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Home My WebLink AboutO-1315ORDINANCE NO. 1315 AN ORDINANCE AMENDING ORDINANCE NO 1096 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 Ordinances, City of Fairhope, Alabama, Section 21-21, is hereby revised as per the following monthly rates for all electric customers served by the City: RESIDENTIAL - Rl: Applicable to single residences, individually metered mobile homes, and individual family apartments where cost of service is paid by the occupant. Customer Charge: $8.50 per month (Minimum), plus Summer: June - October First All Over Winter: November - May First - All Over COMMERCIAL - Cl: 1000 KWH/month @ $0.0830, plus 1000 KWH/month @ $0.0855, plus ECA & Tax 750 KWH/month @ $0.0830, plus 750 KWH/month @ $0.0712, plus ECA & Tax Applicable to non-residential power service where the maximum 15-minute interval integrated demand does not exceed 49 KW. Customer Charge: $8.50 per month (Minimum), plus First 10,000 KWH/month @ $0.0930, plus All Over 10,000 KWH/month @ $0.0820, plus ECA & Tax INDUSTRIAL - I1: Applicable to non-residential electric service where the maximum 15-minute interval integrated demand is 50 KW or more. Demand: All Demand @ $5.00 per KW/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 @ $0.0720, plus All Over 20,000 KWH/month @ $0.0670, plus ECA & Tax. SCHOOLS - Ml Applicable to public and private primary and secondary schools, regardless of size of their electrical requirements. ALL KWH @ Residential rate - R1. Ordinance No. 1315 Page 2 ELEEMOSYNARY - M2 Applicable to churches and non-profit organizations who receive the majority of their support from charitable contributions. ALL KWH/month @ Residential rate - R1 CITY USE - M3 Applicable only to City of Fairhope accounts and departments. ALL KWH @ $0.0810 per KWH, plus ECA & Tax, if not Exempt. No Minimum SECURITY LIGHTS The following monthly security light rentals assume City ownership of treated pine pole, mounting brackets and hardward, open lighting fixture lamp, photoelectric control, and one span of # 6 aluminum overhead duplex cable. Customers shall be billed for additional installation costs for equipment and work which exceed the above standard installation. Customers shall be responsible for all charges due to vandalism or abuse. Mercury Vapor 175 W. 250 W. 400 W. High Pressure Sodium 100 W. 150 W. 200 W. 250 W. 400 W. Lumens Monthly Rental, plus Tax 8,600 $ 6.25 12,100 $ 8.45 22,500 $11.00 Lumens Monthly Rental, plus Tax. 9,500 $ 6.25 15,000 $ 7.50 22,000 $10.65 22,500 $11.00 50,000 $14.35 TEMPORARY OR SEASONAL SERVICE SURCHARGE When Commercial or Industrial service is provided for a period of less than one year continuously or is seasonal or temporary, a surcharge of twenty-five percent (25%) shall be added to each month's bill, before applying Tax, after the bill has been computed in accordance with the applicable rate schedule. No monthly minimum or other charge is to be made during the period that service is disconnected. For each non -recurring temporary service where it is necessary for a temporary service pole to be set and/or a temporary service drop to be installed from existing utility facilities, the City may assess additional charges to recover the cost of installing and removing such service. SCHEDULE ECA: In addition to base electric rates adopted above, a two-part Energy Cost Adjustment (ECA), applicable to all rates except security lights, shall be billed before tax is applied each moth. The ECA factor to be billed shall be calculated in accordance with Section Two and Three of this ordinance, which follows. Ordinance No. 1315 Page 3 TAX: The 4% Alabama Utilities Gross Receipts Tax is applicable to all rates, except exempt accounts of City, State and Federal governments. Should any other State of Federal tax be levied, it shall charged in addition SECTION TWO SCHEDULE ECA shall provide for annual and frequent fluctuation in wholesale fuel adjustment changes, purchased power costs, annual operation and maintenance costs, annual administration costs, net non -operating revenues, transfers to the General Fund in lieu of taxes, annual costs of Electric Fund debt retirement responsibility, allowance for electric system extensions, improvements and additions, and other expenses and subsidies to other funds which are assessed against the Electric Fund. In the event Schedule ECA 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 ($0.000000). Schedule ECA shall consist of two basic parts, as follows: ECA Factor = Part A + Part B Part A shall be termed "Revenue Requirement Factor". The Revenue Requirement