HomeMy WebLinkAbout~Master - Temporary modification to Electric Cost Adjustment Factor RESOLUTION NO. 06-160
RESOLUTION APPROVING TEMPORARY MODIFICATION TO THE
ELECTRIC COST ADJUSTMENT (ECA) FACTOR FOR ELECTRIC RATES
FOR THE CITY OF AMES, IOWA
WHEREAS, a few weeks ago, a fire occurred at the Williams Bulk Transfer site that has
temporarily closed the facility, and Alliant officials estimate that the repairs could take until the
beginning of June to complete; and,
WHEREAS,the City's analysis indicates that we will need 32,000 tons of coal to carry us until
the trains can resume unloading at our Williams site; and,
WHEREAS, City staff members met with Alliant officials on April 21,2006,to clarify options
for dealing with this coal emergency; and,
WHEREAS, a potential source to secure coal for the City has been identified in Dubuque,
however, the cost for delivery from that location will be more than double the current contract cost of
$34.55/ton;
WHEREAS, while the cost increases are significant, the City has no choice but to purchase
additional coal; and,
WHEREAS,the formula within the City's customer rate tariff that has been in place to calculate
the ECA factor has had a fairly stable impact on the bills over the years,however,with the doubling of
coal costs, the current formula is producing significant increases for the City's customers; and,
WHEREAS, staff has requested to temporarily suspend the current formula for determining the
ECA for the next month and present a different approach for the May bills; and,
WHEREAS, this delay will allow staff to pursue other formula possibilities.
NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that
staff is hereby authorized to temporarily alter the Energy Cost Adjustment(ECA)formula to soften the
impact on the City's customers until staff can verify the appropriate formula to deal with the volatile coal
market.
ADOPTED THIS 25t1i day of April, 2006.
AJ
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Mahayni
Seconded by: Goodman
Voting aye: Doll, Goodman, Mahayni, Popken, Rice
Voting nay: None Absent: Goodhue
Resolution declared adopted and signed by the Mayor this 25' day of April, 2006.