HomeMy Public PortalAbout116-1996- SPECIAL ORDINANCE ADOPTING NEW SCHEDULE OF RATES ANDORDINANCE NO. 116-1996
A SPECIAL 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 and distributing electric energy in said City and surrounding
areas; and
WHEREAS, the existing rates and charges for electric services provided by the Utility
were placed into effect following the Indiana Utility Regulatory
Commission's (the "Commission") approval thereof in Cause No. 39465,
Order dated December 30, 1992 (the "Order); and
WHEREAS, the Order approved an 8.3% overall increase in the Utility's annual
operating revenues and a 15% reduction in the level of subsidy/excess
revenues between customer classes. The Order also required the Utility to
file a petition with the Commission no later than march 31, 1996, seeking to
further reduce the level of subsidy/excess revenues between customer
classes based on an updated cost -of -service study; and
WHEREAS, on March 28, 1996, the Utility filed with the Commission a petition seeking
approval of a new schedule of electric rates and charges that would be
restructured and adjusted, based on an updated cost -of -service study, to
better reflect cost -of -service by customer class, which petition was docketed
by the Commission as Cause No. 40434 (the "Rate Restructuring Case");
and
WHEREAS, the Utility engaged Donald E. Gimbel and Associates, Inc., Rate
Consultants, to perform an updated cost -of -service study based upon the
pro forma revenues, expenses and net original cost plant in service for the
test year ending December 31, 1995 provided by London Witte Group,
LLC; and
WHEREAS, a study of the Utility's revenue requirements under I.C. 8-1.5-3-8 and a
cast -of -service study have been performed and the Utility has filed
testimony and exhibits with the Commission requesting approval of an
overall 1.33% decrease in the Utility's operating revenues and a 20%
reduction in the level of subsidy/excess revenues between customer classes;
and
WHEREAS, the Utility has reached an agreement with the Office of the Utility Consumer
Counselor and a group of industrial customers which intervened in the Rate
Restructuring Case to settle all matters at issue in the Rate Restructuring
Case; and
WHEREAS, the parties in the Rate Restructuring Case have agreed RP&L's operating
revenues should be decreased 2.32% and the level of subsidy/excess
revenues between customer classes should be reduced in two phases, by
35% in the first phase and an additional 30% in the second phase; and
WHEREAS, the Common Council of the City of Richmond now finds that (i) the
Utility's annual operating revenues from existing rates and charges for
electric service should be reduced by 2.32%; (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 reduction in subsidy/excess revenues should be accomplished in two
phases; (iv) the proposed Phase I rates and charges attached hereto as
Exhibit A and the proposed Phase II rates and charges attached hereto as
Exhibit B are designed so that they are nondiscriminatory, "reasonable and
just charges" for services within the meaning of I.C. 8-1.5-3-8 and follow
more closely cost of service by customer class; and (v) the proposed rates
and charges attached to this Ordinance 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 should permit the Utility to
collect operating revenues that will produce net operating income of
approximately $2,113,687 and a 4.20% return the Utility's net plant of
$50,315,782.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF RICHMOND, INDIANA, THAT:
Section 1. The schedule of rates and charges attached hereto as Exhibit A is hereby
adopted as and for the rates and charges to be utilized by the Utility during Phase I when
charging customers for electrical service, effective upon the approval of the Commission as
set forth below.
Section 2. The schedule of rates and charges attached hereto as Exhibit B is hereby
adopted as and for the rates and charges to be utilized by the Utility during Phase II when
charging customers for electric service, effective beginning with the first fall billing period
twelve (12) months after the Commission's approval of an order in the Rate Restructuring
Case and subject to the Commission's approval as set forth below.
Section 3. All Ordinances and parts of Ordinances in conflict herewith are hereby
repealed; provided, however, that the existing schedule of electric rates and charges shall
remain in full force and effect until the Phase I and Phase II schedules of rates and charges
adopted and fixed by this Ordinance shall be approved by the Commission, and until such
time as the order of said Commission approving said new rates and charges shall direct.
Section 4. This Ordinance shall be in full force and effect from and after its
passage; provided, however, that the schedules of rates and charges herein adopted shall
not become effective unless and until approved by the Commission in the Rate
Restructuring Case or until such time as said Commission shall direct.
Passed and adopted this day of 1997, by the Common
Council of the City of Richmond, Indiana.
�--<leilt
(Robert Dickman)
I
ATTES City Clerk
(Norma S eder)
SENTED to the Mayor of the City of Richmond, Indiana, this day of
1997, a4.M-a�=
6.
City Clerk
(No a Schroeder)
this
Mayor
A
DISPOSITION OF ORDINANCE NO. - 19 ��
RESOLUTION NO. - 19
by Common Council
Ordinance No.
Resolution No.
Date L .-7—
Elstro
Lundy
Wissel
Stamper
Welch
Parker
Allen
Dickman
Hutton
Susp. rules 1st reading
Title Only
Seoond
Move to 2nd reading
Second
Engrossment
Second
Susp.rules 3rd reading
Second
PassageL�—
Rejection
Date Passed a2
COMMITTEE ASSIGNMENTS:
Committee Date