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HomeMy WebLinkAbout023437 ORD - 09/15/1998AN ORDINANCE APPROVING, RATIFYING, CONFIRMING AND ACCEPTING TWO TIME OF USE TARIFFS AND RELATED CONTRACTS FILED BY CENTRAL POWER AND LIGHT COMPANY FOR THE FURNISHING OF ELECTRICITY AND ELECTRIC SERVICE WITHIN THE CITY OF CORPUS CHRISTI, TEXAS; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, in accordance with Section 33.001 of the Public Utility Regulatory Act, on July 9, 1998, Central Power and Light Company (CPL) filed its application for approval of Sheet No. B32 and Sheet No. B14 to its tariff, which are respectively the SelectChoice,„ tariff and the S"TOU tariff; and WHEREAS, CPL has also filed for approval of three form endorsement contracts (which comprise Sheet No. E14) related to and necessary for the implementation of the SelectChoice.., tariff and WHEREAS, CPL has requested approval of the base rate reduction necessary to accommodate the rate structure for the S" TOU tariff; and WHEREAS, CPL has presented its request to the City Council requesting approval of such tariffs for furnishing electricity and electric service within the City and a public hearing has been held on such application; and WHEREAS, the City Council, after hearing all evidence and arguments regarding such tariffs as requested in application filed on July 9, 1998, has determined that such tariffs are fair and reasonable and should be approved and accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The application for approval of Sheet No. B32 and Sheet No. B14 and for approval of the aforementioned endorsement contracts comprising Sheet No. E14 filed with the City on July 9, 1998, by CPL as an addition to its Tariff Manual, attached hereto and incorporated herein, for the furnishing of electricity and electric service with the City is granted. SECTION 2. CPL's request that the base rate component of the S"TOU rate as changed is hereby acknowledged and approved. SECTION 3. The SelectChoice,., tariff approved herein (Sheet No. B32) expires on the second anniversary of passage of this ordinance, as to commencement of service for a customer. After completing agreed participation in the program, a customer will be returned to the applicable rate schedule. Upon expiration of the program, CPL shall provide a written evaluation of the H:\LEG-DIR\J IMMY\ W PDOC 8\CPL\8JRB31 11.102(dkw) r) 34 3 7 Xr+ 1 program to the City. SECTION 4. Any revenue shortfall to CPL attributed to the tariffs approved herein shall not be the responsibility of other customers and shall be the sole responsibility of CPL. SECTION 5. If for any reason any section paragraph, subdivision, clause, phrase, word or provision of this Ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this Ordinance for it is the definite intent of this City that each of such be given full force and intent for its purpose. SECTION 6. The rates for electric service adopted herein shall be and become effective for service rendered on and after July 1, 1998, except as otherwise provided herein. SECTION 7. That all Ordinances, Resolutions, or parts of Ordinances or Resolutions in conflict herewith are repealed to the extent of such conflict. H:U.EG-DIRVIMMY\WPDOCSVCPLA8JRB3111.102(dkw) 2 Exhibit I CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, & Victoria Section: B Sheet: 14 Page 1 of 6 Section Title: Rate Schedules Revision: 1 Effective Date: March 2, 1998 SELECT TIME OF USE (S-TOU) PILOT PROGRAM AVAILABILITY This Select Time of Use (S-TOU) Pilot Program rate schedule is available as a pilot program to a maximum of 100 retail non-residential, non -lighting customers for one year of electric service at the sole discretion of the Company. This schedule will not be offered to new customers or for resubscription to existing customers beyond the initial one year term. This schedule is available to customers within the city limits of the cities listed below who execute a rate change endorsement before the expiration date of the pilot or the effective date of the SelectChoicesm pilot whichever comes first. This schedule is available for a period of twelve months. City Expiration Date Victoria 6/30/98 McAllen 7/1/98 Harlingen 8/11/98 Corpus Christi 9/24/98 Upon termination of the customer's participation in the Pilot Program, the customer will be returned to the applicable standard rate schedule, such that usage under the S-TOU rate schedule will not affect the customer's billing determinants upon return to standard rate schedules. This schedule is not available for resale, stand-by, maintenance, auxiliary, temporary, or supplemental service. Once this service is selected, service will continue to be supplied under this schedule for twelve consecutive months. TYPE OF SERVICE Service will be supplied at one delivery point and shall be at one standard voltage. A written contract may be required at the Company's option. Exhibit 1 CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, & Victoria Section: B Sheet: 14 Page 2 of 6 Section Title: Rate Schedules Revision: 1 Effective Date: March 2, 1998 TERMS AND CONDITIONS Service will be furnished under the Company's Service Rules and Regulations, Section D, except as modified herein. CUSTOMER USAGE PROFILE (CUP) The Customer Usage Profile (CUP) is twelve months of hourly energy usage and billing