Springfield Utility Board February 13, 2019 There are two public - PowerPoint PPT Presentation

Springfield Utility Board February 13, 2019

� There are two public hearings for a proposed electric rate increase. February 13 th and March 13 th . � During the discussions with the SUB Budget Committee, the Board provided direction to spread a recommended rate increase out in smaller phases. The 2019 Budget assumed a 5.0% increase in electric rates effective May 1, 2019. � BPA’s Transmission and Power rates will be increasing and represent ~66% of total Electric Utility Costs. � SUB’s 10-Year Plan contains increased Capital costs due to investment in infrastructure.

� BPA provided additional information on proposed power and transmission rate increases effective October 1, 2019 � The rate proposed is consistent with the Budget Committee recommendations. � Based on input from the committee and the Board, the recommendation is to plan for annual rate adjustments every year instead of larger rate adjustments every other year.

Total Rate Revenue May 2019 2018 Rates % Change Proposed Rates R1 $25,321,940 $26,581,032 4.97% GS1 $4,446,290 $4,669,008 5.01% GS2 $15,368,977 $16,142,741 5.03% GS3 $3,845,109 $4,033,729 4.91% L1 $301,520 $316,596 5.00% L2 $24,021 $25,222 5.00% L3 $127,591 $133,970 5.00% L4 $45,277 $47,540 5.00% E1 $0 $0 $49,480,725 $51,949,839 5.00%

Rate Changes by Year by Customer Class Effective R-1 GS-1 GS-2 GS-3 Lighting E-1 Total Year 2006 2.82% 2.82% 2.78% 2.40% 1.40% 2.75% 2007 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2008 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2009 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2011 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2012* 8.50% 8.49% 8.50% 8.50% 8.50% 8.50% 2013 4.00% 4.00% 4.00% 3.90% 4.00% 4.00% 2014 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2015 3.02% 3.07% 2.98% 2.98% 3.00% 3.00% 2016 3.00% 3.01% 3.00% 3.01% 3.00% 3.00% 2017 2.91% 2.92% 2.90% 2.94% 2.90% New 3.00% 2018 2.00% 2.03% 2.01% 1.97% 2.00% 2.00% 2019** 4.97% 5.01% 5.03% 4.91% 5.00% 5.00% 31.22% 31.35% 31.20% 30.61% 29.80% 31.25% * Note: 2012 had two increases to total 8.50% ** With proposed electric rate change

� Current Rates  Base Charge: $12.90  Energy Charge ▪ October - April ▪ First 1,500 kWh: $0.0551/kWh ▪ 1,501+ kWh: $0.0652/kWh ▪ May - September ▪ First 900 kWh: $0.0551/kWh ▪ 901+ kWh: $0.0601/kWh � Proposed Rates 50% Base / 50% Usage 25% Base / 75% Usage  Base Charge: $14.90 $14.00  Energy Charge ▪ October - April ▪ First 1,500 kWh: $0.0567/kWh $0.0575/kWh ▪ 1,501+ kWh: $0.0668/kWh $0.0676/kWh ▪ May - September ▪ First 900 kWh: $0.0567/kWh $0.0575/kWh ▪ 901+ kWh: $0.0617/kWh $0.0625/kWh Average Monthly Bill Increase $3.54 $3.41 �

Monthly Base Charges for Residential Electric Service $60.00 $53.00 $50.00 $40.00 $28.00 $30.00 50% Base 25% Base $22.00 $20.50 50% Usage 75% Usage $20.00 $14.90 $14.00 $10.00 $0.00 Springfield EWEB Central Lincoln Emerald PUD Blachly-Lane Utility Board PUD Coop

� The 5% overall increase in revenues for the proposed residential rates reflects:  An increase of $2.00 to the base charge (~50% revenue from base, ~50% from usage), -or-  An increase of $1.10 to the base charge (~25% revenue from base, ~75% from usage) � Under 2018 (current) rates, the residential base charge collects ~17.2% of total residential electric revenue. � Under the proposed rates, the residential base charge collects:  ~18.9% of total residential electric revenue (~50% revenue from base, ~50% from usage) -or-  ~17.7% of total residential electric revenue (~25% revenue from base, ~75% from usage) � .

