May 2018 Proposed Electric Rate Increase - First Public Hearing 11/13/2018 12:12 PM May 2018 Proposed Electric Rate Increase - First Public Hearing Springfield Utility Board March 14, 2018 © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Background There are two public hearings for a proposed electric rate increase. March 14th and April 11th. During the discussions with the SUB Budget Committee, the Board provided direction to spread a recommended rate increase out in smaller phases. The 2018 Budget assumed a 2.0% increase in electric rates effective May 1, 2018. BPA’s Transmission and Power rates will be increasing and represent ~66% of total Electric Utility Costs. SUB’s 10-Year Plan contains increased Capital costs due to investment in infrastructure.

Methodology BPA provided additional information on proposed power and transmission rate increases effective October 1, 2017 The rate proposed is consistent with the Budget Committee recommendations. Based on input from the committee and the Board, the recommendation is to plan for annual rate adjustments every year instead of larger rate adjustments every other year.

Rate Revenue – 2% (2017 data)

Rate Changes by Year by Schedule

Residential (R-1) Current Rates Proposed Rates Base Charge: $12.60 Energy Charge October - April First 1,500 kWh: $0.0540/kWh 1,501+ kWh: $0.0643/kWh May - September First 900 kWh: $0.0540/kWh 901+ kWh: $0.0590/kWh Proposed Rates Base Charge: $12.90 First 1,500 kWh: $0.0551/kWh 1,501+ kWh: $0.0652/kWh First 900 kWh: $0.0551/kWh 901+ kWh: $0.0601/kWh Average Monthly Bill Increase $1.36

Residential Base Charges

Residential Rate Change The 2% overall increase in revenues for the proposed residential rates reflects: An increase of $0.30 to the base charge (this is expected to reflect half of the increase in revenue from the residential class) Increases in usage charges (this is expected to reflect half of the increase in revenue from the Residential class) Under 2017 (current) rates, the residential base charge collects ~16.2% of total residential electric revenue. Under the proposed rates, the residential base charge collects ~16.3% of total residential electric revenue.

Residential Rates – Lane County

Residential Rates – Regional

General Service – 1 (GS-1) Non-Residential <=35kW 11/13/2018 12:12 PM General Service – 1 (GS-1) Non-Residential <=35kW Current Rates Base Charge Single Phase: $21.00 Three Phase: $39.90 Energy Charge October – April (all kWh): $0.0586/kWh May – Sept (all kWh): $0.0525/kWh Proposed Rates Single Phase: $21.60 Three Phase: $40.50 October – April (all kWh): $0.0598/kWh May – Sept (all kWh): $0.0535/kWh © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

General Service – 2 (GS-2) Industrial/Commercial >35kW & <3,000kW Current Rates Base Charge Single Phase $39.90 Three Phase $80.70 Energy Charge October – April First 10,000 kWh $0.0645/kWh 10,001+ kWh $0.0476/kWh May – September First 10,000 kWh $0.0575/kWh 10,001+ kWh $0.0372/kWh Demand Charge (over 35 kW) $6.60/kW Proposed Rates Single Phase $41.40 Three Phase $82.20 First 10,000 kWh $0.0658/kWh 10,001+ kWh $0.0486/kWh First 10,000 kWh $0.0587/kWh 10,001+ kWh $0.0379/kWh Demand Charge (over 35 kW) $6.73/kW

General Service – 3 (GS-3) Industrial/Commercial >=3,000kW Current Rates Base Charge Single Phase $39.90 Three Phase $80.70 Energy Charge October – April $0.0461/kWh May – September $0.0507/kWh Demand Charge (all kW) $6.60/kW Proposed Rates Single Phase $41.40 Three Phase $82.20 October – April $0.0470/kWh May – September $0.0517/kWh Demand Charge (all kW) $6.73/kW

Lighting Energy Charge for all Lighting customers increased by 2% Combined, the infrastructure charge and the increase in energy charge results in an overall increase of 2%.

Conclusion New rates to be effective on customer bills rendered on or after May 1, 2018. Staff is available to answer questions after this presentation, as well as during consideration of public comments.