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Home My WebLink About11-26-1985 ~~~d~ /V ao ~ a~, ~Qs~ AGENDA CITY OF DENTON CITY COUNCIL November 26, 1985 Special Called Meeting of the City of Denton City Council on j Tuesday, ldove2r,~er 26, 1985, at 5:00 p.m. in the City Manager's Conference Roo:n in the Municipal Building at which the following item will be considereds 5:00 P.M. 1. Executive Session: C. Personnel Under Sec. 2(g), Art. 6252-17 V.A.T.S. Special Called Meeting of the City of Denton City Council on Tuesday, November 26, 1985, at 700 p.m. in the Council Chambers of the Municipal Building at which the following items will be consWereds 7200 P.M. 1. Consider adoption of an ordinance authorizing the issuance of City of Denton General Obligation Refunding Bonds and matters incident and related thereto. • 2. consider adoption of an ordinance adopting rate schedules for electrical services. (The Public Utilities Board recommends approval.) 3. Consider adoption of an ordinance providing for a penalty charge for the late payment of utility bills. (The Public Utilities Board recommends approval.) 4. Executive Sessions A. Legal Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel Under Sec. 2(g), Art. 6252-17 V.A.T.S. D. Board Appointments Under Sec. 2(g), Art. 6252-27 V.A.T.S. C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the 22nd day of November, 1985 at ' o'clock (a.m.) (p.m.) T C TARY-- 7717777 AGENDA CITY OF DENTON CITY COUNCIL November 26, 1985 Special Called Meeting of the City of Denton City Council on Tuesday, November 26, 1985, at 5:00 p.m. in the City Manager's Conference Room in the Municipal Building at which the following item will be considered: 5:00 P.M. 1. Executive Session: C. Personnel Under Sec. 2(g), Art. 6252-17 V.A.T.S. Special Called Meeting of the City of Denton City Council on Tuesday, November 26, 1985, at 7:00 p.m. in the Council Chambers of the Municipal Building at which the following items will be considered: 7:00 p.m. 1. Consider adoption of an ordinance authorizing the issuance ~ of City of Denton General Obligation Refunding Bonds and matters incident and related thereto. 2. Consider adoption of an ordinance adopting rate schedules for electrical services. (The Public Utilities Board recommends approval.) 3. Consider adoption of an ordinance providing for a penalty charge for the late payment of utility bills. (The Public Utilities Board recommends approval.) 4. Executive Sessions I A. Legal Matters Under sec. 2(e), Art. 6252-17 V.A.T.S. B. Real Estate Under Sec. 2(f), Art. 6252-17 V.A.T.S. C. Personnel Under Sec. 2(g), Art. 6252-17 V.A.T.S. D. Board Appointments Under Sec. 2(g), Art. 6252-27 V.A.T.S. C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the 22nd day of November, 1985 at _ o'clock (a.m.) (p.m.) CITY SECRETARY ~ . 'fi. . i v, r^i.e[- ~ •t 5,, 'r i e F. r a J tl a1 . r a r.. November 26, 1985 CITY COUNCIL AGENDA ITEM TO: MAYOR E MEMBERS OF THE CITY COUNCIL FROM: Rick Svehla, Acting City Manager SUb'7ECT: Consider Ordinance Revising Electric Utility Rates RECOM14ENDATION The Public Utilities Board, at its October 9, 19859 meeting, recommended the adoption of an ordinance in- cluding electric rate changes. Staff has prepared an alterrative rate design at the request of the City Council. The new proposal is presented for Council action. (Exhibit I) SUMMARY/BACKGROUND The current proposal provides for a revenue increase of 0,02% over current rates. The E;icrgy Cost Adjustment is projected to remain at 2.250 per KWH for the months of November thru April, an] at 2.750 per KWH for the months of May thru October. Generally, resident{al rates would increast an average of 3.66%, commercial/industrial rates will decrease an average of 1,92%, local government units' rates will rise an average of 1.44%, street and traffic lighting will decrease an average of 10,80%. Other customer classes will receive an average increase of 6.45%. (Exhibit 111, page 2-1) This reduction in rates reduces dollar revenues by approximately $170,000, Noting line 16, rage 2-1 of Exhibit III, remaining revenue $979,491, and line 3, depreciation expenee-$1,972,513, the Electric System would realize operating cash revenue of $29952,004 of which $1,000,010 must be used to pay principle on outstanding electric bonds and approximately $1,250,000 of this current revenue cash will be required to fund the $20000,000 Electric System's 1986 capital projects. The remaining $750,000 of capital projects will be funded by bond proceeds. The remaining cash, $75000009 will be utilized for working capital. The Staff expresses a concern regarding this limited $750,000 Increase in working capital to fund the additional accounts receivables, inventory, etc,$ on a budget that is expected to increase approximately $6.26 million, from $65,968,767 !,n 1985 to $72,231,829 in 1986. If this lower rate is considered, the Staff would strongly recommend Implementation of the St late paymant fee in order to help lower the accounts receivable. ire Prepared by: Resp lly submitted, Charles Cryant -9f d Budget/Rate Administrator Acting C ty ManagAr r~ . E. Nelson Director of Utilities EXHIBIT I-II-11I Cott of Service Study Summaries i I 't~~ Ntriot tow . USA 1 4 ~d~J! QdQ nf~~ a.rc~ t,Iie. ~Popdf~~ pitaY,d~ d~'e %9y IPCI/c~tr,Ci Cclfs^ xetyG 1+ t~eaewel m (1dQ/111L>'J/~ GI/~r~c~s'rc! ~o C-~ie. ~~C'o~c~tGQ , dae eee, Ce /n ~sr.~,HC~~2Gia/ /•ilt*rriCiw~ ,Calar Qu9~'1 a~ P~.~ttd, ~v~ ~l ice! t!•.tr~ c 't`u Ift~'r c1e. i c s~r `VY Ss"Coe- I ~ y J Aid' le4 *01-twl--- • G n. rM1 <'Y', .l i. Z ids 77, -77 7, Fv i 1 ti x 20-Mar-BS Plot 2.1 Probst! 