1. Island Energy Advisory Committee Board
FY Rate Case
Presented to
Island Energy Advisory Committee Board
DRAFT

2. FY Accomplishments
Completed the first phase of the substation H upgrade.
Began the second phase of the upgrade.
Promoted various energy efficiency programs to encourage energy savings and to reduce customer’s energy bills.
Implemented retail level solar incentive program providing rebates for the installation of solar energy systems.
Implemented the Medical Support Baseline and Low Income Assistance programs to help people in need.

3. FY Accomplishments
Increased public outreach activities within the Mare Island and Vallejo communities.
Island Energy was awarded “Business of the Year” by Vallejo Chamber of Commence.
Continued updating of website to reflect the most accurate information to be used by commercial and residential customers including downloadable forms, applications, and newsletters.
Distributed Quarterly Newsletters to keep customer informed on Island Energy’s latest activities and programs.
Sponsored eight events/programs for a total of $ 8,500 through Outreach (non-rate payer) funds.

4. Island Energy Historical Electric Load

5. Island Energy Historical Gas Load

6. Proposed FY 2010-2011 Electric Operation Expenses
Percentage
Electricity Purchase
Cost
$1,436,331
43.51%
Electric Labor
Services
$424,400
12.86%
Shops and
Materials
$22,000
0.67%
Maintenance &
Repairs
$65,000
1.97%
Contractual &
Professional
$28,000
0.85%
Meeting & Training
$4,500
0.14%
Depreciation
$310,000
9.39%
Capital Outlay
$25,000
0.76%
A&G Transfer
$986,173
29.87%

7. Proposed FY 2010-2011 Gas Operation Expenses
Percentage
Gas Purchase Cost
$347,560
34.23%
Gas Labor Services
$295,000
29.05%
Shops & Material
$16,500
1.62%
Maintenance &
Repairs
$70,000
6.89%
Contractual &
Professional
$20,000
1.97%
Meeting & Training
$3,000
0.30%
Depreciation
$15,000
1.48%
A&G Transfer
$248,395
24.46%

8. FY 2010-2011 Operating Expense Summary
Electric Operation
Current Rate Case
Proposed Rate Case
$ Change
% Change
 Year
FY 2009/2010 FY
Electricity Purchase Cost
$ ,534,505
$ ,436,331
$ (98,174)
-6.40%
Operating Expense
$ ,818,099
$ ,865,073
$ ,974
2.58%
Total Electric Operating Expense
$ ,352,604
$ ,301,404
$ (51,200)
-1.53%
Gas Operation
Gas Purchase Cost
$ ,350
$ ,560
$ ,210
17.68%
$ ,283
$ ,895
$ ,612
1.00%
Total Gas Operating Expense
$ ,633
$ ,015,455
$ ,822
6.15%
Total Operating Expense
$ ,309,237
$ ,316,859
$ ,622
0.18%

9. Proposed FY 2010-2011 Electric Revenues
Customer Class
Rate Case
FY 09/10
FY 10/11
$ Change
% Change
Residential
$219,709
$233,747
$ 14,038
6.38%
Non-Residential
$2,797,004
$2,813,646
$ 16,642
0.60%
Street Lighting
$27,289
$ 0.00 0%
Total
$3,044,001
$3,074,682
$30,681
1.01%

10. Proposed FY 2010-2011 Gas Revenues
Customer Class
Rate Case
FY 09/10
FY 10-11
$ Change
% Change
Commodity Charge
$295,350
$347,560
$52,210
17.68%
Delivery Charge
$580,524
$537,440
(43,084)
-7.42%
Meter Service Charge
$24,729
0.00
0.00%
Total
$900,603
$909,729
9,126
1.01%

11. Proposed FY 2010-2011 Operating Income Cumulative Cash Flow of
Operation
Electric
Gas
Total
Revenues
$3,074,682
$909,729
$3,984,411
Expenses
$3,301,404
$1,015,455
$4,316,859
Surplus/(Deficit)
($226,722)
($105,726)
($332,448)
Depreciation
$310,000
$15,000
325,000
Cumulative Cash Flow of FY
($7,448)