demands, typically derived from historic billing files that represent the electricity consumption pattern and level typical of the Customer's operation under the standard rate schedule, including any applicable riders. The CUP must be agreed to by both the Customer and the Company as representing the Customer's usage pattern under the standard rate schedule and applicable Riders. Agreement to the CUP is a condition for participation in the S-TOU pilot program. A standard rate schedule must be designated for calculation of the monthly base bill. DEFINITION OF SEASONS AND PERIODS Seasons The On -Peak Season is defined as the calendar months of June, July, August, and September. The Off -Peak Season is defined as the calendar months of October through May. Periods All hours in the Off -Peak season are Off -Peak hours. The On -Peak season contains a Peak and an Off -Peak period. The customer will select one of the available Peak periods. The Peak Periods are: Narrow Window: 3:00 p.m. through 7:00 p.m. weekdays (four hours); Standard Window: 2:00 p.m. through 8:00 p.m. weekdays (six hours); Wide Window: 1:00 p.m. through 9:00 p.m. weekdays (eight hours). The Off -Peak period includes all hours not listed above as Peak. Independence Day (July 4) and Labor Day (as observed), are excluded from the Peak period. Exhibit I CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, & Victoria Section: B Sheet: 14 Page 3 of 6 Section Title: Rate Schedules Revision: 1 Effective Date: March 2, 1998 MONTHLY PRICES The customer shall select one Window - Pricing combination from the following matrix: S-TOU Peak and OK -Peak Ener Qv Price Matrix Peak Period Peak and Off -Peak Prices Narrow Window 3 p.m. - 7:00 p.m. Pp = Po = 8.20 0/kWh 3.35 0/kWh Pp = Po = 9.70 0/kWh 3.30 ¢/kWh Pp = 11.80 0/kWh Po = 3.20 0/kWh Standard Window 2 p.m. - 8:00 p.m. Pp = Po = 8.20 0/kWh 3.25 0/kWh Pp = Po = 9.70 ¢/kWh 3.15 0/kWh Pp = 11.80 0/kWh Po = 3.00 0/kWh Wide Window 1 p.m. - 9:00 p.m. Pp = Po = 8.20 0/kWh 3.15 0/kWh Pp = Po = 9.70 0/kWh 3.00 0/kWh Pp = 11.80 0/kWh Po = 2.80 0/kWh Pp is the price during the peak hours; Po is the price during the off-peak hours. Each Window - Pricing combination is a distinct pricing structure and the corresponding quoted energy price is applicable to energy consumption during the applicable peak or off- peak period during the entire term of the customer's participation in the Pilot Program. The above prices include the applicable fuel component contained in Tariff Sheet No. 24, Section B: Rate Schedule, as of the effective date for this tariff and that component of the above prices is subject to change, refund and surcharge according to the provisions of Tariff Sheet No. 24, Section B: Rate Schedule, other schedules that may become applicable to the recovery of fuel costs, and pursuant to the fuel rule of the Public Utility Commission of Texas. MONTHLY BILL For each monthly billing period, the customer will be charged according to the following formula: Monthly Bill = EC + DC + Pgm Where: EC = Energy Charge; DC = Delivery Charge; Pgm = Program Charge. Exhibit I CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, & Victoria Section: B Sheet: 14 Page 4 of 6 Section Title: Rate Schedules Revision: 1 Effective Date: March 2. 1998 Energy Charge (EC) The Energy Charge is a charge for energy usage during the billing period based on the Window - Pricing combination selected by the customer. The Energy Charge is calculated using the following formula: EC = (kWho x Po) + (kWhp x Pp) Where: kWho A customer's current actual off-peak kWh usage in the month; kWh A customer's current actual on -peak kWh usage in the month; Po The applicable off-peak S-TOU price for the month; P, The applicable on -peak S-TOU price for the month. Note that Po and Pp contain a fuel cost component that is subject to change, refund, and surcharge as specified in the MONTHLY PRICES section of this rate schedule. Delivery Charge (DC) The monthly Delivery Charge is designed to achieve revenue neutrality with the customer's standard rate schedule and CUP. The Delivery Charge is calculated using the following formula: DC = {Base Bill - [(kWh, x Po) + (kWhp x Pp)]} - 12 months; subject to: DC $0. Where: DC = Monthly Delivery Charge; Base Bill = Annual CUP billed under the standard rate schedule and riders; kWho = A customer's CUP off-peak kWh usage for the 12 month period; kWhp A customer's CUP on -peak kWh usage for the 12 month period; Po The applicable off-peak S-TOU price for the 12 month period; Pp The applicable on -peak S-TOU price for the 12 month period; Exhibit I CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, & Victoria Section: B Sheet: 14 Page 5 of 6 Section Title: Rate Schedules Revision: 1 Effective Date: March 2, 1998 Program Charge (Pgm) A monthly program charge will be assessed to cover the additional metering, administration, and billing costs associated with participation in the S-TOU pilot program. The Program Charge is $10.00 per month. S-TOU PILOT PROGRAM GUARANTEE The Company will credit to the S-TOU subscriber's account any positive amount defined by the difference between: 1) the total dollar amount of all bills issued to the subscriber for service under S-TOU during the contract year less Program Charges; minus 2) the total dollar amount defined by rendering bills on metered