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HomeMy WebLinkAboutResolution No. 05-C0730 0 RESOLUTION NO. 05-C73 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, AMENDING THE SCHEDULE OF ELECTRIC RATES AND CHARGES FOR AZUSA LIGHT & WATER. WHEREAS, pursuant to Section 78-36 and Section 78-37 of the Azusa Municipal Code, the rates and charges of the City of Azusa Electric Utility are set by Resolution approved by the City Council; and WHEREAS, Section 15079.1 of the guidelines for the implementation of the California Environmental Quality Act (CEQA) stipulates that the review provisions of CEQA do not apply to matters of government finance when the funds are for: (1) meeting operating expenses; (2) purchasing or leasing supplies, equipment or materials; (3) meeting financial reserve needs and requirements; and (4) obtaining funds for capital projects necessary to maintain a service within existing service areas; and WHEREAS, in order to meet expenses for the San Juan Generating Station environmental and facility upgrades, the City of Azusa has a need to review the schedule of rates and, charges for the City of Azusa's Electric Utility; and WHEREAS, the proposed rate changes by nature pertain to government finance in meeting Azusa's Electric Utility's operating expenses and to fund capital improvements, including but not limited to, costs associated with the San Juan Generating Station; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,.DOES: FIND. AND DECLARE THAT: SECTION 1: The City's schedule of rates and charges for its Electric Utility are hereby,_ . amended to read as in Exhibit A which is attached to this Resolution and made a part of it; and SECTION 2: The review of provisions of California Environmental Quality Act do not apply to these amendments. SECTION 3: The amended rates and charges of the City of Azusa Electric Utility shall take effect for all bills rendered on or after October 1, 2005. SECTION 4: The City Clerk shall certify the adoption of this Resolution. PASSED AND APPROVED on this 6' day of September 2005. Mayor I HEREBY CERTIFY that the foregoing resolution was duly passed by the City Council of the City of Azusa at a regular meeting thereof on the 6`h day of September 2005, by the following vote of the City Council: AYES: COUNCIL MEMBERS: HARDISON, CARRILLO, ROCHA, HANKS, CHAGNON NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE City Clerk 0 EXHIBIT "A" E PROPOSED ELECTRIC RATE SCHEDULES All rates in attached schedule reflect a 5% increase 0 0 ELECTRIC RATE SCHEDULES SCHEDULE D RESIDENTIAL SERVICE Applicability: This schedule is applicable to domestic service including lighting, heating, cooking, and power or combination thereof in a single-family accommodation. Territory: Within the electric service territory of the City of Azusa. Rate: Minimum Charge: per meter per month $3.18 $3.34 Energy Charge: First 250 kWh, per kWh 9.660 10.14 All excess kWh, per kWh 1"'� 13.006¢ Special Conditions: 1. The above rates are subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rates. 3. A State Public Benefit Program Charge may be added to the above rates. ti EFFECTIVE 8/29/2005 Electric Rate Schedule - 1 0 0 SCHEDULE WHISH RESIDENTIAL SERVICE FOR WATER AND/OR SPACE HEATING Applicability: This schedule is applicable to domestic use of electricity as sole source of energy, other than solar for water and/or space heating. It is supplemental to Schedule D. Territory: Rate: Within the electric service territory of the City of Azusa. Minimum Charge: per meter per month Energy Charge: First 250 kWh, per kWh Allowance for water heating, per month 250 kWh, per kWh Allowance for space heating, per month* 550 kWh, per kWh All excess kWh, per kWh *From November I to April 30 Special Conditions: $34-8 $3.34 9-.W 10.14d 4.-W 10.14Q 9.,W 10.W 1''� 13.006lt 1. The above rates are subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rate. 3. Residence requesting discount rate shall be verified by City employee of its heating equipment on premises. EFFECTIVE 8/29/2005 Electric Rate Schedule - 2 SCHEDULE RL RESIDENTIAL SERVICE WITH LIFE-SUPPORT DEVICES This schedule is applicable to residential use of electricity for life-support devices in addition to lighting, heating, cooking and power or combination thereof in a single-family accommodation. Territory: Rate: Within the electric service territory of the City of Azusa Minimum Charge: per meter per month Energy Charge: First 250 kWh, per kWh Additional allowance for Life Support Device, per month All excess kWh, per kWh Special Conditions: 5-348 $3.34 0-6W 10.14 nW 10.14d '''� 13.006d Each eligible residential customer may be allowed an additional lifeline quantity of