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Home My WebLink AboutAgenda Packet - May 22, 2006 - CC CIO f F AZUSA .COT & k'RTE1. INFORMATIONAL ITEM TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD AND AZUSA CITY COUNCIL FROM: JOSEPH F. HSU, DIRECTOR OF UTILITIES T� DATE: MAY 22, 2006 SUBJECT: CALIFORNIA ELECTRIC RATE INCREASES SINCE 2000 For your information the attached spreadsheet and bar charts are from the most recent survey compiled by California municipal utilities rate group. This does not include the latest rate increase authorized by the California Public Utilities Commission to increase retail rates for Edison customers by 8% retroactive to mid-January, 2006. Azusa's average retail rate compares favorably with both municipal utilities and investor- owned utilities. Staff will be presenting a multi-year fiscal projection for Azusa's electric utility including future rate implications in Utility's budget workshop scheduled for May 30, 2006 Attachments Rate Survey.xls 19/19/11/1 ° 2 e/-- \r(\\ 052 Expected 2007 Average System Revenue Per KWh (In $/KWh) Avg. System Rate$/kWh (Updated May, 2006) City of Santa Clary 0.086 Palo Alto 0.087 ---- - SCE imisimmimmommi - - - -- 0.143 - -- Roseville Electric 0.089 Lodi 0.142 Redding 0.090 SDGE NNNNmNNNNmmmimim 0.140 Anaheim 0.091 PGE 0.139 Turlock ID 0.097 SMUD 0.099 Burbank iiimmimmismismas 0.127 LADWP 0.100 Alameda 0.126 Modesto Irrigation 0.103 Glendale iiimmimmimmii 0.123 Imperial Irrigation 0.108 Pasadena iiimmim 0.122 Azusa 0.110 Lompoc similimmommaim 0.113 Riverside Utilities 0.111 Lompoc 0.113 Riverside Utilities iiiimi 0.111 Pasadena 0.122 Azusa immismommummi 0.110 Glendale 0.123 Imperial Irrigation District iimmimmim 0.108 Alameda 0.126 Modesto Irrigation District immosimmummi 0.103 Burbank 0.127 LADWP immimimmiimmi 0.100 PGE 0.139 SMUD miiimmiimmim 0.099. SDGE 0.140 Lodi 0.142 Turlock ID simmimmummit 0.097 SCE 0.143 Anaheim iii 0.091 Redding Nimmimaimmi 0.090 Roseville Electric ommisimmius 0.089 Palo Alto immisimmium 0.087 City of Santa Clara ammiimmimi 0.086 O Ut CO Cumulative Rate Increase 1999-2007 (Updated May, 2006) Cumulative Anaheim 1.13% Modesto Irrigation District INNWEIMMMINNIMININ 61.60% LADWP 3.85% Palo Alto 11111111111111MMIIINIMMIN 55.16% Pasadena 7.22% Glendale 8.41% Imperial Irrigation District 1111111111 44.29% City of Santa ClarE 10.30% PGE 42.10% Riverside Utilities 13.70% SCE IIIIIIINANVISSEGNIM 41.94% Lompoc 15.30% ° Redding 19.90% SDGE 39.91 /o Lodi 20.00% Turlock ID sinsionfim 31.98% Alameda 20.28% Burbank INS1821115111111125.24% Azusa 21.28% Roseville Electric 111111111111110 22.71% SMUD 22.56% Roseville Electric 22.71% SMUD 111111118111111111 22.56% Burbank 25.24% Azusa MIME 21.28% Turlock ID 31.98% Alameda 11111111=11 20.28% SDGE 39.91% SCE 41.94% Lodi NM=20.00% PGE 42.10% Redding 111611121E 19.90% Imperial Irrigation 44.29% Lompoc OMR 15.30% Palo Alto 55.16% Riverside Utilities 18111111118 13.70% Modesto Irrigation 61.60% City of Santa Clara 110 10.30% Glendale MI 8.41% Pasadena ®7.22% LADWP is 3.85% Anaheim 11.13% J CJ1 California Electric Rate Increases Since 2000 Initial Avg. Connection Fees Expected Cumulatl Utility System Rate 2000 2001 2002 2003 2004 2005 2006 System Notes New Services (R (1999) 2007 ve Rate