usage during the contract year using all other applicable tariff and billing provisions of the rate schedule and riders designated by the customer in his S-TOU rate change endorsement. Additional conditions for the guarantee to be effective include: 1. Customer must complete one full contract year of service under S-TOU; ?. The determination of the amount of any such credit shall be made by the Company, and any applicable credit shall be made to the account of the customers, within 30 days of the expiration of the customer's annual service contract; 3. The guarantee is not applicable to any customer who does not complete the full obligations of the annual S-TOU contract executed by the customer as a condition for taking service under S-TOU; The guarantee is applicable only to single customer accounts and is not applicable to accounts that were previously individually metered and billed but that were combined into a single account for the purposes of taking of service under S-TOU. ADJUSTMENTS TO BILLING Base Rate Fuel Costs and Gross Receipts Fee Adjustment The above rate is subject to the provisions of Sheet Nos. 24 and 25, Section B: Rate Schedule, of the Company's tariff manual. Exhibit 1 CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, & Victoria Section: B Sheet: 14 Page 6 of 6 Section Title: Rate Schedules Revision: 1 Effective Date: March 2, 1998 Voltage Adjustment Customers subscribing to S-TOU shall receive service at the same voltage class that service was provided under the standard rate schedule, and the customer will continue to be responsible for installing, owning and operating, or leasing from the Company, all facilities necessary for taking service at the stated voltage. When service is metered at a voltage level other than that standard rate schedule service voltage, both the metered kW and kWh will be adjusted for all billing purposes as follows: 1) When service is provided at the line side voltage, but is metered on the load side of the transformation facilities, 2% will be added to both readings to compensate for transformation losses. 2) When service is provided at the load side of the voltage, but is metered on the line side of the transformation facilities, 2% will be subtracted from both readings to compensate for transformation losses. MINIMUM MONTHLY BILL The minimum monthly bill will be the Delivery Charge and Program Charge plus applicable fees and taxes. CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 1 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exhibit II SelectChoicesm PILOT PROGRAM AVAILABILITY The SelectChoicesm Pilot Program rate schedule is available to a maximum of 500 retail non- residential, non -lighting customers for up to two years of electric service, at the sole discretion of the Company. This schedule is not available for resale, stand-by, maintenance, auxiliary, temporary, or supplemental service. Exceptions may be made for emergency generators. An Otherwise Applicable Tariff (OAT), including riders, must be designated for calculation of the SelectChoicesm monthly balancing charge. The following riders may not be taken in conjunction with SelectChoicesm and may not be included in the OAT: Interruptible Service, Standby with Maintenance, As -Available Standby, Maintenance, Temporary Service, Customer Supplied Fuel, Economic Development, Supplemental Service, Economic As -Available, High Load Factor and the Real Time Pricing Pilot Program. Upon termination of the customer's participation in the Pilot Program, the customer will be returned to the applicable standard rate schedule, such that usage under the SelectChoicesm rate schedule will not affect the customer's billing determinants upon retum to the OAT. TYPE OF SERVICE The electric service furnished will be single or three phase. 60 hertz, at one of the Company's standard secondary, primary or transmission voltages. Refer to Section D, Sheets 1 and 3, for additional voltage information. SelectChoicesm is available for electric service supplied at one point of delivery and measured by one meter. The minimum metering required for SelectChoicesm is a time -of -use (TOU) meter. LENGTH OF TERM AND TERMINATION The customer will be required to subscribe for at least one year and to sign a Temporary Rate Change Endorsement or a New Account Rate Endorsement to participate in the SelectChoice,m Pilot Program. Prior to the expiration of the first year of service, the customer may resubscribe to the second year by completing a Rate Continuation Endorsement. If the customer executes a Rate Continuation Endorsement, SelectChoicesm will continue uninterrupted for another CENTRAL PO 'Pr ER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 2 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exhioit II succeeding twelve-month period with the same Customer Usage Profile (CUP) and appropriate recalculation of the balancing charge to reflect the energy prices in effect at the time of resubscription. If the customer does not complete a Rate Continuation Endorsement prior to the expiration of the first year's endorsement on SelectChoicesm, the customer will be returned to the OAT. If the customer renews service after expiration of subscription, the customer is treated as a new subscriber and is subject to a recalculated CUP. A customer also has the option to