5.3. ERMUSR 12-15-2009 - Laserfiche WebLink

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~ en Renewable energy, a sagging economy, aging infrastructure and other trials put pressure on utility finances, ~oday, rrrany public power utilities face common rlrallenges operating in the rhaotic utility environment. How do you compare to tyre issues and solutions adopted by our utility? as a city-owned electric utility serving a community twilh a population od approxi- mately 75,000, the Municipal Utility is a theoretical but typical mid-sized n-runicipal utility. It has a peak demand of 200 NIVV and annual energy sales of 1 million kWh. Its customers are mostly residential and cornrnercial with some light industry and one large manufacturing facility, whidr accounts for 7.5 percent of the annual energy sales. The Municipal Utility meets its wholesale requirements through a combination of owned generation and market purchases. It owns a portion of a large coal-fired base load plant and has local peaking resources, and it is plannirry to add additional local peaking resources in the near future. Tire utility is governed by an autonomous Utility Board whose members are appointed by the City Council. looking forward, the Municipal Utility recognizes that there are many important is- sues it will need to address. These issues otter have a component that directly impacts the utility's rates and charges to its customers. At a basic fevel, the Municipal Utility is in the business of providing electric service to its customers. The revenue side of this business is driven by the utility's rates and charges, +n~hich in turn can be de- signed to affect customer usage behavior that can irnhact the cast side of the business. The Municipal Utility has identified the fallowing issues ttaat will require rate- related'tactics as part of the utility's broad business strategy: • Special rate programs, including conservation and den~rand response • Plet metering and backup power tariffs • Renewak~le portfolio standards and carbon legislation • Large customer/local employer incentives • Municipal government cash requirements • Infrastructure needs: debt vs. cash flow funding • Overall rate strategy 16 SEPT f:AAt3f:R 2aa9 PUDLIC: POW[R