Record No: CB 119633    Version: 1 Council Bill No: CB 119633
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 9/30/2019
Ordinance No: Ord 125958
Title: AN ORDINANCE relating to the rates, terms, and conditions for the use and sale of electricity supplied by the City Light Department for 2020; amending Seattle Municipal Code (SMC) Sections 21.49.030, 21.49.052, 21.49.055, 21.49.057, and 21.49.081; adding a new Section 21.49.070 to the SMC; and ratifying and confirming certain prior acts.
Sponsors: Teresa Mosqueda
Attachments: 1. Affidavit of Publication
Supporting documents: 1. Summary and Fiscal Note, 2. Summary Ex 1 - Burien Rate Differential Increase Letter, 3. Rate Pilot Presentation, 4. Memo - Authorization of Changes to City Light Rates, 5. Signed Ordinance 125958

CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

title

AN ORDINANCE relating to the rates, terms, and conditions for the use and sale of electricity supplied by the City Light Department for 2020; amending Seattle Municipal Code (SMC) Sections 21.49.030, 21.49.052, 21.49.055, 21.49.057, and 21.49.081; adding a new Section 21.49.070 to the SMC; and ratifying and confirming certain prior acts.

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WHEREAS, Ordinance 125709, adopted by the City Council on November 19, 2018, established retail electric rates effective January 1, 2020; and

WHEREAS, circumstances have occurred that require technical changes to certain rates and provisions; and

WHEREAS, the City Light Department (Department) serves customers in the City of Burien under the terms of a franchise agreement adopted by City Council via Ordinance 124572 on September 15, 2014; and

WHEREAS, the City of Burien, in a letter dated December 28, 2018, exercised an option in its franchise agreement that has the effect of increasing rates approximately 2 percent for customers located within Burien city limits, effective January 1, 2020; and

WHEREAS, the BPA pass through mechanism passes through in rates any cost impacts of changes in the Bonneville Power Administration power purchase contract, which is typically updated biennially; and

WHEREAS, changes in BPA contract costs may be sufficiently small that implementing a standalone rate adjustment in the timeframe set forth by the BPA pass through is not useful to customers or the Department; and

WHEREAS, customer behavior has indicated the need for the Department to have flexibility in the manner it structures its fees associated with electric charging stations; and

WHEREAS, the City Council has reviewed the terms, rates, and conditions set forth within this ordinance and has determined that the supporting reasoning is sound and prudent; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Subsection 21.49.030.A of the Seattle Municipal Code, which section was last amended by Ordinance 125709, is amended as follows:

21.49.030 Residential rates (Schedules RSC, RST, RSS, RSH, RSB, RSE, and RSL)

A. Schedules RSC, RST, RSS, RSH, RSB, RSE, and RSL are for all separately metered residential services. For all residential rate schedules, summer billing is defined as April 1 through September 30, and winter billing is defined as all other days. For all residential rate schedules, the First Block energy charge shall apply to the first 10 kWh per day for summer billing, and the first 16 kWh per day for winter billing. The End Block energy charge shall be applied to all additional kWh.

* * *

Schedule RSB (Residential: Burien)

 

RSB

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Base Service Charge  cents per meter per day

17.61

18.57

((19.05)) 19.41

First Block Energy Charge  cents per kWh

7.96

9.34

((10.63)) 10.83

End Block Energy Charge  cents per kWh

13.70

13.70

((13.70)) 13.96

First Avenue South 1 Undergrounding Charge cents per kWh

0.37

0.37

0.37

First Avenue South 2 Undergrounding Charge cents per kWh

0.13

0.13

0.13

 

* * *

Section 2. Subsection 21.49.052.A of the Seattle Municipal Code, which section was last amended by Ordinance 125709, is amended as follows:

21.49.052 Small general service (Schedules SMC, SMT, SMS, SMH, SMB, SMD, SME, and SML)

A. Small general service is general service provided to customers who are not demand metered or, if demand metered, have had in the previous calendar year more than half of their normal billings at less than 50 kW of maximum demand. Classification of new customers as small general service customers will be based on the Department's estimate of maximum demand in the current year. Customers who are assigned flat rate bills shall be charged according to small general service rates.

