HomeMy WebLinkAboutA029 - Second reading of ordinance amending Chapter 28 of Municipal Code to modify Electric ratesTo:Mayor and City Council
From:Don Kom, Director of Electric Services
Date:October 27, 2026
Subject:Amendment to Chapter 28 of Municipal Code to modify Electric Rates
Item No. 29
MEMO
The ordinance amending Chapter 28 of Municipal Code to modify Electric rates is
attached for second reading. In order to avoid implementing the rates in the
middle of a billing cycle, staff is requesting that the City Council suspend
the rules, approve the third reading, and adopt the ordinance.
ATTACHMENT(S):
Draft Ordinance 2026 Electric Rates Change.docx
Electric 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
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, DIVISION I THEREOF, FOR THE
PURPOSE OF UPDATING ELECTRIC RATES
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 as follows:
“
CHAPTER 28
UTILITIES
DIVISION I
ELECTRICITY
***
Sec. 28.103. RESIDENTIAL ELECTRIC RATES.
***
(2) Rate per billing period. For each monthly billing period a Residential Rate
customer:
(a) shall be charged a customer service charge of fourteen dollars
and forty-six cents (14.46) fourteen dollars and eighty-two cents ($14.82), 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):
$0.1118 $0.1146 per kWh, or
(ii) for bills mailed on or between November 1 and June 30
(winter period):
$0.0906 $0.0929 per kWh
***
(5) Load Management Credit: Any dwelling unit that is equipped with a properly
installed central air conditioner may be eligible to participate in the 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 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 is
installed. RESERVED
(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.
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***
(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
eighty-one cents ($20.81) twenty-one dollars and thirty-three cents ($21.33); 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):
$0.1193 $0.1223 per kWh
(ii) for bills mailed on or between November 1 and June 30 (winter
period):
$0.0982 $0.1007 per kWh
***
(4) Conditions: The Small Commercial Rate shall be subject to:
(a) the general conditions of section 28.101; and,
(Ord. No. 4537, 08-13-24)
(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 $0.3352 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.
***
(5) Load Management Credit: Any facility equipped with a properly installed
central air conditioner may 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. RESERVED
(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.
***
Sec. 28.105. COMMERCIAL RATE.
***
(2) Rate per Billing Period: For each monthly billing period, a Commercial Rate
customer:
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(a) shall be charged one hundred fifty-eight dollars and thirty-four cents
($158.34) one hundred sixty-two dollars and thirty cents ($162.30)
as a customer service charge, and
(b) 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:
$10.87 $11.14 per kVA and an energy charge of:
$0.0663 $0.0680 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:
$8.13 $8.33 per kVA and an energy charge of:
$0.0663 $0.0680 per kWh
***
(10) Load Management Credit: Any facility that is equipped with a properly
installed central air conditioner may 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. RESERVED
(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.
***
Billing Demand for Time of Use Commercial Customers shall be $4.86 $4.98 per kVA.
***
Sec. 28.106. COMMERCIAL ELECTRIC VEHICLE CHARGING RATE.
***
(2) Intent: The cost to deliver electricity is generally most expensive during
hours of greatest demand. The utility benefits when electric users reduce their demand
during these times. A time-of-day 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. Energy pricing can encourage the customer to use electricity during times of
low demand and discourage use during the peak times of the day. Time-of-day pricing
allows Electric Services to better control costs and mitigate any negative system impacts
related to times of peak demand. Additionally, offering off -peak rates encourages
broader adoption of electric vehicles by allowing low-cost, off-peak energy for customer
vehicle charging.
(32) Definitions:
(a) Premium Energy Hours: Monday through Friday between the
hours of 9:00 am a.m. and 9:00 pm p.m., excluding federally observed Holidays the
holidays of New Year’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day:
***
(43) Rate Per Billing Period: For each monthly billing period, a customer
participating in the Commercial Electric Vehicle Charging Rate shall be charged:
(a) the Service Charge of two hundred fifty dollars ($250.00) two
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hundred fifty-six dollars and twenty-five cents ($256.25).
