Item 7: AE Pages from City budget document — original pdf

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2020-21 City of Austin Proposed Budget City of Austin Taxpayer Impact Statement Estimated Annual Impact of Approved Rate and Fee Changes on a “Typical” Residential Ratepayer Service or Fee Fiscal Year 2019-20 Yearly Rate Fiscal Year 2020-21 Proposed Rate Annual Dollar Change Typical Ratepayer Defined as: Austin Energy $1,056.60 $1,015.20 ($41.40) Residential customer usage of 860 Kwh. Austin Water Austin Resource Recovery Clean Community Fee Transportation User Fee Drainage Utility Fee $969.48 $299.40 $107.40 $153.48 $141.60 $969.48 $330.60 $107.40 $156.48 $141.60 $0 $0 $0 Property Tax Bill $1,408.78 $1,428.51 $19.73 Residential customer usage of 5,800 gallons of water and 4,000 gallons of wastewater $31.20 Residential customer using a 64-gallon cart Per single-family home $3.00 Per single-family home Residential customer with 3,100 sq. ft./37% of impervious cover FY21 projected median non-senior homestead assessed value of $362,631, net of 10% homestead exemption TOTAL YEARLY IMPACT $4,136.74 $4,149.27 $12.53 Combined projected increase of 0.3% No-New-Revenue Tax Rate – The tax rate that would generate the same amount of property tax revenue as in the prior year when applied to properties taxed in both years (net of certain state-mandated adjustments). DEFINITIONS Voter-Approval Tax Rate – The tax rate that would generate the same amount of operations and maintenance property tax revenue as in the prior year when applied to properties taxed in both years (net of certain state-mandated adjustments), plus 3.5%, and plus the additional tax rate necessary to generate sufficient revenue for debt service requirements. NON-SENIOR HOMESTEADS General Homestead Exemption of 10% of Assessed Value Property Valuation Property Tax Bill (Annual) FY 2021 Assessed Value Percent Growth* Current Tax Bill Dollar Change from Previous No-New- Voter-Approval Proposed Tax Rate $0.4377 $393.93 $787.86 $1,575.72 $3,151.44 $370.27 $758.71 $1,563.19 $3,122.62 Revenue Tax Rate* $0.4229 $380.61 $761.22 $1,522.44 $3,044.88 Tax Rate* $0.4377 $393.93 $787.86 $1,575.72 $3,151.44 SENIOR/DISABLED HOMESTEADS General Homestead Exemption of 10% of Assessed Value Senior/Disabled Homestead Exemption of $88,000 Property Valuation Property Tax Bill (Annual) Current Tax Bill $0 $352.49 Proposed Tax Rate $0.4377 $8.75 $402.68 $1,159.20 $1,190.54 $2,735.86 $2,766.26 Dollar Change from Previous No-New- Voter-Approval Revenue Tax Rate* $0.4229 $8.46 $389.07 $1,150.29 $2,672.73 Tax Rate* $0.4377 $8.75 $402.68 $1,190.54 $2,766.26 $100,000 $200,000 $400,000 $800,000 $100,000 $200,000 $400,000 $800,000 7.7% 5.1% 2.0% 2.2% 8.9% 7.4% 3.0% 2.1% FY 2021 Assessed Value Percent Growth* Year $23.66 $29.15 $12.53 $28.82 Year $8.75 $50.19 $31.34 $30.40 *percent growth in property values, no-new-revenue tax rate, and voter-approval tax rate are all projected pending receipt of the certified tax roll. English BUDGET IN BRIEF The City of Austin is a large organization with diverse operations ranging from the standard functions generally associated with city government such as police, fire, parks, health services, libraries, and street maintenance to more independent concerns like Austin Energy, Austin Water, and the Austin Bergstrom International Airport. Structurally, these functions are broken into major fund categories with the tax- supported operations housed within the City’s General Fund. Departments that generate sufficient revenue to fully fund operations are categorized as enterprise funds. Supporting functions like human resources, financial services, law, information technology, and fleet are accounted for in internal service funds since their primary source of funding comes from other City departments. In addition to the differentiations by department and fund type, the City’s budget is further segregated into the Operating Budget, which encompasses daily activities, and the Capital Budget, which includes funding for major capital improvement projects. Operating Budget In FY 2020-21 the City plans on spending $4.2 billion on operations. The chart below gives a broad overview of the major expenditures for the City’s operating budget. It is evident from this Uses of Funds chart that the City’s enterprise departments account for most of the expenditures, with the largest two departments being Austin Energy and Austin Water at 31% and 13% of the total City’s operating budget, respectively. The General Fund with expenditures of $1.1 billion comprises 25% of the citywide operating budget. Reserve, debt retirement, internal services, and other enterprise funds constitute the remaining 31% of the budget. The General Fund budget for FY 2020-21 totals $1,090.2 million, reflecting a net increase of $1.5 million from the prior year. On-going operations are increasing $37.1million, however this increase is offset by a reduction of $12.6 million in the transfer into the Budget Stabilization Reserve Fund and a reimbursement of $26 million by the US Treasury Department for public health and safety expenses related to the COVID-19 response. Through the CARES Act, the City of Austin received $170.8 million in Coronavirus Relief Funds. Of 2020-21 Proposed Budget, Austin, TX192 Austin Resource Recovery’s expansion of the compost program and customer growth. Personnel Summary (Full-Time Equivalent Positions) Personnel by Fund Type FY 2019-20 Amended FY 2020-21 Proposed Percent Change General Fund (e.g. Police, Fire, EMS, Library, Parks and Recreation) 6,654 6,639 (0.2%) Enterprise Funds (e.g. Austin Energy, Austin Water, Aviation) 5,975 6,064 1.5% Internal Service Funds (e.g. Financial Services, Info. Technology) 1,773 1,783 0.6% Special Revenue Funds (e.g. Economic Development, Child Safety) Grant Funds (e.g. Health and Human Services, Police) 97 267 94 (3.1%) 260 (2.6%) TOTAL CITYWIDE FULL-TIME EQUIVALENT POSITIONS 14,766 14,840 0.5% Revenue The City of Austin is a multi-faceted municipal operation, and its revenue sources reflect the many businesses that make up City operations. Roughly speaking, charges for services from the City’s two utilities account for half of the revenue generated, taxes account for about a quarter, and the remaining quarter is a mix of fines, fees, permits, other charges for service, interest, and other revenue. The chart below shows the percentage of each major revenue source for the City as a whole. Total citywide revenue for FY 2020-21 is budgeted at $4.1 billion. Austin Energy utility charges total $1.4 billion, which includes base revenue of $562.3 million, $439.5 million in fuel revenue, $316.1 million in 2020-21 Proposed Budget, Austin, TX200AUSTIN ENERGY Austin Energy is a municipally owned electric utility that delivers energy to over 496,000 residential, commercial, and industrial customers, with over 12,000 miles of distribution and transmission lines serving a 437 square-mile area. The Utility endeavors to safely deliver clean, affordable, reliable energy along with excellent customer service. Operating Programs Customer Care provides excellent customer service and information to all City of Austin Utility customers pertaining to billing, service, and City code. Customer Energy Solutions develops, implements, maintains, and promotes the Austin Energy renewable energy and conservation programs in accordance with the Austin Climate Protection Plan in order for Austin Energy to become a leader in the campaign to address global climate change. Electric System Delivery builds, operates, and maintains Austin Energy’s transmission and distribution systems in the Austin Energy service territory in order to provide clean, reliable, and affordable electric service to our customers. Power Generation, Market Operations, and Resource Planning provides operations, maintenance, and engineering services of Utility-owned power generation plants in order to produce clean, affordable, and reliable energy for sale into the Electric Reliability Council of Texas (ERCOT) wholesale market. The program also provides for the operation of chiller plants. Market Operations ensures that adequate power supply is available to meet customer demand through scheduling and analysis, while ensuring that Austin Energy is in compliance with federal, state, and local laws pertaining to system generation, sale, and purchase of power. Resource planning ensures compliance with Austin Energy's resource generation plan through 2025. Power Supply Adjustment (PSA) provides for the recovery of expenditures for ERCOT settlements, which consist of charges and credits from ERCOT, other than administrative fees. PSA also provides for the recovery of costs for distributed generation production and fuel costs, including fuel transportation and managing gains, losses, and net purchased power agreement costs associated with short-term and long-term purchased power agreements. Support Services provides administrative and managerial support to the Utility. Transfers, Debt Service, and Other Requirements primarily comprises transfers and other departmental requirements at the fund or agency level. 2020-21 Proposed Budget, Austin, TX260Capital Programs Buildings and Improvements includes improvements related to the expansion or renovation of existing facilities and all activities related to the construction of new facilities. Distribution and Distribution Substations moves electricity from the generating facilities to industrial, commercial, and residential customers. Information Technology includes desktop computers, servers, networks, IT security, radio and telephone systems, and software applications. Other includes capital improvement projects that do not fit into specific categories and may also include temporary accounts that hold appropriations prior to allocation of funds to capital projects. Power Production builds and maintains power-generating facilities. Transmission constructs and maintains higher-voltage line infrastructure that carries energy from power plants to Austin Energy’s service territory for distribution at lower voltage to retail customers. Vehicles and Equipment acquires new and replacement vehicles and equipment to support operations. 2020-21 Proposed Budget, Austin, TX261Austin Energy Operating Budget Austin Energy is a municipally owned electric utility that delivers energy to over 496,000 residential, commercial, and industrial customers, with over 12,000 miles of distribution and transmission lines serving a 437 square-mile area. Austin Energy is committed to safely deliver clean, affordable, reliable energy along with excellent customer service. Austin Energy revenue includes base revenue, pass-through revenue, and other revenue sources. Base revenue and pass-through revenue are received from the sales of electric service to retail customers and comprises approximately 90% of total revenue. Base revenue supplies Austin Energy with its operating revenue and is derived from the number of customers served, their usage levels, and base rates. Pass-through revenue recovers actual costs incurred for providing services with no return component. Other revenue includes transmission revenue, infrastructure rental, chilled water services, customer fees, and interest income. Throughout the forecast horizon, Austin Energy’s energy sales in kilowatt hours (kWh) and base revenue are projected to remain flat. Base revenue increases by approximately $41 million in FY 2021-22 primarily due to an anticipated rate review, which is forecasted to remain within the 2% affordability goal. Changes in pass-through revenue are driven by rising power supply costs and wholesale transmission costs. The increases are attributed to a change in power supply sources and rising wholesale transmission costs in the Electric Reliablity Council of Texas (ERCOT) market. Pass-through revenue is expected to increase from approximately $637 million in FY 2020-21 to $667 million in FY 2024-25. Over the five-year forecast, other revenue sources will increase from approximately $149 million in FY 2020-21 to $185 million in FY 2024-25 due to increases in transmission revenue, interest income, chiller revenue, revenue for infrastructure attachments from private corporations, and revenue associated with divested interests in power plants. Austin Energy’s major expenditures are power supply costs, wholesale transmission costs, operating and maintenance expense, debt service, investment in capital improvements, and transfers to the City and the General Fund. For the period of FY 2020-25: • • • • • • • Power supply costs increase from $359 million in FY 2020-21 to $435 million in FY 2024-25. These costs increase in the later years, as generation units are retired at the Decker Power Plant and Fayette Power Plant in FY 2021-22, coupled with the acquisition of additional renewable power supply. Austin Energy recovers these costs through the Power Supply Adjustment charge. Wholesale transmission costs, recovered through the regulatory charge, increase an average of $4 million per year rising to $163 million in FY 2024-25. These costs are the result of investment and on-going maintenance by transmission service providers of the wholesale transmission grid that is coordinated by ERCOT. Operating and maintenance expenses, excluding power supply and regulatory pass-through costs, are forecasted to remain relatively flat throughout the five-year period with $496 million in projected costs by FY 2024-25. Annual debt service increases from $158 million in FY 2020-21 to $180 million in FY 2024-25. The net increase is attributed to financing the Capital Improvement Plan and defeasement of debt associated with the Fayette Power Plant. The General Fund transfer is $114 million for FY 2020-21, increasing to $125 million by FY 2024-25. Other City transfers and payments average $66 million per year over the time period, increasing from $59 million in FY 2020-21 to $74 million in FY 2024-25. $5 million is expected to be transferred to the Capital Reserve funds in FY 2020-21. Capital reserves are not expected to be fully funded during the five-year period. 2020-21 Proposed Budget, Austin, TX230Austin Energy Funds Five-Year Forecast ($ millions) Total Available Funds Total Requirements Balance Change 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 400 300 200 100 0 4.0% 2.0% 0.0% (2.0%) (4.0%) (6.0%) (8.0%) (10.0%) 1417.8 1437.0 1416.0 1421.1 1497.3 1615.0 1497.6 1512.9 1490.9 1489.5 1534.8 1537.6 FY20 Estimated FY21 Budget FY22 Projection FY23 Projection FY24 Projection FY25 Projection Capital Improvement Program (CIP) The Capital Improvement Program (CIP) includes the acquisition of Austin Energy’s new corporate headquarters building, a new warehouse facility, construction of two major district cooling plants, a new substation to serve the downtown load, and continued investments in the distribution and transmission systems to remain in compliance with all state and federal requirements. The five-year spending plan is projected at approximately $1.0 billion, with cash transfers to CIP averaging $60 million per year and totaling $298 million from FY 2020-21 to FY 2024-25. In general, approximately one-half of the five-year spending plan is cash-funded, including the proceeds from the sale of Austin Energy’s Town Lake Center. Austin Energy CIP Spend Plan ($ millions) 254.6 FY20 Budget 356.5 FY21 Budget 206.5 FY22 Plan 179.9 FY23 Plan 163.9 FY24 Plan 138.5 FY25 Plan Typical Ratepayer Austin Energy’s rates are composed of base rates and pass through rates. Base rates cover basic utility infrastructure such as power plants, distribution lines, customer service and the related operation and maintenance, which only change following a cost of service study. Pass-through rates cover power supply ‐ 2020-21 Proposed Budget, Austin, TX231costs, wholesale transmission costs, and certain costs incurred by the Utility on behalf of Austin Energy’s service area customers and the greater community. This charge is determined through the City budget process on an annual basis to reflect the actual cost. In FY 2020-21, the typical ratepayer, who is defined as a residential customer using 860 kWh per month, is projected to have a monthly bill of $84.60, prior to the update of any pass-through rates. By FY 2024- 25, the last year of the forecast, this will grow to $87.30. Austin Energy Typical Ratepayer Electric Utility Bill Typical Monthly Bill Change $90.00 $86.00 $82.00 $78.00 $74.00 $70.00 3.5% 2.0% 0.5% (1.0%) (2.5%) (4.0%) $88.05 FY20 Estimated $84.60 FY21 Budget $87.30 FY22 Projection $87.30 FY23 Projection $87.30 FY24 Projection $87.30 FY25 Projection The Typical Residential Monthly Bill reflects changes to the base rates only from FY 2019-20 through FY 2024- 25. The numbers do not reflect changes to the PSA, Regulatory Charge, or Community Benefit Charge since those are currently unknown. The FY 2019-20 Estimated Typical Residential Monthly Bill of $88.05 reflects the typical ratepayer prior to utility bill relief provisions passed by the Austin City Council on April 9, 2020 in response to COVID-19. Following these actions, the FY 2019-20 Typical Residential Monthly Bill was reduced to $84.60. 2020-21 Proposed Budget, Austin, TX232Major Revenue Sources Utility Charges Austin Energy’s rates are composed of base rates and adjustable or pass-through rates. Base rates cover basic utility infrastructure such as power plants, distribution lines, customer service, and related operation and maintenance expenditures. Adjustable rates cover costs which may be more variable and are assessed by others or provide additional services. Both base and adjustable rates vary slightly depending on whether a customer is located within or outside the city of Austin. Total revenue from Austin Energy utility charges is budgeted at $1.4 billion for FY 2020-21, an increase of $1.3 million, or 0.1%, over the FY 2019-20 Amended Budget. Austin Energy’s (AE) base rates, which consist of a fixed charge (Customer Charge), consumption-based charges (Energy Charge or ¢/kWh), and an electric delivery and demand charge (both $/kW), will not change in FY 2020-21. Base rates only change as a result of a cost of service study and rate change process. AE’s adjustable rates include the power supply adjustment (PSA), regulatory charge, and community benefit charges. These rates are reviewed and adjusted each year through the budgetary process to reflect the actual cost of these items and are applied to a customer’s consumption, or, in the case of the regulatory charge, the large commercial customers’ demand (kilowatt - kW) level, as measured in kilowatt-hours (kWh). The PSA recovers dollar-for-dollar net power supply (fuel) costs and is reflected as a line item on the electric portion of the bill. The PSA is typically adjusted beginning with November bills by utilizing actual costs from the most recent twelve-month period. This historical data is used to set the power supply adjustment for the next twelve-month period. However, historical data will never perfectly match future actual costs that the Utility incurs, so a true-up is included in the calculation. A true-up is an adjustment to rates by which under- recovered costs are collected by the Utility or over-recovered costs are returned to customers. The power supply adjustment is currently unchanged for FY 2020-21 from the FY 2019-20 rate, however, it may be adjusted prior to budget adoption pending additional data. The regulatory charge recovers, dollar for dollar, AE’s share of the statewide costs of managing and using the transmission grid, as well as its expansion and upkeep. It includes Electric Reliability Council of Texas (ERCOT) charges and fees that are based on AE’s share of the summer statewide peak demand, which is about four percent of the statewide total. Statewide transmission costs are reviewed, approved, and apportioned by the Public Utility Commission of Texas (PUCT). Other non-discretionary regulatory costs may also be included. Changes to the regulatory charge continue to be driven primarily by increases to the statewide transmission cost of service that is charged to all customers in the ERCOT region. Those costs have increased significantly in recent years due to the completion of the multi-year effort to improve the Texas transmission system and allow greater access to wind and solar resources in west Texas. The regulatory charge is also unchanged for FY 2020-21 from the FY 2019-20 rate following a mid-year reduction to the regulatory charge in April 2020 that provided customer bill relief in response to COVID-19. The Community Benefit Charge (CBC) recovers certain costs incurred by AE as a benefit to AE's customers across its entire service territory. There are three components of the community benefit charge: (1) funding to provide utility bill assistance, weatherization, and discounts through the Customer Assistance Program (CAP) for qualifying customers; (2) the cost of AE's distributed solar and Energy Efficiency Services (EES); and (3) the cost to provide Service Area Lighting (SAL) throughout the city of Austin. For customers outside the city of Austin, the CBC excludes the service area lighting component and the CAP component is reduced for residential customers. The community benefit charge is billed on a kWh basis to all customer classes and may be adjusted as costs change. Currently, Austin Energy is not proposing a change in these rates for FY 2020-21. However, they may be adjusted prior to budget adoption pending additional data. 2020-21 Proposed Budget, Austin, TX202The following table reflects the average residential customer bill impact for FY 2020-21. The FY 2019-20 versus FY 2020-21 rate comparison is based on an average residential customer using 860 kWh of energy. The pre-COVID-19 budget rate reflects the FY 2019-20 rate prior to April 9, 2020, when the City Council adopted various bill relief provisions to provide financial assistance to Austin Energy customers. The post- COVID-19 budget rate reflects the implementation of the bill relief provisions.   