City of Aspen. Electric Utility Revenue and Rate Structure Study. December 8, Todd Cristiano Senior Consultant. Pathways to Lasting Solutions

Transcription

1 City of Aspen Electric Utility Revenue and Rate Structure Study December 8, 2008 Todd Cristiano Senior Consultant

2 Agenda Draft For Discussion Purposes Only Service rate revenue requirements Existing rate structures Proposed rates Monthly bill comparison 2

3 Service Rate Revenue Draft For Discussion Purposes Only Rate revenue should be sufficient to fund: Annual O&M requirements Asset Management Plan (AMP) Renewable energy program Operating reserves Water fund and general fund transfers Revenue should be adjusted by $1.1 million to meet these requirements $400,000 Renewable energy program $400,000 Increased power costs $300,000 Delays on service extensions $1.1 million increase 3

4 Existing Rate Structure Draft For Discussion Purposes Only Customer Charge $ per month per Account Energy Charge $ per kwh Residential 3-tier inclining block Nonresidential Uniform for all usage Large Commercial assessed a demand charge, $ per kw of peak use for month 4

5 Existing Rate Structure Advantages Ease of administration Simple to understand Residential energy rate is conservation based Disadvantages System losses (5-7%) not charged on rational basis (i.e. Consumption is not a good measure of loss rate) Uniform energy charge for non-residential customers is not conservation based Customer charge does not allocate proportionate share of transformer repair and replacement costs 5

6 Existing 2008 Electric Rates Draft For Discussion Purposes Only Customer Class Customer Charge Demand Charge Energy Charge Small Commercial $ 9.00 $ Large Commercial $ Residential 9.00 First 700 kwh Next 1,300 kwh Over 2,000 kwh

7 Components of Rate Design Revenue requirements Customer projections Energy projections Rate structure parameters Monthly customer charge Tiered structure thresholds (block widths) Price ratios between blocks Number of blocks 7

8 2009 Proposed Rates Summary Customer charge varies based on transformer size Residential and small commercial Subdivided based on transformer size 4-tiered inclining block structure Block thresholds vary by transformer size 50% of energy consumption for each transformer size is included in 1 st block All other customer classes Uniform energy charge 8

9 2009 Proposed Rates Highlights Customer charge recover proportionate share of costs based on transformer size Recovers fixed costs (administration, billing) Transformer repair Recognizes line losses Extends tiered structure to small commercial Encourages energy conservation Fourth tier revenue funds renewable energy projects 9

10 2009 Proposed Rates Description Base 100 AMP 200 AMP 400 AMP Customer Charge, $/bill $5.20 $5.20 $10.40 $20.80 Energy Charge - Residential Block 1 $ First 500 kwh First 650 kwh First 2,000 kwh Block Next 850 kwh Next 1,050 kwh Next 2,500 kwh Block Next 1,050 kwh Next 1,800 kwh Next 3,200 kwh Block Over 2,400 kwh Over 3,500 kwh Over 7,700 kwh Energy Charge Small Commercial Block 1 $ First 1,100 kwh First 1,600 kwh First 4,200kWh Block Next 1,800 kwh Next 2,300 kwh Next 4,700 kwh Block Next 3,100 kwh Next 3,300 kwh Next 6,400 kwh Block Over 6,000 kwh Over 7,200 kwh Over 15,300 kwh Energy Charge Large Commercial Demand Charge, $/KW $6.00 Uniform Energy Charge $ All Volume All Volume All Volume 10

11 100 AMP Residential Monthly Bill 50% of customers use 400 kwh or less 20% of customers use between 400 and 700 kwh 23% of customers use between 700 and 2,100 kwh 7% of customers use above 2,100 kwh 11

12 200 AMP Residential Monthly Bill 12

13 100 AMP Commercial Monthly Bill 13

14 200 AMP Commercial Monthly Bill 50% of customers use 1,100 kwh or less 17% of customers use between 1,100 and 2,000 kwh 26% of customers use between 2,000 and 6,000 kwh 7% of customers use above 6,000 kwh 14

15 200 AMP Large Commercial Monthly Bill 15

16 400 AMP Large Commercial Monthly Bill 16

17 1,200 AMP Large Commercial Monthly Bill 17

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21 Discussion 21

22 Electric Customer Characteristics 70% 60% 50% 40% 30% 20% 10% 0% Accounts Volume Revenue Residential Commercial Large Commercial 22

23 Electric Customer Characteristics Average kwh Used by Amperage 23

24 Electric Customer Characteristics Percent of Accounts by Amperage 24

25 Electric Customer Characteristics Average kwh Used by Amperage 25

26 Electric Customer Characteristics Percent of Accounts by Amperage 26

27 Residential Energy Usage and Revenue Under Existing Rates 70% 60% 50% 40% 30% 20% 10% $ /kWh $ /kwh $ /kwh 0% Block 1 Block 2 Block 3 % Residental Accounts % Residential Revenue 27

28 Residential Energy Usage and Revenue Under Scenario A Rates 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% $0.0832/ kwh $0.0916/ kwh $0.1145/ kwh Block 1 Block 2 Block 3 Block 4 $0.1718/ kwh % of Residential Accounts % of Residential Revenue 28

29 Small Commercial Energy Usage and Revenue Under Scenario A Rates 45% 40% 35% $0.0888/ kwh $0.0976/ kwh 30% 25% 20% $0.1220/ kwh $0.1831/ kwh 15% 10% 5% 0% Block 1 Block 2 Block 3 Block 4 % of Commercial Accounts % of Commercial Revenue 29

30 Residential Energy Usage and Revenue Under Scenario B Rates 60.0% 50.0% $0.0853/ kwh 40.0% $0.0938/ kwh 30.0% 20.0% $0.1173/ kwh $0.1759/ kwh 10.0% 0.0% Block 1 Block 2 Block 3 Block 4 % of Residential Accounts % of Residential Revenue 30

31 Small Commercial Energy Usage and Revenue Under Scenario B Rates 45.0% 40.0% 35.0% $0.0916/ kwh $0.1008/ kwh 30.0% 25.0% 20.0% $0.1260/ kwh $0.1889/ kwh 15.0% 10.0% 5.0% 0.0% Block 1 Block 2 Block 3 Block 4 % of Commercial Accounts % of Commercial Revenue 31

32 Scenario B Residential Average Monthly Bill $100 $90 Monthly Bill $80 $70 $60 $50 $40 $30 $20 $10 Existing Proposed $0 100 AMP -685 kwh- Residential Customer 200 AMP -824 kwh- 32

33 Scenario A Small Commercial Average Monthly Bill $200 $180 Monthly Bill $160 $140 $120 $100 $80 $60 $40 $20 $0 Existing Proposed 100 AMP 200 AMP -1,591 kwh- -1,952 kwh- Small Commercial Customer 33

34 Scenario B Small Commercial Average Monthly Bill $200 $180 Monthly Bill $160 $140 $120 $100 $80 $60 $40 $20 $0 Existing Proposed 100 AMP 200 AMP -1,591 kwh- -1,952 kwh- Small Commercial Customer 34