select a two-year term option. This option mirrors the one-year option, but offers the convenience of automatic renewal in the second year. The appropriate recalculation of the balancing charge to reflect the energy prices then in effect will occur at the time of automatic renewal. This schedule will be closed and will not be available to new subscriptions after two years from the effective date of this schedule. CUSTOMER USAGE PROFILE (CUP) Attached as Schedule (A) is a copy of the CUP Rules and Regulations. DEFINITION OF SEASONS AND PERIODS Seasons The On -Peak Season is defined as the calendar months of June, July, August, and September. The Off -Peak Season is defined as the calendar months of October through May. Periods The On -Peak Season contains a Peak and an Off -Peak period. The customer will select one of the Peak periods. The Peak periods are: Narrow Window: 3:00 p.m. to 7:00 p.m. weekdays (four hours); Standard Window: 2:00 p.m. to 8:00 p.m. weekdays (six hours); Wide Window: 1:00 p.m. to 9:00 p.m. weekdays (eight hours). The Off -Peak period includes all hours not listed above as Peak. Independence Day (July 4) and Labor Day (as observed) are excluded from the Peak period. The Off -Peak Season is included in the Off -Peak period. MONTHLY RATE The following matrix depicts the combination of options available with SelectChoicesm. The top row represents the three peak energy prices denoted as low, medium and high. The CENTRAL Pt, WER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 3 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exutbit II corresponding off-peak energy prices are represented by capital letters. Each peak price applies to the column of corresponding off-peak prices below it. For example, the high peak price is combined with the off-peak prices C, F or I to complete a TOU price schedule. The customer shall select one Window - Pricing combination from the matrix, which will be applied to the energy consumption during the chosen peak and off-peak periods for the SelectChoice. subscription term. Attached, as Schedule B is a copy of the SelectChoicesm energy prices that are currently in effect. The prices include the applicable fixed fuel factor component contained in Section B, Sheet 24, as of the effective date for this tariff. That component is subject to change, refund and surcharge according to the provisions of Section B, Sheet 24, and any other schedules that may become applicable to fuel costs pursuant to the fuel rule of the Public Utility Commission of Texas. Peak Prices Low Medium High TOU Peak Period Off -Peak Prices Narrow (4- hours) A B C Standard (6- hours) D E F Wide (8- hours) G H I MONTHLY BILL For each monthly billing period, the customer will be billed according to the following formula: Monthly Bill = Balancing Charge + Energy Charge + Program Charge + Adjustments Balancing Charge (BC) The balancing charge is independent of a customer's current usage, and is designed to achieve revenue neutrality with the customer's OAT and fuel factors in effect at the time of subscription if no change in the electricity usage level and pattern occurs from the level established as the customer's CUP. The balancing charge is recalculated at each annual renewal to reflect the currently approved energy prices. The balancing charge is also readjusted during subscription to reflect changes to the customer's OAT and fuel factors. The balancing charge is calculated using the following formula: BC = (Standard Bill cur- (kWhr`a`cup * Freak + kWhOecur * PC")) / 12 subject to: BC >_ $0 CENTRAL Pt . ER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 4 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Ex...oit II Where: BC Standard Billcup kWhPea` cur kWh°Fcur pPeak pOff = Balancing charge; = Annual CUP billed under the OAT and fuel factors excluding taxes, gross receipts, and fees; = A customer's CUP peak kWh usage for the 12 month period; = A customer's CUP off-peak kWh usage for the 12 month period; = The applicable posted peak price; and = The applicable posted off-peak price. Energy Charge (EC) Customers pay the peak and off-peak energy charges that are in effect at the time of subscription or resubscription for twelve months under SelectChoicesm. Attached, as Schedule B is a copy of the SelectChoicesm energy prices that are currently in effect. The monthly energy charge is calculated using the following formula: EC = (kWhPea` pPeak) + (kWh°R * PO'f) Where: kWh' = A customer's actual peak kWh usage in the current month; kWhO1r = A customer's actual off-peak kWh usage in the current month; PP`a` = The applicable peak price; and = The applicable off-peak price. P°" and p' ' contain a fuel cost component that is subject to change, refund and surcharge as specified in the Monthiv Rate section of this tariff schedule. The SelectChoicesm energy prices are revised semi-annually. The updated prices will apply to new subscriptions or resubscriptions entered during the semi-annual period in which the updated prices are in effect. Program Charge (PC) A monthly program charge of $10 will be assessed. Adjustments Fixed Fuel Factor and Gross Receipts Fee Adjustment This rate is subject to the provisions of Sheets 24 and 25, Section B: Rate Schedules. MINIMUM MONTHLY BILL The minimum monthly bill will be the program charge plus the monthly