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What it means forAustins Faith
Community
The Austin Energy Rate Review
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The Big Picture
No rate review since 1994
Austin Energy says it requires = $1.136 billion.(This is called Revenue Requirement)
Current revenues $1.004 billion.
An additional $131 million or 13.2% increase
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The Revenue Requirement
Really complicated, but know: Its an art not a science Gets litigated in what is known as a rate case. If it shrinks, all customers benefit.
City Council can shrink itPublic Utility Commission (state) can shrink it in a rate case.
Texas Impact believes it is overinflated They could just increase everyone 13.2% across the
board, but
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Cost Allocation Methodology
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So congregations arent paying their true cost ofservice?Also not a science, but an art. Outcome depends on methodology
Different methodologies existAverage Excess and Demand (AED) Baseload, Intermediate, Peak (BIP) 4CP
Austin Energy picked AEDAED favors high load factor users over low load factor users BIP favors low load factor users over high load factor users
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The General Fund Transfer
Like other Municipally owned utilities Austin Energy transfers roughly 10% of gross revenues to the City $101 million in FY 2010
3 main components of Citys General Revenue Fund Sales tax Property tax General Fund Transfer
An issue to be aware of City budget is dependent on rates taking effect in October 2012 GFTs have potential to be a cash cow for city governments Tax Justice: regressive form of revenue
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Projected Increase in Annual Electric Costs by Customer TypeUnder Austin Energys Proposed Rate Plan
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
WorshipFacilities
Residential SmallCommercial
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Faith Community as Part of Larger Community
Total Austin Energy Revenue = $1.004 Billion (FY 2009)
Austin Faith Community = Currently, $5 millionannually in electric bills; or 1/2 of 1% of total revenue
Projected Increase = $9 million or an additional $4million annually from the faith community
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Texas Impacts Goals
We want to pay our fair share80% is not fair.Our Goals Make it Affordable: Protect low-income ratepayers Make it Fair: Negotiate the most fair increases for Houses of
Worship
Make it Green: Protect the environment with a more greendesign
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Low-Income Customers
Faith Community interconnected with low-incomecommunity If faith communitys rates go up, then less money for
ministries that benefit the community.
If low income rates go up, then the fewer families we can helpwith our limited benevolence funds.
Fixed Charge = a customer owes regardless of usage
The new fixed customer charge added to the newfixed delivery charge quadruples fixed chargesfrom $6 to $25 a month.
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Inadequate Low-Income Programming (CAP)
Customer Assistance Program (CAP) Fixed Charges Currently CAP participants exempt from fixed customer charge
No guarantee CAP will continue to do so Inadequate Funding Over 50,000 families in Austin on food stamps Cap currently covers less than 10,000 customers Proposal doubles funding, (from $3.1 mil to $7.7 mil) but at
most covers 26,000 customers only the Citys need.
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Inadequate Low-Income Programming (EE)
Proposal raises roughly $28 million for energyefficiency and solar programsAll ratepayer pay the charge on the billAustin Energy needs to commit to providing green programs to
low and moderate income families.
Its just Equity
Weatherization saves families $ Unfair to make poor people pay for rich peoples solar panels
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Houses of Worship
All Houses of Worship will bebilled in the Commercial Class
621 will be charged based onpeak demand for the first time
For those who have not paiddemand charges in the past theywill phased in over 3 years
(energy (kWh) charges willdecrease as demand (kW)charges increase)
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Case: El Paso Electric
Problem: Houses of Worship were assessed demandcharges for the first time; bills skyrocketed
Reaction: Religious Leaders filed complaints in Texasand New Mexico with regulatory authorities
Solution: An agreement was reached to implement a20% cap for the energy portion of their bill per facility. Customers who are: Off-peak users, with low load factors, Charitable organizations, and Recently reassigned a rate class with demand charges
This solution was approved by the El Paso CityCouncil and the Public Utility Commission
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Austins Design is not Green
Complicated case to make
Must understand the nuances of the rate design
Were going to have to examine the structure of therate so lets circle back to this
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WHAT?! 80%?! WHY?!
Rate Design 101
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80%?! Why?
