Title
Resolution - Approval to Amend Tariff and Business Rules - 2021 Rate Plan Items - N Mack | D Thompson
Other Info
Submitted By: Robyn Miller on behalf of David Thompson
Department: Markets
Financial Impact and Cost/Benefit Considerations:
Expenditure of Cooperative funds is not anticipated to be impacted; expenditures of staff time not anticipated to be impacted. Recommended Rate changes will aim to resolve under-collecting from current rates as shown in the 2020 Cost of Service Study.
Discussion
The Board approved its 2021 Rate Plan in November 2020 pursuant to its Rate Policy. The Rate Plan is updated annually and defines how the Cooperative anticipates recovering its costs. As part of the annual Rate Plan, the rate component amounts are reviewed to determine if they collect and track with the Cooperative's actual costs. The Transmission Cost of Service Charge and the Base Power Charge require adjustment. The Transmission Cost of Service Charge needs to be raised $.001000 per kWh to align with increasing transmission access costs incurred by the Cooperative. The Flat Base Power Charge needs to be lowered $.001000 per kWh and the TOU Base Power Charge needs to be lowered accordingly to align with decreasing power costs incurred by the Cooperative. The net bill impact of these Rate adjustments will be neutral to all Members with the exception of certain Time-of-Use Members based on their specific usage patterns.
Furthermore, the 2020 Cost of Service Study and the 2021 Rate Plan recommended the following actions:
* Update the shapes of the Time-of-Use Base Power Charge and establish a process to review these shapes annually, and make recommendations to Time-of-Use Base Power Charge as part of the annual Rate Plan review.
* Remove the following Rates as either are no longer necessary or required:
? The College Discount Rider (Current Tariff Section 500.3.6)
? The Revenue Adjustment Factor (RAF) (Current Tariff Section 500.1.12)
? The Power Plant Start S...
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