electricity, upon application to the utility where such customer provides certification that full-time resident of the household regularly requires the use of an essential life-support device which is defined below including heating and/or cooling as medically required for listed serious illnesses: Aerosol Tents Compressors Compromising Immune System Illnesses Hemodialysis Machines Electrostatic Nebulizers Electric Nerve Stimulators EFFECTIVE 8/29/2005 IPPB Machines Iron Lungs Life-threatening Illnesses Motorized Wheelchairs Multiple Sclerosis Paraplegia Pressure Pads. Pressure Pumps Quadriplegia Respirators (all types) Scleroderma Suction Machines Ultrasonic Nebulizers Electric Rate Schedule - 3 0 0 Schedule RL (continued) Procedure for Certification: The Utility may require that: a. The customer have a medical doctor or osteopath licensed to practice medicine in the State of California provide the Utility with a letter, acceptable to the Utility, describing the type of regularly required life-support device and the utilization requirement in detail; or b. County, State or Federal agencies, using an established notification letter to electric utilities, provide the Utility with information relative to patients who regularly require the use of a life-support device in the house. Upon the above certification, the Utility shall estimate the monthly consumption of the particular life-support device, given the usual hours of operations per month, and within 30 days add the incremental estimated monthly usage to the customer's lifeline quantity. The Utility may require a new or renewed application and/or certification, when needed in the opinion of the Utility. 2. Verification: Not more than one lifeline quantity will be allowed for each single-family dwelling or accommodation on the premises. However, where there are multiple life- support devices at such single-family dwelling or accommodation, all such devices shall be totaled for one lifeline quantity. The number of single-family accommodations on the premises and the existence of the specified end use equipment required to obtain certain lifeline quantities of electricity, as set forth on the applicable rate schedules are subject to verification by the Utility. Termination of Use: Customers shall give the Utility notice of termination of use of equipment or devices. In the event the Utility ascertains that the customer is not eligible for such additional lifeline quantity, such customer may be re -billed as if no such additional lifeline quantity had been allowed. 4. The above rates are subject to fuel cost adjustment. A State Surcharge Tax maybe added to the above rates. EFFEC77VE 8/29/2005 Electric Rate Schedule - 4 0 0 SCHEDULE G GENERAL SERVICE Applicability: Applicable to single and three-phase general service including lighting and power. Territory: Within the electric service territory of the City of Azusa. Rate G-1: Customer Charge: per meter per month $5-.78 $6.07 Energy Charge (to be added to customer charge) First 500 kWh, per kWh 44.440 15.16 All excess kWh, per kWh 11.84¢ 12.432 Minimum Charge: The monthly minimum charge shall be the monthly customer charge. Rate G-2: Demand Charge: First 20 KW or less of billing demand No Charge Additional KW of billing demand, per KW $6-9-3 $7.28 Energy Charge: First 500 kWh, per kWh 14.440 15.16¢ Next 4,500 kWh, per kWh 12.710 13.350 Additional kWh, per kWh q4 50 8.240 Minimum Charge: The monthly minimum charge shall be $1-38.60 145.53 if the energy charge is less than $138.69 $145.53, EFFECTIVE 8/29/2005 Electric Rate Schedule - 5 0 0 Schedule G (continued) Special Conditions: 1. Service will be supplied at one standard voltage through one meter. 2. Rate G-2 is applicable when a demand meter is installed in accordance with Condition 3. 3. A maximum demand meter will be installed when, in the opinion of the Utility, the customer's load and use characteristics indicate that the maximum demand may exceed 20 KW or when the customer requests a demand rate. 4. The billing demand of the month shall be the maximum kilowatt measured in the 15 - minute interval in that month, but not less than 50% of the highest demand established in the preceding 11 months. Billing demand shall be determined to the nearest 1/10 KW. 5. When the use of energy is seasonal or intermittent, no adjustment will be made for a temporary discontinuance of service. Any customer, prior to resuming service within 12 months after such service was discontinued, will be required to pay all charges which would have been billed if service had not been discontinued. 6. The above rates are subject to fuel cost adjustments. 