Explanation of VEPGA Rates & Schedules (What you need to know)

Transcription

1 Virginia Energy Purchasing Governmental Association (VEPGA) Explanation of VEPGA Rates & Schedules (What you need to know) MAY 4, 2017 Presented by: Glenn A. Watkins President/Senior Economist Technical Associates, Inc Santa Rosa Road, Suite 130 Richmond, Virginia 23229

2 RATE DESIGN CONCEPTS & ELECTRIC TERMS OF ART --- BASIC RATE ELEMENTS --- Customer Charges (Fixed Per Customer) Demand Charges (Per kw) Energy Charges (Per kwh) Cost of Service Customer Accounting & Billing Metering Customer Service On-Peak Off-Peak Seasonal Reactive (kvar) Capacity Costs On-Peak Off-Peak Seasonal Variable Costs

3 Demand & Energy Charge Rate Structures Flat Rates (Per kw or kwh) Inverted and Declining Blocks Price Per Unit Increases or Decreases as Total kw or kwh Increases Diurnal and Seasonal Time of Use Load Factor Based (Energy Use of Demand Blocking) Voltage Differentiation (Sub-transmission, Primary, & Secondary voltage)

4 Revenue Collection Within VEPGA Rates I. BASE RATES Fixed Rates Per Contract Pre-2008 Generating Units Distribution Company Overhead II. RIDERS Automatic Recovery (Updated Annually) Fuel Transmission (FERC determined) New Generation Projects (existing generation in base rates plus underground distribution upgrades.)

5 VEPGA Base Rate Schedules SCHEDULE Metered Services DESCRIPTION 100 Miscellaneous Light & Power 110 All-Electric Service & Dual Fuel Systems 120 Water & Sewage Pumping & Sewage Disposal 130 Large Miscellaneous Light & Power 131 Thermal Storage 132 Large Misc. Light & Power Variable Pricing 134 Large Misc. Light & Power Transmission or Primary SCHEDULE DESCRIPTION 102 Traffic Signals & Control 150 Roadway, Directional & Area Lighting High Pressure Sodium 151 Roadway, Directional & Area Lighting Incandescent, Mercury Vapor & Urbanlites 152 Street Lighting Fixtures on Bridges & Overpasses 153 Street Lighting Special Fixtures 154 Customer-Owned Lighting Facilities (Operating Only During Night-Time Hours) SMH Lighting Services Streetscape Metal Halide SSL Solid State (LED) Outdoor Lighting

6 VEPGA Metered Rate Schedules (Base Rates) W/O Demand W/ Demand W/O Demand 23% of KWH 58% of Accounts 12% of KWH 23% of Accounts RATE SCHEDULES W/ Demand % of KWH 45% of KWH 9% of KWH 3% of KWH 13% of Accts 5% of Accounts <1% of Accounts <1% of Accounts 4% of KWH <1% of Accounts Approx. mwh 1,051, , ,625 2,020, , , ,085 # of Accounts 12,675 5,100 2,840 1, Average Annual kwh/account 83, ,300 63,000 1,994,700 82,240,000 6,773,200 2,298,600 RATE ELEMENT Distribution Customer Charges $6.59 $6.59 $6.59 $6.59 $6.59 $91.41 $91.41 $91.41 $ Demand Charges None None None None None Declining/kW Declining/kW Declining/kW Declining/kW (voltage diff.) (voltage diff.) (voltage diff.) (voltage diff.) Reactive Demand None None None None None Flat/kVAR Flat/kVAR Flat/kVAR None Energy Charges Flat/kWh Flat/kWh Flat/kWh Flat/kWh Flat/kWh None None None None Electricity Supply (Production) Demand Charges None None None None None Inverted/kW 1/ Inverted/kW 1/ Inverted/kW 1/ Inverted/Kw (Seasonal TOU Ratchet) (Seasonal TOU Ratchet) (Seasonal TOU Ratchet) (voltage diff.) (Annual Ratchet) Energy Charges Seasonal kwh per kw Diurnal Critical Day Flat/kWh kwh per kw Flat/kWh Seasonal Flat/kWh Declining/kWh Declining/kWh Declining/kWh Designation (Declining) (Declining) (TOU)/kWh 1/ Flat per kw charge less declining demand credit, which results in an inverted rate per kw.

7 VEPGA Riders (Effective 7/1/2017) Rate Schedule Rider Lighting Transmission (Rider T) Energy Energy Energy Demand Demand Demand Demand Energy Generation Virginia City Hybrid (Rider S) Energy Energy Energy Demand Demand Demand Energy Energy Bear Garden (Rider R) Energy Energy Energy Demand Demand Demand Energy Energy Warren County (Rider W) Energy Energy Energy Demand Demand Demand Energy Energy Bio-Mass Facilities (Rider B) Energy Energy Energy Demand Demand Demand Energy Energy Brunswick County (Rider BW) Energy Energy Energy Demand Demand Demand Energy Energy Greenville County (Rider GV) Energy Energy Energy Demand Demand Demand Energy Energy 2016 Solar (Rider US-2) Energy Energy Energy Demand Demand Demand Energy Energy Underground- Phase I & II (Rider U) Energy Energy Energy Demand Demand Demand Energy Energy Fuel (Rider A) Energy (All Rate Schedules Same Rate)

8 Considerations for Switching 100 to 130 (35% of Potential Accounts) Or 130 to 100 (32% of Potential Accounts) First, and foremost: (1) Monthly and annual load factor - Load factor is the relationship of energy usage (KWH) to maximum load (KW) Monthly load factor daily or weekly variations Annual load factor seasonal use patterns (2) Does facility use electricity for heating (as compared to natural gas or oil)? (3) Does facility have significant electric air conditioning load relative to total load? (4) Does facility utilize machinery or equipment that requires significant start-up load each work day or at the beginning of each work week? (5) Is facility not operated or significantly curtailed during the Summer or Winter seasons?

9 Comparison of Rate 100 and Rate 130 (Total Rate Including All Riders & Fuel) Customer Charge - $6.59 Energy/KWH Demand: 1 st 150 KWH/KW Next 150 KWH/KW Next 150 KWH/KW Add l KWH Fuel/KWH: (No Demand Ratchet) Customer Charge - $91.41 Energy/KWH Demand (Secondary Voltage): Electric Supply/KW $ Distribution/KW $3.181 Note: Above energy and demand charges are for 1 st 24,000 KWH and 700 KW. Declining block rates thereafter. Fuel/KWH: Ratchets: Electric Supply 90% of June-Sept. Distribution 100% of previous 11 mths.

10 Avg 130 Customer (166,225 KWH/420 KW) (55% Load Factor) Rate 130 Rate Rate Percent Savings Total Bill $13,365 $15, % 60 KW At 55% Load Factor 60 KW At 40% Load Factor 60 KW At 25% Load Factor 24,090 KWH 17,520 KWH 10,950 KWH Rate 130 Rate 130 Rate 130 Rate Rate Percent Rate Rate Percent Rate Rate Percent Savings Savings Savings $2,002 $2, % $1,725 $1, % $1,448 $1, %