Implementation of 2012-2014 Power Rates Rate Applications Group LADWP Rates & Contracts 2012-13

Implementation ofImplementation of

2012-2014 Power Rates2012-2014 Power Rates

Rate Applications GroupRate Applications Group

LADWP Rates & Contracts LADWP Rates & Contracts

2012-132012-13

2012-2014 Power Rates - Overview2012-2014 Power Rates - Overview

Two year increase for FY 12-13 and FY 13-14Two year increase for FY 12-13 and FY 13-14 FY 12-13: 4.9% general increaseFY 12-13: 4.9% general increase FY 13-14: 6.0% general increaseFY 13-14: 6.0% general increase Overall 2-year system average increase: Overall 2-year system average increase:

11.1%, 1.411.1%, 1.4¢/kwh¢/kwh Impact of rate increases is projected to be Impact of rate increases is projected to be

equal across all rate classes, but the impact equal across all rate classes, but the impact may vary between customers within classes, may vary between customers within classes, depending on consumption levels and depending on consumption levels and patternspatterns

New Ordinance is incremental to existing New Ordinance is incremental to existing rates that are currently in effect, which are rates that are currently in effect, which are cappedcapped

2012-2014 Power Rates - Background2012-2014 Power Rates - Background Purpose: higher costs to DWP to Purpose: higher costs to DWP to

meet legal/regulatory requirements, meet legal/regulatory requirements, and to replace aging infrastructureand to replace aging infrastructure

Rates are the result of an in-depth Rates are the result of an in-depth analysis and coordination between analysis and coordination between DWP staff and outside consultants. DWP staff and outside consultants. Rates reflect extensive review by the Rates reflect extensive review by the independent Ratepayer Advocateindependent Ratepayer Advocate

Extensive public input was solicited Extensive public input was solicited and received through community and received through community outreach in 2011 and in 2012outreach in 2011 and in 2012

2012-2014 Power Rates - 2012-2014 Power Rates - ImplementationImplementation

Projected implementation date is Projected implementation date is November 11, 2012November 11, 2012

Written ordinance shows incremental Written ordinance shows incremental numbers that will be added to existing numbers that will be added to existing capped ratescapped rates

CIS and DWP bills will display the sum total CIS and DWP bills will display the sum total of the capped and incremental ratesof the capped and incremental rates

Several new billing factors have been Several new billing factors have been created, which will be embedded in created, which will be embedded in current line items on CIS and on DWP billscurrent line items on CIS and on DWP bills

2012-2014 Power Rates - 2012-2014 Power Rates - ImplementationImplementation

Approved ordinance includes several new Approved ordinance includes several new billing factors:billing factors:– VEA – Variable Energy AdjustmentVEA – Variable Energy Adjustment– CRPSEA – Capped Renewable Portfolio Standard CRPSEA – Capped Renewable Portfolio Standard

Energy AdjustmentEnergy Adjustment– VRPSEA – Variable Renewable Portfolio Standard VRPSEA – Variable Renewable Portfolio Standard

Energy AdjustmentEnergy Adjustment– IRCA – Incremental Reliability Cost AdjustmentIRCA – Incremental Reliability Cost Adjustment

VEA, CRPSEA and VRPSEA will be embedded VEA, CRPSEA and VRPSEA will be embedded with the ECA on CISwith the ECA on CIS

IRCA will be embedded with the ESA and IRCA will be embedded with the ESA and RCARCA

2012-2014 Power Rates – 2012-2014 Power Rates – Residential Rate R-1AResidential Rate R-1A

Monthly rates through June 30, 2013 High Season (June – Sept) Low Season (Oct – May)

Residential R-1A Capped Incremental Total Capped Incremental Total

Energy Charge - per kwh Zone 1

Tier 1 - first 350 kwh $ 0.07020 $ 0.00161 $ 0.07181 $ 0.07020 $ 0.00161 $ 0.07181

Tier 2 - next 700 kwh $ 0.08520 $ 0.00251 $ 0.08771 $ 0.07020 $ 0.01751 $ 0.08771