Average Residential Customer Bill Impact Unbundled 5-Tier Inclining Block Energy Rate (Inside City of Austin Customer) Average Monthly Energy Bill kWh FY 2019-20 Pre-COVID-19 Budget Rate FY 2019-20 Post-COVID-19 Budget Rate FY 2020-21 Budget Rate $ Change from Pre- COVID-19 % Change from Pre- COVID-19 Customer Charge $ 10.00 $ 10.00 $ 10.00 $ 0.00 0.0% Base Electricity Charge Power Supply Adjustment (PSA)* Community Benefit Charge (CBC) 860 $ 35.01 $ 35.01 $ 35.01 $ 0.00 0.0% 860 $ 27.00 $ 27.00 $ 27.00 $ 0.00 0.0% 860 $ 5.27 $ 5.27 $ 5.27 $ 0.00 0.0% Regulatory Charge 860 $ 10.77 $ 7.32 $ 7.32 ($ 3.45) (32.0%) Total Monthly Bill 860 $ 88.05 $ 84.60 $ 84.60 ($3.45) (3.9%) Total CAP Customer Discounted Bill 860 $ 69.06 $ 62.29 $ 62.29 ($6.77) (9.8%) Austin Water’s rates are based on cost allocations among customer classes in order to ensure that water and wastewater services are both self-sustaining and result in equitable cost recovery. In FY 2017-18, Austin Water completed an 18-month cost-of-service process, which included significant stakeholder participation in the review of Austin Water’s cost-of-service methodologies. At the culmination of this review, City Council approved a mid-year 4.8% system-wide retail customer rate reduction. Austin Water will continue to maintain the rates established during this process in FY 2020-21, with the exception of certain changes adopted in response to the COVID-19 pandemic. As a result of the pandemic, many customers are facing economic hardship, and stay-at-home orders have led to increased water usage by residential customers. In order to mitigate these impacts, on April 9th, 2020, City Council approved a 10-percent discount on Customer Assistance Plan (CAP) and non-CAP residential water (Tiers 1-3) and wastewater (Tiers 1-2) volume rates through October 31, 2020. This reduction led to residential customers seeing immediate savings on their water bills. With this Budget, Austin Water is extending the CAP customer 10-percent discount for the entirety of FY 2020-21, which will result in a $4.38 reduction in a CAP customer’s average monthly combined water and wastewater bill. The cost of this rate decrease will be covered by the Community Benefit Charge that applies to all other retail customers, which will remain unchanged in FY 2020-21. Total Austin Water FY 2020-21 revenue from rates and charges is projected to decrease by $9.2 million, or 1.6%, from FY 2019-20 budgeted levels.   2020-21 Proposed Budget, Austin, TX203Total by Strategic Outcome 1,368,366,982 1,473,799,065 1,436,978,231 1,415,371,288 1,421,075,073 AUSTIN ENERGY 2017-18 Actual 2018-19 Actual 2019-20 Estimated 2019-20 Amended 2020-21 Proposed 366,121 368,473 414,000 414,000 414,000 253,353,891 271,037,941 552,686,388 549,142,715 542,286,003 257,733,792 337,695,009 1,999,869 170,298,111 346,920,188 296,829,520 334,899,476 2,323,324 165,606,862 402,733,470 240,258,797 39,241,217 2,143,920 175,683,310 426,550,599 242,248,529 38,394,041 2,143,690 175,401,364 407,626,949 252,282,488 35,291,175 2,281,689 211,343,173 377,176,545 35,636,416 42,017,069 228,009,709 41,529,270 40,975,520 241,764,044 44,400,073 44,464,968 248,782,151 44,326,317 44,464,968 248,782,151 46,523,300 43,953,268 281,712,554 163,923,730 170,386,210 187,520,606 187,563,106 180,931,378 465,590,006 86,282,062 477,868,799 93,692,248 375,478,170 106,151,473 370,953,789 105,721,165 368,427,110 111,273,417 346,907,990 407,582,975 430,180,790 413,559,792 388,254,046 1,368,366,982 1,473,799,065 1,436,978,231 1,415,371,288 1,421,075,073 Operating Budget Expenditures by Strategic Outcome Culture and Lifelong Learning Economic Opportunity and Affordability Government that Works Health and Environment Mobility Safety Transfers and Debt Service Expenditure by Program Customer Care Customer Energy Solutions Electric Service Delivery Power Generation, Market Operations & Resource Planning Power Supply Support Services Transfers, Debt Service, and Other Requirements Total by Program Funding Sources Total Revenue Civilian FTEs Grant Awards 2 , Austin Energy Fund 1,417,562,470 1,469,798,754 1,417,767,037 1,414,686,235 1,416,019,238 1,417,562,470 1,469,798,754 1,417,767,037 1,414,686,235 1,416,019,238 1,749.00 1,774.00 1,784.00 1,784.00 1,813.00 5,000 906,000 0 825,000 0 2020-21 Proposed Budget, Austin, TX262AUSTIN ENERGY Appropriation Through 2019-20 2020-21 Appropriation Total Appropriation Expenditures Through 2019-20 2020-21 Spending Plan 2022-25 Spending Plan 0 0 0 0 398,400 2,135,000 0 2,848,120,783 0 179,500,000 0 3,027,620,783 128,000 2,217,787,344 304,000 355,818,252 228,000 686,494,140 2,848,120,783 179,500,000 3,027,620,783 2,217,915,344 356,520,652 688,857,140 262,942,379 0 262,942,379 156,202,665 91,025,000 42,500,000 979,166,548 126,500,000 1,105,666,548 894,687,366 114,275,842 364,625,464 86,565,624 669,495,130 485,565,087 297,713,638 66,672,377 0 44,700,000 8,300,000 0 0 86,565,624 714,195,130 493,865,087 297,713,638 66,672,377 48,773,421 537,716,148 444,309,610 111,130,601 25,095,532 24,082,494 72,816,948 15,613,763 33,374,498 5,332,107 22,073,825 94,417,653 54,527,997 90,089,788 20,622,413 Capital Budget Strategic Outcome Economic Opportunity and Affordability Health and Environment Government that Works Total Category Buildings and Improvements Distribution and Distribution Substations Information Technology Other Power Production Transmission Vehicles and Equipment Funding Source Total 2,848,120,783 179,500,000 3,027,620,783 2,217,915,344 356,520,652 688,857,140 Commercial Paper Current Revenue Multiple Funding Groups 385,298,772 783,888,361 1,678,933,650 75,900,000 103,600,000 0 461,198,772 887,488,361 1,678,933,650 208,474,249 415,465,649 1,593,975,445 48,706,380 150,294,438 157,519,834 12,294,894 196,202,465 480,359,781 Total 2,848,120,783 179,500,000 3,027,620,783 2,217,915,344 356,520,652 688,857,140 2020-21 Proposed Budget, Austin, TX263Austin Energy Capital Reserve Fund 2017-18 2018-19 2019-20 2019-20 2020-21 Actual Actual Estimated Amended Proposed Beginning Balance 12,410,739 42,847,923 68,986,845 68,847,923 69,986,845 Revenue Interest Total Revenue Transfers In Austin Energy Total Transfers In 437,184 1,138,922 1,000,000 1,000,000 1,000,000 437,184 1,138,922 1,000,000 1,000,000 1,000,000 30,000,000 25,000,000 30,000,000 25,000,000 5,000,000 5,000,000 Total Available Funds 30,437,184 26,138,922 1,000,000 1,000,000 6,000,000 Total Requirements Excess (Deficiency) of Total Available Funds Over Total Requirements Adjustment to GAAP Ending Balance 0 0 0 0 30,437,184 26,138,922 1,000,000 1,000,000 6,000,000 42,847,923 68,986,845 69,986,845 69,847,923 75,986,845 0 0 0 0 0 0 0 0 0 0 Note: Numbers may not add due to rounding. 2020-21 Proposed Budget, Austin, TX398Austin Energy Contingency Reserve Fund Beginning Balance 97,602,105 98,991,201 105,990,146 105,591,201 107,590,146 2017-18 2018-19 2019-20 2019-20 2020-21 Actual Actual Estimated Amended Proposed Total Available Funds 1,389,096 6,998,945 1,600,000 1,600,000 1,600,000 Revenue Interest Total Revenue Transfers In Austin Energy Total Transfers In Total Requirements Excess (Deficiency) of Total Available Funds Over Total Requirements Adjustment to GAAP Ending Balance 1,389,096 1,998,945 1,600,000 1,600,000 1,600,000 1,389,096 1,998,945 1,600,000 1,600,000 1,600,000 0 0 0 0 5,000,000 5,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,389,096 6,998,945 1,600,000 1,600,000 1,600,000 98,991,201 105,990,146 107,590,146 107,191,201 109,190,146 Note: Numbers may not add due to rounding. 2020-21 Proposed Budget, Austin, TX399Austin Energy Fund Beginning Balance Revenue Base Revenue Power Supply Revenue Community Benefit Revenue Regulatory Revenue Transmission Revenue Other Revenue Interest Income Total Revenue Total Available Funds Program Requirements 2017-18 2018-19 2019-20 2019-20 2020-21 Actual Actual Estimated Amended Proposed 370,751,398 431,443,231 413,409,738 364,417,031 394,198,544 629,312,889 455,306,962 53,901,735 131,450,234 78,616,166 57,500,126 11,474,358 628,594,026 494,847,147 50,117,379 123,695,001 81,733,749 73,716,611 17,094,843 628,486,091 426,505,530 61,674,235 138,055,199 84,317,165 64,644,138 14,084,678 630,361,573 421,981,148 61,284,808 138,012,724 84,317,165 64,644,138 14,084,678 630,532,538 419,011,440 56,477,345 140,841,730 86,229,397 73,720,823 9,205,964 1,417,562,470 1,469,798,754 1,417,767,037 1,414,686,235 1,416,019,238 1,417,562,470 1,469,798,754 1,417,767,037 1,414,686,235 1,416,019,238 Power Supply Recoverable Expenses Non-Fuel Operations and Maintenance Conservation Conservation Rebates Nuclear and Coal Plants Operating Other Operating Expenses Total Program Requirements 457,116,477 144,359,078 293,563,941 13,418,349 23,453,368 89,071,962 5,797,162 1,026,780,337 469,295,206 146,165,785 321,490,629 14,836,839 20,222,818 93,350,694 5,419,851 1,070,781,822 366,640,629 153,012,724 350,219,955 15,630,336 23,123,501 96,427,220 5,444,301 1,010,498,666 362,116,248 153,012,724 352,038,076 15,638,163 23,123,501 96,442,360 5,444,301 1,007,815,373 359,440,629 161,340,559 390,254,854 15,583,565 22,426,910 85,435,229 9,536,377 1,044,018,123 Other Requirements Accrued Payroll Total Other Requirements Debt Service Requirements General Obligation Debt Service Capital Lease Debt Service (Principal and Interest) Total Debt Service Requirements Transfers Out Electric Capital Improvement Program General Fund Contingency Reserve Fund Capital Reserve Power Supply Stabilization Reserve Voluntary Utility Assistance Fund Trunked Radio Workers' Compensation Administrative Support CTM Support Economic Development Fund All Other Transfers Total Transfers Out Total Requirements Excess (Deficiency) of Total Available Funds Over Total Requirements Note: Numbers may not add due to rounding. 529,847 529,847 1,377,289 1,377,289 573,267 573,267 573,267 573,267 642,116 642,116 19,824 131,106 90,992,083 91,143,013 58,667,247 109,000,000 0 25,939,482 5,000,000 1,435,625 547,625 1,842,174 26,025,231 8,663,171 6,872,809 5,920,424 249,913,788 11,060 65,777 131,637,674 131,714,511 66,629,448 110,000,000 0 29,385,258 10,000,000 600,000 836,653 1,676,513 28,929,319 10,038,245 8,535,853 3,294,155 269,925,444 876 125,209 151,091,594 151,217,679 102,249,936 111,000,000 0 0 0 5,600,000 892,059 1,514,778 29,544,635 11,224,739 9,069,619 3,592,853 274,688,619 1,152 125,209 153,921,915 154,048,276 80,495,689 111,000,000 0 0 0 5,600,000 892,059 1,514,778 29,544,635 11,224,739 9,069,619 3,592,853 252,934,372 3,990 125,209 157,967,358 158,096,557 39,902,889 114,000,000 0 5,000,000 0 600,000 954,138 1,415,955 31,303,352 13,185,223 8,367,233 3,589,487 218,318,277 1,368,366,982 1,473,799,065 1,436,978,231 1,415,371,288 1,421,075,073 49,195,488 (4,000,311) (19,211,194) (685,053) (5,055,835) Adjustment to GAAP Ending Balance 11,496,345 (14,033,182) 0 0 0 431,443,231 413,409,738 394,198,544 363,731,978 389,142,709 2020-21 Proposed Budget, Austin, TX400Austin Energy Power Supply Stabilization Reserve Fund Beginning Balance 90,239,164 96,585,311 108,631,430 108,085,311 110,081,430 2017-18 2018-19 2019-20 2019-20 2020-21 Actual Actual Estimated Amended Proposed Total Available Funds 6,346,147 12,046,119 1,450,000 1,000,000 1,400,000 Revenue Interest Total Revenue Transfers In Other Funds Total Transfers In Total Requirements Excess (Deficiency) of Total Available Funds Over Total Requirements Adjustment to GAAP Ending Balance 1,346,147 2,046,119 1,450,000 1,000,000 1,400,000 1,346,147 2,046,119 1,450,000 1,000,000 1,400,000 5,000,000 10,000,000 5,000,000 10,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,346,147 12,046,119 1,450,000 1,000,000 1,400,000 96,585,311 108,631,430 110,081,430 109,085,311 111,481,430 Note: Numbers may not add due to rounding. 2020-21 Proposed Budget, Austin, TX4014. The ratio of Debt Service to Total Expenditures (operating expenditures and debt service combined) shall not exceed approximately 20%. 5. Bond sales shall be structured to achieve level debt service payments. 6. Interest earnings from bond proceeds for general government projects (excluding projects for enterprise funds) shall be deposited in and retained by the debt service fund (preferred practice) unless otherwise required by bond ordinance or used to fund future CIP projects. 7. Timing of general obligation bond elections shall be determined by the inventory of current authorized unissued bonds remaining to be sold. An estimated two years of authorized unissued bonds shall remain before an election will be held. 8. The total dollar amount of bond election propositions recommended to the voters shall not exceed the City’s estimated ability to issue said bonds within a normal six-year period. 9. The use of reimbursement resolutions shall be encouraged as a cash management tool for general obligation debt funded projects. Reimbursement resolutions may be used for any project which is on the bond sale schedule or is revenue supported. 10. It is the City's priority to fund capital expenditures with cash or voter-approved debt. However, non- voter-approved debt may be used for capital expenditures as an alternative to lease/purchase or other financing options if the capital expenditure is:  Urgent;  Unanticipated;  Necessary to prevent an economic loss to the City;  Expected to results in an economic gain to the City within a reasonable time; or  Most effectively financed through non-voter approved debt. 11. The average maturity of non-voter approved debt shall not exceed the average life of the capital items 12. Capital items financed with non-voter approved debt shall have a value of at least $10,000 and a life financed. of at least four years. Austin Energy Financial Policies 1. The term of debt generally shall not exceed the useful life of the asset, and in no case shall the term exceed 30 years. 2. Capitalized interest shall only be considered during the construction phase of a new facility if the construction period exceeds seven years. The time frame for capitalizing interest may be three years but not more than five years. Council approval shall be obtained before proceeding with financing that includes capitalized interest. Note: Austin Energy does not use capitalized interest. 3. Principal repayment delays shall be one to three years, but shall not exceed five years. 5962020-21 Proposed Budget, Austin, TX4. Austin Energy shall maintain either bond insurance policies or surety bonds issued by highly rated (AAA) bond insurance companies, a funded debt service reserve, or a combination of both for its existing revenue bond issues, in accordance with the Combined Utility Systems Revenue Bond Covenant. 5. A debt service reserve fund shall not be required to be established or maintained for the Parity Electric System Obligations so long as the “Pledged Net Revenues” of the System remaining after deducting the amounts expended for the Annual Debt Service Requirements for Prior First Lien and Prior Subordinate Lien Obligations is equal to or exceeds 150% of the Annual Debt Service Requirements of the Parity Electric Utility Obligations. If the “Pledged Net Revenues” do not equal or exceed 150% of the Annual Debt Service Requirements of the Parity Electric Utility Obligations, then a debt service reserve fund shall be established and maintained in accordance with the Supplemental Ordinance for such Parity Electric System Obligations. 6. Debt service coverage of a minimum of 2.0x shall be targeted for the Electric Utility Bonds. All short- term debt, including commercial paper, and non-revenue obligations will be included at 1.0x. Note: Debt service coverage for the FY 2017-18 Budget is 4.1x. 7. Short-term debt, including commercial paper, shall be used when authorized for interim financing of capital projects and fuel and materials inventories. The term of short-term debt will not exceed five years. Both tax-exempt and taxable commercial paper may be issued in order to comply with the Internal Revenue Service rules and regulations applicable to Austin Energy. Total short-term debt shall generally not exceed 20% of outstanding long-term debt. 8. Commercial paper may be used to finance capital improvements required for normal business operation for electric system additions, extensions, and improvements or improvements to comply with local, State and Federal mandates or regulations. However, this shall not apply to new nuclear generation units or conventional coal generation units. Commercial paper will be converted to refunding bonds when dictated by economic and business conditions. Both tax-exempt and taxable refunding bonds may be issued in order to comply with the Internal Revenue Service rules and regulations applicable to Austin Energy. Commercial paper may be used to finance voter approved revenue bond projects before the commercial paper is converted to refunding bonds. 9. Ongoing routine, preventive maintenance should be funded on a pay-as-you-go basis. 10. Austin Energy shall maintain a minimum quick ratio of 1.50 (current assets less inventory divided by current liabilities). The source of this information should be the Comprehensive Annual Financial Report (CAFR). 11. Austin Energy shall maintain a minimum operating cash equivalent (also known as Working Capital) of 60 days of budgeted operations and maintenance expense, less power supply costs, plus the amount of additional monies required to bring the sum of all Austin Energy's reserves to no less than 150 days of operating and maintenance expense. 12. Net revenue generated by Austin Energy shall be used for General Fund transfers, capital investment, repair and replacement, debt management, competitive strategies, and other Austin Energy requirements. Once these obligations have been met, any remaining net revenues will be deposited in the following order into Austin Energy’s reserve funds until each reserve reaches its minimum funding level: Working Capital, Contingency Reserve, Power Supply Stabilization Reserve, and then Capital 5972020-21 Proposed Budget, Austin, TXReserve. The sum of the four reserves shall be the cash equivalent of no less than 150 days of operating and maintenance expense. 13. The General Fund transfer shall not exceed 12% of Austin Energy three-year average revenues less power supply costs and on-site energy resource revenue, calculated using the current year estimate and the previous two years’ actual revenues less power supply costs and on-site energy resource revenue from the City's CAFR. 14. Capital projects should be financed through a combination of cash, referred to as pay-as-you-go financing (equity contributions from current revenues), and debt. An equity contribution ratio between 35% and 60% is desirable. 15. The Capital Reserve shall be created and established for providing extensions, additions, replacements, and improvements to the electric system. The Capital Reserve shall maintain a minimum cash equivalent of 50% of the previous year's electric utility depreciation expense. 16. The Contingency Reserve shall be created and established for unanticipated or unforeseen events that reduce revenue or increase obligations, such as costs related to a natural disaster, extended unplanned plant outages, insurance deductibles, or unexpected costs created by Federal or State legislation. The Contingency Reserve may be used to fund unanticipated power supply expenses only after the Power Supply Stabilization Reserve has been fully depleted. The Contingency Reserve shall maintain an operating cash equivalent of 60 days of budgeted operations and maintenance expense, less power supply costs. In the event any portion of the Contingency Reserve is used, the balance will be replenished to the targeted funding level within two fiscal years. 