1. Power Rates - Review Rate Applications Group LADWP Rates & Contracts 2012-13

2. Power Rates - Introduction Rates are designed to reflect DWP costs Rates are designed to reflect DWP costs Rates are set by ordinance Rates are set by ordinance Designed to reflect the costs incurred for all aspects of providing electric service for the city Designed to reflect the costs incurred for all aspects of providing electric service for the city Reviewed by the independent Ratepayer Advocate Reviewed by the independent Ratepayer Advocate Submitted to the Board of Water and Power Commissioners Submitted to the Board of Water and Power Commissioners Approved by the Los Angeles City Council Approved by the Los Angeles City Council Rates are applied based on DWP rules and policies Rates are applied based on DWP rules and policies

3. Residential Rates - overview Designed to encourage conservation Designed to encourage conservation Bill consists of kwh charges and taxes Bill consists of kwh charges and taxes Standard rate R-1A: Standard rate R-1A: Tiered rates are now in effect year-round Tiered rates are now in effect year-round Tier allocation determined by Zone Tier allocation determined by Zone TOU mandatory if monthly usage exceeds 3000 kwh TOU mandatory if monthly usage exceeds 3000 kwh Optional TOU rate R-1B: Optional TOU rate R-1B: Peak rates are higher June – September Peak rates are higher June – September All 3 rates (base, low peak and high peak) are lower than the standard rate October - May All 3 rates (base, low peak and high peak) are lower than the standard rate October - May Not recommended if 2 month consumption averages less than 2000 kwh, or if summer usage is higher due to high AC usage Not recommended if 2 month consumption averages less than 2000 kwh, or if summer usage is higher due to high AC usage Tiered rates not in effect Tiered rates not in effect Recommended for customers who can control their energy usage, high kwh users and solar customers Recommended for customers who can control their energy usage, high kwh users and solar customers Lifeline, Low Income discounts not available Lifeline, Low Income discounts not available

4. Residential TOU – some important points to remember Meter availability is limited, and DWP has discretion over which customers will receive them Meter availability is limited, and DWP has discretion over which customers will receive them Not every customer who requests a TOU meter will receive it Not every customer who requests a TOU meter will receive it Customers can opt out of the TOU rate at any time, but they cannot return to the TOU rate until 12 months have elapsed Customers can opt out of the TOU rate at any time, but they cannot return to the TOU rate until 12 months have elapsed After a TOU meter has been installed, it will remain at the customer’s location on a permanent basis, and the old meter cannot be returned After a TOU meter has been installed, it will remain at the customer’s location on a permanent basis, and the old meter cannot be returned

5. Solar net metering – some important points to remember A net meter records the net difference between energy sent from DWP to the customer, and energy sent back to DWP A net meter records the net difference between energy sent from DWP to the customer, and energy sent back to DWP DWP cannot read DWP cannot read

6. Residential Rates – Q & A Q: why are my rates so high? Q: why are my rates so high? A: DWP residential electric rates are among the lowest in CA A: DWP residential electric rates are among the lowest in CA Q: why is my bill so high? Q: why is my bill so high? A: The bill is based on consumption as recorded by the electric meter. The usage should be analyzed to check for consistency, seasonal variations, or anything that may appear unusual A: The bill is based on consumption as recorded by the electric meter. The usage should be analyzed to check for consistency, seasonal variations, or anything that may appear unusual Q: why are there so many line items? Q: why are there so many line items? A: Every line item represents a specific cost that is incurred by DWP as it provides electric service A: Every line item represents a specific cost that is incurred by DWP as it provides electric service Q: why did my rate go up in the summer? Q: why did my rate go up in the summer? A: Seasonal rates are in effect June – September. This is not an increase: it is simply a seasonal variation A: Seasonal rates are in effect June – September. This is not an increase: it is simply a seasonal variation Q: I have solar – why do I still get a bill? Q: I have solar – why do I still get a bill? A: All customers receive an electric bill, even if there is no consumption. Every customer incurs costs of service (for billing, meter reading, etc), even if the usage is low or negative A: All customers receive an electric bill, even if there is no consumption. Every customer incurs costs of service (for billing, meter reading, etc), even if the usage is low or negative Q: why don’t my regular and solar bills agree? Q: why don’t my regular and solar bills agree? A: The solar statement supersedes the regular bill because it shows credits and numbers that the regular bill is unable to display A: The solar statement supersedes the regular bill because it shows credits and numbers that the regular bill is unable to display Q: I have solar, so why am I not on TOU? Q: I have solar, so why am I not on TOU? A: The TOU rate is optional, not mandatory. Customers must request it in writing A: The TOU rate is optional, not mandatory. Customers must request it in writing

