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Transmission $ 911,026 <br />Average wholesale energy price (low range forecast) <br />Estimated KWH sales <br />Minimum Energy Take Obligation <br />$0.014 per KWH <br />114,652,760KWH <br />115,955,000KWH <br />The use of the low range forecast essentially eliminates any risk of underrecovery of fixed <br />costs. This number is low because the period does not include the higher prices characteristic <br />of the summer period. <br />Estimated KWH sales assume an increase in load due primarily to the hospital and the flour <br />mill. <br />Based on the data above and on budget information, a first approximation of Colton's CTC is <br />simplycalculatedas follows: <br />$8,863,209 - (115,955,000 x $0.014) <br />CTC=------------------------------- ------------------------------------------- $0.0631 per KWH <br />114,652,760 <br />This compares to a verbal report that SCE's CTC is now about $0.0285 per KWH. The <br />calculation assumes that Calton would not sell any retail energy in the period, i.e. worst case, <br />and that termination of certain transmission contracts would not be feasible within the time <br />period. <br />This matter came before the Utilities Commission in its meeting of September 8, 1997, and was <br />approved. <br />FINANCIAL IMPACT <br />Implementation of a CTC does not change the electric rate of any customer, nor does it <br />establish direct access. The purpose of the CTC is maintain the financial integrity of the <br />electric utility with regard to its long-term investments in electric generation facilities should the <br />Council establish direct access for energy at some future date. <br />Thomas K. Clarke, Utility Director <br />RECOMMENDATION <br />To approve Resolution R -97' , adopting the attached Rate Schedule CTC. <br />Report prepared by Timothy C. Trewyn, P.E., Assistant Electric Utility Director <br />