§ 24-252. Public Utility Regulatory Act of 1978 (PURPA) (standards 1-6), the Energy Policy Act of 1992 (EPACT 1992) (standards 7-10), the Energy Policy Act of 2005 (EPACT 2005) (standards 11-15), the Energy Independence and Security Act of 2007 (EISA 2007) (standards 16-19), and Title 16 USCA Chapter 46 §2601 et seq. (standards 1-24, non-standard 1).

Compliance.

(a)

Introduction. Whereas, the City of Cartersville must consider twenty-four (24) federal electric utility rate and service standards, and one (1) non-standard, as required by law since we now sell over five hundred million (500,000,000) kWh's of electricity per year. The intent of these laws is to provide increased conservation, efficiency, and equitable retail rates. These standards must be considered and either accepted or rejected with an explanation;

Whereas, each standard should be addressed by ordinance to meet the federal requirements of a) address in writing, b) hold a public hearing, and c) make available to the public;

Whereas, each standard stated below has been considered by the electric superintendent, and a recommendation provided for the mayor and city council;

Whereas, a public hearing has been held on the proposed standards by the mayor and city council on the third day of June, 2010.

Whereas, the applicable laws governing these federal standards are the Public Utility Regulatory Act of 1978 (PURPA) (standards 1-6), the Energy Policy Act of 1992 (EPACT 1992) (standards 7-10), the Energy Policy Act of 2005 (EPACT 2005) (standards 11-15), the Energy Independence and Security Act of 2007 (EISA 2007) (standards 16-19), and Title 16 USCA Chapter 46 §2601 et seq. (standards 1-24, non-standard 1).

(b)

Analysis of standards.

(1)

Cost of service. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville "nondemand" electric rates are typically designed for differences in cost-incurrence attributable to seasonal time of use but not daily time of use due to the lack of public interest and wide use of advanced metering. Electric "demand" rates are typically designed for differences in cost-incurrence attributable to customer demand and energy components of cost. Daily time of use options will likely be considered in the future as public interest grows and an electric meter replacement project is undertaken and appropriate daily time of use meters installed. A power cost adjustment is applicable to all electric rates and is utilized to account for additional capacity added to meet peak demand relative to base demand and additional kilowatt-hours of electric energy delivered to electric consumers. The power cost adjustment is reset when a new cost of service study is performed and these differences are included in the revised rates.

(2)

Declining block rates. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville utilizes declining block electric demand rates and can demonstrate that cost of energy decreases as customer consumption increases due to assignment of generation greater than load. However, use of declining block demand rates may continue to be used even if costs do not decrease as consumption increases if it is determined to promote economic development or for other reasons.

(3)

Time-of-day rates. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville does not utilize time of day electric rates due to cost-effectiveness resulting from lack of public interest and wide use of advanced metering. Daily time of use options may be considered as public interest grows and an electric meter replacement project is undertaken and appropriate daily time of use meters installed.

(4)

Seasonal rates. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville uses seasonal differences for major "nondemand" electric rates and seasonal billing demand calculations for major "demand" electric rates. However, miscellaneous electric rates for construction, flat power, outdoor lighting, and temporary incentive rates are not appropriate for this seasonal change.

(5)

Interruptible rates. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville typically offers interruptible electric rates to those consumers with the ability to curtail at times and levels that will reduce wholesale cost to the utility; however, it is not practical or cost-effective to offer an interruptible rate to each industrial and commercial consumer.

(6)

Load management techniques. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(7)

Integrated resource planning. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(8)

Investments in conservation and demand management. The proposed standard is not applicable to the City of Cartersville, and as such should not be adopted.

The basis is that the federal standard is applicable to a state regulated utility, which for the purposes of the standard is not applicable to the City of Cartersville.

(9)

Energy efficiency investments in power generation and supply. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(10)

Consideration of the effects of wholesale power purchases on utility cost of capital; effects of leveraged capital structures on the reliability of wholesale power sellers; and assurance of adequate fuel supplies. The proposed standard is not applicable to the City of Cartersville, and as such should not be adopted.

The basis is that the federal standard is applicable to a state regulated utility, which for the purposes of the standard is not applicable to the City of Cartersville.

(11)

Net metering. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that there is a state law that fully addresses this issue in Georgia (O.C.G.A. § 46-3-50 et. seq.).

(12)

Fuel sources. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(13)

Fossil fuel generation efficiency. The proposed standard is not applicable to the City of Cartersville, and as such should not be adopted. The basis is that the City of Cartersville's fossil fuel interests are held by the Municipal Electric Authority of Georgia.

(14)

Time-based metering and communications. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville does not utilize time-based metering due to cost-effectiveness resulting from lack of public interest and wide use of advanced metering. Time based metering options may be considered as public interest grows and an electric meter replacement project is undertaken and appropriate daily time of use meters installed.

(15)

Interconnection. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that there is a state law that fully addresses this issue in Georgia (O.C.G.A. § 46-3-50 et. seq.).

(16)

Integrated resource planning. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(17)

Rate design modifications to promote energy efficiency investments. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(18)

Consideration of smart grid investments. The proposed standard is not applicable to the City of Cartersville, and as such should not be adopted.