Lane County Utilities - Residential Electric Rate Comparison as of February 2019 Blachly-Lane Coop $143.05 Lane Electric Coop $116.16 EWEB $108.41 EPUD $98.50 Central Lincoln PUD $95.23 SUB $65.93 $69.47 under 50% base / 50% usage ( $69.34 under 25% base / 75% usage) $0 $20 $40 $60 $80 $100 $120 $140 $160 Average $/month for 6,560 kwh/year - shaped by month based on average Residential profile

Oregon Residential Electric Rate Comparison as of February 2019 West Oregon Coop $190.28 Blachly-Lane Coop $143.05 City of Drain $136.50 Wasco Electric Coop $119.32 PGE $119.23 Coos-Curry Coop $117.37 Clearwater Power $116.20 Lane Electric Coop $116.16 EWEB $108.41 Harney Coop $104.49 Columbia Basin Electric Coop $103.81 PacifiCorp $103.72 Douglas Coop $102.09 EPUD $98.50 Oregon Trail Electric Coop $97.27 Columbia Power Coop $95.86 Central Lincoln PUD $95.23 Consumer's Power $94.47 Midstate Electric Coop $93.19 City of Tillamook $92.44 Central Electric Coop $89.34 Salem Electric $88.90 City of Ashland $88.81 Hood River Coop $82.75 Hermiston Energy Services $81.35 City of Monmouth $80.56 Columbia River PUD $80.15 Umatilla Electric Coop $79.22 City of Forest Grove $78.53 City of Bandon $78.29 Canby Utility $77.67 City of Cascade Locks $77.65 Milton-Freewater City Light $74.87 Northern Wasco Electric Coop $72.76 SUB $69.47 under 50% base / 50% usage ($69.34 under 25% base / 75% usage) McMinnville $69.45 Clatskanie $67.80 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Average $/month for 6,560 kwh/year - shaped by month based on average Residential profile

� Current Rates  Base Charge ▪ Single Phase: $21.60 ▪ Three Phase: $40.50  Energy Charge ▪ October – April (all kWh): $0.0598/kWh ▪ May – Sept (all kWh): $0.0535/kWh � Proposed Rates 50% Base / 50% Usage 25% Base / 75% Usage  Base Charge ▪ Single Phase: $25.20 $23.40 ▪ Three Phase: $44.10 $42.30  Energy Charge ▪ October – April (all kWh): $0.0616/kWh $0.0626/kWh ▪ May – Sept (all kWh): $0.0551/kWh $0.0560/kWh

Current Rates �  Base Charge ▪ Single Phase $41.40 ▪ Three Phase $82.20  Energy Charge ▪ October – April ▪ First 10,000 kWh $0.0658/kWh ▪ 10,001+ kWh $0.0486/kWh ▪ May – September ▪ First 10,000 kWh $0.0587/kWh ▪ 10,001+ kWh $0.0379/kWh  Demand Charge (over 35 kW) $6.73/kW Proposed Rates �  Base Charge ▪ Single Phase $43.50 ▪ Three Phase $84.30 Revenue Split  Energy Charge 3% Base ▪ October – April ▪ First 10,000 kWh $0.0700/kWh 79% Usage ▪ 10,001+ kWh $0.0517/kWh 18% Demand ▪ May – September ▪ First 10,000 kWh $0.0625/kWh ▪ 10,001+ kWh $0.0403/kWh  Demand Charge (over 35 kW) $6.73/kW

� Current Rates  Base Charge ▪ Single Phase $41.40 ▪ Three Phase $82.20  Energy Charge ▪ October – April $0.0470/kWh ▪ May – September $0.0517/kWh  Demand Charge (all kW) $6.73/kW � Proposed Rates  Base Charge ▪ Single Phase $43.50 Revenue Split ▪ Three Phase $84.30 0% Base  Energy Charge 78% Usage ▪ October – April $0.0500/kWh 22% Demand ▪ May – September $0.0550/kWh  Demand Charge (all kW) $6.73/kW

� Energy Charge for all Lighting customers increased by 5% � Combined, the infrastructure charge and the increase in energy charge results in an overall increase of 5%.

� New rates to be effective April 1, 2019 for bills rendered on or after May 1, 2019. � Staff is available to answer questions after this presentation, as well as during consideration of public comments.