Title
A resolution setting the Electric Cost Adjustment and Electric Capacity Charge effective November 1, 2017
Presenter:
Sonya Thieme, Rates Manager
Jerry A. Forte, P.E., Chief Executive Officer
Body
Summary:
Colorado Springs Utilities (Utilities) is requesting changes to the Electric Cost Adjustment (ECA) and Electric Capacity Charge (ECC) rates effective November 1, 2017. Consistent with the Cost Adjustment Guidelines, the proposed ECA adjustment changes the current effective rate of $0.0267 per kWh to a proposed rate of $0.0220 per kWh. The proposed ECC changes increase the rates by Rate Class consistent with capacity allocation.
Previous Council Action:
On July 25, 2017, City Council approved the current ECA rate of $0.0267 per kWh effective August 1, 2017 by Resolution 85-17. On December 8, 2015, City Council approved the current ECC rates effective January 1, 2016 by Resolution 138-15.
Background:
The ECA rate has remained at the approved level since August 1, 2017. The ECC rates have remained at the approved level since January 1, 2016. Utilities’ staff continues to provide regular updates to Utilities Board and will recommend timely adjustments to the ECA rate per the Cost Adjustment Guidelines. Utilities’ staff will conduct an annual review of ECC in July and update the Utilities Board Finance Committee and Utilities Board of any proposed adjustments.
Financial Implications:
Implementing the proposed rates will impact the respective customer’s electric bill as follows:
Monthly Electric bill:
Typical Residential electric bill decrease of $0.98 or 1.1%
Typical Commercial electric bill decrease of $9.00 or 1.6%
Typical industrial electric bill decrease of $960.00 or 2.9%
Board/Commission Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move adoption of the proposed resolution.
Summary of Ordinance Language
N/A