17. Electric rates shall be designed to generate sufficient revenue, after consideration of interest income and miscellaneous revenue, to support (1) the full cost (direct and indirect) of operations including depreciation, (2) debt service, (3) General Fund transfer, (4) equity funding of capital investments, (5) requisite deposits of all reserve accounts, (6) sufficient annual debt service requirements of the Parity Electric Utility Obligations and other bond covenant requirements, if applicable, and (7) any other current obligations. In addition, Austin Energy may recommend to Council in the budget directing excess net revenues for General Fund transfers, capital investment, repair and replacement, debt management, competitive strategies and other Austin Energy requirements such as working capital. In addition to these requirements, electric rates shall be designed to generate sufficient revenue, after consideration of interest income and miscellaneous revenue, to ensure a minimum debt service coverage of 2.0x on electric utility revenue bonds. A rate adequacy review shall be completed every five years, at a minimum, through performing a cost of service study. 18. A decommissioning trust shall be established external to the City to hold the proceeds for monies collected for the purpose of decommissioning the South Texas Nuclear Project. An external investment manager may be hired to administer the trust investments. 19. The master ordinance of the Parity Electric System Obligations does not require a debt service reserve fund. Austin Energy will maintain a minimum of unrestricted cash on hand equal to six months debt service for the then outstanding Parity Electric System Obligations. 20. Current revenue, which does not include the beginning balance, will be sufficient to support current expenditures (defined as “structural balance”). However, if projected revenue in future years is not sufficient to support projected requirements, ending balance may be budgeted to achieve structural balance. 5982020-21 Proposed Budget, Austin, TX21. A Non-Nuclear Plant Decommissioning Fund shall be established to fund plant retirement. The amount set aside will be based on a decommissioning study of the plant site. Funding will be set aside over a minimum of four years prior to the expected plant closure. 22. The Power Supply Stabilization Reserve shall be created and established for mitigating power supply cost volatility which causes frequent variation in the Power Supply Adjustment. The Power Supply Stabilization Reserve shall maintain a cash equivalent of 90 days of net power supply costs. Net power supply costs shall be defined as costs eligible for inclusion in the Power Supply Adjustment. The Power Supply Stabilization Reserve shall be funded using net revenues after meeting other obligations and consistent with the flow of funds schedule. Austin Water Financial Policies 1. The term of debt generally shall not exceed the useful life of the asset, and shall not generally exceed 2. Capitalized interest shall only be considered during the construction phase of a new facility if the construction period exceeds seven years. The time frame for capitalizing interest may be three years but not more than five years. Council approval shall be obtained before proceeding with a financing that includes capitalized interest. 3. Principal repayment delays on revenue bonds shall be one to three years, but shall not exceed five 30 years. years. 4. Each utility shall maintain a fully funded debt service reserve for its existing revenue bond issues and future issues, in accordance with the Combined Utility Systems Revenue Bond Covenant. 5. Debt service coverage of at least 1.50x shall be targeted. 6. Short-term debt, including tax-exempt commercial paper, shall be used when authorized for interim financing of capital projects. The term of short-term debt shall not exceed five years. Commercial paper will be converted to refunding bonds when appropriate under economic and business conditions. Total short-term debt shall generally not exceed 20% of outstanding long-term debt. 7. Commercial paper may be used to finance new water and wastewater plants, capital expansions, and growth-related projects as well as to finance routine capital improvements required for normal business operation. Commercial paper for the necessary amount may also be used to finance improvements to comply with local, State and Federal mandates or regulations. 8. Capital improvement projects for new water and wastewater treatment plants, capital expansions, and growth-related projects that are located in the Drinking Water Protection Zone (DWPZ) will be identified and submitted, as part of the annual budget process, to the following Boards and Commissions: Water and Wastewater Commission, Resource Management Commission, Environmental Board, Planning Commission, and the Zoning and Platting Commission. These Boards and Commissions will review growth-related DWPZ capital projects spending plans, obtain Board and Commission and citizen input, review consistency with Imagine Austin Comprehensive Plan, review effect on growth within the DWPZ, and make recommendations on project approval for inclusion in Austin Water's five-year capital spending plan. 5992020-21 Proposed Budget, Austin, TXAnnual Bond Sales The City Financial Policies include policies regarding remaining authorized but unissued general obligation bonds and the timing of bond elections. An estimated two years of authorized but unissued bonds shall remain before an election will be held. In addition, the total dollar amount of bond election propositions recommended to the voters shall not exceed the city’s estimated ability to issue the bonds within a six year period. This six year period was recommended by the Council’s Audit and Finance Committee on June 24, 1998 and is included in the City’s Financial Policies. These policies will assist the City in completing projects approved by the voters in a reasonable amount of time. $ 167,834,000 139,547,000 28,554,000 15,403,000 Transportation/Street Improvements Parks and Recreation Public Safety Health and Human Services Flood Mitigation, Open Space, Water Quality Protection Cultural Arts & Library Affordable Housing Mobility Authorized but Unissued GO Bonds 1 As of September 30, 2020 2 Brackenridge 2000 bond authority of $9,215,000 is excluded due to the lease of hospital to Seton. Financial Policies  147,150,000 130,697,000 215,095,000 574,500,000 $1,418,780,000 1 2 Total Financial policies adopted by the City Council guide the City's debt management. Discussion and status of selected policies are summarized in the following graphs. The ratio of GO net debt to total assessed valuation shall not exceed 2%. This ratio is calculated by dividing GO debt (net of debt service fund balance and self-supporting debt) by total assessed valuation. As of September 30, 2019, this ratio was 0.97% which is below the 2% policy requirement. GO Net Debt as a Percent of Assessed Valuation Austin Financial Policy GO Debt   5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6052020-21 Proposed Budget, Austin, TXAustin Energy Debt service coverage of a minimum of 2.0x shall be targeted. The anticipated debt service coverage ratio for FY 2020-21, on a budgetary basis, is 2.45x. Total FY 2020-21 Proposed Revenue Less: $ 1,416,019,237 Power Supply Recoverable Expenses Non-Fuel O&M Conservation Conservation Rebates & Incentives Nuclear & Coal Operating Other Operating Expenses $ 359,440,629 161,340,559 389,913,177 15,407,803 22,426,910 85,435,229 Net Revenue Total Debt Service Requirement Debt Service Coverage Ratio 6,203,827 1,040,168,134 375,851,103 153,103,902 2.45 Note: The actual debt coverage calculation will be performed according to rate covenants included in the Official Statements of those bonds backed by Austin Energy revenue. Austin Water  Debt service coverage of at least 1.50x shall be targeted. The anticipated debt service coverage ratio for FY 2020-21, on a budgetary basis, is 1.85x. Total FY 2020-21 Proposed Revenue Less: $ 590,047,755 Operating Expenses Administrative Support CTM Support Economic Development Workers' Compensation Regional Radio System CTECC Fund $ 255,503,193 13,941,752 3,789,969 3,988,826 966,723 500,599 19,834 Net Revenue Total Debt Service Requirement Debt Service Coverage Ratio 278,710,896 311,336,859 168,291,370 1.85 Note: The actual debt coverage calculation will be performed according to rate covenants included in the Official Statements of those bonds backed by Austin Water revenue. 6062020-21 Proposed Budget, Austin, TXFY 2020-21 Fee Schedule Austin Energy Concessions/Sales Shirts- Denim Shirts- Moonlight Tower Shirts- Polo Austin Energy Logo Items (available for AE employees only) Existing Facilities/Construction/Right of Way Fees Construction/Installation Installation of and Billing for Meter Totalization AE Specialty Metering Costs Note Fee $19.00 $10.55 $22.00 cost plus 15% at estimated cost Except when required by Austin Energy. After Hours Outage Requested by customer outside of normal working hours. Normal working hours 8 a.m. to 4 p.m. Monday through Friday, excluding City recognized holidays. Up to 2 hours $800.00 Each Additional Hour Constructing Electrical Facilities for Primary Metered Customers Constructing Overhead Distribution or Secondary Circuits to Underground (or vice versa) Distributed Resource Interconnect Study Fee Dual Feed Service $400.00 $6,000.00 cost plus 15% cost plus 15% per site per MW MVA per month Capacity Reservation & Maintenance Fee Unless customer is served under the State of Texas Large Service Contract, Primary Voltage >3 MW or High Load Factor Transmission Voltage rates. Customer Requested Changes to the Initial Assessment Facilities Design and Construction Initial Assessment Fee cost plus 15% per change $6,000.00 $2,000.00 $1,600.00 per site Excess Facilities Customer requested work beyond the standard of service delivery required of AE, and that is only performed by AE on our electric system. Hit and Damaged Pad Mount Transformer Hit and Damaged Streetlight Pole Hit and Damaged Utility Pole Impacted Streetlight Pole (without replacement) Impacted Utility Pole (without replacement) Installing Customer Conduit in the Vicinity of Austin Energy Facilities New Banner Linker Locations New Banner Site Evaluations $9,430.00 $8,670.00 $5,400.00 $6,040.00 $11,500.00 $13,460.00 $1,150.00 $1,345.00 per pole per pole $925.00 $75.00 $540.00 $600.00 cost plus 15% cost plus 15% 2020-21 Proposed Budget, Austin, TX667FY 2020-21 Fee Schedule Austin Energy Re-inspection Fee for Conduit in the Vicinity of Austin Energy Facilities Relocating Existing Distribution or Secondary Circuits Repair to Damaged Austin Energy Facilities Setting and Removing Single-Phase Voltage Recorder Setting and Removing Three-Phase Voltage Recorder Special Locates of Underground AE Electric Facilities Construction Loop Service Temporary Construction / Homebuilders Loop Transformer Oil Testing (secondary pad mounted only) Each Additional Hour Each Additional Hour Professional Services/Analysis Tree Trimming Consultation AE Field Operations Consultation AE Technology Fee Board of Adjustment Review Building Service Planning Application Review Commercial Quick Turnaround Review Design Consultation Research Real Estate Easements and Maps Site Plan Exemption/Correction Review Site Plan Review Special Events Commercial Film/Advertisement Productions 1 Day 2 Day 3 Days or More 1 Day 2 Day 3 Days or More Production Days: Working Power Plant or Hazardous Facility (interior) Security or AE Personnel Costs (in excess of 10 hours/day) Site Modifications / Returning Site to Prior Conditions Note cost plus 15% direct cost plus overhead/g&a up to 2 hours at estimated cost per transformer, first 2 hours $100.00 $165.00 per hour per review per hour per hour plus expenses Fee $75.00 $150.00 $200.00 $250.00 $125.00 $265.00 $800.00 $150.00 $4.00 $262.00 $100.00 $100.00 $165.00 $75.00 $100.00 $162.00 $2,000.00 $1,000.00 $700.00 $2,500.00 $1,500.00 $1,000.00 per day per day per day per day per day per day per day at cost at cost Non-Shooting Days: Set Preparation, Set Strike Production Days: Working Power Plant or Hazardous Facility (exterior) and Other AE Facilities (interior or exterior) $500.00 2020-21 Proposed Budget, Austin, TX668FY 2020-21 Fee Schedule Austin Energy Public Service Announcements, Documentaries & Student Film Productions Note per project Utility Charges/Rates Cell Tower and Other Transmission and Substation Services Annual Usage and Occupancy Charge Austin Energy Support Personnel and Engineers (Internal) Building Rooftop Fee Engineering / Design (External) Equipment Upgrade Filing Fee Escort for high voltage/secure areas Field Work / Construction / Site Maintenance (External) Field Work / Construction / Site Maintenance (Internal) Ground Space Fee High Voltage Clearance Lose of Use Fee New Site Filing Fee Vehicle / Equipment Use (Internal) Vehicle / Equipment Use (external) Customer Call Center Fee $100.00 $100.00 $2,000.00 $50.00 $400.00 $1,800.00 per contract direct costs plus overhead/g&a per square foot direct costs plus 15% direct costs plus overhead/g&a direct costs plus 15% direct costs plus overhead/g&a per square foot per hour direct costs direct costs plus 15% $25.00 Account Records Fee To research and or compile customer records, account information or billing information. Automated Meter Opt Out (monthly manual read fee) Automated Meter Opt Out (switch to manual meter) Broken Seal Fee To replace a broken meter seal; charged to the customer who could reasonably be expected to benefit from service received through the meter. Construction Loop Fee To install an electric meter for construction purposes only. Continuous Service Program Disconnect Fee To disconnect service at the meter for owners and apartment managers participating in the continuous service program. Continuous Service Program Initiation Fee $10.00 $75.00 $55.00 per disconnect per hour $25.00 $20.00 $20.00 per unit, one-time charge upon joining the program For owners and apartment managers to enroll in the continuous service program. 2020-21 Proposed Budget, Austin, TX669Austin Energy Fee Note FY 2020-21 Fee Schedule $25.00 Customer Requested Meter Test Fee To test a meter upon a customer's request when a test at the address was performed during the preceding 36 months & over-registration is not in excess of industry standards. Initiation Fee To initiate new utility service; except for participants in the continuous service program. Meter Tampering Fee Tampered meters / Customer Initiated Unsafe Conditions - Residential Meter Tampering Fee Tampered Meters / Customer Initiated Unsafe Conditions - 3 Phase Non-Residential Meter Tampering Fee Tampered Meters / Customer Initiated Unsafe Conditions - 1 Phase Non-Residential Meter Tampering Fee Require 90-days worth of $2,400.00 $3,700.00 $850.00 $20.00 usage deposit Tampering Fee for Repeaters Non-Scheduled Disconnect (non-emergency) Trips requested by customers for emergency service disconnections that are determined to be non-emergency by an AE employee responding to the request. Re-Initiation of Service Fee To re-initiate utility service at an address where a customer had previous service at the same address. Return Trip/Customer Initiated Trip Fee For: 1) Follow-up trips required due to customer and or electricians actions that prevent AE from completing scheduled work on the first trip. 2) Trips requested by customers and or electricians for service problems that are determined not to be the responsibility of AE. Returned Payment Fee To process account payments that are returned, dishonored or denied by a bank, lender or third party payer. Utility Charges $250.00 $300.00 $250.00 $25.00 $30.00 1 Phase Meter Automated Meter (using radio wave transmission) Broken Glass Broken Test Seal Burnt Meter Blocks - 1 Burnt Meter Blocks - 2 Damaged A-Base Adapter Damaged Lid direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% 2020-21 Proposed Budget, Austin, TX670Austin Energy Fee Note FY 2020-21 Fee Schedule Damaged Lock Damaged Lockring Damaged Meter Base Damaged Sealing Ring Latch Kit Meter Can Meter Test and Repairs Missing Blank Off Other Utility Diversion Charges Distribution Design Additional Electric Facility Design(s) Due to Customer Changes Prepare Customer Requested Cost Estimates for: New Install Large Commercial or Subdivision (over 350 amps) Single Resident Small Commercial or Subdivision (under 350 amps) Overhead to Underground Conversion Maximum Per 300ft Relocations Overhead Underground Service Upgrades Large Commercial or Subdivision (over 350 amps) Single Resident Small Commercial or Subdivision (under 350 amps) Infrastructure Rental Engineering / Design (External) Engineering / Design (Internal) Field Work / Construction / Site Maintenance (External) Field Work / Construction / Site Maintenance (Internal) Make Ready Assessment / Inspection (External) Make Ready Assessment/Inspection (Internal) Pole Attachments Annual Usage and Occupancy Charge direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% direct costs plus 15% cost plus 15% per design per removed pole per 300 ft direct costs plus 15% direct costs plus overhead/g&a direct cost plus 15% direct costs plus overhead/g&a direct costs plus 15% direct costs plus overhead/g&a per contract $200.00 $30.00 $100.00 $500.00 $75.00 $25.00 $75.00 $100.00 $15.00 $25.00 2020-21 Proposed Budget, Austin, TX671FY 2020-21 Fee Schedule Pole Attachment Filing Fee Small Cell Networks – Network Node Application Fee Austin Energy Additional Node Node Pole Transferring Licensee's Attachments (External) Transferring Licensee's Attachments (Internal) Vehicle / Equipment Use (External) Vehicle / Equipment Use (Internal) Service Extensions / Switchovers Customer Switchover Wireless Attachments to Streetlighting (or other non-distribution service poles) Attachments to distribution poles will be billed at the FCC calculated rate. Fee $25.00 $500.00 $250.00 $1,000.00 $20.00 for the first five network nodes on an application each, up to 30 per application direct costs plus 15% direct costs plus overhead/g&a direct cost plus 15% direct cost Note per pole each per year at cost For customers in a dually certified area all costs of disconnecting service shall be paid in advance of switchover, and customers must pay all current balances owed. Distributed Generation Application Fee Distributed Generation Inspection Fee - Residential Electric Service Application Fee Line Extension Fee (facilities to establish new service) $100.00 $150.00 $100.00 at estimated cost Utility Information Austin Analytical Services Austin Analytical laboratory services can benefit other customers as well as the City of Austin. The laboratory is equipped to provide PCB, lead, asbestos, and other environmental and analytical testing to customers. Construction/Installation This service consists of pole or tower construction and conduit installation for electric or communications companies. Distributed Generation This service provides on-site analysis for large industrial or commercial customers to assess opportunities for on-site electrical generation for these customers for peak shaving or emergency outage situations. If circumstances for on-site generation are favorable, Austin Energy may provide or assist customers in obtaining distributed generation equipment. Austin Energy may own, operate, and/or maintain such equipment. 2020-21 Proposed Budget, Austin, TX672FY 2020-21 Fee Schedule Austin Energy Fee Note District Heating and Cooling Service Austin Energy may provide district cooling service to customers under long-term service contracts. A contract shall be required to receive service, and Austin Energy may enter into such contracts to the extent system capacity is available. The customer’s capacity and consumption charges shall be determined by the utility and imposed to recover connection costs over a period not to exceed fifteen-years; capital costs and a rate of return; fixed and variable operation, maintenance, replacement, power, and administrative costs, both specific to the customer and attributable to the customer’s proportionate share of over-all system cost-of-service. Additional Meter Fee - On-Site Energy Resources - Domain Additional Meter Fee - On-Site Energy Resources - Downtown Additional Meter Fee - On-Site Energy Resources - MEC Customer Data Link Rental Fee - On-Site Energy Resources - Domain Customer Data Link Rental Fee - On-Site Energy Resources - Downtown Customer Data Link Rental Fee - On-Site Energy Resources - MEC ECAD Data Reporting Fee - On-Site Energy Resources - Domain ECAD Data Reporting Fee - On-Site Energy Resources - Downtown ECAD Data Reporting Fee - On-Site Energy Resources - MEC Inspection Fee - On-Site Energy Resources - Domain Load Profile Reporting Fee - On-Site Energy Resources - Domain Load Profile Reporting Fee - On-Site Energy Resources - Downtown Load Profile Reporting Fee - On-Site Energy Resources - MEC Reconnect Fee - On-Site Energy Resources - Domain Reconnect Fee - On-Site Energy Resources - Downtown Reconnect Fee - On-Site Energy Resources - MEC $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $25.00 $25.00 $25.00 $250.00 $25.00 $25.00 $25.00 $500.00 $500.00 $500.00 per month per month per month per month per month per month per month per month per month per additional visit after the first two inspections first two inspections first two inspections per month per month per month per occurence per occurence per occurence Inspection Fee - On-Site Energy Resources - Downtown $250.00 per additional visit after the Inspection Fee - On-Site Energy Resources - MEC $250.00 per additional visit after the Educational Services This service provides information and education on utility and competitive issues such as safety, power quality, planning, and energy services. Electric Reliability Council of Texas Wholesale Market Services These services may be offered to eligible parties desiring to participate in the Electric Reliability Council of Texas (ERCOT) wholesale market. Austin Energy is currently registered as a Qualified Scheduling Entity in ERCOT and, as such, may provide scheduling, dispatching, communication, and a broad range of other services related to the ERCOT wholesale market. 