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What it means forAustins Faith
Community
November 29, 2011
The Austin Energy Rate Review
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The Big Picture
No rate review since 1994
Austin Energy says it requires = $1.136 billion. (This
is called Revenue Requirement)
Current revenues $1.004 billion.
An additional $131 million or 13.2% increase
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The General Fund Transfer
Austin Energy transfers roughly 10% of grossrevenues to the City of Austin.
$101 million in FY 2010
One of the 3 main components of Citys GeneralRevenue Fund (sales and property tax)
Is this a proper way to raise taxes? (Procedure)Phantom tax: not obvious like a sales or property tax
Lack of representation for AE customers not in AustinTax Justice (Equity) More regressive than a flat sales tax on the poor
Not just the poor, but the middle class too
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The Revenue Requirement
Really complicated, but know: Its an art not a science
Gets litigated in what is known as a rate case. If it shrinks, all customers benefit.
City Council can shrink itPublic Utility Commission (state) can shrink it in a rate case.
Texas Impact believes it is overinflated
They could just increase everyone 13.2% across theboard, but
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Percent Increase Under Current Proposal
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Faith Community as Part of Larger Community
Total Austin Energy Revenue = $1.004 Billion (FY2009)
Austin Faith Community = Currently, $5 millionannually in electric bills; or 1/2 of 1% of total revenue
Projected Increase = $9 million or an additional $4million annually from the faith community
As a class, an increase of roughly 80%.
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Texas Impacts Goals
We want to pay our fair share
80% is not fair.
Our Goals Protect low-income ratepayers
Negotiate the most fair increases for Houses of Worship
Protect the environment with a more green design
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Low-Income Customers
Faith Community interconnected with low-incomecommunity If faith communitys rates go up, then less money for ministries
that benefit the community.
If low income rates go up, then the fewer families we can helpwith our limited benevolence funds.
Fixed Charge = a customer owes regardless of usage
The new fixed customer charge added to the new
fixed delivery charge quadruples fixed charges from$6 to $25 a month.
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Inadequate Low-Income Programming (CAP)
Customer Assistance Program (CAP)
Fixed Charges Currently offsets the fixed customer charge
No guarantee it will continue to do so
Inadequate Funding Over 50,000 families in Austin on food stamps
Cap currently covers less than 10,000 customers
Proposal doubles funding, (from $3.1 mil to $7.7 mil) but at
most covers 26,000 customers only the Citys need.
About a $15 million dollar issue
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Inadequate Low-Income Programming (EE)
Proposal raises roughly $28 million for greenprograms
We support this. However, no commitment tofunding green programs that benefit low andmoderate income households
All ratepayers pay the on bill charge
Unfair to make poor people pay for rich peoples solar
panels without programs to save the less affluent ontheir monthly bill through energy efficiency as well.Its just Equity.
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Houses of Worship
All Houses of Worship will bebilled in the Commercial Class
621 will be charged based on peak
demand for the first time For those who have not paid
demand charges in the past theywill phased in over 3 years(energy (kWh) charges will
decrease as demand (kW) chargesincrease)
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Case: El Paso Electric
Problem: Houses of Worship were assessed demandcharges for the first time; bills skyrocketed
Reaction: Religious Leaders filed complaints in Texasand New Mexico with regulatory authorities
Solution: An agreement was reached to implement a20% cap for the energy portion of their bill per facility.
Customers who are:Off-peak users, with low load factors,
Charitable organizations, and Recently reassigned a rate class with demand charges
This solution was approved by the El Paso CityCouncil and the Public Utility Commission
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Austins Design is not Green
Complicated case to make
Must understand the nuances of the rate design
Were going to have to examine the structure of therate so lets circle back to this
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What?! 80%?! Why?!
Rate Design 101
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80%?! Why?
