New Rate Structure Encouraging greater efficiency

Transcription

1 New Rate Structure Encouraging greater efficiency Presentation for CHENACT Project Stephen Worme Chief Marketing Officer March 31, 2010

2 Agenda Tariffs for Hotels Secondary Voltage Power (SVP) Large Power (LP) Tariff Changes Reason for Changes Impacts Impact Mitigation

3 Tariffs for Hotels Secondary Voltage Power BL&P owns transformer (except in special cases) Service metered on secondary side of transformer has a demand charge for services of any type with a demand greater than 5 kva for all services that require 3 phase power

4 Secondary Voltage Power (SVP) Primary SECONDARY VOLTAGE POWER Company-owned Transformer Secondary M Three phase Secondary Services Single Phase > 200 Amps Single Phase > 5 kva (optional)

5 Tariffs for Hotels(cont d) Large Power Customer receiving power at primary voltage owns transformer (except in special cases) Service metered on primary side of transformer has a demand charge for all services of any type with a demand greater than 50 kva

6 Large Power (LP) LARGE POWER Primary M Secondary Three phase Primary Services Customer-owned Transformer

7 Commercial/Industrial 275 kva and 100,000 kwh (based on CARILEC Survey Dec 2008) Montserrat Dominica Bermuda Curacao Jamaica Cayman St. Lucia US VI Belize Aruba Barbados Grenada Guadeloupe Trinidad % % % % % % % % % 65.40% 65.10% 36.70% % %

8 Tariff Changes

9 Secondary Voltage Power and Large Power Bills Made up of 4 Charges: Customer Charge: recovers customer related costs such as meters, service installation, meter reading, billing, payments, etc. + Demand Charge: recovers demand related costs associated with production of electricity such as poles, generators, substations, lines, etc. + Base Energy charge: recovers non fuel variable energy related costs associated with production of electricity including O & M, etc. + Fuel Charge: recovers only fuel related costs

10 Fuel Clause Adjustment

11 Change in Fuel Clause Adjustment Previous: Fuel Cost for the month 2.64c/kWh (in Base Rate) Sales for the month New: Fuel Cost for the month Sales for the month (this is being done in conjunction with removal of 2.64c/kWh from Base Energy Rate) Note: that the projected fuel cost for the month includes any under or over recovery of fuel cost carried forward from the previous month

12 Fuel Clause Adjustment What does change mean? Fuel Clause Adjustment goes up by 2.64 cents/kwh Base Energy Charge goes down by 2.64 cents/kwh Change has no impact on customer FCA for March is cent/kwh To compare directly with previous months would have to subtract 2.64 cents/kwh This would be equivalent to cents/kwh using previous formula

13 Secondary Voltage Power

14 SVP Customer Charge SVP Customer Charge Customer Charge $ / month , , , ,000 Energy Used (kwh) New Old

15 SVP Demand Charge SVP Demand Charge Demand Charge $ / kva , , , ,000 Energy Used (kwh) New Old

16 SVP Base Energy Charge SVP Base Energy Charge Base Energy cents / kwh , , , ,000 Energy Used (kwh) New Old

17 SVP Changes Customer + Demand + Base Energy + Fuel Previous $0 + $4/kVA + $0.206 /kwh + FCA ( ) New $20 + $24/kVA + $0.138 /kwh + ( FCA) Difference $20 + $20 /kva + $ /kwh + $0

18 Large Power

19 LP Customer Charge LP Customer Charge Customer Charge $ / month , , , ,000 Energy Used (kwh) New Old

20 LP Demand Charge LP Demand Charge Demand Charge $ / kva , , , ,000 Energy Used (kwh) New Old

21 LP Base Energy Charge LP Base Energy Charge Base Energy cents / kwh , , , ,000 Energy Used (kwh) New Old

22 LP Changes Customer + Demand + Base Energy + Fuel Previous $0 + $3/kVA + $0.196 /kwh + FCA ( ) New $300 + $22/kVA + $0.117 /kwh + ( FCA) Difference $300 + $19 /kva + $ /kwh + $0

23 Reasons For Change to Structure

24 Demand related Costs

25 Demand related Costs

26 Demand related Costs

27 Demand related Costs

28 Impacts

29 Sample SVP Bill Calculation 50 kva and 15,000 kwh Customer Charge: = $20.00 Demand Charge = $1, Base Energy Charge 15,000 c/kwh = $2, Fuel Charge: 15, c/kwh = $4, Total = $8, Total at Old Rate = $7, Difference = $ (5.2%)