1416 A11i+ DENION ELECTRIC DETARTMEUT COST OF SERVICE ITUS$ SURRAAT OF RESULTS 1 + + 12 MONTHS ENDING BEPTEMIdR 301 1986 + + + RATE BASE ■ 9134185 BALANCE PRODUCTION ALLOCATION AVERAGE I EXCESS WE OF RETURN) ANNUAL 8UNNAAM ++11+a 1t+t~111111+~~~+111;1~+11+1111+ir+l+i+1+f111111+1+1111+1+1111+ifrtirr+l++~+ TOTAL TOTAL TOTAL TOTAL TOTAL ELECTRIC RESIDENTIAL COMMERCIAL GOVERNMENT OTHER DEPARTMENT SERVICE SERVICE SERVICE 6E1l11ICE Out Alloc In SUMMART OF COST OF S£RVICE-PROPOSED RATES 1 PRDPDSED BALES REVENUES SUMAA 15512719124 111,166,120 $33,239,000 13,427,000 1815,000 2 OTHER PROPOSED REVENUES SUM18 ROTHS 15,055,450 41734,535 91132,300 913,333 205,240 PROPOSED SALES REVENUES LESS) 3 SALES REVENUES SUMA 155,269000 $S1,1r0000 $33,409,0:0 13,445,000 1115,000 EQUALS 4 REVENUE INCREASE REQU (1) SUMII 18,1:0 1616,720 (16Y1,000) 1119,000) $50,000 S REVENUE INCREASE REQU lit 01112 01021 31661 -1.921 -0,521 6,451 TOTAL PROPOSED REVENUE LESS OPE ONG EXPENSES 6 PRODUCTION DIN SUMO 110 $SB,112,OS0 $11,119,136 1361406,405 13,543,527 $7420412 7 TRANS It 1161 OkM "1 130 10932,016 601,110 926,441 167,033 36,711 B OTHER DIN SUNS 21170,177 ;,3661129 11129,941 It4,095 94,006 9 DEPRECIATION EXPENSE SUMP Di 1,9129513 196,062 9320315 241,366 36,110 10 TAW OCHER THAN INCOME SUMGS OT 0 0 0 0 0 Ii TC1AL EXPENSES SUNS 165,546,786 $21,143,691 1139,395,169 14,0959021 $909,199 12 LESSi INTEREST EXPENSE SUML TNT $2,1il,614 $866,251 $1,0241160 $186,391 140,205 13 EQUALS) RETURN SUNYY $2,668,770 1491,300 $1,911,311 1125,923 180,176 14 RATE WE SUMI 127,367,506 111,195,313 $13,243,145 12,4081514 11519,514 15 RATE OF RETURN ti4 SUMPUI 90751 4.391 141891 5,231 15.431 OTHER NON-OPERAITNG EXPERSEB 16 RETURN ON INVESTMENT SUNT BF1 11,689,219 1691,038 1111,411 11410190 132,013 11 REMAINING REVENUE p1RVV 1919,491 (1199,735) $1,153,893 (122,1611 140,103 11 SALES REVENUES INILL01CNH1 SUMP12 12.60 44.33 78.31 13.94 100141 ETUiIIT 111 > .r 1' 4 ' . t r xJ 77 20-Nar-OS Page 2. Proposed 1186 Rates UNION ELECTRIC DEPARTMENT C06I OF SERVICE STUDY SUMRARY OF RESULTS 1 4 1 12 MONTHS (MOWS 1EPTENDER 30, 1988 s 4 1 RATE SASE + 1130165 BALANCE PRODUCTIOK AVOCATION AVERAGE i EXCESS IRATE OF RETORNI ANNUAL 10AMAA'r IiH111t11H141111i1lIIIIIII II4e11114141tIHI11t11NIIIHIIl11141l1441111HHIIIlel1 RESIDENTIAL SERVICE C 0 N A A C I A L SERVICE R1 R2 LP 0P S8 Out Allot In SUMRARY OF CO;T OF SERVICE-PROPOSED RATES I PROPOSES SALES REVENUES 1" 11,651,400 116,1141120 14,368,000 $4,202,00 114,461,000 2 OTi!EA PROPOSED REVENUES SUM66 ROTHI 474,654 41254,431 20742,413 11068,371 5,25!,430 PROPOSED SALES REVENVI LEISI 3 BALES REVENUES $UMA $1,604,000 !16,636,000 !4,962,00 (4,212,00 14,675,040 . EQUALS 4 REVENUE INCREASE R£QU W SUMI1 $41,900 1516,820 11374,001 (170,00) ism,w 5 REVENUE INCREASE REW (1) SUM12 2.941 3.731 -3.751 -1.141 -1.931 TOTAL PROPOSED REVENUE LESS OPERATIN4 EXPENSES b PRODUCTION Din SINK 110 11,744,828 118,434,910 111,157,414 14141b,321 20,772160( 7 TRANS I DIST ObN BOND X30 411654 702,916 219,164 134,549 5711924 1 6 OTHER 019 SUMS 213,235 11152,191 214,681 119,222 796,03? 0 ,121 9 DEPRECIATIRN EXPENSE SURF 01 10,147 745,41 05 119,Ni0 114,711 617 10 TAIED OTHER THAN INCOME SUMS) OT 0 it TOTAL EXPENSES 5041 12,147,062 !11,496,635 111,711,171 14,844,103 122,161,485 12 LEBS1 INTEREST EXPENSE. SUML INT $91,354 $761,904 $213,254 1127,674 613,12; ~ 13 EQUALSI RETi16N SUNYY (1111,1321 1610,i32 0385,337 $317,896 $1,261,13E 14 RATE WC SUMS 11,2710106 119,424,205 12,758,105 $1,6501041 8,137135c 15 RATE OF RETURN 11) SUARR -9.351 81151 13.981 14.271 14.3:1 OTHER NON-OP1;AA1114 EIPENSES lb RETURN (A INVESTMENT SUNT DFT 1118460 1612,571 1170,122 1101,652 15451504 1? RERAININS REVENUE OUNVV 11191,2921 1$21446) f215,215 1216,044 1722,434 11 SALES REVENUES 01V1111M) IUMPA2 88.43 90.53 69.99 12,04 62.4: EINI81i I11 y . HJ I.ll f4 ~ •1 a 1 20•NOV•IS Poll 2-3 Proposed 1966 Rtta DENTON ELECTRIC DEPARTMENT COST OF SERVICE STUDY SUMMARY OF PEWS f ! 1 12 MONTHS ENDING 1EPIEMIER 30, 1916 1 1 1 RATE BASE ■ 9130185 BALANCE PRODUCTION ALLOCATION ■ AVERA6E fI EICESS (RAT1 OF RETO41 ANNUAL 8 0 K N A A Y H41i1l111#fllll111141111141#Hf!lff1111l141111i1if111IIf11ii1H1lf111f1#If41111Hf1 DOVERNKNEIAL SERVICE O T K E R I E A Y 1 C E II 12 13 A~ DD TI Out AIIoc In SUMMARY OF COST OF 6ERVICE•FROPOSED RATIO I PROPOSED SALES REVENUES SUKAA $3,038,000 1328,000 161,000 14719000 $154,11A 12001000 2 OTHER PROPOSEI REVENUES SUM1/ ROIN9 109,496 154,409 19,430 112,511 37,461 541902 PROPOSED SALES REVENUES 1,1931 3 SALES REVENUE8 SUMP 12,995,000 1388,000 $i2,0oo 1453,000 1, WO 11900)0 EQUALS 1 4 REVENUE INCRE4SE REOU III SUM11 143,000 (160,0001 (11,000) 118,000 1210000 111 1 S REVENUE INCREASE PERU (11 SUO12 1.441 •15.461 -1.611 3.971 15,791 10.121 TOTAL PROPOSES REVENUE LESS OPERAIIND EXPENSES 6 FROW11011 DIN SUMO Ito 131234,332 1249,652 159,543 1433,006 :151,613 100,053 7 IRANI i DIST DIN SUNS 130 98,864 $2,151 6,011 17,741 119107 71316 1 OTHER 061; SURE 1051564 67,446 LOBS 27,613 254415 409978 9 DEPRECIATION EIPENSE am DI w913) 94,206 21427 24,443 4,997 71270 10 TAXES OTHER Will INCOME SUMSB OT 0 0 0 0 0 0 1: TOTAL EIPENSEI Sumij $3,5490493 1413,455 175,07; 15041810 $149,472 12351617 12 LEW INTEREST EIPEW SUML INT $120,261 163,885 12,245 126,101 $5,172 11232 11 EQUALli RETURN SUN" 8171,142 (1%110 13.112 151,900 1371223 (11,9411 11 RATE SASE 01 11,554,224 1925,633 824,011 1346,336 $66,144 106,394 15 RATE OF RETURN 11) SUMRA 11.411 •6.651 10.121 14.991 55.691 -5.411 OTHER NON-CPERA11N1 EIPENSE( 16 RETURN ON INVEITME111 luml OFT 95,936 50,463 11791 21,380 41126 61567 17 REMAININI REVENUE SUKVV $11,106 11105,194) 11,321 830,520 6331097 (111,5141 11 BALES REVENUES INILL11KOH) BUKPR2 14.81 91.91 17.66 104.07 112.66 84.19 EINIIII III T~- r + 5 t ' I'i 1246E NO. AN ORDINANCE ADOPTING AMENDED RATE SCHEDULF,S FOR ELECTRICAL SERVICES; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE OF DECEMBER 10 1985. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Schedule of Rates for electrical services provided by the City of Denton, Texas to its customers, as provided for in Chapter 25 of the Code of Ordinances, are hereby established As follows: SCHEDULE OF RATES PAGE R1 Residential Service Rate 2 R2 Residential Service Rite 3 LP Large Primary Commercial & Industrial Lighting and Power Service Rates 4 F GP General Service Primary 16 6 GS General Service (Commercial) 8 G1 Local Government Lighting & Power Service Rate (City, County, Independent School District 10 G2 Street Lighting 12 G3 Street Lighting & Traffic Signals 13 DD Dusk-to-Dawn Lighting (Security light) 14 T1 Temporary Service Schedule 16 TG Time of Use Rates-General Service 16 TP Time of Use Rates-Primary Service 20 P1 Interruptible Service Rate 22 RW Religious Worship 24 AF Athletic Field 25 ECA Energy Cost Adjustment 27 ij: SCHEDULE R-1 RESIDENTIAL SERVICE RATE APPLICATION Applicable to all electric service used for residential purposes in a single family dwelling or an individually metered a artment; supplied at one point of delivery and measured through one meter where usage is not in excess of 700 KWH per 30-day month during the billing months MAY through OCTOBER. If usage in any such month exceeds 700 KWH, billing will be rendered that month under Rate Schedule R-2 and thereafter for a period extending through the 12 billing months of the next year ending with the October billing. Annually, in Novembar, the customer may again qualify for the R-1 rate provided that consumption has not exceeded 700 KWH per 30-day month during the previous six summer months. Where individual dwelling units are being served through the same meter as of the effective date of this rate schedule and ® the KWH in the billing months of MAY through OCTOBER exceed 700 KWH times the number of dwelling units, the billing for that month and thereafter will be rendered under Rate Schedule R-2. NET MONTHLY RATE 1) Customer Facility Charge $5.50/month 2) Energy Charge 44'654/KWH 3) Energy Cost Adjustment Schedule ECA MINIMUM BILLING $5.50/month TYPE OF SERVICE The City will supply single-phase service at any standard voltages available from the City s distribution system through one standard transformation. PAGE 2 % SCHEDULE K-2 RESIDENTIAL SERVICE RATE APPLICATION Applicable to any customer for all electric service used for residential purposes in an individual ,*rivate dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. Also applicable to any customer heating with electric energy, resistance or heat pump. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE WINTER BUMMER Billing months Billing months of November of May thrcugh through April C:tober. 1) Customer Facility Charge Single Phase 6.50/month 6.50/month Three Phase 111.00/month 111.00/month 2) Energy Charge First 19000 KWH 51'15/KWl3 All additional KWH 4.650/KWH First 3,000 KWH 5,654/KWH All additional KWH 6;150/KWH 3) Energy Cost Adjustment Schedule ECA Schedule ECA MINIMUM BILLING Single Phase 6.50/month 6.50/month f Thrae Phase 111.00/month 111600/month TYPE OF SERVICE The City will supply s!ngle-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required prior to its being furniAhed. I PAGE 3 p t l. y I SCHEDULE LP (Lange Primary) i COMMERCIAL 6 INDUSTRIAL LIGHTING TES APPLICATION Applicable to any customer for all electric service supplied at one point of delivery and measured through one meter with customer providing all facilities necessary to receive primary volte.ge service. Not applicable to resale service in any event, nor to temporary, standby or Supplementary service except in conjunction with applicable rider. NET MONTHLY RATE 1) Customer Facility Charge $49.50/month 2) Demand Charge $6.00/KW of demand 3) Energy Charge 3.0WKWH for all KWH 4) Energy Cost Adjuctment Current ECA Factor MINIMUM BILLING An amount equal to the demand charge as calculated below but not less than seventy percent (70x) of the maximum monthly demand charge for any month during the preceding months of May through October plus $49.50 per 30 day billing. TYPE OF SERVICE Primary voltage service (transformation equipment owned by customer) is available to any customer with a 12-month minimum monthly demand of 750 KW or greater. Primacy service rendered at one point on the customer's premises at a nominal voltage of 13,200 volts or 69,000 volts three-phase at the option of the City. The primary voltage service customer shall own, operate, and maintain all facilities necessary to receive three phase primary voltage service and all transformation facilities required for conversion tj utilization voltage$ The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage, at the City's option. Where the City elects to meter at secondary voltage, two percent shall be added to the PAGE 4 •...i^ ~-'rTr". .,,~~'~!T~_': .~T.'`^" u =:r.'4"_'4~' r~'~"-;T. -z. ~•F-'-;.S•Rq•- ..,_.-_,.,-r_„n~ demand charge, the energy charge and the energy cost adjustment charge to account for transformer losses. DETERMINATION OF DEMAND The demand shall be the KW supplied during the 15-minute period of maximum use during the current month as determined by City's demand meter, but not less than 70% of the maximum monthly KW similarly determined during the previous billing months of MAY through OCTOBER in the 12 months ending with the current month, nor LESS than 750 KW. POWER FACTOR The City reserves the right to make tests to determine the power factor of the customer's installation setved during periods of maximum demand or by measurement of the average power factor for the monthly billing period. If the power factor is below ninety percent, the demand for billing purposes will be determined b multiplying the uncorrected KW billing demand by 90% and