Short Answer: Demand Charges
Three basic types of charges on a bill
Fixed (flat fee everyone pays regardless of usage)
Harms very green & low-income customersRelatively insignificant for faith community
Energy (kwh)(measured like a house)Demand (kW)(measurement of peak)Delivery Charge
Demand Charge; andRegulatory Charge
All could be based on energy, but AE chose demand
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KW Demand vs. KWH Consumption
Example: A 60 Watt Light BulbNeeds continuous 60W to run
This is the Demand (measured in KW)Under 60W, and lights go outAt any one moment in time
A 60W Bulb Run for 1 Hour = 60 Watt/hourOr .060 kwhMeasure of total consumption (in kwh)
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Put Another Way: Two Kinds ofMeasurements
Measure #1 = Total KWHConsumption Over billing cycle
Basis for the energy charge
Measure #2 = Peak KWHighest peak in any moment over billing cycle
Basis for the demand charge
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Current Electric Rates(Residential & General Service Non-Demand)
So run that one light bulb for 360 hours for thatbilling cycle
60W x 360 hr = 21,600 Watt/hours; or 21.6 KWhHypo: Utility charges $0.10/KWh
Then 21.6 KWh x $0.10 = $2.16
This is how homes and most worship facilities are
currently billed
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Proposed Commercial Rates(Add a Demand Charge)
Back to Light Bulb Example1 Light Bulb = 60W or .06 KW
300 bulbs = 18 KW
18 KW x $15 per KW = $270
Just for flipping the switch one time
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How Worship Facility Bills Would Work
Bill = Fixed Charges + Energy Charges +Demand Charges Fixed Charge = $25
Demand Charge = $270 Energy Charge = $180
300 bulbs (60W) x 100 hours = 1800 kwh @ $0.10/kwh
$475 = $25+$270+$180
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A Large Church in Austin
Read DateKWH
UsageKW
Demand Avg. LF% Current BillTotal Projected
Bill % Increase
12/16/09-1/19/10 29,000 102 34.8% $2,754.45 $2,996.83 8.80%
1/19/10-2/16/10 25,600 202 18.9% $2,430.77 $4,228.36 73.95%
2/16/10-3/17/10 23,600 210 15.6% $2,240.37 $4,237.70 89.15%
3/17/10-4-15-10 32,000 226 20.3% $3,040.05 $4,896.34 61.06%
4/15/10-5/16/10 53,000 242 29.4% $5,984.25 $6,205.27 3.69%
5/16/10-6/16/10 71,400 276 34.8% $8,067.13 $8,144.89 0.96%
6/16/10-7/18/10 92,600 264 45.7% $10,466.97 $9,128.15 -12.79%
7/18/10-8/17/10 98,200 268 50.9% $11,100.89 $9,495.92 -14.46%
8/17/10-9/16/10 95,400 272 48.7% $10,783.93 $9,402.45 -12.81%
9/16/10-10/17/10 64,400 242 35.8% $7,274.73 $6,793.62 -6.61%
10/17/10-11/15/10 42,600 220 27.8% $4,085.81 $5,358.99 31.16%
11/15/10-12/15/10 28,000 250 15.6% $2,683.33 $5,027.58 87.36%
Total Annual 655,800 $70,912.68 $75,916.10 7.06%
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A Church w/ DG Solar Panels
Read DateKWH
UsageKW
Demand Avg. LF% Current BillProjected
Bill % Increase
% fromkWh
charges(Solar)
8/10/11-
9/10/11 16,880 96.00 23.6% $2,292.08 $2,438.60 6.4% 37.87%
7/12/11-
8/10/11 9,440 96.00 14.1% $1,279.79 $2,030.07 58.6% 37.93%
6/10/11-
7/12/11 14,880 79.20 24.5% $1,761.12 $2,075.60 17.9% 43.45%5/11/11-
6/10/11 10,160 91.20 15.5% $1,203.87 $1,872.54 55.5% 40.61%
4/11/11-
5/11/11 8,640 78.40 15.3% $1,024.42 $1,614.00 57.6% 40.58%
3/10/11-
4/11/11 5,120 76.00 8.8% $608.85 $1,398.56 129.7% 40.47%
2/9/11-3/10/11 4,440 56.80 11.2% $579.24 $1,093.32 88.8% 36.89%
1/11/11-2/9/11 3,760 37.60 14.4% $341.13 $788.09 131.0% 53.04%
12/9/10-1/11/11 3,760 30.40 15.6% $341.13 $686.78 101.3% 53.04%
11/8/10-
12/9/10 3,440 40.00 11.6% $312.85 $805.34 157.4% 52.91%
10/11/10-
11/8/10 4,960 58.40 12.6% $448.98 $1,142.67 154.5% 53.16%
9/10/10-
10/11/10 8,800 84.80 13.9% $942.30 $1,826.14 93.8% 48.02%
Total Annual 94,280 69 $11,135.76 $17,771.73 59.6% 44.83%
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A Large Church w/ Multiple Meters
Preschool & Sanctuary Family Life Center
ReadDate
KWHUsage
KWDeman
dAvg.LF%
CurrentBill
Projected Bill % Inc.
KWHUsage
KWDeman
dAvg.LF%
CurrentBill
ProjectedBill % Inc.
