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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"