dividing by the determined power factor. PAGE 5 SCHEDULE GP GENERAL SERVICE PRIMARY APPLICATION Applicable to commercial and industrial users for all electrl,c service supplied at one point of delivery and measured through one primary voltage meter. Transformation equipment is owned by the THEY-. Not applicable to resale service in any event, not to temporary, standby or aupplementary service, except in conjunction with applicable rider. NET MONTHLY RATE l) Facility Charge $49.50/month 2) Demand Charge $ 6.20/KW 3) Energy Charge 3,254/KWH 4) Energy Cost Adjustment Current ECA Factor MINIMUM BILLING An amount equal to the demand charge as calculated below but not less than seventy percent (70x) of the maximum monthly demand charge for any month during the preceding months of May through October, inclusive, plus $49.50 per 30 day billing. TYPE OF SERVICE The City will supply three-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required prior to its being furnished. DETERMINATION OF DEMAND The demand shall be the KW supplied during the 15-minute period of maximum use during the current month as determined by City's demand meter, but not less than 70'% of the maximum monthly KW similarly determined during the previous billing months of MAY through OCTOBER in the 12 months ending with the current month, nor LESS than 750 KW. PAGE 6 1 0 POWER FACTOR The City reserves tho right to make tests to determine the power factor of the customer's installation served during periods of maximum demand or by measurement of the average power factor for the monthly billing period. If the power factor is below ninety percent, the demand for billing purposes will be determined by multiplying the uncorrected KW billing demand by 90% and dividing by the determined power factor. PAGE 7 r (SCHEDULE GS) GENERAL SERVICE (COMMERCIAL) APPLICATION Applicable to any commercial and industrial users for all electric service supplied at one point of delivery and measured through one meter. Not applicable to resale service in any event, nor to temporary, standby or supplementary service except in conjunction with applicable ridere NET MONTHLY RATE 1) Customer Facility Charge Single Phase 10.00/month Three Phase 115-00/month 2) Demand Charge $ 6.40/KW of demand 3) Energy Charge 3.55¢/KWH for ali KWH 4) Energy Cost Adjustment Current ECA Factor MINIMUM BILLING An amount equal to the demand charge as calculated below but not less than seventy percent (70X) of the maximum monthly demand %harge for any month during the preceding months of May through October plus $10/ month for single phase or less than $15/month for three phase, per 30 day billing. TYPE OF SERVICE Secondary service available to commercial and industrial customers. The City wii; supply single-phase service (or three-phase service if available at the point of delivery) at sixty (601) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required prior to its being furnished. PAGE 8 :3A .r-m'A ~r - 1 IL r n ;r DETERMINATION OF DEMAND The demand shall be the KW supplied during the 15-minute period of maximum use during the current month as determined by City's demand meter, but not less than 70% of the maximum monthly KW similarly determined during the previous billing months of MAY through OCTOBER in thq 12 months ending with the current month. In no case, shall demand be less than 1 KW. In cases where the connected load is constant, the City may, at it's option estimate the KW demand. For neon signs, one volt ampere shad be considered the equivalent of 3/4 watt. POWER FACTOR The City reserves the right to make tests to determine the power factor of the customer's installation served during periods of maximum demand or by measurement of the average power factor for the monthly billing period. If the power factor is below ninety percent, the demand for billin purposes will be determined by mult±pl.ying the uncorrected KWd billing demand by 90% and dividing by the determined power factor. PACE 9 T ti p' 'F' :)r. t d C,'~. e, Ry k 1 '1- SCHEDULE G1 LOCAL GOVERNMENT LIGHTISG & POWER SERVICE RATE ` 7 ty, ounty`rn-Je nkeent coo str ct APPLICATION Applicable t+ any local City, County or School Districts for all electric service supplied at one point of delivery and measured through one peter. Not applicable to resale service in u"v event, not to temporary, standby or supplumentary service except in conjunction with 4nolicable rider. NET MONTHLY RATE 1) Customer Charge Single Phase 10.00/month Three Phase 15.00/monl:h 2) Demand Charge $ 4.40/KW of demand 3) Energy Charge 3.50J/KWH fur all KWH 4) Energy Cost Adjustment Current ECA MINIMUM BILLING An amount equal to the demand charge as calculated below but not less than fifty percent (50x) of the maximum monthly demand charge for any month during the preceding months of May througI~. October plus $10.00/month for single pha~ or less than $15.00/month for three phase, per 30 day billtig. TYPE OF S"RV1CE The City ~~ill apply single-phase service (~:c three-phase service if available at the point of delivery) at sixty (:0) cycles and ac any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired ny the customer is not already available at the point of service, special contract arrangements between the city and the customer may be required prior to its being furnished. PAGE 10 r ne.f . ~.A" 4( r` 9 lYM1 w f ~p..y .Y. DETERMINATION OF DEMAND The demand shall be the KW riuppiied during the 15-minute period of maximum use during the current month as determined by City's demand meter. POWER FACTOR i The City reserves the right to make tests to determine the power factor of the customer's installation served during periods of maximum demand or by measurement of the average power factor for the monthly billing period. If, the