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Overview of Electric Service

Overview of Electric Service. TVA Generates Power and sends it down Transmission Lines to Newport Utilities Distribution Substations. TVA. TVA. TVA Bills Newport Utilities Monthly. Newport Utilities. Newport Utilities bills our Customer’s Monthly.

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Overview of Electric Service

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  1. Overview of Electric Service

  2. TVA Generates Power and sends it down Transmission Lines to Newport Utilities Distribution Substations TVA TVA TVA Bills Newport Utilities Monthly Newport Utilities Newport Utilities bills our Customer’s Monthly Newport Utilities Substations Distributes the Power through Distribution Circuits which carries the Power to Transformers that step-down the volts for use by the Customer where usage is measured by the Meter. Newport Utilities Newport Utilities

  3. TVA Generates Power and sends it down Transmission Lines to Newport Utilities Distribution Substations TVA TVA Newport Utilities is Responsible for all Infrastructure & Equipment from the Substations to the Meter which includes Maintaining & Purchasing New Equipment as Required Newport Utilities Newport Utilities Substations Distributes the Power through Distribution Circuits which carries the Power to Transformers that step-down the volts for use by the Customer where usage is measured by the Meter. Newport Utilities Newport Utilities

  4. What Makes Up the Electric Charge on Your Bill? The Customer Charge includes the Operational Costs necessary for NU to have electric service available for you whether or not power is used. The Operational Costs are associated with maintaining items such as a Pole, Transformer, Service Line, Meter, and Costs associated with monthly billing processes. Energy & Fuel Charge includes TVA’s Bill to NU and NU’s costs required to support the NU Distribution System. NU’s costs required to support the system include items such as substations, distribution lines, buildings, trucks, people, equipment, tools, and technology systems . • In summary, the total Electric Charge includes :

  5. How the Electric Charge on Your Bill is Calculated March Bill Amt Under Old Rate Structure April Bill Amt Under New Rate Structure $ 9.40 $0.09074 X 1495 = $135.66 $ 145.06 $ 14.99 $0.08297 X 1495 = $124.04 $ 139.03

  6. Newport Utilities Missionis not to Profit, But to: • Provide our Customer’s with quality electric, water, and wastewater services reliably, timely, and courteously at the lowest reasonable cost. • And the Values we hold ourselves Accountable for in order to Achieve our Mission include: • Honesty • Teamwork • Diversity • Reliability • Accountability • Use of Technology • Customer Satisfaction • Continuous Improvement • Efficient Use of Resources Partnering With Our Community

  7. TVA Implements New Rate StructureApril 2011

  8. TVA Introduces New Rate Structure for Effective April 2011 Why ? • To Better Match Revenue with Costs • In summer and winter months when the demand for power increases • it costs more to generate power. In spring and fall, there is less demand and • therefore it costs less to generate power. • New Rate Structure Involves Seasonal Rates • Previously, all kilowatt hours were charged the same base Energy Rate everyday, every • month regardless of the time of year or how high the demand for energy was… • Effective April 2011, we now have Seasonal Rates: • Summer Period includes June, July, August, and September • Winter Period includes December, January, February, and March • Transition Period includes April, May, October, and November • Some Customers may see an increase and some customers may see a decrease. Overall • the change across All Customer Classes is designed to be Revenue Neutral to Newport • Utilities. • An evaluation of the costs associated with NU Customer Charge (flat charge billed to customers • whether power is used or not) did result in an increase. The last increase in this charge was 2003. • The Fuel portion of the rate will still change monthly. TVA provides the new fuel charge to NU each • month.

  9. Residential & Small Commercial/Non-Residential Rate Classes Comparison of Previous and New Rate Structure Transition Months: Apr, May, Oct, Nov Summer Months: Jun, Jul, Aug, Sep Winter Months: Dec, Jan, Feb, Mar **Note: The Summer and Winter Energy & Fuel Charge Amounts are estimated because Fuel Charges change monthly. *Note: The previous rate structure for the Residential Rate Class included a minimum Customer Charge of $15. If your consumption exceeded the minimum bill then the Customer Charge applied to your bill was $ 9.40. The new rate structure includes a Customer Charge of $14.99 which does not include a minimum. This is a flat charge that will be applied to all residential electric customers monthly beginning April 1, 2011 in order to recover the cost NU incurs whether power is consumed or not.

  10. Commercial, Large Commercial & Industrial Rate Classes Comparison of Previous and New Rate Structure Transition Months: Apr, May, Oct, Nov Summer Months: Jun, Jul, Aug, Sep Winter Months: Dec, Jan, Feb, Mar **Note: The Summer and Winter Energy & Fuel Charge Amounts are estimated because Fuel Charges change monthly.

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