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HomeMy WebLinkAboutTatitlek PCE 1990TATITLEK.XLS,4/13/90, PCE RATE ANALYSIS APUC/PCE CURRENT |NEW PROJECT SCENARIO Year DATA FY89 | SCENARIO PCE ($) | PCE ($) |CAPITAL(S) PCE ($) Investment Year $0 $0 ($40,000) $0 Savings: ($44,575)] ($52,115) ($40,674) " ($44,575)| ($52,115) ($40,674) « ($44,575)] ($52,115) ($40,674) " ($44,575)| ($52,115) ($40,674) “ ($44,575)| ($52,115) ($40,674) " ($44,575)| ($52,115) ($40,674) " ($44,575)| ($52,115) ($40,674) " ($44,575)} ($52,115) ($40,674) " ($44,575)] ($52,115) ($40,674) Savings: ($44,575)] ($52,115) ($40,674) ($445 ,747)} ($521, 153)] ($40,000) ($406,741) APUC/PCE DATA, FY89 Fuel Cost: $35,057 Kwh Sold: 208 , 868 Non- fuel Cost: $45,231 Kwh Sold: 208 , 868 PCE Rate: 0.2844 Elig. Kwh Sold: 156,718 PCE Total Costs: $44,575 NOTES: APUC/PCE DATA, FY89 CURRENT SCENARIO, FY89 Fuel Cost: Kwh Sold: Non-fuel Cost: Kwh Sold: PCE Rate: Elig. Kwh Sold: PCE Total Costs: PCE Annual Savings: New Proj vs. APUC/PCE $33,053 179,945 $45,231 179,945 0.3325 156,718 $52,115 Capital Cost: Simple Payback, years Benefit Cost Ratio: Maximum Cost for 10yr Payback: $40,000 3.50 2.86 $114,412 A fs q)e/9c! NEW PROJECT SCENARIO, Fuel Cost: Kwh Sold: Non- fuel Cost: Kwh Sold: PCE Rate: Elig. Kwh Sold: PCE Total Costs: PCE Annual Savings: New Proj vs. Current Fuel Cost, Non-fuel Cost, and Kwh Sold are from the latest APUC PCE rate filing Eligible Kwh Sold is from the AEA FY89 PCE DATA CURRENT SCENARIO Fuel Cost is calculated based on CURRENT generating fuel efficiency, kwh sold, and $/gallon for fuel FY89 $19,225 179,945 $45,231 179,945 0.2595 156718 $40,674 [ $11,441 Non-fuel Cost includes APUC/PCE DATA Non-fuel cost PLUS depreciation and interest expense for the new equipment Kwh Sold is from the AEA FY89 PCE data Eligible Kwh Sold is from the AEA FY89 PCE DATA NEW PROJECT SCENARIO Fuel Cost Non-fuel Cost is from the latest APUC PCE rate filing Kwh Sold is from the AEA FY89 PCE data Eligible Kwh Sold is from the AEA FY89 PCE DATA CURRENT SCENARIO NON-FUEL COSTS Non-Fuel Cost: $45,231 Capital Cost: 0 Depreciation Term: 10 yrs Interest Rate: 7.00% Real Interest Rate: 3.00% Inflation Rate: 3.90% Depreciation and Interest Expense Non- fuel Cost plus depreciation and interest expense: is calculated based on NEW generating fuel efficiency, kwh sold, and $/gallon for fuel $0 per year $45,231 per year Page 2 TATITLEK.XLS,4/13/90, PCE ECONOMIC ANALYSIS Village: Tatitlek Construction Cost: $40,000 Elec. Sold FY89: 179945 Kwh** Elec. Increase: 0.00% Net Benefit: $77,958 Fuel Effy FY89: 5.7 Kwh/gal** New Effy: 4.1 9.8 Kwh/gal Present Value Current Scenario: $0 Fuel Price: 1.047 $/gal* Present Value PCE Scenario: $77,958 Fuel Price Increase 0.00% Discount Rate: 3.00% Max Construction Cost: $117,958 Date: Apri We /o 12, 1990 CURRENT SCENARIO NEW PROJECT SCENARIO Capital O&M Fuel Fuel Capital Fuel ($) ($ saved) |(gal saved)| ($ saved) ($) ($_saved) |(gal_saved)|($ saved) |} Investment Year 1990, $0 ($40,000) $0 Savings: 1991 $0 $13,828 " 1992| $0 $13,828 = 1993 $0 $13,828 7 1994 $0 $13,828 " 1995 $0 $13,828 7 1996) $0 $13,828 " 1997 $0 $13,828 " 1998 $0 $13,828 " 1999, $0 $13,828 Savings: 2000 = $13,828 Total: 3138, 283 prea sat Ff er tht 28 NOTES: CURRENT SCENARIO Capital Cost is zero There are no fuel savings NEW PROJECT SCENARIO Capital Cost includes the $40,000 required to