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Home My WebLink AboutAgenda Packet 08/12/2014 Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 August 12, 2014 @ 3:00 p.m. AGENDA L Call To Order II. Roll Call III. Approval Of Minutes For July 8, 2014 IV. Late Items V. Discussion Items: A. Electric Utility 2014 Resource Plan B. Utility Cost of Service and Retail Rate Adjustments VI. Information Only Items: A. None. VII. Next Meeting Date: September 9, 2014 VIII. Adjournment N:AUAC\MEETINGS\UAC2014\UAC081214\081214 Agenda.docx Utility Advisory Committee Jack Pittis Conference Rooms Port Angeles, WA 98362 July 8, 2014 3:00 p.m. L Call To Order Chairman Lynn Bedford called the meeting to order at 3:00 p.m. IL Roll Call UAC Assigned Councilmembers Present: Sissi Bruch, Dan Gase, Lee Whetham Other Councilmembers Present: Other Councilmembers Absent: Cherie Kidd, Dan Di Guilio, Brad Collins,Patrick Downie Utility Advisory Committee Members Present: Lynn Bedford, Betsy Wharton,Paul Elliott Utility Advisory Committee Members Absent: John LeClerc Staff Present: Craig Fulton, Sondya Wray, Gregg King, Bill Bloor, Maher Abed, Dan McKeen(3:15) Others Present: Jeremy Schwartz—PDN 5 Citizens III, Approval Of Minutes Chairwoman Lynn Bedford asked if there were any corrections to the minutes of June 10, 2014. Sissi Bruch moved to approve the corrected minutes. Dan Gase seconded the motion,which carried unanimously. IV. Late Items: Nippon Paper Industries USA Custom Lighting Project Agreement—Info Only Item Water/Wastewater Utility Rate Discussion—Info Only Item V. Discussion Items: A. Morse Creek Hydroelectric Project Recommendation Craig Fulton, Director of Public Works and Utilities,reviewed the Morse Creek Hydroelectric Project update. There was a lengthy discussion on the sale of the Morse Creek Hydroelectric project. Due to the high repair costs and future operating risks, a recommendation that the retirement or sale of the project and property is considered. Paul Elliot moved to recommend to City Council that the City sell the project and all property in its present condition after declaring them to be surplus to the City's needs, conditionally based on an analysis of the water rights, and reviewed by the Real Estate Committee. Sissi Bruch seconded the motion,which carried unanimously. Vi. Information Only Items A. Nippon Paper Industries USA Custom Lighting Project Agreement(verbal report only) Information only. No action taken. B. Water/Wastewater Utility Rate Discussion(verbal report only) Information only.No action taken. Vii. Next Meeting Dates: August 12,2014 VIIL Adjournment: 3:52 p.m. Dan DiGuilio, Mayor Sondya Wray, Administrative Specialist II IM, T , NGELES OR, ,�r��'�kNOJI��. N®r \1V A S H [ N G T O N, w_ Utility Advisory Committee Memo Date: August 12, 2014 To: Utility Advisory Committee From: Phil Lusk, Deputy Director of Power and Telecommunications Systems Subject: Electric Utility 2014 Resource Plan Summary: The City's Electric Utility must comply with a Washington State unfunded mandate to update its Resource Plan. A component of the enabling legislation is that consumer participation in the development of the Resource Plan is encouraged. Further, the governing body of a consumer-owned utility must approve the 2014 Resource Plan after it has provided public notice and hearing. Recommendation: Forward a favorable recommendation to City Council to pass a resolution to approve the Electric Utility 2014 Resource Plan. Background/Analysis: The electric utility is required by RCW 19.280.030 to update its 2012 Resource Plan (Plan)which must be submitted to the Washington Department of Commerce (Commerce)by September 2, 2014. The Plan's purpose is to assure that our future resources are adequate to meet our projected loads especially as the Bonneville Power Administration (BPA) makes major changes in its energy charges. While the proposed Plan is not a legally binding document, it describes the current as well as estimated future power loads and resources for 2019 and 2024 time periods. The proposed Plan is publically available on the City's website. Staff