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
DownloadNote - The PPT/PDF document "Non-Utility Costs in Utility Bills" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentations text content in Non-Utility Costs in Utility Bills
Slide1
Non-Utility Costs in Utility Bills
M. Sarafolean
J. KamanIowa Industrial Energy Group Meeting April 9, 2013
Cross class subsidiesEnergy efficiency, DSM, renewable programshttp://liheap.ncat.org/workbook/questions.htm
Slide8
Above Market PPAsWind power mandates Solar power mandates
Other PPA embedded cost risk
Slide9
Cross Class SubsidiesBuilt into IOU cost of service allocationsTiered kWh purchases
Allocation of variable costs to demand chargesIncreased CP events
Slide10
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
Slide11
FeesMunicipal fees Low income assessments
Meter chargesCustomer chargesCity franchise fees
Slide12
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….
Slide13
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
Slide14
Non-Utility Costs in Utility Bills
M. Sarafolean
J. KamanIowa Industrial Energy Group Meeting April 9, 2013
Download this presentation
DownloadNote - The PPT/PDF document "Non-Utility Costs in Utility Bills" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentations text content in Non-Utility Costs in Utility Bills
Non-Utility Costs in Utility Bills
M. Sarafolean
J. KamanIowa Industrial Energy Group Meeting April 9, 2013
Slide2Utility BillsSpecial Riders, SurchargesAbove Market PPAs
Cross Class SubsidiesTaxesCity Franchise Fees
Slide3Bill Markup
More to come…
Slide4RidersRenewable development fundsEnergy efficiency charges
Special pollution surcharges - externalitiesCarbon surchargesSystem/Public Benefits Funds
Slide5Administrative 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)
Slide6Tariff
Cities Served
- Electric Service territory map
http://
www.iowadot.gov/maps/msp/electrical/electrical.html
Riders
Franchise Fees imposed
Slide7System Benefit CostsLow income subsidies
Cash fuel assistance paymentsCrisis intervention fundingEnergy efficiency funding
Cross class subsidiesEnergy efficiency, DSM, renewable programshttp://liheap.ncat.org/workbook/questions.htm
Slide8Above Market PPAsWind power mandates Solar power mandates
Other PPA embedded cost risk
Slide9Cross Class SubsidiesBuilt into IOU cost of service allocationsTiered kWh purchases
Allocation of variable costs to demand chargesIncreased CP events
Slide10TaxesPhantom 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
Slide11FeesMunicipal fees Low income assessments
Meter chargesCustomer chargesCity franchise fees
Slide12Utility 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….
Slide13A 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
Slide14Non-Utility Costs in Utility Bills
M. Sarafolean
J. KamanIowa Industrial Energy Group Meeting April 9, 2013