Tier 3 - greater than 1050 kwh $ 0.12000 $ 0.00451 $ 0.12451 $ 0.07020 $ 0.01751 $ 0.08771

Zone 2

Tier 1 - first 500 kwh $ 0.07020 $ 0.00161 $ 0.07181 $ 0.07020 $ 0.00161 $ 0.07181

Tier 2 - next 1000 kwh $ 0.08500 $ 0.00251 $ 0.08771 $ 0.07020 $ 0.01751 $ 0.08771

Tier 3 - greater than 1500 kwh $ 0.12000 $ 0.00451 $ 0.12451 $ 0.07020 $ 0.01751 $ 0.08771

charges below are in addition to Energy Charges Elements Only in Capped Ordinance

ECA - per kwh $ 0.05690 $ - $ 0.05690 $ 0.05690 $ - $ 0.05690

ESA - per kwh $ 0.00147 $ - $ 0.00147 $ 0.00147 $ - $ 0.00147

RCA - per kwh $ 0.00300 $ - $ 0.00300 $ 0.00300 $ - $ 0.00300

Minimum Charge - fixed charge per month $10.00 $ - $10.00 $10.00 $ - $10.00

Elements Only in Incremental Ordinance

VEA - per kwh $ - TBD TBD $ - $ (0.00334) $ (0.00334)

CRPSEA - per kwh $ - TBD TBD $ - $ (0.00023) $ (0.00023)

VRPSEA - per kwh $ - TBD TBD $ - $ 0.00432 $ 0.00432

IRCA - per kwh $ - $ 0.00127 $ 0.00127 $ - $ 0.00127 $ 0.00127

2012-2014 Power Rates – before & after (residential rate R1A)2012-2014 Power Rates – before & after (residential rate R1A)

– Example shown hereExample shown hereis for High Seasonis for High Season

– Overall bill formatOverall bill formatwill not changewill not change

– Existing bill showsExisting bill showsline items, billline items, billcalculations, etccalculations, etc

– ECA line itemECA line itemwill now includewill now includeVEA, CRPSEA, VEA, CRPSEA, and VRPSEAand VRPSEA

– ESA line item willESA line item willcontinue to includecontinue to includeRCA, and will nowRCA, and will nowinclude IRCAinclude IRCA

New bill:New bill:Energy 500 x $0.07181Energy 500 x $0.07181

= $35.91= $35.91ECA 500 x $0.05765ECA 500 x $0.05765

= $28.83= $28.83ESA 500 x $0.00574ESA 500 x $0.00574

= $2.87= $2.87Tax $67.60 x 0.1 = $6.76Tax $67.60 x 0.1 = $6.76State (unchanged)= $0.15State (unchanged)= $0.15

TOTAL = $74.51TOTAL = $74.51

2012-2014 Power Rates –2012-2014 Power Rates –Residential Rate R-1B (TOU)Residential Rate R-1B (TOU)

Monthly rates through June 30, 2013 High Season (June – Sept) Low Season (Oct – May)

Residential R-1B Capped Incremental Total Capped Incremental Total

Service Charge $ per month $ 8.00 $ - $ 8.00 $ 8.00 $ - $ 8.00

Energy Charge - per kwh

High Peak Period $ 0.16061 $ 0.00531 $ 0.16592 $ 0.06515 $ 0.00531 $ 0.07046

Low Peak Period $ 0.08144 $ 0.00531 $ 0.08675 $ 0.06515 $ 0.00531 $ 0.07046

Base Period $ 0.04655 $ 0.00531 $ 0.05186 $ 0.05045 $ 0.00531 $ 0.05576

Electric Vehicle Discount $ $ (0.02500) $ - $ (0.02500) $ (0.02500) $ - $ (0.02500)