The basis is that the federal standard is applicable to a state regulated utility, which for the purposes of the standard is not applicable to the City of Cartersville.

(19)

Smart grid information. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville does not utilize due to cost-effectiveness resulting from lack of public interest and wide use of advanced metering. The options relating to Smart Grid information may be considered as public interest grows and an electric meter replacement project is undertaken and appropriate daily time of use meters installed.

(20)

Master metering. It is recommended that the mayor and city council adopt the federal standard.

The basis is that the federal standard is consistent with our current practices.

(21)

Automatic adjustment clauses. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville electric automatic adjustment clause is evaluated with each cost of service study and approved by city council.

(22)

Information to consumers. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the original standard includes mailing each customer a rate sheet when they receive service and every year thereafter. It also includes mailing each customer their previous twelve-month history each month. City of Cartersville electric rates are "open records," available via the internet, a detailed explanation of such rate is available to all consumers upon request, and a personal visit from staff to the consumer's location is available to each customer. Current consumers monthly bills provide the rate name, consumption data for the billing period, consumption data for the previous billing period, and consumption data for the same billing period of the previous year.

(23)

Procedures for termination of electric service. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville does not provide prior notice and dispute opportunity to consumers in cases of unsafe or unlawfully obtained services. Termination of service involving consumers with health issues will follow existing "disconnection during illness" policy.

(24)

Advertising. It is recommended that the mayor and city council adopt an alternative standard to the federal standard.

The basis is that the City of Cartersville electric utility is owned by the public it serves and is not subject to this standard but makes such standard not to conduct political advertising.

(25)

The single non-standard: Lifeline rates. It is recommended that the mayor and city council decline said non-standard.

The basis is that the City of Cartersville residential electric rate is based on a cost of service study for such class of consumer. A rate lower than this rate would increase costs to other residential consumers.

(c)

Adopted standards.

(1)

Cost of service. Electric rates charged by the City of Cartersville for providing electric service to each class of electric consumers shall be designed, to the extent practicable, to reflect the costs of providing electric service to such class by a) permitting identification of differences in cost-incurrence, for each such class of electric consumers, attributable to seasonal time of use of service, and/or b) permitting identification of differences in cost-incurrence attributable to differences in customer demand, and energy components of cost. Both methods shall take into account the extent to which total costs are likely to change if additional capacity is added to meet peak demand relative to base demand, and additional kilowatt-hours of electric energy are delivered to electric consumers.

(2)

Declining block rates. The City of Cartersville utilizes declining block electric demand rates and can demonstrate that cost of energy decreases as customer consumption increases due to assignment of generation greater than load. However, use of declining block demand rates may continue to be used even if costs do not decrease as consumption increases if it is determined to promote economic development or for other reasons.

(3)

Time-of-day rates. The electric rates charged by the City of Cartersville for providing electric service to each class of electric consumers may include in whole or in part a time-of-day basis which reflects the costs of providing electric service to such class of electric consumers at different times of the day unless such rates are not cost-effective with respect to such class. A time-of-day rate shall be determined to be cost-effective with respect to each such class if the long-run benefits of such rate to the City of Cartersville and its electric consumers in the class concerned are likely to exceed the metering and communications costs and other costs associated with the use of such rates.

(4)

Seasonal rates. The electric rates charged by the City of Cartersville for providing electric service to each class of electric consumers shall typically be on a seasonal basis which reflects the costs of providing service to such class of consumers at different seasons of the year to the extent that such costs vary seasonally for the utility.

(5)

Interruptible rates. The City of Cartersville may offer an industrial or commercial electric consumer an interruptible rate which reflects the cost of providing interruptible service to the class of which such consumer is a member if it is determined such consumer can and will reduce the wholesale cost to the utility.

(6)

Load management techniques. The City of Cartersville shall offer to its electric consumers such load management techniques that the City has determined will:

a.

Be practicable and cost-effective, as determined by:

1.

Such technique is likely to reduce maximum kilowatt demand on the City of Cartersville, and

2.

The long-run cost-savings to the utility of such reduction are likely to exceed the long-run costs to the utility associated with implementation of such technique.

b.

Be reliable, and

c.

Provide useful energy or capacity management advantages to the City of Cartersville.

(7)

Integrated resource planning. The City of Cartersville shall employ integrated resource planning. All plans or filings before a state regulatory authority to meet the requirements of this paragraph must be updated on a regular basis, must provide the opportunity for public participation and comment, and contain a requirement that the plan be implemented. However, currently the City of Cartersville is not required to file integrated resource planning with the state regulatory bodies.

(8)

Investments in conservation and demand management. This standard is not applicable to the City of Cartersville.

(9)

Energy efficiency investments in power generation and supply. The rates charged by the City of Cartersville shall be such that the City is encouraged to make investments in, and expenditures for, all cost-effective improvements in the energy efficiency of power generation, transmission and distribution. In considering regulatory changes to achieve the objectives of this paragraph, the City of Cartersville shall consider the disincentives caused by existing ratemaking policies, and practices, and consider incentives that would encourage better maintenance, and investment in more efficient power generation, transmission and distribution equipment.

