Title
A resolution setting the Electric Cost Adjustment effective May 1, 2017
Presenter:
Bill Cherrier, Chief Planning and Finance Officer
Body
Summary:
Colorado Springs Utilities (Utilities) is requesting a change to the Electric Cost Adjustment (ECA) rate effective May 1, 2017. Consistent with Cost Adjustment Guidelines, the adjustment proposes an ECA rate of $0.0195 per kWh which is $0.0027 less per kWh than the current effective rate of $0.0222 per kWh.
Previous Council Action:
On February 28, 2017, City Council approved the current ECA rate of $0.0222 per kWh effective March 1, 2017 by Resolution 28-17.
Background:
Utilities sought approval for the current effective ECA rate of $0.0222 per kWh at the February 28, 2017 City Council meeting. The ECA rate has remained at the approved level since March 1, 2017. 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:
Implementing the proposed ECA rate will impact the respective customer’s electric bill as follows:
Monthly electric bill:
Typical Residential electric bill decrease of $1.62 or 2.2%
Typical Commercial electric bill decrease of $16.20 or 3.0%
Typical Industrial electric bill decrease of $1,080.00 or 3.4%
Board/Commission Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
No Adjustment to the current ECA rate of $0.0222 per kWh.
Recommended Action
Proposed Motion:
Move adoption of the proposed resolution.
Summary of Ordinance Language
N/A