12. Proposed FY 2010-2011 Electric Rates
Residential Electric Rates
Year
FY (as of July 2009)
Residential Electric Rate ($/Kwh)
FY (as of March 2010)
FY Residential Electric Rate ($/Kwh)
Island Energy
PG&E
Difference
As of March 2010
Tier 1: $ 0% $
-3.00% $ $
Tier 2: $ $ $ $
Tier 3: $ $
-9.96% $ $
Tier 4: $ $
-12.19% $ $
Tier 5: $ $
-12.88% $ $
Non-Residential Electric Rates
Year
FY (as of July 2009) Non-Residential Electric Rate ($/Kwh)
FY (as of March 2010) Non-Residential Electric Rate ($/Kwh)
FY Non-Residential Electric Rate ($/Kwh)
Customer Class
Island Energy
PG&E
Difference
As of March 2010
Small Commercial User $ 0% $
-4.0% $ $
Large Commercial User $ $
-4.4% $ $ 12

13. Proposed FY 2010-2011 Electric Rates
As an averaged residential customer who consumes 500 kWh a month,
you save $1.97 a month under Island Energy’s Current Rate Schedule.
Total Customer Usage:
500
Island Energy
PG&E
(Rates as of 04/22/2010)
Number of Billing Days: 30
Baseline =
12.6
kWh/Day
kWh Used
Rate
Cost
Tier 1:
Baseline Usage
378 $ $ $ $
Tier 2:
% Baseline
113.4 $ $ $ $
Tier 3:
% Baseline
8.6 $ $ $ $
Tier 4:
% Baseline $ $ $
Tier 5:
Over 300% Baseline $ $
Total Cost $ $

14. Proposed FY 2010-2011 Electric Rates
As an averaged commercial customer who consumes 2,500 kWh a month, you save $ a month under Island Energy’s Current Rate Schedule (FY ). FY
Island Energy
PG&E
A-1 Rate
$ /KWh
$ /KWh
Utility Bill $ $
Savings $
As a large commercial customer who consumes 86,400 kWh a month, you save $ a month under Island Energy’s current rate Schedule (FY ) FY
Island Energy
PG&E
A-10 Rate $ $
Utility Bill
$ ,665.02
$ ,262.91
Savings $

15. Gas operation has not been self-sufficient even with sales increase in FY 2009-2010.
Commodity rate remains a pass-through at an average of $0.793/Therm
10% reduction in delivery charge, from $1.3617/Therm to $1.2258/Therm.
Proposed FY Gas Rates

16. Pittsburg Power Company Financial Assistance to Support Island Energy Operation
Island Energy Establishment Loan
$ ,000
Facility Relocation Loan
$ ,000
Loan for Gas/Electric Meters
$ ,000
Loan for Operational Support
$ ,000
Investment on System Upgrade
$ 3,000,000
Total Financial Assistance to Island Energy
$ 4,250,000

17. Taxes Paid to the City of Vallejo for Island Energy Operation
Year
FY 99/01
FY 01/02
FY 02/03
FY 03/04
FY 04/05
FY 05/06
FY 06/07
FY 07/08
FY 08/09 FY
09/10
Actual
Projection
COV Sales Tax
$153,444
$107,556
$126,064
$130,816
$132,785
$160,864
$176,264
$207,411
$213,517
$219,000
Electric Franchise Fee
$11,476
$43,398
$53,578
$59,019
$58,981
$60,880
Gas Franchise Fee
$13,711
$ 18,012
Annual Tax Payment to COV
$144,261
$204,262
$229,842
$266,430
$286,209
$297,892
Total Taxes Paid to the City of Vallejo: $1,946,776
Gas Operation Franchise Fee started on January 1st, 2009