HomeMy Public PortalAbout001-2023 - Admendment of the Rate Tariff to Adopt an Amended Economic Development Rider RESOLUTION 1-2023
A RESOLUTION OF THE UTILITY SERVICE BOARD OF THE,CITY OF
RICHMOND,INDIANA RECOMMENDING THE AMENDMENT OF THE RATE
TARIFF TO ADOPT AN AMENDED ECONOMIC DEVELOPMENT RIDER
WHEREAS, the City of Richmond, Indiana ("City"), by and through its Utility Service
Board ("Board"), owns and operates a municipal electric utility for the purpose of distributing
electricity in said City and surrounding areas; and
WHEREAS, the rates and charges of Richmond Power& Light("RP&L" or"Utility") are
subject to the jurisdiction of the Common Council ("Council"); and
WHEREAS,the existing rates and charges for electric services provided by the Utility were
placed into effect following approval by the Indiana Utility Regulatory Commission in Cause No.
45361 in a Final Order dated January 20, 2021 and amended effective July 1, 2022; and
WHEREAS, RP&L is a member of the Indiana Municipal Power Agency ("IMPA"); and
WHEREAS, the Council previously adopted an Economic Development Rider, which is
included in the rates and charges tariff, that makes incentives available to qualifying customers of
the electric utility on the same terms as IMPA's Economic Development Rider (the "IMPA
Rider"); and
WHEREAS, IMPA recently amended the IMPA Rider and RP&L must now make
conforming changes to its Economic Development Rider(attached as Exhibit A in amended form);
and
WHEREAS, the Board believes the Council should amend the rates and charges tariff to
amend the IMPA Rider.
NOW, THEREFORE, BE IT RESOLVED by the Utility Service Board that the attached
IMPA Rider(attached as Exhibit A)should be recommended for approval by the Common Council
• by Ordinance.
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PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF RICHMOND
POWER & LIGHT THIS-2 DAY OF , 2023.
BOARD OF DIRECTORS OF
RICHMOND POWER & LIGHT
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Exhibit A
Economic Development Rider
1. Availability. This Rider is available to a Qualifying Customer (as defined herein) to
encourage large power users to expand or create new operations within the Utility's service
territory.
2. Qualifications. A"Qualifying Customer" is a new or existing non-residential customer in
the Utility's service territory that is establishing new operations or expanding existing
operations such that the new or expanded operations will result in new or additional
demand of at least one(1)MW(1000 kW) at one delivery point(the"Qualifying Demand")
and the new or expanded operations has involved a capital investment of at least one
million dollars (S1,000,000) within the Utility's service territory.
For a Qualifying Customer that is expanding operations, Qualifying Demand is measured
from the average monthly peak demand for the twelve (12) months immediately preceding
the Incentive Period's Effective Date. For a Qualifying Customer that is establishing new
operations, Qualifying Demand is measured from zero.
A Qualifying Customer is not a customer: (1) with "new" demand that results from a
change in ownership of an existing establishment without qualifying new load; (2)
renewing service following interruptions such as equipment failure, temporary plant
shutdown, strike, economic conditions, or natural disaster; or (3) that has shifted its load
from one operation or customer to another within the Utility's service territory. The Utility
may determine exclusively, without recourse by the customer, whether an event has
occurred that would prevent a customer from being a Qualifying Customer.
3. Rate Incentive. Beginning with the Incentive Period's Effective Date,Utility will receive
a credit on its wholesale bill for the qualifying new load. The incentive amount received
by Utility from the Indiana Municipal Power Agency for such load will be passed in full
to Qualifying Customers. For reference purposes, the discount to the Qualifying
Customer's wholesale cost for qualifying new load will be calculated according to the
following schedule:
Months 1-12 20%
Months 13-24 15%
Months 25-36 10%
Months 37-48 10%
Months 49-60 5%
"Incentive Period" means months 1 through 60, as designated above. The "Incentive
Period's Effective Date" means the first calendar day of the first month in which the
customer receives the incentive. If the Incentive Period's Effective Date is after December
31, 2023, the total incentive that the Qualifying Customer may receive in each 12-month
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period shall be limited to the incentive amount approved in the Indiana Municipal Power
Agency's Schedule B in effect as of the Incentive Period's Effective Date.
The Qualifying Customer must meet the minimum Qualifying Demand during each month
of the Incentive Period. Failure to meet the minimum Qualifying Demand in a particular
month will result in 0% reduction for that month.
4. Terms and Conditions. The Qualifying Customer must submit a Service Application to
the Utility specifying: (1) a description of the amount and nature of the new load; (2) the
basis on which the Qualifying Customer meets the requirements of this Rider; (3) the
Qualifying Customer's desired effective date; and
This Rider will terminate on the same date that IMPA's economic development rider
terminates, except that any Qualifying Customer receiving the rate incentive at the time of
the Rider's termination may continue receiving the incentive for the remainder of the
applicable Incentive Period (as long it continues to meet the Rider's requirements)
5. Applicable Rate Schedules. This Rider is applicable to the following rate schedules:
• Large Power Service Secondary (LPSS)
• Large Power Service Secondary Optional Coincidental Peak (LPSS-COIN)
• Large Power Service Primary—(LPSP)
• Large Power Service Primary—Optional Coincidental Peak (LPSP-COIN)
• Industrial Service Secondary (ISS)
• Industrial Service Secondary— Optional Coincidental Peak(ISS-COIN)
• Industrial Service Primary (ISP)
• Industrial Service Primary—Optional Coincidental Peak (ISP-COIN)
• Transmission Service ('I'S)
• Transmission Service— Optional Coincidental Peak (TS-COIN)
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