will present the proposed Plan that incorporates the City Council 2011 decision to remain a"full- requirements" customer of the BPA through September 2019. The Plan also recommends that the City Council give serious consideration to increasing the level of energy conservation as the best measure to postpone the likelihood of future Tier 2 power supply purchases. Staff will also summarize the comments received at the August 5, 2014 City Council public hearing. The City's energy future is essential to our community's economic health. The City has long benefited from having access to low-cost electricity from the federally operated hydroelectric system. However, as the world and the energy industry change, the City faces a potentially serious threat to its economy in the form of rising wholesale electricity costs. For Port Angeles, 67% of the money spent on retail power immediately leaves our local economy. With minimal downside risk, developing a Plan that will increase energy efficiency and demand response will help to protect the economy from rising energy costs, keep more dollars circulating in the region and in turn, may increase the number of jobs that stay in our community. Attachment: Proposed Resolution N:AUAC\MEETINGS\UAC2014\UAC081214\Electric Utility 2014 Resource Plan.docx City of Port Angeles << Utility Name 1Nashingtori State Utility Resource Plan Year 264 Prepared by: Il.Ih o ll'II us lk ........................................................... Base Year 5 Yr. Est. 10 Yr Est. 2014 2019 2024 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Period Annual Annual Annual Loads 83.52 84.91 86.06 Resources: Future Conservation/Efficiency 0.86 1.63 ...... ...........................................................................................................................� ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Demand..Res Response BPA Tier 1 (include BPA PF) 83.43 83.96 84.34 BPA Tier 2 Non BPA: Co-generation Hydro (critical water) Wind Other Renewables Thermal-Natural Gas Thermal-Coal ...................................................................................................................................................................................................... ...................................................................................................................... ............................................................................................................................................................................................................................. Market Purchase (non BPA) 0.09 0.09 0.09 Other Distributed Generation Undecided ......................................................................................................................................................................................................................... Total Resources Load Resource Balance ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Date of Board/Commission Approval August-14 (mm/yy) Notes: Explain resource choices other than conservation/Use of renewable energy credits in plat ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, approving the 2014 Electric Utility Resource Plan. WHEREAS, the City strives to ensure that its citizens have reliable access to electricity resources adequate to meet their projected loads; and WHEREAS, the City must submit an Electric Utility Resource Plan to the Washington Department of Commerce by September 2, 2014 as required by RCW 19.280.030; and WHEREAS, the 2014 Electric Utility Resource Plan is consistent with the City's existing energy conservation programs operated in cooperation with the Bonneville Power Administration, and the Electric Power Plan adopted by the Northwest Power and Conservation Council; and WHEREAS, on February 7, 2010 the City Council of the City of Port Angeles adopted Ordinance No. 3391 to create a Conservation and Renewable Energy Program fund for acquiring cost-effective energy conservation measures, renewable energy systems, and distributed generation resources; and WHEREAS, RCW 19.280.030 