7. A State Surcharge Tax may be added to the above rates. EFFECTIVE 8/29/2005 Electric Rate Schedule - 6 0 0 SCHEDULE GL LARGE GENERAL SERVICE Applicability: Applicable to single and three-phase general service including lighting and power. This schedule is mandatory for all customers whose monthly maximum demand has exceeded 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also exceeds 200 KW. Any customer whose monthly maximum demand has fallen below 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also is less than 200 KW may be required to take service on Schedule G-2. Territory: Rate: Within the electric service territory of the City of Azusa. (Identical to Rate G-2 with the exception of minimum charge and power factor adjustment.) Minimum Charge: The monthly minimum charge shall be the monthly demand charge or 5138.6A $145.53, whichever is greater. Special Conditions: 1. Service will be supplied at one standard voltage through one meter. 2. Billing Demand: The billing demand in any month shall be the average kilowatt input indicated or recorded by instruments to be supplied, owned and maintained by the utility and at the Utility's expense upon the consumer's premises adjacent to the watt-hour meter, in the 15 -minute interval in which the consumption of electric energy is greater than in any other 15 -minute interval in the month, but not less than 50% of the highest billing demand in the preceding 11 months. Billing demand shall be determined to the nearest KW. Whenever the measured maximum demand has exceeded 400 KW for 3 consecutive months and thereafter until it has fallen below 300 KW for 12 consecutive months, a 30 -minute interval will be used. Where the demand is intermittent or subjected to violent fluctuations, the maximum demand may be based on a shorter interval. EFFECTIVE 8/29/2005 Electric Rate Schedule - i 0 0 Schedule GL (continued) 3. Power Factor Adjustment: When the billing demand has exceeded 200 KW for 3 consecutive months, a kilovar-hour meter will be installed as soon as practicable. The charges will be increased for each KVAR in excess of 60% of the billing demand in the amount of 44 46 0 per KVAR. The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatt-hours. Demands in kilowatts and kilovars shall be determined to the nearest 1/10 (0.1) unit. A ratchet device will be installed on the kilovar-hour meter to prevent its reverse operations on leading power factors. 4. Voltage Discount: The charges before power factor and fuel cost adjustments will be reduced by 4% for service delivered and metered at 12 KV. 5. Temporary Discontinuance of Service: When the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within 12 months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 6. The above rates are subject to fuel cost adjustments. 7. A State Surcharge Tax may be added to the above rates. EFFECTIVE 9/29/2005 Electric Rate Schedule - 8 SCHEDULE TOU TIME -OF -USE General Service Demand Metered Applicability: Applicable to single and three-phase general service, including lighting and power. This schedule is mandatory for all customers whose monthly maximum demand has exceeded 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also exceeds 200 KW. Any customer whose monthly maximum demand has fallen below 200 KW for any 3 months during the preceding 12 months and whose average demand for the preceding 12 months also is less than 200 KW may be required to take service on Schedule G-2. Territory: Rates: Within the electric service territory of the City of Azusa. Customer Charge: Demand Charge Per Meter per Month Summer All kW of Maximum Demand, per KW (Non -time Related Component) Time Related Component (To be added to Non -time Related Component) All KW of on -peak maximum demand per KW Plus all KW of mid -peak maximum demand, per KW Plus all KW of off-peak Maximum Demand, per KW Energy Charge 8A:63 $36.38 647 6.48 4-.09 1.13 0.00 Winter $34.63 $36.38 n/a 84-5 0.89 0.00 All on -peak kWh, per kWh $0.13340 $885 n/a All mid -peak kWh, per kWh0$ 09096 $0.08663 $0.09818 $0.10309 All off-peak kWh, per kWh0$ 06064 $8:05373 $0.05773 $0.06064 Charges for energy are calculated for customer billing using the components shown below. EFFECTIVE 8/29/2005 Electric Rate Schedule - 9 0 0 TOU Rate (continued) Special Conditions: 1. Time period are defined as follows: On -peak: Noon to 6:00 p.m. summer weekdays except holidays. Mid -peak: 8:00 a.m. to noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays, and 8:00 a.m. to 9:00 p.m. winter weekdays except holidays. Off-peak: All other hours. Off-peak holidays are New Year's Day, (January 1) Washington's Birthday (third Monday in February), Memorial day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Veterans' Day (November 11), Thanksgiving Day (fourth Thursday in November) and Christmas Day (December 25). The summer season shall commence at 12:00 a.m. on the first Sunday in June and continue until 12:00 a.m. of the first Sunday in October of each year. The winter season shall commence at 12:00 a.m. on the first Sunday in October of each year and continue until 12:00 a.m. of the first Sunday in June of the following year. 2. Voltage: Service will be supplied at one standard voltage. 