Presentation to Congregations

8/3/2019 Presentation to Congregations

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What it means forAustins Faith

Community

The Austin Energy Rate Review

12/15/11Texas Impact


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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 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 the

board, but



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Cost Allocation Methodology


So congregations arent paying their true cost ofservice?Also not a science, but an art. Outcome depends on methodology

Different methodologies existAverage Excess and Demand (AED) Baseload, Intermediate, Peak (BIP) 4CP

Austin Energy picked AEDAED favors high load factor users over low load factor users BIP favors low load factor users over high load factor users


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The General Fund Transfer

Like other Municipally owned utilities Austin Energy transfers roughly 10% of gross revenues to the City $101 million in FY 2010

3 main components of Citys General Revenue Fund Sales tax Property tax General Fund Transfer

An issue to be aware of City budget is dependent on rates taking effect in October 2012 GFTs have potential to be a cash cow for city governments Tax Justice: regressive form of revenue



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Projected Increase in Annual Electric Costs by Customer TypeUnder Austin Energys Proposed Rate Plan

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

WorshipFacilities

Residential SmallCommercial


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Faith Community as Part of Larger Community

Total Austin Energy Revenue = $1.004 Billion (FY 2009)

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%.12/15/11Texas Impact


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Texas Impacts Goals

We want to pay our fair share80% is not fair.Our Goals Make it Affordable: Protect low-income ratepayers Make it Fair: Negotiate the most fair increases for Houses of

Worship

Make it Green: Protect the environment with a more greendesign



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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 newfixed delivery charge quadruples fixed chargesfrom $6 to $25 a month.



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Inadequate Low-Income Programming (CAP)

Customer Assistance Program (CAP) Fixed Charges Currently CAP participants exempt from fixed customer charge

No guarantee CAP 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 issue12/15/11Texas Impact


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Inadequate Low-Income Programming (EE)

Proposal raises roughly $28 million for energyefficiency and solar programsAll ratepayer pay the charge on the billAustin Energy needs to commit to providing green programs to

low and moderate income families.

Its just Equity

Weatherization saves families $ Unfair to make poor people pay for rich peoples solar panels



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Houses of Worship

All Houses of Worship will bebilled in the Commercial Class

621 will be charged based onpeak demand for the first time

For those who have not paiddemand charges in the past theywill phased in over 3 years

(energy (kWh) charges willdecrease as demand (kW)charges increase)



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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 ChargeDemand Charge; andRegulatory Charge

All could be based on energy, but AE chose demand12/15/11Texas Impact


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KW Demand vs. KWH Consumption

Example: A 60 Watt Light Bulb Needs 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/hour Or .060 kwh Measure of total consumption (in kwh)



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Put Another Way: Two Different Measurements

Measure #1 = Total KWHConsumption Over billing cycleBasis for the energy charge

Measure #2 = Peak KWHighest peak in any moment over billing cycleBasis 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 KWh Hypo: Utility charges $0.10/KWh Then 21.6 KWh x $0.10 = $2.16

This is how homes and most worship facilities arecurrently billed



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Proposed Commercial Rates(Add a Demand Charge)

Back to Light Bulb Example1 Light Bulb = 60W or .06 KW300 bulbs = 18 KW

18 KW x $15 per KW = $270

Just for flipping the switch one time12/15/11Texas Impact


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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

ReadDate KWHUsage KWDemand Avg.LF% CurrentBill TotalProjectedBill %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%

TotalAnnual 655,800 $70,912.68 $75,916.10 7.06%



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A Church w/ DG Solar Panels

ReadDate KWHUsage KWDemand Avg.LF% CurrentBill ProjectedBill %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%

TotalAnnual 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 CenterRead

Date

KWH

Usage

KW

Demand

Avg.

LF% CurrentBill

Projected

Bill %Inc.

KWH

Usage

KW

Demand

Avg.

LF% CurrentBill

Projected

Bill %Inc.

11/28/10 45,900 177 32.7% $4,473.03 $4,924.29 10.1% 22,400 168 15.9% $2,179.66 $3,584.82 64.5%

12/28/10 46,800 159 40.9% $4,218.76 $4,717.48 11.8% 23,200 200 16.1% $2,088.14 $4,076.35 95.2%

1/27/11 45,300 150 41.9% $4,166.24 $4,513.43 8.3% 26,800 208 17.9% $2,462.20 $4,374.71 77.7%

2/24/11 39,900 156 38.1% $3,668.84 $4,319.16 17.7% 27,200 212 19.1% $2,499.04 $4,451.63 78.13%

3/29/11 50,400 168 37.9% $4,635.99 $5,029.90 8.5% 22,400 164 17.2% $2,056.91 $3,528.54 71.55%

4/27/11 48,300 177 39.2% $5,302.97 $5,048.15 -4.8% 21,600 172 18.0% $2,363.03 $3,599.82 52.34%

5/30/11 57,600 177 41.1% $6,326.99 $5,895.21 -6.8% 26,000 180 18.2% $2,847.51 $4,205.26 47.68%

6/28/11 59,400 276 32.0% $6,525.18 $7,485.97 14.7% 28,800 172 24.9% $3,155.82 $4,238.45 34.31%

7/27/11 64,200 255 36.2% $7,053.71 $7,433.07 5.4% 33,600 188 25.7% $3,684.35 $4,743.14 28.74%

8/29/11 77,100 240 40.6% $8,474.14 $7,915.36 -6.6% 44,800 212 26.7% $4,917.58 $5,719.81 16.31%

10/3/11 69,600 213 37.8% $7,648.31 $6,653.97 -13.0% 34,800 204 19.7% $3,816.48 $4,731.31 23.97%

11/2/11 50,100 144 48.3% $4,635.42 $4,676.74 0.9% 31,200 144 30.1% $2,884.33 $3,701.31 28.32%

Total 654,600 191 38.4% $67,129.58 $68,612.74 2.2% 342,800 185 20.6% $34,955.05 $50,955.14 45.77%



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Consumption Curve for Current Worship Facility RateClass (E01C)



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Commercial Rate Design is not Green

For low load factor users like worship facilities:Value of energy efficiency cut in halfValue of DG solar panels cut in halfValue of choosing Green Choice cut in half

Green Choice Customers: Demand charges go to payfor coal, gas and nuclear so-called brown power

So who is this really benefiting?



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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 theirattention



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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 of

economic 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 their

proposal 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

on the Austin Energy Rate Increase to take effectin October 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 ADVICEREGARDLESS OF AUSTIN

ENERGYS 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 KWAvg. 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 whereit plugs in

Watts = Volts x AmpsMost American appliances = 120VVisit: energystar.gov/congregations How to guides Portfolio Manager



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HVAC

For 1,000 member congregations or less,HVAC = 70% of electric bill

Talk to an HVAC professional, but generally1,000 sq. ft = 2.5 ton unit = 3.5 KW (avg. residential)Small church = 20 ton unit = 90 KWMedium = 40 ton = 150 KWLarge 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 ton mini

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 billLook into programmable thermostatsTechnology to control HVAC from

computer & even from smart phonesBut 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 savingsMust be up and running by March 2012



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Thank You

Contact Texas Impact with questions regarding therate case or your bills.

Texas Impact: 512 472 3903www.texasimpact.org

12/15/11T I t

Presentation to Congregations

Documents

Transcript of Presentation to Congregations