Glendale Water and Power
Introduction of Ordinance Amending
Ordinance No. 6016 Establishing the
Electric Rates for 2024-2027
March 26, 2024
Scott K. Mellon, Assistant General Manager - Power Management Michelle Nall, Utility Business System Support Administrator ITEM 8.b
Background
• November 14, 2023 - Introduction of Ordinance No. 6016 (COSA Electric Rates) • November 28, 2023 - Adoption of Ordinance No. 6016
• January 1, 2024 - Phase 1 of Electric Rate’s Effective Standby Service Rider Rates
• Medium & Large Business Dispatchable Standard
• Included in COSA
• Omitted from Ordinance Rate Tables
• Medium & Large Business Dispatchable TOU
• Omitted from COSA
• Omitted from Ordinance Rate Tables
• Zero GWP customers on Standby Service Rider Rates (expect some in 2024) 2 2
• GWP provides “Standby” generation capacity for customers with significant dispatchable generation behind the meter, to cover:
• Unscheduled customer outages
• Unscheduled or Scheduled customer maintenance
• Reservation Charge – procures GWP’s capacity in anticipation of an outage • Back-up Service rider – applied during the period of a customer outage • Uses the standard PC1 (Large) & LD2 (Medium) rate structures with a 12- month ratcheted demand
• i.e.: the highest 1-month demand over a 12-month period • TOU option is not currently available
3 What are “Standby Service Rider Rates”?
3 Standby Service Rider
Reservation Charge: Rate $0.54 X System Capacity 250KW X 30 days = $4,050 monthly 4 Current and Proposed Electric Rates:
Standby Service Rider: Medium Business Dispatchable (LD2) Item Unit Current Rate
Proposed Rates
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Dec 1, 2023 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Customer Meter/Day $1.00 $1.25 $1.50 $1.70 $1.70 $1.70 Reservation Charge kW/day $0.54 $0.54 $0.54 $0.54 $0.54 $0.54 Supplemental Service Charge
Energy High Season kWh $0.0847 $0.1441 $0.1583 $0.1707 $0.1707 $0.1707 Energy Low Season kWh $0.0810 $0.1378 $0.1514 $0.1632 $0.1632 $0.1632 Demand High Season kW/day $0.99 $1.04 $1.08 $1.15 $1.15 $1.15 Demand Low Season kW/day $0.69 $0.72 $0.75 $0.80 $0.80 $0.80 Backup Service Charge
Energy Charge kWh See LD-2-A See LD-2-A See LD-2-A See LD-2-A See LD-2-A See LD-2-A Demand High Season kW/day $0.45 $0.50 $0.54 $0.61 $0.61 $0.61 Demand Low Season kW/day $0.15 $0.18 $0.21 $0.26 $0.26 $0.26 ECAC kWh $0.0001 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 RAC kWh $0.0250 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 RDC kWh $0.0159 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 4 • Include the Standard Standby Service Rider Rate in the Ordinance’s electric rate table
• Include Time of Use Rate option
• Medium and Large commercial co-generation customers
• Eliminate the 12-month ratcheted peak demand
• Implement a billable monthly peak demand for the current bill period • Cost benefit to co-generations customer
• Customer will not to be penalized for high peak demand caused by a system outage 5 Standby Service Rider Requested Changes
5 Ratcheted Vs. Monthly Demand
6 6
Recommendation
• Include the Standard Medium and Large Dispatchable Stand-by Service Rider in the adopted 2024-2027 electric rates ordinance • Add and Extend the Standby Service Rider option to large and medium commercial Time of Use (TOU) rates
• Eliminate the 12-month ratcheted peak demand
• Implement a billable monthly peak demand
7 7
8 Questions?
8 #MyGlendale