Power Accountants Association Annual Meeting Potential Impacts from Oct 2015...
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Power Accountants Association Annual Meeting Potential Impacts from Oct 2015 Rate Change Material Provided by: Chris Mitchell Chris Mitchell Management Consultants (CMMC) [email protected] 5/14/2015 5/14/2015 1 Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Transcript of Power Accountants Association Annual Meeting Potential Impacts from Oct 2015...
Power Accountants AssociationAnnual Meeting
Potential Impacts from Oct 2015 Rate Change
Material Provided by: Chris MitchellChris Mitchell Management Consultants (CMMC)
5/14/2015
5/14/2015 1Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Definitions of Major Terms Used in Discussion
• Demand (Max KW) – the maximum usage in an individual hour during the month
• Energy (kWh) – the volume of hourly KW used during the month
• Load Factor – kWh in the month / (# of days in a month * Max KW * 24 hours)
• Customer Class – group of customers who are given the same Rate (Sale Price of Product)
• Fixed Cost – a cost that does not vary with sales volume
• Variable Cost – a cost that varies with sales volume
• Coincident Peak Percent – Customer’s KW at LPC’s Max Demand Hour / Customer’s Max KW
5/14/2015 2Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Wholesale Structure Defined and Discussed
Outline of Discussion
• Discussion of Wholesale Structure Types
• Standard Service Rate Components
• Potential Wholesale FCA Structure Change
• Potential Wholesale Standard Service Structure Change
• Other Retail Rate Structure Topics
5/14/2015 3Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Wholesale Structure Types
• Wholesale Structure evolved from End-Use-Rates to Demand & Energy and Time-of-Use Rates in April 2011
• Starting April 2011 there were three types of Wholesale Structures:
• Served by Local Power Companies• Standard Service – Residential, GSA1,2,3 and Outdoor Lighting
• Excluded From Standard Service (still End-Use-Rates) – Example: BCD
• Served by TVA• Direct Serve Industries
5/14/2015 4Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Wholesale Structure – Standard Service Rate Components
• Demand – KW Rate (Base + Environmental (0.50) + Adjustments) multiplied by highest hour KW in Month
• Energy – kWh Rate (Base + Environmental (0.00186) + Adjustments) multiplied by the volume of hourly KW in the month
• Fuel Cost Adjustment – kWh Rate applied to Energy
5/14/2015 5Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Oct 2015 Wholesale FCA Discussion
5/14/2015 6Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
1.8
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Jan
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Monthly Wholesale Fuel Cost Adjustment Comparison(This Information is Considered Business Sensitive, Proprietary and Confidential)
2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2015 Current Forecast Historical Average
Starting October 2015 – there will be separate FCAs for Standard Service and Excluded Customers
Oct 2015 Wholesale FCA Discussion
5/14/2015 7Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Under collection of Fuel Cost in a current month is collected in the future through the deferred account
0
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KW
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Incremental Hours
January
FY12 (01/12) FY13 (01/13) FY14 (01/14) FY15 (01/15)
Oct 2015 Wholesale FCA Discussion
5/14/2015 8Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Residential usage is less in this example during months where under collection is collected --- note: the opposite can happen
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
KW
by
Ho
ur
Incremental Hours
January
FY12 (01/12) FY13 (01/13)
FY14 (01/14) FY15 (01/15)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
KW
by
Ho
ur
Incremental Hours
March
FY12 (03/12) FY13 (03/13)
FY14 (03/14) FY15 (03/15)
Oct 2015 Wholesale FCA Discussion
My opinion of the impact from FCA structure change:
• Increase in Standard Service FCA rate volatility
• Caused by some high load factor customers (BCDs) no longer being included in the FCA for Standard Service.
• Increase in Standard Service FCA rate level
• Caused by some high load factor customers (BCDs) no longer being included in the FCA for Standard Service.
