HomeMy WebLinkAboutMinutes 05/07/1990UTILITY ADVISORY COMMITTEE
Port Angeles, Washington
May 7, 1990
Call to Order
Chairman Hallett called the meeting to order at 4:28 p.m.
II.
Roll Call
Members Present: Jim Hallett, Mike Lemon, Dick Wight,
Jeff Rosbach, Thomas Hunt
Staff Present: B. Titus, G. Leaf, S. McClain
III.
Approval of Minutes of April 9, 1990, Meeting
The minutes were approved as written.
IV.
Discussion Items
1. Review of Revised Cost of Service Study - 1 & 3 Years
Staff discussed revised cost of service studies covering
10/1/90 to 10/1/91 and 10/1/91 to 10/1/93. First year
showed results of reducing rate of return for all other
rate classes to the level of the residential rate class.
This produced a $538,000 loss which was agreed to be
unacceptable.
2. Discussion of Possible Hookup Charges
Staff discussed a proposal to establish a service credit
equal to the average investment in distribution plant as
of year end 1989. This credit would be applied against
the cost of new line extensions and if the cost of the
extension was less than the credit there would be no
charge to the new consumer. If the cost of the extension
exceeded the credit then the new consumer would be
charged for the amount in excess of the credit.
The UAC agreed that new consumers should have to pay for
some of the costs associated with new services.
Councilman Lemon suggested that Staff look at a plan that
would recover a fixed amount from all new consumers. The
UAC deferred taking any action pending Staff returning
with options to recover more of the cost of hooking up
new consumers.
3. Discussion of Long Term Rates & Reserves - 10 years
Graphs showing various rate scenarios were distributed to
the UAC by Staff and reviewed. After considerable
discussion it was agreed that it would be better to
equalize the rate of return for all rate classes this
year prior to next years BPA rate increase. It was also
agreed that if rates were to be adjusted that we should
have a zero rate of return for all rate classes.
Discussions also took place regarding the cost of street
lights being paid for out of the light fund and allocated
to the other rate classes by overall revenues rather than
charged as a City service to the general fund. Staff was
directed to come back with more information at a future
UAC meeting.
It was moved by Rosbach and seconded by Wight that the
UAC recommend to the City Council that electrical rates
be adjusted in October 1990 to provide a zero rate of
return for all rate classes. This would result in a 1.07
percent overall rate increase. Motion was passed
unanimously.
4. Discussion of Rebroadcasting 'Local' TV Signals
Councilman Hallett related a discussion he had with a
local resident who asked if it would be possible for the
City to pickup local tv signals and rebroadcast them so
residents could pick up the local stations with a regular
tv antenna. The UAC agreed that this would be worth
pursuing and asked Staff to contact our cable tv
consultant to determine the technical feasibility and
possible costs.
Late Items/Hember Discussion
There were no late items.
VI.
Adjournment
The meeting was adjourned at 6:02 p.m.
Prepared by