HomeMy WebLinkAboutO-694ORDINANCE NO. 6114
AN ORDINANCE PROVIDING THAT THE CODE OF ORDINANCES OF THE CITY OF
FAIRHOPE, ALABAMA, BE AMENDED BY REVISION OF SECTION 21-21 BY THE
ADOPTION OF THE FOLLOWING ELECTRIC RATES FOR ALL ELECTRIC CUSTOMERS
OF THE CITY.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF FAIRHOPE, ALABAMA, as
follows:
Section One. Code of Ordinance;, City of Fairhope, Alabama, Section 21-21, is
hereby revised as per the following new rates for all electric customers served
by the City:
RESIDENTIAL - R1
First 20 KWH/month for $4.50 (Minimum), plus
Next 980 KWH/month @ $ .060, plus
All over 1,000 KWH/month @ $ .0588 (June thru October),
OR
$ ..0464 (November thru May),
plus ECA & Tax.
COMMERCIAL - Cl
(Demand less
than 50 KW)
First
20
KWH/month for
$4.50
(Minimum), plus
Next
1,980
KWH/month @
$ .074
, plus
Next
3,000
KWH/month @
$ .070
, plus
Next
7,000
KWH/month @
$ .064
, plus
All over
12,000
KWH/month @
$ .054
, plus ECA $ Tax.
INDUSTRIAL - I1
(Demand 50 KW and above)
Demand- All Demand @ $5.00 per KWH/month; Minimum Demand is 75%
of highest demand imposed during preceding 11 months, but
not less than 38 KW = $190.00, plus
Energy- First 20,000 KWH/month @ $ .049 , plus
Next 80,000 KWH/month @ $ .044 , plus
Next 100,000 KWH/month @ $ .040 , plus
All over 200,000 KWH/month @ $ .039 , plus ECA $ Tax.
SCHOOLS & CHURCHES - M1
All KWH @ Residential rate - R1.
SECURITY LIGHTS
175 W. MV Security Light @ $ 6.25 per month plus Tax.
400 W. MV Security Light @ $11.00 per month plus Tax.
CITY USE - M3
All KWH/month @ $.055 plus ECA. (No minimum)
SCHEDULE ECA
TAX
Two part Energy Cost Adjustment applicable to all rates
except Security Lights.
4% State Utilities Tax is applicable to all rates
except City Use and agencies of the Federal Government.
Ord. No. /97 , page 2.
Section Two. In addition to base electric rates shown in Section One, an
Energy Cost Adjustment (ECA) shall be billed before tax is applied each month.
Schedule ECA shall consist of two basic parts as follows:
ECA = A or (B + C), whichever is lower.
A:
A shall be calculated at 1000 KWH of usage per month according to
the following formula, but shall not be less than zero:
A = (APCo Rate'FD + APCo ECR) - Fairhope R1
100b
(B+C)
B shall be termed "Revenue Requirement Factor". The Revenue Require-
ment Factor is the net revenue difference between the Electric Depart-
ment's Total annual current, new, or proposed revenue requirement (T)
and the Total annual test period retail revenue (V) produced by base
retail rates shown in Section One, divided by Total test period re-
tail KWH sales (S) :
B = (T - V)
S
C shall be termed "Fuel Cost Adjustment". The Fuel Cost Adjustment
shall be calculated from the current month's wholesale power bill
from Alabama Power Company as follows:
C = F
P - L
where:
F = Total APCo Wholesale Fuel Cost Billed for Current Month.
P = Total KWH Purchases (APCo + SEPA) for Current Month.
L = Lag and Losses = 14.5% of P.
A may not be waived unless the City Council officially approves such
waiver for a specified period, not to exceed six months; such waiver
duly entered into the Council minutes along with a valid reason(s)
for the waiver.
In the event A exceeds (B+C), the ECA factor shall not exceed (B+C).
In the event A is waived, (B+C) shall not be waived. In the event
(B+C) results in a negative factor, such negative ECA factor shall
be applied to each customer's monthly bill. All ECA factors shall
be rounded off to the nearest one -thousandth of a mill.
Section Three. Definitions:
!APCo Base Purchases: Total Annual Test Period NM-1 charges by Alabama Power Co.
or the Demand and Energy components only. Fuel adjustment charges are ex-
cluded. in Schedule ECA, part B.
APCo Fuel Adjustment Charges: Total MUN-1 monthly fuel adjustment charges by
,Alabama Power Co. This total monthly fuel adjustment charge is equal to "F"
in Schedule ECA, part C.
SEPA Base Purchases: Total annual charges.by the Southeastern'Power Administra-
tion for both Demand and Energy.
Retail KWH Sales: Total annual Test Period KWH sales (S) recorded by the city
to residential customers, schools and churches, non-profit organizations (
other,than the city), commercial customers, industrial customers and estimated
security light consumption. Sales recorded by the city as sales to various
city departments and facilities shall be excluded from retail KWH sales.
10rd. No. /,�page 3.
Revenue Requirement: Total annual rate base required to cover all costs reason -
a -y- expected to be incurred during the next 12 months irrmtediately following
the test period or the effective date of new wholesale rate increases or de-
creases, plus an amount which provides a reasonably adequate rate of return to
cover electric system improvements, additions and extensions, in order to reduce
borrowing of funds for such projects.
Test Period: For purposes of part B (Revenue Requirement Factor) of Schedule
ECA, the test period shall consist of 12 calendar months of the latest fiscal
year or calendar year for which complete purchase, sales.and cost data is
readily available, with the exception as noted in the Revenue Requirement
definition.
Lag: The non -synchronous time relationship between time of wholesale billing
or purchases and the reconciliation of those purchases through retail and city
use billing.
Losses and Unaccounted'For: That electric energy and load which is lost due to
theft, inaccurate metering and billing, resistance in the electrical system and
equipment, and that electric energy which has been used by consumers but for
which an accounting or bill has not been rendered at the time of test period
reconciliation.
Section Four. This ordinance shall take effect as of the 30 March 1982 Utility
Billing Cycle after due adoption and publication required by law.
ADOPTED THIS 22nd DAY OF MARCH, 1982.
l
ity Cldrk
Min