5/14/2015 9Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
TVA Wholesale Rates(without fuel cost)
Monthly Demand (kW) - the maximum usage in an individual hour during the month
Monthly Energy (kWh) - the volume of (kW) used during the month
Energy $/kWh
Demand $/kW Demand & Energy Options Time of Use Options
Month All (Nearly Flat) Seasonal Nearly Flat Modified (New)
Type Calendar Wholesale Options (Expired 9/2012) On-Peak Hours Defined On-Peak Off-Peak On-Peak Off-Peak
Transition October 9.27 0.03362 0.03358 0.03358 0.03358
Transition November 9.27 0.03362 0.03358 0.03358 0.03358
Winter December 9.27 0.03362 0.03481 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.03881 0.03381 0.04281 0.03281
Winter January 9.27 0.03362 0.03481 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.03881 0.03381 0.04281 0.03281
Winter February 9.27 0.03362 0.03481 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.03881 0.03381 0.04281 0.03281
Winter March 9.27 0.03362 0.03481 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.03881 0.03381 0.04281 0.03281
Transition April 9.27 0.03362 0.03189 0.03358 0.03358
Transition May 9.27 0.03362 0.03189 0.03358 0.03358
Summer June 10.13 0.03362 0.03785 12:00 P.M. till 8:00 P.M. (Monday through Friday) 0.04535 0.03435 0.05285 0.03085
Summer July 10.13 0.03362 0.03785 12:00 P.M. till 8:00 P.M. (Monday through Friday) 0.04535 0.03435 0.05285 0.03085
Summer August 10.13 0.03362 0.03785 12:00 P.M. till 8:00 P.M. (Monday through Friday) 0.04535 0.03435 0.05285 0.03085
Summer September 10.13 0.03362 0.03785 12:00 P.M. till 8:00 P.M. (Monday through Friday) 0.04535 0.03435 0.05285 0.03085
Notes: (1) All hours for the following observed Federal Holidays are off-peak:
- New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day
(2) All hours are referred to as Central Standard Time or Central Daylight Time, whichever is then in effect
(3) Rates include: Demand Environmental rate component of $0.50 and Energy Environmental rate component of $0.00186
Current Wholesale Rate Structure
5/14/2015 10Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Current Wholesale Demand Rate – Max kW
5/14/2015 11Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
29
,93
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30
,98
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29
,58
6
18
,58
8 2
2,3
86
26
,10
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,04
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28
,39
6
19
,87
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22
,11
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26
,61
1 3
0,0
35
25
,97
1 29
,07
5
29
,60
2
27
,56
9
18
,87
1
24
,16
0
25
,39
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26
,91
3
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,14
8
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,26
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,88
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,56
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,39
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,45
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,74
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45
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,84
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,12
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,87
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,34
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,25
9
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,79
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,91
3
27
,55
1
22
,12
5
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,99
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,45
9
36
,04
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,61
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,89
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,48
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vera
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KW
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Months
Demand (KW)Standard Service
Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015
Oct 2015 Wholesale Demand Rates
Day-of-Week & Time-of-Day Does Impact Cost
5/14/2015 12Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
TVA Wholesale Demand RatesMax kW - the maximum usage in an individual hour during the month
