Title
A Resolution Setting the Electric Cost Adjustment Effective February 1, 2017
Presenter:
Sonya Thieme, Rates Manager
Jerry Forte, P.E., Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (Utilities) is proposing no change to the current effective Electric Cost Adjustment (ECA) rate of $0.0273 per kWh based on rate calculations consistent with routine rate adjustment procedure defined in the Cost Adjustment Guidelines.
Previous Council Action:
On October 25, 2016, City Council approved the current ECA rate of $0.0273 per kWh effective November 1, 2016 by Resolution 109-16.
Background:
Utilities sought approval for the current effective ECA rate of $0.0273 per kWh at the October 25, 2016 City Council meeting. The ECA rate has remained at the approved level since November 1, 2016. Utilities' staff continues to provide regular updates to the Utilities Board and will recommend timely adjustments to the ECA rate per the Cost Adjustment Guidelines. ECA rate calculations are in conformance with the ECA tariff.
Financial Implications:
There are no identified financial implications. In the event the actual over/(under) collection balance exceeds the $5.0 million Band of Reasonableness measurement defined in the Cost Adjustment Guidelines, an evaluation of a non-routine rate action would be triggered.
Board/Commission Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
The ECA Alternative is not in compliance with the Cost Adjustment Guidelines and proposes a rate of $0.0244 per kWh that is $0.0029 per kWh less than the current effective rate of $0.0273 per kWh effective February 1, 2017.
Implementing the ECA Alternative rate will impact the respective customer's electric bill as follows:
Monthly Electric bill:
Typical Residential electric bill increase of $(1.74) or (2.2)%
Typical Commercial electric bill increase of $(17.40) or (3.1)%
Typical industrial elec...
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