HomeMy WebLinkAboutA001 - Small Commercial Rate OrdinanceITEM #:1
DATE:10-02-24
DEPT:ELEC
SUBJECT:AMENDMENT TO SMALL COMMERCIAL ELECTRIC RATES
COUNCIL ACTION FORM
BACKGROUND:
On July 9, 2024, the City Council adopted changes to electric rates. Changes included a djusting the
monthly service charges and energy rates, creating optional Time-of-Use Rates for Residential, Small
Commercial, and Commercial rate customers, authorizing the implementation of a Time-of-Use pilot
study of the residential rates, and adjusting the interruptible bill credit for Large Customers who choose
to participate in the Interruptible Load Program. The third and final reading of the changes was
approved by Council on August 13, 2024.
Staff has discovered that, due to a typographical error, the small commercial winter energy rate
was entered into the ordinance as $0.967 per kWh, far more than the intended $0.0967. An
amendment is necessary to correct the error and ensure electric customers pay a fair and equitable rate.
The approved rate will be used to process bills which are mailed out beginning November 1, 2024. In
order to have the correct rate in place to properly bill small commercial customers, staff is asking
the City Council to suspend the rules and accomplish the second and third readings at this
meeting.
ALTERNATIVES:
1. Approve the amendment to Chapter 28 of Municipal Code, small commercial electric rates, and
suspend the rules to allow the second and third reading of ordinance at this time.
2. Do not approve the amendment to Chapter 28 of Municipal Code, small commercial electric rates,
which would result in a dramatic, unintended rate increase for small commercial customers.
CITY MANAGER'S RECOMMENDED ACTION:
Amending the rate in Municipal Code as proposed will reflect the original intent of staff and City
Council to lower the small commercial energy rate. Failure to amend the code to correct the
typographical error would result in a dramatic, unintended rate increase for small commercial
customers. To ensure the corrected rate is implemented immediately, staff is requesting that the
City Council suspend the rules and pass the ordinance on second and third readings. Therefore, it
is the recommendation of the City Manager that the City Council adopt Alternative 1.
ATTACHMENT(S):
Ordinance to Amend Small Commerical Rate.pdf
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ORDINANCE NO. _________
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY
OF AMES, IOWA, BY AMENDING CHAPTER 28 SECTION
28.104(2)(b)(ii) THEREOF, FOR THE PURPOSE OF AMENDING THE
SMALL COMMERICAL RATE; 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 amending Section 28.104(b)(ii) as follows:
“Sec. 28.104. SMALL COMMERCIAL RATE.
***
(2) Rate per billing period: For each monthly billing period a Small Commercial Rate customer:
(a) shall be charged a customer service charge of twenty dollars and fifty cents ($20.50);
and,
(b) 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):
$0.1175per kWh
(ii) for bills mailed on or between November 1 and June 30 (winter period):
$0.967 $0.0967 per kWh
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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