Full Text
CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.0.1 Anaheim, CA 92805 SCHEDULE RSA RATE STABILIZATION ADJUSTMENT (FORMERLY KNOWN AS SCHEDULE PCRSA) ISSUED BY: Effective: 02-01-09 by Resolution No.: 2009-001 Dated: 01-13-09 Marcie L. Edwards Superseding Resolution No.: 2003R-187 Dated: 10-14-03 General Manager APPLICABILITY This schedule contains a Power Cost Adjustment (PCA) and an Environmental Mitigation Adjustment (EMA). The PCA is applicable to all areas served by the Utility and to all kilowatt-hours (kWh) billed under all rate schedules (except domestic lifeline) as defined under the special conditions of the rate schedules. The EMA is applicable to all areas served by the Utility and to all kWh billed under all rate schedules as defined under the special conditions of the rate schedules. PURPOSE The PCA billing factor allows for the recovery of power supply and other relevant operational costs based on actual 12 month rolling data from the accounting system and forecasted data to provide the ability for the Utility to meet specified financial performance indicators and goals. These goals include the maintenance of debt service coverage ratios no less than 1.5 times, rate stabilization account equal to approximately $50 million, and the recovery of expenses associated with the production and purchase of energy delivered to Anaheim that are not recovered through the EMA. This factor also provides a mechanism to return overcollection of funds when costs decrease. The EMA billing factor allows for the recovery of costs projected by the Utility associated with Environmental Mitigation as it relates to the procurement, generation, transmission, or distribution of electricity that are not recovered through the PCA. Environmental Mitigation costs shall include, but not be limited to, costs to the Utility associated with judgments, orders, compliance assessments, decisions, or settlements by a court, governmental agency, governmental commission, governmental department, governmental board, or other adjudicatory body for activities including, but not limited to, carbon or other Greenhouse Gas emission reduction, energy efficiency/load reduction, environmental remediation costs as well as the marginal cost differential between the Utility’s carbon-based power supply costs and mandated renewable power supply costs. APPLICATION Power Cost Adjustment Each quarter, the Utility shall recalculate the PCA to be added or subtracted to or from energy service charges. The PCA shall be calculated as follows: Commencing upon the effective date, the Utility shall calculate a PCA billing factor that recovers costs relating to the procurement and generation of energy, including, but not limited to, power production costs, purchased power costs, regulatory compliance costs, debt service and any other costs involved in delivering energy to the Utility’s local receiving point(s) that are not recovered through the EMA. There is no limit on the Utility’s ability to decrease the PCA rate. Increases to the PCA billing factor shall be limited to no more than a ½¢ per kWh during any 12-month period. If the Utility loses a major resource, or average wholesale energy or fuel prices, as reflected in the forward curve for the So Cal Border or Citygate natural gas price index or the SP15 standard energy price or successor or comparable market, increase by a factor greater than 10% of budgeted levels and are projected to be sustained at that level for greater than one month, the billing factor limit may be increased by up to an additional 1¢ per kWh during any 12-month period to recover this cost variance. (Continued) ---PAGE BREAK--- CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.0.2 Anaheim, CA 92805 SCHEDULE RSA RATE STABILIZATION ADJUSTMENT (FORMERLY KNOWN AS SCHEDULE PCRSA) ISSUED BY: Effective: 12-01-25 by Resolution No.: N/A Dated: N/A Dukku Lee Superseding Resolution No.: 2009-001 Dated: 01-13-09 General Manager APPLICATION (Continued) Power production costs include the sum of costs for the generation of electric energy at facilities owned and operated by the Utility or by a facility manager. Purchased power costs include the sum of costs of energy, transmission and ancillary services. Wholesale revenues received from the sale of excess power and the use of the Utility's transmission lines shall be used to reduce the costs that are recovered through the PCA. The Utility shall establish a regulatory credit account, funded by PCA collections, that may rise above or be drawn down below a cash reserve balance equal to approximately $50 million to be used to mitigate material fluctuations in the cost of energy, loss of revenues or unbudgeted costs including the unexpected long-term loss of a generating facility, unplanned limits on the ability to transmit energy to Anaheim, or disasters (e.g. earthquakes, et al.) that can otherwise negatively affect the revenue stream. This regulatory credit account may be drawn down below $50 million, at management’s discretion, to mitigate the impact on customer bills. With respect to any PCA adjustment, the Utility shall first