balancing charge. CENTRAL PC. , ER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 5 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exiuoit II RISK-FREE TRIAL PROGRAM The Risk -Free Trial Program provides first time subscribers with a guarantee for the initial year of service, that service taken under SelectChoice,m will cost no more than it would have under the OAT, except for the monthly program charge. The Company will credit the customer's account an amount equal to the difference between the sum of the bills levied under SelectChoicesm, excluding the Program Charge, and the terms and conditions of the OAT. Additional conditions include: 1. A Customer must complete a full year of service on SelectChoicesm; 2. The determination of the amount of any such credit shall be made by the Company, and any applicable credit shall be made to the account of the customers within thirty days of expiration of the customer's annual contract and 3. The guarantee is not extended to any of the S—TOU pilot participants who subscribe to SelectChoices,,. METERING VOLTAGE If the customer is receiving line side voltage service but the meter is on the load side of the transformer, the metered kW and kWh will be increased by 2% for billing purposes to recover transformer losses. If the customer is receiving load side voltage service but the meter is on the line side of the transformer, the metered kW and kWh will be reduced by 2% for billing purposes to adjust for transformer losses. TERMS AND CONDITIONS Service will be furnished under the Company's Service Rules and Regulations, Section D. CENTRAL POWER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 6 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exhibit II SCHEDULE A CUP RULES AND REGULATIONS The CUP is twelve months of peak and off-peak energy usage and associated billing determinants, derived from historic billing files that represent the electricity consumption pattern and level typical of the customer's operation under the OAT. For a customer who has an interval pulse recorder or time differentiated meter, the most recent twelve months of historical peak and off-peak data will be used to establish the CUP. For a customer who does not have an interval pulse recorder, the peak and off-peak energy quantities will be based upon the most recent twelve months of historical load data from either a similar operation or from a prototype load, and then adjusted to match the customer's billing quantities. As each customer is informed about SelectChoice,m, the CUP is determined and the customer will be informed of changes to the customer's historical usage profile that were made and of nontypical usage that may have occurred. Before a customer subscribes to SelectChoicesm, both the customer and the Company must agree to the CUP as representing the customer's usage pattern under the OAT. The following describes how adjustments to the customer's historical usage patterns will be made. Existing Loads and Existing Customers For subscription to SelectChoicesm, the Company will use either historical time period data or estimated historical data to develop the CUP. The Company will consider adjusting the CUP for several special conditions that may have affected the customer's load. These will be considered by the Company when reviewing the historical period and any adjustments to the historical period will be made only at the time of initial subscription, but not for resubscription. These conditions include, but are not limited to the following: • To adjust for missing or erroneous data; • To remove any standby and maintenance usage; • Unusual maintenance activities; • Equipment testing; • Equipment removal or partial plant closure; • Strike or any other temporary unplanned plant closure; • Equipment replacement; • Equipment upgrades to increase energy efficiency; • Shutdowns or outages; CENTRAL Pt, WER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: B Sheet: 32 Page 7 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exhibit II • Demand side management investments; and • Exceptional production conditions. The customer must provide documentation sufficient to substantiate any requested CUP adjustment. The Company, at its sole discretion, will determine whether to adjust the CUP. If the customer and the Company are unable to agree on the CUP, that customer will be precluded from participating in the SelectChoicesm Pilot Program. Load Additions by Existing Customers Generally, the Company will not increase the CUP when customers increase energy usage. If the Company is required to increase the capacity of the transmission or distribution facilities to accommodate a customer's increased load, then at the option of the Company, an additional facilities charge may be assessed, or the customer may make a contribution in aid of construction, or an increase to the CUP and associated billing determinants may be required. If a customer announces an increase in load before signing the SelectChoicesm rate change endorsement or contract, the Company may include all or a part of the incremental load in the customer's CUP. New Loads and New Customers The Company will attempt to reach an agreement on the appropriate CUP for new loads and new customers. An OAT must be designated for calculation of the standard bill for the monthly balancing