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HomeMy WebLinkAboutMINUTES Light and Power Committee 1974-07-3100 CD RECORD OF PROCEEDINGS Light &Power Committee Meeting July 31,1974 Committee:Chairman Petrocine;Trustees Wagner and Burgess Attending:Chairman Petrocine;Trustees Wagner and Burgess Also Attending:Mayor Tregent,Trustees Dannels,Sutter and Prosser, Town Administrator Hill,Superintendent Dekker,Business Office Manager Duncan,Rate Engineer Jordan,Special Council Leonard Campbell. Absent:None OPERATING PATIOS IN THREE PHASES; Rate Engineer Jordan presented operating ratios to the entire Board of Trustees with projections and preliminary rate modifications applying an overall rate increase on an “across the board”basis.Special council Leonard Campbell made recommendations and explained the aspects of the required time table and probable consideration by the Public Utilities Commission.The Committee recommends a 20%overall increase on a cost of service basis as projected in alternative No.4 which is attached as a part of these minutes.October 1, 1974,is the recommended effective date of the rate increase. There being no further business,the meeting adjourned. CcL L1o3>djDuncan,Business Office Manager APPROVEDI .dJG 1.2 1974 1w;,]u:EiS PARK 8UARD OF TRUSTEES --...—‘- OPERATING RATIOS -1973 (1) MtINICIPAL ELECTRIC UTILITIES GENERATING OVER 50%OF REQUIREMENTS Colorado Springs Lamar Walsenburg La Junta Las Animas Revenues $21,689,967 1,466,638 .482,294 1,078,441 396,890 Expenses 13,028,534 976,494 384,386 913,365 362,373 Operating Ratio 60.07 66.58 79.70 84.69 91.30 TOTAL Average -Upper Quartile Average -Lower Quartile Median - $25,114,230 =89.98% =61.37% =79.70% 15,665,152 62.38 (1)Data from 1973 Annual Reports Submitted to Colorado Public Utilities Commission. OPERATING RATIOS -1973 (1) INVESTOR OWNED UTILITIES -COLORADO Ope rating Revenues Expense Ratios Generating Over 50%(2)$229,385,371 $131,143,34Z 57.17 Purchasing Over 50%(3)12,524,925 8,683,776 69.33 TOTAL $241,910,296 $139,827,118 57.80 (1)Data from 1973 Reports to Colorado Public Utilities Commission. (2)Data for Public Service Company of Colorado and Central Tel.and Utilities Company. (3)Data for Home Light and Power and Western Colorado Power Company. eQ 3. OPERATING RATIOS -1973(1) MUNICIPAL ELECTRIC UTILITIES PURCHASING OVER 50%Of REQUIREMENTS Operating Revenues Expense Ratios Longmont $3,005,248 $1,796,217 59.77 Fort Morgan 1,019,876 617,440 60.54 Gunnison 595,513 376,517 63.23 Holly 150,444 97,265 64.65 Fort Collins 4,144,000 3,027,989 73.07 Loveland 2,011,893 1,505,557 74.83 Fountain 1,215,874 1,006,733 82.80 TOTAL $12,142,848 $8,427,718 69.40 Average -Upper Quartile -79.38% Average -Lower Quartile -60.10% Median -64.65% Estes Park: Year Ending 12/31/73 $780,7Z0 648,388 83.05 Year Ending 1/31/74 784,137 661,198 84.32 (1)Data from 1973 Annual Reports to Colorado Public Utilities Commis s ion. 4. 1967 1968 1969 1970 1971 1972 1973 Year Ending 1/31/74 Year Ending 1/31/74 Adjusted (2) ESTES PARK LIGHT AND POWER DEPARTMENT OPERATING RATIOS BEFORE ALL TAXES (FRANCHISE TAX INCLUDED IN A&G) 1967 THROUGH 1973 Revenues Total Operating kWh Sales Expenses (1) $$ 418,359 373,459 466,401 399,205 515,768 437,086 547,360 447,566 619,460 493,258 705,934 554,103 780,720 648,388 784,137 784,137 661,198 716,996 Ope rating Ratio -¾ 89.27 85.59 84.74 81.77 79.63 78.49 83 .05 84.32 91.44 Average Operating Ratio for 1971 and 1972 =79.06% NOTES: (1)Exclusive of ItTaxes.Franchise Tax and Rents are included. (2)Includes expense adjustments for increased salary and purchased power