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HomeMy WebLinkAboutMINUTES Light and Power Committee 1988-01-07n C RECORD OF PROCEEDINGS /Light and Power Committee January 7,1988 Committee:Chairman Hix,Trustees Brown and Habecker Attending:Chairman Hix,Trustee Habecker Also Attending:Mayor Dannels,Town Administrator Hill, Light and Power Director,Finance Officer Vavra,Clerk O’Connor Absent:Trustee Brown TWO VEHICLES -REVIEW OF BIDS. The Committee reviewed a bid summary sheet for two (2)“Jeep” vehicles.Pollard Friendly Motors,Boulder,submitted the lowest bid for two vehicles,allowing $5,500 for one Bronco which will be used as a trade-in.The 1988 Budget contained $24,000 for such an expenditure.Following discussion,the Committee recom mends the bid,in the net amount of $18,846 for two vehicles,be awarded to Pollard Friendly Motors. RESIDENTIAL DEMAND -METERED RATE -RESULTS OF R.W.BECK STUDY. In a letter dated December 23,1987,submitted by R.W.Beck and Associates,five (5)options were summarized,as follows: Case #1 The customer is given a choice of continuing on the Residential Demand Rate or switching to the Res idential Rate. Finding.It is estimated that 48%of the de mand—metered customers will switch to the Residen tial Rate and revenues are estimated to decline by $30,500,a 7.5%reduction in those customers’ revenue. Staff Comment.Revenue loss seems excessive.This option could encourage some customers to switch that do not really fit into the category we are attempting to help. Case #2 The customer is given the choice of continuing on the Residential Demand Rate or switching to the General Service Small Rate. Finding.23%of the demand—metered customers are estimated to switch to the General Service Small Rate and an estimated lost of revenue is $13,150,a 3.2%reduction in revenue from those customers. Staff Comment.This option would eliminate demand and ratchet which seem to be difficult for part—time customers to accept.Revenue loss would not be excessive. Case #3 The 60%ratchet would only be applied when there is recorded use on the system.In cases where there is no use,the customer would pay only the service charge. Finding.Revenue loss is estimated to be $7,200,a 1.8%reduction in revenue from those customers. Staff Comment.The 60%ratchet would remain in force,therefore,the impact to seasonal electric 0 0 RECORD OF PROCEEDINGS Light and Power Committee -January 7,1988 -Page two consumers would not be reduced in billing periods where electric use is minimal.The philosophical problem of high demand costs with very low electric use would remain. Case #4 The 60%ratchet would no longer be in effect,and customers would only be hilled on demand,energy, and a service charge. Finding.Revenue loss is estimated to be $14,300, a 3.5%reduction in revenue from those customers. Staff Comment.Each month’s billing would stand on its own;the 60%ratchet would not apply;however, it appears this could result in high system peaks when customers learn they will be billed one time only for a high demand. Case #5 Present 60%ratchet is reduced to 40%. Finding.Revenue loss is estimated to be $7,200, 1.8%reduction in revenue from those customers. Staff Comment.This option would have a slight affect on the billing for seasonal electric consum ers;however,with the basic problem of the ratchet concept,seasonal users still would be impacted. Light and Power Director Dekker reported he contacted various other municipalities and determined they do not use a monthly minimum billing demand (ratchet).There are approximately 600 Residential Demand-Metered Accounts that could be affected by a tariff amendment.The Light and Power Department could provide an analysis of each of these accounts which could assist each customer in evaluating their system.Should such a tariff amendment be approved,a customer would be required to remain in the chosen rate class for a 12-month period.Following the 12-month period,the customer could elect another rate class. Discussion followed pertaining to any potential negative impact to the Town’s wholesale power rate with the Platte River Power Authority.Director Dekker reported the wholesale rate could raise slightly. Pursuant to House Bill 1283,any amendment to the tariff would require a public notice,public hearing and ordinance.Legal fees are estimated to be $2,000;additional consulting fees are approximately $1,000.The Committee recommends the Town proceed with the amendment,electing Case 2 as the preferred option, authorizing an estimated expenditure of $3,000 for associated expenses. REPORTS: Six firms have responsed to the RFP5 issued for design of the new service building.Several of these firms will be interviewed in the near future. The Town’s NCR Representative will submit an economic feasibility assessment of the hand—held meter reading devices currently under investigation. The Committee received a Legislative Report submitted by the American Public Power Association. Current Projects:Christmas Decorations are being removed and stored;and work is continuing on the Cheley/Baldpate Project. o RECORD OF PROCEEDINGS Light and Power Committee -January 7,1988 -Page three The Delinquent Account Report for December indicated 8$telephone calls were made,19 notes were placed at the customer’s resi dence,and 10 accounts were disconnected.In comparing December, 1986 -calls are down 30%,notes are down 65%,and disconnected accounts are down 50%. Work is progressing on the Cascade Diversion Structure.Con struction should be completed by spring. Due to the cold weather,the Department has been working on numerous water thaws.The electric meter is disconnected when a welding rig is used to thaw water lines.In an effort to recover expenses,the Department assesses a flat charge. The Town’s highest system peak to date of 15.84 megawatts was reached December 26,1987.This was more than 15%higher than the same period in 1986. Finance Officer Vavra reported the Department of Revenue conduct ed an audit of the Town’s sales tax collections and reporting procedures.The Department commended the Town in maintaining a high standard of performance. There being no further business,the meeting adjourned. Vickie O’Connor,Town Clerk JAN12S TOWN OF ESTES PARK , L BOARD OF TRUSTEES J‘•%——.————