requires the City to regularly update its Electric Utility Resource Plan at minimum intervals of every two years; and WHEREAS, the City Council of the City of Port Angeles Washington, being the governing body of the consumer-owned electric utility did, after public notice, hold public hearings on the 5th of August 2014 and the 19th of August 2014 to provide the public the opportunity to comment on the 2014 Electric Utility Resource Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles Washington that the 2014 Electric Utility Resource Plan as prepared by the Director of Public Works and Utilities and attached hereto as Exhibit A is hereby approved; and -1- BE IT FURTHER RESOLVED that the 2014 Electric Utility Resource Plan, together with this Resolution, shall be filed with the Department of Commerce of the State of Washington no later than the 2nd of September 2014 and also be published and made available to the public through the City of Port Angeles website. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 19th day of August 2014. Dan Di Guilio, Mayor ATTEST: By: Janessa Hurd, City Clerk APPROVED AS TO FORM: By: William E. Bloor, City Attorney G:ALEGAL\a ORDINANCES&RESOLUTIONS\RESOLUTIONS.2012\17-Council 2012 Resource Plan Resolution.docx -2- Proposed Electric Utility 201A Resource Plan City of Port -Angeles LJtility -Advisory Committee Meeting .August 9, 2014 0� PORTA/v Philip D. Lusk Deputy Director of Power Resources Department of Public Works & Utilities ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Agenda Background Current Loads and Resources Forecasted Loads and Resources Future Considerations What's N ext? 2 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Background State law requires a biennial "Resource Plan" Larger utilities are required to prepare a biennial "Integrated Resource Plan" City completed first Resource Plan in 2008 Plan updated in 2010 & 2012 City Council 2011 decision to remain a Bonneville Power Administration (BPA) "full-requirements" customer until September 2019 Next Council power supply decision is in 2014 for the October 2019 to September 2024 period 3 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... :�e e Plan Components The 2014 Plan must: 1 . Describe current power loads and resources 2. Estimate power loads and resources for 2019 and 2024 ❑ Consider conservation, demand response and renewable energy 3. Be approved by the City after public notice and hearing ❑ Notice to be published by City Clerk in Peninsula Daily News ❑ Public hearings August 19th and tonight 4. Be submitted to Washington Department of Commerce by September 2, 2014 5. Be updated again in 2016 4 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Desired Outcome Assure that future resources are adequate to meet projected loads Especially critical since the BPA moved to its "Tiered Rate" structure 5 Current Loads and Resources .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Port A....ti geles Electric Utility Backgro-wi d Principal load centers • Industrial Transmission Nippon Paper Industries • Distribution system Everyone else FIGURE 1: City of Port Angeles Electric Utility Loads All Major Rate Classes in 2013 NEI r r� Residential 17.86% Yard Lights 0.02% Primary Non-Profit 3.81% 0.45% Street Lights Water Pumping 0.14% 0.27% 8 FIGURE 2: City of Port Angeles Electric Utility Loads Major Distribution Customer Rate Classes in 2013 Primary 10.30% Water Pumping 0.72% Street Lights 0.38% Non-Profit 1.21 Yard Lights 0.07 Residential 48.23% 9 FIGURE 3: City of Port Angeles Electric Utility Resources January 2002 - December 2013 o 10,000 0 Morse Creek E]Wheeled 03 Conservation Ell BPA Tier 1 Future Loads and Resources .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Port A....ti geles Electric Utility Forecast Future load growth meets regional conservation goals Up to 85% of new load growth projected met by conservation IIIIII Large conversion of private vehicles to electric fuel is not anticipated Six-factor polynomial regression forecast equation Based on previous 36 months BPA power purchases Results backcast against historic loads for accuracy amw forecast error was -0.30% kWh forecast error was -0.51 % 12 .