NEW SERVICE OPTIONS TARIFF INTRODUC TION BY : Carolyn Shellman - - PowerPoint PPT Presentation

NEW SERVICE OPTIONS TARIFF

INTRODUC TION BY : Carolyn Shellman Chief Legal & Administrative Officer (CL&AO) P RE SE NTED BY : Chad Hoopingarner

• Sr. Director, Strategic Pricing & Cost Recovery

September 24, 2018 Approv al Requ est ed

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AGENDA

• REGULATORY OVERVIEW
• PILOT PROGRAM (NEW SERVICE OPTIONS

TARIFF)

• COMMERCIAL EV PILOT RATE

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REGULATORY OVERVIEW

• To provide products & services to our customers, we must set pricing (i.e., rates) based
• n the utility’s cost to provide those products & services
• Our rates, along with the underlying terms & conditions (i.e., tariffs), are approved by

the Board of Trustees and City Council

• Our industry is undergoing significant change, creating opportunities for CPS Energy to

serve customers in new & exciting ways

• To optimize these opportunities, we need the ability to test products & services in order

to ensure that we are meeting customer expectations, recovering our costs, and

• ptimizing the community’s investment in the electric & gas infrastructure

Concept Pilot Refine BOT & Council Approval Launch

Once a successful pilot is concluded, we will be required to seek approval from the Board and City Council on new rates & tariffs

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PILOT PROGRAM

NEW SERVICE OPTIONS TARIFF (NSO)

• We are seeking approval from the Board of Trustees and City Council on the

New Service Options tariff

• The NSO tariff is an umbrella tariff that enables CPS Energy to conduct

product pilots by defining:

– Requirements for launching new product pilots – Accountability & oversight procedures with COSA’s Office of Public Utilities

• Your approval will enable CPS Energy to:

– Evaluate technologies & assess changing customer needs – Measure the cost of service requirements

The NSO tariff creates a testing framework for new products & services to be rapidly developed and offered to customers

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PILOT PROGRAM

NSO Tariff

Commercial EV Rate Pilot Pilot #2 Pilot #3 Pilot #4 Pilot #5 Future rate pilots may include:

• Smart Cities initiatives (e.g., kiosks)
• Resiliency products
• Commercial EV fleet opportunities
• Intelligent lighting projects
• Growth tools for gas business

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COMMERCIAL EV RATE PILOT (1 OF 2)

• We want to enable the positive

impacts of electric vehicles on San Antonio’s air quality and electric system

• Our strategy is to encourage and

incentivize “off-peak” usage of our system

• “Off-peak” load optimizes existing

assets and reduces capital investment

1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

1 AM 4 AM 7 AM 10 AM 1 PM 4 PM 9 PM 12 AM

MW

Summer Weekday System Load (Conceptual)

EV Load Assets designed to meet peak system needs. Current Load

CPS Energy System Peak

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COMMERCIAL EV RATE PILOT (2 OF 2)

Monthly Charge: Demand Charge: Energy Charge: 4pm-9pm on weekdays: All other times of day: $175/month $7/kW 20¢/kWh 6¢/kWh Commercial EV Rate Details

12 6 3 5 8 7 2 1 10 11 4 9

CPS Energy will assess the effectiveness of this rate over ~1-2 years

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Approve the New Service Options tariff to ensure that we are meeting customer expectations, recovering

• ur costs, and optimizing the community’s

investment in the electric & gas infrastructure

REQUEST FOR APPROVAL

NEW SERVICE OPTIONS TARIFF (NSO)

Thank You