3. Maximum Demand: Maximum demands shall be established for the on -peak, mid -peak, and off-peak periods. The maximum demand for each period shall be the measured maximum average KW -input indicated or recorded by instruments to be supplied by the City, during any 15 -minute metered interval. 4. Billing Demand: The demand charge shall include the following billing components: The time related components shall be for the kW of maximum demand recorded during the monthly billing period for each of the on -peak, mid and off-peak time periods. 5. Power Factor Adjustment: When the billing demand has exceeded 200 KW for 3 consecutive months, a kVAR-hour meter will be installed as soon as practicable. The charges will be increased for each kVAR in excess of 48.4% of the billing demand in the amount of 44 46d per kVAR. The kVAR of reactive demand shall be calculated by multiplying the KW of measure maximum demand by the ratio of the kVAR-hours to the kW -hours. Demands in KW and kVAR shall be determined to the nearest 1/10 (0.1) unit. A ratchet device will be installed on the KVAR-hour meter to prevent its reverse operation on leading power factors. EFFECTIVE 8/29/2005 Electric Rate Schedule - 10 0 0 TOU Rate (continued) 6. Voltage Discount: The charges before power factor and fuel cost adjustments will be reduced by 4% for service delivered and metered at 12 WAR. 7. Temporary Discontinuance of Service: When the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming within 12 months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. 8. The above rates are subject to fuel cost adjustment. 9. A State surcharge tax may be added to the above rates. EFFECTIVE 8/29/2005 Electric Rate Schedule - 11 E Applicability: SCHEDULE MS MUNICIPAL SERVICE 0 Applicable to single or three-phase service which supplies electricity to the City of Azusa Municipal Agency (including City of Azusa water pumping service). Territory: Rate: Within the electric service territory of the City of Azusa. Customer Charge, per meter per month S-5:7$ $6.07 Energy Charge (to be added to customer charge) Each kWh per meter per month Minimum Charge: The monthly minimum charge shall be the Monthly Customer Charge Special Conditions: The above rate shall be subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rate. EFFECTIVE 8/29/2005 Electric Rate Schedule - 12 0 Applicability: SCHEDULES f 111I_ 0 7l`1 E Applicable to single or three-phase service where the entire electrical requirements on the Customer's premises only operate in emergency or are not regularly supplied by the Utility. Territory: Rate: Within the electric service territory of the City of Azusa. Standby Charge: All KW of demand, per KW per month $2-.43 $2.55 Regular Schedule Charges (to be added to Standby Charge) All charges of the General Service Rate G-1 Minimum Charge: The monthly minimum charge shall be the Standby Charge plus the regular schedule customer charge. Special Conditions: 1. When the connected load cannot be determined in KW, the connected load will be estimated by the Utility based on tests and other information available. 2. This schedule shall apply only to service expected to operate for at least one year or longer. 3. The above rate shall be subject to fuel cost adjustment. 4. A State Surcharge Tax may be added to the above rate. EFFECTIVE 8/29/2005 Electric Rate Schedule - 13 SCHEDULE SL -1 STREET LIGHTING SERVICE DEPARTMENT -OWNED LIGHTING DISTRICTS Applicability: Applicable to lighting districts for street and highway lighting service where the Utility owns and maintains the street lighting equipment. Territory: Rates: Within the electric service territory of the City of Azusa Incandescent 4,000 Lumen (300W) Mercury Vapor Ave kWh per Month 104 Per Lamp per Month $1-2.71$13.35 7,000 Lumen (175W) 60 13.06 $13.71 11,000 Lumen (250W) 86 46.96 $17.70 20,000 Lumen (400W) 138 23a0 $24.26 High -Pressure Sodium 9,500 Lumen (100W) 35 184 $12.43 22,000 Lumen (220W) 76 16.46 $17.28 25,500 Lumen (250W) 86 161 $18.49 Special Conditions: 1. The above rate is subject to fuel cost adjustment 2. A State Surcharge Tax may be added to the above rate. 3. Hours of Service: approximately 4140 hours per year. 4. Other than Standard Equipment: Where the customer requests