Max On-Peak kW - the maximum usage in an individual hour during on-peak period
Determination of Wholesale Rate Applied Determination of On-Peak kW
Month Pre-Oct 2015 Oct 2015 Month Weekday (M-F)(3)
Type Calendar Max kW Max kW (2) On-Peak (1,2) Type Calendar Hours
Non-Summer October 9.27 2.75 6.63 Summer October 1 pm - 7 pm
Non-Summer November 9.27 2.75 6.63 Winter November 4 am - 10 am
Non-Summer December 9.27 2.75 6.63 Winter December 4 am - 10 am
Non-Summer January 9.27 2.75 6.63 Winter January 4 am - 10 am
Non-Summer February 9.27 2.75 6.63 Winter February 4 am - 10 am
Non-Summer March 9.27 2.75 6.63 Winter March 4 am - 10 am
Non-Summer April 9.27 2.75 6.63 Summer April 1 pm - 7 pm
Non-Summer May 9.27 2.75 6.63 Summer May 1 pm - 7 pm
Summer June 10.13 2.75 7.49 Summer June 1 pm - 7 pm
Summer July 10.13 2.75 7.49 Summer July 1 pm - 7 pm
Summer August 10.13 2.75 7.49 Summer August 1 pm - 7 pm
Summer September 10.13 2.75 7.49 Summer September 1 pm - 7 pm
Notes: times shown in Central time zone
(1) Oct 2015 On-Peak kW Rate Includes 0.11 revenue Neutral Charge
(2) Oct 2015 Max kW includes Environmental rate component of $0.36 and On-Peak kW includes $0.14
(3) All hours for the following observed Federal Holidays are off-peak:
- New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day
Oct 2015 Wholesale Demand Rate – On-Peak
Day-of-Week & Time-of-Day does Impact Cost
5/14/2015 13Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Hartselle Sevier Co. Hartselle Sevier Co.
Mth & YR Max kW Max On-Peak kW Max kW Max On-Peak kW Mth & YR Max kW Max On-Peak kW Max kW Max On-Peak kW
April 2011 Monday, 11, 13:59 Monday, 11, 13:59 Sunday, 10, 16:59 Monday, 25, 16:59 March 2013 Thursday, 07, 6:59 Thursday, 07, 6:59 Monday, 04, 6:59 Monday, 04, 6:59
May 2011 Tuesday, 31, 15:59 Tuesday, 31, 15:59 Sunday, 29, 16:59 Tuesday, 31, 16:59 April 2013 Wednesday, 17, 13:59 Wednesday, 17, 13:59 Thursday, 04, 19:59 Thursday, 04, 18:59
June 2011 Thursday, 02, 15:59 Thursday, 02, 15:59 Tuesday, 07, 16:59 Tuesday, 07, 16:59 May 2013 Tuesday, 21, 15:59 Tuesday, 21, 15:59 Friday, 31, 15:59 Friday, 31, 15:59
July 2011 Tuesday, 12, 15:59 Tuesday, 12, 15:59 Saturday, 23, 16:59 Wednesday, 20, 16:59 June 2013 Wednesday, 12, 14:59 Wednesday, 12, 14:59 Wednesday, 12, 16:59 Wednesday, 12, 16:59
August 2011 Wednesday, 03, 15:59 Wednesday, 03, 15:59 Friday, 05, 16:59 Friday, 05, 16:59 July 2013 Wednesday, 17, 14:59 Wednesday, 17, 14:59 Friday, 19, 16:59 Friday, 19, 16:59
September 2011 Thursday, 01, 15:59 Thursday, 01, 15:59 Saturday, 03, 15:59 Friday, 02, 16:59 August 2013 Friday, 30, 15:59 Friday, 30, 15:59 Saturday, 31, 16:59 Friday, 09, 15:59
October 2011 Monday, 17, 16:59 Monday, 17, 16:59 Sunday, 30, 7:59 Thursday, 20, 18:59 September 2013 Tuesday, 10, 14:59 Tuesday, 10, 14:59 Sunday, 01, 15:59 Wednesday, 11, 15:59
November 2011 Friday, 18, 6:59 Friday, 18, 6:59 Friday, 18, 6:59 Friday, 18, 6:59 October 2013 Friday, 04, 16:59 Friday, 04, 16:59 Saturday, 26, 7:59 Friday, 25, 18:59
December 2011 Thursday, 01, 6:59 Thursday, 01, 6:59 Thursday, 29, 7:59 Thursday, 29, 7:59 November 2013 Thursday, 28, 7:59 Thursday, 14, 6:59 Thursday, 28, 7:59 Friday, 29, 6:59
January 2012 Wednesday, 04, 6:59 Wednesday, 04, 6:59 Wednesday, 04, 6:59 Wednesday, 04, 6:59 December 2013 Wednesday, 11, 6:59 Wednesday, 11, 6:59 Wednesday, 25, 6:59 Friday, 13, 6:59
February 2012 Monday, 13, 6:59 Monday, 13, 6:59 Sunday, 12, 6:59 Monday, 13, 6:59 January 2014 Tuesday, 07, 6:59 Tuesday, 07, 6:59 Tuesday, 07, 6:59 Tuesday, 07, 6:59
March 2012 Tuesday, 06, 6:59 Tuesday, 06, 6:59 Tuesday, 06, 6:59 Tuesday, 06, 6:59 February 2014 Friday, 07, 7:59 Friday, 07, 7:59 Friday, 28, 6:59 Friday, 28, 6:59
April 2012 Monday, 30, 16:59 Monday, 30, 16:59 Saturday, 28, 16:59 Monday, 30, 15:59 March 2014 Monday, 03, 18:59 Tuesday, 04, 6:59 Wednesday, 26, 6:59 Wednesday, 26, 6:59
May 2012 Tuesday, 29, 16:59 Tuesday, 29, 16:59 Sunday, 27, 16:59 Friday, 25, 16:59 April 2014 Wednesday, 16, 6:59 Tuesday, 29, 13:59 Wednesday, 16, 6:59 Tuesday, 15, 18:59
June 2012 Friday, 29, 16:59 Friday, 29, 16:59 Saturday, 30, 16:59 Friday, 29, 16:59 May 2014 Friday, 23, 14:59 Friday, 23, 14:59 Saturday, 31, 16:59 Wednesday, 28, 15:59
July 2012 Thursday, 05, 16:59 Thursday, 05, 16:59 Sunday, 01, 16:59 Thursday, 05, 15:59 June 2014 Wednesday, 18, 16:59 Wednesday, 18, 16:59 Friday, 20, 15:59 Friday, 20, 15:59