7. Commercial Rates - overview Rate is determined based on kw demand and the service voltage Rate is determined based on kw demand and the service voltage A1: demand is less than 30 kw A1: demand is less than 30 kw A2: demand is greater than 30 kw, service voltage is 4.8 kv A2: demand is greater than 30 kw, service voltage is 4.8 kv A3: demand is greater than 30 kw, service voltage is 34.5 kv A3: demand is greater than 30 kw, service voltage is 34.5 kv A4: demand is greater than 80 Mw, service voltage is 138 kv A4: demand is greater than 80 Mw, service voltage is 138 kv CG, XRT eligibility requires analysis and special DWP approval CG, XRT eligibility requires analysis and special DWP approval TOU is optional for A1, mandatory for A2 and A3 TOU is optional for A1, mandatory for A2 and A3 Demand meters are installed at DWP’s discretion Demand meters are installed at DWP’s discretion There is no separate solar commercial rate There is no separate solar commercial rate

8. Commercial Rates - components The electric bill consists of service charges, kw charges, kwh (and kvar) charges, and taxes. (Please note: these terms are defined and explained in the ordinance, which is posted on the DWP website) The electric bill consists of service charges, kw charges, kwh (and kvar) charges, and taxes. (Please note: these terms are defined and explained in the ordinance, which is posted on the DWP website) Kwh charges: Kwh charges: Energy charges Energy charges ECA, VRPSEA, CRPSEA, VEA ECA, VRPSEA, CRPSEA, VEA State tax State tax Kw charges: Kw charges: Facilities Facilities Demand Demand ESA, RCA, IRCA ESA, RCA, IRCA Reactive (Kvar) charges (only with minimum 250 kw): Reactive (Kvar) charges (only with minimum 250 kw): Nonexistent on Rate A1 Nonexistent on Rate A1 Per kvar when kvar is metered Per kvar when kvar is metered Per kwh when kvar is unmetered Per kwh when kvar is unmetered

9. Commercial Rates Q & A Q: why is my bill so high? Q: why is my bill so high? A: The bill is based on kwh usage and kw demand. Billing history should be analyzed to determine if there are any inconsistencies or any other information that may indicate there is a possible error A: The bill is based on kwh usage and kw demand. Billing history should be analyzed to determine if there are any inconsistencies or any other information that may indicate there is a possible error Q: why is the commercial rate so high? Q: why is the commercial rate so high? A: DWP commercial rates are competitive with those of neighboring utilities A: DWP commercial rates are competitive with those of neighboring utilities Q: why is my demand charge so high? Q: why is my demand charge so high? A: Demand is a major component of the bill. A relatively high demand and low kwh usage will have disproportionally high demand charges A: Demand is a major component of the bill. A relatively high demand and low kwh usage will have disproportionally high demand charges Q: why do I have to pay a facilities charge? Q: why do I have to pay a facilities charge? A: Facilities represents another main component of the bill – it is not optional A: Facilities represents another main component of the bill – it is not optional Q: why is the facilities charge for a whole year? Q: why is the facilities charge for a whole year? A: This is a rate ordinance requirement. The kw read helps DWP determine the service size and transformer requirements of equipment that serves multiple customers A: This is a rate ordinance requirement. The kw read helps DWP determine the service size and transformer requirements of equipment that serves multiple customers Q: why are my reads multiplied by a k constant? Q: why are my reads multiplied by a k constant? A: A meter with a k multiplier is designed to read higher volumes of kwh and kw. This provides DWP with an opportunity to bill more accurately A: A meter with a k multiplier is designed to read higher volumes of kwh and kw. This provides DWP with an opportunity to bill more accurately Q: why am I being billed on the A2 rate, even though I haven’t exceeded 30 kw? Q: why am I being billed on the A2 rate, even though I haven’t exceeded 30 kw? A: This can be corrected retroactively by Rate Applications A: This can be corrected retroactively by Rate Applications Q: where are my commercial solar credits? Q: where are my commercial solar credits? A: These will be present if the net energy kwh total is negative. The primary benefit provided by a commercial solar installation is to benefit a customer in a similar manner as any other energy efficiency project – by reducing kwh usage A: These will be present if the net energy kwh total is negative. The primary benefit provided by a commercial solar installation is to benefit a customer in a similar manner as any other energy efficiency project – by reducing kwh usage