charge. It may be necessary for the customer to make a one-time contribution or agree to pay a monthly facility charge sufficient to cover the cost of transmission and or distribution facilities to serve the customer's load. CENTRAL P..VER AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen. McAllen, and Victoria Section: B Sheet: 32 Page 8 of 8 Section Title: Rate Schedules Revision: Original Effective Date: Exnibit II SCHEDULE B SelectChoices,„ Pricing Options Are Designated by Capital Letters 4 Hour 3pm — 7pm 6 Hour 2pm — 8pm 8 Hour 1pm — 9pm Low A 7.92 0/kWh 4.12 0/kWh 2 7.92 0/kWh 4.04 0/kWh G 7.92 0/kWh 3.95 0/kWh Medium B 8.94 0/kWh 4.08 0/kWh E 8.94 0/kWh 3.97 0/kWh H 8.94 0/kWh 3.86 0/kWh SelectChoice,m energy prices effective July 1, 1998. High C 10.15 0/kWh 4.03 0/kWh F 10.15 0/kWh 3.89 0/kWh 1 10.15 0/kWh 3.75 0/kWh CENTRAL POW. AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: E Sheet: 14 Page 1 of 3 Section Title: Contracts & Miscellaneous Documents Revision: Original Effective Date: Exhik-., III SelectChoice,m PILOT PROGRAM TEMPORARY RATE CHANGE ENDORSEMENT CUSTOMER: ACCOUNT NO.: Effective with the meter reading on or about , 19 _, Customer and Central Power and Light Company (Company) agree that electric service shall be temporarily changed from Rate and Rider Schedule(s) and billed on the SelectChoicesm Pilot Program Rate Schedule, under the terms and conditions reflected in that Rate Schedule. The Customer and Company agree the monthly balancing charge, which is subject to change as provided in the tariff, to be paid by the Customer will be $ , and that the Customer has selected a _ hour peak period and peak/off-peak prices of __ 0/kWh and _ 0/kWh, respectively. The Company and Customer also agree that service will be metered at voltage and the fuel charges which have been incorporated into the SelectChoicesm Pilot Program charges are subject to change as noted on Sheet B-24, which has an effective date of March 2, 1998. For purposes of applying the Gross Receipts Fee Adjustment, the Customer will be treated as though it were being served on the Rate Schedules from which it has been temporarily removed. Following termination of service under the SelectChoicesm Pilot Program Rate Schedule, Customer will resume service under the other above -listed rate schedule(s) unless otherwise agreed to by Company and Customer. Customer usage while on the SelectChoicesm Pilot Program Rate Schedule will not be taken into consideration by Company in establishing billing demands or minimums when the Customer resumes service on the previous rate schedule(s); however, if the rate schedules under which service is resumed establish billing demands or minimums based on all or part of the prior twelve-month period, Customer and Company agree that such language will refer to the twelve months immediately preceding the initiation of service under the SelectChoicesmRate Schedule. APPROVED: APPROVED: Central Power & Light Company By: By: Customer Title: Title: Date: Date: CENTRAL PON 1 AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: E Sheet: 14 Page 2 of 3 Section Title: Contracts & Miscellaneous Documents Revision: Original Effective Date: ExhiG... IV SelectChoice„. PILOT PROGRAM NEW ACCOUNT RATE ENDORSEMENT CUSTOMER: ACCOUNT NO.: Effective with the meter reading on or about , 19 _, Customer and Central Power and Light Company (Company) agree that electric service shall be temporarily billed on the SelectChoice. Pilot Program Rate Schedule, under the terms and conditions reflected in that Rate Schedule. The Customer and Company agree the monthly balancing charge, which is subject to change as provided in the tariff, to be paid by the Customer will be $ , and that the Customer has selected a hour peak period and peak/off-peak prices of _ 0/kWh and _ 0/kWh, respectively. The Company and Customer also agree that service will be metered at voltage and the fuel charges which have been incorporated into the SelectChoices,,, pilot program charges are subject to change as noted on Sheet B-24, which has an effective date of March 2, 1998. Customer and Company agree that if the Customer were not being served under the SelectChoice., Pilot Program Rate Schedules, service would be provided under Rate and Rider Schedule(s) . For purposes of applying the Gross Receipts Fee Adjustment, the Customer is considered to be served on that rate schedule. Following termination of service under the SelectChoices. Pilot Program Rate Schedule, Customer will commence service under the other above -listed rate schedule(s) unless otherwise agreed to by Company and Customer. Customer usage while on SelectChoice. Pilot Program Rate Schedule will not be taken into consideration by Company in establishing billing demands or minimums when the Customers commences service on the other rate schedule(s). APPROVED: APPROVED: Central Power & Light Company By: By: Customer Title: Title: Date: Date: CENTRAL PC .14 AND LIGHT COMPANY TARIFF FOR ELECTRIC SERVICE Applicable: Cities of Corpus Christi, Harlingen, McAllen, and Victoria Section: E Sheet: 14 Page 3 of 3 Section Title: Contracts & Miscellaneous Documents Revision: Original Effective Date: Exhib►. 