costs. TOWNOFESTESPARKALLOCATIONOFADJUSTEDEXPENSESBETWEENINSIDEANDOUTSIDESYSTEMS12MONTHSENDING1/31/7412Months12MonthsActualProForma.Ending12MonthsEndingEndingExpense1/31/741/31/74-Adjusted1/31/74AdjustmentAdjustedAllocationRatio(3)-%InsideOutsideExpenseHydroGeneration9,543$1,573(1)$11,116Demand-51.09/48.91$5,679$5,437OtherPowerSupplyDemand104,83625,174230,010Demand-51.09/48.9166,42263,588Energy117,8831,047118,930Energy-51.28/48.7260,98757,943Subtotal$222,719$26,221(2)$248,940$127,409$121,531Transmission2,47515(1)2,490Demand-51.09/48.911,2721,218Distribution119,60214,439(1)134,041Dist.Plant—35.97/64.0348,21585,826Accounting&Collecting61,9099,051(1)70,960Customer-36.21/63.7925,69545,265Administrative&General:FranchiseTax19,719-19,719100%Inside19,719-Other102,5684,499(1)107,067PlantRatio—36.81/63.1939,41167,656SubtotalO&MExpense$538,535$55,798$594,333$267,400$326,933Depreciation122,663122,663PlantRatio—36.81/63.1945,15277,511Taxes:FICA,PUC10,68310,683PlantRatio-36.81/63.193,9326,751InLieuofProperty5,300________5,300100%Inside5,300_________TotalExpense$677,181$55,798$732,979$321,784$411,195OperatingRatios:RevenuefromkWhSales$784,137$784,137$402,865$381,272ExpenseExclusiveofTaxes$661,198$55,798$716,996$312,552$404,444OperatingRatio-¾84.3291.4477.58106.08(1)Adjustmentannualizingwageandsalatyincreases-Generalincreaseeffective1/1/74-Seeattachedallocationofsalaryadjustment.(2)Adjustmentannualizingincreaseinpurchasedpowercostseffective1/1/74.(3)Seeseparateanalysisfordevelopmentofallocationratios. 6. TOWN Of ESTES PARK COMPARISON Of RATE INCREASE ALTERNATIVES WITH RESULTS FROM EXISTING RATES (1) Revenue Expenses From kWh Exclusive Operating Sales of Taxes(Z)Ratio % Existing Rates TotalSystem $784,137 $716,996 91.44 Inside System 402,865 312,552 77.58 Outside System 381,272 404,444 106.08 Increase of 20.0% Total System $940,964 $716,996 76.20 Inside System 483,438 312,552 64.65 Outside System 457,526 404,444 88.40 (1)Based on Test Year Ending 1/31/74. (2)Reflects Pro forma Adjustments for Wage and Purchased Power Expense Increases occuring within the test year period. 00 TOWNOFESTESPARKPRELIMINARYPROGRAMFORRATEMODIFICATIONS20%OVERALLINCREASE-BASEDONTESTYEARENDING1/31/74COSTOFSERVICEBASIS%IncreaseProposedIndicatedIndicatedRevenuesActualProposedCost/kWh‘—ComputerCostof%IncreaseCostofwithProposedRevenuesRevenueProposedExistingRateScheduleCodeNo.ServiceProposedServiceIncreasesTestYearIncreaseRatesRates1.ResidentialService70,8031.821$301,091$276,477$228,493$47,9843.452.852.CombinedResidential&WaterHeating71.8136.1Z2108,23697,03479,53617.4982.832.323.AllElectricResidentialService78,8852.72471,24057,84446,64811,1961.911.544.CommercialLightingGeneral75,854.517344,540385,905329,83356,0723.553.045.CommercjalWaterHeating77,8756.8259,7607,7796,2231,5562.722.176.SecondaryPower76,8615.6195,8786,0505,0849663.933.317.LargeCombinedLight8Power74,84(0.8)1476,53087,94477,14410,8002.35Z.068.StreetLighting72,82112.0100Z3,69522.35211,17611,1762.001.00Totals20.020$940,970$941,385$784,137$157,2483.072.56-3 TOWNOfESTESPARKALLOCATIONOfCOSTOFSERVICETOCUSTOMERCLASSIFICATIONS20%INCREASEAnnualkW_AnnualWeightedCostofServiceActual%RateComputerMonthNon-EnergyNumberof(1)(2)(3)RevenuesIncreaseRateScheduleCodeNo.CoincidentalSalesConsumersDemandEnergyCustomerTotalTestYearIndicated3.ResidentialService70,8025,4208,011,8112,986132,08250,763118,246301,091228.49331.82.CombinedResidential&WaterHeating71,8110,6493,424,76678855,332Z1,69931,205108.23679,53636.13.AllElectricResidentialService78,886,8133,035,14815745,79219,2316,Z1771,Z4046,64852.74.CommercialLtghtingGeneral75,8536,19510,858,1012,Z14188,06968,79787,674344,540329,8334.55.CommercialWaterHeating77,871,125286,435535,8461,8152,0999,7606,22356.86.SecondaryPower76,86700163,77Z323,6379741,2675,8785,08415.67.LargeCombinedLightandPower74,849,7033,746,3096050,41723,7372,37676,53077,144(0.8)8.StreetLighting72,823,0601,117,6791815,9007,08271323,69511,176112.0Totals95,66530,634,0216,308$497,075$194,098$249,797$940,970$784,13720.0(HSystemdemandcost/kW.Monthcomputedtobe$5.196.(21SystemEnergycost/kWhcomputedtohe6.336mills/kWh.(3)Customercostcomputedtobe$39.60/customer—year