Gao, Beilei
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Monday, December 8, 2025 10:22 PM
Jones, Justin; Rick Cole; Hampton, Tyron; Lyon, Jason
Gao, Beilei; cityclerk
MSC Meeting December 9, 2025 - Item 1. Electric Rates
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Dear Members of the Municipal Services Committee,
Comparison of PWP rate sheets for October 2025 (Winter) and June 2025 (Summer) demonstrate that Current PWP Energy Charge Rates listed by NewGen in Attachments B and C do not reflect current charges paid by customers. (See comparisons in table below.) Inaccurate or misleading presentation of PWP current energy rates implies that other NewGen rates Listed in these attachments may also be inaccurate. The "Current Bill" of $115.01 for Residential @ SOOkWh/month (Executive Summary, Table 1, page 28) can be correctly calculated from the October 2025 PWP Rate Sheet. However, other calculations based on proposed future rates Listed in Attachments B and C cannot be duplicated due to possible errors for Mar-26, Oct-26 and Mar-27 proposed rate increases.
PWP
See NewGen Attachments B and C: Rate Schedules
Residential Single Family R-l/R-2
Energy Service Charge - All kWh/month Winter
Energy Service Charge - All kWh/month Summer
Small Commercial & Industrial S-l
Energy Service Charge - All kWh/month Winter
Energy Service Charge - All kWh/month Summer
Medium Commercial & Industrial M-1
Energy Service Charge - All kWh/month Winter
Energy Service Charge - All kWh/month Summer
Medium Commercial & Industrial M-2
Energy Service Charge - All kWh/month Winter
Energy Service Charge - All kWh/month Summer
Large Commercial & Industrial L-l
Energy Service Charge - All kWh/month TOU only Winter On-peak Energy Service Charge - All kWh/month TOU only Winter Off-peak Energy Service Charge - All kWh/month TOU only Summer On-peak Energy Service Charge - All kWh/month TOU only Summer Off-peak Large Commercial & Industrial L-2
Energy Service Charge - All kWh/month TOU only Winter On-peak Energy Service Charge - All kWh/month TOD only Winter Off-peak Energy Service Charge - All kWh/month TOD only Summer On-peak Rate
Sheets
Oct-25
$0.12977
$0.13903
$0.12860
$0.13731
New Gen
Att B & C
$0.06117
$0.07073
$0.06030
$0.06901
$0.13043 $0.06213
$0.14168 $0.07338
$0.12951
$0.13984
$0.13409
$0.12489
$0.17224
$0.12673
$0.13447
$0.12459
$0.16682
$0.06121
$0.0715^1
$0.06579
$0.05659
$0.10391
$0.05813
$0.06617
$0.05629
$0.09852
1 Energy Service Charge - All kWh/month TOU only Summer Off-peak $0.12410 $0.05580 Table 2-1 Estimated Energy Requirements during the Study Period (FY2026-FY2029) This table shows increases doubling from year to year with no explanation for these increases.
FY2026 FY2027 FY2028 FY2029
PWP Retail Load (MWh) 1,037,5161 1,042,6511 1,054,593 | 1,078,494 Increase from previous year 5,135 11,942 23,901
Multiple of previous increase 2.33 2.0
Table 2-2 Financial Forecast Results
Section 1408 of the City Charter states that an amount equal to 12%of gross income received during the preceding fiscal year may be transferred to the General Fund (GFT) in the next fiscal year. However, City Council may determine that transfer of an amount less than 12% is appropriate, so declare by resolution and shall transfer a smaller amount. NextGen has assumed a maximum annual GFT transfer of 12% for the entire study period, a decision that is made each fiscal year by City Council.
Table 2-12 Test Year Revenue Requirements
The two portions of the Draft Electric Rate Study released to the public employ various strategies to inflate expense requirements. For Instance, Base /ea/'(FY2026 Operating Budget) and FY2027 Forecast are averaged to calculate Test Year expenses which are higher than the current fiscal year budget. NewGen expense calculations are based on the "Test Year" (average) rather than the "Base Year" (adopted budget for FY 2026). See also Tables 2-4, 2-6, 2-8 and 2-11 .
Is the average of actual and projected expenses used as a basis for calculations in order to boost expenses?
Please send this report back to PWP for correction and revision before any consideration of electric rate increases. Revisions must include:
• Equitable distribution of rates across customer classes with a Larger burden for Large Commercial customers.
Removal of all changes to NEM which are conveniently hidden in Attachment B, page 4 of 5.
Removal of the 3 MW cap on the Feed-in-Tariff program, Attachment B, page 4 of 5.
Sincerely,
Genette Foster, CD2
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