Springfield Utility Board February 10, 2016 There are two public - PowerPoint PPT Presentation

Springfield Utility Board February 10, 2016

� There are two public hearings for a proposed electric rate increase. February 10 th and March 16 th . � During the discussions with the SUB Budget Committee, the Board provided direction to spread a recommended rate increase out in smaller phases. The 2016 Budget rate increase out in smaller phases. The 2016 Budget assumed a 3.0% increase in electric rates effective April 1, 2016. � BPA’s Transmission and Power rates will be increasing and represent ~66% of total Electric Utility Costs. � SUB’s 10-Year Plan contains increased Capital costs due to investment in infrastructure.

� BPA provided additional information on proposed power and transmission rate increases effective October 1, 2015 and October 1, 2017 � The 2016 budget process assumes the return of the Swanson load. the Swanson load. � The 10-Year Plan presented to the budget committee assumed larger electric rate increases every other year. � Based on input from the committee and the Board, the recommendation is to plan for smaller increases every year. (e.g. 3% for 2016, 2017, 2018, and 2019).

Total Rate Revenue April 2016 % 2015 Rates Proposed Rates Change R1 R1 $22,452,515 $22,452,515 $23,126,161 3.00% $23,126,161 3.00% GS1 $3,937,268 $4,055,887 3.01% GS2 $14,534,712 $14,970,510 3.00% GS3 $3,016,257 $3,107,185 3.01% L1 $275,713 $283,984 3.00% L2 $24,878 $25,624 3.00% L3 $131,039 $134,971 3.00% $45,080,165 $46,434,439 3.00%

Effective R-1 GS-1 GS-2 GS-3 Lighting Total Year 2006 2.82% 2.82% 2.78% 2.40% 1.40% 2.75% 2007 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2008 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2009 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 2010 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2011 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2012* 8.50% 8.49% 8.50% 8.50% 8.50% 8.50% 2013 4.00% 4.00% 4.00% 3.90% 4.00% 4.00% 2014 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2015 3.02% 3.07% 2.98% 2.98% 3.00% 3.00% 2016** 3.00% 3.01% 3.00% 3.01% 3.00% 3.00% 21.34% 21.39% 21.26% 20.79% 19.90% 21.25% * Note: 2012 had two increases to total 8.50% ** Proposed April 1, 2016 change

� Current Rates � Base Charge: $11.10 � Energy Charge ▪ October - April ▪ First 1,500 kWh: $0.0522/kWh ▪ 1,501+ kWh: $0.0582/kWh ▪ May - September ▪ First 900 kWh: ▪ First 900 kWh: $0.0522/kWh $0.0522/kWh ▪ 901+ kWh: $0.0552/kWh � Proposed Rates � Base Charge: $12.30 � Energy Charge ▪ October - April ▪ First 1,500 kWh: $0.0527/kWh ▪ 1,501+ kWh: $0.0607/kWh ▪ May - September ▪ First 900 kWh: $0.0527/kWh ▪ 901+ kWh: $0.0567/kWh Average Monthly Bill Increase $1.91 �

� The 3% overall increase in revenues for the proposed residential rates reflects: � An increase of $1.20 to the base charge (this is expected to reflect half of the increase in revenue from the residential class) � Increases in usage charges (this is expected to reflect � Increases in usage charges (this is expected to reflect half of the increase in revenue from the Residential class) � Under 2015 (current) rates, the residential base charge collects ~16.4% of total residential electric revenue. � Under the proposed rates, the residential base charge collects ~17.6% of total residential electric revenue.

� Current Rates � Base Charge ▪ Single Phase: $18.60 ▪ Three Phase: $35.10 � Energy Charge ▪ October – April (all kWh): $0.0564/kWh ▪ October – April (all kWh): $0.0564/kWh ▪ May – Sept (all kWh): $0.0501/kWh � Proposed Rates � Base Charge ▪ Single Phase: $20.40 ▪ Three Phase: $38.70 � Energy Charge ▪ October – April (all kWh): $0.0571/kWh ▪ May – Sept (all kWh): $0.0508/kWh

Current Rates � � Base Charge ▪ Single Phase $33.00 ▪ Three Phase $66.00 � Energy Charge ▪ October – April ▪ First 10,000 kWh $0.0608/kWh ▪ 10,001+ kWh $0.0448/kWh ▪ May – September ▪ ▪ First 10,000 kWh First 10,000 kWh $0.0542/kWh $0.0542/kWh ▪ 10,001+ kWh $0.0350/kWh � Demand Charge (over 35 kW) $6.40/kW Proposed Rates � � Base Charge ▪ Single Phase $38.70 ▪ Three Phase $78.30 � Energy Charge ▪ October – April ▪ First 10,000 kWh $0.0628/kWh ▪ 10,001+ kWh $0.0463/kWh ▪ May – September ▪ First 10,000 kWh $0.0560/kWh ▪ 10,001+ kWh $0.0361/kWh � Demand Charge (over 35 kW) $6.40/kW

� Current Rates � Base Charge ▪ Single Phase $33.00 ▪ Three Phase $66.00 � Energy Charge ▪ October – April $0.0431/kWh ▪ May – September ▪ May – September $0.0386/kWh $0.0386/kWh � Demand Charge (all kW) $6.40/kW � Proposed Rates � Base Charge ▪ Single Phase $38.70 ▪ Three Phase $78.30 � Energy Charge ▪ October – April $0.0448/kWh ▪ May – September $0.0403/kWh � Demand Charge (all kW) $6.40/kW

� Addition of $0.10 Infrastructure Charge to Street Lighting Schedule (L-1) � Energy Charge for all Lighting customers increased by 3.0% � Combined, the infrastructure charge and the increase in energy charge results in an overall increase of 3%.

� No action requested after this public hearing. There will be another public hearing March 16, 2016. � New rates to be effective on customer bills rendered on or after April 1, 2016. � Staff is available to answer questions after this presentation, as well as during consideration of public comments.