August 2012 Wednesday, 01, 15:59 Wednesday, 01, 15:59 Thursday, 02, 16:59 Thursday, 02, 16:59 July 2014 Monday, 14, 14:59 Monday, 14, 14:59 Wednesday, 02, 15:59 Wednesday, 02, 15:59
September 2012 Friday, 07, 16:59 Friday, 07, 16:59 Saturday, 01, 15:59 Friday, 07, 15:59 August 2014 Friday, 22, 15:59 Friday, 22, 15:59 Friday, 29, 16:59 Friday, 29, 16:59
October 2012 Wednesday, 31, 7:59 Thursday, 04, 16:59 Tuesday, 30, 18:59 Tuesday, 30, 18:59 September 2014 Thursday, 11, 14:59 Thursday, 11, 14:59 Monday, 01, 15:59 Tuesday, 02, 15:59
November 2012 Thursday, 29, 6:59 Thursday, 29, 6:59 Sunday, 25, 6:59 Thursday, 29, 6:59 October 2014 Thursday, 02, 13:59 Thursday, 02, 13:59 Monday, 13, 15:59 Monday, 13, 15:59
December 2012 Thursday, 13, 6:59 Thursday, 13, 6:59 Saturday, 29, 18:59 Monday, 31, 7:59 November 2014 Wednesday, 19, 6:59 Wednesday, 19, 6:59 Wednesday, 19, 6:59 Wednesday, 19, 6:59
January 2013 Friday, 04, 6:59 Friday, 04, 6:59 Saturday, 05, 7:59 Friday, 04, 7:59 December 2014 Thursday, 11, 6:59 Thursday, 11, 6:59 Friday, 12, 6:59 Friday, 12, 6:59
February 2013 Friday, 01, 7:59 Friday, 01, 7:59 Sunday, 17, 7:59 Monday, 18, 6:59 January 2015 Thursday, 08, 6:59 Thursday, 08, 6:59 Thursday, 08, 6:59 Thursday, 08, 6:59
Note: On-Peak kW dates highlighted identifies when the Max kW was outside the On-Peak Period
High Coincident LPC High Coincident LPCLow Coincident LPC Low Coincident LPC
Oct 2015 Wholesale Demand Rate – Financial Impact
Estimate of Financial Impact
5/14/2015 14Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Currently Defined Demand (KW)
Defined as Max hour in the Month
Monthly KW Peak Wholesale Wholesale On-Peak Max-Peak Total
Peak Date KW KW Rate Cost Peak Date KW KW Rate Cost KW Rate Cost Cost Dollar Percent Rolling 12 Mo
FY 2011 April 2011 Monday, 11, 13:59 19,300 9.27 178,911 Monday, 11, 13:59 19,300 6.63 127,959 2.75 53,075 181,034 2,123 1.19%
FY 2011 May 2011 Tuesday, 31, 15:59 26,841 9.27 248,816 Tuesday, 31, 15:59 26,841 6.63 177,956 2.75 73,813 251,769 2,953 1.19%
FY 2011 June 2011 Thursday, 02, 15:59 28,223 10.13 285,899 Thursday, 02, 15:59 28,223 7.49 211,390 2.75 77,613 289,004 3,105 1.09%
FY 2012 July 2011 Tuesday, 12, 15:59 29,935 10.13 303,242 Tuesday, 12, 15:59 29,935 7.49 224,213 2.75 82,321 306,534 3,293 1.09%
FY 2012 August 2011 Wednesday, 03, 15:59 30,982 10.13 313,848 Wednesday, 03, 15:59 30,982 7.49 232,055 2.75 85,201 317,256 3,408 1.09%
FY 2012 September 2011 Thursday, 01, 15:59 29,586 10.13 299,706 Thursday, 01, 15:59 29,586 7.49 221,599 2.75 81,362 302,961 3,254 1.09%
FY 2012 October 2011 Monday, 17, 16:59 18,588 9.27 172,311 Monday, 17, 16:59 18,588 6.63 123,238 2.75 51,117 174,355 2,045 1.19%
FY 2012 November 2011 Friday, 18, 6:59 22,386 9.27 207,518 Friday, 18, 6:59 22,386 6.63 148,419 2.75 61,562 209,981 2,462 1.19%
FY 2012 December 2011 Thursday, 01, 6:59 26,102 9.27 241,966 Thursday, 01, 6:59 26,102 6.63 173,056 2.75 71,781 244,837 2,871 1.19%
FY 2012 January 2012 Wednesday, 04, 6:59 27,041 9.27 250,670 Wednesday, 04, 6:59 27,041 6.63 179,282 2.75 74,363 253,645 2,975 1.19%
FY 2012 February 2012 Monday, 13, 6:59 28,396 9.27 263,231 Monday, 13, 6:59 28,396 6.63 188,265 2.75 78,089 266,354 3,124 1.19%
FY 2012 March 2012 Tuesday, 06, 6:59 19,873 9.27 184,223 Tuesday, 06, 6:59 19,873 6.63 131,758 2.75 54,651 186,409 2,186 1.19% 33,798
FY 2012 April 2012 Monday, 30, 16:59 22,113 9.27 204,988 Monday, 30, 16:59 22,113 6.63 146,609 2.75 60,811 207,420 2,432 1.19% 34,107
FY 2012 May 2012 Tuesday, 29, 16:59 26,611 9.27 246,684 Tuesday, 29, 16:59 26,611 6.63 176,431 2.75 73,180 249,611 2,927 1.19% 34,082
FY 2012 June 2012 Friday, 29, 16:59 30,035 10.13 304,255 Friday, 29, 16:59 30,035 7.49 224,962 2.75 82,596 307,558 3,304 1.09% 34,281
FY 2013 July 2012 Thursday, 05, 16:59 29,075 10.13 294,530 Thursday, 05, 16:59 29,075 7.49 217,772 2.75 79,956 297,728 3,198 1.09% 34,187
FY 2013 August 2012 Wednesday, 01, 15:59 29,602 10.13 299,868 Wednesday, 01, 15:59 29,602 7.49 221,719 2.75 81,406 303,124 3,256 1.09% 34,035
FY 2013 September 2012 Friday, 07, 16:59 27,569 10.13 279,274 Friday, 07, 16:59 27,569 7.49 206,492 2.75 75,815 282,307 3,033 1.09% 33,813
FY 2013 October 2012 Wednesday, 31, 7:59 18,871 9.27 174,934 Thursday, 04, 16:59 18,660 6.63 123,716 2.75 51,895 175,611 677 0.39% 32,445
FY 2013 November 2012 Thursday, 29, 6:59 24,160 9.27 223,963 Thursday, 29, 6:59 24,160 6.63 160,181 2.75 66,440 226,621 2,658 1.19% 32,640
