Proposed Electric and Water Utility Rate Increase. Community Meetings. RiversidePublicUtilities.com

Transcription

1 Proposed Electric and Water Utility Rate Increase Community Meetings 1

2 What we will cover tonight: 1. Why is a rate increase needed? 2. How will it affect me? 3. What can I do? 4. Questions 2

3 Population Growth 324, ,000 Population 300, , , , ,000 46,764 50, Sources: American Fact Finder/Census.gov and State of California, Department of Finance 3

4 26% CHALLENGES: Aging infrastructure 22,

5 65 Substation Transformers

6 824 miles Distribution Mains 30% 60+ 6

7 Aging Pipes 80+ Years old Years old 1-50 Years old 7

8 8

9 Harvey Lynn Substation Explosion Harvey Lynn Substation Explosion March 2014 From this to this. 9

10 10

11 Sept. 2017: 12 Deaths due to Power Failure at Florida Care Center 11

12 Electric System 10 Year Plan 50% Renewable Energy 0% Coal Reliance Regulatory Compliance 1 Substation 7 Transformers 5,900 Poles City-wide Voltage Conversions System Automation 77 Miles of Underground Cable 12

13 Water System 10 Year Plan Recycled Water Storm Water Capture 5 Wells North Waterman Treatment Plant 80 Miles of Pipeline Replace Techite Pipe 3 Pressure Stations System Automation 13

14 2,400 miles 14

15 7 Years Without a Rate Increase 7 Years since the last water increase (2010) 7 Years since the last electric increase (2010) Renewable Power Requirements Increased from 20% to 50% since the last rate plan Five-year California Drought ( ) Hottest and Driest in Instrumental Record since the late 1800s 15

16 Cost Increase of Average Household Items 50% 58% Tide Laundry Detergent $ $ pound of bacon $ $ % 1 pound of potatoes $ $0.78 Movie ticket $ $ % iphone $399 iphone $649 63% Source: ThePeopleHistory.com/pricebasket.html Source: Apple.com 16

17 Keeping Rates as Low as Possible 1. Transmission Revenues $36-40 million/year 2. Cap-and-Trade Revenues $5 million/year 3. Western Water Sale Agreement ~$5 million/year 4. Excess Renewable Energy Sales $3-5 million/year 5. Solar at Well Sites $800,000/year 6. Scheduling Services $750,000/year 7. $85 Million Line of Credit reduced cash reserves year Lease with Hillwood potential for $45 million 17

18 Rates Lowered to Stay Affordable 6.3% Electric 17.5% Water 4.8% 8.6% Before After Base Rate Before Plan Without Other Revenue or Line of Credit After Base Rate Plan With Other Revenue and Line of Credit 18

19 Average Annual Rate Increase Years 1-5 ( ) Electric 4.8% (5-Year Average) Water 8.6% (5-Year Average) Years 6-10 ( ) Annual Cost-Based Price Adjustment Annual Cost-Based Price Adjustment 19

20 Average Monthly Bill Increases Years 1-5 Low-Use 355 kwh 12 CCF Electric $3.11 (5%) Water $4.05 (12%) Typical-Use 592 kwh 19 CCF $5.18 (5%) $4.56 (10%) High-Use 1400 kwh 29 CCF $11.56 (4%) $6.48 (8%) Includes Public Benefits Charge and Water Conservation Surcharge kwh = kilowatt hour CCF = one hundred cubic feet 20

21 What the Electric Rate Increase Pays For Electric: 4.8% first 5 years; price escalator next 5 years 5,900 Poles 77 Miles Cable 7 Substation Transformers Infrastructure 22% Renewable Energy 30% 50% Renewable Energy 0% Coal 1 Substation Voltage Conversions System Automation Charter Transfer to General Fund Financial Policies 22% System Operations 26% System Maintenance Fleet & Fuel Labor Minimum Reserve Levels 21

22 What the Electric Rate Increase Pays For Infrastructure 1.1% = 22% of new money System Operations 1.3% = 26% of new money System Average Increase Proposed 4.8% Increase Financial Policies 1.0% = 22% of new money Renewable Energy 1.4% = 30% of new money Renewable Energy Financial Policies System Operations Infrastructure 22

23 What the Water Rate Increase Pays For Water: 8.6% first 5 years; price escalator next 5 years 80 Miles Pipeline Replace Techite Pipe 1 Treatment Plant 5 Wells 3 Pressure Stations Recycled Water & Stormwater Capture System Automation Infrastructure 44% Financial Policies 13% System Operations 43% Charter Transfer to General Fund Minimum Reserve Levels System Maintenance Fleet & Fuel Labor 23

24 What the Water Rate Increase Pays For 24

25 Rates Remain Lower Than Other Agencies Electric Water $20 lower $61 lower per month$41 lower Electric based on 592 kwh per month Water based on 19 CCF per month Southern California Edison Riverside Western Municipal Water District Riverside 25

26 1. SHARE Program Low-Income Assistance 2. Energy Savings Assistance Program 3. Energy/Water Efficiency Rebates 4. Affordable Solar Energy for Riverside 5. Water Rate Assistance 6. Increased Outreach 26

27 What Can I Do? Typical Residential Monthly Electric Bill: Decrease if Implemented Current Bill $91 $5 Proposed Bill Increase Retail Cost of 10 Bulbs $40 RPU's Contribution ($30) Customer Cost $10 $7 New Net Bill $89 27

28 What Can I Do? Typical Residential Monthly Water Bill: Install a Weather Based Irrigation Controller (WBIC) & 25 Free Sprinkler Nozzles Decrease if Implemented Current Bill $38 $5 Retail Cost of a WBIC $250 RPU's Rebate ($200) $6 New Net Bill $37 Proposed Bill Increase Customer Cost $50 FreeSprinklerNozzles.com $0 28

29 What Can I Do? Electric Water 29

30 Other Resources 1. Website Rate calculator, FAQs, Rate Plan Documents, Ways to Save 2. Flyers Fact Sheet, FAQs 3. Customer Service Dial Bill Inserts 5. Upcoming Community Meetings 30

31 Community Meetings 31

32 Community Outreach PROPOSAL OUTREACH WORKSHOP RECOMMENDATION IMPLEMENTATION August 28 RPU Board September 26 City Council October - November November 28 Joint RPU Board/City Council January RPU Board February City Council April 2, 2018 Outreach Goals 1. Describe proposal 2. Answer questions 3. Get feedback Outreach Process 1. Community meetings in all Wards 2. Informational mailers 32

33 Proposed Electric and Water Utility Rate Increase Questions/Comments 33

34 Extra Slides

35 Bonds All Proceeds Used up 6/30/16 Electric Reserves being drawn down Water 35

36 Reserves (Electric) Falls Below Minimum in a Year $500,000 $400,000 $300,000 In Thousands $200,000 $100,000 $- $(100,000) Revenues Expenditures Undesignated Reserve Target Minimum 36

37 Reserves (Water) Falls Below Minimum in a Year $100,000 $80,000 $60,000 In Thousands $40,000 $20,000 $- $(20,000) Revenues Expenditures Undesignated Reserve Target Minimum 37