the installation of other than the standard equipment furnished by the Utility and such requested equipment is acceptable to the Utility, the Utility will install the requested equipment provided the customer agrees to advance the estimated difference in installed cost between such equipment and standard equipment. Advances made for this purpose will not be refunded. Facilities installed in connection with such agreements become and remain the sole property of the Utility. EFFECTIVE 8/29/2005 Electric Rate Schedule - 14 0 9 SCHEDULE SL -2 STREET LIGHT AND OUTDOOR AREA LIGHTING SERVICE CUSTOMER OWNED LIGHTING DISTRICTS Applicability: Applicable to un -metered, controlled for dusk -to -dawn operation of outdoor area lighting for purposes, such as bus shelters, street and highway lighting service parking lots, pedestrian walkways, monuments, and decorative areas where the customer owns and maintains the lighting equipment. Territory: Rates: Within the electric service area of the City of Azusa. 1. Customer charge per location per month is $3.18. 2. Energy charge 9.60 cents per kWh. Ave kWh per Month Per Lamp Per Month Incandescent 4,000 Lumen (300W) 104 13.11- 13_77 Mercury Vapor 7,000 Lumen (175W) 60 9.98 9.43 11,000 Lumen (250W) 86 1-1.46 12.03 20,000 Lumen (400W) 138 16.42 17.24 High -Pressure Sodium 9,500 Lumen (100W) 35 6-49 6.81 22,000 Lumen (220W) 76 10.46 10_98 25,500 Lumen (250W) 86 1-1.46 12_03 Special Conditions: 1. The above rate is subject to fuel cost adjustment. 2. A state surcharge tax may be added to the above rate. 3. Hours of service: Approximately 4140 hours per year, 345 hours per month. EFFECTIVE 8/29/2005 Electric Rate Schedule - 15 • Schedule SL -2 (continued) 0 4. For bus shelter and other services with more than one lamp per location. The applicable rate bases on the total wattage of the lamps installed. 5. The customer will comply, furnish, and install at their expense all necessary equipment required by local building codes. 6. All customer -owned un -metered facilities beyond the utility's point of delivery will be maintained, and operated by the customer. 7. For service at this schedule, the utility may, at its option, provide an additional point of delivery, separate from any other point of delivery provided under any other applicable rate schedule. 8. Voltages: Service under this schedule will be delivered at 120, 120/240 volts or at the option of the utility at 120/208 or 277/480 three -wire single-phase. a. Installation of additional utility facilities shall be under existing Electric Utility Rule No. 15. EFFECTIVE 8/29/2005 Electric Rate Schedule - 16 SCHEDULE SL -3 STREET LIGHTING SERVICE CUSTOMER -OWNED LIGHTING MAINTAINED BY AZUSA LIGHT & WATER Applicability: Applicable to un -metered electric service for street and highway lighting where the Customer owns lighting facilities on private property and contracts with Azusa Light & Water to maintain the street lighting equipment. Territory: With the electric service territory of the City of Azusa. Rates: High -Pressure Sodium 9,500 Lumen (100W) 25,500 Lumen (250W) Special Conditions: Avg kWh per Month I Per Lamp Per Month 11.84 $12.43 47.61 $18.49 1. The above rate is subject to fuel cost adjustment. 2. A State Surcharge Tax may be added to the above rate. 3. Hours of Service: approximately 4140 hours per year. 4. The customer will furnish and install at their expense all necessary equipment including the standard equipment required and accepted by Azusa Light & Water according to street lighting codes. 5. The customer will own the equipment, but contract with Azusa Light & Water to replace burned - out lamps and otherwise maintain the luminaire during regular daytime working hours, as soon as practicable following notification by the customer. The customer will be billed the cost of time and materials to their street light account. 6. Normal maintenance shall not include any replacement of posts or post parts when such damage is coincident with or is a result of partial or total demolition of post or when caused by riots, fire, explosions, earthquakes, disasters of major magnitude or acts of God, nor shall normal maintenance include that due to equipment developing defects in test or in service due to faults in design, manufacturing, or installation until such defects have been satisfactorily corrected. EFFECTIVE 8/29/2005 Electric Rate Schedule - 17 0 0 SCHEDULE OL OUTDOOR AREA LIGHTING SERVICE Applicability: Applicable to outdoor area lighting service, other than street and highway lighting service, where the Utility owns and maintains the area lighting equipment. Territory: Rates: Within the electric service area of the City of Azusa. Mercury Vapor 7,000 Lumen (175W) 20,000 Lumen (400W) High Pressure Sodium 9,500 Lumen (100W) 25,500 Lumen (250W) Special Conditions: Existing Pole $13.2 13.95 24.26 $25.47 -11.84 $12.43 16.75 $17.59 New Pole $16.52 $17.35 27.49 $28.86 15.07 $15.82 -19 99 $20.99 1. The Utility will, at its own expense, install, operate and maintain its standard overhead outdoor lighting equipment. Facilities will consist of a luminaire with a photo -electric switch control and a support, mounted on a Utility -owned pole at which 120V service is readily available. All facilities will be owned and maintained by the Utility. 