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HomeMy WebLinkAbout2012 Board of Water and Light Electric Water and Steam Rate ChangesPROPOSED ELECTRIC AND WATER RATE CHANGES LANSING BOARD OF WATER AND LIGHT 1232 HACO DRIVE LANSING, MICHIGAN 48933 Letter to City Clerk dated December 05, 2011 Attachment A is the public hearing notice to be published in a newspaper of general circulation. Attachment B is a copy of the proposed rate schedules. The effective dates of the proposed rate schedules for Water, Steam, and Electric, would be March 1, 2012. Attachment C presents the effect on various monthly billings to customers of the proposed changes to the Water, Steam, and Electric rate schedules. Lansing Board of Water and Light 1232 Haco Drive Q )JVJ Lansing, M1 48912 Hometown December 05, 2011 Mr. Chris Swope, City Clerk City of Lansing 124 W. Michigan Avenue, 9th Floor Lansing, MI 48933 Dear Mr. Swope: o m c-) o rn M GJ This letter and attachments are being filed with the City Clerk as required in Article 5, Chapter 2, Section 5- 205.2 of the Lansing City Charter regarding changes in rate structures and other charges. The Board of Water and Light adopted the current Water, Steam, and Electric rate schedules on March 1, 2011. Proposed Changes Rate Changes for Fiscal Year 2012 Water and Steam The proposed changes would increase the revenue available to operate and maintain the water and steam systems. Accordingly, the Board of Commissioners has under consideration the attached proposed increases. If adopted, the water and steam annual customer billings would increase as follows: Water: Effective March 1, 2012 $2,547,000 Steam: Effective March 1, 2012 $ 834,502 Electric The BWL's electricity production occasionally exceeds the requirements of retail customers and the excess is sold on the wholesale power market. The sales of excess electricity production in the wholesale market is an integral part of providing electric service to BWL retail customers, and should not be treated as a stand-alone business. In order to recognize that the wholesale sales are integral to BWL electric operations, offsetting revenue -neutral rate adjustments are under consideration by the Board of Commissioners. The proposed adjustments would decrease the electric ECA rate by $0.0035 per kWh and increase electric commodity charges by $0.0035 per kWh. The proposed rate adjustments will not take effect until March 1, 2012. 1232 Haco Drive I PO Box 13007 1 Lansing, MI 148901-3007 1517-702-6000 1 www.lbwl.com Hometown Public Hearing Lansing Board of Water and Light 1232 Haeo Drive Lansing, NII 48912 A public hearing, scheduled for Thursday, January 19, 2012, at 5:30 p.m., in the Board of Water and Light Boardroom at 1232 Haco Drive will provide for public input on these changes. Revenue and Customer Impact The proposed changes will increase water customer billings by $2.5 million and steam customer billings by $0.8 million annually. The impact on any individual customer will vary depending upon the type of service received and customer consumption of electricity, water and steam. The effect on various customer usage levels is shown in Attachment C. Very truly yours, `/�- &.' '- , M. Denise Griffin Corporate Secretary cc: J. Peter Lark, General Manager Susan Devon, Assistant General Manager & Chief Financial Officer 1232 Haco Drive I PO Box 13007 1 Lansing, MI 148901-3007 1 517-702-6000 1 www.lbwl.com Attachment A Notice of Public Hearing NOTICE OF PUBLIC HEARING ON PROPOSED WATER, STEAM, AND ELECTRIC RATE CHANGES BOARD OF WATER AND LIGHT OF THE CITY OF LANSING, MICHIGAN A Public Hearing will be held on Thursday, January 19, 2012 at 5:30 p.m. in the Board of Water and Light Boardroom at 1232 Haco Drive, Lansing Michigan. Members of the public are invited to attend. Signs directing people to the hearing room will be posted. PURPOSE OF THE HEARING: The Board of Water and Light will solicit comments from the public on PROPOSED WATER, STEAM, AND ELECTRIC RATE SCHEDULES. THE PROPOSALS being considered by the Commissioners would INCREASE RATES FOR WATER AND STEAM and provide offsetting revenue - neutral rate adjustments for ELECTRIC. REASON FOR CHANGE: The proposed rate adjustments will provide additional revenue to operate and maintain the water and steam systems. The proposed rate adjustments will partially offset costs of operating and maintaining the water and steam systems. IF YOU WANT TO BE HEARD: Comments, oral or written, may be submitted at the public hearing. Mailed comments will be received until 5:00 p.m. on January 18, 2012, addressed to the Board of Water and Light, P. O. Box 13007, Lansing, Michigan 48901, Attention: Corporate Secretary. Comments MUST BE LIMITED TO THE PROPOSED RATE CHANGES. The hearing officer may impose time restrictions on oral comments, depending on the number of persons wishing to be heard. FURTHER INFORMATION: Copies of proposed rate schedules and other data may be picked up at the information desk on the first floor of the Board of Water and Light Customer Service Center, at 1232 Haco Drive or at the reception desk on the second floor of the Administration Building at the same address between 8:00 a.m. and 5:00 p.m., Monday through Friday. This material will also be available at the public hearing. PUBLISHED BY ORDER OF THE BOARD OF WATER AND LIGHT COMMISSIONERS M. Denise Griffin Corporate Secretary Date Posted. 110412012 Attachment B Proposed Fiscal Year 2012 Rate Schedules Board of Water & Light, Lansing, Michigan — Water Utility Rates RESIDENTIAL WATER SERVICE RATE NO. 1 Availability - This rate is available to any single-family residence or multifamily dwelling of 4 units or less served by one meter. Monthly Rate - Shall be computed in accordance with the following charges. Basis Service Charge: per customer per month or part thereof: Meter 3/1/12 5/8" $11.19 3/4" * $15.67 1" $29.14 1 %4" or 1'/2" $64.97 2" $114.24 Commodity Charge: per ccf of water used per month; $2.56 * The BWL standard residential installation is a 1" service line with a 3/4" meter. The BWL reserves the right, in its sole judgment, to install 5/8" meters on any new service installation when circumstances warrant. Power and Chemical Cost Adiustment - The power and chemical cost adjustment shall consist of an increase or decrease of 0.1 ¢ per ccf billed for each 0.1 ¢ increase or decrease in the average cost of power and chemicals required to deliver treated water to the customer's meter above or below 44.70 per ccf. The cost per ccf for the billing period shall consist of the weighted average cost of chemicals, electricity, steam and oil used in pumping and treatment facilities during the one month period preceding the month billed by two months. