HomeMy WebLinkAbout2008 Board of Water and Light Electric Water and Steam Rate Changes'RECEIVED
2000 JUL 3 0 PM 4: 4 2
LAN'SO G CITY CLERK'
PROPOSED ECONOMIC DEVELOPMENT RIDER
FOR POTENTIAL NEW CHILLED WATER CUSTOMERS
LANSING BOARD OF WATER AND LIGHT
1232 HACO DRIVE
LANSING, MICHIGAN 48933
Letter to City Clerk dated July 30, 2008
Attachment A is the public hearing notice to be published in the Lansing State Journal.
Attachment B is a copy of the proposed economic development rate rider for chilled water.
Attachment C is a copy of the current General Chilled Water Service Rate No. 1
HOMETOWN PEOPLE. HOMETOWN POWER.
1232 Haco Drive
P.O. Box 13007
Lansing, MI 48901-3007
5170 702 06000
www.lbwl.com
July 30, 2008
C--
C7
Mr. Chris Swope, City Clerk m
City of Lansing
124 W. Michigan Avenue, 9ch Floor r1i N
Lansing, MI 48933
Dear Mr. Swope:
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 structure and other
charges.
The Board of Water and Light adopted the Public Hearing Date for the Economic Development
Rider for Chilled Water on July 22, 2008.
Proposed Changes
The proposed rate rider is attached. This economic development rider is intended to modify the
current Chilled Water Service Rate for a period of six years for new chilled water customers.
Accordingly, the Board of Commissioners has under consideration the attached proposed rate
rider.
Revenue and Customer Impact
The purpose of this economic development rider is expected to enhance economic development
by encouraging customers to locate or expand facilities in the BWL service territory. The
proposed rider will offer discounts to customers on the capacity charges for the first 6 years that
a customer chooses to take chilled water. After that time, the customer will then be billed on the
standard capacity rate as published.
Ve ly yours,
Rhonda Jones
Corporate Secretary
Printed on recycled paper&
Attachment A
Notice of Public Hearing
NOTICE OF PUBLIC HEARING ON PROPOSED
ECONOMIC DEVELOPMENT RIDER FOR CHILLED WATER
BOARD OF WATER AND LIGHT
OF THE CITY OF LANSING, MICHIGAN
A Public Hearing will be held on Thursday, September 18, 2008 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 THE PROPOSED ECONOMIC DEVELOPMENT RIDER FOR CHILLED
WATER. THE PROPOSALS being considered by the Commissioners would offer discounts to
new customers who agree to take chilled water service.
REASON FOR CHANGE: The proposed economic development rider for chilled water will
encourage customers to locate or expand facilities in the BWL's service area which will result in
a net benefit to the BWL and its' customers.
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 September 18, 2008, 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 RIDER. 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 pubic hearing.
PUBLISHED BY ORDER OF THE BOARD OF WATER AND LIGHT
COMMISSIONERS
Rhonda Jones
Corporate Secretary
Date Posted: August 1, 2008
Attachment B
Proposed Rate Rider
Board of Water and Light, Lansing, Michigan — Chilled Water Rates
PROPOSED
ECONOMIC DEVELOPMENT RIDER FOR CHILLED WATER
Purpose — The primary purpose of this rider is to enhance economic development in the Board
of Water & Light (BWL) service area. It will be offered to new customers when, in the utility's
judgment, the availability of the rider is a major factor for the customer choosing to take chilled
water service and will result in a net benefit to the BWL and its customers.
Availability — The rider is available to new commercial and industrial customers that qualify for
General Chilled Water Service Rate No. 4. This rate would be available for the first six years
from the date of the contract. All provisions of this rider are the same as the General Chilled
Water Rate No. 4 with the following exceptions:
Monthly Rate
Capacity Charge: A discount on the capacity charge will be made available under this rider.
The capacity charge per ton will be as follows:
Contract Year Capacity Charge (per ton)
1-2
$10.00
3-4
$20.00
5-6
$30.00
At the start of the seventh year and all years thereafter, the customer will be billed the standard
capacity charge as listed in the General Chilled Water Service Rate 4.
Adopted: Proposed Effective: October 1, 2008
Attachment C
Current Chilled Water Service Rate No. 1
GENERAL CHILLED WATER SERVICE
RATE NO.1
Availability — this rate is available to any customer desiring service from the Board of Water and Light (BWL)
district cooling system. Service will be provided upon the customer entering into a contract with the BWL.