power factor is below ninety percent, the demand for billing purposes will be determined by multiplying the uncorrected KW billing demand by 90% and dividing by the determined power factor. PAGE 11 U` 1 .1.H r Jr e r` f ray k 1 YI i.,\ ) 4r' I A kr i A `^l~ A M 1 SCHEDULE G2 STREET LIGHTING APPLICATION I Applicable to all street lighting provided wit in the city of Denton and provided to the City of Denton, another City or the Texas Department of Highways and Public Transportation. NET MONTHLY RATE 1) Facility Charge 2) Energy Cost AdJustment Current ECA x monthly bulb wattage factor Bulb Wattage Factor 100W Sodium Vapor 4.70 48 KWH/month 25OW Sodium Vapor 6.70 105 KWH/month 40OW Sodium Vapor 8.60 159 KWH/month 175W Mercury Vapor 5.45 70 KWH/month 25OW Mercury Vapor 6.45 98 KWH/month 40OW Mercury Vapor 8.35 153 KWH/month 1000W Mercury Vapor 115.30 380 KWH/month TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixtv (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required prior to its being furnished. PAGE 12 ~ ,i, rv ~ ,t t, l ~ n u k ^ .P+1 5v .v . •}R - a s,. . f \C i:. , y 4'r j t. k; SCHEDULE G3 STREET LIGHTING & TRAFFIC SIGNALS ANJUCAT ION Applir;able to State and Local Government agencies that install and maintain their own street lights and traffic signals. NET MONTHLY RATE All KWH 4.900/KWd TYPE OF SERVICE At the City's available seconuary voltage and phase. PAGE 13 SCHEDULE D-D DUSK-TO-DAWN LIGHTING zcur ty g t ng II APPLICATION i! Applicable to any customer within the area served by the city's electric distribution system for outdoor area lighting When such lighting facilities are operated as an extension of thu City's distribution system. NETMONTHLY RATE 1) Facility Charge 2) Energy Cost Adjustment Current ECA x monthly bulb wattage factor Bulb Wattaite Factor 10OW Sodium Vapor 6,20 48 KWH/month 25OW Sodium Vapor 8,20 105 KWH/month 40OW Sodium Vapor 10.10 159 KITH/month 175W Mercury Vapor 5.95 70 KWH/month 25OW Mercury Vapor* 7.95 98 KWH/month 40OW Mercury Vup-3r 11.0,85 153 KWIl/month *No new or additional 250 watt mercury vapor lamps will be installed after the effective date of this schedule. TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled, mercury or jodium vappor lighting fixtures conforming to the City'o standards and subject to its published rules and regulations, Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (1) polar for each installed light, at a distance not to exceed eighty (80') feet from said existing lines, at no charge to the customer. Each additional pole span shall not exceed a span spacing of one hundred (100 ) feet. Additional poles required to install a light in a customer's specifically desired location, and not having a light installed on same, shall bear the cost. P'hGE 14 ' 1. nay n' TERM OF CONTRACT A two (2) year contract shall be agreed to and signed by each customer desiring Dusk-to-Dawn Lighting Service authorizing fixad monthly charges, which may be reviewed annually, and to be a plied to the monthly municipal. utilities bill. In the event that a customer desired the removal of the unit or discontinuance of the service prior to completion of two years, the remainder of the contract period shall become due, and payable. After the end of the initial two (2) year contract, service shall continue on a month-to-month basis and may be cancelled by either party upon thirty (30) days notice. PAGE 15 SCHEDULE Tl TEMPORARY SERVICE SCHEDULE APPLICATION Applicable when a customer requests electric service on a short term or temporary basis. NET MONTHLY RATE 1) Facility Charge Single Phase 10.00/month Three Phase 115.00/month 2) Energy Charge 6,70/KWH 3) Energy Cost Adjustment Current ECA MINIMUM BILLING $10.00/month TYPE OF SERVICE At the City's available 120/240 volt single phase secondary supply. ADDITIONAL TEMPORARY SERVICE CHARGES Labor (Regular Time) $40.40 minimum up to 1 hour. $40.40 for each additional hour (to be measured to the nearest one-quarter hour). Labor (Overtime) $60.20 minimusc up to 1 hour. $60.20 for each additional hour (to be measured to the nearest one-quarter hour). Premium time to be added where applicable. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the equipment. PAGE 16 Material Material that cannot be salvaged to be billed at Stores cost plus 25% and applicable sales tax. At the time a temporary service is removed or converted, any loss in the material installed due to negligence or willful action by the customer will be billed separately to customer at Stores cost plus 25% and sales tax. PAGE 17 IT! SCHEDULE TG TIME OF USE RATES GENERAL SERVICE APPLICATION Applicable to approved electric service required for secondary distribution service at voltage levels not to exceed 480 volts. NET MONTHLY RATE 1) Facility Charge Single Phase 20.00/month Three Phase 30 00/month 2) E{ rgy Charge: Billing months of June through September: 12:00 Noon through 9:00 p.m. 9.0¢/KWH (Peak) (Week days and excluding all City of Denton holidays.) All other hours (Off Peak) 3.UO/KWH Billing months of October through May: All KWH 3.5E/KWH 3) Demand Chei6e: Billing months of June through September: 12:00 Noon through 9:00 p.m. (Peak) $9.75/KW/M0. :11 othor hours (Off Peak) $3.25/KW/M0. Billing months of October through May: All +KWH Demand $6.40/KW/M0. 