AGENDA MEMORANDUM

 

 

Meeting Date:           June 11, 2007

 

From:                          Paul Kalv, Electric Director

 

Subject:                      Resolution authorizing an agreement with R. W. Beck, Inc. for an Electric Cost of Service and Retail Rate Design Study

 

 

Staff Recommendation:

Staff recommends approval of an agreement for an Electric Cost of Service and Retail Rate Design Study.

 

Analysis:

Power supply received through FMPA together with the City’s ownership in the St. Lucie and Crystal River nuclear power plants represents more than 60% of the Electric Department’s annual operating expense.  Individual billing determinants that comprise the City’s total power supply cost include energy and demand billing rates for the FMPA provided portion of our power supply; energy billing rates for the St Lucie and Crystal River provided portion of our power supply; and a demand billing rate for all energy delivered to Leesburg.

 

In order to recommend appropriate retail electric rates to the Commission, it is important to understand the contribution to our total power supply cost that is attributable to each customer class (Residential, General Service Non-Demand, and General Service Demand).  Determining the proper cost allocation across customer classes is critically important in order to ensure that retail rates are developed to recover the appropriate share of our expenses from each customer class.

 

The last cost of service and rate study was performed during 2004 and it is appropriate to conduct a Cost of Service and Retail Rate Design study at this time in view of our changing cost of energy.

 

Options:

1.  Approve the Electric Cost of Service and Retail Rate Design Study Agreement, or;

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

Although funds were not specifically appropriated in account number 041-1021-531-31-10 419230 in accordance with the adopted budget, $35,000 is available within the operating category for this purpose.

 

 

Submission Date and Time:    6/11/07 3:01pm____

 

 

Department: _Electric_______________

Prepared by:  __Connie Lambert______                     

Attachments:         Yes_X__   No _____

Advertised:   ____Not Required __X___                     

Dates:   __________________________                     

Attorney Review :       Yes_X__  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head _Paul Kalv

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-1021-531-3110___

 

Project No. __419230____________

 

WF No. ______________________

 

Budget  _____$52,000___________

 

Available ____$51,565___________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH R.W. BECK, INC. FOR AN ELECTRIC COST OF SERVICE AND RETAIL RATE DESIGN STUDY; AND PROVIDING AN EFFECTIVE DATE.

 

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement with R. W. Beck, Inc, whose address is 800 North Magnolia Ave, Suite 300, Orlando, Florida 32803, for an Electric Cost of Service and Retail Rate Design Study.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the ___11th_ day of ____June_____ 2007.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk