Transcript Explanation of VEPGA Rates & Schedules

Virginia Energy Purchasing
Governmental Association
(VEPGA)
Primer On Rate Design Concepts & Practices
And
Explanation of VEPGA Rates & Schedules
(What you need to know)
MAY 9, 2013
Presented by:
Glenn A. Watkins
Senior Economist/Executive V. President
Technical Associates, Inc.
9030 Stony Point Parkway, Suite 580
Richmond, Virginia 23235
Section I:
Primer On Rate Design
Concepts & Practices
Step 1: Set Overall Revenue Requirement
Total Dominion
Revenue
Requirement
VA State
VA SCC
VEPGA
And Federal
≈ 78.9%
≈ 5.6%
Government
≈ 7.0%
N. Carolina
Federal
PUC
(FERC)
≈ 5.0%
≈ 3.5%
Step 2:
Assign Revenue Responsibility to Classes
and/or Rate Schedules
General Considerations To
Assign Revenue Responsibility
General Class Definitions
• Residential
• Small Commercial
• Medium Commercial
• Large Commercial/Industrial
• Interruptible
• Real Time Pricing
• Street & Area Lighting
Conceptually
• Marginal Costs
• Embedded Costs (Fully Allocated Cost)
• Value of Service
Other Considerations
• Prices Relative to Other Utilities
• Percent Change from Current (Legacy Rate)
• Policy and Politics
• Judgment, Negotiations, Representation
and Perceived “Fairness”
RATE DESIGN CONCEPTS & ELECTRIC TERMS OF ART
--- SYSTEM COST COMPONENTS ---
TOTAL
INTEGRATED UTILITY
Production
Primarily
Generation
Facilities
Transmission
Distribution
Substations
Poles & Lines
(FERC)
Transformers
Services &
Meters
RATE DESIGN CONCEPTS & ELECTRIC TERMS OF ART
--- BASIC RATE ELEMENTS ---
Customer Charges
Demand Charges
Energy Charges
(Fixed Per Customer)
(Per kW)
(Per kWh)
• Cost of Service
• Customer Accounting &
Billing
• Metering
• Customer Service
•
•
•
•
On-Peak
Off-Peak
Seasonal
Reactive (kVAR)
Capacity
Costs
• On-Peak
• Off-Peak
• Seasonal
Variable Costs
Demand & Energy Charge
Rate Structures
• Flat Rates (Per kW or kWh)
• Inverted and Declining Blocks
– Price Per Unit Increases or Decreases as Total kW or kWh
Increases
• Diurnal and Seasonal Time of Use
• Load Factor Based (Energy Use of Demand Blocking)
• Voltage Differentiation (Sub-transmission, Primary, &
Secondary voltage)
Section II:
Explanation of VEPGA Rates & Schedules
Revenue Collection Within
VEPGA Rates
I.
BASE RATES
II.
RIDERS
•
•
•
•
Fixed Rates Per Contract
Pre-2008 Generating Units
Distribution
Company Overhead
Automatic Recovery (Updated Annually)
• Fuel
• Transmission
• New Generation Projects (existing
generation in base rates)
VEPGA
Base Rate Schedules
Metered Services
Lighting Services
SCHEDULE
DESCRIPTION
SCHEDULE
DESCRIPTION
100
Miscellaneous Light & Power
102
Traffic Signals & Control
110
All-Electric Service & Dual Fuel Systems
150
120
Water & Sewage Pumping & Sewage
Disposal
Roadway, Directional & Area Lighting –
High Pressure Sodium
151
Roadway, Directional & Area Lighting –
Incandescent, Mercury Vapor &
Urbanlites
152
Street Lighting Fixtures on Bridges &
Overpasses
153
Street Lighting – Special Fixtures
154
Customer-Owned Lighting Facilities
(Operating Only During Night-Time
Hours)
122
Time-of-Use
130
Large Miscellaneous Light & Power
131
Thermal Storage
132
Large Misc. Light & Power – Variable
Pricing
Complimentary Services
SCHEDULE
DESCRIPTION
SGCM
Stand-by Generator
SGCM-1
Stand-by Generator (Grandfathered)
VEPGA Metered Rate Schedules (Base Rates)
RATE SCHEDULES
100
W/O
Demand
110
W/
Demand
W/O
Demand
W/
Demand
120
122
130
131
132
Approx. mWh
999,100
538,700
173,100
0
2,410,700
125,200
166,000
# of Accounts
12,750
5,250
2,700
0
1,000
20
70
Average Annual kWh/Account
78,300
102,500
64,000
0
2,400,000
6,260,000
2,375,000
RATE ELEMENT
Distribution
Customer Charges
$5.66
$5.66
$5.66
$5.66
$5.66
$8.11
$78.50
$78.50
$141.69
Demand Charges
None
None
None
None
None
Flat/kW
Declining/kW
(voltage diff.)
Declining/kW
(voltage diff.)
Declining/kW
(voltage diff.)
Reactive Demand
None
None
None
None
None
None
Flat/kVAR
Flat/kVAR
None
Flat/kWh
Flat/kWh
Flat/kWh
Flat/kWh
Flat/kWh
None
None
None
None
None
None
None
None
None
Seasonal Flat/kW
Inverted/kW
(Seasonal TOU
Ratchet)
Energy Charges
Electricity Supply (Production)
Demand Charges
1/
Inverted/kW
(Seasonal TOU
Ratchet)
1/
Inverted/Kw
(voltage diff.)
(Annual Ratchet)
Energy Charges
Flat/kWh kWh per kW
(Declining)
Seasonal
Flat/kWh
kWh per kW
Seasonal
(Declining)
1/ Flat per kW charge less declining demand credit, which results in an inverted rate per kW.
Diurnal
Flat/kWh
Seasonal
Flat/kWh
Declining/kWh
Declining/kWh
Critical Day
Designation
(TOU)/kWh
VEPGA Riders
Rate Schedule
Rider
Transmission (Rider T)
100
110
120
122
130
131
132
Energy Energy Energy Demand Demand Demand Demand
Lighting
Energy
Generation
Virginia City Hybrid (Rider S) Energy Energy Energy Demand Demand Demand Energy
Energy
Bear Garden (Rider R)
Energy Energy Energy Demand Demand Demand Energy
Energy
Warren County (Rider W)
Energy Energy Energy Demand Demand Demand Energy
Energy
Bio-Mass Facilities (Rider B) Energy Energy Energy Demand Demand Demand Energy
Energy
Fuel (Rider A)
Energy (All Rate Schedules Same Rate)