HomeMy WebLinkAboutA002 - Council Action Form dated August 13, 2024 Item No. 42
A1r MEMO
k, A m e s,M
To: Mayor& City Council
From: Electric
Date: August 9, 2024
Subject: Third reading and adoption
The ordinance relating to electric rate changes is attached for your review and
consideration for third reading. Please see attached memo from Legal regarding
effective date.
ATTACHMENT(S):
Memo.pdf
Ordinance Chapter 28 Electric Rates.PDF
City Clerk's Office 515.239.5105 main 515 Clark Ave.P.O.Box 811
515.239.5142 fax Ames,IA 50010
www.CityofAmes.org .�
CITY OF MEMO
Alqw, Ames Legal Department
Caring People•Quality Programs•Exceptional Service
To: Mayor Haila and Ames City Council
From: Mark O. Lambert, City Attorney
Date: August 8, 2024
Subject: Third reading for ordinance on Electric rates
Electric, Finance and Legal staff have consulted about the proper effective date
of the ordinance.
Staff recommends that the Council make and pass the following motion:
"Move to amend the ordinance by establishing that the rates and
charges will become effective beginning with the bills mailed on
November 1, 2024."
This will result in the addition of a Section Four at the end of the ordinance:
Section Four. The rates and charges for electric services detailed in this
ordinance shall be effective for bills mailed November 1, 2024 and after.
Legal Department 515.239.5146 main 515 Clark Ave.
515.239.5142 fax Ames,IA 50010
www.CityofAmes.org
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ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE
CITY OF AMES, IOWA, BY AMENDING CHAPTER 28
SECTIONS 28.101(4), 28.105, 28.106, 28.107, 28.108, 28.109, AND
REPEALING SECTIONS 28.103, 28.104 THEREOF, FOR THE
PURPOSE OF IMPLEMENTING COST OF SERVICE AND
RATE STUDY; 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.28.101.GENERAL CONDITIONS FOR ELECTRIC RATES.
The following general conditions are applicable to the following as indicated in each rate schedule:
(4)The standard approved type of eleetr4c watef heater-shall ha-ve a single 120 volt hea4ing eleme
ne lafgef than 1500 waas er- shall ha-ve multiple thefmesta4ieally eeatr-elled tioninduefive 240 volt heatin
elemei4s ef net fnefe than 5000 watts per-elefnepA with siaeh miahiple elefnen4s eefmeeted ii+ter-leek4ag se thm
ealy one element may operate at a fifa,—
(4){S}The utility may assess an excess facilities charge when necessary to meet costs of an unusual
installation.
Sec.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-fResidential-fRate customer:
(a) shall be charged a customer service charge of eigh* ae"mr-s -nr a 3 ($9 32)
fourteen dollars and twenty-five cents($14.25) ,and
(b) in additie , shall be charged for energy consumption during the billing period as follows:
(i) for bills mailed on or between July 1 and October 31 (summer period):
$9.1213 0.1101 per kWh,or
(ii) for bills mailed on or between November 1 and June 30(winter period):
$9.1005 0.0893 per kWh
(c)All charges above shall also be subject to the eEnergy ECost aAdjustment
ECA per Sec.28.102.
(3) Minimum bill: The minimum charge per billing period shall be
epA 21)the customer service charge.
(4) Conditions: The Residential Rate shall be subject to the general conditions set forth in Section
28.10.
(5) Load Management Credit: Any dwelling unit that qualifies under-the Residential RvAe an
is equipped with a properly installed central air conditioners may be eligible to participate in the
D esi4 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)Five dollar($5.00)$5 credit for each installed Load Management Switch for bills mailed on
or between July 1 and October 31.
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(b)The total annual credit for each customer shall not exceed twenty dollars($20.0042-0 for
each central air conditioner on which a Load Management Switch is installed.
(6) Optional Time of Use Rate: A residential customer may request to have electric service
metered and billed on a time-of-use basis.Participation may be limited by availability of advanced metering
equipment. Customers who opt into the Time of Use Rate shall not switch rates more than once in a period
of 12 months.
On-Peak/Off-Peak/Super Off-Peak Definition:
On-peak hours shall be from 2 p.m.to 6 p.m.,Monday through Friday.
Off-peak hours shall be from 7 a.m.to 2 p.m. and 6 p.m.to 8 p.m.,Monday through Friday.
Super Off-Peak hours are all other times(including the holidays of New Year's Day,Memorial Da,
Independence Day,Labor Day,Thanksgiving_Day,and Christmas Dav).
Summer Winter
On Peak Energy $0.2655 per kWh $0.1368 per kWh
Off-Peak Energy $0.0877 per kWh $0.1268 per kWh
Super Off-Peak Energy $0.0740 per kWh $0.0694 per kWh
Sec.28.104. SMALL COMMERCIAL RATE.