4) Energy Cost Adjustment: Current ECA MINUM' xILLING An amo-nt equal to the demand charge as calculated below but not les- ~.iian seventy percent (70X) of the maximum monthly peak PAGE 18 and off peak KW similarly determined during the previous billing months of MAY through OCTOBER in the 12 months ending with the current month. TYPE OF SERVICE Secondary service available to commercial and industrial customers. The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Where service of the type desired by the customer is not already available at the point of service, special contract arrangements between the City and the customer may be required prior to its being furnished. DETERMINATION OF DEMAND The KW load metered during the 15-minute period of maximum use during the current month's peak billing periods from 12:00 Noon through 9:00 p.m., but not less than 70% of the maximum monthly KW similarly determined during the previous billing months of MAY through OCTOBER in the 12 months ending with the current month. POWER FACTOR The City reserves the right to make tests to determine the power factor of the user's installation served hereunder during periods of maximum demand for the monthly billing period. Should the power factor so determined by below ninety (90X) percent, the demand for billing purposes will be determined b multiplying the unr;orrected KW billing demand by ninety (90%f percent and dividing by the determined power factor. PACE 19 SCHEDULE TP TIME OF USE RATES APPLICATION Applicable to approved electric service required for primary voltage distribution service at voltage levels not to exceed 69,000 volts and billing demand equal to or greater than 750 KW. NET MONTHLY RATE 1) Customer Facilities Charge $60.00/month 2) Energy Charge: Billing months of June through September: 12:00 Noon through 9:00 p.y. 8.4i/KWH (Week days and excluding 611 City of Denton holidays.) All other hours 2.80/KWH Billing months of October through April: All KWH 3.0¢/KWH 3) Demand Charge: Billing months of June through September: All KW of billing demand. (Peak) $9.00/KW/M0. All KW of billing demand. (Off Peak) $3.00/KW/M0. Billing months of October through May: All KW of billing demand. $6.00/KW/M0. 4) Energy Cost Adjustment: Current ECA MINIMUM BILLING An amount equal to the demand charge as calculated below but not less than seventy percent (70%) of the maximum monthly peck and off peak KW similarly determined during the previous billing months of May through October in the 12 months ending with the current month, nor LESS than 750 KW. PAGE 20 DETERMINATION OF DEMAND The KW load metered during the 15-minute periot' of maximum use during the current month's peak and off peak billing periods from 12.00 Noon through 9.00 p.m., but not lose than 70% of the maximum monthly KW similarly determined during the previous billing months of June through September in the 12 months ending with the current month, nor LESS than 750 KW. TYPE OF SERVICE At the City's available primary voltage and phase. POWER FACTOR j The City reserves the right to make teats co determine the power factor of the user's installation served hereunder during periods of maximum demand for the monthly billing period. Should tha power factor so determined be below ninety (90%) percent, the demand for billing purposes will be determined by multiplying the uncorrected KW billing demand by ninety (90% percent and dividing by the determined power factor. PAGE 21 i SCHEDULE PI INTERRUPTIBLE SERVICE RATE APPLICATION Applicable to all customers taking primary service at a firm power load exceeding 5,000 KVA during the months of June, July, August or September. NET MONTHLY CHARGE 1) Facility Charge $49.50/month 2) Energy Charge 3.00/KWH 3) Demand Charge $ 5.80/KWH 4) Energy Cost Adjustment Current ECA When the City requ1res a customer to interrupt load and the customer elects not to interrupt his load, then the following rates shall apply for all KW and KWH the City requested to be interrupted: Energy Charge: Rate schedule LP energy charge shall apply to all usage for eleven months preceding the billing month in which customer elects not to interrupt load upon request. remand Charge: Rate schedule LP demand charge shall apply to all demand billed for eleven months preceding the billing month in which the customer elects not to interrupt service load upon request by the utility and shall remain in effect for at' least twelve months following billinj month in which customer fails to reduce demand upon request by they City. MINIMUM BILLING An amount equal to the demand charge as calculated below but not less than seventy percent (70X) of the maximum monthly KW similarly determined during the previous billing months of MAY through OCTOBER in the 12 months ending with the current month, nor LESS than 750 KW. PAGE 22 t TYPE OF SERVICE Primary voltage service (transformation equipment owned by customer) is available to any customer with a 12-month minimum monthly demand of 750 KW or greater. Primary service rendered at one point on the customer's premises at a nominal voltage of '.3,7'10 volts or 69,000 volts three-phase at the option of the city. The primary voltage service custcmer shall own, operate, and maintain all facilities necessary to receive three phase primary voltage service and all transformation facilities required for conversion to utilization voltage. The City shall own, operate and maintain all metering i'acilities, either at primary or secondary voltage, at the Utility's option, Where the City elects to meter at secondary voltage, two percent shall be added to the demand charge, the energy charge and the energy cost adjustment charge to account for transformer losses DETERMINATION OF DEMAND The demand shall be the KW supplied during the 15-minute period of maximum use during the current month as determined by City's demand meter, but not less than 70% of the maximum monthly KW similarly determined during the previous billing months of MAY through OCTOBER in the 12 montha ending with the current month, nor LESS than 750 KW. CONDITIONS OF INTERRUPTION The City shall notify the customer by telephone at least thirty (30) minutes prior to the time at which the load is required to be