Power Rates - Review

1
Power Rates - Review

• Rate Applications Group
• LADWP Rates Contracts
• 2012-13

2
Power Rates - Introduction

• Rates are designed to reflect DWP costs
• Rates are set by ordinance
• Designed to reflect the costs incurred for all
  aspects of providing electric service for the
  city
• Reviewed by the independent Ratepayer Advocate
• Submitted to the Board of Water and Power
  Commissioners
• Approved by the Los Angeles City Council
• Rates are applied based on DWP rules and policies

3
Residential Rates - overview

• Designed to encourage conservation
• Bill consists of kwh charges and taxes
• Standard rate R-1A
• Tiered rates are now in effect year-round
• Tier allocation determined by Zone
• TOU mandatory if monthly usage exceeds 3000 kwh
• Optional TOU rate R-1B
• Peak rates are higher June September
• All 3 rates (base, low peak and high peak) are
  lower than the standard rate October - May
• Not recommended if 2 month consumption averages
  less than 2000 kwh, or if summer usage is higher
  due to high AC usage
• Tiered rates not in effect
• Recommended for customers who can control their
  energy usage, high kwh users and solar customers
• Lifeline, Low Income discounts not available

4
Residential TOU some important points to
remember

• Meter availability is limited, and DWP has
  discretion over which customers will receive them
• Not every customer who requests a TOU meter will
  receive it
• Customers can opt out of the TOU rate at any
  time, but they cannot return to the TOU rate
  until 12 months have elapsed
• After a TOU meter has been installed, it will
  remain at the customers location on a permanent
  basis, and the old meter cannot be returned

5
Solar net metering some important points to
remember

• A net meter records the net difference between
  energy sent from DWP to the customer, and energy
  sent back to DWP
• DWP cannot read

6
Residential Rates Q A

• Q why are my rates so high?
• A DWP residential electric rates are among the
  lowest in CA
• Q why is my bill so high?
• A The bill is based on consumption as recorded
  by the electric meter. The usage should be
  analyzed to check for consistency, seasonal
  variations, or anything that may appear unusual
• Q why are there so many line items?
• A Every line item represents a specific cost
  that is incurred by DWP as it provides electric
  service
• Q why did my rate go up in the summer?
• A Seasonal rates are in effect June September.
  This is not an increase it is simply a seasonal
  variation
• Q I have solar why do I still get a bill?
• A All customers receive an electric bill, even
  if there is no consumption. Every customer
  incurs costs of service (for billing, meter
  reading, etc), even if the usage is low or
  negative
• Q why dont my regular and solar bills agree?
• A The solar statement supersedes the regular
  bill because it shows credits and numbers that
  the regular bill is unable to display
• Q I have solar, so why am I not on TOU?
• A The TOU rate is optional, not mandatory.
  Customers must request it in writing

7
Commercial Rates - overview

• Rate is determined based on kw demand and the
  service voltage
• A1 demand is less than 30 kw
• A2 demand is greater than 30 kw, service voltage
  is 4.8 kv
• A3 demand is greater than 30 kw, service voltage
  is 34.5 kv
• A4 demand is greater than 80 Mw, service voltage
  is 138 kv
• CG, XRT eligibility requires analysis and special
  DWP approval
• TOU is optional for A1, mandatory for A2 and A3
• Demand meters are installed at DWPs discretion
• There is no separate solar commercial rate

8
Commercial Rates - components

• The electric bill consists of service charges, kw
  charges, kwh (and kvar) charges, and taxes.
  (Please note these terms are defined and
  explained in the ordinance, which is posted on
  the DWP website)
• Kwh charges
• Energy charges
• ECA, VRPSEA, CRPSEA, VEA
• State tax
• Kw charges
• Facilities
• Demand
• ESA, RCA, IRCA
• Reactive (Kvar) charges (only with minimum 250
  kw)
• Nonexistent on Rate A1
• Per kvar when kvar is metered
• Per kwh when kvar is unmetered

9
Commercial Rates Q A

• Q why is my bill so high?
• A The bill is based on kwh usage and kw demand.
  Billing history should be analyzed to determine
  if there are any inconsistencies or any other
  information that may indicate there is a possible
  error
• Q why is the commercial rate so high?
• A DWP commercial rates are competitive with
  those of neighboring utilities
• Q why is my demand charge so high?
• A Demand is a major component of the bill. A
  relatively high demand and low kwh usage will
  have disproportionally high demand charges
• Q why do I have to pay a facilities charge?
• A Facilities represents another main component
  of the bill it is not optional
• Q why is the facilities charge for a whole year?
• A This is a rate ordinance requirement. The kw
  read helps DWP determine the service size and
  transformer requirements of equipment that serves
  multiple customers
• Q why are my reads multiplied by a k constant?
• A A meter with a k multiplier is designed to
  read higher volumes of kwh and kw. This provides
  DWP with an opportunity to bill more accurately
• Q why am I being billed on the A2 rate, even
  though I havent exceeded 30 kw?
• A This can be corrected retroactively by Rate
  Applications
• Q where are my commercial solar credits?
• A These will be present if the net energy kwh
  total is negative. The primary benefit provided
  by a commercial solar installation is to benefit
  a customer in a similar manner as any other
  energy efficiency project by reducing kwh usage

10
Power rates General Q A

• Q there is no way this bill is correct. How can
  I challenge the meter reads?
• A The DWP representative should try to help the
  customer determine why the reads may be
  relatively high, as well as check for historical
  consistency. The customer may also request a
  field investigation
• Q my bill went up when you replaced my meter.
  How can I get my old meter back?
• A Meters dont use energy they are simply
  recording devices. In most cases, the old meter
  is no longer available
• Q why are my taxes, sewer charges, and trash
  fees so high?
• A These bill components are controlled by the
  City Bureau of Sanitation. DWP is only the
  billing agent
• Q why do I have to pay a cost adjustment?
• A The term adjustment indicates that this
  particular billing component may be adjusted
  quarterly. The ECA is not a surcharge or a bill
  correction. It is a main component of the bill
  that represents certain variable costs and DWP
  programs
• Q my service is a residence. Why am I on the
  commercial electric rate?
• A The A1 rate applies to common area meters
  serving 2 or more units. This determination is
  made by providing a meter survey in the field
• Q why havent I received the TOU meter I
  requested?
• A TOU meters are installed based on
  availability. When TOU is optional and not
  mandatory, DWP has the discretion to determine
  meter installation priorities
• Q how can I lower my electric bill?
• A By identifying energy usage and demand
  characteristics in order to manage costs, and by
  using electricity as efficiently as possible.
  There is a lot of valuable and useful energy
  efficiency information on the DWP website

11
Power Rates Where to find basic billing
information

• OnDemand displays the bill exactly as the
  customer sees it
• CIS displays all billing information
• CUSE shows kwh history, meter number, rate code
• DUSE shows kw demand
• EHIS shows the electric bill calculation
• MTRD shows the meter reads as recorded
• AJMT and POOE show any adjustments, comments
• Other databases (WMBA, WMIS) show meter
  installations and removals

12
Power Rates Review - Summary

• Rates reflect DWP costs
• Rates are set by ordinance and undergo an
  extensive approval process
• Rates are applied based on requirements outlined
  in the current ordinance and on DWP rules,
  policies and procedures
• Rates are competitive with those of neighboring
  utilities
• Rates reflect DWP commitment to promoting energy
  efficiency