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Port A....ti geles Electric Utility Forecast IT Partly based on customer-provided input, forecasted to remain under Tier 2 mark IT customer responsible for its Tier 2 power purchases Increases in production likely to occur due to conservation All cogeneration output to be sold outside of City Distribution Forecasted to remain under high-water mark Cumulative conservation efforts are making a difference Tier 2 power purchases projected to begin after 2024 Strategic conservation could play an important role 13 FIGURE 6: City of Port Angeles Electric Utility Resources January 2002 - December 2024 III i i umll IIIIIIIII liumy/i. VIII umiuuuuuuuuu IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIII' ��'�� '!'i IIIIIIIIII IIIIIIIIIV�ui�iiii�,uRuAuNui�iu�iiiiiuuuuuuuuuuuiiiiii II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I � 000 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Morse Creek El Wheeled M Conservation M BPA Tier 1 IIII IIIIIIIII FIGURE 5: City of Port Angeles Total Electric Utility Loads Before Conservation Effects 2002-2024 120 100 Tier 2 Gap 80 3 60 m 40 20 0 100 1,00, �o �o �o "0?" "o d� 1'o?J, "o I 1 "o Z S 1'0J "o?1 1'01 6� "07 9 �o 1'01 j "o k, 1'01� 1,011 , BPA Tier 1 111111 Total Load Before Conservation 15 FIGURE 6: City of Port Angeles Total Electric Utility Loads Aker Conservation Effects 2002-3020 a le, 90 Gap 1100 1,4 1 D Tier 1 Allocation ii Total Load After Conservation .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Strate,,Wc Could Expos-ure to In.creased Tier Reduce distribution power losses with voltage optimization and other techniques Install 4000 ductless heat pumps in homes Install 2000 heat pumps water heaters in homes Increased use of LED lighting by homes and businesses 17 FIGURE l: City of Port Angeles Total Electric Utility Loads After Strategic Conservation Effects 1002-2026 No 90 Gap Tier 1 Allocation MTotal Load AfterStrategic Conservation Future Considerations ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Postpon.e Tier 2 Expos Seek all cost-effective conservation measures as the favored resource for meeting future loads 2013 cumulative effects Reduced City's power purchases by 4.2% Directly saved customers more than $1 .6 million Indirect multiplier effect of almost $3.8 million Conservation represents least-risk strategy Continue City support Continue to seek additional BPA funding 20 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Project Examples 2012-2014 Free weatherization for qualifying customers Ductless heat pump pilot project for qualifying customers LED & induction street lights Residential, commercial & industrial demand response pilots New single large-load ordinance for better managing customer growth 2015-2016 LED lighting for homes and businesses Distribution system voltage optimization Heat pump water heaters being reviewed Strategic conservation opportunities review 21 especially .............. arm. 1� Energy efficiency is a great investment - for it! That's offering Free a W i iii ° iii on for qualifying City Electric Utility ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Strengths, Weaknesses, u s, '. .1 to i Strengths Conservation program and demand response pilot projects Very competitive power rates BPA transmission system highly reliable Weaknesses Limited amount of electricity generated on the Peninsula BPA transmission line voltage stability Opportunities Further infrastructure automation, enhanced conservation, BPA rate incentives for demand response Threats Strong potential for significant increases in wholesale power and transmission costs and decreases in BPA "Tier 1 " power system 23 ......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Bonneville Power -.Administration Challenges Long and complex ratemaking process Significant exposure to hydrology risk and wholesale power markets Low consolidated credit metrics and trend of declining reserves Large debt funded capital program Sizeable debt burden of Energy Northwest's nuclear projects Significant fish and wildlife environmental costs SOURCE: Moody's assigns Aa1 to Energy Northwest(WA)Project 1 and Project 3 revenue bonds and affirms Bonneville Power Administration, OR's Aa1 issuer rating. Rating outlook is stable.