Recommendation No. 20221114-11B: Austin Energy’s Base Rate Proposal — original pdf

Recommendation

BOARD/COMMISSION RECOMMENDATION Electric Utility Commission Recommendation No. 20221114-11B Resolution on Austin Energy’s Base Rate Proposal RESOLVED, the Electric Utility Commission urges the Austin City Council to: 1. Reject the Austin Energy proposed base rate revenue increase of $35.7 million and the IHE recommendation of $31.3 million increase to Austin Energy’s base rates; 2. Adopt a Revenue Requirement of at least $6.5 million as recommended by the ICA but no more than $15 million, roughly half of the IHE’s proposal; 3. Adopt a Revenue Distribution that would not increase the rates on any customer class more than 7.5%, such as the attached table (WorkPaper H-3.1.1) produced by Austin Energy for the EUC $15 million scenario which limits the rate increase to 7.5% on any customer class. The table is illustrative of a possible cost allocation by rate class with a revenue increase of $15 million limited to a maximum of 7.5 percent, but is not meant to be a specific recommendation from the EUC on cost allocation. 4. Consider adopting the Independent Consumer Advocates proposed residential rate design with the following scope: a. Increase In-City Residential Monthly Customer Charges by no more than 20% or $2, b. Change the current 5 tier structure to 4 tiers as follows: Tier 1 (0 – 500); Tier 2 (501 – 1300); Tier 3 (1301 – 2500); Tier 4 (Over 2500). c. Adopt tier rates similar to that proposed by the ICA, or such as (Tier 1 – 4) those attached in the scenario “WorkPaper H-3.1.1”: 0.03061 per Kwh 0.06200 per Kwh 0.09176 per Kwh 0.11317 per Kwh d. The rates above can be scaled up or scaled down proportionally to achieve the residential target revenue requirement target adjusted for any higher customer charge. Vice Chair Dave Tuttle; Commissioner Randy Chapman; Commissioner Karen Hadden; Commissioner Makenna Jonker; Commissioner Cyrus Reed; Commissioner Kay Trostle Chair Marty Hopkins; Commissioner Marshall Bowen; Commissioner Cary Ferchill Vote: For: 6-3 Against: Abstentions: None Off Dais: None Absences: None Vacancies: District 2, District 3 Attest: Robin Otto, Staff Liaison Austin Energy 2022 Rate Review Class Base Revenue Changes Page 1 EUC Scenario Proposal, $15 Million increase, 7.5% maximum, $12 Customer Charge, 4 steep tiers Austin Energy Filing Proposed Rebuttal Description At Current Rates Change % Change Change % Change Residential Secondary Voltage < 10 kW Secondary Voltage ≥ 10 < 300 kW Secondary Voltage ≥ 300 kW Primary Voltage < 3 MW Primary Voltage ≥ 3 < 20 MW Primary Voltage ≥ 20 MW @ 85% aLF Transmission Transmission Voltage ≥ 20 MW @ 85% aLF Total Excluding Lighting $ 298,139,951 22,062,516 146,379,682 97,431,981 8,571,888 24,590,380 33,906,126 801,058 4,236,381 636,119,964 $ $ 344,341,212 23,367,720 134,757,836 92,199,799 9,087,842 25,248,506 37,071,165 830,992 3,943,613 670,848,685 $ $ 46,201,261 1,305,204 (11,621,847) (5,232,182) 515,953 658,125 3,165,039 29,934 (292,768) 34,728,721 $ City-Owned Private Outdoor Lighting Customer-Owned Non-Metered Lighting Customer-Owned Metered Lighting $ $ 2,141,558 45,878 316,344 3,013,212 52,484 405,757 $ $ $ 871,653 6,606 89,412 15.5% 5.9% -7.9% -5.4% 6.0% 2.7% 9.3% 3.7% -6.9% 5.5% 40.7% 14.4% 28.3% 5.6% $ $ 320,518,499 23,716,141.52 136,681,467.68 93,857,623.88 9,090,722.78 25,150,271.00 36,449,727.05 834,059.59 4,166,558.37 650,465,071 $ 22,378,548 1,653,625 (9,698,215) (3,574,357) 518,834 559,891 2,543,601 33,002 (69,823) 14,345,107 $ $ $ 2,952,790 51,145 395,004 811,232 5,268 78,660 7.5% 7.5% -6.6% -3.7% 6.1% 2.3% 7.5% 4.1% -1.6% 4.8% 37.9% 11.5% 24.9% 4.9% Grand Total $ 638,623,744 $ 674,320,137 $ 35,696,393 $ 653,864,010 $ 15,240,266 Work Paper H-3.1.1 Residential (Inside City of Austin) $15 M Increase, 7.5% Maximum Increase $12 Customer Charge, 4 steep tiers (.03061,.0620, .09176, .11317) Breakpoints at 500, 1300, and 2500 kWh WP H-3.1.1 Bill Impact Tables on an Average Basis for the Residential Customer Class (Inside City of Austin) Existing Cost of Service Proposed Page 2 # of Bills (B) % of Total Bills (C) Cum. % of Total Bills (D) Avg. Bill Amount Change, $ (F) (G) Change, % (H) Change, $ (J) Change, % (K) Energy (kWh) per Month (A) Annual 0 0 and Belo 1 - 250 (kW 676,874 251 - 500 ( 1,168,559 501 - 750 ( 1,001,436 751 - 1000 665,866 410,554 1001 - 125 245,697 1251 - 150 144,511 1501 - 175 85,178 1751 - 200 83,209 2001 - 250 32,774 2501 - 300 14,741 3001 - 350 7,406 3501 - 400 11,235 4001 and A 4,548,040 No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Avg. Bill Amount (E) Current- Inside $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10.00 19.25 37.75 60.04 86.12 114.67 145.70 178.61 213.39 265.57 338.88 415.95 493.01 531.55 0.0% 14.9% 25.7% 22.0% 14.6% 9.0% 5.4% 3.2% 1.9% 1.8% 0.7% 0.3% 0.2% 0.2% 0.0% 14.9% 40.6% 62.6% 77.2% 86.3% 91.7% 94.8% 96.7% 98.5% 99.3% 99.6% 99.8% 100.0% Avg. Bill Amount (I) Proposed- Inside $ $ $ $ $ $ $ $ $ $ $ $ $ $ 12.00 21.57 40.72 63.80 90.79 117.79 147.02 181.46 215.90 267.55 341.78 421.36 500.94 540.73 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2.00 2.32 2.97 3.76 4.67 3.12 1.32 2.85 2.51 1.98 2.90 5.41 7.93 9.18 20.00% 12.05% 7.87% 6.26% 5.42% 2.72% 0.91% 1.60% 1.18% 0.75% 0.86% 1.30% 1.61% 1.73% COS 44.98 53.26 69.82 86.38 102.94 119.49 136.05 152.61 169.17 194.00 227.12 260.23 293.35 309.90 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 34.98 34.01 32.07 26.34 16.82 4.82 (9.65) (26.00) (44.22) (71.57) (111.76) (155.72) (199.66) (221.65) 349.80% 176.68% 84.95% 43.87% 19.53% 4.20% -6.62% -14.56% -20.72% -26.95% -32.98% -37.44% -40.50% -41.70%