1 SelectChoice,n, PILOT PROGRAM RATE CONTINUATION ENDORSEMENT CUSTOMER: ACCOUNT NO.: Effective , 19 Customer and Central Power and Light Company (Company) agree that electric service shall be temporarily billed on the SelectChoice91 Pilot Program Rate Schedule, under the terms and conditions reflected in that Rate Schedule. The Customer and Company agree the monthly balancing charge, which is subject to change as provided in the tariff, to be paid by the Customer will be $ , and that the Customer has selected a _ hour peak period and peak/off-peak prices of _ 0/kWh and _ 0/kWh, respectively. The Company and Customer also agree that service will be metered at voltage and the fuel charges which have been incorporated into the SelectChoicesm Pilot Program charges are subject to change as noted on Sheet B-24, which has an effective date of March 2, 1998. Customer and Company agree that if the Customer were not being served under the SelectChoicem, Pilot Program Rate Schedules, service would be provided under Rate and Rider Schedule(s) . For purposes of applying the Gross Receipts Fee Adjustment, the Customer is considered to be served on that rate schedule. Following termination of service under the SelectChoice„m Pilot Program Rate Schedule. Customer will commence service under the other above -listed rate schedule(s) unless otherwise agreed to by Company and Customer. Customer usage while on SelectChoice,m Pilot Program Rate Schedule will not be taken into consideration by Company in establishing billing demands or minimums when the Customers commences service on the other rate schedule(s). APPROVED: By: Customer APPROVED: Central Power & Light Company By: Title: Title: Date: Date: APPENDIX (Section 1) SelectChoicesm Pilot Program gives customers a choice of prices and time -of -use peak periods so that the service can be customized to meet various needs. Like conventional time -of -use (TOU) rates, the energy prices in SelectChoicesm vary between designated On -Peak and Off - Peak periods. Unlike conventional TOU rates, which typically include a single, standardized TOU peak period, SelectChoicesm offers customers a choice of three TOU periods, each with a unique On -Peak and Off -Peak pricing combination. In all, SelectChoicesm offers customers nine choices of prices and includes a customer specific balancing charge. These choices are created by combining the three On -Peak period windows (Narrow, Standard and Wide) with the three On -Peak period prices (Low, Medium and High) and can be visualized as a 3 x 3 matrix of choices as shown in Table 1. Table 1 SelectChoicesm Price Matrix On -Peak Prices Low Medium High TOU On -Peak Periods Off Peak Prices Narrow (4 - hours) A B C Standard (6 - hours) D E F Wide (8 - hours) G H I The three On -Peak time periods are: 3:00 p.m. to 7:00 p.m. (a four hour peak window); 2:00 p.m. to 8:00 p.m. (a six hour peak window) or 1:00 p.m. to 9:00 p.m. (an eight hour peak window). Hours in the On -Peak are the consecutive daily peak hours centered around 5:00 p.m. for the weekday hours during the summer months of June through September, excluding holidays. All remaining hours of the year are designated as Off -Peak. By having several choices, customers with different operational requirements have more opportunity to identify a choice that best fits their needs. Some customers may have processes or work shifts that can be moved to other times and may benefit most from an eight hour peak period and higher peak prices within that period. Other customers may only be able to shift load for a shorter period of time and may not be certain of their abilities to reduce load consistently; they may benefit most from a four-hour peak period. Currently, the Company believes nine choices offer customers ample flexibility, while remaining administratively feasible. For many customers, SelectChoicesm has simplified billing. The SelectChoicesm bill consists of four major components: (1) Balancing Charge, which replaces the delivery charge in the S-TOU pilot, (2) On -Peak Energy Charge, (3) Off -Peak energy charge, and (4) Program Charge. Each customer pays a customer -specific balancing charge that is calculated at the beginning of the annual subscription and levied as a fixed monthly charge. The balancing charge is designed such that the customer's annual SelectChoicesm bill, exclusive of the program charge, will match the annual bill under the standard tariffs, including riders, if the customer's consumption pattern is identical to the Customer Usage Profile (CUP). In most Stances, the CUP will simply be the customer's most recent 12 -month historical load shape prior to participating in the SelectChoice,m pilot. By design, if the customer's kWh consumption deviates from the CUP, the SelectChoicesm bill will vary from the amount that would have been paid on the standard tariffs. By using more or less energy during the peak and off-peak periods, the bill will change by the amount determined by the corresponding SelectChoicesm peak and off-peak prices applied to such incremental or decremental kWh usage. If there is no load change, the customer pays the same annual charges, exclusive of the program charge, under the standard tariffs and SelectChoicesm. The energy charge is the summation of the peak and off-peak energy charges. The peak energy charge is calculated by multiplying the customer's metered kWh consumption in the peak period by the pricing option's peak price. The off-peak energy charge