Non-Utility Costs in Utility Bills PowerPoint Presentation

Non-Utility Costs in Utility Bills PowerPoint Presentation

2018-02-26 68K 68 0 0


M. Sarafolean. J. Kaman. Iowa Industrial Energy Group Meeting . April 9, 2013. Utility Bills. Special Riders, Surcharges. Above . Market PPAs. Cross Class Subsidies. Taxes. City Franchise Fees. Bill Markup. ID: 636588

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Non-Utility Costs in Utility Bills

M. Sarafolean

J. KamanIowa Industrial Energy Group Meeting April 9, 2013


Utility BillsSpecial Riders, SurchargesAbove Market PPAs

Cross Class SubsidiesTaxesCity Franchise Fees


Bill Markup

More to come…


RidersRenewable development fundsEnergy efficiency charges

Special pollution surcharges - externalitiesCarbon surchargesSystem/Public Benefits Funds


Administrative Code - RidersSpecifies criteria for whether a rider could apply [e.g. electric rates 199 IAC 20.9(1)]Incurred in supplying energy

Beyond direct control of managementSubject to sudden important change in levelImportant factor in total cost to serve

Segregated in utility accountsRecent Iowa examplesAlliant’s electric Energy Adjustment Clause (EAC), electric utility AEPsElectric (and Gas) EECRs, 199 IAC 35.12Capital Infrastructure, e.g. 199 IAC 19.18 (gas)



Cities Served

- Electric Service territory map



Franchise Fees imposed


System Benefit CostsLow income subsidies

Cash fuel assistance paymentsCrisis intervention fundingEnergy efficiency funding

Cross class subsidiesEnergy efficiency, DSM, renewable programs


Above Market PPAsWind power mandates Solar power mandates

Other PPA embedded cost risk


Cross Class SubsidiesBuilt into IOU cost of service allocationsTiered kWh purchases

Allocation of variable costs to demand chargesIncreased CP events


TaxesPhantom income taxesState and Federal taxes included in base rates but never paid to States and the Feds.

Local taxes on utility assetsState and local sales taxes on utility revenues


FeesMunicipal fees Low income assessments

Meter chargesCustomer chargesCity franchise fees


Utility Franchise FeesBy the CITYIn lieu of municipalization

?Des Moines franchise fee lawsuit

Iowa Code 480A (local option) and 364.2 (franchise fees) – mutually exclusiveNow (since 2009): Up to 5% without proving costs are for “inspecting, supervising, and otherwise regulating…” the franchiseCan use excess for property tax relief, public improvements, low-income energy conservation, public safety, public works and transportation, streets, economic development….


A Story About Waterloo…Cities need revenue, property tax concerns in IowaEnergy bill taxes are disproportionate to industry/employers

Appears can:Modify for different customer classesApply to Electric, Nat Gas, Telecom, (etc.) any combination or none

Apply a cap per customer


Non-Utility Costs in Utility Bills

M. Sarafolean

J. KamanIowa Industrial Energy Group Meeting April 9, 2013

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