ordinance amending Section 22-196 (1) Rate schedule
(2) Rate schedule GS, general
(3) Rate schedule GSD, general
and (4) Bulk power cost
Based on recommendations
received in the electric and gas rate study performed in 2004, the City
implemented an automatic annual rate adjustment
the Gross Domestic Products Implicit
Price Deflator Index (GDP) provided by the Bureau of Economic Analysis. Cost
increases for raw materials such as copper and oil have caused prices to
outpace this index for renewal and replacement items such as wire, conduit,
transformers and other copper and petroleum based commodities. In addition,
salaries and other operating costs have increased at rates higher than the
inflation index to keep pace with inflation and competition. Management has
begun research to determine if the GDP index is the appropriate index to be
using for our needs.
Staff has determined that an immediate increase of 8% for all rate classes will provide correction to the rate compression suffered as a result of the deficiency between the GDP index and actual inflation. The 8% increase will only affect the customer charge, energy rate, and one of three components of the fuel cost adjustment. Therefore, the customer will only experience a net increase of 3% to 5%.
Because the proposed
an equal rate to all
customer classes and does not cause change to rate structure between customer
classes, Florida Public Service Commission does not
have jurisdiction over this change, so a detailed
rate study will not be required. The
new rates presented in the ordinance will be forwarded to the Public Service
Commission (PSC) in the form of tariff sheets.
PSC assures that we are not changing rate structure and approves
the revised tariff sheets, the ordinance will be presented to the Commission
for second reading and approval.
City staff will soon
recommend by a later resolution t
the City commission
new rate study for gas and electric rates to correct inadequate energy rates
compared to energy costs in some customer classes.
1. Approve ordinance amending the Code of Ordinances Section 22-196, subsections 1-5, electric rate schedules including bulk power cost adjustment, or
2. Such alternate action as the Commission may deem appropriate.
change will result in an additional
$___________ in revenue
across all classes and provide for future expenditures anticipated in fiscal
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____ ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________