Resolution No. 5342
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RESOLtrrION NO. 5342
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON CHANGING THE ENERGY COST ADJUSTMENT
BILLING FACTOR COMPUTATION METHOD WHICH
ESTABLISHES .AN ENERGY COST ADJUSTMENT RATE
CHARGED FOR ELECTRICAL ENERGY DISTRIBUTED
AND SUPPLIED TO ITS ELECTRICAL CONSUMERS
WHEREAS, Ordinance No. 929 provides for an
Adjustment Billing Factor ("ECABF") and for changes in such bill-
ing factor to be made from time to time by resolutions of the
City Council of the City of Vernon when, in the City Council's
opinion, such changes are necessary for the sound
tion of the Light and Power Operating Funds: and
WHEREAS,
fluctuations in the Energy Cost Adjustment ("ECA") rate
and
WHEREAS, Vernon has added additional resources since the
methodology was devised: and
WHEREAS, the methodology
fluctuations and incorporate data from Vernon's resources: and
WHEREAS, the City Council of the City of Vernon deems
necessary that the ECABF rate level be as constant and stable
possible in order to allow the customers to project their future
financial needs: and
WHEREAS, the City Council of the City of
and determines that a revised method of computing the BCA
level may reduce the degree of rate fluctuations, provide a
stable ECA rate ~evel, andinolude dat.afrom. Vernon's resourceS~
NOW, THEREFORE, BE. IT RESOLVED
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. .
OF VERNON AS FOLLOWS:
SECTION 1: That the City
finds and determines
true and correct.
SECTION 2: That the City Council of the
does hereby adopt the revised method of computing
level which is attached hereto and incorporated herein by
reference.
SECTION 3: Tha't the effective da~e of said revised
method of computing the ECABF rate level shall be February 1,
1987, and shall continue until rescinded or
of the City Council of the City of Vernon.
SECTION 4: That the City Clerk
shall certify to the passage of this resolution and thereupon
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 16th day of December, 1986.
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1 STATE OF CALIFORNIA )
) ss.
2 COUNTY OF LOS ANGELES)
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14 (SEAL)
I, BRUCE V. MALKENHORST, City Clerk of the
Vernon, do hereby certify that the foregoing Resolution,
Resolution No. 5342 , was duly adopted by the City
the City of Vernon, and was approved by the Mayor of said Ci,ty
an adjourned
at )fJ/ regular meeting of the City Counc.ilheld on Tuesday,
, 19 86
December 16
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CITY OF VERROB
ENERGY COST ADJUSTMEIft' BILLING FACTOR
COMPU'l'ATIOB MBTBODOLOGY
Attached as Exhibit "A" is a description of .the formula which
is used to calculate the Energy Cost Adjustment Billing Factor
("ECABF").
Attached as Exhibit "B" is the "Computation Sheet" which is
used to compute the ECABF by reducing the formula to a set of
specific computations.
Attached as Exhibit "C" is a textual explanation describing
the entries to be made on the computation sheet and provides
direction for the use of the "Computation Sheet."
ECABF
EQUATION
The ECABF is to be calculated pursuant to the following equation:
ECe + C + CP
ECABF = ------------ - B
Se
Where,
ECABF = Energy Cost Adjustment Billing Factor per Kilowatt-hour to
be Sold
ECe = Estimated Fuel and Energy Cost (including transmission &
dispatching charges for interruptible purchases ) for
the Current Period
C = Correction for Previous Period's Over or Under-recovery
CP = Estimated Correction for the Present Month ( Middle Month )
Over or Under-recovery
Se = Estimated Kilowatt-hour to be Sold in Current Period
B = Energy Cost per Kilowatt-hour included in base Rates =
4.385 cents/kwh
EXHIBIT A
City of'Vernon
Energy cost Adjustment Bllling Factor
Computation Sheet
Date of Cumputation:
For Three Month Period - Ending
Estimated Energy Costs
1. Purchased Power from SCE
(a) Energy Charge
(b) Energy Cost Adjustment
$
$
0.00
0.00
3. Cost of Interruptible Purchases
$
$
$
0.00
2. Generation Fuel Costs (Acct 151)
0.00
0.00
4. Cost of Energy Associated with the purchase of Firm
Power
$ 0.00
5. Total Energy Costs (1+2+3+4)'
$ 0.00
Correction Factor
6. Actual Energy Expenses for or the Previous
Three Month Period (__'_1__)
7. Balance of the Unrecovered ( Over-Recovered)$ 0.00
EnergyExpense~ at the Start of the Previous --------------
Three Month Period
$ 0.00
8. Less: Revenue Billed - Base Rate and ECA
from the Previous Three Month Period