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of water, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - The minimum charge shall be the above Basic Service Charge applied for 30 days. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules and Regulations for Water Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water & Light, Lansing, Michigan — Water Utility Rates GENERAL WATER SERVICE RATE NO.2 Availability - This rate is available to any customer served on the BWL's water system. Service under this rate is not available for resale. Monthly Rate - Shall be computed in accordance with the following charges. Basic Service Charge: per customer per month or part thereof; Meter 3/1/12 5/8" $11.19 3/4" * $15.67 1" $29.14 1'/4" or 1'/z" $64.97 2" $114.24 3" $257.61 4" $459.22 6" $1,032.60 8" $1,834.62 10" $2,867.31 Commodity Charge: per ccf of water used per month; $2.56 * The BWL standard residential installation is a 1" service line with a 3/4" meter. The BWL reserves the right, in its sole judgment, to install 5/8" meters on any new service installation when circumstances warrant. Power and Chemical Cost Adjustment - The power and chemical cost adjustment shall consist of an increase or decrease of 0.1¢ per ccf billed for each 0.1¢ increase or decrease in the average cost of power and chemicals required to deliver treated water to the customer's meter above or below 44.7¢ per ccf. The cost per ccf for the billing period shall consist of the weighted average cost of chemicals, electricity, steam and oil used in pumping and treatment facilities during the one month period preceding the month billed by two months. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of water, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - The minimum charge shall be the above Basic Service Charge applied for 30 days. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules and Regulations for Water Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water & Light, Lansing, Michigan — Water Utility Rates FIRE SERVICE RATE NO.4 Fire Service - A fire service line will be installed to a fire hydrant(s) or a customer's detector check valve in accordance with the schedule of charges for water system connection fees (Rate 3) and the current water service installation charges set forth in the Rules and Regulations for Water Service. The location of the detector check valve shall be determined by the Water Distribution Engineering Department. Fire service lines shall be used for fire protection purposes only. No additional charges will be made for water used for testing and fire purposes. The customer shall maintain the detector check valve and fire protection system connected thereto in good condition in compliance with Section 34-9, Repair and Protection of Equipment, of the Code of the City of Lansing, Michigan. Monthly Fire Service Charge - Water supply and maintenance of a fire service line to a detector check valve shall be provided in accordance with the following schedule of charges: Service Size 3/1/12 4" or smaller $72 6" $162 8" $286 10" or larger $447 Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of water, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - Billings subject to this rate are not subject to a minimum charge. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules and Regulations for Water Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water & Light, Lansing, Michigan — Water Utility Rates LAWN SPRINKLING WATER SERVICE RATE NO.5 Availability - This rate is available to any customer served on the BWL's water system where the meter or service is installed solely for lawn sprinkling. Municipalities having jurisdiction over sewer system rates may designate other uses of water which are subject to this rate. Monthly Rate - Shall be computed in accordance with the following charges. Basic Service Charge: Billings subject to this rate are not subject to a Basic Service Charge. Commodity Charge: per ccf of water used per month 3/1/12 all ccf $2.56 Power and Chemical Cost Adiustment - The power and chemical cost adjustment shall consist of an increase or decrease of 0.1¢ per ccf billed for each 0.1¢ increase or decrease in the average cost of power and chemicals required to deliver treated water to the customer's meter above or below 44.7¢ per ccf. The cost per ccf for the billing period shall consist of the weighted average cost of chemicals, electricity, steam and oil used in pumping and treatment facilities during the one month period preceding the month billed by two months. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of water, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - Billings subject to this rate are not subject to a minimum charge. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules and Regulations for Water Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water & Light, Lansing, Michigan — Water Utility Rates FIRE HYDRANT CHARGES RATE NO.6 Annual Fire Hydrant Charge - Water Supply and maintenance of a fire service line to a public or private fire hydrant shall be provided in accordance with the following annual schedule of charges: 3/1/12 All Hydrants $474 Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of water, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - Billings subject to this rate are not subject to a minimum charge. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules and Regulations for Water Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Steam Utility Rates GENERAL STEAM SERVICE RATE NO. 1 Availability - This rate is available to any customer receiving service from the Board of Water and Light (BWL) steam distribution system with a maximum gauge pressure of fifteen pounds per square inch (15 psi). Steam services at gauge pressures above 15 psi but not exceeding 100 psi, when available, may be supplied at the option of the BWL or upon request by the customer. Nature of Service - Saturated steam up to a maximum gauge pressure of 15 psi except as indicated above. Monthlv Rate 3/1/12 Basic Service Charge $12.20 per customer per month Commodity Charge Billing Months of June through November $13.91 per 1000 lbs. for the first 200,000 lbs. $14.61 per 1000 lbs. for all 1000 lbs. over 200,000 lbs. Billing Months of December through May $14.08 per 1000 lbs for the first 200,000 lbs. $14.78 per 1000 lbs. for all 1000 lbs. over 200.000 lbs. Surcharge - A surcharge of ten (10) percent shall be added to the above rates for steam service supplied upon customer's request for service at gauge pressure above 15 psi but not exceeding 100 psi. Fuel Cost Adjustment - This rate is subject to a Fuel Cost Adjustment factor added to the above charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Amine Treatment Adiustment - The amine treatment adjustment allows for the monthly adjustment of rates to reflect the actual cost incurred due to amine feed. The factor shall be applied to each 1000 pounds (lbs) billed. The factor shall consist of 1.124 times the weighted average amine cost per 1000 lbs treated during the previous month. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.30/Mlb. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL's property, or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - The Basic Service Charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Reconnect Charge - A reconnect charge shall be added to any account which discontinues and reconnects service at the same address within a twelve (12) month period. The reconnect charge is specified in the BWL Rules and Regulations for Steam Service. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Steam Utility Rates INDUSTRIAL STEAM SERVICE RATE NO.2 Availability: This rate is available to any customer engaged in mining or manufacturing and receiving steam at any BWL plant wall at a minimum gauge pressure of 250 psi. Service will be provided upon customer entering into a steam supply contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on BWL facilities. Monthly Rate• 3/1/12 Demand Charge: $1.40 per pound per hour (lb/hr) for all lb/hrs of contract demand $1.22 per pound per hour (lb/hr) for all lb/hrs exceeding contract demand Commodity Charge: $8.56 per thousand pounds (Mlb) Fuel Cost Adiustment - This rate is subject to a Fuel Cost Adjustment factor added to the above charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.30/Mlb. Minimum Charge: Monthly Demand Charge above. Tax Adiustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, or any other charges against the BWL's property. or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Billing Demand: The billing demand is the maximum demand (lb/hrs) supplied during the 15 minute period of maximum use during the month, but not less than the contract demand. Delayed Payment Charge: A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Rules and Regulations: Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Steam Utility Rates RESIDENTIAL STEAM SERVICE RATE NO.5 Availability - This rate is available to any single-family or multifamily dwelling of 4 units or less when the entire service requirements are supplied at one point of delivery through one meter. Service under this rate is not available to any single-family or multifamily dwelling unit of 4 units or less when a portion of the dwelling unit is used for commercial, industrial, or resale purposes unless the service is so arranged that residential and non- residential purposes are metered separately. - Nature of Service - Saturated steam up to a maximum gauge pressure of 15 psi. Steam services at gauge pressures above 15 psi but not exceeding 100 psi, when available, may be supplied at the option of the BWL or upon request by the customer. Monthly Rate 3/1/12 Basic Service Charge $9.04 per customer per month Commodity Charge Billing Months of June through November $10.77 per 1000 lbs. for the first 200,000 lbs. $11.27 per 1000 lbs. for all 1000 lbs. over 200,000 lbs. Billing Months of December through May $10.90 per 1000 lbs for the first 200,000 lbs. $11.41 per 1000 lbs. for all 1000 lbs. over 200.000 lbs. Surcharge -A surcharge often (10) percent shall be added to the above rates for steam service supplied upon customer's request for service at gauge pressure above 15 psi but not exceeding 100 psi. Fuel Cost Adjustment - This rate is subject to a Fuel Cost Adjustment factor added to the above charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Amine Treatment Adiustment - The amine treatment adjustment allows for the monthly adjustment of rates to reflect the actual cost incurred due to amine feed. The factor shall be applied to each 1000 pounds (lbs) billed. The factor shall consist of 1.124 times the weighted average amine cost per 1000 lbs treated during the previous month. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.30/Mlb. Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL's property, or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge - The Basic Service Charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Reconnect Charge - A reconnect charge shall be added to any account which discontinues and reconnects service at the same address within a twelve (12) month period. The reconnect charge is specified in the BWL Rules and Regulations for Steam Service. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are incorporated herein by this reference Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates RESIDENTIAL ELECTRIC SERVICE RATE NO. 1 Availability - This rate is available to any single-family or multifamily dwelling of 4 units or less when the entire electric requirements are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family or multifamily dwelling unit of 4 units or less when a portion of the dwelling unit is used for commercial, industrial, or resale purposes unless the wiring is so arranged that service for residential and non-residential purposes are metered separately. Nature of Service - The service is alternating current, 60 hertz, single phase, 120/240 nominal volts. Monthly Rate - Shall be computed in accordance with the following charges: 3/1/12 Basic Service Charge $7.50 Per customer per month Commodity Charge Summer Billing Months of June through October $.0847 Per kWh for the first 500 kWh $.0896 Per kWh for all over 500 kWh Winter Billing Months of November through May $.0847 Per kWh for the first 500 kWh $.0877 Per kWh for all over 500 kWh Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adjustment -This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Energy Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Enerev Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board of Water and Light (BWL) property, or its operation, or the production and/or sale of electric energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates GENERAL ELECTRIC SERVICE RATE NO.3 Availability - This rate is available to any customer desiring secondary voltage service for any purpose when supplied at one point of delivery through one meter. The limitation to secondary -voltage service may be waived in instances where the character of the electric load at the premises served has changed substantially. This rate is not available for emergency or standby service. Nature of Service - The service is alternating current, 60 hertz, single phase or three phase. The secondary voltage is determined by the Board of Water and Light (BWL). Monthly Rate - Shall be computed in accordance with the following charges. 