2020-21 Proposed Budget, Austin, TX673FY 2020-21 Fee Schedule Austin Energy Fee Note Energy Management Services Services include energy audits, feasibility studies, cost estimates, project management, providing, installing, and/or maintaining energy- efficient equipment, and arranging for project financing for governmental, commercial, and industrial customers. Green Building Program The Green Building Program is a voluntary building rating system that encourages environmentally sound building, remodeling, and building maintenance practices. This program includes those services connected with providing “green building” practices: professional consulting, educational and informational “green building” services, and marketing of the same, all connected with providing and promoting environmentally sound building practices and systems (“green building”). Green Building services are available to individuals and business outside the City of Austin’s electric service area as well to businesses within the service area boundary. Lighting Products and Services This service includes the supply and installation of lights or poles for commercial facilities and residences. Lights and poles may be owned and maintained by the Utility. Maintenance Contracts for Customer-Owned Medium-Voltage Equipment This service provides specific maintenance contracts for customers requesting assistance in repairing or providing maintenance on medium- voltage equipment (over 600 volts). A maintenance contract will be prepared for each customer. Power Quality or Reliability Contracting This service provides contracts to improve customer power quality or reliability through the sale, lease, installation and maintenance of electrical devices. The final product or service offering will be based on that customer's specific needs. 2020-21 Proposed Budget, Austin, TX674Austin Energy Fee Note FY 2020-21 Fee Schedule Pricing Guidelines for Electric Utility Products and Services The pricing of electric products and services shall be derived from a competition-based pricing strategy. Competition-based pricing, also known as going-rate pricing, shall correlate prices for Austin Energy electric utility products and services to those of competitors for like goods and services in Austin, Texas or similar marketplaces. By including market-based surveys in the pricing process, competition based pricing includes within the pricing calculation the consumer’s perception of the value of the product or service. The competition-based prices for products and services shall be selected by combining two standard pricing data sets and using pricing based on marginal cost. (1) The first pricing data set is the price range between the average lowest and average highest prices of the product or service. This price range shall be determined by researching the prices of the product or service in the current marketplace. Both internal and external market price surveys may be used. This range becomes the competition-based price range as established by competition in the market place. (2) The second pricing data set is the internally computed marginal cost of the product or service. Marginal cost is calculated by combining the determined total fixed and total variable costs to establish the floor of the profit margin. (3) The final price of the product or service shall not be offered below the marginal cost of the product or service and must be within the determined competition-based price range. (4) Calculation of the final price shall assume a product life cycle (to be determined for each product) for the purposes of determining the number of units or amount of service that will be sold. (5) The final price for a particular product or service shall be a ratio of the sum of the marginal cost and targeted profit to the anticipated number of units to be sold. Competition-based pricing assumes that the selected price represents the collective pricing wisdom of the electric utility product and service marketplace. It reflects a price that affords a fair profit in a competitive marketplace. Pulse Metering, Submetering, and Interval Load Data Services This service provides installation of pulse metering, submetering, or interval load data recorders at a customer’s facility, and electronic collection of relevant data from a customer’s facility, and provides customers with timely operating data to assist with the efficient operation of its equipment and facility. Surge Protection This service provides whole building and point-of-use surge protection from voltage spikes. These products will be suitable for residential and commercial establishments. Customers have the option of choosing either whole building surge protection installed at the meter or high quality surge protection strips for individual or grouped devices, or both. 2020-21 Proposed Budget, Austin, TX675CITY OF AUSTIN – ELECTRIC RATE SCHEDULES City of Austin Fiscal Year 2021 Electric Tariff Approved by the Austin City Council FY 2018 Tariff 0 2020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF TABLE OF CONTENTS Residential Service ....................................................................................................................... 3 General Service ............................................................................................................................ 5 Secondary Voltage (Demand less than 10 kW) ................................................................................. 6 Secondary Voltage (Demand greater than or equal to 10 kW but less than 300 kW) ....................... 7 Secondary Voltage (Demand greater than or equal to 300 kW) ........................................................ 8 Large General Service ................................................................................................................. 9 Primary Voltage (Demand less than 3,000 kW) .............................................................................. 10 Primary Voltage (Demand greater than or equal to 3,000 kW and less than 20,000 kW) .............. 10 Primary Voltage (Demand greater than or equal to 20,000 kW) ..................................................... 11 High Load Factor Primary Voltage (Demand greater than or equal to 20,000 kW) ....................... 12 Transmission Service ................................................................................................................. 14 Transmission Voltage ...................................................................................................................... 15 High Load Factor Transmission Voltage (Demand greater than or equal to 20 MW) .................... 15 Lighting ....................................................................................................................................... 18 Customer-Owned, Non-Metered Lighting ...................................................................................... 18 Customer-Owned, Metered Lighting ............................................................................................... 18 City of Austin - Owned Outdoor Lighting ...................................................................................... 19 Service Area Lighting ..................................................................................................................... 19 Power Supply Adjustment ........................................................................................................ 20 Community Benefit Charge ...................................................................................................... 22 Regulatory Charges ................................................................................................................... 24 Standby Capacity ....................................................................................................................... 25 Rider Rate Schedules ................................................................................................................. 26 GreenChoice® Rider ....................................................................................................................... 27 Value-Of-Solar Rider ...................................................................................................................... 29 © 2018 Austin Energy i 8352020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF Community Solar Rider ................................................................................................................... 30 Load Shifting Voltage Discount Rider ............................................................................................ 31 Electric Vehicle Public Charging .................................................................................................... 32 Pilot Programs ............................................................................................................................ 33 Residential Service .......................................................................................................................... 33 Time-Of-Use Rate .............................................................................................................. 34 EV360℠ Plug-In Electric Vehicle Charging Subscription .................................................................. 34 Commercial Service ........................................................................................................................ 36 Fleet and Public Electric Vehicle Charging ....................................................................................... 36 State of Texas Contract Service ................................................................................................ 38 Appendices .................................................................................................................................. 40 Appendix A ..................................................................................................................................... 40 Non-Demand Value-Of-Solar Assessment ......................................................................... 40 Historical Values ................................................................................................................ 41 Appendix B ...................................................................................................................................... 41 Demand Value-Of-Solar Assessment: Capacity less than 1,000 kW-ac ............................ 41 Appendix C ...................................................................................................................................... 42 Demand Value-Of-Solar Assessment: Capacity greater than or equal to 1,000 kW-ac ..... 42 Glossary of Terms ...................................................................................................................... 43 © 2018 Austin Energy ii 2020-21 Proposed Budget, Austin, TX8362020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF Residential Service Application: Applies to all electric service for domestic purposes in each individual metered residence, apartment unit, mobile home, or other residential dwelling unit as classified by City Code or Ordinance whose point of delivery is at secondary voltage less than 12,470 volts nominal line to line located within the limits of Austin Energy’s service territory. The rate tables below reflect rates with effective dates of November 1, 2020. The appropriate General Service schedule applies where a portion of the dwelling unit is used for either: a) conducting a business, or other non-domestic purposes, unless such use qualifies as a home occupation pursuant to City Code Chapter 25-2-900 or the dwelling unit is classified as a residential shop house under City Code or Ordinance, or b) for separately-metered uses at the same premises, including, but not limited to: water wells, gates, barns, garages, boat docks, pools, and lighting. Character of Service: Service is provided under this rate schedule pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and allow reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this schedule are unaffected by the application of any rider. For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Discounts: Residential customers who receive, or who reside with a household member who receives, assistance from the Comprehensive Energy Assistance Program (CEAP), Travis County Hospital District Medical Assistance Program (MAP), Supplemental Security Income Program (SSI), Medicaid, Veterans Affairs Supportive Housing (VASH), the Supplemental Nutritional Assistance Program (SNAP), the Children’s Health Insurance Program (CHIP), or the Telephone Lifeline Program are eligible for a discount under the Customer Assistance Program (CAP). Initially, all eligible residential customers will be automatically enrolled in the discount program through a third-party matching process, with self-enrollment available directly through Austin Energy. For self- enrollment, the residential customer will provide documentation to show the household currently receives the approved assistance programs listed above or that demonstrates the household income is at or below the 200 percent of the Federal Poverty Level (FPL) guidelines. Eligible customers will be removed from the discount program in the following situations: 1) the customer’s improvement homesite value, as most recently evaluated by the appropriate appraisal district, is equal to or greater than $250,000.00, and household income is greater than 200 percent of the FPL guidelines; or 2) the customer owns two or more properties within the Austin Energy service territory, © 2018 Austin Energy 3 8372020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF and household income is greater than 200 percent of the FPL guidelines. In either situation, the eligible customer must provide sufficient information to enable Austin Energy to verify that the household income is at or below 200 percent of the FPL guidelines. Customers enrolled in the discount program are exempt from the monthly Customer Charge and the CAP component of the Community Benefit Charge and shall receive a 10 percent bill reduction on kilowatt- hour-based charges. Customers enrolled in the discount may be eligible for bill payment assistance through arrearage management. Additionally, customers in the discount program, as well as other low income and disadvantaged residential customers, may be eligible for bill payment assistance through Plus 1and for free weatherization assistance. Rider Schedules: Service under this rate schedule is eligible for application of GreenChoice® Rider, Community Solar Rider, and Non-Demand Value-Of-Solar Rider. Customer receiving service under the Community Solar Rider cannot combine services with either the Non-Demand Value-of-Solar Rider or GreenChoice® Rider. Inside City Limits Outside City Limits This is the default rate option under this schedule. Basic Charges ($/month) Customer Delivery Energy Charges ($/kWh) 0 – 500 kWh 501 – 1,000 kWh 1,001 – 1,500 kWh 1,501 – 2,500 kWh Over 2,500 kWh Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kWh) Billed kWhs $10.00 $0.00 $0.02801 $0.05832 $0.07814 $009314 $0.10814 $0.00154 $0.00124 $0.00335 $10.00 $0.00 $0.03700 $0.05600 $0.07868 $0.07868 $0.07868 $0.00106 $0.00000 $0.00335 $0.03139 $0.03139 $0.00851 $0.00851 © 2018 Austin Energy 4 8382020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF General Service Application: Applies to all metered, non-residential secondary voltage electric service whose point of delivery is located within the limits of Austin Energy’s service territory. These rates apply to secondary voltage less than 12,470 volts nominal line to line. The rate tables below reflect rates with effective dates of November 1, 2020. Character of Service: Service is provided under these rate schedules pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this are unaffected by the application of any rider All demand (kW) is referred to as “Billed kW” and shall be measured as the metered kilowatt demand during the fifteen-minute interval of greatest use during the billing month as determined by Austin Energy’s metering equipment and adjusted for power factor and load factor corrections. When power factor during the interval of greatest use is less than 90 percent, as determined by metering equipment installed by Austin Energy, the Billed kW shall be determined by multiplying metered kilowatt demand during the fifteen-minute interval of greatest use by a 90 percent power factor divided by the recorded power factor, rounded to the nearest hundredth, during the interval of greatest use. For example, the metered kilowatt demand during the fifteen-minute interval of greatest monthly use is 13.5 kW, and the power factor during the fifteen-minute interval of greatest monthly use is 86.7 percent; therefore, the Billed kW equals 14.0 kW (13.5 kW x 0.90 / 0.87 power factor). For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Discounts: For any Independent School District, Military base as outlined in the Public Utility Regulatory Act §36.354, or State facilities, the monthly customer-, delivery-, demand-, and energy-charges billed pursuant to these rate schedules will be discounted by 20 percent; all other electric charges will be billed pursuant to these rate schedules and will not be discounted. Electric service provided to a “religious sanctuary,” a permanent or temporary building or facility that is primarily used for regular, organized group religious worship services that are open to the public, is eligible for the House of Worship Discount. To be eligible for the House of Worship Discount, a customer must be a tax-exempt 501(c)(3) organization for federal tax purposes and a tax-exempt religious organization under Sections 151.310, 156.102 and 171.058 of the Texas Tax Code. The House of Worship Discount is not available for electric © 2018 Austin Energy 5 8392020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF service provided to any school, educational facility, community recreational facility, child care facility, dormitory, residence, lodge, parking facility, gymnasium, meeting hall, office or event center. For a customer eligible for the House of Worship Discount, Billed kW shall be the kilowatt demand during the fifteen-minute interval of greatest use during weekdays, excluding weekends, during the current billing month as determined by metering equipment installed by Austin Energy, adjusted for power factor as described above in Terms and Conditions. If a customer is receiving service under a secondary voltage rate schedule with demand greater than 10kW, and the customer’s monthly load factor is below 20 percent, the Billed kW will be reduced to the value required to result in an effective load factor of 20 percent. Load factor is calculated as all energy consumption divided by Billed kW multiplied by number of hours within the billing month. For example, assuming a customer had energy consumption of 1,152 kWh, Billed kW of 16 kW, and 720 hours in the billing month, the load factor would be 10 percent [1,152 kWh ÷ (16 kW * 720 hours)]; therefore, to equal a 20 percent load factor the Billed kW would need to be reduced to 8 kW [1,152 kWh ÷ (20 percent load factor * 720 hours)]. Load factor is used only for determining a customer’s Billed kW, not a customer’s placement within the proper rate schedule and is calculated after the power factor adjustment. Rider Schedules: Service under these rate schedules is eligible for application of the GreenChoice® Rider, either Non- Demand or Demand Value-Of-Solar Riders, and Load Shifting Voltage Discount Rider. Customer receiving service under either the Non-Demand or Demand Value-Of-Solar Riders cannot combine services with the Load Shifting Voltage Discount Rider. Secondary Voltage (Demand less than 10 kW) These rates apply to any customer whose average metered peak demand for power during the most recent June through September billing months did not meet or exceed 10 kW, or unmetered small cell pole equipment attached to City of Austin property. If a customer has insufficient usage history to determine the appropriate rate schedule, Austin Energy will place the customer in the appropriate class. Demand data will be reviewed annually in October. Customers will be assigned to their appropriate class and will be charged the corresponding appropriate rates beginning on January 1. For each unmetered small cell pole equipment attached to City of Austin property, the daily billable energy consumption is 2.88 kWh per amperage (amp); therefore, you would multiple the daily billable energy consumption by the equipment amperage rating and days in the billing month. For example, assuming a small cell pole attachment has a 5-amp equipment rating and there are 30 days in the billing month, then the monthly billable energy consumption would be 432 kWh [5 amps * 2.88 kWhs * 30 days]. A ‘small cell pole equipment’ refers to small wireless communications equipment or distributed antenna systems used to receive or transmit radio frequencies for low-powered radio access nodes consisting of radios, radio transceivers, antennas, amplifiers, switches, repeaters, or other related component equipment. This is the default rate option under this schedule. Basic Charges ($/month) Customer Inside City Limits Outside City Limits $18.00 $18.00 © 2018 Austin Energy 6 8402020-21 Proposed Budget, Austin, TXFY 2021 ELECTRIC TARIFF Delivery Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kWh) Billed kWhs $0.00 $0.00 $0.04802 $0.04802 $0.03139 $0.03139 $0.00058 $0.00124 $0.00335 $0.00058 $0.00000 $0.00335 $0.00851 $0.00851 Secondary Voltage (Demand greater than or equal to 10 kW but less than 300 kW) These rates apply to any customer whose average metered peak demand for power during the most recent June through September billing months met or exceeded 10 kW but did not meet or exceed 300 kW. If a customer has insufficient usage history to determine the appropriate rate schedule, Austin Energy will place the customer in the appropriate class. Demand data will be reviewed annually in October. Customers will be assigned to their appropriate class and will be charged the corresponding appropriate rates beginning on January 1. These rates shall apply for not less than twelve months following Austin Energy’s determination that customer’s average summer (June through September) metered peak demand level places customer in this rate class. The twelve-month requirement may be waived by Austin Energy if a customer has made significant changes in their connected load, which prevents the customer from meeting or exceeding the minimum-metered demand threshold of this rate schedule, and Austin Energy has verified these changes. This is the default rate option under this schedule. Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Inside City Limits Outside City Limits $27.50 $4.50 $4.19 $27.50 $4.50 $4.19 $0.02421 $0.02356 $0.03139 $0.03139 $0.00058 $0.00124 $0.00335 $0.00058 $0.00000 $0.00335 © 2018 Austin Energy 7 2020-21 Proposed Budget, Austin, TX841FY 2021 ELECTRIC TARIFF Regulatory Charge ($/kW) Billed kWs $2.37 $2.37 Secondary Voltage (Demand greater than or equal to 300 kW) These rates apply to any customer whose average metered peak demand for power during the most recent June through September billing months met or exceeded 300 kW. If a customer has insufficient usage history to determine the appropriate rate schedule, Austin Energy will place the customer in the appropriate class. Demand data will be reviewed annually in October. Customers will be assigned to their appropriate class and will be charged the corresponding appropriate rates beginning on January 1. These rates shall apply for not less than twelve months following Austin Energy’s determination that customer’s average summer (June through September) metered peak demand level places customer in this rate class. The twelve-month requirement may be waived by Austin Energy if a customer has made significant changes in their connected load, which prevents the customer from meeting or exceeding the minimum-metered demand threshold of this rate schedule, and Austin Energy has verified these changes. This is the default rate option under this schedule. Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kW) Billed kWs Inside City Limits Outside City Limits $71.50 $4.50 $6.40 $71.50 $4.50 $6.40 $0.01955 $0.01902 $0.03139 $0.03139 $0.00058 $0.00124 $0.00335 $0.00058 $0.00000 $0.00335 $2.37 $2.37 © 2018 Austin Energy 8 2020-21 Proposed Budget, Austin, TX842FY 2021 ELECTRIC TARIFF Large General Service Application: This rate applies to all primary voltage electric service whose point of delivery is located within the limits of Austin Energy’s service territory. These rates apply to primary voltage between 12,470 and 69,000 volts nominal line to line. The rate tables below reflect rates with an effective date of November 1, 2020. Character of Service: Service is provided under these rate schedules pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: The customer shall own, maintain, and operate all facilities and equipment on the customer’s side of the point of delivery. Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this schedule are unaffected by the application of any rider. All demand (kW) is referred to as “Billed kW” and shall be measured as the metered kilowatt demand during the fifteen-minute interval of greatest use during the billing month as determined by Austin Energy’s metering equipment and adjusted for power factor corrections. When the power factor during the interval of greatest use is less than 90 percent, as determined by metering equipment installed by Austin Energy, the Billed kW shall be determined by multiplying the metered kilowatt demand during the fifteen-minute interval of greatest use by a 90 percent power factor divided by the recorded power factor, rounded to the nearest hundredth, during the interval of greatest use. For example, the metered kilowatt demand during the fifteen-minute interval of greatest monthly use is 10,350 kW, and the power factor during the fifteen-minute interval of greatest monthly use is 86.7 percent; therefore, the Billed kW equals 10,707 kW (10,350 kW x 0.90 / 0.87 power factor). For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Discounts: For any Independent School District, Military base as outlined in the Public Utility Regulatory Act §36.354, or State facilities, the monthly customer-, delivery-, demand-, and energy-charges billed pursuant to these rate schedules will be discounted by 20 percent; all other electric charges will be billed pursuant to these rate schedules and will not be discounted. Rider Schedules: Service under these rate schedules is eligible for application of the GreenChoice® Rider, Demand Value- Of-Solar Rider, and Load Shifting Voltage Discount Rider. Customer receiving service under the Demand Value-Of-Solar Riders cannot combine services with the Load Shifting Voltage Discount Rider. © 2018 Austin Energy 9 2020-21 Proposed Budget, Austin, TX843FY 2021 ELECTRIC TARIFF Primary Voltage (Demand less than 3,000 kW) These rates apply to any customer whose average metered peak demand for power during the most recent June through September billing months did not meet or exceed 3,000 kW. If a customer has insufficient usage history to determine the appropriate rate schedule, Austin Energy will place the customer in the appropriate class. Demand data will be reviewed annually in October. Customers will be assigned to their appropriate class and will be charged the corresponding appropriate rates beginning on January 1. This is the default rate option under this schedule. Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kW) Billed kWs Inside City Limits Outside City Limits $275.00 $4.50 $7.00 $275.00 $4.50 $7.00 $0.00053 $0.00052 $0.03068 $0.03068 $0.00058 $0.00122 $0.00327 $0.00058 $0.00000 $0.00327 $2.32 $2.32 Primary Voltage (Demand greater than or equal to 3,000 kW and less than 20,000 kW) These rates apply to any customer whose average metered peak demand for power during the most recent June through September billing months met or exceeded 3,000 kW but did not meet or exceed 20,000 kW. If a customer has insufficient usage history to determine the appropriate rate schedule, Austin Energy will place the customer in the appropriate class. Demand data will be reviewed annually in October. Customers will be assigned to their appropriate class and will be charged the corresponding appropriate rates beginning on January 1. These rates shall apply for not less than twelve months following Austin Energy’s determination that customer’s average summer (June through September) metered peak demand level places customer in this rate class. The twelve-month requirement may be waived by Austin Energy if a customer has made significant changes in their connected load, which prevents the customer from meeting or exceeding the minimum-metered kW threshold of this rate schedule, and Austin Energy has verified these changes. Dual Feed Service charges are not applicable to this rate schedule within the capacity utilization requirements provided in the Austin Energy Fee Schedule. This is the default rate option under this schedule. © 2018 Austin Energy 10 2020-21 Proposed Budget, Austin, TX844FY 2021 ELECTRIC TARIFF Inside City Limits Outside City Limits Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kW) Billed kWs $2,200.00 $4.50 $2,200.00 $4.50 $9.17 $9.17 $0.00052 $0.00051 $0.03068 $0.03068 $0.00058 $0.00122 $0.00327 $0.00058 $0.00000 $0.00327 $2.32 $2.32 Primary Voltage (Demand greater than or equal to 20,000 kW) This rate applies to any customer whose average metered peak demand for power during the most recent June through September billing months met or exceeded 20,000 kW. If a customer has insufficient usage history to determine the appropriate rate schedule, Austin Energy will place the customer in the appropriate class. Demand data will be reviewed annually in October. Customers will be assigned to their appropriate class and will be charged the corresponding appropriate rates beginning on January 1. These rates shall apply for not less than twelve months following Austin Energy’s determination that customer’s average summer (June through September) metered peak demand level places customer in this rate class. The twelve-month requirement may be waived by Austin Energy if a customer has made significant changes in their connected load, which prevents the customer from meeting or exceeding the minimum metered kW threshold of this rate schedule and these changes have been verified by Austin Energy. Dual Feed Service charges are not applicable to this rate schedule within the capacity utilization requirements provided in the Austin Energy Fee Schedule. This is the default rate option under this schedule. Inside City Limits Outside City Limits Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWhs) Billed kWhs $2,750.00 $4.50 $2,750.00 $4.50 $10.37 $10.37 $0.00152 $0.00152 © 2018 Austin Energy 11 2020-21 Proposed Budget, Austin, TX845FY 2021 ELECTRIC TARIFF Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kW) Billed kWs $0.03068 $0.03068 $0.00058 $0.00122 $0.00327 $0.00058 $0.00000 $0.00327 $2.32 $2.32 High Load Factor Primary Voltage (Demand greater than or equal to 20,000 kW) This rate applies to any customer whose average monthly billed demand for power met or exceeded 20,000 kW and has an annual average monthly load factor of at least 85 percent. Contract Term: For a term ending at the end of the billing month that includes October 31, 2024, the customer shall enter into an exclusive sole supplier agreement to purchase its entire bundled electric service requirements for the facilities and equipment at the account service location, with an exception for on-site back-up generation and up to 1 MW of on-site renewable generation capacity. The City Manager or his designee may establish and agree to terms and conditions for a service contract consistent with this rate schedule. Block Power Supply Pricing: In lieu of the Power Supply Adjustment, the customer’s service contract may provide a fixed power supply charge for a monthly block quantity of energy for a defined term, based on the cost of wholesale power market prices. Block pricing is contingent on the availability of authorized funding and the customer’s satisfaction of credit requirements. All billed energy not subject to block pricing is subject to the variable Power Supply Adjustment (or GreenChoice® rider), as may be amended from time to time, or any other successor power or fuel adjustment schedules. The kWh block price shall be the actual wholesale kWh cost to Austin Energy of the block quantity supplied, plus a renewable portfolio charge based upon the forecast kWh price of renewable energy credits in the ERCOT market during the term of the block pricing. In lieu of the renewable portfolio charge, the customer may opt to designate an equal renewable portfolio dollar value as a monthly block quantity of GreenChoice® energy by paying the per-kWh price difference between the wholesale power price paid by Austin Energy and the applicable GreenChoice® Charge for the specified quantity. Minimum Bill: The minimum monthly bill is the highest billed demand established during the most recent 12-month billing period multiplied by the Summer Demand Charge, in addition to any associated fuel, power supply, or block pricing charges. Maximum Community Benefit Charges: During the term of a service contract, Customer Assistance Program charges shall not exceed $200,000 during any calendar year (prorated for any partial year). Charges for Service Area Lighting (SAL) and Energy Efficiency Services (EES) do not apply under this rate schedule. © 2018 Austin Energy 12 2020-21 Proposed Budget, Austin, TX846FY 2021 ELECTRIC TARIFF Terms and Conditions: This schedule is effective through the end of the customer’s billing month that includes October 31, 2024. Austin Energy may provide service under this schedule as a bundled entity or, if retail deregulation is implemented in its service area, as separate, unbundled entities. The customer is ineligible for participation in energy efficiency, retail demand response, and renewable energy incentive programs. Billed amounts due and owing shall incur a penalty of one percent per month until paid. Average annual monthly load factor is the sum of the customer’s load factor percentages for the previous twelve billing months divided by twelve. Verified reductions in energy consumption made in response to a request for Emergency Response Service or another demand response program operated by ERCOT shall be credited in calculating load factor. Dual Feed Service charges are not applicable to this rate schedule within the capacity utilization requirements provided in the Austin Energy Fee Schedule. Basic, energy, demand, and applicable community benefits charges will be fixed for the initial contract period ending October 31, 2018, at which time, they are reset to the most recent cost of service study unity rates. The Austin City Council may amend these charges to be fixed for the period November 1, 2018, through October 31, 2021, and again for the period November 1, 2021, through October 31, 2024. PSA and Regulatory charges will be set in accordance with their appropriate rate schedules. If, during the initial contract period ending October 31, 2018, the City Council adopts new base electric rates for customers receiving service at primary voltage based upon a comprehensive cost-of-service study, the customer may opt to have its contract rates adjusted to any applicable new rates during the initial contract term. Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Regulatory Charge ($/kW) Billed kWs $11,000.00 $4.50 $10.20 $0.00000 $0.03068 $0.00058 $2.32 © 2018 Austin Energy 13 2020-21 Proposed Budget, Austin, TX847FY 2021 ELECTRIC TARIFF Transmission Service Application: This rate applies to all transmission voltage electric service at 69,000 volts or above nominal line to line, and whose point of delivery is located within the limits of Austin Energy’s service territory. The rate tables below reflect rates with effective dates of November 1, 2020. Character of Service: Service is provided under this rate schedule pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: The customer shall own, maintain, and operate all facilities and equipment on the customer’s side of the point of delivery. Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this schedule are unaffected by the application of any rider. All demand (kW) is referred to as “Billed kW” and shall be measured as the metered kilowatt demand during the fifteen-minute interval of greatest use during the billing month as determined by Austin Energy’s metering equipment, adjusted for power factor corrections. When the power factor during the interval of greatest use is less than 90 percent, as determined by metering equipment installed by Austin Energy, the Billed kW shall be determined by multiplying metered kilowatt demand during the fifteen-minute interval of greatest use by a 90 percent power factor divided by the recorded power factor, rounded to the nearest hundredth, during the interval of greatest use. For example, the metered kilowatt demand during the fifteen-minute interval of greatest monthly use is 31,000 kW, and the power factor during the fifteen-minute interval of greatest monthly use is 86.7 percent; therefore, the Billed kW equals 32,068 kW (31,000 kW x 0.90 / 0.87 power factor). For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Discounts: For any Independent School District, Military base as outlined in the Public Utility Regulatory Act §36.354, or State facilities, the monthly customer-, delivery-, demand-, and energy-charges billed pursuant to these rate schedules will be discounted by 20 percent; all other electric charges will be billed pursuant to these rate schedules and will not be discounted. Rider Schedules: Service under this rate schedule is eligible for application of the GreenChoice® Rider and Load Shifting Voltage Discount Rider. © 2018 Austin Energy 14 2020-21 Proposed Budget, Austin, TX848These rates apply to any customer whose metered demand is at 69,000 volts or above nominal line to line. FY 2021 ELECTRIC TARIFF Transmission Voltage This is the default rate option under this schedule. Basic Charges Customer ($/month) Delivery ($/kW) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kW) Billed kWs Inside City Limits Outside City Limits $2,750.00 $0.00 $2,750.00 $0.00 $12.00 $12.00 $0.00500 $0.00500 $0.03029 $0.03029 $0.00058 $0.00120 $0.00323 $0.00058 $0.00000 $0.00323 $2.29 $2.29 High Load Factor Transmission Voltage (Demand greater than or equal to 20 MW) This rate applies to any customer whose average monthly billed demand for power met or exceeded 20,000 kW and has an annual average monthly load factor of at least 85 percent. Contract Term: For a term ending at the end of the billing month that includes October 31, 2024, the customer shall enter into an exclusive sole supplier agreement to purchase its entire bundled electric service requirements for the facilities and equipment at the account service location, with an exception for on-site back-up generation and up to 1 MW of on-site renewable generation capacity. The City Manager or his designee may establish and agree to terms and conditions for a service contract consistent with this rate schedule. Block Power Supply Pricing: In lieu of the Power Supply Adjustment, the customer’s service contract may provide a fixed power supply charge for a monthly block quantity of energy for a defined term, based on the cost of wholesale power market prices. Block pricing is contingent on the availability of authorized funding and the customer’s satisfaction of credit requirements. All billed energy not subject to block pricing is subject to the variable Power Supply Adjustment (or GreenChoice® rider), as may be amended from time to time, or any other successor power or fuel adjustment schedules. The kWh block price shall be the actual wholesale kWh cost to Austin Energy of the block quantity supplied, plus a renewable portfolio charge based upon the forecast kWh price of renewable energy credits in the ERCOT market during the term of the block pricing. © 2018 Austin Energy 15 2020-21 Proposed Budget, Austin, TX849FY 2021 ELECTRIC TARIFF In lieu of the renewable portfolio charge, the customer may opt to designate an equal renewable portfolio dollar value as a monthly block quantity of GreenChoice® energy by paying the per-kWh price difference between the wholesale power price paid by Austin Energy and the applicable GreenChoice® Charge for the specified quantity. Minimum Bill: The minimum monthly bill is the highest billed demand established during the most