1. May 2018 Proposed Electric Rate Increase - First Public Hearing
11/13/ :12 PM
May 2018 Proposed Electric Rate Increase - First Public Hearing
Springfield Utility Board
March 14, 2018
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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.

2. 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.

3. 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.

4. Rate Revenue – 2% (2017 data)

5. Rate Changes by Year by Schedule

6. 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

7. Residential Base Charges

8. 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.

9. Residential Rates – Lane County

10. Residential Rates – Regional

11. General Service – 1 (GS-1) Non-Residential <=35kW
11/13/ :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.

12. 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

13. 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

14. 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%.

15. 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.