ECA - per kwh $ 0.05690 $ - $ 0.05690 $ 0.05690 $ - $ 0.05690

ESA - per kwh $ 0.00147 $ - $ 0.00147 $ 0.00147 $ - $ 0.00147

RCA - per kwh $ 0.00300 $ - $ 0.00300 $ 0.00300 $ - $ 0.00300





IRCA - per kwh $ - $ 0.00127 $ 0.00127 $ - $ 0.00127 $ 0.00127

2012-2014 Power Rates –2012-2014 Power Rates –Commercial Rate A-1ACommercial Rate A-1A

Monthly rates through June 30, 2013 High Season Low Season

Small General Service A-1A Capped Incremental Total Capped Incremental Total


Facilities Charge $ per kw $ 5.00 $ 0.29 $ 5.29 $ 5.00 $ 0.29 $ 5.29

Energy Charge $ per kwh $ 0.06558 $ 0.00358 $ 0.06916 $ 0.04268 $ 0.00358 $ 0.04626


ECA - per kwh $ 0.05690 $ - $ 0.05690 $ 0.05690 $ - $ 0.05690

ESA - per kw $ 0.46 $ - $ 0.46 $ 0.46 $ - $ 0.46

RCA - per kw $ 0.96 $ - $ 0.96 $ 0.96 $ - $ 0.96





IRCA - per kw $ - $ 0.36 $ 0.36 $ - $ 0.36 $ 0.36


Primary General Service A-2B Capped Incremental Total Capped Incremental Total



High Peak Demand $ per kw $ 9.00 $ 0.50 $ 9.50 $ 4.25 $ 0.25 $ 4.50

Low Peak Demand $ per kw $ 3.25 $ 0.25 $ 3.50 $ - $ - $ -

Base Demand $ per kw $ - $ - $ - $ - $ - $ -

High Peak Energy $ per kwh $ 0.04679 $ 0.00258 $ 0.04937 $ 0.04045 $ 0.00258 $ 0.04303

Low Peak Energy $ per kwh $ 0.03952 $ 0.00258 $ 0.04210 $ 0.04045 $ 0.00258 $ 0.04303

Base Energy $ per kwh $ 0.01879 $ 0.00258 $ 0.02137 $ 0.02252 $ 0.00258 $ 0.02510

Electric Vehicle Discount $ $ (0.02500) $ - $ (0.02500) $ (0.02500) $ - $ (0.02500)

charges below are in addition to Energy and Demand Charges Elements Only in Capped Ordinance

ECA - per kwh $ 0.05690 $ - $ 0.05690 $ 0.05690 $ - $ 0.05690

ESA - per kw $ 0.46000 $ - $ 0.46000 $ 0.46000 $ - $ 0.46000

RCA - per kw $ 0.96000 $ - $ 0.96000 $ 0.96000 $ - $ 0.96000





IRCA - per kw $ - $ 0.36 $ 0.36 $ - $ 0.36 $ 0.36

for Reactive Energy Charges please refer to attachments

2012-2014 Power Rates – Commercial Rate 2012-2014 Power Rates – Commercial Rate A-2BA-2B

2012-2014 Power Rates – before & after (commercial rate A2B)2012-2014 Power Rates – before & after (commercial rate A2B)

(High Season bill shown here)(High Season bill shown here)

high peakhigh peakDemand 47.2 x $9.50 = $448.40Demand 47.2 x $9.50 = $448.40Energy 2960 x $0.04937 = $146.14Energy 2960 x $0.04937 = $146.14ECA 2960 x $0.05765 = $170.64ECA 2960 x $0.05765 = $170.64Tax $765.18 x 12.5% = $95.65Tax $765.18 x 12.5% = $95.65State 2960 x $0.00029 = $0.86State 2960 x $0.00029 = $0.86Total high peakTotal high peak = $861.69= $861.69

low peaklow peakDemand 48 x $3.50 = $168.00Demand 48 x $3.50 = $168.00Energy 4480 x $0.0421 = $188.61Energy 4480 x $0.0421 = $188.61ECA 4480 x $0.05765 = $258.27ECA 4480 x $0.05765 = $258.27Tax $614.88 x 12.5% = $76.86Tax $614.88 x 12.5% = $76.86State 4480 x $0.00029 = $1.30State 4480 x $0.00029 = $1.30Total low peakTotal low peak = $693.04= $693.04