3/1/12 Basic Service Charge $17.98 per customer per month Commodity Charge Summer Billing Months of June through October $.0974 per kWh Winter Billing Months of November through May $.0941 per kWh Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adjustment -This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Energy Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Energy Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Metering - Where the BWL elects to measure the service on the primary side of the transformers, the metered kWh thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter, the consumption as registered by the different meters will not be combined for billing purposes, but will be computed and billed separately. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates LARGE GENERAL ELECTRIC SERVICE RATE NO.4 Availability - This rate is available to any customer desiring secondary voltage for any purpose when the electrical requirements are supplied at one point of delivery through one metering installation and the billing demand is 15 kW or more. The limitation to secondary -voltage service may be waived in instances where the character of the electric load a the premises served has changed substantially. This rate is not available for standby or emergency services. Nature of Service - The service is alternating current, 60 hertz, single phase or three phase. The secondary voltage is determined by the Board of Water and Light (BWL). Monthly Rate - Shall be computed in accordance with the following charges. 3/1/12 Basic Service Charge $38.35 per customer per month Capacity Charge $10.19 Per kW for all kW of Maximum Demand Commodity Charge Summer Billing Months of June through October $.0572 Per kWh Winter Billing Months of November through May $.0532 Per kWh Reactive Power Charge $0.0092 per kvarh in excess of 50% of total kWh The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour (kvarh) metering installed in accordance with BWL Rules and Regulations regarding power factor. Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adiustment -This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Energy Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Energy Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Billing Demand - The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month. Metering - Where the BWL elects to measure the service on the primary side of the transformer, the metered kW and kWh quantities thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installation, the consumption as registered by the different metering installations will not be combined for billing purposes, but will be computed and billed separately. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates PRIMARY ELECTRIC SERVICE RATE NO.5 Availability - This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation (except as provided below for Multiple Delivery Point Aggregation) and the billing demand is 100 kW or more. This rate is not available for standby or emergency service. Nature of Service - The service is alternating current, 60 hertz, three phase. The primary voltage is determined by the Board of Water and Light (BWL). Monthly Rate - Shall be computed in accordance with the following charges: 3/1/12 Basic Service Charge $95.90 per customer per month Capacity Charge $8.27 Per kW for all kW of On -Peak Billing Demand, plus $2.74 Per kW for all kW of Maximum Demand Commodity Charge Summer Billing Months of June through October $0.0516 Per kWh for all kWh during the On -Peak Period, plus $0.0477 Per kWh for all kWh during the Off -Peak Period, plus Winter Billing Months of November through May $0.0496 Per kWh for all kWh during the On -Peak Period, plus $0.0477 Per kWh for all kWh during the Off -Peak Period Reactive Power Charge $0.0092 per kvarh in excess of 50% of total kWh The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour (kvarh) metering installed in accordance with BWL Rules and Regulations regarding power factor. Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Enerev Cost Adiustment - This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Enerev Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Enerev Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Billine Demand On -Peak Billing Demand: The On -Peak Billing Demand shall be the kW supplied during the 15-minute period of maximum use during the On -Peak Period during the month. Maximum Demand: The Maximum Demand shall be the kW supplied during the 15-minute period of maximum use during the month whether on -peak or off-peak. Schedule of on -peak and off-peak periods - The On -Peak Period shall be from 10:00 a.m. until 6:00 p.m., Monday through Friday. All other hours shall comprise the Off -Peak Period. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates PRIMARY ELECTRIC SERVICE RATE NO.5 Multiple Delivery Point Aggregation - The 15-minute period demands of multiple delivery points of a customer may be summed for determination of the total On -Peak Billing Demand under the following conditions: (a) the Maximum Demand at each delivery point must equal or exceed 100 kW; (b) the total On -Peak Billing Demand shall not be less than 4,000 kW; and (c) the customer shall agree to a service contract with the BWL for the customer's full electrical service requirements at the aggregated delivery points for a period of not less than five (5) years. Aggregation shall be applicable for determination of the On -Peak Billing Demand only. All other charges, including the Basic Service Charge and Maximum Demand, shall apply to each delivery point independently. Metering - When the BWL elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately except as provided for in Multiple Delivery Point Aggregation. Equipment Supplied by Customer - The customer shall be responsible for furnishing, installing and maintaining all necessary transforming, controlling and protective equipment required for service beyond the BWL primary -voltage delivery point. At the sole option of the BWL, a customer may lease such transformers or other equipment from the BWL under terms established by the BWL. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates MUNICIPAL WATER PUMPING ELECTRIC SERVICE RATE NO.7 Availability - This rate is available to any political subdivision or agency of the State of Michigan desiring service for potable water pumping and associated potable water production equipment when the entire electrical requirements are supplied at one point of delivery through one meter. This rate is not available for emergency, standby, or auxiliary service. Nature of Service - The service is alternating current, 60 hertz, three phase. The secondary or primary voltage is determined by the BWL. Monthly Rate - Shall be computed in accordance with the following charges. 3/1/12 Basic Service Charge $11.98 Per customer per month Commodity Charge $.0766 Per kWh Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adjustment -This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Energy Plan Surcharge —This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Energy Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Metering - Where the BWL elects to measure the service on the primary side of the transformers serving the customer, the metered kWh thus measured will be reduced 3% for billing purposes to adjust for transformer losses. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates LARGE CAPACITY ELECTRIC SERVICE RATE NO.8 Availability - This rate is available to any customer desiring primary voltage service when: (a) the electrical requirements are supplied at one or more points of delivery as provided below for Multiple Delivery Point Aggregation; (b) where the total On -Peak Billing Demand is 25,000 kW or more; and (c) the customer agrees to a service contract with the BWL for the customer's full electrical service requirements at the applicable delivery points for a period of not less than ten (10) years. This rate is not available for standby or emergency service. Nature of Service - The service is alternating current, 60 hertz, three phase. The primary voltage is determined by the Board of Water and Light (BWL). Monthly Rate - Shall be computed in accordance with the following charges: 3/1/12 Basic Service Charge $299.69 per delivery point per month Capacity Charge $9.32 per kW for all kW of On -Peak Billing Demand, plus $1.75 per kW for all kW of Maximum Demand Commodity Charge Summer Billing Months of June through October $0.0463 per kWh for all kWh during the On -Peak Period, plus $0.0415 per kWh for all kWh during the Off -Peak Period, plus Winter Billing Months of November through May $0.0448 per kWh for all kWh during the On -Peak Period, plus $0.0415 per kWh for all kWh during the Off -Peak Period Reactive Power Charge $0.0092 Per k varh in excess of 50% of total kWh Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adiustment - This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Energy Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Energy Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Billing Demand On -Peak Billing Demand: The On -Peak Billing Demand shall be the total kW supplied to all applicable delivery points during the 15-minute period of maximum use during the On -Peak Period during the month. (See Multiple Delivery Point Aggregation.) Maximum Demand: The Maximum Demand for each delivery point shall be the kW supplied during the 15- minute period of maximum use during the month whether on -peak or off-peak. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates LARGE CAPACITY ELECTRIC SERVICE RATE NO.8 Schedule of on -peak and off-peak periods - The On -Peak Period shall be from 10:00 a.m. until 6:00 p.m., Monday through Friday. All other hours shall comprise the Off -Peak Period. Multiple Delivery Point Aggregation - The 15-minute period demands of multiple delivery points of a customer shall be summed for determination of the total On -Peak Billing Demand under the following conditions: (a) the Maximum Demand determined at each delivery point must equal or exceed 1,000 kW; and (b) the total On -Peak Billing Demand shall not be less than 25,000 kW. Aggregation shall be applicable for determination of the On -Peak Billing Demand only. All other charges, including the Basic Service Charge and Maximum Demand, shall apply to each delivery point independently. - Metering - When the BWL elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately except as provided for Multiple Delivery Point Aggregation. Equipment Supplied by Customer - The customer shall be responsible for furnishing, installing and maintaining all necessary transforming, controlling and protective equipment required for service beyond the BWL primary -voltage delivery point. At the sole option of the BAIL, a customer may lease such transformers or other equipment from the BWL under terms established by the BWL. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. ' Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates SPACE CONDITIONING AND ELECTRIC WATER HEATING SERVICE RATE NO.12 Availability - This rate is available to any customer desiring service for commercial/industrial space conditioning and/or electric water heating furnished through a separate meter to which no other electrical device except electric space heating, electric air conditioning, humidity control equipment or electric water heating equipment may be connected. Electric space heating will be considered to include heating by light system provided the primary means of space heating at the time of maximum heating requirements will be furnished by the lighting system with the balance of the heating requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal source of space heating, or to the use of electricity for occasional or seasonal substitute for another method of water heating. Nature of Service - The service is alternating current, 60 hertz, single phase at Board of Water and Light (BWL) available secondary voltage. Three phase service will be furnished at BWL option. Monthly Rate - Shall be computed in accordance with the following charges. 