curtailed. The request shall be for all or part of the customer's load exceeding 5,000 KVA. The maximum period of interruption shalt be for six hours. The interruption shall be at the request of the City during the period& when a potential forced outage could deny power to other customers or when available spinning reserves are threatened. The customer shall respond by stating he will or will riot comply with the City's request within fifteen (15) minutes after notification. POWER FACTOR REQUIREMENTS AND ADJUSTMENTS The City reserves the right to make tests to dntermine the power factor.' of the user's installatica served hereunder d1iring periods of maximum demand for the monthly billing periods. Should the power: factor so determined be below ninety (901) percent, the demand for billing purposes will be determined by multiplying the uncorrected KW billing demand by ninety (90X) percent and dividing by the determined power factor. PACE 23 777 7,'7777777 7- SCHEDULE RW RELIGIOUS WORSHIP APPLICATION Applicable to any user that qualifies as a religious organization pursuant to Section 11,20 of the Property Tax Code, Texas Revised Civil Statutes. Not available for resale. NET MONTHLY BILLING 1) Facility Charge Single Phase 10.00/month rhree Phase 115.00/month 2) Energy Charge 3.504/KWH 3) Demand Charge $ 4.25/KW 4) Energy Cost Adjustment Current ECA IIINIMUH BILLING An amou.it equa' to t d and charge as calculated below but not less than fift-, puccenL ;50X) of the maximum monthly demand charge for nny m, it; during the preceding months of May through October plus S'^ aonth for sic:,le phase or less than $15/month for three phase, per 30 day b;'ling. '1YPE OF SERVICE The City ' supply single-phase service (or three-phase service if available at the point of deliveij) at sixty (60) cycles and at any standard volt-ages ivaila')le from tht City's distribution system through one standard tr,,nsfurmation. Where service (if the type desired by :he customer is not already available at the point of service, special c ntra,L arrangements between the City and thu customer cay be rt ;ul: ed prior to its being furnished. Di.7r;RMANATION OF DEMAND The demdnd shall be the KW supplied curing the 15-minute period of maximum use during the current month as determined Ly City's demand meter. i PAGE 24 71 r SCHZDUU AF ATHLETIC FIELD APPLICATION Applicable to all electric service metered at one point for use to liSht specified areas for athletic events where such electrical use will not occur betwhen the hours of 10:00 A.M. and 6:00 P.M. NET MONTHLY RATE 1) Customer Facilities Charge Single Phase 20.00/month Three Phase 130-00/month 2) Energy Charge Billing months of June through September: All Other Hours (Off Peak) 4.10/KWH 10;00 a.m. to 7:00 p.m. (Peak) 8.20/KWH (week days and excluding all City of Denton holidays.) Billing months of October through May: All Hours 4.10/KWH 3) Demand Charge: Billing months of June through September: All Other Hours (Off Peak) 1.00/KW/M0. 10:00 a.m. to 7:00 p.m. (Peak) 4.90/KW/M0. Billing months of October through May: All Hours $I.UO/KW/M0. 4) Energy Cost Adjustment: Current ECA MINIMUM BILLING Facility Chnrgc PAGE 15 I TYPE OF SERVICE At the City's available secondary volts g8 and available phase. For use only bet+:een the hours of 6:00 P.M. and 10:00 A.M. from MAy through October. DETEPAINATION OF DEMAND The demand shall be the KW supplied during the 15-minute period of maximum use during the current month as determined by City's demand meter for both peak and off peak demand. POWER FACTOR The City reserves the right to make tests to determine the power factor of thA customer's installation served during periods of maximum demand or by measurement of the average power factor for the monthly billing period. If the power factor is below ninety percent, the demand for billing purposes will be determined by multiplying the uncorrected KW billing demand by 90% and dividing by the determined power factor. I I PE.Gr 26 11;' 1 u vti~' 1 f'~ a Rv A. a « yx,. F 77 77 SCHEDULE ECA ENERGY COST ADJUSTMENT ENERGY COST ADJUSTHENT All monthly KWH charges shall be increased or decreased by an amount equal to X cents per KWH, to be known as the energy cost adjustment (ECA). ThA ECA shall be computed in the mont'ns of April and October to be applied to the following periods of May through October and November through April respectively. The City shall in no case change the energy cost adjustment more than twice in either of the six (6) month periods. The ECA shall be calculated ?,y the following formula: ECA (Minter) a Pro ected energy cost for winter months to ecte KWHSales or w near mont s ECA (Summer) m Pro ected ener2 cost for summer months Projected KWH sales for summer moat s The abcve formula results in Winter 1985/86 and Summer 1986 as follows: ECA (Winter) = 2.25 ECA (Summer) w 2.15 In the event that actual cumulative costs of fuel, variable costs of Texas Municipal Power Agency (TMPA) energy and purchased energy (excluding TMPA's fixed charges) is greater than or less than the cumulative ECA revenues by $1,000,000 during the fiscal year, the City may recompute the Energy Cost Adjustment and re-establish an ECA that collects or returns such difference over the remaining months of the fiscal year. Such change in ECA shall be applied evenly to all remaining months' ECA. PAGE 27 1 SCHEDULE X LATE PAYMENT PENALTY Payment not received by the Customer Service Department on or before, the end of the business day of the due date as billed shall be considered delinquent and a one-time charge of five percent (5%) of the delinquent amount shall be charged. In the event the due date as billed falls on a weekend or holiday, it shall be due on the next business day. All payments received shall