(b) the Demand Charge and the Energy Charge for 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 $10.87 $11.14 per
kVA of billing demand
(ii) for bills mailed on or between November 1 and June 30
(winter period), a customer shall be charged a demand charge of $8.13 $8.33 per kVA of
billing demand
(iii) a customer shall be charged an energy charge of:
$0.12 $0.1230 per kWh during “premium” hours
$0.04 $0.0410 per kWh during “economy” hours
***
Sec. 28.107. INDUSTRIAL RATE.
***
(2) Rate Per Billing Period: For each monthly billing period, an Industrial Rate
customer
(a) shall be charged one thousand one hundred sixteen dollars and
fifty cents ($1,116.50) one thousand one hundred forty-four dollars and forty-one cents
($1,144.41) as a customer service charge, and
(b) 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 $10.56 $10.82 per kVA of
billing demand, and an energy charge of:
$0.0652 $0.0668 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:
$7.92 $8.12 per kVA of billing demand, and an energy
charge of:
$0.0652 $0.0668 per kWh
***
(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 Energy Cost Adjustment for 600,000 kWh.
***
Sec. 28.108. LARGE CUSTOMER TIME OF USE ELECTRIC RATE AND CHARGES.
***
(2) Definitions:
***
(f) Off-Peak Time-of-Use Energy: Electricity, measured in kilowatt
hours (kWh), used Monday through Friday between the hours of 8:00 pm p.m. and 8:00
am a.m., and all-day Saturday, Sunday, and Holidays, in excess of the numerical value
of the established monthly Billing Demand (kVA).
***
(3) Rate Per Billing Period: For each monthly billing period, a customer
participating in the Large Customer Time-of-Use Electric Rate shall be charged:
(a) the Service Charge of two thousand dollars ($2,000.00) two thousand
fifty dollars ($2,050.00);
(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):
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1) the Billing Demand times the billing rate of $10.61 $10.88 per
kVA, and
2) the On Peak, Energy times the billing rate of $0.0628 $0.0644
per kWh,
3) the Off Peak, Base Energy times the billing rate of $0.0628
$0.0644 per kWh,
4) the Off Peak, Time-of-Use Energy times the billing rate of $0.04
$0.0410 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 $8.01 $8.21 per
kVA, and
2) the On Peak, Energy times the billing rate of $0.0628 $0.0644
per kWh,
3) the Off Peak, Base Energy times the billing rate of $0.0628
$0.0644 per kWh,
4) the Off Peak, Time-of-Use Energy times the billing rate of
$0.04 $0.0410 per kWh,
***
(4) Interruptible Option-Availability:
***
(i) Customer credits for participating in the interruptible rate option shall
be applied to the customer’s bills mailed out in July, August, September, and
October. Customer participation credits are applied irrespective of a request to
interrupt.
(i) Any customer on this rate will be given a credit of three dollars ($3.00)
per elected kVA as a participation incentive on bills mailed out in July, August,
September, and October. Customer participation credits are applied
irrespective of a request to interrupt.
(j) Any customer on this rate will be given a credit of three dollars ($3.00)
per elected kVA as a participation incentive on bills mailed out in July, August,
September, and October.
(k j) In addition to the participation credit, a customer will be given a
compliance credit of two dollars and twenty cents ($2.20) 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 largest average of the interruption responses of the
billing period.
(l k) In the event a participating customer is unable to interrupt load, a non-
compliance penalty will be charged to the billing period’s demand in the amount
of twelve dollars ($12.00) per kVA for each kVA short of the elected amount.
The amount of noncompliance charge applied to the billing demand is based
upon the largest noncompliance of the billing period. The Interruptible Option
Adjustment is equal to the Compliance Credit minus the amount of the
Noncompliance Charge. The Noncompliance Charge shall be in addition to any
charges otherwise payable to City of Ames Electric Services for electric service
under this rate schedule. The payment of this noncompliance penalty shall not
be considered a substitute for any other remedy available to Electric Services
including, but not limited to, reduction of service.
