Staff recommends approval of an agreement for an Electric Cost of Service and Retail Rate Design Study.
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.
1. Approve the Electric Cost of Service and Retail Rate Design Study Agreement, or;
2. Such alternative action as the Commission may deem appropriate
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.
Prepared by: __Connie Lambert______
Attachments: Yes_X__ No _____
Advertised: ____Not Required __X___
Attorney Review : Yes_X__ No ____
Reviewed by: Dept. Head _Paul Kalv
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _041-1021-531-3110___
Project No. __419230____________
WF 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.