* * *

Schedule SMB (Small General Service: Burien)

SMB

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Energy Charge  cents per kWh

9.74

10.18

((10.71)) 10.92

Minimum Charge  dollars per meter per day

$0.33

$0.40

(($0.41)) $0.42

First Avenue South 1 Undergrounding Charge cents per kWh

0.37

0.37

0.37

First Avenue South 2 Undergrounding Charge cents per kWh

0.13

0.13

0.13

Power Factor Charge cents per kVarh

$0.15

$0.15

$0.15

Transformer investment credit per kW of monthly maximum demand

$0.27

$0.26

$0.26

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

* * *

Section 3. Subsection 21.49.055.A of the Seattle Municipal Code, which section was last amended by Ordinance 125709, is amended as follows:

21.49.055 Medium general services (Schedules MDC, MDT, MDS, MDH, MDB, MDD, MDE, and MDL)

A. Medium general service is general service provided to customers who have in the previous calendar year half or more than half of their normal billings at 50 kW of maximum demand or greater and have more than half of their normal billings at less than 1,000 kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

* * *

Schedule MDB (Medium Standard General Service: Burien)

 

MDB

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Energy Charge  cents per kWh

7.70

8.01

((8.47)) 8.62

Demand Charge dollars per kW

$3.65

$4.03

(($4.12)) $4.20

Minimum Charge  dollars per meter per day

$0.85

$1.29

(($1.32)) $1.34

First Avenue South 1 Undergrounding Charge cents per kWh

0.37

0.37

0.37

First Avenue South 2 Undergrounding Charge cents per kWh

0.13

0.13

0.13

Power Factor Charge cents per kVarh

$0.15

$0.15

$0.15

Transformer Investment Credit per kW of monthly maximum demand

$0.27

$0.26

$0.26

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

 

* * *

Section 4. Subsection 21.49.057.A of the Seattle Municipal Code, which section was last amended by Ordinance 125709, is amended as follows:

21.49.057 Large general service (Schedules LGC, LGT, LGS, LGH, LGD, LGB, LGE, and LGL)

A. Large general service is network general service provided to customers who have in the previous calendar year half or more than half of their normal billings at 1,000 kW of maximum demand or greater, and also standard general service provided to customers who have in the previous calendar year half or more than half of their normal billings at 1,000 kW of maximum demand or greater and have more than half of their normal billings at less than 10,000 kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

* * *

Schedule LGB (Large Standard General Service: Burien)

LGB

Effective January 1, 2018

Effective January 1, 2019

Effective January 1, 2020

Energy Charge - Peak cents per kWh

8.85

9.07

((9.59)) 9.77

Energy Charge - Off-Peak cents per kWh

5.85

6.04

((6.39)) 6.51

Demand Charge - Peak dollars per kW

$3.31

$3.88

(($3.97)) $4.04

Demand Charge - Off-Peak dollars per kW

$0.29

$0.28

$0.28

Minimum Charge  dollars per meter per day

$30.07

$30.40

(($31.17)) $31.76

First Avenue South 1 Undergrounding Charge cents per kWh

0.37

0.37

0.37

First Avenue South 2 Undergrounding Charge cents per kWh

0.13

0.13

0.13

Power Factor Charge cents per kVarh

$0.15

$0.15

$0.15

Transformer investment credit per kW of monthly maximum demand

$0.27

$0.26

$0.26

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

 

* * *

Section 6. A new Section 21.49.070 is added to the Seattle Municipal Code as follows:

21.49.070 Public charging

Electric charging facilities operated by the Department under authority granted by subsection 21.49.130.G may be used by any member of the public. Fees for use of charging facilities shall be designed to recoup the capital and operating cost of the charging equipment, plus the cost of electricity as determined by the relevant retail rate, plus appropriate taxes and overhead cost. Rental fees may be structured in any way that reflects cost of service including per kWh, per minute, or a flat fee. Precise terms and conditions for use, exact fees, and derivation of such fees shall be documented and filed in accordance with the provisions of Chapter 3.02.

Section 6. Section 21.49.081 of the Seattle Municipal Code, last amended by Ordinance 125171, is amended as follows:

21.49.081 Automatic BPA cost adjustment

((In the event that)) If BPA implements new rates for power and/or transmission services, the updated BPA contract cost under the new rates for the subsequent 12-month period shall be compared with the Department's ((adopted budget for these services)) cost assumption used in the adopted revenue requirement for the same time period. ((As soon as practical)) If the calculated difference is more than $1.5 million, then it will be deemed material and passed through in rates. Within three months after the BPA rate implementation, energy charges in all rate schedules will be adjusted upwards or downwards by a consistent fixed per-kWh amount such that the identified material cost difference, including taxes, is collected from or credited to customers over the subsequent 12-month period from the onset of the rate adjustment.

Section 7. Any act consistent with the authority of this ordinance taken prior to its effective date is ratified and confirmed.

 

Section 8. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ________ day of _________________________, 2019, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2019.

____________________________________

President ____________ of the City Council

Approved by me this ________ day of _________________________, 2019.

____________________________________

Jenny A. Durkan, Mayor

Filed by me this ________ day of _________________________, 2019.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)