recent 12-month billing period multiplied by the Summer Demand Charge, in addition to any associated fuel, power supply, or block pricing charges. Maximum Community Benefit Charges: During the term of a service contract, Customer Assistance Program charges shall not exceed $200,000 during any calendar year (prorated for any partial year). Charges for Service Area Lighting and Energy Efficiency Services (EES) do not apply under this rate schedule. Terms and Conditions: This schedule is effective through the end of the customer’s billing month that includes October 31, 2024. Austin Energy may provide service under this schedule as a bundled entity or, if retail deregulation is implemented in its service area, as separate, unbundled entities. The customer is ineligible for participation in energy efficiency, retail demand response, and renewable energy incentive programs. Billed amounts due and owing shall incur a penalty of one percent per month until paid. Average annual monthly load factor is the sum of the customer’s load factor percentages for the previous twelve billing months divided by twelve. Verified reductions in energy consumption made in response to a request for Emergency Response Service or another demand response program operated by ERCOT shall be credited in calculating load factor. Basic, energy, demand, and applicable community benefits charges will be fixed for the initial contract period ending October 31, 2018, at which time; they are reset to the most recent cost of service study unity rates. The Austin City Council may amend these charges to be fixed for the period November 1, 2018, through October 31, 2021, and again for the period November 1, 2021, through October 31, 2024. PSA and Regulatory charges will be set in accordance with their appropriate rate schedules. If, during the initial contract period ending October 31, 2018, the City Council adopts new base electric rates for customers receiving service at transmission voltage based upon a comprehensive cost-of-service study, the customer may opt to have its contract rates adjusted to any applicable new rates during the initial contract term. Basic Charges Customer ($/month) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) $21,120.00 $11.15 $0.00000 $0.03029 © 2018 Austin Energy 16 2020-21 Proposed Budget, Austin, TX850FY 2021 ELECTRIC TARIFF Customer Assistance Program Regulatory Charge ($/kW) Billed kWs $0.00058 $2.29 © 2018 Austin Energy 17 2020-21 Proposed Budget, Austin, TX851FY 2021 ELECTRIC TARIFF Lighting Application: Applies to any customer whose point of delivery is located within the limits of Austin Energy’s service territory. For non-metered lighting accounts, the supply of electricity is determined by the number of hours of operation based on hours of darkness. The rate tables below reflect rates with effective dates of November 1, 2020. Character of Service: Service provided under these rate schedules are pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this schedule remain unaffected by the application of any rider. For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Discounts: For any Independent School District, Military base as outlined in the Public Utility Regulatory Act §36.354, or State facilities, the monthly customer-, delivery-, demand-, and energy-charges billed pursuant to these rate schedules will be discounted by 20 percent; all other electric charges will be billed pursuant to these rate schedules and will not be discounted. Rider Schedules: Service under these rate schedules is eligible for application of the GreenChoice® Rider. Customer-Owned, Non-Metered Lighting This rate applies to non-metered electric service to the Texas Department of Transportation for sign lighting and safety illumination at various locations. Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs $0.02604 $0.03139 Customer-Owned, Metered Lighting This rate applies to electric service to metered athletic field accounts whose connected load is more than 85 percent attributable to lighting, as verified by Austin Energy. © 2018 Austin Energy 18 2020-21 Proposed Budget, Austin, TX852FY 2021 ELECTRIC TARIFF Basic Charges ($/month) Customer Delivery Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs City of Austin - Owned Outdoor Lighting $15.00 $0.00 $0.06175 $0.03139 This rate applies to electric service to non-metered outdoor lighting owned and operated by the City of Austin other than Service Area Lighting. Fixture Charges ($/fixture/month) 100 Watt or Less (Billable 35 kWh) 101 - 175 Watt (Billable 60 kWh) 176 - 250 Watt (Billable 90 kWh) 251 Watt or Greater (Billable 140 kWh) Power Supply Adjustment Charge ($/kWh) Billed kWhs $7.03 $12.05 $18.07 $28.12 $0.03139 Service Area Lighting This rate applies to electric service for illumination and the operation of traffic signals on all public streets, highways, expressways, or thoroughfares; other than non-metered lighting maintained by the Texas Department of Transportation. Revenues received through the Service Area Lighting component of the Community Benefit Charge are applied to offset these charges inside the City of Austin. Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs $0.23219 $0.03139 © 2018 Austin Energy 19 2020-21 Proposed Budget, Austin, TX853FY 2021 ELECTRIC TARIFF Power Supply Adjustment Application: Applies to all electric service whose point of delivery is located within the limits of Austin Energy’s service territory, unless otherwise stated. The rates for this pass-through charge are effective November 1, 2020. Character of Service: The Power Supply Adjustment (PSA) provides for the recovery of the preceding year’s expenditures for (PSA Costs): • Electric Reliability Council of Texas (ERCOT) Settlements – charges and credits from ERCOT, other than the Administrative Fees. Fuel Costs – costs for fuel, fuel transportation, and hedging gains and losses. • • Net Purchased Power Agreement Costs – costs and offsetting revenues (such as, bilateral sales and GreenChoice) associated with short- and long-term purchased power agreements, and costs for distributed generation production. As part of the City of Austin’s annual budgeting process, which includes a public hearing, the PSA is determined by calculating the sum of all net power supply costs divided by the historical twelve-month period service territory sales, plus any existing over- or under-recovery of PSA Costs balance divided by projected service territory sales preceding the effective date of the PSA. This results in an annual uniform system rate per kWh that is adjusted for voltage level and applied to each of the customer classes. At least once each year, the City Manager will publicly present a report to the City Council that provides the underlying calculations for the PSA by system voltage level. The PSA Cost calculation will break out Fuel Costs, ERCOT Settlements, and Net Purchased Power Agreement Costs; it will also show the extent of over- or under-recovery of PSA Costs for the previous twelve months. From the effective date of the last PSA adjustment, the PSA may be adjusted to eliminate any over- or under-recovery if the balance of net PSA Costs recovered is either over or under 10 percent of the actual PSA Costs incurred during such period. If such over- or under-recovery is projected to remain either over or under 10 percent after 12 months from the effective date of the last PSA adjustment, then the PSA shall be adjusted to eliminate the amount of the over- or under-recovery balance within the next 12 months. Within 30 days of any adjustment of the PSA to eliminate over- or under-recovery of PSA Costs, the City Manager will publicly present a report to the City Council that provides the underlying calculations for the PSA, both pre- and post-adjustment by system voltage level. The PSA charges by voltage level are: Voltage Level Adjustment Factor Power Supply Rate ($/kWh) System Average Secondary Primary Transmission 1.0000 1.0049 0.9821 0.9696 $0.03124 $0.03139 $0.03068 $0.03029 Renewable Offtake Agreement Option: Qualifying customers who desire to purchase and receive additional renewable energy and associated renewable energy credits (RECs) to meet their sustainability targets may enter into a contract with Austin Energy backed by a renewable power purchase agreement (RPPA) between Austin Energy and a third-party generator for a specified MWh amount, depending upon market availability. The customer’s PSA charge will be adjusted by Austin Energy’s ERCOT-settled net © 2018 Austin Energy 20 2020-21 Proposed Budget, Austin, TX854FY 2021 ELECTRIC TARIFF financial gains and losses from the RPPA (the positive or negative difference between the RPPA MWh price and settled nodal price for each generated MWh) for the contracted amount in the month following ERCOT settlement. In the event an adjustment would reduce the PSA charge to below zero in a given month, the negative amount will be carried forward as a credit to be applied to future PSA charges. Austin Energy will retire any associated RECs on the customer’s behalf. To qualify for a RPPA-backed contract, the customer shall (1) maintain during the contract term an average monthly billed demand of at least 75,000 kW and an average annual load factor of at least 85 percent, and (2) have (or provide through an affiliate guarantee) a creditworthiness no lower than a rating of BBB- by Standard & Poor’s Rating Group or Baa2 by Moody’s Investor Services, Inc., or provide other appropriate security backed by a qualified financial institution as approved by Austin Energy. Additional contract terms and conditions, related QSE and other fees, financial security requirements, and other matters shall be determined by Austin Energy. All energy, demand, customer, and other charges shall be billed as set forth in the applicable rate schedule. © 2018 Austin Energy 21 2020-21 Proposed Budget, Austin, TX855FY 2021 ELECTRIC TARIFF Community Benefit Charge Application: Applies to all electric service whose point of delivery is located within the limits of Austin Energy’s service territory, unless otherwise stated. The rates for this pass-through charge are effective November 1, 2020. Character of Service: The Community Benefit Charge recovers certain costs incurred by the utility on behalf of Austin Energy’s service area customers and the greater community. This charge is determined through the City budget process and applied by system voltage level. The charge includes three specific programs and services provided to customers. 1. Service Area Lighting (SAL) recovers the cost of street lighting (other than lighting maintained by Texas Dept. of Transportation), the operation of traffic signals located inside Austin Energy’s service territory, and certain lights owned by the City of Austin and operated on behalf of the City’s Parks and Recreation Department. Customers whose point of delivery is located outside the city limits of Austin are not subject to the Service Area Lighting component of the Community Benefit Charge. 2. Energy Efficiency Services (EES) recovers the cost of energy efficiency rebates and related costs, solar incentives, and the Green Building program offered by Austin Energy throughout its service area. 3. The Customer Assistance Program (CAP) funds projects that help qualifying low-income and other disadvantaged residential customers through bill discounts, payment assistance (Plus 1), arrearage management (available only for customers receiving the CAP discount), and weatherization services. Funding for CAP is provided through the CAP component of the Community Benefit Charge and unexpended and re-appropriated funds. Information regarding CAP shall be made available quarterly, including the number of residential customers enrolled automatically and through self-enrollment, the total and average amount of benefits provided, and the number of residential customers referred to the low-income weatherization program. With Council approval, funds unspent at the end of a fiscal year shall be rolled over to the next fiscal year’s budget for the CAP program. Rate Schedules Service Area Energy Efficiency Customer Assistance Lighting Services Program $0.00124 $0.00000 Secondary Voltage (Residential) ($/kWh) Inside City Limits Outside City Limits Secondary Voltage (Non-Residential) ($/kWh) Inside City Limits Outside City Limits Primary Voltage ($/kWh) Inside City Limits Outside City Limits Transmission Voltage ($/kWh) Inside City Limits $0.00122 $0.00000 $0.00124 $0.00000 $0.00120 $0.00335 $0.00335 $0.00335 $0.00335 $0.00327 $0.00327 $0.00154 $0.00106 $0.00058 $0.00058 $0.00058 $0.00058 $0.00323 $0.00058 © 2018 Austin Energy 22 2020-21 Proposed Budget, Austin, TX856FY 2021 ELECTRIC TARIFF $0.00000 Outside City Limits Primary and Transmission Voltage ≥ 20 MW @ 85% aLF ($/kWh) Inside City Limits Outside City Limits $0.00000 $0.00000 $0.00000 $0.00000 $0.00323 $0.00058 $0.00058 $0.00058 © 2018 Austin Energy 23 2020-21 Proposed Budget, Austin, TX857FY 2021 ELECTRIC TARIFF Regulatory Charges Application: Applies to all electric service whose point of delivery is located within the limits of Austin Energy’s service territory, unless otherwise stated. The rates for this pass-through charge are effective November 1, 2020. Character of Service: The Regulatory Charge recovers the following costs, excluding any costs recovered through the closed Fuel Adjustment Clause: 1) ERCOT transmission service charges and credits; 2) NERC/TRE regulatory fees and penalties; 3) the ERCOT Nodal and Administrative Fees; and 4) other material regulatory fees or penalties specific to the electric industry. The Regulatory Charge is applied by system voltage level on either an energy or demand basis and may be adjusted to eliminate any over- or under-recovery on a system basis. Changes to the Regulatory Charge shall be determined after notice and public hearing as required by City code. Regulatory (Energy) ($/kWh) Regulatory (Demand) Voltage Level $0.00851 Secondary Secondary – State Contract Rate Primary Primary – State Contract Rate Transmission Note: The State Regulatory charge will remain fixed for the initial contract period ending August 31, 2021. N/A N/A N/A N/A ($/kW) $2.37 $3.75 $2.32 $3.67 $2.29 © 2018 Austin Energy 24 2020-21 Proposed Budget, Austin, TX858FY 2021 ELECTRIC TARIFF Standby Capacity Application: These rates apply to electric service for standby power provided by Austin Energy whose point of delivery is located within the limits of Austin Energy’s service territory. Character of Service: Service is provided under this rate schedule pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. The Standby Capacity will be stipulated in the contract between Austin Energy and the customer. If during any scheduled or unscheduled outage, the customer exceeds the contracted amount of Standby Capacity, the capacity for billing Standby Service will be increased to actual amount for the next twelve months. After twelve months billing at the new capacity level, the capacity for billing Standby Service will be reduced to the original contracted amount. Customer will be assessed a monthly Minimum Bill equal to the Standby Capacity Rate times the Standby Capacity. Voltage Level Monthly Standby Capacity Rate ($/kW) Primary Transmission $2.80 $2.60 For months where the customer takes power from Austin Energy, the monthly billing for power will be at the appropriate underlying rates within the standard rate schedules for which the customer’s load and voltage would qualify for that month, including all applicable riders. Such monthly billing will also include the charges for Standby Capacity as described above. For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. © 2018 Austin Energy 25 2020-21 Proposed Budget, Austin, TX859FY 2021 ELECTRIC TARIFF Rider Rate Schedules Application: These rider rates apply to electric service whose point of delivery is located within the limits of Austin Energy’s service territory. Character of Service: Service is provided under these rate schedules pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. © 2018 Austin Energy 26 2020-21 Proposed Budget, Austin, TX860FY 2021 ELECTRIC TARIFF GreenChoice® Rider Subscriptions under the GreenChoice® program support Austin Energy’s inclusion of renewable fuel sources in its power generation portfolio. This energy cannot be directed to any one particular destination on the Electric Reliability Council of Texas electric grid, including participant’s premises. Application: This rider applies to electric service to a customer subscribed to the City of Austin’s GreenChoice® program. Terms and Conditions: A customer’s account must be in good standing. In addition, some subscriptions allow for the qualification of accolades. If in the event of a conflict with this rider, the terms of a subscription contract in effect shall prevail. The General Manager of Austin Energy shall develop the contract terms and conditions for subscriptions. Unless otherwise specified in a subscription contract in effect on September 30, 2013, for Batches 5 or 6 subscriptions, the GreenChoice® Charges will be applied to 100 percent of the customer’s energy usage through the Batch’s end date. Batches 5 and 6 are closed to additional subscriptions. For Residential SmartCents or Commercial BusinessCents subscriptions, the GreenChoice® Charges will be applied to 100 percent of the customer’s energy usage. Both SmartCents and BusinessCents are non- contract subscriptions with no penalty for unsubscribing. For Commercial Energizer subscription, the GreenChoice® Charge will be applied to 100 percent of the customer’s energy usage. Energizer is a 12-month contract subscription that converts a month-to-month subscription after the contracts end date; after this term expiration the customer may re-subscribe to a new subscription product. For all Commercial Patron 15, 17, or 20 subscriptions, the GreenChoice® Charges will be applied to each customer’s account for a specified amount of energy usage of at least 100,000 kilowatt-hours per billing month, up to 100 percent of the customer’s energy usage. Any commercial customer is eligible with a minimum of 1.2 MWh annual load on one or a combination of accounts. Patron subscriptions are written contracts with specific terms and end dates at a fixed charge; after the expiration the customer may re- subscribe to a new subscription product. Customers may not unsubscribe from the program at any time prior to the expiration of their contract. GreenChoice® Charges: While subscribed to the GreenChoice® program, a customer will be billed GreenChoice® Charge in lieu of the Power Supply Adjustment (PSA) that would otherwise apply to the customer’s subscribed energy usage, unless otherwise noted in the appropriate rate schedule. © 2018 Austin Energy 27 2020-21 Proposed Budget, Austin, TX861FY 2021 ELECTRIC TARIFF Subscription Type GreenChoice® Charges ($/kWh) Effective Dates before October 1, 2013 Batch 5 (End Date December 31, 2022) Batch 6 (End Date December 31, 2021) Effective Date January 1, 2017 Residential SmartCents (No Contract) Commercial BusinessCents (No Contract) Commercial Energizer (12-Month Contract) Commercial Patron 15 (Expires on December 31, 2019) Commercial Patron 17 (End Date December 31, 2021) Commercial Patron 20 (5-Year Contract) PSA amount plus $0.00750 PSA amount plus $0.00750 PSA amount plus $0.00750 $0.055000 $0.057000 $0.04400 $0.03800 $0.03600 © 2018 Austin Energy 28 2020-21 Proposed Budget, Austin, TX862FY 2021 ELECTRIC TARIFF Value-Of-Solar Rider Application: Applies to any electric service account, excluding transmission voltage and lighting accounts, that has an on-site solar photovoltaic system that has a capacity less than 10,000 kW-ac interconnected with Austin Energy's distribution system behind the master meter (“Solar Customer”); or customers recognized by Austin Energy as a “Shared Solar Customer” where an assigned portion of metered solar production from a designated on-site photovoltaic system is allocated to the Shared Solar Customer’s account. Terms and Conditions: Billable kilowatt-hour shall be based on metered energy delivered by Austin Energy’s electric system and the metered energy consumed from an on-site solar system; also known as, the total metered energy consumption during the billing month. All non-kWh-based charges set out in the underlying service rate schedules shall remain unaffected by the application of this rider. For each billing month, the Solar Customer shall receive a non-refundable, non-transferable credit equal to the metered kilowatt-hour output of the customer's photovoltaic system multiplied by the current applicable Value-of-Solar rate. For each billing month, the Shared Solar Customer shall receive a non-refundable, non-transferable credit equal to the customer’s proportional amount of the metered kilowatt-hour output of the designated photovoltaic system multiplied by the current applicable Value-of-Solar rate. Credits are applicable to the customer's