3/1/12 Basic Service Charge $23.97 Commodity Charge Summer Billing Months of June through October $.1100 per kWh Winter Billing Months of November through May $.0726 per kWh Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adjustment - This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Energy Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Energy Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bill shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates RESIDENTIAL ELECTRIC SERVICE, SENIOR CITIZEN RATE NO.21 Availability - This rate is available to any single family or multifamily dwelling of 4 units or less when the entire electric requirements are supplied at one point of delivery through the same meter. The customer must be 65 years of age and head of the household being served. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single family or multifamily dwelling of 4 units or less unit when a portion of the residence or dwelling unit is used for commercial, industrial, or resale purposes unless the wiring is so arranged that service for residential and non-residential purposes are metered separately. Customers taking service under this rate shall provide evidence of age and contract with the Board of Water and Light (BWL) to remain on this rate for at least twelve (12) months. Nature of Service - The service is alternating current, 60 hertz, single phase, 120/240 nominal volts. Monthly Rate - Shall be computed in accordance with the following charges. 3/1/12 Basic Service Charge $4.83 Commodity Charge $.0643 per kWh for the first 300 kWh $.1008 per kWh for the next 200 kWh $.1312 per kWh for all over 500 kWh Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adiustment -This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Renewable Enerev Plan Surcharge — This rate is subject to the Renewable Energy Plan Surcharge as defined on a separate rate schedule incorporated herein by this reference. Energy Optimization Surcharge — This rate is subject to the Energy Optimization Surcharge as defined on a separate rate schedule incorporated herein by this reference. Tax Adiustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill that is not paid on or before the due date. Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates RESIDENTIAL PLUG-IN ELECTRIC VEHICLE CHARGING SERVICE RATE NO.22 Availability — The Experimental Residential Plug-in Vehicle Charging Rate is a voluntary pilot rate available to any single-family or multifamily dwelling of 4 units or less with separately metered Electric Vehicle Supply Equipment (EVSE) capable of providing Level 2 charging for plug-in electric motor vehicles. Service under this rate is not available to any single-family or multifamily dwelling unit of 4 units or less when a portion of the dwelling unit is used for commercial, industrial, or resale purposes unless the wiring is so arranged that service for residential and non-residential purposes are metered separately. "EVSE" means a device or apparatus, including vehicle supply cable, connector, internal relays and controls designed specifically for the purpose of delivering energy from the premises wiring to a plug -in -electric motor vehicle. This equipment must meet or exceed the following codes, standards and recommended practices: 1. National Electric Code Article 625 Electric Vehicle Charging System. 2. Society of Automotive Engineers Standard (SAE) J1772. 3. Underwriters Laboratory (UL) 2202, Charging Station Safety. 4. UL 2231 Personal Protection Device. 5. UL 2251 Standard for Safety of Plugs, Receptacles and Couplers for EVs. 6. UL 1998 Standard for Safety -Related Software 7. UL 991 Standard for Tests for Safety -Related Controls Employing Solid -State Devices 8. UL Subject 2594 Electric Vehicle Supply Equipment 9. Michigan Administration codes 408.30801 or 408.30876. "Level 2 Charging" means providing 208 — 240 volt single phase alternating current energy to an onboard charger of an electric motor vehicle with a maximum current specified at maximum 32 continuous amps and a Branch Circuit Breaker rated at 40 amps. The maximum continuous input power is specified as 7.68 Kilowatts. Nature of Service - The service is alternating current, 60 hertz, single phase, 208 to 240 nominal volts, Level 2 Charging as defined. Monthly Rate - Shall be computed in accordance with the following charges: 3/1/12 Basic Service Charge $1.95 Per customer per month Commodity Charge $ 0.0561 Per kWh for all Off -Peak Usage $ 0.1396 Per kWh for all On -Peak Usage On -Peak Hours: All kWh used between lam and 11 pm Monday through Friday. Off -Peak Hours: All other kWh used. Minimum Bill - The minimum bill is the basic service charge included in the monthly rate. Energy Cost Adjustment - This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule incorporated herein by this reference. Environmental Charge — This rate is subject to an Environmental Charge as defined on a separate rate schedule incorporated herein by this reference. The current Environmental Charge is $0.0025/kWh. Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board of Water and Light (BWL) property, or its operation, or the production and/or sale of electric energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding previous delayed payment charges, shall be added to any bill that is not paid on or before the due date. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates Application Charge - A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service incorporated herein by this reference. Adopted: Proposed Effective: March 1, 2012 Board of Water and Light, Lansing, Michigan — Electric Utility Rates ENERGY COST ADJUSTMENT The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment. In applying the Energy Cost Adjustment, the applicable rate per kWh shall be increased or decreased by the amount of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating the monthly Energy Cost Adjustment. Definitions Energy Cost Adjustment - the amount per kWh by which the applicable rates shall be adjusted for billing in each month. Energy Costs - those costs incurred in supplying retail and wholesale electricity. Such costs include fuel burned, energy costs associated with firm power purchases, net interchange power costs, and costs associated with other temporary power transactions. The cost of fuel burned shall include the delivered cost of fuel (base cost, escalations, premiums/penalties, transportation, demurrage), outside lab fees and other outside costs related to fuel procurement, and fuel additives such as freeze proofing. Over/Under Recovery - the difference between actual Energy Costs for prior months and the amount of energy cost recovered by means of the Base Cost of Energy and the Energy Cost Adjustment. The Over/Under Recovery shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month. Energy costs will be offset with wholesale revenues. Base Cost of Energy - the average Energy Cost included in the energy rates of the various rate schedules. Such amount shall not be recovered by means of the Energy Cost Adjustment. The current Base Cost of Energy is $0.025839 per kWh sold. Procedures Estimated Energy Cost shall be projected for a twelve-month period. Any amount of Over/Under Recovery (positive or negative) shall be added to the Energy Cost to determine the total cost basis for the Energy Cost Adjustment. The total cost basis shall be divided by the projected total retail billed and wholesale sales for the twelve-month period resulting in the average energy cost per kWh. The Base Cost of Energy shall be subtracted from the average energy cost to result in the Energy Cost Adjustment. The Energy Cost Adjustment shall be reviewed and, as necessary, revised periodically in accordance with the provisions of this schedule, but not less frequently than every twelve months. Adopted: Proposed Effective: March 1, 2012 Attachment C Effect on Various Monthly Billings to Customers of the Proposed Rate Schedules CUSTOMER IMPACT MONTHLY WATER BILLS BWL BILLING INCREASE $2.5 million 3/1/2012 Current Proposed Monthly Monthly Monthly Bill Bill Increase idential (Rate 1) Meter Size 5/81, CCF 6 $ 24.30 $ 26.48 $ 2.18 eral Water Service (Rate 2) Meter Size 4" CCF 365 $ 1,274.67 $ 1,389.24 $ 114.57 n Sprinkling Water Service (Rate 5) CCF 15 $ 35.07 $ 38.22 $ 3.15 MONTHLY STEAM BILLS BWL REVENUE INCREASE $0.8 million 3/1/2012 Current Proposed Monthly Monthly Monthly Bill Bill Increase General Steam Service (Rate 1) Lbs 20,000 $ 29.5.85 $ 319.86 $ 24.01 Lbs 50,000 $ 722.85 $ 781.36 $ 58.51 Lbs 200,000 $ 2,857.81 $ 3,088.82 $ 231.01 Lbs 800,000 $ 11,781.67 $ 12,738.68 $ 957.01 Lbs 1,000,000 $ 14,756.29 $ 15,955.30 $ 1,199.01 Industrial Steam Service (Rate 2) Lbs 20,000,000 $ 252,750.61 $ 275,362.53 $ 22,611.92 Residential Steam Service (Rate 5) Lbs 10,000 $ 118.82 $ 128.47 $ 9.65 THLY ELECTRIC BILLS BILLING - Revenue Neutral idential (Rate 1) 500 KWH 750 KWH 1000 KWH 3/1/2012 Current Proposed Monthly Monthly Monthly Bill Bill Increase $ 61.01 $ 61.01 $ - $ 87.74 $ 87.74 $ - $ 114.47 $ 114.47 $ - 750 KWH 8 KW (Rate 3) $ 111.46 $ 111.46 $ 1,500 KWH 12 KW (Rate 3) $ 198.35 $ 198.35 $ 35,000 KWH 100 KW (Rate 4) $ 3,681.30 $ 3,681.30 $ 35,000 KWH 1000 KW (Rate 4) $ 12,852.30 $ 12,852.30 $ 400,000 KWH 1,000 KW (Rate 5) $ 37,662.70 $ 37,662.70 $ 650,000 KWH 1,000 KW (Rate 5) $ 53,542.90 $ 53,542.90 $ RECEIVED General Fund Status Report — FY 2012 1st Quarter 2011 OCT 31 PM 3: 32 Please see accompanying summary detail (page 3) LANSING C1 Y CLER11 Revenues In total, General Fund revenues collected in the first quarter of Fiscal Year 2012 (July — September were lower than the average of the past three years' first quarter collection rates, as a percentage of year-end amounts (37.9% compared to 39.7%). • The vast majority of Property Taxes are collected in the first month of the fiscal year. At the end of the first quarter this year, they were slightly higher, as a percentage of budget, compared to the average of the past three year's first quarter collection rates, at 100.5% compared to 97.3%. However, the City has a number of pending commercial property tax appeals which will likely impact property tax revenues for in this fiscal year. • As a percentage of budget, Income Tax collections were lower than the average collection rate for the past three years, at 8.1 % of budget, compared to 11.7%. Income tax revenues fluctuate from previous trends due to timing differences in remittances. This year's trend is of concern and is being tracked closely. • State Revenue Sharing payments are not received until November each fiscal year. Bad Driver receipts were slightly higher than anticipated for the first quarter. The City has complied with the October 1 Economic Vitality Program (EVIP) deadline for submitting the citizen's guide and dashboard — the first of those payments will begin the end of October. • Charges for Services were a bit lower as,a percentage of year-end totals for the average of the same period for the last three years, at 17.8% of budget compared to 19.0% in prior years. • In total, Licenses and Permits revenues were higher than the average collection rate of the same period for the last three years as a percentage of year-end totals, at 5 A% of budget, compared to 3.5%. Licenses and permits make up only 1.5% of General Fund revenues. • Collection rates for Fines and Forfeiture were slightly lower as a percentage of year-end totals for the average of the last three years, at 18.1 % of the budget compared to 18.7. • The City's Return on Equity payment from the Board of Water and Light (BWL), which accounts for $11% of General Fund revenues is not collected until after the fiscal year-end. • Interest revenue is posted as investments mature, the timing of which varies from year-to- year. Expenditures In total, taking into account the vacancy factor, expenditures for General Fund operating departments (excluding debt service and transfers to other funds) were right on the budget target -- at 21.8% as of September 30, compared to a budgetary target of 21.9%. 10/31/2011 Page 1 of 3 Summary For the first quarter, total General Fund revenues appear to be somewhat lower than expected, due mainly to income tax revenues, where General Fund expenditures were right on track. Both revenues and expenditures are monitored closely, especially income tax revenues, and a budget amendment will be brought to Council if warranted. 