is calculated by multiplying the customer's metered kWh consumption in the off-peak period by the pricing option's off-peak price. SelectChoicesm offers three levels of peak prices that are derived using a cost formula that incorporates both marginal costs and other cost factors. This formula consists of six cost elements: (1) Marginal Energy Costs (MEC), (2) Non -fuel Variable Production Operating and Maintenance Expense (NFVOM), (3) Losses (LOSS), (4) Marginal Capacity Costs (MCC), (5) Marginal Transmission Costs (MTC), and (6) a Risk Adjustment Factor (RAF). The peak energy prices are developed through the summation of the six estimated marginal cost elements where the subscript (,) indicates a summation over the hours of the year defined by the TOU period applicable to the option being priced, as follows: EC, = E (MEC, + NFVOM + LOSS + MCC, + MTCt, + RAF,) The three On -Peak prices are linked to three Off -Peak prices each associated with either the narrow, standard or wide peak period window. To calculate the nine off-peak prices, the Company first derived the off-peak price for cell "C" (refer to Table 1) from the formula and cost elements used to establish the peak prices. The Company derived the remaining off-peak prices based on the same revenue equalization algorithm used to compute the S-TOU off-peak prices. Appendix (Section 2) demonstrates the application of the revenue equalization algorithm used to compute the final off-peak prices. Like S-TOU, the energy charges under SelectChoicesm incorporate a fuel cost that recovers fuel at the rates authorized by the Public Service Commission of Texas (PUCT). By design, each SelectChoicesm option is revenue neutral with respect to the customer's CUP priced at the prevailing tariffs and fuel factors. If the PUCT authorizes a change to either the tariffs or the fixed fuel factors, the Company will recalculate the balancing charge to incorporate the new tariffs and/or fuel factors to maintain revenue neutrality. 2 The $10 program charge recovers the added cost of serving the customer on the program, including metering, billing and administration. This charge will be added to the monthly bill. This is the same monthly program charge assessed in the S-TOU pilot. These prices will apply to all new or renewed subscriptions during the succeeding six months and will be applicable for one year. Thus, once a customer selects a pricing option, the customer's balancing charge will be calculated using the corresponding posted peak and off- peak prices for that option, and these prices will be applied to kWh usage for that customer for one year. If the customer resubscribes in the second year, the prices for the next twelve months of service will be those in effect at the time of renewal. 3 Appendix (Section 2) Application of the Revenue Equalization Algorithm Once the three peak and cell "C" off-peak energy prices have been set using the cost formula, the revenue equalization algorithm is applied to calculate the remaining off-peak energy prices as follows. Where: pOff RR PPeak HPeak Hoff poll _ i 1 {RR pPeaki * HPeak l Horf = Off-peak energy prices for Cells A, B, D, E, F, G, 11, and I Where subscript j denotes the off-peak energy price Cell; = Revenue requirement established from Cell C and PPeakHigh; = Applicable peak price (low, medium and high); = Number of hours in the 4, 6, and 8 hour peak (360, 540 and 720); = Number of hours associated with the off-peak period (8400, 8220, and 8040); Example: poffe PPeak High Peak Medium PPeak Low = 4.03C = 10.150 = 8.94C = 7.92C Step 1: Calculate RR: RR = (Hours in 4 Hour Peak Period * PPeak high) + (Hours in 4 Hour Off -Peak Period * re) = (360 hours * 10.150) + (8400 * 4.030) = $375.06 Step2: Calculate the Remaining Off -Peak Energv Prices: pOff _ (RR - (pPeak * Weak )) Hoff Narrow Window and Low Peak Price Narrow Window and Medium Peak Price porrA = $375.06- (7.92C * 360) 8400 4 p°ff B = 4.12c = $375.06- (8.94C * 360) 8400 Standard Window and Low Peak Price P°ff° = $375.06- (7.92C * 540) 8220 = 4.04C Standard Window and High Peak P°fff = $375.06- (10.15C * 540) 8220 = 3.89C Wide Window and Medium Peak Price P°ff„ = $375.06- (8.94C * 720) 8040 =3.86C 5 = 4.08C Standard Window and Medium Peak Price P°fE = $375.06- (8.940 * 540) 8220 = 3.970 Wide Window and Low Peak Price p°ff° = $375.06- (7.920 * 720) 8040 = 3.950 Wide Window and High Peak Price P°f, = $375.06- (10.150 * 720) 8040 = 3.750 T . this the l%/ the foregoing ordinance s read for the first time and passed to its second reading on day of hJ, 1998, by the following vote: Samuel L. Neal Jr. Javier D. Colmenero Melody Cooper Alex L. Garcia, Jr. Dr. Arnold Gonzales John Longoria Betty Jean Longoria � ���� Edward A. Martin �qqL469-41 airilDr. David McNichols Tat the foregoing ordinance was read for the second time and passed finally on this the /57/1 day of „/y7 , 1998, by the following vote: Samuel L. Neal Jr. Javier D. Colmenero Melody Cooper Alex L. Garcia, Jr. Dr. Arnold Gonzales PASSED AND APPROVED, this the ATTEST: ha a S reta Armando C p , City ry APPROVED THIS 3 DAY OF John Longoria Betty Jean Longoria Edward A. Martin Dr. David McNichols QU day of S(131998. amuel L. Nea , Jr., Mayor THE CITY OF CORPUS CHRISTI Sart , 1998: JAMES R. BRAY, JR., CITY ATTORNEY may. a. H VLEG-DIRJIMMY\WPDOCSVCPL\8JRB3111. 102(dkw) 023437 3