be credited to the oldest outstanding balance. In the event a customer, in good faith, disputes the correctness of any bill, or portion thereof, the amount of such bill which is disputed shall not be considered delinquent until after a review of such disputed amount is made and errors, if any, are corrected, or the correctness of the disputed amount is confirmed. When a customer, in good faith, disputes the correctness of only a portion of an amount billed, the customer is not relieved of the obligation to pi,y the amount of such bill which is not disputed by the date due and the late payment penalty shall be applied to any such undisputed amount for which payment is not received by the date due as billed. PAGE 28 v, r + +r SECTION It, That if any section, subsection, paragraph, s%ntence, clause, phrase or word in this ordinance, or applicatica thereof to any person or circumstances is held invalid by any court of competent urisdiction, such holding shall not affect the validity o the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION III. What this ordinance shall become effective on December 1, 1985, and the- "Schedules of Rates" herein adopted, atoll be effective, applied to and be charged on all billings made on or after December 1, 1985. PASSED AND APPROVED this day of 1985. RIC`RARE'77"STUM. TOYbr- CITY OF DENTON, TEXAS ATTEST: CHARLOTTE ALLEN, CITY SECRETM CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY: LY1~ PAGE 28 Aa h 1 l I November 10, 198s CITY COUNCIL AGENDA ITEM TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Rick Svehla, Acting City Manager SUBJECT: Late Payments KfiCOMMENDATION The Public Utilities Board, at its October 16th meeting, recommended the adoption of an ordinance providing for prompt payment and late payment penalty. SUMMARY/BACKGROUND The City of Denton, like other utilities, is experiencin a. growth in accounts receivables. We now have between 1101 and $15 million in billings which have not yet been paid. Utility service customers must covor the costs, i.e., lost interest, obligated funds which could otherwise be used to pay other expenses, increased collection costs and possible increased debt cost. Accounts receivables are one use of working capital. The growth in receivables for the last several years has tied up a large portion of excess revenues. As it is now funded, all customers share a part of the cost of increasing receivables through their rates. This proposal is intended to allocate some of the costs associated with dolays in paying bills to those customers who are clearing the cost. A reduction, or more likely, a stabilization of receivables, will allow other uses for funds which become available. An oxample of another use of working capital is to cover fixed system costs during those periods when revenues do not fully cover expenses. This use of funds allows more evenly distributed costs to customers. Cther utilities In the Denton area, such as Texas Power and Light, The City of Dallas Water Utility, Dallas Power and Light, and Texas Electric Service Company, have instituted somo form of increased charge for delayed payment of billings. The City of Austin has instituted a charge similiar to the one proposed. The additional revenues gained from delayed payments will be assigned to the customer class which generates the revonues. Thot will then reduce the total revenue requirement for the customer class. The net result is that a customer chess wi11 have the opportunity to benefit prompt payment customers rather thhan share the costs associated with consistently late payments. PROGRAMS, DEPARTMENTS, OR GROUPS AFFECTED Denton Municipal Utilities, Finance, All Utility Custoac+rs. FISCAL IMPACT Them is not sufficient 'data to deterwine the effect' at this time. i Prepared by: Respectfully submitted, ar es ryas c ve a utility budget/Rate Adm. Acting City Manager Approved: . e son, , Director of Utilities Exhibit I: Ordinance 4019U:S NO. AN ORDINANCE PROVIDING FOR A PENALTY CHARGE FOR THE LATE PAYMENT OF UTILITY BILLS; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS; SECTION 1. That all services provided by they City tof Denton to sits rcusand tomers sanitation bo due and payable on or before the due date as billed, which shall not be less than ewenty-five (23) days from the date of issuance of the bill. Payment not received by the Customer Service Department on or before the and of the business day of the due date as billed shall be considered delinquent and a one,-time charge of five percent (Si) of the delinquent amount shall be charged. In the event the due date as billed falls cn a weekend jr holiday, it shall be due on the next business day. All payments received shall be credited to the oldest outstanding balance. In the event a customer, in good faith, disputes the correctness of any bill, or portion thereof, the amount of such afterwai review oaDf usuch sdisputed amount sissmaded sad gerrors nrif any, are corrected, or the correctness of the disputed amount is confirmed. khan a customer, in good faith, disputes the correctness of only a portion of an amount billed, the customer is not relieved of the obligation to pay the amount of such bill which is not disputed by the date due and the late payment penalty shall be applied to an-, such undisputed amount for which payment is not received by the date due as billed. SECTION IT. That this ordinance shall be effective on December 1, 1983 and the penalty charge provided for herein for late payments shell apply to all billings made on or after December 10 1983. PASSED AND APPROVED this the day of , 1983. CITY( NTON$ TEXASA ATTEST: CITY OF DENTON,*TEXAS APPROVED AS TO LEGAL FORM: DEBRA ADANI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON) TEXAS BY; 'YY~i Ii/v"