HomeMy Public PortalAbout011-2005 - Rate increase R P & LORDINANCE NO. 11-2005
AN ORDINANCE ADOPTING A NEW SCHEDULE OF
RATES AND CHARGES FOR SERVICES RENDERED
BY THE CITY OF RICHMOND' S MUNICIPAL ELECTRIC UTILITY,
RICHMOND POWER & LIGHT
WHEREAS, the City of Richmond, Indiana owns and operates a municipal
electric utility known as Richmond Power & Light (the "Utility") for the purpose of
generating, acquiring and distributing electric energy in said City and surrounding areas;
and
WHEREAS, on September 20, 2004, the Common Council adopted Ordinance
No. 69-2004, authorizing the Utility to revise its rates and charges for electric service and
directing the Utility to file a Verified Petition with the Indiana Utility Regulatory
Commission (the "Commission") seeking its approval of the revised schedule of electric
rates and charges; and
WHEREAS, Ordinance No. 69-2004 approved rates and charges which would
have resulted in an increase in the Utility's annual revenues of 7.86%; and
WHEREAS, on August 19, 2004 the Utility filed a Verified Petition with the
Commission which was docketed as Cause No. 42713; and
WHEREAS, the Utility filed the prepared direct testimony and exhibits constituting
its case -in -chief on October 15, 2004; and
WHEREAS, the Utility and the Indiana Office of Utility Consumer Counselor
("OUCC") entered into a "Joint Stipulation and Agreement" in Cause No. 42713 on
January 19, 2005, under which the parties agreed that the Utility's operating revenues from
retail sales should be increased by $2,897,420, representing a 6.5% increase in rates and
charges from sales to retail customers and that the Utility's rates and charges should be
adjusted to more accurately reflect cost -of -service and reduce the level of subsidy/excess
revenues between customer classes as proposed in the Utility's Verified Petition and case-
in -chief, and
WHEREAS, the Utility and the OUCC further agreed that the aggregate increase in
the Utility's rates and charges should be implemented in two phases, under which the
Utility would (i) increase its retail rates and charges to produce additional annual operating
revenues from electric sales of approximately $1,338,814, following the Commission's
issuance of a final Order in Cause No. 42713; and (ii) further increase its retail rates and
charges on January 1, 2006 to produce additional annual operating revenues from retail
sales of approximately $1,558,606; and
WHEREAS, on February 9, 2005, the Commission issued a final Order in Cause
No. 42713 approving the "Joint Stipulation and Agreement" in its entirety; and
WHEREAS, based upon the foregoing, the Common Council of the City of
Richmond now finds that (i) the Utility's annual operating revenue from retail rates and
charges should be increased by approximately 6.5% in two phases, as described above and
in the "Joint Stipulation and Agreement;" (ii) the Utility's rates and charges should be
adjusted to more accurately reflect cost -of -service and reduce the level of subsidy/excess
revenues between customer classes; (iii) the proposed Phase I and Phase 11 rates and
charges attached hereto as Exhibits "A" and "B," respectively, are "nondiscriminatory,
reasonable, and just" charges for services within the meaning of I.C. 8-1.5-3-8; and (iv) the
attached Phase I and Phase II rates and charges reflect therein the election of the Common
Council to include in such rates and charges each of the elements of "reasonable and just
charges" under I.C. 8-1.5-3-8, including a reasonable return on net utility plant which,
together with the Utility's other revenues, will produce a rate of return of approximately
5.1% on the Utility's net utility plant.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, THAT:
Section 1. The schedules of revised rates and charges for Phase I and Phase II
attached hereto as Exhibits "A" and "B," respectively, are hereby adopted as and for the
rates and charges to be utilized by the Utility when charging customers for electric
service, effective as set forth below.
Section 2. This Ordinance shall be in full force and effect from and after its
passage, provided, however, that the Phase I schedule of rates and charges herein adopted
shall become effective on April 1, 2005 and the Phase II rates and charges shall become
effective on January 1, 2006.
Section 3. All Ordinances and parts of Ordinances in conflict herewith are hereby
repealed including Ordinance No. 69-2004, provided, however, that the existing schedule
of electric rates and charges shall remain in full force and effect until the Phase I schedule
of rates and charges fixed by this Ordinance takes effect on April 1, 2005.
Passed and adopted this _7th _ day of _March 2005, by the Common Council of the City of
Richmond, Indiana.
S/S Bruce Wissel President
(Bruce Wissel)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _8th _ day of March
2005, at 9:00 a.m.
4
_S/S Karen Chasteen City Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this _8th _ day of
March , 2005, at 9:05 a.m.
_S/S Sarah L. Hutton Mayor
(Sarah L. Hutton)
ATTEST: _S/S Karen Chasteen City Clerk
(Karen Chasteen)