(29 June 2014). SEE: htI>://www tmsv ccrui /G r t / `1 r;r ui crcr ;:ccrr2crr ticrr-pi crcr ,.i tr ;: awl ter-energy nortlnmes� wa project 1 and Iprr ect 3-revenue Ikrcrrmds and affirurins Ikrcrrrneville-power adrninis:ration-or:arr 1 issuer raLin r raLinJ cr G Hook is sltatrle 24 .............................................................. FIGURE 8: City of Port Angeles BPA Power and Transmission 2002-2024 Costs $60 $50 >r $30 $20 Forecasted Values $10 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Nominal $25.38$31.98$30.63$29.39$29.80$28.99$28.20$27.81$29.78$28.29$31.01$31.66$35.43$35.43$38.98$38.97$42.88$42.87$46.09$46.09$48.40$48.39$50.82 Inflation Adjusted $33.50$41.58$38.59$35.87$35.17$33.34$31.31$30.87$32.47$29.99$32.25$32.29$35.43$34.74$37.46$36.73$39.61$38.83$40.93$40.12$41.30$40.50$41.69 25 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... �ecommendauon Forward a favorable recommendation to City Council to pass a resolution to approve the Electric Utility 2014 Resource Plan 26 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Comments /Questions Phil Lusk Deputy Director of Power Systems Public Works & Utilities Department plusk @cityofpa . us 360 .417 .4703 http ://www. cityofpa . us 'ORT NGELES .� � �� A, " = W A S H I N G T O N, U. S. A. I...........diiiii lip, Utility Advisory Committee Memo Date: August 12, 2014 To: Utility Advisory Committee From: Phil Lusk, Deputy Director of Power and Telecommunications Systems Subject: Utility Cost of Service and Retail Rate Adjustments Summary: Comprehensive cost-of-service and retail rate studies for the City's electric, water and wastewater utilities have been completed. The study results will be presented to the Utility Advisory Committee, including rate class cost of service adjustments that must be considered before new retail rates can be finalized in an ordinance. It is necessary to adjust retail rates to maintain the City's utility funds in a financially prudent position. Recommendation: Following a presentation, staff will seek a recommendation from the Utility Advisory Committee to City Council regarding the policy related cost-of-service adjustments that will permit the 2015 rate ordinance amendments for the Electric,Water, and Wastewater utilities to be finalized. Background/Analysis: The City has contracted with the FCS Group to complete comprehensive cost-of-service and rate studies for the Electric, Water, Wastewater, Solid Waste Collections, and Solid Waste Transfer Station utilities. The studies are completed, and the results of the cost-of-service studies for the electric, water and wastewater utilities will be presented to the Utility Advisory Committee. It is necessary to adjust retail rates to maintain the City's utility funds in a financially prudent position. Following this presentation, staff will seek a recommendation from the Utility Advisory Committee to the City Council regarding the policy-related cost-of-service adjustments that will permit the 2015 rate ordinance amendments for the Electric, Water, and Wastewater utilities to be finalized. This recommendation will be taken to Council for its consideration on August 19, 2014. Following any Council-directed adjustments to the cost-of-service, the rate ordinances can be finalized. The first proposed City Council action on the proposed rate ordinances would be a short presentation and the opening of a public hearing on September 2, 2014. The public hearing would be continued to September 16, 2014, at which time the public hearing will be closed. Following Council's ratification, the proposed rate adjustments would be effective January 1, 2015. N:\UAC\MEETINGS\UAC2014\UAC081214\Cost Of Service Studies.docx Utility Cost of Service and Retail Rate Adjustments City of Port Angeles Utility Advisory Committee Meeting August 12, 2014 Philip D. Lusk