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HomeMy WebLinkAbout2011 02 14 Consent 204 Authorization to Decrease the City Standard Street Light Base Rate COMMISSION AGENDA CONSENT X INFORMATIONAL ITEM 204 PUBLIC HEARING REGULAR February 14, 2011 MGR /DEPT 4./ Meeting r A thorization / REQUEST: The Community Development Department, Urban Beautification Division, is requesting authorization to decrease the City Standard Street Light Base Rate from $14.02 to $13.79 per month pursuant to a revised rate schedule from Progress Energy, effective January 1, 2011. The revised rate represents a reduction of $.23 per base street light as compared to the previous rate. SYNOPSIS: The City's street lights are leased from Progress Energy at a flat monthly rate, which is inclusive of all maintenance and replacement costs. On April 13, 1998, the City Commission adopted the `Standard' Street Light consisting of one (1) basic 30 / 35' Concrete Pole attached to one (1) High Pressure Sodium 100 watt Cobra Fixture. This street light configuration is provided as a minimum standard along public roadways throughout Winter Springs. The cost for a standard street light is revised annually by Progress Energy and is used to calculate a `Base Rate' for quarterly reimbursements to approved Neighborhood Groups who are in a Neighborhood Street Sign and Light Improvement Agreement (NSSLIA) with the City for upgraded decorative street lights. Currently, the City has an inventory of approximately 2,300 units in the Street Light Program and eight (8) Neighborhood Groups are participating with decorative upgrades through an executed NSSLIA with the City. CONSIDERATIONS: In December of each year Progress Energy makes available to the City a revised rate schedule for street lighting that will become effective January 1st of the upcoming calendar year. On January 1, 2011, a rate adjustment took affect which decreased the monthly cost of our standard base street lights by $.23 each. Such cost revisions are comprised of rates and fees which have received approval from the Florida Public Service Commission (FPSC) and are not negotiable by the end user. 1 Based upon Progress Energy rates approved by the FPSC and published in the rate schedule (PSC BA -1 Sec. No. VI - Sixty-Sixth Revised Sheet No. 6.105), effective January 1, 2011, the City Standard Street Light Base Rate should be adjusted from $14.02 to $13.79 per month. This cost revision will result in an overall decrease of approximately $6,000 for one (1) year of street light service (Line Code 1526 - 54312) as compared to the previous rate. FISCAL IMPACT: The Streetlighting Fund (1526) has a budget of $444,500 for expenditures related to ongoing costs of street lighting as billed by Progress Energy. Funding for the City Standard Base Street Light in the amount of $13.79 will continue to come from Street Lighting Line Code (1526 - 54312). This Progress Energy street light price revision became effective on January 1, 2011; therefore, the revised cost will be retroactive to the effective date, upon Commission approval. COMMUNICATION EFFORTS: This Agenda Item has been forwarded to the Mayor and City Commission; City Manager; City Attorney /Staff; placed in Press Packets; placed in the City Hall (Lobby) City Commission Meeting binder; and is available on the City's Website, LaserFiche, and the City's Server. Further, information related to this Agenda Item has been sent to media/press representatives who have requested Agendas /Agenda Item information, all Homeowner's Associations on file with the City, all individuals who have requested Agendas /Agenda Item information, Department Directors; and also posted outside City Hall; posted inside City Hall with additional copies available for the general public; and posted at five (5) different locations around the City. RECOMMENDATION: The Community Development Department, Urban Beautification Division, recommends that the City Commission approve the Street Light Base Rate of $13.79 per month, effective retroactively to January 1, 2011. ATTACHMENTS: 1. Progress Energy Cost Revision Sheet - BA - Sec. No. VI - Sixty - Sixth Revised