S/kWh° and Com) Utility-Wide Weighted Average Retail Electricity Prices 1980-2005.CEC, 01/01/2006.CEC's statistics seem to be filcher than actuals.Assumes no rate actions in 2007.However,SDGE's San Dleg0 Gas Advice Letter 1759-E Includes an &Electric $0.1000 32.9% 5.9% 2.8% -15.5% 9.2% 0.8% 4% 0.0%` 39.9% $0.1399 average rate increase of+6.6%, effective in January 2006.With those electric rates the average system revenue per KWh is approx$0.13935 /KWh. So,using our previos statistics I've assumed a+4%effect in 2006 to get closer to$0.1399(Alcides H). In summary.PGE's average rate in 2006 Includes 6,4%rate increase 70, :1...I Letter 2804-E).Assumes no rate action in 2007. [Advice Letter 2804-E 04-01- PGE $0:0981 0.1% 19.6% 8.3% 3.6% -3.5% 2.8% 6.7% 0.0% 42.1% $0.1394 06,March 27,2006,Attachment 2,Page .Revisions to Electric Tariffs to Comply with 2006-2008 Demand Response Program Decision 06-03-024 to be effective April 1,2006.Total proposed system average is$0.1394/KWh.] Utility-Wide Weighted Average Retail Electricity Prices 1980-2005.CEC, 01/01/2006.Per SCE Advice Letter 1962 E:implementation of February 4,2006 Southern Cal $0.1053 0.7% 27.2% -0.4% 2.7% -7A% 6.2% 10.3% 0.0% 41.9% $0.1427 Consolidated Revenue Requirement and Edison Rate Change in Accordance with Decision No.06-01-035'.SCE will implement its consolidated rate change on February 4,2006.Assumes no rate action in year 2007. Res. 4703: Alameda P&T will furnish and install a Service Drop at no cost to the Alan Hanger/Mike Brown,April 27,2006.Customer for permanent Service locations in Average System Rate Changes areas designated by the City of Alamed. (pgerev).Various Class Rate increases and Alameda P&T as overhead districts fo Alameda $0.1044 0.0% 0.9% 0.0% 4.9% 11.8% 0.0% 1.8% 0.7% 20.3% $0.1255 but no general rate increase throughout Service Facilities smaller than 400 Amperes. period.We are proposing a 5%increase UGR Sry in UGR Districts: For any new in one municipal class for 2007,and Service that requires modification of an adding the third tier for the residential existing Primary Voltage Trunk Feeder class.The PUB hasn't approved it yet. system,the Customer requesting the Service will pay all costs of such modifications as determined by Alameda P&T. CMRG Survey 06/01/05 Page 1 • �Cq V� California Electric Rate Increases Since 2000 Initial Avg. Connection Fees Expected Cumulati Utility System Rate 2000 2001 2002 2003 2004 2005 2006 2007 ye System Notes New Services (R (1999) Rate$/kWh and Com) Renee Hoffman,Anaheim,05/23/05: Anaheim $0.0900 0.0% 2.2% 0.0% 0.0% -1.0% 0.0% 1.1% $0.0910 Next change Jan.1,2006(5-7%under review:%TBD) Azusa bills the developer or customer based on the actual cost of labor and material fo service connection. For typical ne Azusa $0.0910 0.00% 0% 5% 10% 0% 5% 0% 21.3% $0.1100 Provided by Bob Tang,04/26/06 subdivision type residential development is approximately $1,500 to $2,000 per unit residence. Commercial installations really depend on the scope of the work and can vary widely. AID in Construction Charges,Schedule AIC. 100% of actual costs. There are two charges: A) On-site facility charge (minimum) and B) Off-site facility charge. The For A) equal to 100% of the costs incurred by the Department. Costs shall Per Jeanette Meyer and CMRG Spring include,but not be limited to contract labor, Conference:The utility is proposing a meters, poles, transformers, switches, and Burbank $0.1050 0.0% 21.