Description: AGENDAHED.JPG

  

Item No:                    5C.

 

Meeting Date:           February 25, 2013

 

From:                          Paul Kalv, Electric Director

 

Subject:                      Ordinance  authorizing  two optional Time-of-Use (TOU) Electric Tariffs enabled by the AMI and Related Technology Initiatives

 

 


Staff Recommendation:

Staff recommends the Commission adopt the two Time of Use rate structures presented.

 

Background:

Leesburg is developing multiple optional rate plans designed to meet the needs and abilities of residential and commercial customers with the objective to reduce Leesburg’s power supply costs and share the savings with the customers that enabled those savings.  Staff’s initial focus was the development of operational strategies within the City’s control to reduce power supply costs; next, the Load Reduction Credit Rider was offered to large commercial customers with a portion of the savings shared with those customers. Each of these strategies produced power supply savings reported during the January 29th Commission Workshop.

 

The meter infrastructure is now operational in the field and there is a need to communicate the specifics of these optional rate plans to customers through the various customer outreach available channels.  The general TOU rate concept has been presented in the media and in customer group presentations since 2008.  Customers now need the specifics in order to evaluate their ability to shift some of their electric usage away from high cost time periods to time periods with lower costs in anticipation of saving money on their electric bill.

 

 

Analysis:

City staff and our strategic partners and vendors are currently working the complete the integration of back office IT systems; we must all understand the actual availability of the TOU rates.  The rates will not be announced until all systems are capable of calculating the rates.  Our intent is to identify sooner rather than later those customers who want to receive service under the TOU rate schedule and provide the requested information and education to those customers that are considering the TOU rate, but have additional questions before switching to the TOU rate plan.

 

Options:

1.  Adopt the Ordinance as presented; or,

2.  Such alternative action as the Commission may deem appropriate

 

 

 

 

Fiscal Impact: 

TOU rates were calculated to be revenue neutral to the City.  TOU rates will allow the Electric Utility to reduce the cost of purchase power therefore creating the rebate back to the customer for participating in the program.

 

 

Submission Date and Time:    2/20/2013 5:39 PM____

 

Department: __Electric_____________

Prepared by:  _­Paul Kalv____________                     

Attachments:         Yes_X__   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes_X_  No ____

                                                

________________________________

Revised 6/10/04

 

Reviewed by: Dept. Head _Paul Kalv_

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-0000-3xx-xxxx_____

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 

ORDINANCE NO.                                    

 

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §22 – 196 OF THE CODE OF ORDINANCES TO ADD SUBSECTION 13 ENTITLED RATE SCHEDULES TOU – R1 AND TOU – R2, RESIDENTIAL TIME OF USE SERVICE; SPECIFYING THE TERMS AND CONDITIONS OF THOSE RATE SCHEDULES AND THEIR AVAILABILITY TO ELECTRIC UTILITY CUSTOMERS; REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

 

 

            WHEREAS, the City of Leesburg, Florida, provides electrical utility service to its customers and endeavors to provide that service as economically and effectively as possible, and

 

            WHEREAS, the cost of electricity utilized at the coincident peak demand period is considerably more expensive than electricity utilized during off – peak periods, and

 

            WHEREAS, by encouraging customers to utilize less electricity during the peak demand period can produce substantial savings for the City of Leesburg and its customers, and

 

            WHEREAS, the City therefore wishes to provide its customers with various incentive programs to encourage less use of electricity during peak demand periods, one of which is a “time of use” electrical rate which charges participating customers less for electricity used during off peak periods, and higher rates for electricity used during peak periods, and

 

            WHEREAS, the City has structured the rate differential between peak and off peak use of electricity so as to make this program revenue and cost neutral, as much as possible, for those customers who participate but who do not achieve the anticipate economy by shifting the use of electricity to off peak periods, while providing the participating customers who are able to shift their usage to off peak periods a benefit through lower electricity bills,

 

            NOW THEREFORE, BE IT ENACTED BY THE PEOLE OF THE CITY OF LEESBURG, FLORIDA:

 

SECTION I.

 

Subsection 13 is hereby added to §22 – 196 of the Code of Ordinances of the City of Leesburg, Florida, to read as set forth below:

 

(13)      Rate Schedules TOU – 1 and TOU – 2, Time of Use Rates.

 

a.       Availability.  Available throughout the entire territory served by the City subject to equipment availability. This is an optional service available at the customer’s request.  Customer may choose either rate schedule TOU-R1 or TOU-R2.

b.       Applicability.  The residential electric rate applies to an electrical service supplying electricity to a single-family residence. Service provided under this section shall not be shared with or resold to others.

c.        Character of Service.  Service shall be single-phase, sixty (60) cycles and approximately 120/240 volts. If three (3)            phases are desired, additional charges must be paid by the customer.

d.       Limitations.   Service is subject to all of the rules and regulations of this ordinance and the general rules and regulations of the City’s electric utility. Standby or resale service is not permitted. No customer who elects to obtain service under this TOU rate schedule shall be eligible for any other load management credits offered by the City to residential customers.

e.        Rates per month.  The following rate schedules shall apply to this TOU rate:

Customer Charge                                             $11.10

 

Rate per kWh:                                                            

 

 

TOU-R1

TOU-R2

Winter – On-peak

$0.404134

$0.265005

 

Winter – Off-peak

 

0.060165

 

0.070985

 

Summer – On-peak

 

0.352527

 

0.230715

 

Summer – Off-peak

 

0.062573

 

0.072777

 

Winter – On-peak is defined as the hours from 7 a.m. to 9 a.m. on Monday through Friday during the months of December, January and February, excluding any federal holiday occurring on those days.  Winter – Off-peak is defined as all other hours during the months of December, January and February.

 

Summer – On-peak is defined as the hours from 3 p.m. to 5 p.m. on Monday through Friday during the months of March through November, excluding any federal holiday occurring on those days.  Summer – Off-peak is defined as all other hours during the months of March through November.

 

The rate per month is subject to the annual inflation adjustment component pursuant to §22 - 166. Promptly after each annual inflation adjustment, the City will for informational purposes notify the Florida Public Services Commission in writing of its then current rates including any annual inflation adjustment.

f.        Minimum Charge. The minimum monthly bill shall be the customer charge plus other applicable charges, covered by ordinance, state statutes or federal law.

g.        Maximum Charge. After the customer’s first three billing months under this rate schedule, at the customer’s request, the City will calculate the total billings the customer would have been charged under the basic residential rate, Rate RS, and refund to the customer any excess of the actual billings under this rate over such calculated amount.

h.       Term of Service.   Service under this TOU rate schedule shall be for a minimum initial term of twelve (12) months from commencement of service and shall continue thereafter until receipt of notice by the City from the customer to disconnect, or upon disconnect by the City as provided by City ordinance.  Customers taking service under another rate schedule who elect to transfer to this rate must remain on this rate for a minimum of twelve (12) months.  A customer taking service under this rate schedule who elects to transfer to another rate will be prohibited from taking service on this rate schedule again for a minimum of twelve (12) months.

SECTION II.

 

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

 

SECTION III.

 

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

 

SECTION IV.

 

This Ordinance shall become effective upon its passage and adoption according to law.

 

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the 25th day of February, 2013.

 

 

 

                                                                                    THE CITY OF LEESBURG, FLORIDA

 

 

 

                                                                                    BY:                                                                 

                                                                                                DAVID KNOWLES, Mayor

 

 

 

Attest:                                                                        

            BETTY RICHARDSON, City Clerk