Sheet No. 6.105 (2 pages) 2. City Standard Base Rate Calculation (Proposed) - Eff. January 1, 2011 2 �( 1 g Progress Energy SECTION NO. VI SIXTY -SIXTH REVISED SHEET NO 6.105 CANCELS SIXTY -FIFTH REVISED SHEET NO. 6.105 Page 1 of 2 RATE SCHEDULE BA -1 BILLING ADJUSTMENTS Applicable: To the Rate Per Month provision in each of the Company's filed rate schedules which reference the billing adjustments set forth below. COST RECOVERY FACTORS Rate Fuel Cost Recovery " ECCR CCR ECRC Schedule /Metering Levelized On -Peak Off-Peak Level t/ kWh 41 kWh tt/ kWh t./ kWh $/ kW J kWh CI kWh RS 1, RST -1, RSL -1, 6.237 4.083 0.299 - 1.527 0.491 RSL -2, RSS -1 (Sec.) < 1000 4.461 > 1000 5.461 GS -1, GST -1 Secondary 4.776 6.237 4.083 0.252 - 1.113 0.482 Primary 4.728 6.175 4.042 0.249 - 1.102 0.477 Transmission 4.680 6.112 4.001 0.247 - 1.091 0.472 GS -2 (Sec.) 4.776 - - 0.216 - 0.803 0.463 GSD -1, GSDT -1, SS -1* Secondary 4.776 6.237 4.083 - 0.90 0.992 0.471 Primary 4.728 6.175 4.042 - 0.89 0.982 0.466 Transmission 4.680 6.112 4.001 - 0.88 0.972 0.462 CS -1, CST -1, CS -2, CS -3, CST -3, SS -3* Secondary 4.776 6.237 4.083 - 0.94 0.845 0.464 Primary 4.728 6.175 4.042 - 0.93 0.837 0.459 Transmission 4.680 6.112 4.001 - 0.92 0.828 0.455 IS-1, IST-1, IS-2, IST-2, SS -2* Secondary 4.776 6.237 4.083 - 0.82 0.798 0.451 Primary 4.728 6.175 4.042 - 0.81 0.790 0.446 Transmission 4.680 6.112 4.001 - 0.80 0.782 0.442 'sir LS -1 (Sec.) 4.486 - - 0.151 - 0.233 0.470 *SS -1, SS -2, SS -3 Monthly Secondary - - - - 0.089 - - Primary - - - - 0.088 - - Transmission - - - - 0.087 - - Daily Secondary - - - - 0.042 - - Primary - - - - 0.042 - - Transmission - - - - 0.041 - - GSLM -1, GSLM -2 See appropriate General Service rate schedule (1) Fuel Cost Recovery Factor: The Fuel Cost Recovery Factors applicable to the Fuel Charge under the Company's various rate schedules are normally determined annually by the Florida Public Service Commission for the billing months of January through December. These factors are designed to recover the costs of fuel and purchased power (other than capacity payments) incurred by the Company to provide electric service to its customers and are adjusted to reflect changes in these costs from one period to the next. Revisions to the Fuel Cost Recovery Factors within the described period may be determined in the event of a significant change in costs. (2) Energy Conservation Cost Recovery Factor: The Energy Conservation Cost Recovery (ECCR) Factor applicable to the Energy Charge under the Company's various rate schedules is normally determined annually by the Florida Public Service Commission for twelve -month periods beginning with the billing month of January. This factor is designed to recover the costs incurred by the Company under its approved Energy Conservation Programs and is adjusted to reflect changes in these costs from one period to the next. For time of use demand rates the ECCR charge will be included in the base demand only. (Continued on Page No. 2) ISSUED BY: Lori J. Cross, Manager, Utility Regulatory Planning - Florida EFFECTIVE: January 1, 2011 Progress Energy SECTION NO. VI TWENTY -THIRD REVISED SHEET NO. 6.106 CANCELS TWENTY- SECOND REVISED SHEET NO. 6.106 Page 2 of 2 RATE SCHEDULE BA -1 BILLING ADJUSTMENTS (Continued from Page 1) (3) Capacity Cost Recovery Factor: The Capacity Cost Recovery (CCR) Factors applicable to the Energy Charge under the Company's various rate schedules are normally A. determined annually by the Florida Public Service Commission for the billing months of January through December. This factor is designed to recover the cost of capacity payments made by the Company for off - system capacity and is adjusted to reflect changes in these costs from one period to the next. (4) Environmental Cost Recovery Clause Factor: The Environmental Cost Recovery Clause (ECRC) Factors applicable to the Energy Charge under the Company's various rate schedules oL, are normally determined annually by the Florida Public Service Commission for the billing months of January through December. This ' factor is designed to recover environmental compliance costs incurred by the