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HomeMy WebLinkAbout2273ORDINANCE NO. L 7 3 AN ORDINANCE of the City of Port Angeles altering the rates for the sale of electricity; establishing the electrical rate for municipal water pumping facilities; amending Sections 3 of Ordinance 2054 as most recently amended by Section 1 of Ordinance 2260; amending Section 4 of Ordinance 2054 as most recently amended by Section 2 of Ordinance 2260; amending Section 6 of Ordinance 2054 as most recently amended by Section 3 of Ordinance 2260; amending Section 2 of Ordinance 2173 as most recently amended by Section 1 of Ordinance 2267; amending Section 3 of Ordinance 2173 as most recently amended by Section 5 of Ordinance 2232; amending Sections 13.12.030, 13.12.040, 13.12.060, 13.12.071 and 13.12.072 of the Port Angeles Municipal Code; and adding a new Section 13.12.073 to the Port Angeles Municipal Code. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DOES ORDAIN as follows: Section 1. Section 3 of Ordinance 2054 as most recently amended by Section 1 of Ordinance 2260, and Section 13.12.030 of the Port Angeles Municipal Code are each amended to read as follows: 13.12.030 Schedule R4 - Residential Service. A. Applicability. This schedule applies throughout the City for domestic uses in single - family residences, individual apartments or farms. Separately metered services incidental to single- family residential and farm service may be served under this schedule. B. Character of Service. Sixty cycle, alternating current, 120/240 volts nominal, single phase service will be furnished under this schedule, supplied through a single meter and one point of delivery. C. Rate: 1. Basic Charge 2. Energy Charge $5.00 $0.0352 per kWh Section 2. Section 4 of Ordinance 2054 as most recently amended by Section 2 of Ordinance 2260, and Section 13.12.040 of the Port Angeles Municipal Code are each amended to read as follows: 13.12.040 Schedule G4 - General Service. A. Applicability. This schedule applies to all customers not covered under other schedules in Chapter 13.12 PAMC. • B. Character of Service. Sixty cycle, alternating current at such phase and voltage as the City may have available will be furnished under this schedule, applied through a single meter and one point of delivery. C. Rate: 1. Basic Charge: a. Single Phase b. Three Phase 2. Monthly Energy Charge: a. 0 - 20,000 kWh b. All kWh over 20,000 3. Monthly Demand Charge: a. Billing demand for each month shall be the maximum 15- minute demand for the month after adjustment for power factor. b. 0 - 50 kW of billing demand: no charge c. All kW over 50 kW of billing demand: $10.00 per month $25.00 per month $ 0.0350 per kWh $ 0.0225 per kWh $5.50 per kW Section 3. Section 6 of Ordinance 2054 as most recently amended by Section 3 of Ordinance 2260, and Section 13.12.060 of the Port Angeles Municipal Code are each amended to read as follows: 13.12.060 Schedule IP4 - Industrial Primary. A. Applicability. This schedule applies to industrial, manufacturing and processing plants when connected load is greater than one thousand kilowatts. B. Character of Service. Service to be furnished under this schedule is unregulated three phase, sixty cycle, alternating current at primary voltage, 12.5 KV nominal. Service under this schedule shall be provided and measured at the point(s) of interconnection of the distribution facilities of the customer and the City. C. Rate: 1. Billing demand for the month shall be the maximum one hour demand for the month, after adjustment for power factor, or one thousand kilowatts, whichever is greater. 2. Monthly Demand Charge: a. Heavy load period demand charges: The maximum one -hour demand occurring during the hours of 7:00 A.M. through 2 :00 P.M., Monday through Friday, after adjustment for power factor. i. December - April: $6.56 per kW of billing demand ii. May - November: $4.03 per kW of billing demand b. Intermediate Period Load Demand Charges: The maximum one -hour demand in excess of heavy load demand which occurs during the hours of 2:00 P.M. through 10:00 P.M., Monday through Saturday, after adjustment for power factor. The maximum amount of demand available at this rate shall be limited to 20% of the actual demand occurring in the heavy load period or two thousand kilowatts, whichever is greater. -2- i. December - April: $3.28 per kW of billing demand ii. May - November: $2.02 per kW of billing demand Demand greater than the above limits will be billed at the heavy load period rate. c. Light load period demand charges: The maximum one -hour demand occurring during the hours of 10:00 P.M. through 7:00 A.M. Monday through Saturday and all hours Sunday in excess of billing demand occuring during heavy or intermediate load hours after adjustment for power factor. $1.43 per kW of billing demand. 