Deputy Director of Power & Telecommunication Resources Department of Public Works & Utilities Utility Cost-of-Service Adjustment • Staff requests a recommendation to City Council on possible cost-of-service adjustments for the electric, water and wastewater utilities — Rates are developed once cost-of-service is determined • The UAC is requested to provide a recommendation on one of three possible scenarios: • Across-the-board increase using current cost allocations • Five year phase-in of true cost-of-service allocations • Irrigation rate adjustment with five year phase-in of true cost-of-service allocations — NOTE: Irrigation sales accounted for 4.6% of the water utilities 2013 total sales volume What Is Cost-of-Service ? • Defined as the amount of money required to fund a utility's operations, including all expenses and deprecation 3 How Does Cost-of-Service Apply? • Attributes costs to different customer rate classes based on how those customers cause costs to be incurred — Determines how costs will be recovered from customers within each customer rate class a Monthly Rate Impacts Assessed on Two Hypothetical Customers • Residential — 1,300 kWh electricity — 450 SCF water & wastewater using a 5/8" meter • Commercial — 3,000 kWh electricity — 730 SCF water & wastewater using a 5/8" meter 5 Projected Residential 2015 Rate Impacts ($/month before taxes) X-Board $ Impact Across the Board % Irrigation Rate % 5 Year % Increase with 5 Year Increase Phase-In Increase Phase-In Electric $6.81 6.50% $9.13 8.71% $9.13 8.71% Water $1 .97 5.25% $1 .40 3.69% $1 .33 3.44% Wastewater $5.14 11 .00% $4.65 9.96% $4.65 9.96% TOTAL $13.92 7.36% $15.18 8.02% $15.11 7.99% Projected Commercial 2015 Rate Impacts ($/month before taxes) X-Board $ Impact Across the Board % Irrigation Rate % 5 Year % Increase with 5 Year Increase Phase-In Increase Phase-In Electric $14.69 6.50% $5.34 2.37% $5.34 2.37% Water $2.83 5.25% $4.75 8.96% $4.27 3.44% Wastewater $3.21 11 .00% $4.02 13.88% $4.02 9.96% TOTAL $20.73 6.72% $14.11 6.76% $13.63 6.75% 6 Water Utility Cost of Service Findings WATER - Irrigation Adjusted to Across the Board Across the Board Average 5.25% 5.25% 5.25% 5.25% 5.25% Residential 3.69% 3.67% 3.64% 3.62% 3.60% Commercial / Municipal 8.96% 8.84% 8.73% 8.62% 8.52% Irrigation 5.25% 5.25% 5.25% 5.25% 5.25% WATER - True Cost of Service Across the Board Average 5.257o 5.257o 5.257o 5.257o 5.257o Residential 3.44% 3.27% 3.08% 2.86% 2.59% Commercial / Municipal 7.94% 7.94% 7.94% 7.94% 7.94% Irrigation 21.80% 21.80% 21.80% 21.80% 21.80% City of Port Angeles 2015 Rate Impacts by Irrigation Scenario $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2014 Rates 2015 Adjusted @ 5.25% Increase 2015 @ COSA 21.8% Increase 111111 Residential $2,159 $2,272 $2,630 IIIIIIIIIII Municipal $33,376 $35,129 $40,652 11111111111 Commercial $54,472 $57,332 $66,347 City of Port Angeles 2013 Total Irrigation Water Use in SCF by Location Peninsula College,115,267,3.0% Apartments,107,360,2.8% Shane Park,137,800,3.5% t 1111�� Apartments,159,090,4.1% County Fairgrounds, 165,410,4.2% � 89,546,2.3% 89,010,2.3% 1 76,860,2.0% 1 r;, 74t320t 1.9/ Lincoln Parke, 220, 130 2 5.7% Other,1,781,393,45.8% � l i �' 6,116,30.5% 66,489,1.7% Mo % i�✓ °i°irr'n nru��'�i'�i°rr'rnru��rr j�d�ira°�i��ii"�wiirrl�nri�iri r��rr;,parr"�rP'j�l�iir'ri"yr�y 0 idu u"Pn'u'�1 a idu u"Pn'u'ur�1u W u u ii u' 99,052,5.1% li,. nvu"n .un nvu"n m ; i Wastewater Cost-of-Service Findings WASTEWATER Across the Board Average 11.00%11.00% 9.00% 9.00% 9.00% 8.00% Residential 9.96% 7.97% 7.96% 7.95% 6.96% Commercial / Municipal 13.88% 11.77% 11.71% 11.66% 10.58% cSo Across the Board A!vTerage 0.00% 0.00% 55.44% 0.00% 0.00% Residential 0.00% 0.00% 0.94% 0.00% 0.00% Commercial / Municipal 0.00% 0.00% 54.50% 0.00% 0.00% NOTE: Proposed 2017 CSO COSA will be addressed in 2015 Electric Utility Cost of Service Findings Across the Board Average 6.5% 6.5% 6.5% 6.5% 6.5% Residential 8.71% 6.50% 6.50% 6.50% 6.50% Low Income Senior 8.71% 6.50% 6.50% 6.50% 6.50% General Service 2.37% 6.50% 6.50% 6.22% 6.22% G.S. - Demand 7.00% 7.00% 7.00% 7.00% 7.00% G.S. - Demand Primary 0.00% 5.16% 5.16% 5.16% 5.16% Primary 0.00% 5.54% 5.54% 5.54% 5.54% Municipal Water Pumping 10.00% 10.00% 6.90% 6.90% 6.90% Nonprofit 0..0.0.