30 Changes for Different Usage Levels SVP kva kwh kwh/ kva Old Bill New Bill Change Change (exc VAT) (exc VAT) $ % 50 5, $2,694 $3,506 $ % 50 10, $5,189 $5,793 $ % 50 15, $7,683 $8,079 $ % 50 20, $10,178 $10,366 $ % 50 25, $12,672 $12,652 $20 0.2%

31 SVP Break Even SVP Breakeven Point for Old vs New Rates kwh/kva Demand (kva)

32 Sample LP Bill Calculation 200 kva and 60,000 kwh Customer Charge: = $ Demand Charge = $4, Base Energy Charge 60,000 c/kwh = $7, Fuel Charge: 60, c/kwh = $19, Total = $30, Total at Old Rate = $29, Difference = $ (3.2%)

33 Changes for Different Usage Levels LP kva kwh kwh/ kva Old Bill (exc VAT) New Bill (exc VAT) Change $ Change % , $10,378 $13,366 $3, % , $20,156 $22,032 $1, % , $29,934 $30,698 $ % , $39,712 $39,364 $ % , $49,490 $48,030 $1, %

34 LP Break Even LP Breakeven Point for Old vs New Rates kwh/kva ,000 Demand (kva)

35 Mitigating Impacts

36 Mitigation Reduce Maximum Demand Power Factor Correction Load Management Peak Reduction Load shifting

37 Power Factor Correction and Load Management kva Hrs

38 Load Shifting kva Hrs

39 Mitigation (cont d) Reduce Energy Consumption Energy Efficiency technologies Cut down on waste

40 Energy Efficiency Energy used = power required by appliance x length of time it is used Opportunities: Purchase or retrofit more energy efficient lights, equipment, etc. (i.e. ones which have lower power requirement for same output) Reduce length of time it is used (turn off when not in use)

41 Load and Energy Reduction kw Hrs

42 Mitigation (cont d) New Pilot Rates Time of Use (TOU) Tariff Interruptible Service (IS) Rider

43 New Pilot Rates Time of Use (TOU) tariff Interruptible Service (IS) Rider Renewable Energy (RE) Rider 2 year pilot programmes to test applicability and adequacy of rates with limits to participation These are voluntary rates may not be suitable to all

44 Time of Use

45 Time Of Use Tariff Pilot Higher rate during peak and lower rate during off peak TOU provides an incentive for customers to shift load to lower cost, off peak periods 2 year pilot programme

46 Time Of Use Tariff Pilot (cont d) Limited to maximum of 30 Large Power (LP) primary service customers with a minimum peak demand of 50 kva over the last 12 months Maximum of 6 accounts per entity on tariff Objective of pilot is to test applicability and adequacy of the rates and of the billing processes

47 Time Of Use Rate Customer Charge $300 Demand Charge (per kva) Base Energy Peak Charge Off peak (per kwh) Fuel Charge Peak (per kwh) Off peak $18 $0.219 $ x FCA 0.92 x FCA

48 Time Of Use Rate (cont d) Peak period am to 9.00 pm Monday to Friday except annually published Public holidays Off peak period All hours other than peak hours

49 TOU Bill Calculation Demand 300 kva, Energy Usage = 90,000 kwh, 40% on peak FCA $ BILL = Customer Charge $300 + Demand Charge 300 x $18 + Energy Charge 36,000 x $ ,000 x $ Fuel Charge 36,000 x 1.12 x $ ,000 x 0.92 x TOU = $45, VAT (LP = $46, VAT)

50 Benefits of TOU To Customer: Will reduce customer s cost of electricity if adequate portion is used off peak (as seen in example) To Company : Will reduces the peak demand the Company has to provide for with demand being one of the Company s major cost drivers

51 Time of Use Shift Load to Off Peak 180, , ,000 kw 120, ,000 80,000 60,000 40, Hrs

52 Interruptible Service Rider

53 Interruptible Service Rider Pilot IS Rider provides an opportunity for customers, who have flexibility in usage or standby capability, to reduce their electricity cost if they can interrupt their service within 30 minutes of being requested to do so. 2 year pilot programme

54 Interruptible Service Rider Pilot (cont d) Limited to maximum of 20 SVP and LP customers having a maximum peak demand of at least 300 kva over the last 6 months Customer has a Monthly Interruptible Demand of not less than 100 kva Objective of pilot is to test the applicability and adequacy of the rates and of the billing processes

55 Interruptible Service Capacity Credits Interruption between 8.00 am and 9.00 pm on weekdays except public holidays $12 / kva of Monthly Interruptible Demand (MID) even if no interruption is required Interruption between 8.00 am and 4.30 pm on weekdays except public holidays $9 / kva of Monthly Interruptible Demand (MID) even if no interruption is required