basebaseEnergy 15,840 x $0.02137 = $338.50Energy 15,840 x $0.02137 = $338.50Service 1 month x $28.00 = $28.00Service 1 month x $28.00 = $28.00Facilities 53.6 x $5.29 = $283.54 Facilities 53.6 x $5.29 = $283.54 ECA 15,840 x $0.05765 = $913.17ECA 15,840 x $0.05765 = $913.17ESA 53.6 x $1.78 = $95.41ESA 53.6 x $1.78 = $95.41Tax $1658.63 x 12.5% = $207.33Tax $1658.63 x 12.5% = $207.33State 15,840 x $0.00029 = $4.59State 15,840 x $0.00029 = $4.59Total baseTotal base = $1870.55= $1870.55TOTAL BILLTOTAL BILL = $3425.28= $3425.28


Subtransmission Service A-3A Capped Incremental Total Capped Incremental Total



High Peak Demand $ per kw $ 9.00 $ 0.35 $ 9.35 $ 4.00

$ 0.15

$ 4.15

Low Peak Demand $ per kw $ 3.00 $ 0.15 $ 3.15 $ - $ - $ -

Base Demand $ per kw $ - $ - $ - $ - $ - $ -

High Peak Energy $ per kwh $ 0.04390 $ 0.00254 $ 0.04644 $ 0.03863 $ 0.00254 $ 0.04117

Low Peak Energy $ per kwh $ 0.03764 $ 0.00254 $ 0.04018 $ 0.03863 $ 0.00254 $ 0.04117

Base Energy $ per kwh $ 0.01755 $ 0.00254 $ 0.02009 $ 0.02197 $ 0.00254 $ 0.02451

Electric Vehicle Discount $ $(0.02500) $ - $(0.02500) $(0.02500) $ - $(0.02500)

charges below are in addition to Energy and Demand Charges Elements Only in Capped Ordinance

ECA - per kwh $ 0.05690 $ - $ 0.05690 $ 0.05690 $ - $ 0.05690

ESA - per kw $ 0.46000 $ - $ 0.46000 $ 0.46000 $ - $ 0.46000

RCA - per kw $ 0.96000 $ - $ 0.96000 $ 0.96000 $ - $ 0.96000


VEA - per kwh $ - TBD TBD $ - $ (0.00334) $(0.00334)

CRPSEA - per kwh $ - TBD TBD $ - $ (0.00023) $(0.00023)


IRCA - per kw $ - $ 0.36 $ 0.36 $ - $ 0.36000 $ 0.36000

for Reactive Energy Charges please refer to attachments

2012-2014 Power Rates – Commercial Rate 2012-2014 Power Rates – Commercial Rate A-3AA-3A

2012-2014 Power Rates – Some 2012-2014 Power Rates – Some Important Points to ConsiderImportant Points to Consider

Certain customers will be impacted moreCertain customers will be impacted more– Residential high kwh usersResidential high kwh users– Commercial users with poor load factors (high demand, Commercial users with poor load factors (high demand,

low consumption)low consumption) In addition to the Ratepayer Advocate, this rate In addition to the Ratepayer Advocate, this rate

action had widespread support, including business action had widespread support, including business representatives (LA Chamber of Commerce, LA representatives (LA Chamber of Commerce, LA Times) and environmental groups (Sierra Club)Times) and environmental groups (Sierra Club)

Even after this rate action, rates are still less than Even after this rate action, rates are still less than or competitive with neighboring utilitiesor competitive with neighboring utilities

Rate action enables DWP to continue and expand Rate action enables DWP to continue and expand efficiency programs, which help customers efficiency programs, which help customers manage their costsmanage their costs

Documents

Implementation of 2012-2014 Power Rates Rate Applications Group LADWP Rates & Contracts 2012-13