consider the impact on customer bills with a goal of maintaining competitive or lower total electric bills as compared to other cities in the region. Any change indicated by the PCA calculation shall be reviewed against other known long-term factors prior to any automatic implementation of any increase/decrease in the rate. This allows the Utility to blend forecasted increases or decreases in the projected power supply or operational costs to meet the financial requirements of the Utility while mitigating large swings in electrical costs to customers. Power Cost Adjustment Billing Factor (per kilowatt hour) Date Implemented Domestic Domestic Lifeline Commercial/Industrial Municipal Service Large TOU February 1, 2017 $0.0000 $0.0000 $0.0000 $0.0000 ($0.0052) February 1, 2018 $0.0050 $0.0000 $0.0050 $0.0050 ($0.0002) February 1, 2019 $0.0100 $0.0000 $0.0100 $0.0100 $0.0048 December 1, 2022 $0.0150 $0.0000 $0.0150 $0.0150 $0.0098 July 1, 2023 $0.0150 $0.0000 $0.0150 $0.0150 $0.0089 May 1, 2024 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 December 1, 2024 $0.0050 $0.0000 $0.0050 $0.0050 $0.0050 December 1, 2025 $0.0100 $0.0000 $0.0100 $0.0100 $0.0100 Environmental Mitigation Adjustment Commencing upon the effective date, the amount of the EMA shall be zero. Thereafter, the Utility shall calculate an EMA billing factor that recovers costs relating to Environmental Mitigation. Environmental Mitigation costs include, but are not limited to, the following: 1) projected expenditures related specifically to Greenhouse Gas emissions which include, but are not limited to, a) expenditures to purchase emission credits (net of emission credit sales), or b) taxes on emissions imposed by regulatory and/or governmental agencies; and 2) projected Environmental Mitigation costs imposed by a) regulatory bodies, b) legislative mandates, or c) judicial settlements, orders, or decrees, that are components in the annual budget adopted by the City Council including, but not limited to, the cost differential between the Utility’s renewable power supply and its traditional carbon-based power supply that are not recovered in the PCA. These projected Environmental Mitigation costs shall be divided by projected retail kWh sales. There is no limit on the Utility’s ability to decrease the EMA rate. Increases to the EMA billing factor shall be limited to no more than a ½¢ per kWh during any 12-month period. If the costs recovered by the EMA increase by a factor greater than 10% of levels projected in the current rate amount and are projected to be sustained at that level for greater than one month, the billing factor limit may be increased by up to an additional 1¢ per kWh during any 12-month period to recover this cost variance. (Continued) ---PAGE BREAK--- CITY OF ANAHEIM ELECTRIC RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 2.0.3 Anaheim, CA 92805 SCHEDULE RSA RATE STABILIZATION ADJUSTMENT ISSUED BY: Effective: 12-01-25 by Resolution No.: N/A Dated: N/A Dukku Lee Superseding Resolution No.: 2009-001 Dated: 01-13-09 General Manager APPLICATION (Continued) The Utility shall establish a separate regulatory credit account, funded by EMA collections, to be used to mitigate material fluctuations in the related Environmental Mitigation costs including unexpected increases in the cost of Greenhouse Gas emission credits or taxes that can otherwise negatively affect the revenue stream. This regulatory credit account may be drawn down at management’s discretion, to mitigate the impact on customer bills. With respect to any EMA adjustment, the Utility shall first consider the impact on customer bills with a goal of maintaining competitive or lower total electric bills as compared to other cities in the region. Any change indicated by the EMA calculation shall be reviewed against other known long-term factors prior to any implementation of any increase or decrease in the rate. This allows the Utility to blend forecasted increases or decreases in the projected Environmental Mitigation costs to meet the financial requirements of the Utility while mitigating large swings in electrical costs to customers. Environmental Mitigation Adjustment Billing Factor (per kilowatt hour) Date Implemented Domestic Commercial/Industrial Municipal Service Large TOU April 3, 2017 $0.0005 $0.0005 $0.0005 $0.0005 May 17, 2018 $0.0005 $0.0005 $0.0005 $0.0055 March 9, 2020 $0.0055 $0.0055 $0.0055 $0.0105 March 9, 2021 $0.0105 $0.0105 $0.0105 $0.0155 August 11, 2021 $0.0105 $0.0105 $0.0105 $0.0128 December 1, 2022 $0.0155 $0.0155 $0.0155 $0.0128 December 1, 2023 $0.0205 $0.0205 $0.0205 $0.0178 May 1, 2024 $0.0005 $0.0005 $0.0005 $0.0005 December 1, 2024 $0.0030 $0.0030 $0.0030 $0.0030 December 1, 2025 $0.0055 $0.0055 $0.0055 $0.0055 IMPLEMENTATION The RSA amount for all rate schedules shall be adjusted within limits as prescribed above, as necessary, by the Public Utilities General Manager to reflect the cost per kWh of electricity, energy, or Environmental Mitigation costs described herein. All accounting procedures under this rate schedule shall be in compliance with Financial Accounting Standard # 71.