Council moves to finalize procedural changes to electric-rate ordinance, including notice rule and large-power contract language

City staff presented proposed procedural revisions to Ordinance 18-76 on Oct. 28 designed to clarify classification of customers into the large general service rate and to add a large power contract section for customers with very high anticipated demand.

Staff explained the proposed process would determine each customer's peak demand for the prior audit period (July 1 to June 30). "Any resident or small general service customer who establishes a peak demand of 50 kilowatt during the prior demand audit period shall be moved to large general service rate effective October 1 and remain in that rate through the following September 30," staff said. To give customers advance notice and a chance to manage demand, staff proposed written notices to any customer who establishes a peak demand of 40 kilowatts or greater for the first time; notices would be prepared from recent meter readings and issued on a scheduled cadence throughout the year.

Staff also recommended adding a separate large-power contract rate so that any customer with anticipated peak demand in excess of 5,000 kilowatts would be served only under a customer-specific contract, with rates and terms based on cost-of-service and state law.

The recommendations are procedural and do not change per-kilowatt rates. Staff said reinstating the procedural language would allow the electric department to notify and work with customers approaching the threshold, potentially promoting energy-management steps so businesses do not face unexpected rate classification for extended periods.

Council moved and approved a motion to complete the ordinance revisions (non-rate procedural updates) and directed staff to prepare final language for future readings.