3. Monthly Energy Charge: a. September - March $0.0191 per kWh b. April - August $0.0160 per kWh 4. Metering Charge: Where more than one metering point is established at the request of, and benefit to, the customer, a metering charge of $150 per month shall apply, and billing demand shall be calculated by combining the demand readings coincidentally. Section 4. Section 2 of Ordinance 2173 as most recently amended by Section 1 of Ordinance 2267, and Section 13.12.071 of the Port Angeles Municipal Code are each amended to read as follows: 13.12.071 Schedule IT4 - Industrial Transmission. A. Applicability. This schedule applies to industrial, manufacturing and processing plants, for power delivered at transmission voltage. B. Character of Service. Service to be furnished under this schedule is unregulated three phase, sixty cycle alternating current at transmission voltage, 69 KV nominal. Service under this schedule shall be provided and measured where the customer's facilities interconnect with the facilities of the City and the Bonneville Power Administration (BPA). C. Rate: 1. Billing demand for the month shall be the maximum one hour integrated demand (actual demand) for the month, after adjustment for power factor. 2. Monthly Demand Charge: a. Heavy Load Period Demand Charges: Maximum one hour demand occurring during the hours of 7:00 A.M. through 2:00 P.M., Monday through Friday, after adjustment for power factor. December - April $5.82 per kW of billing demand May - November $2.82 per kW of billing demand b. Intermediate Load Period Demand Charges: The maximum one hour demand in excess of heavy load period demand which occurs during the hours of 2:00 P.M. through 10:00 P.M., Monday through Friday, and which occurs during all hours Saturday, after adjustment for power factor. The maximum amount of demand available at this rate -3- shall be limited to 20% of the actual demand occurring in the heavy load period or two thousand kilowatts, whichever is greater. December - April $2.91 per kW of billing demand May - November $1.41 per kW of billing demand Demand greater than the above limits will be billed at the heavy load period rate. c. All other hours: No charge 3. Monthly Energy Charge: a. September - March $0.0179 per kWh b. April - August $0.0149 per kWh Section 5. Section 3 of Ordinance 2173 as most recently amended by Section 5 of Ordinance 2232, and Section 13.12.072 of the Port Angeles Municipal Code are each amended to read as follows: 13.12.027 - Schedule L2 - Lighting. A. Applicability. This schedule applies to all approved unmetered yard and area lights. B. Installation. Yard or area lights are available upon request. Upon approval by the City Light Department, lights will be installed and energy furnished on private or public property, for the use and convenience of customers. A one year contract for service will be required before the light will be installed. Costs of additional poles and /or line extensions necessary to provide for lighting shall be charged to the customer at the time of installation or removal. C. Maintenence. If the City Department retains ownership of the area lighting, the maintenance of such lights shall be the responsibility of the City Light Department. If the customer retains ownership of the area lighting, the maintenance of such lights shall be the responsibility of the cutomer. D. Rate. 1. Lighting which remains in City Light Department ownership: a. 175 watts or less: $ 8.75 per month b. More than 175 watts, but 250 watts or less: 9.25 per month c. More than 250 watts, but 400 watts or less: 10.50 per month d. More than 400 watts, but 1000 watts or less: 15.00 per month 2. Lighting which remains in customer ownership: a. 175 watts or less: $ 3.50 per month b. More than 175 watts, but 250 watts or less: 4.00 per month c. More than 250 watts, but 400 watts or less: 5.50 per month d. More than 400 watts, but 1000 watts or less: 9.75 per month Section 6. A new section is hereby added to Chapter 13.12 of the Port Angeles Municipal Code, to read as follows: -4- • • Section 13.12.073 - Schedule MW1 - Municipal Water Pumping. A. Applicability. This schedule applies to municipal water pumping facilities where the connected load is greater than 500 kilowatts. Timers approved by the City Light Department shall be installed to prevent pumping during restricted hours as determined by the City Light Department. B. Character of Service. Service to be furnished under this schedule is three phase, sixty cycle, alternating current at available voltage. C. Rate. 1. Billing demand for the month shall be the maximum 15- minute demand for the month, after adjustment for power factor. 