Glendale Water & Power
Ratemaking Methodology
December 10, 2024
Manuel Robledo
Interim General Manager – Glendale Water & Power
1 Residential Electric Bill Comparison
2 Commercial Electric Bill Comparison
3 Electric Cash Reserves Trend
4 Reserve Policy
5 Electric Cash Reserve Policy
• On July 22, 2003, Council Adopted Electric System Cash Reserve Policy setting total cash reserve to $124.1 million as follows:
Category Amount
Operating Reserve $57,700,000
Contingency Reserve $40,400,000
Rate Stabilization Fund $10,000,000
Reserve for Gas Reserve Project $16,000,000
Total Cash Reserve $124,100,000
Water Cash Reserves Trend
6 Reserve Policy
7 Water Cash Reserve Policy
• On December 16, 2003, Council Adopted Water System Cash Reserve Policy setting total cash reserve to $11.3 million as follows:
Category Amount
Operating Reserve $3,800,000
Contingency Reserve $6,500,000
Rate Stabilization Fund $1,000,000
Total Cash Reserve $11,300,000
Cost of Service Analysis (COSA)
8 Function and Classification of Costs
9 Fixed Costs
plus Variable Energy Costs
Fixed Costs
Regardless of Energy Usage
Revenue Requirement by Function
10 Classification by Power Resource
11 Allocation by Peak Demand (MW)
12 Allocation by Energy (GWh)
13 • Residential
• Fixed Customer Charge per Day
• Tiered Usage Charges (¢/kWh)
• Tier 1 – First 300 kWh/month
• Tier 2 – Next 300 kWh/month
• Tier 3 – Remaining kWh used
• Optional Time-of-Use (¢/kWh)
• On-peak 2 pm to 8 pm
• Off-peak 8 pm to 2 pm
• Summer Rates: July – October
• Pass-through Charges (¢/kWh)
• Energy/Compliance Costs, Sales
Volume
• Adjusts up or down
• Reset to $0 after 2023 COSA
• Commercial
• Fixed Customer Charge per Day
• Flat Usage Charge (¢/kWh)
• Demand Charge ($/kW/day)
• Large Commercial
> 20 kW or > 5,000 kWh/month
• Rolling 12-month demand
• Optional Time-of-Use (¢/kWh)
• On-peak 2 pm to 8 pm
• Off-peak 8 pm to 2 pm
• Summer Rates: July – October
• Reactive Power Charge ($/kVAR/day)
• Pass-through Charges (¢/kWh)
• Reset to $0 after 2023 COSA
Rate Design
14 15
Thank You!