(1) Availability: Electrical energy and service shall be available at the"Small Commercial Rate"
to all customers except those that qualify for another rate schedule,for all single-phase or three-phase,single-
metered usage,where the metered demand does not exceed 55 kVA.
(2) Rate per billing period:For each monthly billing period a Small Commercial Rate customer:
(a) shall be charged a customer service charge of fifteen dollars and sixty eePA.. ($ c 6m
twenty dollars and fifty cents($20.50) ;and,
(b) men,shall be charged for energy consumption during the billing period as follows:
(i) for bills mailed on or between July land October 31(summer period):
$9.11940 0.1175per kWh
(ii) for bills mailed on or between November 1 and June 30(winter period):
$9.0986 0.967 per kWh
(c) All charges above shall also be subject to the current applicable e Energy eCost
Adjustment (ECA)per Sec.28.102.
(3) Minimum bill: The minimum charge per billing period shall be°ter
an si*t , epAs($ c 60)the customer service charge.
(4) Conditions: The Small Commercial Rate shall be subject to:
(a) the general conditions of section 28.101;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.
(iii) Should the electrical energy furnished under this schedule for any reason be
metered on the primary side of the service transformers,the energy metered shall be reduced by 1 'h percent
before calculating the energy charge.
(5) Load Management Credit: Any facility that qualified and is equipped with a properly
installed central air conditioner shall may be eligible to participate in the Load Management Program.
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Customers who agree to allow the Ames Municipal Electric System to install and maintain a Load Manage-
ment 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.
(6)Optional Time of Use Rate:A Small Commercial customer may request to have electric service
metered and billed on a time-of-use basis.Participation may be limited by availability of advanced metering
equipment. Customers who opt into the Time of Use Rate shall not switch rates more than once in a period
of 12 months.
On-Peak/Off-Peak/Super Off-Peak Definition:
On-peak hours shall be from 2 p.m.to 6 p.m.,Monday through Friday.
Off-peak hours shall be from 7 a.m.to 2 p.m. and 6 p.m.to 8 p.m.,Monday through Friday.
Super Off-Peak hours are all other times(including the holidays of New Year's Day,Memorial Da,
Independence Day,Labor Day,Thanksgiving_Day,and Christmas Dav).
Summer Winter
On Peak Energy $0.2712 per kWh $0.1425 er kWh
Off-Peak Enemy $0.0934 per kWh $0.1325 per kWh
Super Off-Peak Energy $0.0797 per kWh $0.0751 per kWh
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 WA,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 eCommercial f Rate customer
with a choice between Small Commercial Rate and the 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 WA, and a consumption of less than
10,000 kWh, for twelve consecutive months, shall be changed to the Small Commercial Rate.
(2) Rate per Billing Period:For each monthly billing period,a Commercial Rate customer:
(a) shall be charged one hundred fifty-six dollars($156.00)as a customer service charge,and
(b) in addifie , shall be charged for demand and energy consumption during the
billing period as follows:
(i) for bills mailed on or between July 1 and October 31 (summer period)
a customer shall be charged a demand of:
$10.71 per kVA and an energy charge of:
$9.0644 0.0653 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:
$8.01 per kVA and an energy charge of
$9.0644 0.0653 per kWh
(c)All charges above shall also be subject to the current applicable eEnergy ecost aAdjustment
ERC er Sec.28.102.
(10) Load Management Credit: Any facility that qualified is equipped with a properly
installed central air conditioner sha4l may be eligible to participate in the Load Management Program.
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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.
(11) Optional Time of Use Rate: A Commercial customer may request to have electric service
metered and billed on a time-of-day basis.Participation may be limited by availability of advanced metering
equipment. Customers who opt into the Time of Use Rate shall not switch rates more than once in a period
of 12 months.
On-Peak/Off-Peak/Super Off-Peak Definition:
On-peak hours shall be from 2 p.m.to 6 p.m. CST,Monda, throughFriday.
Off-peak hours shall be from 7 a.m.to 2 p.m. and 6 p.m.to 8 p.m. CST,Monday through Friday.
Super Off-Peak hours are all other times(including the holidays of New Year's Day,Memorial DaL
Independence Day,Labor Day,Thanksgiving Day,and Christmas Dav).
Billing Demand for Time of Use Commercial Customers shall be$4.86 per WA.
Summer Winter
On Peak Energy $0.2453 per kWh $0.1166 er kWh
Off-Peak Ener $0.0675 per kWh $0.1066 er kWh
Super Off-Peak Ener $0.0538 per kWh $0.0492 er kWh
Sec.28.106. COMMERCIAL ELECTRIC VEHICLE CHARGING RATE.
(1) Availability:
(c) all charges above shall also be subject to the
Energy Cost Adjustment(ECA)per Sec. 28.102.
Sec.28.107. INDUSTRIAL RATE.