2. Monthly demand charge: a. Demand occurring during the hours of 10 :00 P.M. through 7:00 A.M., Monday through Saturday and all hours Sunday, and other hours as approved by the City Light Department: No charge, except when the power factor adjustment results in a billing demand greater than actual demand, the difference shall be charged at the demand rates applicable for all other hours. b. All other hours: December - April: $5.80 per kW of billing demand May - November: $2.52 per kW of billing demand 3. Monthly energy charge: $0.030 per kWH Section 7 - Effective Date. This Ordinance shall take effect on November 1, 1983. PASSED by the City Council of the City of Port Angeles at a regular meeting of the Council held on the 18th day of October, 1983. ATTEST:- ems, 0,47 Merri.A. Lannoye, City Cler APPROy D AS TO FORM: Craig D. nutson, City Attorney PUBLISHED: ze MM A �P OR MEMORANDUM September 15, 1983 TO: City Council &ROM: City Attorney RE: Long -Term Conservation Contracts The purpose of this memorandum is to bring to your attention the most sig- nificant legal issues that relate to the signing of the long -term conserva- tion contracts with the Bonneville Power Administration (BPA). These issues have been raised in several meetings that have been attended by attorneys for various northwest electric utilities. These issues relate primarily to the "contract charge ". For a discussion of what the contract charge is, see the September 20, 1983, memorandum to the City Council from Tamasin Sterner and Richard L. French regarding con- servation programs. 1. Unilateral Modification. One of the bothersome features of the long -term conservation contracts is that thet may be unilaterally modified by BPA. This raises the problem, most specifically with regard to the contract charge, as to the enforce- ability of a contract change that is unsupported by additional considera- tion and a mutual change of obligations. The simple response to this concern is that the contracts may be terminated by the City in the event a modification by BPA is unacceptable. (However, the City would have to pay an alternate charge, which is discussed below.) 2. Open - Endedness of Contract Charge. There is some uncertainty as to what the exact amount of the contract charge will be. This is because the method of calculating the contract charge will not be final until the BPA director makes his final decision in the current rate case, which is due September 30, 1983. The legal situa- tion here is similar to the participants' agreements with the Washington Public Power Supply System ( WPPSS), which were invalidated by the Washing- ton State Supreme Court in Chemical Bank v. WPPSS, et al, Wn.2d , (1983) . The long -term conservation contracts are distinguishable from the partici- _pants' agreements, however, because there is no possibility that the City Wall receive nothing by entering into these contracts. The City will re- eive conservation program funding from BPA. Although the amount that the City must pay through the contract charge is uncertain at this point, it is known that the City's contract charge will be relatively insignificant com- pared with the amount that the City will be paying BPA through its rates for the conservation programs whether the contracts are entered into, and the programs are funded, or not. Additionally, there is some uncertainty as to how the alternate charge will be calculated. However, BPA has given assurances that the alternate charge will be limited to actual costs incurred up to the date that the utility elects to terminate the contract(s). This is what the contracts themselves provide. 3. BPA Authority to Implement the Contract Charge. oncern has been expressed that BPA's statutory authority allows it to raise revenue through setting rates but does not give BPA any authority to raise revenue in other ways, such as through the contract charge in the long -term conservation contracts. The response of BPA'a attorneys is that the contract charge is within BPA's legal authority. 4. Other Issues. Various other legal issues have been raised by attorneys reviewing the con- tracts. One example is the alleged unconscionability of the contracts due to the lack of fair negotiations. The response to this issue is that there was a six -month negotiation process engaged in by BPA and representatives of northwest utilities, which process resulted in significant changes in the contracts. Another example is the alleged inconsistency with the Regional Power Plan. This problem has been discussed by BPA and the Northwest Power Planning Council, and any irreconcilable inconsistencies may be corrected by amending the contracts. CONCLUSION While there are significant legal issues involving the contract charge, since the amount of the contract charge that the City would have to pay is insignificant compared with what the City would pay through its rates in any event, the contract charge does not mitigate against the City signing the contracts. Further, it is very likely that a lawsuit will be filed in the near future, either by BPA or a utility such as Seattle City Light, which would have to pay a very large contract charge, in order to determine the validity of the contract charge. Such a test case would allow for severability of any invalid provisions and /or modification of the contracts in accordance with the decision of the courts. Craig D. ,nutson City Attorney CDK:LF