%............................5....5.5.%............................5.55% 5.55%...........................5,55%. .............. Traffic Signals 10.00% 10.00% 10.00% 10.00% 10.00% Yard Lighting 10.00% 10.00% 10.00% 10.00% 10.00% Street Lighting 10.00% 10.00% 10.00% 9.75% 9.75% Projected Residential 2015 Rate Impacts ($/month before taxes) X-Board $ Impact Across the Board % Irrigation Rate % 5 Year % Increase with 5 Year Increase Phase-In Increase Phase-In Electric $6.81 6.50% $9.13 8.71% $9.13 8.71% Water $1 .97 5.25% $1 .40 3.69% $1 .33 3.44% Wastewater $5.14 11 .00% $4.65 9.96% $4.65 9.96% TOTAL $13.92 7.36% $15.18 8.02% $15.11 7.99% Projected Commercial 2015 Rate Impacts ($/month before taxes) X-Board $ Impact Across the Board % Irrigation Rate % 5 Year % Increase with 5 Year Increase Phase-In Increase Phase-In Electric $14.69 6.50% $5.34 2.37% $5.34 2.37% Water $2.83 5.25% $4.75 8.96% $4.27 3.44% Wastewater $3.21 11 .00% $4.02 13.88% $4.02 9.96% TOTAL $20.73 6.72% $14.11 6.76% $13.63 6.75% L, Water/ Wastewater Rate Discussions Wastewater- "Base Rate" based on water usage, either<430 or >430 cuft • <430 cuft -$43.95 • >430 cuft -$46.70 Therefore delta will only be $2.75 (average would be $45.33, if 430 is the median) Residential Water • 430 cuft: $28.22 + (430 x 0.0219) = $37.64 • 1000 cuft: $28.22 + (1000 x 0.0219) = $50.12 • 1500 cuft: $28.22 + (1000 x 0.0219) + (500 x 0.0277) = $63.97 • 2000 cuft: $28.22 + (1000 x 0.0219) + (500 x 0.0277) + (500 x .0344) = $81.17 • 10,000 cuft: $81.17 + (8000 x .0344) = $356.37 Irrigation Water- (no wastewater charge of$46.70) 103 irrigation customers with top ten (10) using over 50% of irrigation volume • 430 cuft: $34.39 + (430 x .0196) = $42.82 • 1000 cuft: $34.39 + (1000 x .0196) = $53.99 • 1500 cuft: $34.39 + (1500 x .0196) = $63.79 • 2000 cuft: $34.39 + (2000 x .0196) = $73.59 • 10,000 cuft: $34.39 + (10000 x .0196) = $230.39 Residential Electric Electric base: 516.77 per month Electric consumption: $0.0674 per kWh Residential Water For your residential water rate, take your corresponding base price according to meter size and add: $0.0219 per scf for the first 1000cf $0.0277 per scf for the next 500cf $0.0344 per scf for all additional Meter Size Base Price 5/8 inch $28.22 3/4 inch $30.65 1 inch $34.18 1.5 inches $63.30 2 inches $99.01 Irrigation For your irrigation water rate, take your corresponding base price according to meter size and add $0.0196 per scf. Meter Size Base Price 5/8 inch $34.39 3/4 inch $37.40 1 inch $40.51 1.5 inches $71.32 2 inches $108.61 3 inches $194.91 4 inches $318.50 Residential Wastewater For your residential wastewater(sewer)utility rate, add your corresponding flat rate to the corresponding combined sewer overflow(CSO) and harbor study mandate (HSM)rates to get your total. Cubic Feet Flat Rate CSO HSM Total 0 - 429 $43.95 $18.00 $4.10 $66.05 430+ $46.70 $20.10 $4.50 $71.30 Eastern Urban Growth Area Wastewater The EUGA wastewater rate is $71.30. Commercial Electric Service base usage demand. To find your commercial electric utility rate, add your corresponding service base rate to the price per kWh and price per KVA. Service Base Rate Price per kWh Price per KVA General Service 1 phase $22.90 $0.0677 $0.00 General Services 3 phase $57.24 $0.0677 $0.00 General Service Demand 1 phase $45.74 $0.0455 $3.89 General Service Demand 3 phase $114.38 $0.0455 $3.89 Non-Profit 1 phase $22.90 $0.0734 $0.00 Non-Profit 3 phase $57.24 $0.0734 $0.00 Primary Service (September- May) $304.96 $0.0457 $4.79 Primary Service (June - August) $304.96 $0.0279 $4.79 Commercial Water To find your commercial water rate, take your corresponding base price according to meter size, and add $0.0184 per cf. Meter Size Base 5/8 inch $39.98 3/4 inch $42.62 1 inch $47.05 1.5 inches $82.87 2 inches $126.13 3 inches $226.30 4 inches $369.88 6 inches $728.58 8 inches $1,158.86 Irrigation To find your irrigation water rate, take your corresponding base price according to meter