Cover Memo
City of Independence
AGENDA ITEM COVER SHEET
BILL NO. 14-128 Ord.No:

18382



Agenda Title:

14-128 - 2R. An ordinance adopting as a part of Independence Power & Light Department’s current rate schedule structure Schedule CH-1 (Churches & Hospitals) and Schedule EDU-1 (Schools) to be made available to eligible customers of the Independence Power & Light Department within the corporate limits of the City of Independence, Missouri, beginning on December 1, 2014.

Recommendations:

Staff recommends approval of the proposed ordinance.

Background:

The Power & Light Department’s Schedule of Rates includes Schedule SCH-1 (Schools, Churches & Hospitals). This rate schedule is available to publicly and privately endowed non-profit educational schools and colleges, churches of generally recognized denominations, and hospitals for all power and energy uses. Currently, there are approximately 290 accounts that take service under this rate schedule.

The proposed two new rate schedules separate the school accounts from the churches and hospital accounts and provides a discount to the schools.

Schedule EDU-1 (Schools): This new rate schedule is available to publicly and privately endowed non-profit educational schools and colleges. Of the 290 accounts that are currently under the existing Schedule SCH-1, approximately 70 accounts of these accounts will qualify for the new Schedule EDU-1. The structure of this rate schedule is identical to the existing Rate Schedule SCH-1 but the base rates have been reduced by 9.85%. When including the Fuel-Energy Cost Adjustment charges that are applied to bills, the school accounts will see a net reduction of approximately 8% in the electric charges. This reduction will make the Department’s schools rate more competitive with the neighboring electric utilities in the metro area. Based on the past 12 months bills for the school customers, the revenue decrease for the Department will be approximately $300,000 per year.

Schedule CH-1 (Churches & Hospitals): This new rate schedule is identical to the existing Rate Schedule SCH-1 except that the “Applicable” section eliminates school facilities. The rates are identical and therefore, there is no impact on the electric charges for the churches and hospitals accounts. Likewise, there is no impact on the revenues for the Department.

The existing Schedule SCH-1 (School, Churches & Hospitals) will be deleted from the Department’s Schedule of Rates at the time that the two new rate schedules go into effect (December 1, 2014).

The PUAB endorsed the two new rate schedules at its September 18, 2014 meeting.



Department: Power & Light Contact Person: E. Leon Daggett


Council Action: First Reading Council Action: Accepted

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Attachments / click to download
Schedule EDU-1 - Schools
Schedule CH-1 - Churches & Hospitals
Ordinance