FY 2013 December 2012 Thursday, 13, 6:59 25,393 9.27 235,393 Thursday, 13, 6:59 25,393 6.63 168,356 2.75 69,831 238,186 2,793 1.19% 32,562
FY 2013 January 2013 Friday, 04, 6:59 26,913 9.27 249,484 Friday, 04, 6:59 26,913 6.63 178,433 2.75 74,011 252,444 2,960 1.19% 32,548
FY 2013 February 2013 Friday, 01, 7:59 24,148 9.27 223,852 Friday, 01, 7:59 24,148 6.63 160,101 2.75 66,407 226,508 2,656 1.19% 32,081
FY 2013 March 2013 Thursday, 07, 6:59 25,265 9.27 234,207 Thursday, 07, 6:59 25,265 6.63 167,507 2.75 69,479 236,986 2,779 1.19% 32,674
FY 2013 April 2013 Wednesday, 17, 13:59 20,887 9.27 193,622 Wednesday, 17, 13:59 20,887 6.63 138,481 2.75 57,439 195,920 2,298 1.19% 32,539
FY 2013 May 2013 Tuesday, 21, 15:59 24,237 9.27 224,677 Tuesday, 21, 15:59 24,237 6.63 160,691 2.75 66,652 227,343 2,666 1.19% 32,278
FY 2013 June 2013 Wednesday, 12, 14:59 28,563 10.13 289,343 Wednesday, 12, 14:59 28,563 7.49 213,937 2.75 78,548 292,485 3,142 1.09% 32,116
FY 2014 July 2013 Wednesday, 17, 14:59 28,854 10.13 292,291 Wednesday, 17, 14:59 28,854 7.49 216,116 2.75 79,349 295,465 3,174 1.09% 32,092
FY 2014 August 2013 Friday, 30, 15:59 28,370 10.13 287,388 Friday, 30, 15:59 28,370 7.49 212,491 2.75 78,018 290,509 3,121 1.09% 31,956
FY 2014 September 2013 Tuesday, 10, 14:59 27,450 10.13 278,069 Tuesday, 10, 14:59 27,450 7.49 205,601 2.75 75,488 281,088 3,020 1.09% 31,943
FY 2014 October 2013 Friday, 04, 16:59 22,008 9.27 204,014 Friday, 04, 16:59 22,008 6.63 145,913 2.75 60,522 206,435 2,421 1.19% 33,687
FY 2014 November 2013 Thursday, 28, 7:59 22,748 9.27 210,874 Thursday, 14, 6:59 21,895 6.63 145,164 2.75 62,557 207,721 (3,153) -1.50% 27,877
FY 2014 December 2013 Wednesday, 11, 6:59 26,345 9.27 244,218 Wednesday, 11, 6:59 26,345 6.63 174,667 2.75 72,449 247,116 2,898 1.19% 27,981
FY 2014 January 2014 Tuesday, 07, 6:59 35,843 9.27 332,265 Tuesday, 07, 6:59 35,843 6.63 237,639 2.75 98,568 336,207 3,943 1.19% 28,964
FY 2014 February 2014 Friday, 07, 7:59 27,125 9.27 251,449 Friday, 07, 7:59 27,125 6.63 179,839 2.75 74,594 254,433 2,984 1.19% 29,291
FY 2014 March 2014 Monday, 03, 18:59 26,015 9.27 241,159 Tuesday, 04, 6:59 25,991 6.63 172,320 2.75 71,541 243,862 2,703 1.12% 29,214
FY 2014 April 2014 Wednesday, 16, 6:59 19,870 9.27 184,195 Tuesday, 29, 13:59 17,875 6.63 118,511 2.75 54,643 173,154 (11,041) -5.99% 15,876
FY 2014 May 2014 Friday, 23, 14:59 23,134 9.27 214,452 Friday, 23, 14:59 23,134 6.63 153,378 2.75 63,619 216,997 2,545 1.19% 15,754
FY 2014 June 2014 Wednesday, 18, 16:59 27,348 10.13 277,035 Wednesday, 18, 16:59 27,348 7.49 204,837 2.75 75,207 280,044 3,008 1.09% 15,621
FY 2015 July 2014 Monday, 14, 14:59 27,798 10.13 281,594 Monday, 14, 14:59 27,798 7.49 208,207 2.75 76,445 284,652 3,058 1.09% 15,505
FY 2015 August 2014 Friday, 22, 15:59 27,913 10.13 282,759 Friday, 22, 15:59 27,913 7.49 209,068 2.75 76,761 285,829 3,070 1.09% 15,454
FY 2015 September 2014 Thursday, 11, 14:59 27,551 10.13 279,092 Thursday, 11, 14:59 27,551 7.49 206,357 2.75 75,765 282,122 3,031 1.09% 15,465
FY 2015 October 2014 Thursday, 02, 13:59 22,125 9.27 205,099 Thursday, 02, 13:59 22,125 6.63 146,689 2.75 60,844 207,533 2,434 1.19% 15,478
FY 2015 November 2014 Wednesday, 19, 6:59 27,991 9.27 259,477 Wednesday, 19, 6:59 27,991 6.63 185,580 2.75 76,975 262,556 3,079 1.19% 21,710
FY 2015 December 2014 Thursday, 11, 6:59 25,459 9.27 236,005 Thursday, 11, 6:59 25,459 6.63 168,793 2.75 70,012 238,805 2,800 1.19% 21,613
FY 2015 January 2015 Thursday, 08, 6:59 36,042 9.27 334,109 Thursday, 08, 6:59 36,042 6.63 238,958 2.75 99,116 338,074 3,965 1.19% 21,635
Total 11,524,955$ 8,334,709$ 3,301,881$ 11,636,590$ 111,635$ 0.97%
Analysis of Wholesale Invoice *** Case 6 using Oct 2014 TVA Approved Wholesale Rates ***
Hartselle Utilities
Difference from Current
Proposed October 2015 Defined Demand (KW)
New Summer Defined (13:59-18:59) and New Winter Defined (4:59-9:59)
Time Stamp is shown in Central Time Zone *** Highlighted "Yellow" dates identify On-Peak KW is different than Max KW ***
Standard ServiceMethod Used to Determine 12 Month Financial Impact: 12 Month Rolling
High Coincident LPC
Oct 2015 Wholesale Demand Rate – Financial Impact
Date: September 2012Max Peak Date: Friday 7, 16:59 ; Max Peak KW: 27,569
Cost Formula: Max KW * Max KW Rate
Cost Calculation: 27,569 * 10.13 = $279,274
Max On-Peak Date: Friday 7, 16:59; Max Peak KW: 27,569; Max On-Peak KW: 27,569
Cost Formula: (Max KW * Max KW Rate) + (Max On-Peak KW * On-Peak Rate)