total monthly bill for electric service in the customer's name on the same premise and account where the on-site solar photovoltaic system is associated. Any remaining credit amount shall be carried forward and applied to the customer's next electric service bill. In the event of service termination, the customer will forfeit any remaining credit balance, and the credit balance will be applied to the Power Supply Adjustment (PSA) to reduce net purchased power costs. The Value-of-Solar rates, methodology, and inputs will be re-assessed and updated during Austin Energy’s cost of service study using the calculations outlined in Appendices A, B, and C of this tariff. The Value-of-Solar rates below are tariff riders. Customers receiving service under either Non-Demand or Demand Value-Of-Solar Riders cannot combine services with the Load Shifting Voltage Discount Rider. Renewable Energy Credits (RECs) and all other renewable energy attributes for generation receiving Value-of-Solar credits are aggregated by Austin Energy. All RECs for energy consumed onsite will be retired on behalf of the solar customer. Rate Schedule Type Value-of-Solar Rate ($/kWh) Non-Demand Demand (Solar capacity less than 1,000 kW-ac) Demand (Solar capacity greater than or equal to 1,000 kW-ac) $0.09700 $0.06700 $0.04700 © 2018 Austin Energy 29 2020-21 Proposed Budget, Austin, TX863FY 2021 ELECTRIC TARIFF Community Solar Rider Application: Applies to any Residential Service account that subscribes to a community solar program, and is available on a first-come, first-served basis, until the program is fully subscribed. Once fully subscribed, no new customers will be allowed to take service under this rider until additional community solar projects are added to the program. Terms and Conditions: Customer subscription must be for 100 percent of the customer’s master revenue meter’s monthly energy usage. Customers may unsubscribe at any time; however, a customer that unsubscribes may not re- subscribe for Community Solar Rider for a period of 12 months. Service under this rider is considered portable within Austin Energy’s service territory, meaning that if a customer subscribes at one premise and moves to another, the customer may remain a subscriber. Subscriptions support Austin Energy’s inclusion of local community solar photovoltaic systems in its power generation portfolio. Customer receiving service under the Community Solar Rider cannot combine services with the Value-of- Solar Rider or GreenChoice® Rider; or participate in any time-of-use rates. Discounts: Eligible residential Customer Assistance Program (CAP) participants that subscribe to community solar qualify for a reduced Community Solar Adjustment charge. Community Solar Charges: While subscribed to the Community Solar program, a customer will be billed a Community Solar Adjustment in lieu of the Power Supply Adjustment (PSA) that would otherwise apply to the customer’s subscribed energy usage. Subscriber Eligibility Residential Service Residential CAP Participants Effective Date January 1, 2017 February 1, 2018 Community Solar Adjustment ($/kWh) $0.04270 $0.02770 © 2018 Austin Energy 30 2020-21 Proposed Budget, Austin, TX864FY 2021 ELECTRIC TARIFF Load Shifting Voltage Discount Rider Application: Applies to any non-residential customer who, at a minimum, shifts 30 percent of the customer’s normal annual monthly average on-peak billed demand using storage technologies (e.g., thermal energy storage) and whose point of delivery is located within the limits of Austin Energy’s service territory. “Normal on- peak billed demand” is defined as the maximum-billed demand recorded prior to taking service on this discount rider rate schedule, and corresponding energy, during the last 12-month period, or as may be determined by Austin Energy. Character of Service: Service is provided under these rate schedules pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: The load shifting voltage discount rider rate schedule will be applied to the underlying rates within the standard rate schedules for which the customer’s load and voltage would qualify. Customer shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. The Billed kW used to determine the Electric Delivery, the Demand, and Regulatory Charges shall be based on the highest 15-minute metered demand recorded during the Load Shifting on-peak period and adjusted for power factor. The Energy Charge shall be based on all energy consumption during the Load Shifting on-peak period. All other Charges (i.e., PSA, CBC, etc.) will be billed at the underlying rates schedules based on all consumption. The load shifting on-peak period load shall be shifted, not eliminated, nor replaced by the use of alternative fuels. There is no load forgiveness for operations during on-peak periods. Customers receiving service under this rate schedule are not eligible for any other forms of discounts; except for service to a facility owned and operated by the State of Texas or the Board of Regents of the University of Texas System. In addition, customer receiving service under Load Shifting Voltage Discount Rider cannot combine services with either Non-Demand or Demand Value-Of-Solar Riders. For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Load Shifting Periods Demand On-Peak Off-Peak Energy On-Peak Off-Peak Time Periods Annual 3:00 P.M. – 6:00 P.M. 6:00 P.M. – 3:00 P.M. 7:00 A.M. – 10:00 P.M. 10:00 P.M. – 7:00 A.M. Everyday Everyday © 2018 Austin Energy 31 2020-21 Proposed Budget, Austin, TX865FY 2021 ELECTRIC TARIFF Electric Vehicle Public Charging Application: This rate schedule applies to electric service to a customer using a public electric vehicle charging station under the Electric Vehicle Public Charging program. For subscription members, charging is a fixed six- month service fee that allows unlimited charging on Level 1 and Level 2 charging stations. For non- subscription members, charging is based on the charging station type, for which, a ‘per-minute’ rate is applied for the entire duration that the electric vehicle is connected to the charging station, referred to as ‘plug-in to plug-out’. To improve station availability for all members, DC Fast charging stations are based on a per-minute rate applied from plug-in to plug-out. Character of Service: Service is provided under these rate schedules pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is required. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this are unaffected by the application of any rider For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Discounts: For any Independent School District, Military base as outlined in the Public Utility Regulatory Act §36.354, or State facilities, the monthly customer-, delivery-, demand-, and energy-charges billed pursuant to these rate schedules will be discounted by 20 percent; all other electric charges will be billed pursuant to these rate schedules and will not be discounted. Rider Schedules: Service under these rate schedules is eligible for application of the GreenChoice® Rider and Demand Value-Of-Solar Riders. Subscription Members Unlimited Level 1 and Level 2 Charging ($/six-months) Non-Subscription Members: Plug-in to Plug-out Level 2 Charging ($/minute) All Members: Plug-in to Plug-out DC Fast Charging ($/minute) $23.095 $0.03 $0.21 © 2018 Austin Energy 32 2020-21 Proposed Budget, Austin, TX866FY 2021 ELECTRIC TARIFF Pilot Programs Application: Each individual pilot program described in this rate schedule will be limited to a participation of 100 individual meters on a first-come, first-served basis, unless stated otherwise on the applicable rate schedule. At any time, Austin Energy may administratively suspend availability of these pilot programs or modify the number of individual meters allowed to participate. The pilot time-of-use power supply rates will be applied to the underlying standard rate schedules for which the customer’s characteristics, load, and voltage would qualify, but with the time-based power supply charge identified below in lieu of the power supply adjustment rates. All character of services, terms, conditions, and discounts from the underlying standard rate schedule apply, unless specifically modified by the terms of the pilot program. Terms and Conditions: Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under these rate schedules are unaffected by the application of any rider. Pilot programs availability is contingent upon Austin Energy’s operational feasibility, system configuration, availability of appropriate meters, and the customer’s premise. Customers selecting these rate options are not eligible to participate in levelized billing. For information on rates (i.e., power supply adjustment, community benefit, and regulatory) prior to this effective date, please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. Customers are advised to conduct their own independent research before deciding to participate in a pilot program. At Austin Energy’s sole discretion, during extreme unforeseen circumstances, the customer may be allowed to prematurely stop receiving service pursuant to these pilots without being back billed or have the termination fee waived. Residential Service Application: These pilot programs’ rate schedules apply to electric service for domestic purposes in each individual metered residence, apartment unit, mobile home, or other dwelling unit whose point of delivery is located within the limits of Austin Energy’s service territory. Rider Schedules: Services under these rate schedules are eligible for application of GreenChoice® Rider, Community Solar Rider, and Non-Demand Value-Of-Solar Rider, unless stated otherwise on their applicable rate schedule. Application of GreenChoice® Rider and Community Solar Rider will be applied to all energy consumption in addition to applicable power and fuel charges. Customer receiving service under the Community Solar Rider cannot combine services with either the Non-Demand Value-of-Solar Rider or GreenChoice® Rider. © 2018 Austin Energy 33 2020-21 Proposed Budget, Austin, TX867FY 2021 ELECTRIC TARIFF Time-Of-Use Rate Customers receiving service under the Residential Service rate schedule may choose the following time- of-use power supply charges in lieu of the normal power supply adjustment rates to be applied for a term of no less than 12 consecutive billing cycles. If a customer elects to stop receiving service pursuant to this rider before the conclusion of the initial 12 consecutive billing cycles, Austin Energy will calculate what the customer’s bills would have been using the Residential Service power supply adjustment rates. If the application of these rates result in a higher bill, the customer will be back billed for difference between this higher amount and the amount paid pursuant to this rider. Power Supply Periods: Weekdays Off-Peak Mid-Peak On-Peak Weekends Off-Peak Time-Of-Use Power Supply Charges Power Supply Charges ($/kWh) Weekdays 10:00 P.M. – 7:00 A.M. 7:00 A.M. – 3:00 P.M., 6:00 P.M. – 10:00 P.M. 3:00 P.M. – 6:00 P.M. Entire Day Summer Non-Summer (June through September) (October through May) Weekends Off-Peak Mid-Peak On-Peak $0.03025 $0.03025 $0.06605 Off-Peak $0.03025 $0.02982 $0.02982 $0.03139 $0.02982 EV360℠ Plug-In Electric Vehicle Charging Subscription Application: For a separate residential meter circuit, installed at the customer’s expense, attached to an in-home electric vehicle level 1, or higher, charging station for charging a plug-in electric vehicle (PEV). Customers receiving service under this rate schedule may choose the following electric vehicle subscription charge to be applied for a term of no less than 12 consecutive billing cycles. If the customer elects to terminate participation in the program, the customer must pay an early termination fee of $200.00. This rate schedule includes unlimited customer access to public electric vehicle charging station under the Electric Vehicle Public Charging rate schedule. Terms and Conditions: These charges are in addition to any other services the premise might be receiving. Customers served under this rate schedule will be provided separate primary meter billing amounts and PEV meter billing © 2018 Austin Energy 34 2020-21 Proposed Budget, Austin, TX868FY 2021 ELECTRIC TARIFF Time Periods: Weekdays Off-Peak On-Peak Weekends Off-Peak amounts in their electric bills. The customer’s primary metered usage is billed according to the primary rate schedule selected by the customer. The customer’s PEV usage is billed according to this residential PEV schedule. The PEV meter billed amount will be based upon data delivered to Austin Energy. All in-home electric vehicle charging must be done during off-peak periods; otherwise, any energy consumption during on-peak periods will be multiplied by Power Supply Charges. A one-time enrollment payment of $150 will be applied. Customers receiving PEV charging station service are not eligible for any discounts under this rate schedule. Application of GreenChoice® Rider and Community Solar Rider will be applied to all energy consumption from the PEV meter in addition to Power Supply Charges. 7:00 P.M. – 2:00 P.M. 2:00 P.M. – 7:00 P.M. Entire Day Summer Non-Summer (June through September) (October through May) PEV Charging Station Charges Basic Charges ($/month) Delivery Demand (< 10 kW) Demand (≥ 10 kW) Power Supply Charges ($/kWh) Weekdays $30.00 $50.00 Weekends Off-Peak On-Peak $0.00000 $0.40000 Off-Peak $0.00000 $30.00 $50.00 $0.00000 $0.14000 $0.00000 © 2018 Austin Energy 35 2020-21 Proposed Budget, Austin, TX869FY 2021 ELECTRIC TARIFF Commercial Service Fleet and Public Electric Vehicle Charging Application: This rate schedule applies to secondary voltage electric service to a single metered point of delivery with a load at least 90 percent attributable to electric vehicle charging, as verified by Austin Energy, with an average monthly billed demand greater than 100 kW over the previous 6 billing months, or as determined by Austin Energy for accounts with a billing history of less than 6 months. Participation is limited to ten customers, on a first-come, first-served basis. A customer receiving service under this schedule may elect to take service under the applicable standard rate schedule but only after receiving service on this schedule for 12 consecutive billing months. If a customer elects to discontinue service under this schedule, the customer will not be permitted to return to this schedule for a period of one year. This program supports high usage applications of charging for public facing charging infrastructure and facilities serving fleet, bulk, and delivery electric vehicles; transit, commuter, and school buses; and other ground transportation equipment and vehicles. Character of Service: Service is provided under these rate schedules pursuant to City Code Chapter 15-9 (Utility Service Regulations) and the City of Austin Utility Criteria Manual, as both may be amended from time to time, and such other rules and regulations as may be prescribed by the City of Austin. Electric service of one standard character will be delivered to one point of service on the customer’s premises and measured through one meter unless, at Austin Energy’s sole discretion, additional metering is permitted. Terms and Conditions: The customer shall own, maintain, and operate all facilities and equipment on the customer’s side of the point of delivery. Customers shall permit Austin Energy to install all equipment necessary for metering and permit reasonable access to all electric service facilities installed by Austin Energy for inspection, maintenance, repair, removal, or data recording purposes. All non-kilowatt-hour charges under this schedule are unaffected by the application of any rider. All demand (kW) is referred to as “Billed kW” and shall be measured as the metered kilowatt demand during the fifteen-minute interval of greatest use during the billing month as determined by Austin Energy’s metering equipment and adjusted for power factor and load factor corrections. When power factor during the interval of greatest use is less than 90 percent, as determined by metering equipment installed by Austin Energy, the Billed kW shall be determined by multiplying metered kilowatt demand during the fifteen-minute interval of greatest use by a 90 percent power factor divided by the recorded power factor, rounded to the nearest hundredth, during the interval of greatest use. For example, the metered kilowatt demand during the fifteen-minute interval of greatest monthly use is 13.5 kW, and the power factor during the fifteen-minute interval of greatest monthly use is 86.7 percent; therefore, the Billed kW equals 14.0 kW (13.5 kW x 0.90 / 0.87 power factor). For information on other applicable rates (i.e., power supply adjustment, community benefit, and regulatory), please see corresponding schedules in this tariff (if applicable). For definition of charges listed below, see “Glossary of Terms” at the back of this tariff. © 2018 Austin Energy 36 2020-21 Proposed Budget, Austin, TX870FY 2021 ELECTRIC TARIFF Inside City Limits Outside City Limits Basic Charges Customer ($/month) Demand Charges ($/kW) Billed kWs Energy Charges ($/kWh) Billed kWhs Power Supply Adjustment Charge ($/kWh) Billed kWhs Community Benefit Charges ($/kWh) Customer Assistance Program Service Area Lighting Energy Efficiency Services Regulatory Charge ($/kW) Billed kWs $500 $12.25 $500 $12.25 $0.00000 $0.00000 $0.03139 $0.03139 $0.00058 $0.00124 $0.00335 $0.00058 $0.00000 $0.00335 $2.37 $2.37 © 2018 Austin Energy 37 2020-21 Proposed Budget, Austin, TX871FY 2021 ELECTRIC TARIFF State of Texas Contract Service Beginning June 1, 2017, this rate applies to service to a facility owned and operated by the State of Texas or the Board of Regents of the University of Texas System (collectively “State”) that receives service at secondary or primary voltages with a demand equal to or greater than 500 kilowatts. A State account may be included under the service contract if: 1) it qualifies for service under the Large Service Contract schedule on May 31, 2017; or 2) at the start of the first billing month after it has reached a monthly peak demand of at least 500 kW twice during the preceding 12 billing months. Contract Term: To receive service under this rate schedule the State must enter into an exclusive sole supplier service contract to purchase its entire bundled electric service requirements within Austin Energy’s service area, with an exception for on-site back-up generation and up to one megawatt of on-site renewable generation capacity or entirety self-generation for standby rates. The contract term shall run from June 1, 2017, through the billing month that includes August 31, 2026. The City Manager or his designee may establish and agree to terms and conditions for a service contract consistent with this rate schedule. Block Power Supply Pricing: In lieu of the Power Supply Adjustment, the State’s service contract may provide a fixed power supply charge for a monthly block quantity of energy for a defined term, based on the cost of wholesale power market prices. Block pricing is contingent on the availability of authorized funding and the State’s satisfaction of credit requirements. All billed energy not subject to block pricing is subject to the variable Power Supply Adjustment (or GreenChoice® rider), as may be amended from time to time, or any other successor power or fuel adjustment schedules. The kWh block price shall be the actual wholesale kWh cost to Austin Energy of the block quantity supplied, plus a renewable portfolio charge based upon the forecast kWh price of renewable energy credits in the ERCOT market during the term of the block pricing. In lieu of the renewable portfolio charge, the State may opt to designate an equal renewable portfolio dollar value as a monthly block quantity of GreenChoice® energy by paying the per-kWh price difference between the wholesale power price paid by Austin Energy and the applicable GreenChoice® Charge for the specified quantity. Community Benefit Charges: Rebates received by the State for energy efficiency measures may be applied at the State’s option as a reduction to the monthly electric bill for the facility that implemented the measures. The State’s service contract may provide for additional engineering and staff support from Austin Energy for the identification of energy efficiency projects at State facilities. Charges for Service Area Lighting (SAL) and Customer Assistance Program (CAP) do not apply to service under this rate schedule. Terms and Conditions: This schedule is effective through the end of the State’s billing month that includes August 31, 2026. Austin Energy may provide service under this schedule as a bundled entity or, if retail deregulation is implemented in its service area, as separate, unbundled entities. Dual Feed Service charges are not applicable to a facility receiving service under this rate schedule within the capacity utilization requirements provided in the Austin Energy Fee Schedule. © 2018 Austin Energy 38 2020-21 Proposed Budget, Austin, TX872If the State is required by state or federal law to act in a manner inconsistent with the terms of this rate schedule or its service contract, then the State may upon prior written notice to Austin Energy cancel, or modify in whole or in part, this Service Contract as necessary to comply with state or federal law. For purposes of this rate schedule the State does not include a conservation and reclamation district created pursuant to Article XVI, Section 59 of the Texas Constitution. The State may opt to terminate its service contract if the City adopts a rate schedule that offers more favorable rates, terms, or conditions than provided by this rate schedule and that describes a customer class for which the State's secondary or primary voltage service accounts qualify. The State may exercise this option by providing written notice of its intent to Austin Energy and by executing the written agreement, if any, required to receive service under the new tariff. Standard Rates: Basic, energy, demand, and applicable community benefits charges will be fixed for the initial service contract period ending August 31, 2021, as set forth in Ordinance No. 20160829-004. The Austin City Council may amend these charges to be fixed for the period September 1, 2021, through August 31, 2023, and again for the period September 1, 2023, through August 31, 2026. PSA charge will be set in accordance with the appropriate rate schedule. If, during the initial service contract period ending August 31, 2021, the City Council adopts new base electric rates for State accounts receiving service contract at secondary, primary, or transmission voltages based on a comprehensive cost-of-service study, the State may opt to have its contract rates adjusted to any new rate for which an account would qualify during the initial contract term. Regulatory charge will remain fixed for the initial contract period ending August 31, 2021. For the periods of September 1, 2021, through October 31, 2023, and September 1, 2023, through August 31, 2026, the regulatory charge will be reset and fixed in accordance with the regulatory charge schedule, plus an adjustment for any over- or under-recovery of regulatory charges from the previous contract period. The regulatory charge may be adjusted during any two-year period if an over-recovery of more than 110 percent or an under-recovery of less than 90 percent of costs occurs. Regulatory charges may vary in accordance with executed contracts. 