by Tracy McCue, Sumner Newscow — The Wellington City Council will be discussing and voting on an ordinance that will restructure the electrical rates for city electric customers. The meeting starts at 6:30 p.m. at the Wellington Council Chambers.

According to tonight’s agenda, the ordinance will be “fixing charges and rates for services of the electrical system of the city of Wellington, repealing Ordinance No. 4055 and Sections 38-453 and 38-454 of article VI of the code of the city of Wellington.”

If passed the new electric rates will go into effect in January, 2016.

The chart below shows how the effects will be made for city residential.

The full chart including city commercial, city industrial, not-for-profit, public building and city commercial can be found here. 

The legal notice for this ordinance is as follows: 

SECTION I

Section 38-453 of Article VI of Chapter 38 of the Code of the City of Wellington, Kansas is amended to read as follows:

SAME; RATES AND CHARGES. Customers taking electric service from the City of Wellington shall be charged for such service in accordance with the below rate schedule.

The current rate being charged to Customers for electric service shall remain in effect but commencing for all bills for electric service with a beginning billing cycle date on or after January 1, 2016, the following service types and rates are effective.

Rate Schedule:
A. Base Rates Service Type
1. Residential Service

City Residential-Single Phase City Residential-Three Phase Rural Residential-Single Phase Rural Residential-Three Phase

Meter Charge $17.75/meter $22.50/meter $22.50/meter $27.50/meter

Rate $0.058/kWh $0.058/kWh $0.068/kWh $0.068/kWh.

Residential Service shall be defined as service to a private house, apartment, flat, or other living quarters occupied by persons constituting a distinct household. It shall include any private garage adjacent to or connected with the residence and used exclusively by the resident. City Residential Service shall include any customers residing within the city limits. Rural Residential Service shall include customers residing outside the corporate limits of the city.

2. Commercial Service

City Commercial-Single Phase City Commercial-Three Phase Rural Commercial-Single Phase Rural Commercial-Three Phase

Meter Charge $30.00/meter $35.00/meter $35.00/meter $40.00 meter

Rate $0.044/kWh $0.044/kWh $0.053/kWh $0.053/kWh

City Commercial Service shall include any business operating within the city limits. Rural Commercial Service shall include any business operating outside the corporate limits of the city.

Notwithstanding the provisions of ordinances and codes of the city relating to electric rates for commercial electric service within the city, any business or commercial enterprise not having had a place of business in the city before October 15, 2002, or any business or commercial enterprise relocating from one site to another site within the city and/or expanding the square footage of its business property by more than 25 percent that is eligible for electric service at the commercial rate shall be given a credit on its billings in the amount below. Thereafter, no further credits shall be given the business.

Commercial customers will be authorized a $.01 discount from the above rates during the first year that the customer takes service and $.005 from the above rates during the second year the customer takes service.

3. Industrial Service

Meter Charge City Industrial $50.00/meter Rural Industrial $55.00/meter

Rate $0.024/kWh $0.027/kWh

Industrial Service shall be defined as service to any customer engaged in manufacturing that entails producing or processing products that are not normally sold to an end user. An Industrial Service customer must have an estimated average monthly peak of 500 kW, and employ at least 50 people at their facilities, which shall be reviewed annually. Qualification for the Industrial Service rate shall be approved by the City Manager contingent upon the estimated average peak monthly demand. The City may require direct reimbursement of any improvements installed if warranted by special circumstances or unusually large investments by the City.

4. Interdepartmental/Other Service

Meter Charge Rate $20.00/meter $0.024/kWh

Interdepartmental/Other Service shall be defined as service to any institution or organization as directed by the City Council of the City of Wellington.

5. Economic Development Service

Economic Development Service may be available for use by customers with an estimated monthly peak demand of at least 1000 kW. Rates and other terms and conditions of this service will be negotiated between the City and the customer and shall be memorialized in a written contract.

B. Power Supply Monthly Cost Adjustment

An electrical power supply monthly cost adjustment, PSMCA shall be charged to our customers for the fluctuating cost of generating and purchasing electric energy.

The power supply monthly cost adjustment shall be computed based on the formula: PSMCA = (A/B) x 1.15 (dollars per kilowatt hour)

Where:
A = Total purchased energy costs and generated energy fuel costs for the preceding 3 months.
B = Total kilowatts-hours generated and purchased for the preceding 3 months.
1.15 = A factor applied to compensate for transmission, distribution line losses and interdepartmental usage.

The City Manager shall have the authority to adjust the power supply monthly cost adjustment, if needed.

SECTION II

Section 38-453 and Section 38-454 of Article VI of Chapter 38 and any amendments or revisions thereto of the Code of Wellington, Kansas are hereby repealed in their entirety.

SECTION III

For all bills for electric service with a beginning billing cycle date on or after January 1, 2017, and annually thereafter, a standard escalator of 2.25% will take effect on the existing rates. The governing body may take action, by resolution, to adjust or eliminate the escalator for that particular year.

SECTION IV

This ordinance shall take effect and be in force from and after its passage and approval and after its publication in the official city newspaper as provided by law.

PASSED by the Governing Body this sixth day of October 2015.

Follow us on Twitter.