$ 0.00
9. Unrecovered (Over-Recovered) Energy Expenses at the
Termination of the Previous Three Month Period (6+7-8)
$ 0.00
10. Unrecovered (Over-Recovered) Energy Cost Estimate for
the Month of
$ 0.00
11. Total Cost to be Recovered (5+9+10)
$
0.00
Calculation of Factor
-----------------------
12. Estimated KWH Sales 96.74% of Purchases
o
13. Adjustment for Billing Lead or Lag
14. Total KWH Sales
o
o
15. Total Energy Cost per KWh (11/14)
$
$
$
0.00000
16 Less: Amount in Base Rates
0.04385
17. Energy Cost Adjustment Billing Factor (15-16)
0.00000
EXHIBIT B
EXPLANATION COMPUTATION SHEET
ESTIMATED ENERGY COSTS (ECe)
Line 1 through 4 represents the estimated energy costs which are to be
used in computing the period's ECABF. This is an estimate of the costs
the City expects to incur for the three month period to which this ECA
will apply. It is comprised only of fuel or energy cost in
keeping with standards established by the Federal Energy Regulatory
Commission and various state regulatory bodies.
Line1(al is computed by multipling the kwh of energy projected to be
purchased from SCE by SCE's estimated rate.
To calculate item l(b) , the City must use Edison's estimate of the
ECA that they will be charging the City during that period. If Edison
is not able to supply the City with the estimate then the City will
have to use it's best judgement on producing an estimate.
Line 2 would be comprised of estimated fuel costs required to operate
the City's generating units. This charge would be designated on the
billing for operating expenses as being charged to FERC account 151,
Fuel. The generating units at this time are the Vernon Diesels. As
additional generating units are added to the system their fuel cost
will also be included.
Line 3 represents an estimate of the cost of interruptible energy to be
purchased including transmission & dispatching charges during the
period the ECABF will be in effect.
Line 4 represents an estimate of the cost of energy associated with
firm power purchases. It shall include all intergrated and
non-intergrated energy costs.
CORRECTION FACTOR
Line 6 through 9 of the computation sheet are used to calculate the
amount needed to correct for over- or under-recovery of the energy
costs in the previous periods.
Line 6 represents a true-up of the previous period's estimate of energy
costs on Lines 1,2,3 and 4. These amounts can be taken from the
billings of Edison, interruptible energy suppliers, firm power
suppliers, the City's monthly fuel expense account, and any other
billings which are allowed by standards established by the Federal
Energy Regulatory Commission and various state regulatory bodies.
Line 7 represnts the carry-forward of any unrecovered energy expenses
from previous periods. This amount will have to be computed. For an
example, energy expenses for period 2 would be compared to energy
revenues for that period. Any difference would be added to the total
Unrecovered (Over-Recovered) Energy Expense from the end of the first
period and forward to our computation for period 3 on Line 7.
Line 8 is used to calculate the actual energy costs recovered during
the previous three month period.
EXHIBIT C
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Line 9 is the total Unrecovered (Over-Recovered) Energy Expenses at
the expiration of the previous three month period.
Line 10 is the estimated Unrecovered (Over-Recovered) Energy cost for
the middle month. The middle month is defind as the month when the
computations are made. The purpose of this line is to provide the city
with more control in order to staba1ize the total Unrecovered
(Over-Recovered) Energy Expense balance at the end of each period.
Line 11 accumulates the total cost to be recovered in the coming
period.
CALCULATION OF THE ECABF FACTOR
Line 12 An Estimate of the kilowatt hour sales for the coming period is
developed by applying a 1055 factor of 3.26% to all kilowatt hours
estimated to be purchased or generated.
Line 13 An adjustment for the previous period billing of kwh is made.
For example. If the previous period the billing was less then the 96.74%
of the purchased energy then the difference will be a positive number
on Line 13.
Line 15 - Line 11 is divided by Line 14 to determine the estimated
energy cost per kilowatt hour for the subsequent three months.
Line 17 The ECA Billing factor is determined by subtracting Line 16
from Line 15.
EXHIBIT C
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