Company and is adjusted to reflect changes in these costs from one period to the next. Gross Receipts Tax Factor: In accordance with Section 203.01 of the Florida Statutes, a factor of 2.5641 % is applicable to electric sales charges for collection of the state Gross Receipts Tax. Right -of -Way Utilization Fee: A Right -of -Way Utilization Fee is applied to the charges for electric service (exclusive of any Municipal, County, or State Sales Tax) provided to customers within the jurisdictional limits of each municipal or county governmental body or any unit of special- purpose govemment or other entity with authority requiring the payment of a franchise fee, tax, charge, or other imposition whether in money, service, or other things of value for utilization of rights -of -way for location of Company distribution or transmission facilities. The Right -of- Way Utilization Fee shall be determined in a negotiated agreement (i.e., franchise and other agreements) in a manner which reflects the Company's payments to a govemmental body or other entity with authority plus the appropriate Gross Receipts Taxes and Regulatory Assessment Fees resulting from such additional revenue. The Right -of -Way Utilization Fee is added to the charges for electric service prior to the application of any appropriate taxes. Municipal Tax: A Municipal Tax is applied to the charge for electric service provided to customers within the jurisdictional limits of each municipal or other govemmental body imposing a utility tax on such service. The Municipal Tax shall be determined in accordance with the govemmental body's utility tax ordinance, and the amount collected by the Company from the Municipal Tax shall be remitted to the govemmental body in the manner required by law. No Municipal Tax shall apply to fuel charges in excess of 0.699¢/kWh. Sales Tax: A State Sales Tax is applied to the charge for electric service provided to all non - residential customers and equipment rental provided to all customers (unless a qualified sales tax exemption status is on record with the Company). The State Sales Tax shall be determined in accordance with the State's sales tax laws. The amount collected by the Company shall be remitted to the State in the manner required by law. In those counties that have enacted a County Discretionary Sales Surtax, such tax shall be applied and paid in a like manner. Governmental Undergrounding Fee: Applicable to customers located in a designated Underground Assessment Area within a local government (a municipality or a county) that requires the Company to collect a Govemmental Undergrounding Fee from such customers to recover the local govemment's costs of converting overhead electric distribution facilities to underground facilities. The Govemmental Undergrounding Fee billed to a customer's account shall not exceed the lesser of (i) 15 percent of a customer's total net electric service charges, or (ii) a maximum monthly amount of $30 for residential customers and $50 for each 5,000 kilowatt-hour increment of consumption for commercial /industrial customers, unless the Commission approves a higher percentage or maximum monthly amount. The maximum monthly amount shall apply to each line of billing in the case of a customer receiving a single bill for multiple service points, and to each occupancy unit in the case of a master metered customer. The Governmental Undergrounding Fee shall be calculated on the customer's charges for electric service before the addition of any applicable taxes. ISSUED BY: Lori J. Cross, Manager, Utility Regulatory Planning - Florida EFFECTIVE: February 10, 2010 City Standard Street Light - Base Rate Effective January 1 2011 Monthly Units Maint Rental Kwh Each Energy Fuel F&E Total Line Totals 4> Luminaries 1 I $172 $3.64 0.42 ' $1.08 1 $1.88 $2.96 $8.32 —�— Poles 1 ( $5.05 I $5.05 Gross R'cpt Tax All $0.08 $0.08 Municipal Franchise All $0.18 $0.18 , ' Municipal Utility Tax $0.17 Customer Charge 1 $1.19 $0.00 Not in total (non - metered) Monthly Total $13.79 0 Yearly Total $168.24 Street Light Type - Base Street Light 30/35' Concrete / PLBC301/351 100w HPS Roadway / L27,L33 0