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.5% 25.2% $0.1270 3.5%rate increase effective July 1, associated equipment and materials..For B) 2006. It has yet to be approved by the The customer/developer will pay up to 100% City Council. of the cost of off-site improvements to extend or upgrade overhead/underground distribution lines . Off Charges are as follows:a)MF UGR$0.462/Sft,b)High-rise Comm UGR $0.462/Sft, c) Comm Building >100K sft $$0.462/sft, d) Large Ind UGR $0.462/sft. Valerie Apmadoc,Glendale,05/24/05: Glendale $0.1136 0.0% 16.7% -7.1% 0.0% 0.0% 0.0% 8.4% $0.1230 Daily rates 3/2000,Seasonal Rates 1/2002.New rates w/Cost Adj Formula in January 2006 Imperial Per IID presentation,CMRG Spring Irrigation $0.0812 9.7% 5.5% -0.3% 7.8% 0.0% 0.0% 0.0% 16.0% 44.3% $0.1076 Conference,April 24-25,2006. IID is District considering the implementation of a Rate Stabilization Fund. C CMRG Survey 06/01/05 Page 2 California Electric Rate Increases Since 2000 Initial Avg. Connection Fees Expected Cumulati; Utility System Rate 2000 2001 2002 2003 2004 2005 2006 System Notes New Services (R (1999) 2007 ye Rate 6/kWh and Corn) LADWP is recommending to unfreeze existing ECAF and establish a renewable energy pass-through factor. The proposal includes quaterly LADWP $0.0960 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.9% 3.9% $0.0997 adtjustments.The avg Rev/kwh in FY06 has been calculated using$2,321 Mil divided by 23,991 GWh(source: LADWP FY06 Financial Projections, slide 7) Per City of Lodi Council Communication, Agenda Item L-01 b,Nov 2,2005. After Lodi $0.1180 20.0% 20.0% $0.1420 Second Reading of Ordinance 1765, Approve Resolution Establishing Market Cost Adjustment(s)to be effective December 2,2005(EUD) Rene Vise,Lompoc,04/27/06: We are Resolution 3123(81): Electric t=r rolling our deregulation Dost Installations: 1-Temporary Const$134.00; adjustmur der A)of 1.50cents/kwh into 2-Residential$158.14;3-Commercial:a)SF Lompoc $0.0980 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15.3% 0.0% 15.3% $0.1130 the permanent rates as of 5/01/06. The up 200A$239.88,b)SF 400-600A$619.13, DCA was set to expire on Decmeber 31, c) 3Ph up 200A $619.13, d) 3Ph 2006 Trans.Rated 400-800A $1070.75, and e) 3Ph Trans.Rated 1000.3000A$1853.36. The MID Board of Directors approved an overall 9%increase for all electric customer classes in January.Source: MID Update FEB/MAR 2006 Edition. Modesto MID Board Meeting of Tuesday,Nov.8, Irrigation $0.0640 0.0% 5.4% 3.8% 8.9% 7.7% 9.0% 9.0% 6.0% 61.6% $0.1034 2005,the original option 2 was 9% $24 meter read fee,$150 deposit/ District increase in Jan.2006. No further $24 meter read fee,$300 deposit increase likely in 2006. "Will recommend a 6%increase in 2007.No action is final until the Board adopts' (Lou Hampel,April 27,2006) Palo Alto $0.0464 0.0% 43.0% 0.0% 0.0% 0.0% 8.5% 55.2% $0.0874 Per Eric.Keniston®CltyofPaloAlto.org& NCPA Data. Pasadena $0.1140 4.4% 24.4% -35.8% 7.4% 4.5% 5.0% 5.0% 4.0% 7.2% $0.1222 Per PADWP presentation,CMRG Spring Conference,April 24-25,2006 ♦Q� V O iski CMRG Survey 06/01/05 Page 3 California