AI- 191
2.
Special / Executive Session Board of Supervisors Meeting
- Meeting Date:
- 04/19/2011
- Title:
- ACC Rate Increase for SSVEC
- Submitted By:
- Katie Howard, Board of Supervisors
- Department:
- Facilities
Presentation:
No A/V Presentation
Recommendation:
Document Signatures:
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
NAME
of PRESENTER:
of PRESENTER:
LH Hamilton
TITLE
of PRESENTER:
of PRESENTER:
Director of Facilities
Mandated Function?:
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Agenda Item Text:
NOTE: THIS ITEM WILL BE HEARD IN OPEN SESSION --
Oppose action contemplated by the Arizona Corporation Commission (ACC) to approve a request for a rate increase for Sulphur Springs Valley Electric Cooperative per kWh charge to $0.00988 (up from $0.007937) and, based on ACC's staff recommendation, to also raise the caps by 62% in each rate class (this cap increase was not requested by SSVEC), which would result in an estimated increase of $20,800 per year to Cochise County.
images.edocket.azcc.gov/docketpdf/0000114621.pdf
Oppose action contemplated by the Arizona Corporation Commission (ACC) to approve a request for a rate increase for Sulphur Springs Valley Electric Cooperative per kWh charge to $0.00988 (up from $0.007937) and, based on ACC's staff recommendation, to also raise the caps by 62% in each rate class (this cap increase was not requested by SSVEC), which would result in an estimated increase of $20,800 per year to Cochise County.
images.edocket.azcc.gov/docketpdf/0000114621.pdf
Background:
The Sulphur Springs Valley Electric Coop (SSVEC) Renewable Energy Standards and Tariff (REST) program is still under review by the Arizona Corporation Commission (ACC). SSVEC requested a small 10% increase to their collections to speed up the current “oversubscription” of incentives. To accomplish this, SSVEC increased the per kWh surcharge from $0.007937 per kWh to $0.00988 per kWh and left the current cap (maximum or ceiling of the surcharge by rate class) at the same level as the last two years. With the increase in the kWh surcharge a few people (mostly residential) will reach the maximum that they hadn’t in the past. But, if you are already paying the maximum amount there will be no change to you under the proposed SSVEC plan.
The ACC staff has recommended a plan that increases the total collected by 43% and to not just increase the per kWh charge to $0.00988 but to also raise the caps by 62% in each rate class. The estimated impact to Cochise County’s Electric bills with the increase in the caps is an additional $20,800 per year.
The ACC commissioners must still vote to approve either the staff’s plan or the SSVEC plan. It is our understanding that this case will be heard on Wednesday, April 20, 2011.
Fiscal Impact & Funding Sources: Should the proposed action by the ACC be approved, the County would have to add $20,800 to their utilities budget.
The ACC staff has recommended a plan that increases the total collected by 43% and to not just increase the per kWh charge to $0.00988 but to also raise the caps by 62% in each rate class. The estimated impact to Cochise County’s Electric bills with the increase in the caps is an additional $20,800 per year.
The ACC commissioners must still vote to approve either the staff’s plan or the SSVEC plan. It is our understanding that this case will be heard on Wednesday, April 20, 2011.
Fiscal Impact & Funding Sources: Should the proposed action by the ACC be approved, the County would have to add $20,800 to their utilities budget.
Department's Next Steps (if approved):
The Board of Supervisors should communicate their opposition to the proposed action to the ACC.
Impact of NOT Approving/Alternatives:
ACC will determine rate and cap increase without hearing from the Board of Supervisors.
To BOS Staff: Document Disposition/Follow-Up:
n/a