(2) Rate Per Billing Period:For each monthly billing period,an Industrial Rate customer
(a) shall be charged one hundred fifty six ae"a~s ($ 56 00) one thousand one hundred
($1,100.00)_as a customer service charge,and
(b) ift addifien,shall be charged for demand and energy consumption during the
billing period as follows:
(i) for bills mailed on or between July 1 and October 31(summer period)a customer shall
be charged a demand charge of$10.40 per WA of billing demand,and an energy charge of:
$9.0644 0.0642 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
$7.80 per WA of billing demand,and an energy charge of:
$9.0644 0.0642 per kWh
Sec.28.108.LARGE CUSTOMER TIME-OF-USE USE ELECTRIC RATE AND CHARGES.
(1) Availability: The Large Customer Time-of-Use Electric Rate shall be voluntary for any
customer whose metered demand at any time exceeds 500 WA. Service under this rate schedule is billed on
a Time-of-Use basis as provided under these rules. The Large Customer Time-of-Use Electric Rate is an
alternative to Section 28.105 or Section 28.107 , at the customer's discretion. Customers
opting for inclusion on Large Customer Time-of-Use Electric Rate are required to remain on the rate for a
period no less than twelve(12)consecutive calendar months.
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ose eleetfi&y dtifing times of low demand and diseettfage tise "ring the peak fifnes of the day. Tifne of
Use pfieing allows Electfic Services to bettef eopAfel eosts and mitigate a"negmive system inVaets felate
te times ef peak demand,
(3)Q Definitions:
(-a)
day used fef establishing a pficing strategy aimed a4 fedtteing the ever-all demand fef eleetfieity'
(b)Lq) Peak:The greatest fifteen(15)minute demand for electricity measured during the
current billing period.
(e)b) Billing Demand: Highest metered kilovolt-amp (kVA) electric use, in a billing
period measured between the hours of 3pm and 8pm Monday through Friday.
(d)Lc) Holidays: New Year's Day, Memorial DaU,
Independence Day,Labor Day,Thanksgiving,and Christmas Day.
(OLdd) On-Peak Energy:Electricity,measured in kilowatt hours,used Monday through
Friday between the hours of 8:00 am and 8:00 pm.
(4)Le) 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.
W(D 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
(b)W Summer period: Bills mailed on or between July 1 and October 31.
(4)Lh) Winter period:Bills mailed on or between November 1 and June 30.
(4)D Rate Per Billing Period:For each monthly billing period,a customer participating in the
Industrial Time-of-Use Electric Rate shall be charged:
(a) the Service Charge of Pve htmdfed two thousand dollars ($250.00
$2,000.00);
(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$40.40 10.61 per kVA,and
2)the On Peak,Energy times the billing rate of$0.0644 0.0628 per kWh,
3)the Off Peak,Base Energy times the billing rate of$9.0644 0.0628 per kWh,
4)the Off Peak,Time-of-Use Energy times the billing rate of$0.0400 per kWh,
(ii) for bills mailed on or between November 1 and June 30(winter period):
1) the Billing Demand times the billing rate of$7-.898.01 per kVA,and
2) the On Peak,Energy times the billing rate of$0-.06440.0628 per kWh,
3) the Off Peak,Base Energy times the billing rate of$0.06440.0628 per kWh,
4) the Off Peak,Time-of-Use Energy times the billing rate of$0.0400 per kWh,
(c) the applicable Energy Cost Adjustment(ECA)per Sec.28.102,and
(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.
(-i)f Interruptible Option-Availability: Service under this rate shall be available for customers
with monthly demands of 2-,500 kilovolt-amps (kVA) or greater. Service under this rate schedule is
interruptible and customers must agree to interrupt electric service as provided under these interruptible rate
rules.
(j) Any customer on this rate will be given a credit of$2760 3.00 per elected kVA as
a participation incentive on bills mailed out in July,August,September,and October.
(k) In addition to the participation credit,a customer will be given a compliance credit
of$2-.W2.20 per elected kVA for successfully lowering its demand by at least the amount of the elected
interruptible demand. The amount of participation credit applied to the billing demand is based upon the
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largest interruption response of the billing period.Failure to curtail the full elected amount will result in no
compliance credit.
Sec.28.109.STREET AND SECURITY LIGHTING RATE&INCIDENTAL UNMETERED
ENERGY.
(1) Availability:Lighting energy and service shall be available for street and security lighting
and other 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-inly 1,201-74—
(b)and all lamps shall be charged any applicable eEnergy ECost aAdjustment E( CA),per
Sec.28.102,based on the stated average monthly kWh consumption per lamp.
(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(2,.000 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 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.
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.
Section Four. The rates and charges for electric services detailed in this ordinance shall be
effective for bills mailed November 1,2024 and after.
Passed this day of 2024.
Renee Hall,City Clerk John A.Haila,Mayor
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