Title
A Resolution Setting the Electric Cost Adjustment Effective January 1, 2016
Body
From:
Jerry Forte, P.E., CEO, Colorado Springs Utilities
Summary:
Colorado Springs Utilities (Utilities) is requesting a change to the Electric Cost Adjustment (ECA) rate. Current cost projections have decreased forecasted fuel and purchased power expenses. To maintain financial stability and minimize the fluctuations associated with less frequent adjustments during periods of price volatility, Colorado Springs Utilities recommends an ECA rate change from the rate of $0.0249 per kWh to a proposed rate of $0.0229 per kWh effective January 1, 2016.
Previous Council Action:
On December 8, 2015, City Council resolved to set the ECA at the rate of $0.0249 per kWh effective January 1, 2016.
Background:
Colorado Springs Utilities sought approval for the current ECA rate of $(0.0005) per kWh at the March 24, 2015 City Council meeting. The ECA rate has remained at the approved level since April 1, 2015. As a component of a fuel and non-fuel rate proceeding filled with City Council on September 22, 2015, Utilities proposed changes to the ECA that restructured and lowered the ECA rate to $0.0249 per kWh effective January 1, 2016. The Rate Hearing on the proposed changes was held on November 22, 2015 with City Council Decision and Orders occurring on December 8, 2015. Colorado Springs Utilities staff continues to provide regular updates to the Utilities Board on the collected balance, and will recommend timely changes to the ECA rate as is deemed appropriate.
Colorado Springs Utilities has performed the ECA calculation in conformance with the language in the ECA tariff.
Financial Implications:
Implementing the proposed ECA rate will impact the respective customer's bill as follows:
Monthly Electric bill:
Typical residential bill at 600 kWh = ($1.20) or (1.6%)
Typical commercial bill at 6,000 kWh = ($12.00) or (2.3%)
Typical indust...
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