Electric Department Enterprise Fund

The Electric Department Enterprise fund has many challenges for our community. Total customer load has significantly decreased which results in lower total revenue (about $3.75M less than expected in the 2008 plan for the Blue Lake dam). The Bond covenants require a collection which amounts to 125% above the debt service or approximately $10M/yr above the cost of Operations (which is about $8.4M). This $8.4M in Operations costs can be split into two cost components, one for labor $4.2M and one for non-labor $4.2M. Much of the labor cost is dictated by IBEW rates and is non controllable. The remaining $4.2M of operating costs are for maintenance, safety, regulatory compliance, Federal Permit requirements and other city services such as billing and accounting. In addition, significant infrastructure improvements are specifically identified and needed over the next ten year period. The attached calculator indicates the numbers which you can change and the numbers which are fixed. The adjustments made in FY17 impact the FY18 section.

ELECTRIC ENTERPRISE FUND FY17
RATE CALCULATOR

INPUTS YOU CAN CHANGE
% Change in FY17 Load
% Change in FY17 Elect Rates
Months of Changed Rate in FY17
Funds from OTHER $
Funds from Rate Stabilization Acct
% Reduction in non-labor expense
Calculate and view results below

 

CALCULATIONS and FIXED #
Original Elect Rate $/kwhr
Adjusted Elect Rate $/kwhr
Original KWHrs Sold -
Adjusted KWHrs Sold -
Calculated Electric Revenue
Other Revenue (fixed)
Funds from OTHER $
Operations Costs Labor (fixed)
Adjusted Operations Costs, Non Labor
Interest and Principal on Loan (AEA)
Interest on Bonds (fixed)
Interest on Bonds net of Fed Revenue
Bond 25% Adder
OVERALL Revenue Requirement

 

FINAL RESULT
REQUIRED TARGET IS ZERO

ELECTRIC ENTERPRISE FUND FY18
RATE CALCULATOR

INPUTS YOU CAN CHANGE
% Change in FY18 Load
% Change in FY18 Elect Rates
Months of Changed Rate in FY18
Funds from OTHER $
Funds from Rate Stabilization Acct
% Reduction in non-labor expense
Calculate and view results below

 

CALCULATIONS and FIXED #
Original Elect Rate $/kwhr
Adjusted Elect Rate $/kwhr
Original KWHrs Sold -
Adjusted KWHrs Sold -
Calculated Electric Revenue
Other Revenue (fixed)
Funds from OTHER $
Operations Costs Labor (fixed)
Adjusted Operations Costs, Non Labor
Interest and Principal on Loan (AEA)
Interest on Bonds (fixed)
Interest on Bonds net of Fed Revenue
Bond 25% Adder
OVERALL Revenue Requirement

 

FINAL RESULT
REQUIRED TARGET IS ZERO