Sale Of Standby Power

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Sale Of Standby Power

• PUCO Technical Conference
• March 23, 2006
• The Cincinnati Gas Electric Company
• Jim Ziolkowski, Rate Department

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Agenda

• Rider GSS Overview / Definitions
• Rider GSS
• Capacity Reservation / Administrative Charges
• Supplemental Power
• Backup Power
• Maintenance Power
• Demand Calculation Billing Example
• Other Items
• Questions

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Rider GSS

• Rider GSS (Generation Support Service), P.U.C.O.
  Electric No. 19, Sheet No. 98.6.
• Applies to any non-residential customer having
  generation equipment capable of supplying all or
  part of its power requirements for other than
  emergency purposes and who requires supplemental,
  maintenance, or backup power.
• Supplemental, maintenance, and backup power may
  be provided by a CRES.

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Definitions

• Supplemental Power Service a service which
  provides distribution and/or transmission
  capacity to the customer as well as the energy
  requirements, which requirements may be provided
  by the Company or a Certified Supplier, for use
  by a customers facility in addition to the
  electric power which the customer ordinarily
  generates on its own.

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Definitions

• Maintenance Power Service a contracted service
  which provides distribution and/or transmission
  capacity as well as the energy requirements,
  which requirements may be provided by the Company
  or a Certified Supplier, for use by the customer
  during scheduled outages or interruptions of the
  customers own generation.

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Definitions

• Backup Power Service a contracted service which
  provides distribution and/or transmission
  capacity as well as the energy requirements,
  which requirements may be provided by the Company
  or a Certified Supplier, for use by the customer
  to replace energy generated by the customers own
  generation during an unscheduled outage or other
  interruption on the part of the customers own
  generation.

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Capacity Reservation Charge

• Monthly Administrative Charge - 75
• Distribution Reservation Charge
• Charges vary according to base rate schedule
  (Rate DS, DP, TS)
• Transmission Cost Recovery Reservation Charge
• Rates vary according to base rate schedule (Rate
  DS, DP, TS). Rates obtained from Rider TCR.
• Charges are based on the greater of the
  contracted demand for Maintenance Power or Backup
  Power, including interruptible Backup Power. For
  shoppers, only the Monthly Distribution
  Reservation Charge applies.

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Supplemental Power

• Billed under standard tariff (Rate DS, Rate DP,
  or Rate TS)
• All power not specifically identified and
  contracted by the customer as Maintenance Power
  or Backup Power is Supplemental Power.

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Backup Power

• Notification
• The customer must notify the Company of the
  outage within one hour of the beginning and end
  of the outage.
• Following the outage, the customer must send the
  dates and times of the outage in written form.
• The customer may elect Interruptible Backup
  Service
• One hour notice
• Penalty for non-compliance
• Billing of backup service
• No demand ratchet
• Generation-related demand charges prorated by the
  number of days that backup power was taken.
• Distribution, transmission, and ancillary
  services charges are replaced by the monthly
  Capacity Reservation charges.
• For Interruptible Backup Service,
  generation-related demand charges reduced by
  fifty percent.

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Maintenance Power

• The customer must submit Maintenance Power
  requirements for each generating unit at least
  sixty (60) days prior to the beginning of each
  calendar year.
• For each generating unit, the customer may elect
  Maintenance Power Service for up to thirty (30)
  days in any twelve month period with no more than
  two (2) days consecutively during the summer
  billing periods of June through September and
  those must be during the Companys off-peak
  periods.
• Billing is similar to Backup Power, but
  generation-related demand charges are reduced by
  fifty percent.

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Rider GSS
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Example Backup Power

• Transmission Service customer CGE Rate TS
• Customer has 7,200 kVA generator and continuously
  operates it
• Customer purchases supplemental power from CGE
• 8,900 kVA
• 6,413,162 kWh
• With generation operating, CGE Rate TS/GSS bill
  is 389,505
• Includes 26,549 of capacity reservation demand
  charges.

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Example Backup Power

• Assume that the generation unit undergoes an
  unscheduled outage for 12 hours.
• During this outage period, peak demand increases
  by 7,200 kVA (95 power factor) with an 80 load
  factor. Incremental kWh purchased from CGE is
  65,664 (0.95 X 7,200 X 12 X 0.8)
• Total monthly bill is now 394,206
• The outage caused the bill to increase by 4,701.
  This equates to 7.2 cents per kWh of incremental
  usage during the backup period.
• 2,277 of the 4,701 increase is due to prorated
  (1/30) demand charges associated with the 7,200
  kVA backup demand.

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Other Items

• Five-year service agreement
• Interval metering required
• The customer must adhere to the Companys
  interconnection requirements
• Changes in contracted demand levels may be
  requested by the customer once each year at the
  contract anniversary date
• Manual billing process bills calculated outside
  of the Companys normal billing system

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Standby Power Rider GSS
Questions?