***
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Sec. 28.109. STREET AND SECURITY LIGHTING RATE & INCIDENTAL
UNMETERED ENERGY.
***
(2) Rate per Billing Period. For each monthly billing period the lighting
customer:
(a) shall be charged for service per lamp:
Monthly Lamp Charge Monthly
Consumption
(kWh per
Lamp)
400 Watt - Mercury Vapor 16.63 17.05 153
400 Watt - Mercury Vapor-Ornamental 19.11 19.59 153
250 Watt - Mercury Vapor 11.51 11.80 96
250 Watt - Mercury Vapor-Ornamental 15.62 16.01 96
175 Watt - Mercury Vapor 9.08 9.31 67
175 Watt - Mercury Vapor-Ornamental 11.51 11.80 67
400 Watt - High Pressure Sodium 17.58 18.02 153
400 Watt - High Pressure Sodium-Ornamental 19.11 19.59 153
250 Watt - High Pressure Sodium 12.31 12.62 96
250 Watt - High Pressure Sodium-Ornamental 16.10 16.50 96
200 Watt - High Pressure Sodium 11.35 11.63 77
200 Watt - High Pressure Sodium-Ornamental 15.47 15.86 77
150 Watt - High Pressure Sodium 9.61 9.85 60
150 Watt - High Pressure Sodium-Ornamental 12.09 12.39 60
100 Watt - High Pressure Sodium 7.44 7.63 38
100 Watt - High Pressure Sodium-Ornamental 9.67 9.91 38
Monthly Lamp Charge Monthly
Consumption
(kWh per
Lamp)
70 Watt - High Pressure Sodium 6.29 6.45 27
70 Watt - High Pressure Sodium-Ornamental 8.61 8.83 27
400- LED 14.02 14.37 69
400-LED-Ornamental 19.10 19.58 69
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250-LED 10.94 11.21 36
250-LED-Ornamental 16.01 16.41 36
150-LED 8.52 8.73 24
150-LED-Ornamental 12.07 12.37 24
70-LED 5.54 5.68 13
70-LED-Ornamental 8.58 8.79 13
***
(e) Existing non-LED fixtures requiring maintenance will be replaced with
a standard LED fixture where practicable and available from inventory. Customers
desiring a change from a non-LED fixture to an LED fixture before maintenance is
required will be charged one hundred dollars ($100) per fixture for advanced
replacement.
***
(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 $.1221 $.1252 per kilowatt-hour plus the applicable energy cost adjustment
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.
***
Sec. 28.110. RENEWABLE ENERGY BUYBACK RATES.
***
(2) For all retail customers who interconnect a new system, or acquire an
existing system on or after September 1, 2025 or after, these rates apply:
***
Sec. 28.111. GEOTHERMAL SERVICES
***
(2) Geothermal Utility Rates and charges. The rates and charges to
consumers utilizing the City’s geothermal wells, to be billed on or after June 1, 2024 are
as follows:
(a) Single Customer Residential Rates.
(i) Availability. The residential rate shall apply to all single-family
customer accounts within the Baker Subdivision.
(ii) Rate per billing period. For each monthly billing period, a
residential rate customer shall be charged a rate of fifteen dollars ($15.00) per month, or
a different rate if established by resolution of the City Council.
(3) Ownership and Repair, Geothermal Service Connections.
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(b) All service connections with the City geothermal wells shall be
installed and maintained at the expense of the property to be served. Ownership of the
entire service connection remains with the title holder of the property. The City is
responsible for the wells and all piping located within the geothermal utility easement,
the homeowner is responsible for the service line located on their the owner’s property,
outside the geothermal utility easement.
***
”
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 day of , .
_____________________________ ___________________________
John A. Haila, Mayor
First Reading:
Second Reading:
Third Reading:
Passed on:
I, Renee Hall, City Clerk of the City of Ames, Iowa, hereby certify that the
above and foregoing is a true copy of Ordinance No. ______________, passed by the
City Council of said City at the meeting held on ______________________and signed
by the Mayor on ___________________________, and published in the Ames Tribune
on ___________________________.
________________________________
Renee Hall, City Clerk
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