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
Download Presentation 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.
Slide1
Non-Utility Costs in Utility Bills
M. Sarafolean
J. KamanIowa Industrial Energy Group Meeting April 9, 2013Slide2
Utility BillsSpecial Riders, SurchargesAbove Market PPAs
Cross Class SubsidiesTaxes
City Franchise FeesSlide3
Bill Markup
More to come…Slide4
RidersRenewable development fundsEnergy efficiency charges
Special pollution surcharges - externalitiesCarbon surcharges
System/Public Benefits FundsSlide5
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)Slide6
Tariff
Cities Served
- Electric Service territory map
http://
www.iowadot.gov/maps/msp/electrical/electrical.html
Riders
Franchise Fees imposedSlide7
System 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 Slide8
Above Market PPAsWind power mandates Solar power mandates
Other PPA embedded cost riskSlide9
Cross Class SubsidiesBuilt into IOU cost of service allocationsTiered kWh purchases
Allocation of variable costs to demand chargesIncreased CP eventsSlide10
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 revenuesSlide11
FeesMunicipal fees Low income assessments
Meter chargesCustomer chargesCity franchise feesSlide12
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 customerSlide14
Non-Utility Costs in Utility Bills
M. Sarafolean
J. KamanIowa Industrial Energy Group Meeting April 9, 2013