Cost Calculation: (27,569 * 2.75 = $75,815) + (27,569 * 7.49 = $206,492) = $282,307
Financial Impact: $3,033
Date: November 2013Max Peak Date: Thursday 28, 7:59 ; Max Peak KW: 22,748
Cost Formula: Max KW * Max KW Rate
Cost Calculation: 22,748 * 9.27 = $210,874
Max On-Peak Date: Thursday 14, 6:59; Max Peak KW: 22,748; Max On-Peak KW: 21,895
Cost Formula: (Max KW * Max KW Rate) + (Max On-Peak KW * On-Peak Rate)
Cost Calculation: (22,748 * 2.75 = $62,557) + (21,895 * 7.49 = $145,164) = $207,721
Financial Impact: ($3,153)
5/14/2015 15Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Current Wholesale Demand Rate – Coincident Peak
5/14/2015 16Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
98
.4%
99
.9%
94
.3% 10
0.0
%
10
0.0
%
97
.5%
10
0.0
%
10
0.0
%
10
0.0
%
10
0.0
%
99
.8%
10
0.0
%
99
.2%
99
.1%
99
.8%
99
.4%
99
.5%
10
0.0
%
10
0.0
%
10
0.0
%
95
.6%
10
0.0
%
98
.9%
99
.4%
99
.3%
99
.7%
99
.3%
99
.3%
98
.5%
97
.3%
90
.8% 9
8.1
%
93
.7% 10
0.0
%
94
.0% 99
.4%
10
0.0
%
10
0.0
%
96
.7%
96
.1%
97
.0%
96
.9%
98
.7%
99
.7%
97
.9%
97
.5%
10
0.0
%
98
.3%
10
0.0
%
92
.5% 1
00
.0%
96
.5%
98
.1%
98
.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jul
Au
g
Sep
Oct
No
v
De
c
Jan
Feb
Mar
Ap
r
May Jun
FY A
vera
ge
FY A
vera
geW
eig
hte
d
Co
inci
de
nt
Pe
ak t
o T
VA
Pe
rce
nta
ge
Months
Coincident Peak to TVA PercentageStandard Service
Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015
Example of a highly coincident LPC
Current Wholesale Demand Rate – Coincident Peak
5/14/2015 17Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Example of a low coincident LPC9
8.6
%
98
.2%
94
.1%
79
.1%
10
0.0
%
88
.5%
10
0.0
%
96
.3%
10
0.0
%
98
.8%
83
.5%
93
.3%
94
.2%
94
.4%
93
.4%
94
.9%
94
.2%
88
.5%
88
.8%
78
.0%
96
.4%
86
.3%
89
.9%
63
.8%
98
.1%
10
0.0
%
89
.4%
89
.6%9
6.5
%
87
.1%
90
.4%
70
.6%
96
.9%
90
.6% 96
.3%
92
.0%
86
.2%
10
0.0
%
85
.7%
98
.3%
90
.9%
91
.2%9
8.7
%
98
.5%
98
.6%
96
.4%
10
0.0
%
10
0.0
%
10
0.0
%
89
.6%
99
.1%
94
.1%
97
.5%
97
.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jul
Au
g
Sep
Oct
No
v
De
c
Jan
Feb
Mar
Ap
r
May Jun
FY A
vera
ge
FY A
vera
geW
eig
hte
d
Co
inci
de
nt
Pe
ak t
o T
VA
Pe
rce
nta
ge
Months
Coincident Peak to TVA PercentageStandard Service
Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015
Oct 2015 Wholesale Demand Rates
Summer On-Peak Period Reduced Two Hours (from 8 to now 6)
5/15/2015 18Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
TVA Wholesale Energy Rates(without fuel cost)
Monthly Energy (kWh) - the volume of (kW) used during the month
Month Seasonal On-Peak Hours Defined Modified TOU
Type Calendar D&E Pre-Oct 2015 Oct 2015 On-Peak Off-Peak
Transition October 0.03429 0.03429 0.03429
Transition November 0.03429 0.03429 0.03429
Winter December 0.03552 4:00 A.M. till 10:00 A.M. (Monday through Friday) 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.04352 0.03352
Winter January 0.03552 4:00 A.M. till 10:00 A.M. (Monday through Friday) 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.04352 0.03352
Winter February 0.03552 4:00 A.M. till 10:00 A.M. (Monday through Friday) 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.04352 0.03352
Winter March 0.03552 4:00 A.M. till 10:00 A.M. (Monday through Friday) 4:00 A.M. till 10:00 A.M. (Monday through Friday) 0.04352 0.03352
Transition April 0.03429 0.03429 0.03429
Transition May 0.03429 0.03429 0.03429
Summer June 0.03856 12:00 P.M. till 8:00 P.M. (Monday through Friday) 1:00 P.M. till 7:00 P.M. (Monday through Friday) 0.05356 0.03156
Summer July 0.03856 12:00 P.M. till 8:00 P.M. (Monday through Friday) 1:00 P.M. till 7:00 P.M. (Monday through Friday) 0.05356 0.03156
Summer August 0.03856 12:00 P.M. till 8:00 P.M. (Monday through Friday) 1:00 P.M. till 7:00 P.M. (Monday through Friday) 0.05356 0.03156
Summer September 0.03856 12:00 P.M. till 8:00 P.M. (Monday through Friday) 1:00 P.M. till 7:00 P.M. (Monday through Friday) 0.05356 0.03156
Notes: (1) All hours for the following observed Federal Holidays are off-peak:
- New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day
(2) All hours are referred to as Central Standard Time or Central Daylight Time, whichever is then in effect
(3) Rates include: Energy Environmental rate component of $0.00186
Cost of Service Allocation of Wholesale Energy Cost
• Identify Standard Service On & Off Peak kWh by Month and Allocate to Classes
