Agenda Information Sheet
DEPARTMENT: Denton Municipal Electric
CM/ ACM: Todd Hileman
Date: September 11, 2017
SUBJECT
Title
Consider recommending approval of the FY 2017-2018 Energy Cost Adjustment (ECA), Renewable Cost Adjustment (RCA), and Transmission Cost Recovery Factor (TCRF).
Body
BACKGROUND
The Energy Cost Adjustment (ECA), Renewable Cost Adjustment (RCA), and Transmission Cost Recovery Factor (TCRF) are electric rates that are approved separately from the electric rate book. While the rate book includes schedules that allow for the adoption of the ECA, RCA, and TCRF, the schedules do not include the rate itself. This is because the ECA, RCA, and TCRF schedules contain provisions that allow for a quarterly review and, when necessary, adjustment of these rates based on certain financial conditions.
When the rate book was presented for consideration in July, staff informed PUB of the recommended rate changes for ECA, RCA, and TCRF to achieve an average 1% decrease in rates. To achieve this 1% overall reduction, ECA and RCA will be decreased, while TCRF rates will be slightly increased. This item allows for PUB to take formal action to recommend the adoption of the proposed ECA, RCA, and TCRF.
The proposed rates are as follows:
RECOMMENDATION
Staff recommends the Public Utilities Board recommend approval of the proposed ECA, RCA, and TCRF rates.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The proposed electric rate ordinance was presented to PUB as a work session item on July 10, 2017 and was approved (6-0) on July 24, 2017.
FISCAL INFORMATION
The proposed electric rates represent a 1% decrease to the overall rates by means of a $0.002/kWh decrease in the Energy Cost Adjustment (ECA) and Renewable Cost Adjustment (RCA) and a slight increase in the Transmission Cost Recovery Factor (TCRF).
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Public Infrastructure
Related Goal: 2.3 Promote superior utility services and facilities
EXHIBITS
Exhibit 1: Presentation
Respectfully submitted:
Bryan Langley
Deputy City Manager
Prepared by:
Elizabeth Ruiz
Key Accounts & Energy Programs Admin.