11/28/1
0
45,90
0 177
32.7
%
$4,473.0
3
$4,924.2
9 10.1% 22,400 168
15.9
% $2,179.66 $3,584.82 64.5%
12/28/1
0
46,80
0 159
40.9
%
$4,218.7
6
$4,717.4
8 11.8% 23,200 200
16.1
% $2,088.14 $4,076.35 95.2%
1/27/11
45,30
0 150
41.9
%
$4,166.2
4
$4,513.4
3 8.3% 26,800 208
17.9
% $2,462.20 $4,374.71 77.7%
2/24/1139,900 156
38.1
%
$3,668.8
4
$4,319.1
6 17.7% 27,200 212
19.1
% $2,499.04 $4,451.63 78.13%
3/29/11
50,40
0 168
37.9
%
$4,635.9
9
$5,029.9
0 8.5% 22,400 164
17.2
% $2,056.91 $3,528.54 71.55%
4/27/11
48,30
0 177
39.2
%
$5,302.9
7
$5,048.1
5 -4.8% 21,600 172
18.0
% $2,363.03 $3,599.82 52.34%
5/30/1157,60
0 17741.1
%$6,326.9
9$5,895.2
1 -6.8% 26,000 18018.2
% $2,847.51 $4,205.26 47.68%
6/28/11
59,40
0 276
32.0
%
$6,525.1
8
$7,485.9
7 14.7% 28,800 172
24.9
% $3,155.82 $4,238.45 34.31%
7/27/1164,200 255
36.2
%
$7,053.7
1
$7,433.0
7 5.4% 33,600 188
25.7
% $3,684.35 $4,743.14 28.74%
8/29/11
77,10
0 240
40.6
%
$8,474.1
4
$7,915.3
6 -6.6% 44,800 212
26.7
% $4,917.58 $5,719.81 16.31%
10/3/1169,600 213
37.8
%
$7,648.3
1
$6,653.9
7
-
13.0% 34,800 204
19.7
% $3,816.48 $4,731.31 23.97%50,10 48.3 $4,635.4 $4,676.7 30.1
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2009 Average Industrial Rates
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What You and Your Congregation Can Do
Contact City
CouncilLetters, Emails, Phone Calls,Letters to the Editor to get their
attention
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Message to Council
Make it fair 80% is grossly disproportionate to the faith community. Cap
the increase at 20% per customer.
Low-income people cannot handle the increase in a recession.
Make it affordable Some congregations will close under current proposal.
Some families will go under which will leads to a cascade ofeconomic harm for all.
Make it green Energy production & consumption harms the environment
Demand charges do little to protect the environment.
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Timeline
Contact your City Council immediately.
Wed Dec 14th: Austin Energy presents theirproposal to City Council
Council will set the schedule (after Dec 14th) forapproving the rates.
Rumor is Jan 12th for public hearing.
Rumor is also that the city budget is depending onthe Austin Energy Rate Increase to take effect inOctober 2012.
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Get the Word Out inyour Community
Email your contacts;
Publish information in your newsletter;
Reach out to other congregations;
Discuss the issue with NeighborhoodAssociation.
Send us your bills
What You and Your Congregation Can Do
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Good advice regardless of AustinEnergys Rate Restructuring
Tools to Lower Your Demand
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Think About Your Facility
How many lights? What kind? 60W bulb or 18W CFL w/ equivalent lumens?
1/3rd of energy and demand
Appliances?Avg. Dishwasher = 1.2 KW
5 computers = 1.2 KW
Avg. Water heater = 3.8 KW
Refrigerator = 1.5 KWWhat kind of HVAC?
If all are running at once
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A Bit of Research
Most appliances say somewhere near where itplugs in
Watts = Volts x Amps
Most American appliances = 120VVisit: energystar.gov/congregations How to guides
Portfolio Manager
http://www.energystar.gov/index.cfm?c=small_business.sb_congregationshttp://www.energystar.gov/index.cfm?c=small_business.sb_congregations8/3/2019 Rate Case Presentation
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HVAC
For 1,000 member congregations or less,HVAC = 70% of electric bill
Talk to an HVAC professional, butgenerally
1,000 sq. ft = 2.5 ton unit = 3.5 KW (avg.residential)Small church = 20 ton unit = 90 KWMedium = 40 ton = 150 KW
Large like FBC = 280 ton, but
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New Units vs. Old Units
How old is yours?FBC Case Study:
Old Units (1980s) =
2 chillers: 206 ton large unit & 40 tonmini unit.Avg. Demand 200-270 KW
New Unit = 280 tons, butTechnology to control loadMax Demand Only 154 KW
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Counter-Intuitive, but
Might be cheaper in the long run toreplace it if its older than 15 years
HVAC is prob around 70% of your bill
Look into programmable thermostats
Technology to control HVAC from
computer & even from iphoneBut investments take money
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HB 2077: LoanSTAR Stewards Pilot Program
Texas Impact helped pass HB 2077 byRep. Eddie Rodriguez last session
A low-interest revolving loan fund forEE improvements set up in the StateEnergy Conservation Office
Cost-effective requirement loan paidback through energy savings
Must be up and running by March
2012
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Thank You
Contact Texas Impact with questions regarding the ratecase or your bills.
Texas Impact: 512 472 3903
www.texasimpact.org
http://www.texasimpact.org/http://www.texasimpact.org/