5/15/2015 19Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
28
.2%
33
.3%
28
.9%
0.0
%
0.0
%
18
.6%
19
.5%
20
.2%
18
.7%
0.0
%
0.0
%
31
.1%
30
.4%
19
.3%
28
.4%
32
.9%
26
.6%
0.0
%
0.0
%
17
.8% 19
.7%
20
.2%
21
.1%
0.0
%
0.0
%
29
.0%
29
.2%
19
.7%
31
.3%
31
.2%
29
.3%
0.0
%
0.0
%
19
.3%
21
.0%
20
.4%
21
.4%
0.0
%
0.0
%
30
.4%
30
.6%
20
.5%
30
.8%
29
.7%
30
.3%
0.0
%
30
.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Jul
Au
g
Sep
Oct
No
v
De
c
Jan
Feb
Mar
Ap
r
May Jun
FY A
vera
geSu
mm
er
FY A
vera
ge W
inte
r
Pe
rce
nt
On
-Pe
ak
Months
Percent On-Peak Energy (kWh)Standard Service
Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 Breakeven Percent
Oct 2015 Wholesale Energy Rate – Financial Impact
Estimate of Financial Impact
5/15/2015 20Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Energy
Currently Defined kWh Proposed October 2015 Defined Demand (kWh)
Date On-Peak On-Peak Off-Peak Total On-Peak On-Peak Off-Peak Difference TVA Additional Charge Total Difference from Current
Fiscal Year Month KWH Percent KWH Cost KWH Percent KWH Cost Dollars % kWh Cost Cost Dollar Percent Rolling 12 Mo
FY 2011 April 2011 - 0.0% 7,385,279 247,998 0 20.43% 7,385,279 247,998 - 0.00% $0.00071 5,244 253,241 5,244 2.11%
FY 2011 May 2011 - 0.0% 10,486,947 352,152 0 21.72% 10,486,947 352,152 - 0.00% $0.00071 7,446 359,597 7,446 2.11%
FY 2011 June 2011 4,245,144 32.0% 9,019,248 502,600 3,233,000 24.37% 10,031,392 480,332 (22,267) -4.43% $0.00071 9,418 489,750 (12,849) -2.56%
FY 2012 July 2011 4,034,946 28.2% 10,296,424 530,892 3,073,373 21.45% 11,257,997 509,737 (21,155) -3.98% $0.00071 10,175 519,912 (10,979) -2.07%
FY 2012 August 2011 4,694,617 32.9% 9,576,464 543,544 3,584,570 25.12% 10,686,511 519,123 (24,421) -4.49% $0.00071 10,132 529,256 (14,289) -2.63%
FY 2012 September 2011 2,965,510 28.8% 7,321,315 382,590 2,247,933 21.85% 8,038,892 366,803 (15,787) -4.13% $0.00071 7,304 374,107 (8,483) -2.22%
FY 2012 October 2011 0 0.0% 9,277,241 311,530 0 20.45% 9,277,241 311,530 - 0.00% $0.00071 6,587 318,117 6,587 2.11%
FY 2012 November 2011 0 0.0% 9,574,608 321,515 0 19.78% 9,574,608 321,515 - 0.00% $0.00071 6,798 328,313 6,798 2.11%
FY 2012 December 2011 2,157,947 18.8% 9,334,949 398,661 2,157,947 18.78% 9,334,949 398,661 - 0.00% $0.00071 8,160 406,821 8,160 2.05%
FY 2012 January 2012 2,240,197 19.5% 9,233,841 398,865 2,240,197 19.52% 9,233,841 398,865 - 0.00% $0.00071 8,147 407,012 8,147 2.04%
FY 2012 February 2012 2,100,814 20.4% 8,219,468 359,617 2,100,814 20.36% 8,219,468 359,617 - 0.00% $0.00071 7,327 366,944 7,327 2.04%
FY 2012 March 2012 1,734,811 18.2% 7,785,943 329,724 1,734,811 18.22% 7,785,943 329,724 - 0.00% $0.00071 6,760 336,484 6,760 2.05% 9,867
FY 2012 April 2012 0 0.0% 9,227,837 309,871 0 21.46% 9,227,837 309,871 - 0.00% $0.00071 6,552 316,423 6,552 2.11% 11,176
FY 2012 May 2012 0 0.0% 11,456,916 384,723 0 23.13% 11,456,916 384,723 - 0.00% $0.00071 8,134 392,858 8,134 2.11% 11,864
FY 2012 June 2012 3,918,871 31.4% 8,578,088 471,746 2,989,345 23.92% 9,507,614 451,297 (20,450) -4.33% $0.00071 8,873 460,170 (11,577) -2.45% 13,137
FY 2013 July 2012 4,160,259 29.1% 10,145,026 532,844 3,167,432 22.14% 11,137,853 511,002 (21,842) -4.10% $0.00071 10,157 521,158 (11,685) -2.19% 12,431
FY 2013 August 2012 4,301,925 32.3% 9,001,337 505,048 3,269,760 24.58% 10,033,502 482,340 (22,708) -4.50% $0.00071 9,445 491,786 (13,262) -2.63% 13,457
FY 2013 September 2012 3,005,788 27.9% 7,757,562 398,177 2,282,052 21.20% 8,481,298 382,254 (15,922) -4.00% $0.00071 7,642 389,896 (8,280) -2.08% 13,660
FY 2013 October 2012 0 0.0% 9,599,180 322,340 0 22.18% 9,599,180 322,340 - 0.00% $0.00071 6,815 329,156 6,815 2.11% 13,889
FY 2013 November 2012 0 0.0% 10,161,522 341,224 0 20.41% 10,161,522 341,224 - 0.00% $0.00071 7,215 348,439 7,215 2.11% 14,305
FY 2013 December 2012 2,013,010 17.8% 9,288,470 390,932 2,013,010 17.81% 9,288,470 390,932 - 0.00% $0.00071 8,024 398,956 8,024 2.05% 14,169
FY 2013 January 2013 2,549,973 20.3% 10,007,140 437,499 2,549,973 20.31% 10,007,140 437,499 - 0.00% $0.00071 8,916 446,414 8,916 2.04% 14,938
FY 2013 February 2013 2,196,978 19.9% 8,854,065 384,555 2,196,978 19.88% 8,854,065 384,555 - 0.00% $0.00071 7,846 392,401 7,846 2.04% 15,457
FY 2013 March 2013 2,380,951 20.6% 9,174,596 402,947 2,380,951 20.60% 9,174,596 402,947 - 0.00% $0.00071 8,204 411,151 8,204 2.04% 16,902
FY 2013 April 2013 0 0.0% 9,513,212 319,454 0 21.55% 9,513,212 319,454 - 0.00% $0.00071 6,754 326,208 6,754 2.11% 17,104
