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    6. 29.    
Regular City Council Meeting
Meeting Date: 09/10/2019  

Information
Agenda Item
Resolution - Lubbock Power & Light: Consider a resolution adopting the Electric Rate/Tariff Schedule (Tariff) of Lubbock Power & Light (LP&L), the City of Lubbock's municipally owned electric utility, applicable to all rate classes, effective October 1, 2019.
Item Summary
A clean copy of the Tariff, along with a red-lined copy of the Tariff is provided for documentation information. The attached Tariff does not include a rate increase for any rate class. The material changes in the Tariff for the City Council consideration are summarized as follows:

I. Deposits:
  • Deposits are required for residential customers who have had their utility service “subject to interruption for nonpayment” (historically, the tariff stated “disconnected for nonpayment”)                      
  • The re-application of a deposit is currently different for residential and commercial customers.  The recommended change is to align the requirements for both types of customers.  Historically, a residential customer could have their deposit re-applied if they were disconnected for nonpayment.  The recommended change would allow LP&L to re-apply the deposit under the following circumstances:
    • Customer is delinquent and has been subject to interruption on more than two occasions in a 12-month period
    • Check returned for insufficient funds
    • Tampering or theft of service
    • Failure to comply with agreed payment plan
 
II. Deposit Refund:
  • A new section, titled “Deposit Refund” has been added.  A customer is eligible for a deposit refund when the following conditions are met:
    • Have been a residential customer for 12 months or non-residential customer for 24 months, and services have not become delinquent or subject to interruption on more than two occasions in a 12-month period
    • Check has not been returned for insufficient funds
    • Tampering or theft of service has not occurred
    • Have complied with agreed payment plans
  III.  Access to Premises:
  • The Tariff currently states that LP&L, or its authorized agents, shall have safe access at all reasonable hours to the premises of customers for the purpose of inspecting wiring and apparatus, removing or replacing of LP&L’s property, and reading of meters and all other purposes incident to supplying of electric utility service.
  • New language is added to allow LP&L to take additional action to gain access, if necessary.  
 IV.  Net Metering Rates:
  • Added language that if a Customer interconnects distributed generation to the LP&L system, they are required to enter into an interconnection agreement or be subject to disconnection from the LP&L system.  
 V.  Demand:
  • LP&L will furnish at its expense the necessary metering equipment to measure the customer’s kW demand for the 15 or 30-minute period (as applicable per LP&L’s metering technology selected) of greatest use during the month. The addition of 15-minute periods is related to the installation of Advanced Metering Infrastructure (AMI) technology.  
 VI.  Demand Cap Phase Out:
  • For certain low load-factor commercial customers, who are affected by a demand cap in Rates 15, 16, 16P and 17, the demand charge is currently limited.  This limitation has been in place for approximately 10 years and results in slightly higher rates for customers that do not benefit from the demand cap.
  • In FY 2015-16, the Electric Utility Board began phasing out the demand cap in the four aforementioned rate classes. The Board recommends the fifth year of a multi-year phase-out of the demand cap. The phase-out approach ensures that no customer will see more than a 20% adjustment on their statement related to the demand cap adjustment.
  • The Tariff under consideration also ensures that customers who use the distribution system inefficiently will no longer be subsidized by other customers, once the cap is completely eliminated.  
VII.  New and Updated Rate Classes:
  • Transmission General Service, Rate 16T:  A new rate class for Transmission General Service has been added.  This class will include all commercial and industrial customers for electric service supplied at transmission voltage of 69kV or above.
  • State University General Service, Rate 16U:  The Energy Charge for this rate class has been updated to reflect the terms of the latest contract with the Texas Tech University System, which was approved in December 2018.  
VIII. Disconnect/Reconnect Fees:
  • Historically, customers were only charged a reconnect fee.  The cost to disconnect and reconnect were bundled into one charge for reconnection.  This change splits the charge in half and charges one-half as a disconnect charge and one-half as a reconnect charge.  This more fairly splits the charge to the customer who causes an expense to LP&L of physically disconnecting or reconnecting the meter.  If a customer is disconnected for nonpayment and subsequently reconnected, the overall charge is not increasing.
  • Where a customer is disconnected or reconnected due to a delinquent account:
    • The current reconnect fee of $55.00 during business hours, has been changed to a service charge of $27.50 for new disconnect and $27.50 for a new reconnect.
    • The current reconnect fee of $87.00 after business hours, has been changed to a service charge of $43.50 for new disconnect and $43.50 for a new reconnect.
    • The current reconnect fee at the pole of $115.00 during business hours, has been changed to a service charge of $57.50 for new disconnect and $57.50 for a new reconnect.
    • The current reconnect fee at the pole of $150.00 after business hours, has been changed to a service charge of $75.00 for new disconnect and $75.00 for a new reconnect.  
IX.  Alternative Meter Charge:
  • The installation cost is waived on the first opt-out request per customer.  Historically, the end date of the waiver was not clear; therefore, the specific date when alternative meter charges will be imposed has been added.  The date, April 30, 2020, corresponds with the conclusion of the AMI installation timeframe.  
X.   Purchased Power Cost Recovery Factor (PPRF):
  • Change the name to “Power Cost Recovery Factor (PCRF)” due to the termination of the full-requirements contract with SPS and the resulting changes in power supply.  Through at least FY 2020-21, power costs will include power purchases plus self-generation from LP&L-owned generating units.
  • Language describing the collection of funds for the SPS hold-harmless payment (due on or about June 1, 2021) is amended to allow those funds to be set aside in a reserve fund.  
The Electric Utility Board recommends the adoption of the Electric Rate/Tariff Schedule attached hereto, effective October 1, 2019.
Fiscal Impact
The attached Tariff does not include a rate increase for any rate class.
Staff/Board Recommending
Electric Utility Board.

Attachments
Resolution - LP&L Tariff
Resolution - EUB Rate Schedule
FY 2019-20 Electric Rate Tariff - Final
FY 2019-20 Electric Rate Tariff - Redlined

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