Electric Rate Increases Since 2000 Initial Avg. Connection Fees Expected;Cumulati Utility System Rate 2000 2001 2002 2003 2004 2005 2006 2007 Ve System Notes New Services (R (1999) Rate S/kWh and Com) Deferring consideration of an Electric Utility rate adjustment until March/April Redding $0.0731 6.9% 4.0% 4.0% 0.0% 3.7% 19.9% $0.0900 2006.GWh sales in FY07 are approx 796 GWh and Retail Revenues$79.6 Mil. Per Candice Shih,May 1st,2006: Anticipated 4-6%rate increase in 2007. Riverside Anticipated Average System rate will be Estimated average connection fee on new Utilities $a0976 0.0% 0.0% 3.4% 3.1% 2.2% 0.0% 0.0% 4-6% 13.7% $0.1110 $0.1110/kW h assuming a 5%increase services for Residential Customer with OH in 2007.The above rate per kWh is will be$0.60/SF. excluding the UUT,PUC and State Energy Tax. RE bills to developers or customers •. • Qn aoorox pt tfj actual gst gf I •o RE is considering a electric rate ,material gag Indirect costs for service adjustment.If approved by City Council, connection. For typical new residential (as the rate changes will be effective in July part of subdivision)the cost is approximately Roseville 2006 and July 2007.More information $1'300 per unit. Commercial installations Electric $0.0719 6.0% 0.0% 0.0% 0.0% 0.0% 5.0% 5.0% 5,0% 22.7% $0.0890 can be found on RE's web site annd The vanes due to a variety of projects.Our rate City of Roseville Web site. proposal considers full reimbursement of http://www.roseville.ca.us/or Roseville Electric's costs. More www.rosevilleelectric.org/ development fee information can be found at: http://www.roseville.ca.us/gov/community_de velopment/development_permit_process.asp Per Ralph Carlson,May 2nd,2006. The Residential New Const.$$1,050/lot,Mete system average revenue per Kwh in year and Service(No charge), Commercial New SMUD $0.0810 0.0% 22.0% -2.6% 0.0% -2.7% 6.0% 0.0% 0.0% 22.6% $0.0993 2006 is$0.0993/KW h'. Year 2007 Construction (estimated cost of service), assumes no rate actions,however,due Commercial Upgrade <3MW Prim/Se• to expected higher gas prices,that $40.00/KW, Commercial New Construction assumption may change in 2007/08. <3MW Prim/Sec$40.00/KW. Per Debby Barry(05/01/06)& Memorandum to City Manager for Silicon Valley Council Action 10/28/05:Approved 1st Power(City of $0.0780 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10.3% 10.3% $0.0860 5%increase effective Jan 1,2006.And Santa Clara) 2nd 5%increase effective Jul 1,2006. Per Council Memo,rate increase when compounded equals 10.3% • O CMRG Survey 06/01/05 Page 4 CO California Electric Rate Increases Since 2000 Initial Expected,Cumulati Avg. Connection Fees Utility System Rate: 2000 2001 2002 2003 2004 2005 2006 2007 ye System Notes New Services (R (1999) Rate`S/kWh and Corn) TID News Release,Dated Dec 13,2005. TID Directors approve 2006 electric rate increase. A proposal to increase retail Turlock electric rates an average of 15 percent Irrigation $0.0732 0.0% 0.0% 0.0% 9.3% 0.0% 5.0% 15.0% 32.0% $0.0966 next year was approved.The Power District(TID) Supply Adjustment(PSA)discussed last year will be calculated in April 2006 to determine the amount of any additional revenue that must be collected to handle increasing fuel or electric prices. Q I t� CMRG Survey 06/01/05 Page 5