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HomeMy WebLinkAboutMINUTES Light and Power Committee 1992-04-091’ RECORD OF PROCEEDINGS Iight and Power Committee April 9,1992 Committee:Chairman Aldrich,Trustee Hix Attending:All Also Attending:Town Administrator Kiaphake,Ass’t. Administrator Widmer,Light &Power Director Matzke,Finance Officer Vavra,Assistant to Light &Power Director Mangelsen,Clerk 0’Connor Absent:None Chairman Aldrich called the Committee meeting to order at 2:00 P.M. MODIFICATION OF RESIDENTIAL ELECTRIC RATES TO DIMINISH DEMAND REOUIREMENTS -DISCUSSION. Director Matzke reported that pursuant to testimony given during the recent electric rate hearing,staff has researched raising the annual consumption threshold from 15,000 kwh to 20,000 kWh for demand customers.Basis for the modification is as follows: 1.Number of customers impacted:as written,approximately 575 customers would be required to transfer to the Demand Rate.If the threshold were raised to 20,000 kwh, approximately 350 customers would be affected. 2.Average consumption in rate class:in 1991,customers on the Residential Rate averaged 6,193 kWh annual consumption,and customers on the Residential Demand Rate averaged 20,500 kWh annual consumption.After these 350 electric heat customers transfer to the Residential Demand Rate,average annual consumption on the Residential Rate will be reduced to approximately 5,200 kWh and consumption on the Residential Demand Rate will rise to approximately 21,400 kWh. 3.Economic impact on customers transferred to Demand Rate: After performing approximately 75 rate comparisons,staff has determined that 15,000 kWh annual consumption is the level point between the Residential and Residential Demand Rate for customers with demand controllers. Average savings for customers with annual consumptions of 20,000 kWh is $150.00. Staff’s proposal does not change the intent of the 1991 Rate Study recommendations as the modification is based on more complete information which has been developed following the rate hearing. The Committee reviewed a proposed calendar to initiate the modification,which indicated the modification would take effect June 26,1992.Following discussion,the Committee recommends: (1)approval of the modification to raise the 15,000 kWh threshold to 20,000 kwh ,and (2)a rate hearing be scheduled on Tuesday,May 26,1992. RESIDENTIAL RATE DEMAND CONTROL REBATE -DISCUSSION. Director Matzke reported that a portion of the Residential Rate customers previously had demand controllers installed,with the electric rates which were effective January 1,1992,these customers no longer have an incentive to control their demand as their expense was based on consumption only.Staff is proposing a voluntary rebate program for these customers who would be willing to control their demands during the winter months.Following RECORD OF PROCEEDINGS Light and Power Committee -April 9,1992 -Page 2 application,a demand meter would be installed in the home which would be read during the winter months.The rebate program would be in effect for December,January and February.Participating customers would continue to be billed on the Residential Rate and the rebate would appear as a credit on their bill.Staff prepared a table to calculate monthly bills which included several ranges of kWh consumption.As this program could assist the Town is reducing its wholesale rate costs as it relates to the “peak”,the Committee recommends approval of the rebate program to be implemented for December,1992,and January and February,1993,after which the program will be evaluated to determine whether it should be continued or modified. MAINFRAME COMPUTER -AUTHORIZATION TO SEEK BIDS. Finance Officer Vavra reported that the 1992 Budget included funds to purchase a mainframe computer software,hardware,conversion and training.The current NCR 9300 computer is eight (8)years old, near capacity,and is malfunctioning on a regular basis.The Committee recommends staff be authorized to seek bids as requested, returning to the Committee for further review. PURCHASE POWER RIDER -REPORT. Pursuant to an increase to Platte River from WAPA,Platte River approved a 5.94%wholesale power rate increase to its member cities.The Purchase Power Rider formula adopted by the Town in December,1991,allows the Town to pass—on this increase by calculating the Town’s purchase power costs at the new wholesale rate.This calculation results in a Purchase Power Rider of $0.00234/kWh which will be added to the energy charge for all electric rates.The average increase is 3.56%for all rates,and a 3.3%increase for the average residential customer.The rider will be applied to electric bills beginning with the first billing cycle in May,1992. REPORTS. The Committee reviewed the Financial Statement for February and requested the report be modified to indicate a subtotal of expenses and revenues,followed by capital expenditures. As requested by the Committee February 13,1992,staff provided detail information on the Administration and General Operation Expenses budget line item.Ass’t.Administrator Widmer reviewed and clarified the nineteen (19)components of this line item. In a memorandum dated April 3,1992,Staff presented an update on information pertaining to the General Fund Transfer.The memo outlined the history of Light and Power revenues,expenses, transfers from 1979 -1992.The transfer has increased 10%/year since 1984.Staff is currently analyzing data from other Colorado utilities to compare transfer practices,and their goal is to present a Financial Plan to the Committee for potential adoption of a Transfer Policy prior preparation of the 1993 Budget. Project Updates:year—to—date new services total 84 as compared to 30 in 1991,and 24 in 1990;the Highway 7 curve realignment is almost complete,with underground installations for the Project to be completed pending additional work by the State Highway Department;underground installation in Arapaho Meadows is 60% complete;and street lights have been installed (underground feed) on Scott Ave.,at Fish Creek Road,and Highway 7 in accordance with the Carriage Hills Annexation Agreement. Mike Mangelsen/Assistant to the Light and Power Director,presented 0 0 RECORD OF PROCEEDINGS Light and Power Committee -April 9,1992 -Page 3 an update on the PRPA Energy Efficiency Task Team.Each member city has identified a preliminary list of proposed programs aimed at energy efficiency.The Town’s list includes: commercial/industrial lighting,residential lighting,residential water heating cycling,residential appliances,and residential electric thermal heat storage.A final report identifying recommendations for each city will be forthcoming.Assistant Mangelsen noted that WAPA will present an energy efficient lighting program in Estes Park May 12 and 13.Customer energy audits are being conducted which will assist the Town in shedding its load during peak periods. Ass’t.Administrator Widmer reported on recent PRPA activities (audit,Craig Generating Station/Mof fat County Commissioners,and Colorado Ute bankruptcy.Estes Park is included in various vendor bids,and PRPA recently purchased two vehicles from Rains Ford. There being no further business,Chairman Aldrich adjourned the meeting at 3:30 P.M. L lL Vickie O’Connor,CMC,Town Clerk APR14199? 4 J E3’LS c IW,ThL.