56 Definitions Monthly Interruptible Demand Average Demand (varies monthly) Firm Demand Level (fixed by contract) = MID = AD = FDL MID = AD FDL AD = kwh consumed for month Days of service x 24 x 0.85

57 Interruptible Period kva AD MID FDL Hrs

58 Calculation of IS Credit Energy Usage for month = 150,000 kwh Billing Period = 31 days Time interrupted for month = 10 hrs FDL = 100 kva Interruption between 8.00 am and 9.00 pm AD = 150,000/(31 x 24 10)/0.85 = 240 MID = = 140 Credit = 140 x $12 = $1,680 A credit is paid regardless of whether an interruption takes place in the month or not.

59 Non performance If a customer does not reduce to FDL or below when called upon to do so, the following will occur: The customer will not receive a credit for that month Instead, the equivalent amount of what the customer would have been paid as a credit will be charged to the customer s bill.

60 Benefits of IS To Customer: Will reduce the customer s electricity cost if they have flexibility with their load Better utilisation of customer s standby generation plant where this is installed To Company : Can reduce the amount of the spare capacity the Company has to have available which has major cost implications

61 Any Questions or Comments?

62 Renewable Energy Rider

63 Renewable Energy Rider Pilot For solar photovoltaic and small wind systems Available for customers on all tariffs except for those with IS Rider and streetlight tariff. 2 year pilot programme Limited to 200 customers Maximum size of system is 5 kw for DS, GS and Employee tariffs and 50 kw for others Rated output should not exceed 50% of customer s main breaker capacity

64 Renewable Energy Rider Pilot (cont d) Interconnection agreement required GEED and BL&P inspections required Power Purchase agreement required A meter measures separately all energy going from the grid into the customer s premise and all energy produced by customer on to the grid

65 Renewable Energy Rider Pilot (cont d) A meter measures energy produced by renewable system All energy measured going into the customer s premise is billed to customer at normal tariff All energy measured going from customer s premise on to grid is credited to customer s account Any net credit is refunded to customer at end of every calendar year

66 Renewable Energy Credits Credit for energy sold on to electricity grid 1.8 x Fuel Clause Adjustment Minimum credit is 31.5 cents/kwh (FCA 17.5 cents /kwh)

67 Renewable Energy Connection kwh G 300 kwh M GRID M Customer s load 100 kwh 200 kwh

68 Bill Calculation Connection 1 DS BILL = Customer Charge $10 + Energy charge 150 x $ x $ Fuel charge 300 x $ = $ VAT = $ Renewable Credit 100 x 1.8 x $ = $57.47 Net Bill = $ $57.47 = $ (without VAT $ $57.47 = $97.22)

69 Renewable Energy Connection Example 3,000 kwh G M GRID M Customer s load 15,000 kwh

70 Bill Calculation SVP BILL = Customer Charge $20 + Demand Charge 50 x 24 + Energy charge 15,000 x Fuel charge 15,000 x $ = $8, VAT = $9, Renewable Credit 3,000 x 1.8 x $ = $1, Net Bill = $9, $1, = $7, (without VAT $8, $1, = $6,339.06)

71 Connection 1 vs Connection 2 Net Bill for Connection 1 = $ ($97.22 without VAT) Net Bill for Connection 2 = $ ($81.33 without VAT) Difference Connection 2 1 = $1.04 ( $15.89 without VAT)

72 Benefits of RE To Customer: Can reduce customer s electricity cost as fuel prices get higher To Company : Diversification of fuel mix To Country Reduced reliance on fossil fuels Reduced negative impact on environment

73 Any Questions or Comments?

74 First Look at the New Domestic Service Electricity Bill IMPROVING BILLING INFORMATION July 20,

75 The New Look New Electricity Bill Reddy Messages will contain important messages, including reminders and energy saving tips. Account Activity shows all financial transactions since the last billing. and the Total amount the customer is required to pay. Billing Detail will show the details of how every component of the bill (customer charges, energy, VAT and fuel) is calculated. The Billing Summary shows reading and usage information for the present and previous months. The Bill Stub is detachable and can be brought in or mailed with a payment. The Monthly Usage Graph shows usage for up to thirteen months, enabling customers to track usage. July 20,

76 The Barbados Light & Power Company Limited Garrison Hill, St. Michael, BB11000, Barbados (246) (Voice) (Fax) THANK YOU. QUESTION PERIOD July 20,