1 / 15

Jefferson County PUD

Jefferson County PUD. Commission Briefing on Cost of Service and Rate Design Issues September 10, 2014. Presented by: Gary Saleba, President EES Consulting, Inc. A registered professional engineering and management consulting firm with offices in Kirkland, WA and Portland, OR.

laird
Télécharger la présentation

Jefferson County PUD

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Jefferson County PUD Commission Briefing on Cost of Service and Rate Design Issues September 10, 2014 Presented by: Gary Saleba, President EES Consulting, Inc. A registered professional engineering and management consulting firm with offices in Kirkland, WA and Portland, OR

  2. Overview of this Presentation • Introductions and Session Objectives • Overview of Rate Setting Process • Revenue Requirements • Assumptions • Results • Cost of Service Study • Methodology • Initial Results • Rate Design • Inherited from PSE • Rates Should Follow Costs • Recommended Changes

  3. Overview of Rate Setting Process

  4. Revenue Requirements • Based on 2015 Budget • Load Forecast Based on BPA Forecast of Purchases • Cash Basis • Includes debt service and all capital improvements funded from rates • Excludes City utility taxes from revenue and expenses • Other revenues offset revenues to be collected from rates • Used for Cost of Service/Rates • Does not include funding from reserves, weather uncertainty, other factors that may impact the need for a rate change • Issues • Level and use of reserves • Funding source for capital improvements

  5. Revenue Requirements (cont’d)

  6. Cost of Service Analysis Introduction • Based on 2015 Revenue Requirement • Costs Distributed to Customer Classes based on Cost Causation • Demand-related, Energy-related and Customer-related • Requires Assumptions About Customer Usage for Each Class • Revenues Calculated Based on Current Rate Components • Expect Differences from PSE • PSE has large service area with larger customers and different density • Also underlying differences due to power supply source compared to PSE

  7. Cost of Service Analysis Results • Residential/Farm Classes • Residential paying about 90% of costs • Not much difference in costs between residential and farm use • Cost roughly 12.4 cents/kWh • General Service Classes • General service paying 120% to 160% of costs • Costs roughly 7.5 cents/kWh – not much difference among current general service rate schedules • Other Classes • Irrigation and lighting hard to measure in a COSA • Interruptible schools paying less than general service, but costs are higher • PTP paying 99% of costs

  8. Rate Design Issues • Continue with PSE Rate Form or Go to PUD-Specific Design? • Size of Customer Charge • Blocking of Energy Charge • Seasonality • Number of Schedules • Net Metering • Street Lights • Irrigation Rate Treatment • Low Income/Elderly Rate Assistance

  9. Rate Design Detail • Schedule 7 – Residential • Raise the customer charge to meet expected COSA results? • Eliminate or reduce the differential between blocks so that it only reflects difference in BPA Tier 1 and 2 • Reducing the Block 2 rate would require either an increase in Block 1 rate or customer charge • Example: $16.77 plus 8.62 cents or $23.60 plus 7.98 cents • Schedule 8 – Residential and Farm General Service • No need for a separate rate? • No reason to believe their costs are different than typical residential

  10. Rate Design Detail (cont’d) • Schedule 24 – General Service • Raise the customer charge to meet expected COSA results? • Rate differential should match BPA differential • Example: $22.90 plus 8.8 cents or $26.13 plus 8.62 cents • Schedule 25 – Medium General Service • Rate has too many components • Suggest eliminating the blocks – not consistent with cost causation • Change demand charge to reflect all peak demand (not just over 50 kW) • Make sure demand and energy components match COSA to get right price signals for load factor • Not sure three GS rates are needed – combine with Rate 26

  11. Rate Design Detail (cont’d) • Schedule 29 – Seasonal Irrigation & Drainage Pumping Service • Rate has too many components • Suggest eliminating the blocks – not consistent with cost causation • Change demand charge to reflect all peak demand (not just over 50 kW) • Make sure demand and energy components match COSA to get right price signals for load factor

  12. Rate Design Detail (cont’d) • Schedule 26 – Large General Service • Combine with Rate 25 • Schedule 31 – Primary General Service • Combine with Rate 25/26 with primary meter discount?

  13. Rate Design Detail (cont’d) • Schedule 43 – Interruptible Total Electric Schools • Eliminate rate? • No benefit for interruptible customers with BPA as provider • Street Lights • Rate for light • Rate for pole • What about specialty street lights?

  14. Rate Design Detail • Timing • Change when new billing system is put in place • Audit accounts and do customer bill analysis in mean time • Work towards making sure customers are on the right rate and have the proper meter

  15. Summary/Conclusion • Need to Finalize Budget and How to Pay for Capital/Reserve Fund Policy • Basic COSA is Sufficient for Now • Simplify Rates Along with New Billing System, Minor Adjustments Between Classes

More Related