Download
non utility costs in utility bills n.
Skip this Video
Loading SlideShow in 5 Seconds..
Non-Utility Costs in Utility Bills PowerPoint Presentation
Download Presentation
Non-Utility Costs in Utility Bills

Non-Utility Costs in Utility Bills

92 Views Download Presentation
Download Presentation

Non-Utility Costs in Utility Bills

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Non-Utility Costs in Utility Bills M. Sarafolean J. Kaman Iowa Industrial Energy Group Meeting April 9, 2013

  2. Utility Bills • Special Riders, Surcharges • Above Market PPAs • Cross Class Subsidies • Taxes • City Franchise Fees

  3. Bill Markup More to come…

  4. Riders • Renewable development funds • Energy efficiency charges • Special pollution surcharges - externalities • Carbon surcharges • System/Public Benefits Funds

  5. Administrative Code - Riders • Specifies criteria for whether a rider could apply [e.g. electric rates 199 IAC 20.9(1)] • Incurred in supplying energy • Beyond direct control of management • Subject to sudden important change in level • Important factor in total cost to serve • Segregated in utility accounts • Recent Iowa examples • Alliant’s electric Energy Adjustment Clause (EAC), electric utility AEPs • Electric (and Gas) EECRs, 199 IAC 35.12 • Capital Infrastructure, e.g. 199 IAC 19.18 (gas)

  6. Tariff • Cities Served - Electric Service territory map http://www.iowadot.gov/maps/msp/electrical/electrical.html • Riders • Franchise Fees imposed

  7. Above Market PPAs • Wind power mandates • Solar power mandates • Other PPA embedded cost risk

  8. Cross Class Subsidies • Built into IOU cost of service allocations • Tiered kWh purchases • Allocation of variable costs to demand charges • Increased CP events

  9. Taxes • Phantom income taxes • State and Federal taxes included in base rates but never paid to States and the Feds. • Local taxes on utility assets • State and local sales taxes on utility revenues

  10. Fees • Municipal fees • Low income assessments • Meter charges • Customer charges • City franchise fees

  11. Utility Franchise Fees • By the CITY • In lieu of municipalization? • Des Moines franchise fee lawsuit • Iowa Code 480A (local option) and 364.2 (franchise fees) – mutually exclusive • Now (since 2009): • Up to 5% without proving costs are for “inspecting, supervising, and otherwise regulating…” the franchise • Can use excess for property tax relief, public improvements, low-income energy conservation, public safety, public works and transportation, streets, economic development….

  12. A Story About Waterloo… • Cities need revenue, property tax concerns in Iowa • Energy bill taxes are disproportionate to industry/employers • Appears can: • Modify for different customer classes • Apply to Electric, Nat Gas, Telecom, (etc.) any combination or none • Apply a cap per customer

  13. Non-Utility Costs in Utility Bills M. Sarafolean J. Kaman Iowa Industrial Energy Group Meeting April 9, 2013