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Implementation of 2012-2014 Power Rates

Implementation of 2012-2014 Power Rates. Rate Applications Group LADWP Rates & Contracts 2012-13. 2012-2014 Power Rates - Overview. Two year increase for FY 12-13 and FY 13-14 FY 12-13: 4.9% general increase FY 13-14: 6.0% general increase

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Implementation of 2012-2014 Power Rates

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  1. Implementation of 2012-2014 Power Rates Rate Applications Group LADWP Rates & Contracts 2012-13

  2. 2012-2014 Power Rates - Overview • Two year increase for FY 12-13 and FY 13-14 • FY 12-13: 4.9% general increase • FY 13-14: 6.0% general increase • Overall 2-year system average increase: 11.1%, 1.4¢/kwh • Impact of rate increases is projected to be equal across all rate classes, but the impact may vary between customers within classes, depending on consumption levels and patterns • New Ordinance is incremental to existing rates that are currently in effect, which are capped

  3. 2012-2014 Power Rates - Background • Purpose: higher costs to DWP to meet legal/regulatory requirements, and to replace aging infrastructure • Rates are the result of an in-depth analysis and coordination between DWP staff and outside consultants. Rates reflect extensive review by the independent Ratepayer Advocate • Extensive public input was solicited and received through community outreach in 2011 and in 2012

  4. 2012-2014 Power Rates - Implementation • Projected implementation date is November 11, 2012 • Written ordinance shows incremental numbers that will be added to existing capped rates • CIS and DWP bills will display the sum total of the capped and incremental rates • Several new billing factors have been created, which will be embedded in current line items on CIS and on DWP bills

  5. 2012-2014 Power Rates - Implementation • Approved ordinance includes several new billing factors: • VEA – Variable Energy Adjustment • CRPSEA – Capped Renewable Portfolio Standard Energy Adjustment • VRPSEA – Variable Renewable Portfolio Standard Energy Adjustment • IRCA – Incremental Reliability Cost Adjustment • VEA, CRPSEA and VRPSEA will be embedded with the ECA on CIS • IRCA will be embedded with the ESA and RCA

  6. 2012-2014 Power Rates – Residential Rate R-1A

  7. 2012-2014 Power Rates – before & after (residential rate R1A) • Example shown here is for High Season • Overall bill format will not change • Existing bill shows line items, bill calculations, etc • ECA line item will now include VEA, CRPSEA, and VRPSEA • ESA line item will continue to include RCA, and will now include IRCA New bill: Energy 500 x $0.07181 = $35.91 ECA 500 x $0.05765 = $28.83 ESA 500 x $0.00574 = $2.87 Tax $67.60 x 0.1 = $6.76 State (unchanged)= $0.15 TOTAL = $74.51

  8. 2012-2014 Power Rates –Residential Rate R-1B (TOU)

  9. 2012-2014 Power Rates –Commercial Rate A-1A

  10. 2012-2014 Power Rates – Commercial Rate A-2B

  11. 2012-2014 Power Rates – before & after (commercial rate A2B)(High Season bill shown here) high peak Demand 47.2 x $9.50 = $448.40 Energy 2960 x $0.04937 = $146.14 ECA 2960 x $0.05765 = $170.64 Tax $765.18 x 12.5% = $95.65 State 2960 x $0.00029 = $0.86 Total high peak = $861.69 low peak Demand 48 x $3.50 = $168.00 Energy 4480 x $0.0421 = $188.61 ECA 4480 x $0.05765 = $258.27 Tax $614.88 x 12.5% = $76.86 State 4480 x $0.00029 = $1.30 Total low peak = $693.04 base Energy 15,840 x $0.02137 = $338.50 Service 1 month x $28.00 = $28.00 Facilities 53.6 x $5.29 = $283.54 ECA 15,840 x $0.05765 = $913.17 ESA 53.6 x $1.78 = $95.41 Tax $1658.63 x 12.5% = $207.33 State 15,840 x $0.00029 = $4.59 Total base = $1870.55 TOTAL BILL = $3425.28

  12. 2012-2014 Power Rates – Commercial Rate A-3A

  13. 2012-2014 Power Rates – Some Important Points to Consider • Certain customers will be impacted more • Residential high kwh users • Commercial users with poor load factors (high demand, low consumption) • In addition to the Ratepayer Advocate, this rate action had widespread support, including business representatives (LA Chamber of Commerce, LA Times) and environmental groups (Sierra Club) • Even after this rate action, rates are still less than or competitive with neighboring utilities • Rate action enables DWP to continue and expand efficiency programs, which help customers manage their costs

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