FY 2013 May 2013 0 0.0% 10,574,145 355,080 0 22.57% 10,574,145 355,080 - 0.00% $0.00071 7,508 362,587 7,508 2.11% 16,478
FY 2013 June 2013 3,752,593 29.6% 8,929,521 473,800 2,855,590 22.52% 9,826,524 454,066 (19,734) -4.17% $0.00071 9,004 463,070 (10,730) -2.26% 17,325
FY 2014 July 2013 4,069,330 31.1% 9,024,165 493,460 3,098,799 23.67% 9,994,696 472,108 (21,352) -4.33% $0.00071 9,296 481,404 (12,055) -2.44% 16,955
FY 2014 August 2013 4,103,359 30.8% 9,199,401 500,664 3,120,647 23.46% 10,182,113 479,044 (21,620) -4.32% $0.00071 9,445 488,489 (12,175) -2.43% 18,042
FY 2014 September 2013 3,512,161 29.8% 8,264,468 440,577 2,669,975 22.67% 9,106,654 422,048 (18,528) -4.21% $0.00071 8,361 430,410 (10,167) -2.31% 16,156
FY 2014 October 2013 0 0.0% 9,904,943 332,608 0 22.64% 9,904,943 332,608 - 0.00% $0.00071 7,033 339,640 7,033 2.11% 16,373
FY 2014 November 2013 0 0.0% 10,325,590 346,733 0 18.85% 10,325,590 346,733 - 0.00% $0.00071 7,331 354,064 7,331 2.11% 16,490
FY 2014 December 2013 2,382,566 19.6% 9,801,852 423,596 2,382,566 19.55% 9,801,852 423,596 - 0.00% $0.00071 8,651 432,247 8,651 2.04% 17,116
FY 2014 January 2014 3,239,459 21.0% 12,178,150 538,246 3,239,459 21.01% 12,178,150 538,246 - 0.00% $0.00071 10,947 549,193 10,947 2.03% 19,147
FY 2014 February 2014 2,434,255 20.9% 9,201,406 406,109 2,434,255 20.92% 9,201,406 406,109 - 0.00% $0.00071 8,261 414,370 8,261 2.03% 19,562
FY 2014 March 2014 2,190,048 21.1% 8,209,997 363,126 2,190,048 21.06% 8,209,997 363,126 - 0.00% $0.00071 7,384 370,510 7,384 2.03% 18,742
FY 2014 April 2014 0 0.0% 8,990,787 301,911 0 21.04% 8,990,787 301,911 - 0.00% $0.00071 6,383 308,294 6,383 2.11% 18,371
FY 2014 May 2014 0 0.0% 10,558,031 354,539 0 21.92% 10,558,031 354,539 - 0.00% $0.00071 7,496 362,035 7,496 2.11% 18,360
FY 2014 June 2014 3,626,340 30.2% 8,393,423 450,589 2,754,822 22.92% 9,264,941 431,416 (19,173) -4.26% $0.00071 8,534 439,950 (10,639) -2.36% 18,450
FY 2015 July 2014 3,770,390 30.0% 8,790,290 470,446 2,869,749 22.85% 9,690,931 450,631 (19,814) -4.21% $0.00071 8,918 459,550 (10,896) -2.32% 19,609
FY 2015 August 2014 4,021,867 30.2% 9,275,217 498,696 3,061,709 23.03% 10,235,375 477,573 (21,123) -4.24% $0.00071 9,441 487,014 (11,683) -2.34% 20,102
FY 2015 September 2014 3,620,843 30.8% 8,133,624 442,284 2,749,493 23.39% 9,004,974 423,114 (19,170) -4.33% $0.00071 8,346 431,460 (10,824) -2.45% 19,444
FY 2015 October 2014 0 0.0% 9,556,211 320,898 2,191,696 22.93% 7,364,515 320,898 - 0.00% $0.00071 6,785 327,682 6,785 2.11% 19,197
FY 2015 November 2014 0 0.0% 10,658,049 357,897 1,995,022 18.72% 8,663,027 357,897 - 0.00% $0.00071 7,567 365,465 7,567 2.11% 19,433
FY 2015 December 2014 2,229,529 19.8% 9,030,590 391,740 2,229,529 19.80% 9,030,590 391,740 - 0.00% $0.00071 7,995 399,734 7,995 2.04% 18,776
FY 2015 January 2015 2,657,854 20.1% 10,587,762 461,167 2,657,854 20.07% 10,587,762 461,167 - 0.00% $0.00071 9,404 470,572 9,404 2.04% 17,234
Total 18,605,210 18,280,145 (325,065) -1.75% 372,165 18,652,310 47,100 0.25%
Method Used to Determine 12 Month Financial Impact: 12 Month Rolling
Standard Service
Analysis of Wholesale Invoice *** Case 6 using Oct 2014 TVA Approved Wholesale Rates with FCA of 0 ***
Hartselle UtilitiesHigh Coincident LPC
Oct 2015 Wholesale Demand Rate – Financial Impact
Date: June 2011Pre-October Structure On-Peak kWh: 4,245,144; Off-Peak kWh: 9,019,248
Cost Formula: (On-Peak kWh * On-Peak Rate) + (Off-Peak kWh * Off-Peak Rate)
Cost Calculation result: $502,600
Pre-October Structure On-Peak kWh: 3,233,000; Off-Peak kWh: 10,031,392
Cost Formula: (On-Peak kWh * On-Peak Rate) + (Off-Peak kWh * Off-Peak Rate)
+ (All kWh * 0.00071)
Cost Calculation result: reduction of ($22,267) + $9,418 = ($12,849)
All non- summer months show an increase because the 0.00071 is applied to all kWh.
The result is an increase in kWh cost for Standard Service for the FY.
5/14/2015 21Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
Other Retail Rate Structure Topics
• The Residential and GSA 1 may have too wide of usage pattern to be in a class
• Consider developing additional classes based on Load Factor
• Your Residential and GSA 1 classes may not fully address demand cost for low load factor Residential and GSA 1 customers
• Consider having a low load factor retail rate
5/15/2015 22Provided by Chris Mitchell (CMMC) – Contains Business Sensitive Information