size, and add $0.0196 per cf. Meter Size Base 5/8 inch $34.39 3/4 inch $37.40 1 inch $40.51 1.5 inches $71.32 2 inches $108.61 3 inches $194.91 4 inches $318.50 Commercial Wastewater To find your commercial wastewater utility rate, add your corresponding flat rate to the combined sewer overflow(CSO) and harbor study mandate (HSM)rates to find your total. Flat Rate CSO HSM Total Base $12.97 $4.70 $1.15 $18.82 Usage $0.0395 $0.0161 $0.0035 $0.0591 per cf Fixture $4.34 $1.80 $0.40 $6.54 per fixture Eastern Urban Growth Area Wastewater The EUGA wastewater utility rate is $71.30. Water/ Wastewater Rate Discussions Wastewater- "Base Rate" based on water usage, either<430 or >430 cuft • <430 cuft -$43.95 • >430 cuft -$46.70 Therefore delta will only be $2.75 (average would be $45.33, if 430 is the median) Residential Water • 430 cuft: $28.22 + (430 x 0.0219) = $37.64 • 1000 cuft: $28.22 + (1000 x 0.0219) = $50.12 • 1500 cuft: $28.22 + (1000 x 0.0219) + (500 x 0.0277) = $63.97 • 2000 cuft: $28.22 + (1000 x 0.0219) + (500 x 0.0277) + (500 x .0344) = $81.17 • 10,000 cuft: $81.17 + (8000 x .0344) = $356.37 Irrigation Water- (no wastewater charge of$46.70) 103 irrigation customers with top ten (10) using over 50% of irrigation volume • 430 cuft: $34.39 + (430 x .0196) = $42.82 • 1000 cuft: $34.39 + (1000 x .0196) = $53.99 • 1500 cuft: $34.39 + (1500 x .0196) = $63.79 • 2000 cuft: $34.39 + (2000 x .0196) = $73.59 • 10,000 cuft: $34.39 + (10000 x .0196) = $230.39 Residential Electric Electric base: 516.77 per month Electric consumption: $0.0674 per kWh Residential Water For your residential water rate,take your corresponding base price according to meter size and add: $0.0219 per scf for the first 1000cf $0.0277 per scf for the next 500cf $0.0344 per scf for all additional Meter Size Base Price 5/8 inch $28.22 3/4 inch $30.65 1 inch $34.18 1.5 inches $63.30 2 inches $99.01 Irrigation For your irrigation water rate, take your corresponding base price according to meter size and add $0.0196 per scf. Meter Size Base Price 5/8 inch $34.39 3/4 inch $37.40 1 inch $40.51 1.5 inches $71.32 2 inches $108.61 3 inches $194.91 4 inches $318.50 Residential Wastewater For your residential wastewater(sewer)utility rate, add your corresponding flat rate to the corresponding combined sewer overflow (CSO) and harbor study mandate (HSM)rates to get your total. Cubic Feet Flat Rate CSO HSM Total 0 -429 $43.95 $18.00 $4.10 $66.05 430+ $46.70 $20.10 $4.50 $71.30 Eastern Urban Growth Area Wastewater The EUGA wastewater rate is $71.30. Commercial Electric Service base usage demand. To find your commercial electric utility rate, add your corresponding service base rate to the price per kWh and price per KVA. Service Base Rate Price per kWh Price per KVA General Service 1 phase $22.90 $0.0677 $0.00 General Services 3 phase $57.24 $0.0677 $0.00 General Service Demand 1 phase $45.74 $0.0455 $3.89 General Service Demand 3 phase $114.38 $0.0455 $3.89 Non-Profit 1 phase $22.90 $0.0734 $0.00 Non-Profit 3 phase $57.24 $0.0734 $0.00 Primary Service (September-May) $304.96 $0.0457 $4.79 Primary Service (June -August) $304.96 $0.0279 $4.79 Commercial Water To find your commercial water rate,take your corresponding base price according to meter size, and add $0.0184 per cf. Meter Size Base 5/8 inch $39.98 3/4 inch $42.62 1 inch $47.05 1.5 inches $82.87 2 inches $126.13 3 inches $226.30 4 inches $369.88 6 inches $728.58 8 inches $1,158.86 Irrigation To find your irrigation water rate, take your corresponding base price according to meter size, and add $0.0196 per cf. Meter Size Base 5/8 inch $34.39 3/4 inch $37.40 1 inch $40.51 1.5 inches $71.32 2 inches $108.61 3 inches $194.91 4 inches $318.50 Commercial Wastewater To find your commercial wastewater utility rate, add your corresponding flat rate to the combined sewer overflow(CSO) and harbor study mandate (HSM)rates to find your total. Flat Rate CSO HSM Total Base $12.97 $4.70 $1.15 $18.82 Usage $0.0395 $0.0161 $0.0035 $0.0591 per cf Fixture $4.34 $1.80 $0.40 $6.54 per fixture Eastern Urban Growth Area Wastewater The EUGA wastewater utility rate is $71.30.