(10)

Consideration of the effects of wholesale power purchases on utility cost of capital; effects of leveraged capital structures on the reliability of wholesale power sellers; and assurance of adequate fuel supplies. This federal standard is applicable to a state regulated utility but is not applicable to the City of Cartersville.

(11)

Net metering. The City of Cartersville adopts by reference the applicable requirements of O.C.G.A. § 46-3-50 (2008) et seq.

(12)

Fuel sources. The City of Cartersville shall develop a plan to minimize dependence on one fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.

(13)

Fossil fuel generation efficiency. The City of Cartersville's fossil fuel interests are held by the Municipal Electric Authority of Georgia, whom is responsible for adoption of policies relating thereto.

(14)

Time-based metering and communications. The City of Cartersville does not utilize time-based metering of electric rates due to cost-effectiveness resulting from lack of public interest and wide use of advanced metering. Time-based metering of use options may be considered as public interest grows and an electric meter replacement project is undertaken and appropriate time-based meters installed.

(15)

Interconnection. The City of Cartersville adopts by reference the applicable requirements of O.C.G.A. § 46-3-50 (2008) et seq.

(16)

Integrated resource planning. The City of Cartersville shall:

a.

Integrate energy efficiency resources into City of Cartersville electric system, state, and regional plans; and

b.

Adopt policies establishing cost-effective energy efficiency as a priority resource.

(17)

Rate design modifications to promote energy efficiency investments.

a.

In general. The rates allowed to be charged by the City of Cartersville shall:

1.

Align utility incentives with the delivery of cost-effective energy efficiency; and

2.

Promote energy efficiency investments.

b.

Policy options. In complying with subparagraph a., the city shall consider:

1.

Removing the throughput incentive and other regulatory and management disincentives to energy efficiency;

2.

Providing utility incentives for the successful management of energy efficiency programs;

3.

Including the impact on adoption of energy efficiency as one of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives;

4.

Adopting rate designs that encourage energy efficiency for each customer class;

5.

Allowing timely recovery of energy efficiency-related costs; and

6.

Offering home energy audits, offering demand response programs, publicizing the financial and environmental benefits associated with making home energy efficiency improvements, and educating homeowners about all existing federal and state incentives, including the availability of low-cost loans, that make energy efficiency improvements more affordable.

(18)

Consideration of smart grid investments. This federal standard is applicable to a state regulated utility but is not applicable to the City of Cartersville.

(19)

Smart grid information. The City of Cartersville City of Cartersville does not currently utilize due to cost-effectiveness resulting from lack of public interest and wide use of advanced metering. The options relating to Smart Grid information may be considered as public interest grows and an electric meter replacement project is undertaken and appropriate daily time of use meters and/or time-based metering is installed.

(20)

Master metering. Master metering of electric service in the case of new buildings shall be prohibited or restricted to the extent necessary to carry out the purposes of this chapter unless to the extent determined appropriate by:

a.

There is more than one (1) unit in such building,

b

The occupant of each such unit has control over a portion of the electric energy used in such unit, and

c.

With respect to such portion of electric energy used in such unit, the long-run benefits to the electric consumers in such building exceed the costs of purchasing and installing separate meters in such building.

(21)

Automatic adjustment clauses. The City of Cartersville power cost adjustment clause for electric rates shall be determined after a public hearing and consider incentives for efficient use of resources (including incentives for economical purchase and use of fuel and electric energy) by the City of Cartersville, and insure the maximum economies in those operations and purchases which affect the rates to which such clause applies. The mayor and city council shall examine and, if appropriate, cause to be audited the practices of the City of Cartersville electric system relating to costs subject to an automatic adjustment clause, and shall require such reports as may be necessary to carry out such review.

(22)

Information to consumers. The City of Cartersville shall transmit to an electric consumer a clear and concise explanation of the existing rate schedule and any rate schedule applied for applicable to such consumer upon request. The City of Cartersville shall transmit to such consumer a clear and concise statement of the actual consumption of electric energy by such consumer for each billing period (unless such consumption data is not reasonably ascertainable by the city).

(23)

Procedures for termination of electric service. Electric service provided by the City of Cartersville may not be terminated unless reasonable prior notice is given to such consumer and such consumer has a reasonable opportunity to dispute the reasons for such termination except in situations where service has been determined as unsafe or unlawfully obtained.

(24)

Advertising. The City of Cartersville electric system may not recover from any person of such utility any direct or indirect expenditure by such utility for political advertising, including, but not limited to, the commercial use of any media, including newspaper, printed matter, radio, and television, in order to transmit a message to a substantial number of members of the public or to such utility's electric consumers for the purpose of influencing public opinion with respect to legislative, administrative, or electoral matters, or with respect to any controversial issue of public importance not directly related to utility operations or costs to the consumer.

(25)

The single non-standard: Lifeline rates. The City of Cartersville declines this non-standard as its residential electric rate is based on a cost of service study for such class of consumer. A rate lower than this rate would increase costs to other residential consumers

(Ord. No. 17-10, § 1, 6-3-10)