10/31/2011 Page 2 of 3 General Fund Status Report - FY 2012 September 30, 2011 Revenues Property Taxes Income Taxes Revenue Sharing Licenses & Permits Charges for Services Fines & Forfeitures Interest & Rent Return on Equity Other Revenue Total Revenues Annual Actual Budget as of 09/30/11 $ 33,708,498 $ 33,863,363 29,800,000 2,424,776 _ 13,525,960 390,356 1,685,140 90,349 9,453,732 1,680,514 2,662,920 480,718 119,000 47 12,800,000 300,000 219,750 184,671 $ 103,975,000 $ 39,414,794 Expenditures Annual Actual Buffet as of 09/30/11 Council $ 539,759 $ 118,787 Internal Audit 149,549 32,517 Courts 4,513,257 1,032,338 Mayor's Office 648,971 140,043 Media Center 260,229 49;486 Clerk's Office 831,993 177,431 Planning & Neighborhood Development 2,425,042 521,410 Finance 10,053,302 2,066,568 Human Resources 1,499,774 259,732 Attorney's Office 1,219,163 273,027 Vacancy Factor (800,000) - Police 30,861,667 7,066,138 Fire 28,167,867 6,586,696 Public Service 6,104,397 317,707 Human Relations & Community Service 736,199 161,080 Parks & Recreation 7,182,838 1,631,026 Human Services & City Supported Agencies 1,581,400 522,253 $ 95,975,405 $ 20,956,238 Library Lease $ 155,000 $ 40,852 Debt Service 1,665,000 616,411 Transfers 6,179,595 4,190,323 $ 103,975,000 $ 25,803,824 Avg. Percent of Year -End Actuals as of Percent September 30 of Budget FY 2008 - 2011 100.5% 97.3% 8.1% 11.7% 2.9% y 1.9% 5.4% 3.5% 17.8% 19.0% 18.1% 18.7% 0.0% 28.7% 2.3% 2.7% 84.0% 15.0% 37.9% 39.7% Percent Target, Including of Budoet Vacancy Factor 22.0% 21.7% 22.9% 21.6% 19.0% 21.3% 21.5% 20.6% 17.3% 22.4% 0.0% 22.9% 23.4% 5.2% 21.9% 22.7% 33.0% 21.8% 21.9% 26.4% 37.0% 67.8% Please see Pages 1 and 2 for an explanation of revenues and expenditures. (1) Note: Year-to-date revenue is always greater than expenditures at this time of year, as property taxes, accounting for 32% of General Fund revenues, are collected at the beginning of the year. Property taxes include delinquent amouts that will be reimbursement by the counties upon settlement. Page 3 of 3 I Power. June 1, 2011 Lansing Board of Water and Light 1232 Haco Drive Lansing, M1 48912 Hand Delivered Mr. Chris Swope, City Clerk City of Lansing 124 W. Michigan Avenue, 9th Floor Lansing, MI 48933 Re: Budget for Fiscal Year Ending June 30, 2011 Dear Mr. Swope: In accordance with provisions of the Lansing City Charter, Article 5, Chapter 2, Section 5-203.5, a copy of the Lansing Board of Water and Light Budget for Fiscal year ending June 30, 2012, is filed with your office. The Board of Commissioners adopted the budget at a regular board meeting held May 24, 2011. Respectfully submitted, M. Denise Griffin Corporate Secretary Enclosure cc: General Manager J. Peter Lark Susan Devon, Assistant General Manager and Chief Financial Officer 1232 Haco Drive I PO Box 13007 1 Lansing, MI 1 48901-3007 1 517-702-6000 1 www.lbwl.com r �ncome ._ a emen. (b- y Uft, i- -,I�_ t CHILLED $(0001 ELECTRIC WATER STEAM WATER TOTAL 7,, SALES (mwh, ccf, mlb, ton-hrs) 3,363,069 9,223,158 743,000 10,739,126 OPERATING REVENUE Retail 238,679 31,472 11,544 5,373 287,068 Wholesale 53,452 3,215 0 0 56,667 TOTAL OPERATING REVENUE 292,131 34,686 11,544 5,373 343,735 OPERATING EXPENSE Operation & Maintenance Expense Depreciation Expense (237,690) (23,702) (26,376) (6,454) (12,517) 1( (2,417) (1,415) (279,000) (32,680) .� ,109) �'>> TOTAL OPERATING EXPENSE (261,392) (32,830) (13,626) (3,832) (311,680) OPERATING INCOME (LOSS) 30,739 1,856 (2,082) 1,542 32,056 Payment in lieu of taxes (11,558) (1,367) (461) (215) (13,602) Other Non -Operating Income 2,487 1,167 95 114 3,863 - - € Other Non -Operating Expense 1( ,027)(2,346)1 630 5 002 F NET INCOME (LOSS) 20,642 (690) (2,448) (189) 17,315 Q vJk- CHILLED $(000) ELECTRIC WATER STEAM WATER TOTAL — PROJECTED CASH FLOW FY 2012 [ _,. BEGINNING OPERATING CASH 63,174 6,940 2,861 537 63,503 ; ' Sources of Cash �~ Net Income 20,642 (690) (2,448) (189) 17,315 Depreciation 23,702 6,454 1,109 1,415 32,680 Loss on Sale of Assets 786 194 200 4 1,184 CSO Project - SRF Bonds 0 265 0 0 265 ,..� Bond Proceeds 101,799 5,930 17,866 0 125,595 Renewable Energy Plan 2,350 0 0 0 2,350 Ln_ Energy Optimization 53 0 0 0 53 . Belle River 750 0 0 0 750 ' SOURCES OF CASH 160,081 12,164 16,727 1,230 180,192 Uses of Cash Debt Principal (2,996) (2,379) (17) (1,310) (6,702) Net Environmental (935) 0 (34) 0 (969) 1 Net Capital Expenditures (120,982) (13,695) (20,943) (874) (156,494) r- Other Uses of Cash 3 356 449 49 3( ,944) USES OF CASH (128,268) (16,523) (21,044) (2,273) (168,109) 9 I 1 Net Cash Increase/(Decrease) 21,813 (4,369) (4,317) (1,043) 12,083 ENDING OPERATING CASH 74,987 2,571 (1,466) (506) 75,586 I) Beginning Operating Cash includes O & M Fund and Receiving Fund only, Designated funds and Restricted Bond Funds p not included, ($25.2 and $64.3 million respectively as of February 28, 2011) 10 SUMMARY ANNUAL CAPITAL ADDITIONS AND PLANNED CAPITAL PROJECTS SIX YEAR FORECAST FY 2012 - 2017 BOARD OF WATER AND LIGHT [� Six Dollars in (000's) Year 2012 2013 2014 2015 2016 2017 To��` �1 ELECTRIC Sub -Total Revenue 7,962 10,538 8,011 6,111 6,111 6,111 44,844 Sub -Total Non -Revenue 16,577 23,037 13,085 12,500 10,634 21,266 97,099 TOTAL ELECTRIC 24,539 33,575 11096 18,611 16,745 27,377 141,943 ' WATER r--�, Sub -Total Revenue 15 0 0 0 0 0 15 Sub -Total Non -Revenue 12,360 9,810 8,276 14,141 12,360 11,015 67,962 r TOTAL WATER 12,375 9,810 8,276 14,141 12,360 11,015 67,977 STEAM Sub -Total Revenue 111,890 60,965 28,857 100 100 100 202,012 Sub -Total Non -Revenue 2,672 2,135 2,535 2,635 2,635 2,635 15,247 TOTAL STEAM 1�5 2 63�� 31 - 2,735 2,735 �,7 5- 11r7,1255J9 CHILLED WATER't Sub -Total Revenue 150 0 150 0 150 0 450 w Sub -Total Non -Revenue 490 105 105 55 105 55 915 �=---= TOTAL CHILLED WATER �641 105 T 55 255 55 1,365 COMMON ---- - I Sub -Total Revenue 0 0 0 0 0 0 0 E Sub -Total Non -Revenue 4,378 4,155 6,065 7,060 7,060 5,060 33,778 TOTAL COMMON 4,378 4,155 Gam, b5 7,060 7,0(i0 5,060 ,778 CAPITAL BUDGET SUMMARY Sub -Total Revenue 120,017 71,503 37,018 6,211 6,361 6,211 247,321 Sub -Total Non -Revenue 36,477 39,242 30,066 36,391 32,794 40,031 215,001 TOTAL BUDGET 156,494 110,745 67,084 42,602 9� ,155 4�6,24 462,322 O Revenue Projects: Revenue producing, customer driven capital additions and projects justified by a 5 year 21 O cost/benefit analysis. aT Hometown People, 'IiQiAewn P"ef, LANSING BOARD OF WATER & LIGHT RECORD OF DELIVERY/RECEIPT RECIPIENT OFFICE: LANSING CITY CLE S OFFICE RECIPENT'S SINGANURE �� DESCRIPTION OF PACKAGE BEING DELIVERED iI BUDGET FOR FISCAL YEAR ENDING JUNE 30, 2012 SUMMARY OF SIX YEAR FORECAST FISCA YEAR 2012-2017 Delivered by Calvin Jones on behalf of the Lansing Board of Water and Light Office of the Corporate Secretary. (Signature) June 1, 2011 (Date) rn U-j V-j — ca U CD C Q CV J