Factor (RRF) is the net revenue difference in dollars between the Electric Funds's total annual current, new, or proposed revenue requirement (T) and the total annual test period's retail revenue (V) produced by base retail rates, shown in Section One, divided by total test period Retail KWH sales (S): Part A = RRF = T - V S Part B shall be termed "Fuel Cost Adjustment". The Fuel Cost Adjustment (FCA) shall be calculated from the total current period's wholesale fuel adjustment charges billed from supplier (s) and then billed at retail by the City, as follows: Where: Part B = FCA = F R F = Total estimated wholesale supplier fuel costs to be billed during the current levelized period in dollars. R = Total Retail KWH sales estimated to be billed during the current levelized wholesale fuel adjustment period. "R" shall exclude estimates of security lights KWH usage. SECTION THREE. DEFINITIONS (1) Supplier Base Purchase: Total Annual Test Period wholesale charges by Alabama Municipal Electric Authority (AMEA), Southeastern Power Administration (SEPA), and /or other supplier(s) for the Demand, Energy, and Wheeling components only. Part A. Ordinance No. 1315 Page 4 (2) Supplier Fuel Adjustment Charges: Current period fuel adjustment charges by all wholesale suppliers. This total current fuel adjustment charge is equal to "F" in Schedule ECA, Part B. Wholesale fuel adjustment true -up refunds from a pervious six month levelized period shall be used to reduce the FCA Factor for the current levelized period in part B, while supplier fuel adjustment true -up charges from a prior six month period shall increase the FCA Factor in Part B. (3) Retail KWH Sales: Total Annual Test Period KWH sales (S) recorded by the City to all residential customers, schools, churches, non-profit organization, commercial and industrial customers, estimated security light consumption, and City Water and Sewer accounts necessary to conduct and maintain operations. Sales recorded by the City as sales to various City departments and facilities, except the Water and Sewer Department above, shall be excluded from retail KWH sales (s). Part A. (4) Revenue Requirement: Total Annual Retail Rate Base required to recover all costs and Transfers to the General Fund reasonably expected to be incurred during the current fiscal year or the next 12 months immediately following the test period or the effective date of the new wholesale rate increases or decreases, plus an amount which provides a reasonably adequate rate of return to cover electric system improvements, additions and extensions. Wholesale rate refunds shall be used to decrease the revenue requirement for the fiscal year during which the refund is received, only. The difference between total retail ECA charges collected for the current fiscal year and cumulative supplier fuel adjustment charges during the current fiscal year shall be calculated periodically throughout the fiscal year and may be used to increase or decrease the revenue requirement, accordingly, for the remainder of the fiscal year. Part A. (5) Test Period: For purposes of Part A, Revenue Requirement Factor of Schedule ECA, the test period shall consist of 12 calendar months of the latest fiscal year or any other typical and current 12 month period for which complete purchase, sales and cost data is readily available. SECTION FOUR. GENERAL RULES AND REGULATIONS. Payment: Bills are payable within ten (10) days from due date and, if not paid within such period, may be increased as determined by the Mayor and Council. Service and Metering: Service to more than one premises shall not be combined, nor shall it be shared with or resold to others. Any customer receiving service at two different voltages or metering points will be considered as two separate customers for billing purposes. The type and location of metering is to be specified by the City. Rates in Section One contemplate City ownership of transformation facilities; however, rental or ownership of transformation by an industrial customer is subject to negotiation by and with the City. Ordinance No. 1315 Page 5 SECTION FIVE. Basic rate schedule in Section One shall be revised, in conjunction with a rate study, should the Schedule ECA, Part A factor exceed plus or minus ten mills ($0.010000) for more than six consecutive months. SECTION SIX. All ordinances in conflict herewith be and the same are hereby repealed. SECTION SEVEN. This ordinance shall take effect as of the October 1, 2006 Utility Billing Cycle after due adoption and publication required by law. ADOPTED THIS 25th DAY OF September , 2006. Attest: Geniece W. Johnson,