2020-21 Proposed Budget, Austin, TX873Appendix A Non-Demand Value-Of-Solar Assessment Appendices The Non-Demand Value-of-Solar, previously known as the “Value-of-Solar Rider,” is a rate schedule rider that has historically been set annually through Austin Energy’s budget approval process. The rate is based on the average of the annual Value-of-Solar assessment of the prospective year and the previous four years’ Value-of-Solar assessments based on the following methodology. Starting on January 1, 2018, the rate will be held constant; the methodology and inputs will be reviewed and updated during regular Austin Energy cost of service studies using the calculations outlined below, and any changes will be proposed through subsequent rate case proceedings: Component Definition Formula Estimated avoided cost of energy to meet electric loads as well as transmission and distribution losses, based on the solar production profile. This is inferred from forward projections of ERCOT wholesale price based on future natural gas prices. Estimated avoided cost associated with natural gas plant operations and maintenance by meeting peak load through customer-sited renewable resources. Estimated avoided cost of capital by meeting peak load through customer-sited renewable resources, inferred from ERCOT market price data. Estimated savings in transmission costs resulting from the reduction in the peak load by locally-sited renewable resources, and savings or costs related capital investments to distribution grid. Estimated avoided emissions cost to comply with local policy objectives. Energy Value Plant O&M Value Generation Capacity Value Transmission and Distribution Value Environmental Value ∑(Implied Heat Rate * Gas Price * PV Production * Risk Free Discount Factor) * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount actor) (∑ (O & M Cost * (1+Inflation) ^ year * PV Capacity * Risk Free Discount Factor)) * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount Factor) (∑ (Annual Capital Carrying Cost * PV Capacity * Risk Free Discount Factor)) * Load Match * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount Factor) (∑ (Transmission Cost * PV Capacity * Risk Free Discount Factor)) * Load Match * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount Factor) - - Where Transmission Cost is Austin Energy’s contribution to ERCOT Transmission Cost of Service (TCOS). N.B.: Distribution value is currently not calculated, but will need further review as solar penetration increases. Set at $0.015 per kWh based on estimated avoided emissions at Austin Energy emission rate and priced at the societal cost of carbon. 2020-21 Proposed Budget, Austin, TX874Historical Values October 1, 2012 January 1, 2014 January 1, 2015 January 1, 2016 January 1, 2017 January 1, 2018 Appendix B Effective Date Value-of-Solar Assessment ($/kWh) Value-of-Solar Rate ($/kWh) $0.12800 $0.10700 $0.10000 $0.09700 $0.09700 $0.08500 $0.12800 $0.10700 $0.11300 $0.10900 $0.10600 $0.09700 Demand Value-Of-Solar Assessment: Capacity less than 1,000 kW-ac The methodology and inputs will be reviewed and updated during regular Austin Energy cost of service studies using the calculations outlined below; and any changes will be proposed through subsequent rate case proceedings: Component Definition Formula Estimated avoided cost of energy to meet electric loads as well as transmission and distribution losses, based on the solar production profile. This is inferred from forward projections of ERCOT wholesale prices based on future natural gas prices and scarcity premium using ERCOT historical wholesale market prices. Estimated savings in transmission costs resulting from the reduction in the peak load by locally-sited renewable resources, and savings or costs related capital investments to distribution grid. Estimated avoided emissions cost to comply with local policy objectives. Energy Value Transmission and Distribution Value Environmental Value ∑(Effective Implied Heat Rate * Gas Price * PV Production * Risk Free Discount Factor) * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount actor) - Where Effective Implied Heat Rate = Forward Implied Heat Rate + Scarcity Premium (∑ (Transmission Cost * PV Capacity * Risk Free Discount Factor)) * Load Match * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount Factor) - Where Transmission Cost is Austin Energy’s contribution to ERCOT Transmission Cost of Service (TCOS). - N.B.: Distribution value is currently not calculated, but will need further review as solar penetration increases. Set at $0.015 per kWh based on estimated avoided emissions at Austin Energy emission rate and priced at the societal cost of carbon. 2020-21 Proposed Budget, Austin, TX875 Appendix C Demand Value-Of-Solar Assessment: Capacity greater than or equal to 1,000 kW-ac The methodology and inputs will be reviewed and updated during regular Austin Energy cost of service studies using the calculations outlined below; and any changes will be proposed through subsequent rate case proceedings: Component Definition Formula Estimated avoided cost of energy to meet electric loads as well as transmission and distribution losses, based on the solar production profile. This is inferred from forward projections of ERCOT wholesale prices based on future natural gas prices and scarcity premium using ERCOT historical wholesale market prices. Estimated avoided emissions cost to comply with local policy objectives. Energy Value Environmental Value ∑(Effective Implied Heat Rate * Gas Price * PV Production * Risk Free Discount Factor) * (1+ Loss Factor) ∑ (PV Production * Risk Free Discount actor) - Where Effective Implied Heat Rate = Forward Implied Heat Rate + Scarcity Premium Set at $0.015 per kWh based on estimated avoided emissions at Austin Energy emission rate and priced at the societal cost of carbon. 2020-21 Proposed Budget, Austin, TX876Glossary of Terms The purpose of this section is for customers to have a better understanding of the terminology used within the electric industry. Adjustment Clauses A provision in Austin Energy’s tariff that provides for periodic changes in charges or credits to a customer due to increases or decreases in certain costs over or under those included in base rates. Base Rate That portion of the total electric rate covering the general costs of doing business, except for fuel, purchased power, and other pass-thru expenses. Throughout the tariff, base rates refer to customer, electric delivery, demand, and energy charges. Billed Demand The demand upon which billing to a customer is based, as specified in a rate schedule or contract, metered demand or billed demand may be the metered demand adjusted for power factor as specified in the rate schedule. It may also be based on the contract year, a contract minimum, or a previous maximum that does not necessarily coincide with the actual measured demand of the billing period. Customer A meter, individual, firm, organization, or other electric utility that purchases electric service at one location under one rate classification, contract, or schedule. If service is supplied to a customer at more than one location, each location shall be counted as a separate customer unless the consumptions are combined before the bill is calculated. Customer Charge Customer Charge is a monthly charge to help Austin Energy recover the customer-related fixed costs that reflect the minimum amount of equipment and services needed for customers to access the electric grid. Such costs are billing, metering, collections, customer service, service drops, cost of meters, meter maintenance, and other customer-related costs; these costs vary with the addition or subtraction of customers. These costs do not vary with usage; therefore, it is appropriate to recover these costs in the Customer Charge, rather than Energy Charges. Customer Class The grouping of customers into homogeneous classes. Typically, electric utility customers are classified on a broad category of customer service: residential, general service (commercial), large general service (industrial), lighting, or contract. Some electric systems have individual customers (large users) with unique electric-use characteristics, service requirements, or other factors that set them apart from other general customer classes and thus may require a separate class designation. Delivery (Distribution) Charges The charges on an electric customer’s bill for the service of delivering or moving of electricity over the distribution system from the source of generation to the customer’s premise; sometimes referred to as Electric Delivery. Demand Charges 2020-21 Proposed Budget, Austin, TX877That portion of the charge for electric service based upon the electric capacity (kW or kVa) consumed and billed based on billing demand under an applicable rate schedule. The cost of providing electrical transmission and distribution equipment to accommodate the customer’s largest electrical load during a given period of time. Demand (kW) The rate at which electricity is being used at any one given time. Demand differs from energy use, which reflects the total amount of electricity consumed over a period of time. Demand is often measured in kilowatts, while energy use is usually measured in kilowatt-hours. The term “load” is considered synonymous with “demand.” Electric Meter A device that measures the amount of electricity a customer uses. Electric Rate The price set for a specified amount of electricity in an electric rate schedule or sales contract. Electric Reliability Council of Texas (ERCOT) An independent system operator that schedules power for the region, which represents about 90 percent of the State of Texas’s electric load. Energy Charges That portion of the charge for electric service based upon the electric energy consumed or billed. Electrical energy is usually measured in kilowatt-hours (kWh), while heat energy is usually measured in British thermal units (Btu). Energy Efficiency Programs Programs sponsored by utilities or others specifically designed to achieve energy efficiency improvements. Energy efficiency improvements reduce the energy used by specific end- use devices and systems, typically without affecting the services provided. These programs reduce overall electricity consumption. Such savings are generally achieved by substituting technically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Examples include high-efficiency appliances, efficient lighting programs, high-efficiency heating, ventilating and air conditioning (HVAC) systems or control modifications, efficient building design, advanced electric motor drives, and heat recovery systems. Energy Efficiency Service Charge Charge assessed to customers to offset the cost of energy efficiency program services offered by Austin Energy. Fuel or Power Supply Adjustment (PSA) A rate schedule that provides for an adjustment to the customer's bill for the cost of power supply. Green Pricing (GreenChoice) An optional Austin Energy service that allows customers an opportunity to support a greater level of Austin Energy’s investment in and/or purchase of power from renewable energy technologies. Participating customers pay a premium on their electric bill to cover the incremental cost of the additional renewable energy. 2020-21 Proposed Budget, Austin, TX878Inverted Rate Design A rate design for a customer class for which the unit charge for electricity increases as usage increases. Kilowatt-hour (kWh) The basic unit of electric energy equal to one kilowatt of power supplied to or taken from an electric circuit steadily for one hour. One kilowatt-hour equals 1,000 watt-hours. The number of kWhs is used to determine the energy charges on your bill. Load Factor (LF) The ratio of the average load in kilowatts supplied during a designated period to the peak or maximum load in kilowatts occurring in that period. Load factor, in percent, is derived by multiplying the kilowatt- hours in the period by 100 and dividing by the product of the maximum demand in kilowatts and the number of hours in the period. Load Profile Shows the quantity of energy used by a class of customers at specific time intervals over a 24-hour period. Load Shifting Involves shifting load from on-peak to mid- or off-peak periods. Popular applications include use of storage water heating, storage space heating, cool storage, and customer load shifts to take advantage of time-of-use or other special rates. Megawatt (MW) One megawatt equals one million watts or 1,000 kWs. Megawatt-hour (MWh) One megawatt-hour equals one million watt-hours or 1,000 kWhs. Minimum Bill A minimum charge to a customer during the applicable period of time, which is typically the customer charge. A provision in a rate schedule stating that a customer's bill cannot fall below a specified level. A minimum charge is similar to a customer charge because it is designed to recover fixed costs of services such as meter reading, billing and facilities maintenance. Although this charge does not generally recover the full cost of these services, it does give the customer a price signal that these costs do exist. Off-Peak Period of time when the need or demand for electricity on AE's system is low, such as late evenings, nights, weekends, and holidays. On-Peak Period of time when the need or demand for electricity on AE's system is high, normally during the late afternoons and early evening hours of the day from Monday through Friday, excluding holidays. Peak Load Pricing Pricing of electric service that reflects different prices for system peak periods or for hours of the day during which loads are normally high. Peak Season Pricing 2020-21 Proposed Budget, Austin, TX879Pricing of electric service that reflects different prices for system peak seasonal periods. Power Factor (PF) The ratio of real power (kW) to apparent power (kVA) at any given point and time in an electrical circuit. Generally, it is expressed as a percentage ratio. Power Factor Adjustment A clause in a rate schedule that provides for an adjustment in the billing if the customer's power factor varies from a specified percentage or range of percentages. Primary Voltage The voltage of the circuit supplying power to a transformer is called the primary voltage, as opposed to the output voltage or load-supply voltage, which is called secondary voltage. In power supply practice the primary is almost always the high-voltage side and the secondary the low-voltage side of a transformer, except at generating stations. Public Street and Highway Lighting Electricity supplied and services rendered for the purpose of lighting streets, highways, parks, and for other public places; or for traffic or other signal system service for municipalities, or for other divisions or agencies of State or Federal governments. Rate Schedule A statement of the rates, charges, and terms and conditions governing the provision of electric service that has been accepted by a regulatory body with established oversight authority. Rate Structure The design and organization of billing charges to customers. A rate structure can comprise one or more of the rate schedules defined herein. Seasonal Rates Rate schedules that are structured for the different seasons of the year. The electric rate schedule usually considers demand based on weather and other factors. Secondary Voltage The output voltage or load-supply voltage of a transformer or substation. In power supply practice secondary voltage is generally the low-voltage side of a transformer, except at generating stations. Single-Phase Service Service where facility (e.g., house, office, warehouse) has two energized wires coming into it. Typically serves smaller needs of 120V/240V. Requires less and simpler equipment and infrastructure to support and tends to be less expensive to install and maintain. Special Contract Rate Schedule An electric rate schedule for an electric service agreement between Austin Energy and another party in addition to, or independent of, any standard rate schedule. Standby Service Service that is not normally used but that is available through a permanent connection in lieu of, or as a supplement to, the usual source of supply. 2020-21 Proposed Budget, Austin, TX880Tariff A published collection of rate schedules, charges, terms of service, rules and conditions under which the Austin Energy provides electric service to the public. Thermal Energy Storage (TES) Is a technology that stocks thermal energy by heating or cooling a storage medium so that the stored energy can be used later for heating and cooling applications and power generation. Three-Phase Service Electric energy that is transmitted by three or four wires to the customer. Relatively high voltage customers usually receive three-phase power. Time-of-Use (TOU) or Time-of-Day Rates A rate structure that prices electricity at different rates, reflecting the changes in the AE's costs of providing electricity at different times of the day. With time-of-use rates, higher prices are charged during the time when the electric system experiences its peak demand and marginal (incremental) costs are highest. Time-of-use rates better reflect the cost of providing service, sending more accurate price indicators to customers than non-time-of-use rates. Ultimately, these rates encourage efficient consumption, conservation and shifting of load to times of lower system demand. Value of Service A utility pricing concept in which the usefulness or necessity of a service to a customer group replaces or supplements cost factors as a major influence on the rates charged to the group. In ratemaking, this means that the price charged reflects the service's value to the customer rather than its cost to the producer. Value of service need not equal the cost of service; for example, Austin Energy’s Value-of-Solar is such a product. Volt (V) The unit of electromotive force or electric pressure analogous to water pressure in pounds per square inch. It is the electromotive force that, if steadily applied to a circuit having a resistance of one ohm, will produce a current of one ampere. Watt (W) The electrical unit of real power or rate of doing work. The rate of energy transfers equivalent to one ampere flowing due to an electrical pressure of one volt at unity power factor. One watt is equivalent to approximately 1/746 horsepower, or one joule per second. 2020-21 Proposed Budget, Austin, TX881