SCC PRESENTATION TO THE COMMISSION ON ELECTRIC UTILITY REGULATION - - PowerPoint PPT Presentation
SCC PRESENTATION TO THE COMMISSION ON ELECTRIC UTILITY REGULATION DECEMBER 4, 2017 1 Total Monthly Bill Typical Residential Customer using 1,000 kWh Monthly July 1, 2007 to July 1, 2017 2007 2017 $117.20 $115.25 29% increase 73%
1
December 4, 2017 2
$66.61 $90.59 $115.25 $117.20
APCo DEV
Typical Residential Customer using 1,000 kWh Monthly July 1, 2007 to July 1, 2017 2007 2017
73% increase 29% increase
December 4, 2017 3
$13.12 $22.32 $23.01 $23.83 APCo DEV Fuel
Typical Residential Customer using 1,000 kWh Monthly July 1, 2007 to July 1, 2017 2007 2017
75% increase
7% increase
December 4, 2017 4 Coal
75% Natural Gas 0% Hydro 1% Affiliate/Other Purchases 24%
2007
Coal 69% Natural Gas 14% Hydro 2% Wind PPA 3% Market/ Other Purchases 12%
2017
December 4, 2017 5
Nuclear 29% Coal 36% Natural Gas 6% Oil 2% Renew. 0% NUG/PJM 27%
2007
Nuclear 32% Coal 25% Natural Gas 31% Oil 1% Renew.… NUG/PJM 9%
2016
December 4, 2017 6
Before “Shale Revolution” “Polar Vortex” Winter “Shale Revolution” Lowers The Cost To Produce Natural Gas
Source: Drilling Info., Inc.
December 4, 2017 7
$1.84 $0.00 $14.84 $18.07 APCo DEV RACs
Typical Residential Customer using 1,000 kWh Monthly July 1, 2007 to July 1, 2017 2007 2017
11 Total RACs 1 RAC 5 Total RACs
December 4, 2017 8
$51.65 $68.27 $77.40 $75.30 APCo DEV Base Rates
Typical Residential Customer using 1,000 kWh Monthly July 1, 2007 and July 1, 2017 2007 2017
50% increase 10% increase
December 4, 2017 9
Earned ROE Revenue Increases/ (Returned to Customers) Commission Proceedings 2007 Base Rate Case 5.33% $167,900,000 2008 Initial Rate Case 2.01% $61,500,000 2009/2010 First Biennial Review 4.69% $55,100,000 2012/2013 Second Biennial Review 11.86% ($5,800,000) Informal Filings provided during Base Rate Freeze 2014 Informational Filing 7.86% N/A 2015 Informational Filing 11.84% N/A 2016 Informational Filing 11.09% N/A
Commission-determined (Returned to Customers)/ Earned ROE Future Recovery Deferral Commission Proceedings 2008 Initial Rate Case 16.73% ($726,000,000) 2009/2010 First Biennial Review 13.31% ($78,300,000) 2011/2012 Second Biennial Review 10.25% $22,700,000 2013/2014 Third Biennial Review 10.89% ($19,700,000) Informal Filings provided during Base Rate Freeze Company-filed Earned ROE 2015 Informational Filing 11.00% N/A 2016 Informational Filing 12.87% N/A
December 4, 2017 10
Congress is considering reducing the Federal Income Tax rate from 35% to 20% for companies Base Rate Tax Savings Estimates:
The tax savings arising from base rate earnings would remain with shareholders during the base rate freeze
December 4, 2017 11
December 4, 2017 12
$9.89 $9.89 $13.00 $13.00 $25.75 $25.75 Fuel RACs Base Rates Total
APCo
Typical Residential Bill Increase using 1,000 kWh Monthly July 1, 2007 to July 1, 2017 $48.64
December 4, 2017 13
$1.51 $1.51
$18.07 $18.07 $7.03 $7.03 Fuel RACs Base Rates Total
DEV
Typical Residential Bill Increase using 1,000 kWh Monthly July 1, 2007 to July 1, 2017 $26.61
December 4, 2017 14