Title
Draft Resolution - Approval to Amend Tariff and Business Rules - Industrial Rate - N Mack | D Thompson
Other Info
Submitted By: David Thompson
Department: Markets
Financial Impact and Cost/Benefit Considerations: Expenditure of Cooperative funds is not anticipated to be impacted; expenditures of staff time is not anticipated to be impacted. Recommended changes to the Industrial Power Service Rate schedule better align the rates with the Cooperative's costs to provide service.
Discussion
The Cooperative's Rate Policy requires a Cost-of-Service Study to be conducted at regular intervals to guide rate design and as an input to the Rate Plan. The Rate Plan defines how the Cooperative anticipates recovering its costs from members for services provided during the upcoming year. The proposed 2023 Rate Plan references review of the Industrial Power Service Rate.
As a component of the Industrial Power Service Rate, the Capacity Demand Charge generally recovers the cost associated with the maintenance and operations of the distribution infrastructure and other related costs. The Industrial Rate's Capacity Demand Charge is reviewed annually to ensure the rate closely aligns with the cost to provide service; After review, the recommendation is to adjust the Tariff and Business Rules (the "Tariff") as to "Industrial Power Service" Section 500.2.2.3 by decreasing the Capacity Demand Charge from: $0.580000 kW to $0.490000 per kW.
Tariff amendment and effective date is shown below:
? Industrial Power Service, Section 500.2.2.3 - Effective for all bills issued on and after March 1, 2023
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Cooperative approves the amendments to the Tariff and Business Rules as attached hereto with such changes, if any, as were approved by the Board, to become effective upon Board approval, unless otherwise specified in the Tariff and Business Rules; and
BE IT FURTHER RESOLVED that the Chief Executive Officer, ...
Click here for full text