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; Ord. 4149, 6-25-13)
(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; Ord. 4149, 6-25-13)
(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 ettlybe made with 175, 400, or- 1000 Watt
Sup#2017-2 28-7 Rev.4-1-17
mer-eur-yvaper or with 70, 100, 150,200,or-250 watt sodium fi?aur-es an e?dsting poles w4h a mEodmum of a 150 fee
span e:using standard LED fixtures with a Standard Light Service(see below)
(c) For all street and security lights,a Standard Light Service consists of a standard LED
fixture mounted to an existing round-wood pole with a maximum of a 150 foot span of overhead service wire
connected to an existing service or transformer. Standard LED fixtures are grey cobra-head style in the following
sizes: 70—LED, 150—LED,250-LED and 400-LED. Additional costs above what is included in a Standard Light
Service are the customer's responsibility.
(d) Flood lights,..hefe available F em u filib,steek,shall have. additional
monthly rharge of $0.65 per lain' are no longer provided for new installations. Continued
service to an existingfloodlight oodlight will be provided at an additional monthly charge of$1.50 per
fixture added to the respective rate for non-flood-light fixtures. Existing non-LED floodlights
requiring maintenance will be replaced with a 250-LED flood light fixture.
(Ord.No. 3885, 07-25-06;Ord. No. 3955, 05-27-08; Ord. No. 3987, 05-12-09; Ord. 4149, 6-25-13)
(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; Ord. 4149, 6-25-13)
(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; Ord. 4149, 6-25-13)
(4)INCIDENTAL UNMETERED ENERGY FOR CUSTOMER-OWNED LIGHTING, SIGNS AND OTHER
CONSTANT-WATTAGE LOADS
(a)Where a customer owns lighting,signs,or similar constant-wattage single-phase loads no greater than 2 kVA
(2000 volt-amperes)per point of connection and where it is not practicable to meter the energy through the
customer's normal metering location service may be provided under a contract for incidental unmetered energy.To
qualify,the customer must provide verification that their electric loads have a constant-wattage or calculable monthly
kWh.The basis for monthly kWh to be billed shall be included in the service contract.Calculated monthly energy will
be billed at a rate of$0.115 per kilowatt-hour plus the applicable energy cost adjustment.Once placed in service,
changes to loads served by an unmetered service may only be made following review and approval by the Electric
Services Department and with an approved amendment to the service contract.A Standard Unmetered Service
includes 150' of overhead service wire from an existing transformer or service connection point;additional costs
above what is included in a Standard Unmetered Service are the customer's responsibility.
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 times. 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 of time 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.
Cc)_ Billing Demand:Highest metered kilovolt-amp(kVA)electric use_ in a billing period
Sup#2017-2 28-8 Rev.4-1-17
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:OO.am and 8:00 pm.
(f) 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, Sunday and 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 June30.
0) Energy Cost Adjustment (ECA): The Energy Cost Adjustment (ECA) is a billing
component that allows the utility to reflect fluctuations in the cost of fuel for the power plant without frequently
Sup#2017-2 28-9 Rev.4-1-17
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 (summerperiod):
1) the Billing Demand times the billing rate of$40-.W10.40per kVA,and
2) the On Peak,Energy times the billing rate of$0.4&� 0644 perkWh,
3) the Off Peak,Base Energy times the billing rate of$0.AF-) 0644 perkWh,
4) the Off Peak,Time-of-Use Energy times the billing rate of$0.04 perkWh,
(ii) for On-Peak bills mailed on or between November 1 and June 30(winterperiod):
1) the Billing Demand times the billing rate of$7—.SG 80 per kVA,and
2) the On Peak,Energy times the billing rate of$0.0619 0644 perkWh,
3) the Off Peak,Base Energy times the billing rate of$0.0619 0644 perkWh,
4) the Off Peak,Time-of-Use Energy times the billing rate of$0.04 perkWh,
(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 hour notice, 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 inlength
(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 --d.--an a shall - - in in eFF_et until September- 1 2016 _ .hieh .fare it is r-epealed in its
entir-ety`
(Ord.No. 4213, 4-28-15)
See.28.109. Renewable Energy Buyback Rates.
Renewable electrical energy produced by an Ames Electric Utility customer and delivered to the City's
electric system(in accordance with the conditions of service specified in Section 2.7 of Appendix H of the
Ames Municipal Code)shall receive a credit to their utility account as follows:
(1) Residential service. A residential rate customer's account shall be credited:
(a)40%of$0.44661213,plus$0.025=$0.0716 0735 per kWh of delivered energy for
bills mailed on or between July 1 and October 31 (summer period)
(b)40%of$0.0966 1005 per kWh,plus$0.025=$0.0525-0652 per kWh of delivered
energy for bills mailed on or between November 1 and June 30(winterperiod)
Sup#2017-2 28-10 Rev.4-1-17
(2) Small Commercial service.A small commercial service customer's account shall be
credited:
(a)40%of$0.44481194,plus$0.020=$0.0659 0678 per kWh of delivered energy for
bills mailed on or between July 1 and October 31 (summer period)
(b)40%of$0.4948-0986 plus$0.020=$0.0579-0594 per kWh of delivered energy
for bills mailed on or between November 1 and June 30(winterperiod)
(3) Commercial service.A commercial service customer's account shall be credited at
50%of $0.06490644,plus$0.015=$0.94649 0472 per kWh of delivered energy
(4) Industrial service.An industrial service customer's account shall be credited at 63%of
$0.06490644,plus$0.010=$0.0494-0506 per kWh of delivered energy.
(Ord. No. 4287, 1-10-17)
Sup#2017-2 28-11 Rev.4-1-17