Title
A resolution setting the Electric Contract Service - Military Wheeling Demand Charge effective August 1, 2018
Presenter:
Sonya Thieme, Rates Manager
Eric Tharp, Acting Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (Utilities) is proposing a change to the Electric Contract Service - Military Wheeling (ECW) Demand Charge effective August 1, 2018. The proposed change would reduce the current rate of $0.0711 per kW per day to a rate of $0.0669 per kW per day. This change has no adverse impact on customers, so the resolution can be filed without notice and public hearing in accordance with Colorado Springs City Code § 12.1.108(D)(2)(f).
Previous Council Action:
On November 28, 2017, City Council approved the current ECW rate of $0.0711 per kW per day effective January 1, 2018 by Resolution 135-17.
Background:
Service under the ECW Electric Rate Schedule is available to the Department of Defense (DoD) for the purpose of wheeling hydro power from the Western Area Power Administration and the Southeastern Colorado Water Conservancy District to DoD Customers. The proposed reduction is a result of a collaborative review between Utilities and the DoD, which identified a duplication of approximately $11,000 annually in a cost allocation. The Office of City Auditors has also reviewed the calculations with no exceptions. Colorado Springs Utilities proposes lowering the ECW Wheeling Demand Charge, per kW, per day rate from $0.0711 to $0.0669 with an effective date of August 1, 2018.
Financial Implications:
The proposed rate reduction eliminates a duplication of charges of approximately $11,000.
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