10. Power rates – General Q & A Q: there is no way this bill is correct. How can I challenge the meter reads? Q: there is no way this bill is correct. How can I challenge the meter reads? A: The DWP representative should try to help the customer determine why the reads may be relatively high, as well as check for historical consistency. The customer may also request a field investigation A: The DWP representative should try to help the customer determine why the reads may be relatively high, as well as check for historical consistency. The customer may also request a field investigation Q: my bill went up when you replaced my meter. How can I get my old meter back? Q: my bill went up when you replaced my meter. How can I get my old meter back? A: Meters don’t use energy – they are simply recording devices. In most cases, the old meter is no longer available A: Meters don’t use energy – they are simply recording devices. In most cases, the old meter is no longer available Q: why are my taxes, sewer charges, and trash fees so high? Q: why are my taxes, sewer charges, and trash fees so high? A: These bill components are controlled by the City Bureau of Sanitation. DWP is only the billing agent A: These bill components are controlled by the City Bureau of Sanitation. DWP is only the billing agent Q: why do I have to pay a “cost adjustment?” Q: why do I have to pay a “cost adjustment?” A: The term “adjustment” indicates that this particular billing component may be adjusted quarterly. The ECA is not a surcharge or a bill correction. It is a main component of the bill that represents certain variable costs and DWP programs A: The term “adjustment” indicates that this particular billing component may be adjusted quarterly. The ECA is not a surcharge or a bill correction. It is a main component of the bill that represents certain variable costs and DWP programs Q: my service is a residence. Why am I on the commercial electric rate? Q: my service is a residence. Why am I on the commercial electric rate? A: The A1 rate applies to common area meters serving 2 or more units. This determination is made by providing a meter survey in the field A: The A1 rate applies to common area meters serving 2 or more units. This determination is made by providing a meter survey in the field Q: why haven’t I received the TOU meter I requested? Q: why haven’t I received the TOU meter I requested? A: TOU meters are installed based on availability. When TOU is optional and not mandatory, DWP has the discretion to determine meter installation priorities A: TOU meters are installed based on availability. When TOU is optional and not mandatory, DWP has the discretion to determine meter installation priorities Q: how can I lower my electric bill? Q: how can I lower my electric bill? A: By identifying energy usage and demand characteristics in order to manage costs, and by using electricity as efficiently as possible. There is a lot of valuable and useful energy efficiency information on the DWP website A: By identifying energy usage and demand characteristics in order to manage costs, and by using electricity as efficiently as possible. There is a lot of valuable and useful energy efficiency information on the DWP website

11. Power Rates – Where to find basic billing information OnDemand displays the bill exactly as the customer sees it OnDemand displays the bill exactly as the customer sees it CIS displays all billing information CIS displays all billing information CUSE shows kwh history, meter number, rate code CUSE shows kwh history, meter number, rate code DUSE shows kw demand DUSE shows kw demand EHIS shows the electric bill calculation EHIS shows the electric bill calculation MTRD shows the meter reads as recorded MTRD shows the meter reads as recorded AJMT and POOE show any adjustments, comments AJMT and POOE show any adjustments, comments Other databases (WMBA, WMIS) show meter installations and removals Other databases (WMBA, WMIS) show meter installations and removals

12. Power Rates Review - Summary Rates reflect DWP costs Rates reflect DWP costs Rates are set by ordinance and undergo an extensive approval process Rates are set by ordinance and undergo an extensive approval process Rates are applied based on requirements outlined in the current ordinance and on DWP rules, policies and procedures Rates are applied based on requirements outlined in the current ordinance and on DWP rules, policies and procedures Rates are competitive with those of neighboring utilities Rates are competitive with those of neighboring utilities Rates reflect DWP commitment to promoting energy efficiency Rates reflect DWP commitment to promoting energy efficiency