Short Answer: Demand Charges Three basic types of charges on a bill Fixed (flat fee everyone pays regardless of usage)Harms very green & low-income customersRelatively insignificant for faith community
Energy (kwh)(measured like a house) Demand (kW)(measurement of peak)Delivery ChargeDemand Charge; andRegulatory Charge
All could be based on energy, but AE chose demand12/15/11Texas Impact
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KW Demand vs. KWH Consumption
Example: A 60 Watt Light Bulb Needs continuous 60W to run This is the Demand (measured in KW) Under 60W, and lights go outAt any one moment in time
A 60W Bulb Run for 1 Hour = 60 Watt/hour Or .060 kwh Measure of total consumption (in kwh)
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Put Another Way: Two Different Measurements
Measure #1 = Total KWHConsumption Over billing cycleBasis for the energy charge
Measure #2 = Peak KWHighest peak in any moment over billing cycleBasis for the demand charge
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Current Electric Rates(Residential & General Service Non-Demand)
So run that one light bulb for 360 hours for thatbilling cycle
60W x 360 hr = 21,600 Watt/hours; or 21.6 KWh Hypo: Utility charges $0.10/KWh Then 21.6 KWh x $0.10 = $2.16
This is how homes and most worship facilities arecurrently billed
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Proposed Commercial Rates(Add a Demand Charge)
Back to Light Bulb Example1 Light Bulb = 60W or .06 KW300 bulbs = 18 KW
18 KW x $15 per KW = $270
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How Worship Facility Bills Would Work
Bill = Fixed Charges + Energy Charges +Demand Charges
Fixed Charge = $25 Demand Charge = $270 Energy Charge = $180
300 bulbs (60W) x 100 hours = 1800 kwh @ $0.10/kwh
$475 = $25+$270+$180
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A Large Church in Austin
ReadDate KWHUsage KWDemand Avg.LF% CurrentBill TotalProjectedBill %Increase
12/16/09-1/19/10 29,000 102 34.8% $2,754.45 $2,996.83 8.80%
1/19/10-2/16/10 25,600 202 18.9% $2,430.77 $4,228.36 73.95%
2/16/10-3/17/10 23,600 210 15.6% $2,240.37 $4,237.70 89.15%
3/17/10-4-15-10 32,000 226 20.3% $3,040.05 $4,896.34 61.06%
4/15/10-5/16/10 53,000 242 29.4% $5,984.25 $6,205.27 3.69%
5/16/10-6/16/10 71,400 276 34.8% $8,067.13 $8,144.89 0.96%
6/16/10-7/18/10 92,600 264 45.7% $10,466.97 $9,128.15 -12.79%
7/18/10-8/17/10 98,200 268 50.9% $11,100.89 $9,495.92 -14.46%
8/17/10-9/16/10 95,400 272 48.7% $10,783.93 $9,402.45 -12.81%
9/16/10-10/17/10 64,400 242 35.8% $7,274.73 $6,793.62 -6.61%
10/17/10-11/15/10 42,600 220 27.8% $4,085.81 $5,358.99 31.16%
11/15/10-12/15/10 28,000 250 15.6% $2,683.33 $5,027.58 87.36%
TotalAnnual 655,800 $70,912.68 $75,916.10 7.06%
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A Church w/ DG Solar Panels
ReadDate KWHUsage KWDemand Avg.LF% CurrentBill ProjectedBill %Increase%fromkWh
charges(Solar)
8/10/11-9/10/11 16,880 96.00 23.6% $2,292.08 $2,438.60 6.4% 37.87%
7/12/11-8/10/11 9,440 96.00 14.1% $1,279.79 $2,030.07 58.6% 37.93%
6/10/11-7/12/11 14,880 79.20 24.5% $1,761.12 $2,075.60 17.9% 43.45%
5/11/11-6/10/11 10,160 91.20 15.5% $1,203.87 $1,872.54 55.5% 40.61%
4/11/11-5/11/11 8,640 78.40 15.3% $1,024.42 $1,614.00 57.6% 40.58%
3/10/11-4/11/11 5,120 76.00 8.8% $608.85 $1,398.56 129.7% 40.47%
2/9/11-3/10/11 4,440 56.80 11.2% $579.24 $1,093.32 88.8% 36.89%
1/11/11-2/9/11 3,760 37.60 14.4% $341.13 $788.09 131.0% 53.04%
12/9/10-1/11/11 3,760 30.40 15.6% $341.13 $686.78 101.3% 53.04%
11/8/10-12/9/10 3,440 40.00 11.6% $312.85 $805.34 157.4% 52.91%
10/11/10-11/8/10 4,960 58.40 12.6% $448.98 $1,142.67 154.5% 53.16%
9/10/10-10/11/10 8,800 84.80 13.9% $942.30 $1,826.14 93.8% 48.02%
TotalAnnual 94,280 69 $11,135.76 $17,771.73 59.6% 44.83%
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A Large Church w/ Multiple Meters
Preschool & Sanctuary Family Life CenterRead
Date
KWH
Usage
KW
Demand
Avg.
LF% CurrentBill
Projected
Bill %Inc.
KWH
Usage
KW
Demand
Avg.
LF% CurrentBill
Projected
Bill %Inc.
