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

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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

SLIDE 1

Springfield Utility Board February 10, 2016

SLIDE 2

There are two public hearings for a proposed electric

rate increase. February 10th and March 16th.

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.

SLIDE 3

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).

SLIDE 4

Total Rate Revenue

2015 Rates April 2016 Proposed Rates % Change R1 $22,452,515 $23,126,161 3.00% R1 $22,452,515 $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%

SLIDE 5

Effective Year R-1 GS-1 GS-2 GS-3 Lighting Total 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 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 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

SLIDE 6

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: $0.0522/kWh ▪ First 900 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

SLIDE 7

SLIDE 8

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.

SLIDE 9

SLIDE 10

SLIDE 11

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

SLIDE 12

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 $0.0542/kWh ▪ First 10,000 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

SLIDE 13

Current Rates

Base Charge

▪ Single Phase $33.00 ▪ Three Phase $66.00

Energy Charge

▪ October – April $0.0431/kWh ▪ May – September $0.0386/kWh ▪ May – September $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

SLIDE 14

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%.

Springfield Utility Board February 10, 2016

There are two public hearings for a proposed electric

rate increase. February 10th and March 16th.

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

Current Rates

$11.10

Proposed Rates

$12.30

$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 $0.0431/kWh ▪ May – September $0.0386/kWh ▪ May – September $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