The contract will govern the customer's contract demand and terms and conditions of service, which may vary
due to customer requirements and the impact on BWL facilities. This rate is not available for standby or
emergency service.
Monthly Rate — Shall be computed in accordance with the following charges:
Capacity Charge: $40.64 per ton for all tons of billing demand less than or equal to 105% of the
contract demand, and $56.90 per ton for all tons of billing demand exceeding 105% of the contract demand.
Commodity Charge: $0.115 per ton-hr
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 electrical energy, to offset any such cost and thereby prevent
other customers from being compelled to share such local increases.
Minimum Monthly Charge — The capacity charge included in the rate.
Billing Demand — The billing demand shall be the maximum demand (tons) supplied during the 15-minute
period of maximum use, but not less than 85% of the contract demand. The General Manager is authorized to
waive billing demand in excess of 105% of the contract demand where such billing demand is incurred is the
result of emergency conditions on a customer's system and such emergency condition is caused by equipment
or piping failure and the BWL concurs in the existence of an emergency condition.
Temperature Factor Adiustment — During the months of May through October; if the customer's return
water temperature is below 57 degrees Fahrenheit (F), the customer's commodity charge will be increased by
2.0% for either; (1) each degree Fahrenheit the customer's supply and return water temperature differential is
less than 150 F or, (2) each degree Fahrenheit the customer's return water temperature is below 570 F,
whichever is less. The General Manager is authorized to waive the application of the Temperature Factor
Adjustment where warranted in cases of customer hardship where such hardship is caused by facilities
constructed prior to the BWL's District Cooling System.
Metering — All services using chilled water from the BWL chilled water system shall be metered. The BWL
shall, through consultation with the customer, determine the form in which the commodity shall be metered.
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.
Rules and Regulations — Service under this rate is subject to the BWL Rules and Regulations for Chilled
Water Service that are incorporated herein by this reference.
*Formerly Steam Rate No. 4*
Adopted: July 25, 2000 Effective: January 1, 2001
Virg Bernero, Mayor
DEPARTMENT OF PLANNING AND
NEIGHBORHOOD DEVELOPMENT
316 N. CAPITOL AVENUE • LANSING, MI 48933-1236 • (517) 483-4060 • FAX: (517) 483-6036
DIRECTOR'S OFFICE
yr
TO: Chris Swope, City Clerk
FROM: Bob Johnson, Directo rhb� Planning and Neighbo od Development
DATE: January 11, 2008
SUBJECT: "Buy -Sell Agreement" — North Capitol Ramp, 316 N. Capitol Avenue
Attached is a partially executed copy of the "Buy -Sell Agreement", as proposed, between Lansing
Community College and the City of Lansing with regards to the sale of the North Capitol Parking
Ramp. The attached is made available for placement on "file", and for public viewing, for a period
of thirty (30) days pursuant to Chapter 208 "ACQUISITION AND DISPOSITION OF REAL
PROPERTY', subsection 208.08 (a) "Disposition Policy'. The negotiated purchase price for the
subject property is $2,700,000.00 (two -million and seven -hundred thousand dollars).
In addition, attached are copies of Minutes, Letters and Reports from the Lansing Planning Board,
and Planning Staff:
1. "Public Hearing" minutes (March 20, 2008) — ACT-1-2008
2. Planning Staff Report (March 28, 2008)
3. Planning Board' Committee of the Whole minutes (April 3, 2008) --
4. Letter to Mayor Virg Bernero, dated April 9, 2008, from Mr. Bill Rieske, Planning Board
Secretary, recommending the sale of the North Capitol Parking Ramp (part A)
5. Letter to Mayor Virg Bernero, dated April 23, 2008, from Mr. Bill Rieske, Planning Board
Secretary, recommending the conveyance (vacation) of the adjacent n-s alley immediately
east of the North Capitol Parking Ramp (part B), subject to the purchaser (Lansing
Community College) owning property to the east and west of said alley.
Thank you for your assistance.
Cc: Virg Bernero, Mayor �2
C_
Brigham Smith, City Attorney,
Jack Roberts, Deputy City Attorney C-)
ry
CD
r-"
rn
co
CD .
�
w
C-Please recycle "Equal Opportunity Employer"