11/28/10 45,900 177 32.7% $4,473.03 $4,924.29 10.1% 22,400 168 15.9% $2,179.66 $3,584.82 64.5%
12/28/10 46,800 159 40.9% $4,218.76 $4,717.48 11.8% 23,200 200 16.1% $2,088.14 $4,076.35 95.2%
1/27/11 45,300 150 41.9% $4,166.24 $4,513.43 8.3% 26,800 208 17.9% $2,462.20 $4,374.71 77.7%
2/24/11 39,900 156 38.1% $3,668.84 $4,319.16 17.7% 27,200 212 19.1% $2,499.04 $4,451.63 78.13%
3/29/11 50,400 168 37.9% $4,635.99 $5,029.90 8.5% 22,400 164 17.2% $2,056.91 $3,528.54 71.55%
4/27/11 48,300 177 39.2% $5,302.97 $5,048.15 -4.8% 21,600 172 18.0% $2,363.03 $3,599.82 52.34%
5/30/11 57,600 177 41.1% $6,326.99 $5,895.21 -6.8% 26,000 180 18.2% $2,847.51 $4,205.26 47.68%
6/28/11 59,400 276 32.0% $6,525.18 $7,485.97 14.7% 28,800 172 24.9% $3,155.82 $4,238.45 34.31%
7/27/11 64,200 255 36.2% $7,053.71 $7,433.07 5.4% 33,600 188 25.7% $3,684.35 $4,743.14 28.74%
8/29/11 77,100 240 40.6% $8,474.14 $7,915.36 -6.6% 44,800 212 26.7% $4,917.58 $5,719.81 16.31%
10/3/11 69,600 213 37.8% $7,648.31 $6,653.97 -13.0% 34,800 204 19.7% $3,816.48 $4,731.31 23.97%
11/2/11 50,100 144 48.3% $4,635.42 $4,676.74 0.9% 31,200 144 30.1% $2,884.33 $3,701.31 28.32%
Total 654,600 191 38.4% $67,129.58 $68,612.74 2.2% 342,800 185 20.6% $34,955.05 $50,955.14 45.77%
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Consumption Curve for Current Worship Facility RateClass (E01C)
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Commercial Rate Design is not Green
For low load factor users like worship facilities:Value of energy efficiency cut in halfValue of DG solar panels cut in halfValue of choosing Green Choice cut in half
Green Choice Customers: Demand charges go to payfor coal, gas and nuclear so-called brown power
So who is this really benefiting?
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2009 Average Industrial Rates
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What You and Your Congregation Can Do
Contact City
CouncilLetters, Emails, Phone Calls,
Letters to the Editor to get theirattention
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Message to Council
Make it fair 80% is grossly disproportionate to the faith community. Cap
the increase at 20% per customer.
Low-income people cannot handle the increase in a recession.Make it affordable Some congregations will close under current proposal. Some families will go under which will leads to a cascade of
economic harm for all.
Make it green Energy production & consumption harms the environment Demand charges do little to protect the environment.
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Timeline
Contact your City Council immediately.Wed Dec 14th: Austin Energy presents their
proposal to City Council
Council will set the schedule (after Dec 14th) forapproving the rates.
Rumor is Jan 12th for public hearing. Rumor is also that the city budget is depending
on the Austin Energy Rate Increase to take effectin October 2012.
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Get the Word Out inyour Community
Email your contacts; Publish information in your newsletter; Reach out to other congregations;
Discuss the issue with NeighborhoodAssociation.
Send us your bills
What You and Your Congregation Can Do
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GOOD ADVICEREGARDLESS OF AUSTIN
ENERGYS RATE
RESTRUCTURING
Tools to Lower Your Demand
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Think About Your Facility
How many lights? What kind? 60W bulb or 18W CFL w/ equivalent lumens? 1/3rd of energy and demand
Appliances?Avg. Dishwasher = 1.2 KW 5 computers = 1.2 KWAvg. Water heater = 3.8 KW Refrigerator = 1.5 KWWhat kind of HVAC?If all are running at once
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A Bit of Research
Most appliances say somewhere near whereit plugs in
Watts = Volts x AmpsMost American appliances = 120VVisit: energystar.gov/congregations How to guides Portfolio Manager
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HVAC
For 1,000 member congregations or less,HVAC = 70% of electric bill
Talk to an HVAC professional, but generally1,000 sq. ft = 2.5 ton unit = 3.5 KW (avg. residential)Small church = 20 ton unit = 90 KWMedium = 40 ton = 150 KWLarge like FBC = 280 ton, but
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New Units vs. Old Units
How old is yours?FBC Case Study:Old Units (1980s) =2 chillers: 206 ton large unit & 40 ton mini
unit.
Avg. Demand 200-270 KW
New Unit = 280 tons, butTechnology to control loadMax Demand Only 154 KW
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Counter-Intuitive, but
Might be cheaper in the long run toreplace it if its older than 15 years
HVAC is prob around 70% of your billLook into programmable thermostatsTechnology to control HVAC from
computer & even from smart phonesBut investments take money
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HB 2077: LoanSTAR Stewards Pilot Program
Texas Impact helped pass HB 2077 byRep. Eddie Rodriguez last session
A low-interest revolving loan fund forEE improvements set up in the StateEnergy Conservation Office
Cost-effective requirement loan paidback through energy savingsMust be up and running by March 2012
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Thank You
Contact Texas Impact with questions regarding therate case or your bills.
Texas Impact: 512 472 3903www.texasimpact.org
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