2. The Utility will replace burned -out lamps and otherwise maintain the luminaire during regular daytime working hours as soon as practicable following notification by the customer. 3. This service will be furnished only if the installation is considered by the Utility to be of a permanent and established character. If the customer requests the removal of service during the first two years of service, there will be a 3g 151.60 charge to remove the facilities, or $577.50 $606.38 charge if removal of the pole is required. 4. The above rate is subject to a fuel cost adjustment. 5. A State Surcharge Tax may be added to the above rate. EFFECTIVE 8/29/2005 Electric Rate Schedule - 18 Schedule OL (continued) • 6. Energy: The Utility will supply the energy which is included in the monthly rate on the previous page. Hours of Service: Burning hours will be from dusk to dawn, aggregating approximately 4,080 hours per year. Credit will not be allowed for lamp outages. EFFECTIVE 8/29/2005 Electric Rate Schedule - 19 0 0 SCHEDULE FCA -SJ FUEL COST ADJUSTMENT — SAN JUAN RESOURCE (Adopted by Resolution No. 04-057) Background: The City's San Juan Unit 3 resource is its single largest resource providing up to 75% of City's annual energy requirement. Due to the sunk cost nature of San Juan resource, the cost incurred in procuring replacement power when the unit is derated, or unavailable due to scheduled or forced outages is an addition to the power resource cost that must be recovered. This rate schedule would ensure timely and prudent recovery of the replacement power costs for San Juan Unit 3 resource. Applicability: Applicable to all electric services. Territory: Within the electric service territory of the City of Azusa. Rate Determination: Rate: Energy Charge: As determined by the methodology below. The Azusa Light and Water shall determine the fuel cost adjustment component associated with its San Juan unit 3 resource pursuant to the following methodology each quarter. The Director of Utilities shall notify the City Council of the new fuel cost component associated with its San Juan unit 3 each quarter. It shall be applied to all electric bills beginning the first billing cycle of each quarter. 1. Determine the base San Juan replacement power cost for the quarter through the following calculation: (A) = Base San Juan Replacement Power Cost in $ = 30 x (N# of days during the quarter) x 24 x 0.15 x 40. 2. Determine the actual San Juan replacement power cost in $ incurred during the quarter (B). EFFECTIVE 8/29/2005 Electric Rate Schedule - 20 0 0 3. Determine other San Juan associated costs (+) or credits (-), e.g. outage insurance premium payment (+), outage insurance payout (-) incurred during the quarter (C) 4. Derive the amount of Replacement Power Cost (RPC) eligible to be recovered through the following calculation: RPC = (A) — (B) + (C) 5. Adjust the RPC in accordance with the following to derive Adjusted Replacement Power Cost (ARPC): (i) If RPC< 4750,000, then ARPC= 4750,000 (ii) If 4750,000<RPC<-$100,000, then ARPC=RPC (iii) If-$100,000<RPC<+$100,000, thenARPC=$0 (iv) If $100,000<RPC<+$750,000, then ARPC=RPC (v) If RPC>+$750,000, then ARPC=+$750,000 6. Derive Replacement Power Cost Balancing Account (RPCBA) by subtracting ARPC from RPC, i.e., RPCBA=RPC-ARPC. 7. Forecast the retail sales for the immediately succeeding quarter (R). 8. Derive the fuel cost adjustment associated with the San Juan unit 3 resource by dividing ARPC by (R). 9. Any balance remaining in RPCBA shall be added to the RPC of the immediately succeeding quarter for recovery or credit. Subject to City Council's approval, the Director of Utilities may establish a minimum RPCBA threshold to be retained for the purposes of reducing the fluctuations in fuel cost adjustment. This rate schedule is applicable to San Juan energy resource only. To the extent a need arises to apply FCA provision to energy resources other than San Juan, the Director of Utilities may implement it with the approval of the Utility Board. EFFECTIVE 8/29/2005 Electric Rate Schedule - 21 0 0 EFFECTIVE 8/29/2005 Electric Rate Schedule - 22