complete the project Generating fuel efficiency is improved 4.1 Kwh/gal to 9.1 Kwh/gal Fuel (gallons saved) is based on the generation efficiency improvement and Kwh sold in FY89 Fuel ($ Saved) is based on FY90 $/gallon and gallons of fuel saved O&M costs savings are assumed negligible Maximum Construction Cost is equal to the Construction Cost minus the Present Value Current Scenario plus the Present Value PCE Scenario * From 7/27/89 APUC PCE rate filing ** From FY89 PCE data Page 1 PCE ECONOMIC ANALYSIS SUMMARY SHEET Village: Tatitlek } Analysis Date: 4/13/90 Ap 4) |b 4b Summary: The savings to the PCE program as a result of Tatitlek’s improved fuel efficiency exceeds the additional $40,000 required. The estimated fuel efficiency improvement is 4.1 kWh/gallon. This was derived from Caterpillar fuel efficiency graphs for a 3306T and 3304T loaded at 40 kW peak. 40 kW was the peak load measured during installation and start-up. The Capital cost to complete the New Project Scenario is $40,000. The Maximum Construction cost based on a 10 year discounted Economic payback is $117,958. The Maximum Construction cost based on a 10 year PCE payback is $114,412. Assumptions: Tatitlek began receiving free fuel from EXXON, and reduced their electric rate, in May 1989. Due to this, the APUC reduced Tatitlek’s PCE rate from $.2844/kWh to $.1250/kWh. Tatitlek’s electric rate is currently less than their eligible costs. Therefore, their PCE rate is rate-based as opposed to cost-based. Although Tatitlek is currently enjoying the benefit of free fuel, the likelihood of this continuing over the next ten years is doubtful. Therefore, the following assumptions are used in the analysis: 1) The price of fuel is based on the most recent data available prior to May 1989. 2) Fuel costs are calculated from the most recent fuel price multiplied by total kWh sold in FY89, divided by the estimated fuel efficiency of kWh/gallon. 3) Tatitlek’s electric rate will increase to previous levels after the termination of free fuel, and their PCE rate will be cost-based rather than rate-based. /ss attachment TaTitlek V/i39o Caner, s max lend 4otku AT OLD £QviP: S3SCECT CAT ase cn eae pe > ae @ YokW = Go Flyer por C Ey : ze) aoe = Ss C= 2642 : yok 2-52 Cnt /Gak eee ad EGuP ~~ S304 FT AT fy Ae 2, 13 TR/yR © YOKX Tet ps) Cone) (He = (OF Lat fed Ho ful pete npn smn : 35% ACTUAL lew /p& - s.o bo 7/54 I1es- AS7= 4.1 bie/qQ rycen # OF FISCAL FISCAL COMMUNITY DATE POPUL RESID. PERIOO YEAR POPULATION CERTIFIED cust 7 89 76 07/01/85 18 8 89 76 07/01/85 18 9 89 76 07/01/85 19 10 89 76 07/01/85 19 WW 89 76 07/01/85 19 12 89 76 07/01/85 18 Subsubtotal * Subtotal ** TANANA POWER CO. - FY89 - PALMER 1 89 420 12/23/86 156 2 89 420 12/23/86 128 3 89 420 12/23/86 156 4 89 420 12/23/85 157 5 89 420 AA 145 6 89 417 12/23/86 136 Lf 89 417 12/23/86 151 8 89 417 12/23/86 149 9 89 417 12/23/86 144 10 89 417 12/23/86 167 W 89 416 12/15/88 153 12 89 414 02/15/88 156 Subsubtotal * * Subtotal ** « TATITLEK ELECTRIC UTILITY - ene OI a Ie cece TATITLEK 89 89 89 89 89 89 89 89 89 89 89 NOC @®nNOVUEWN— =o Subsubtotal * * Subtotal ** 105 105 105 105 105 105 105 105 105 105 105 * TELIDA VILLAGE UTILITY Ae 4d 47 01/01/80 01/01/80 01/01/80 01/01/80 01/01/80 01/01/80 01/01/80 01/01/80 SSSRSSRSUSS - FY89 POWER COST EQUALIZATION MONTHLY PCE STATISTICS REPORT UTALETY # OF OF — CURRENT COMMER. COMMUN. FUEL CUST FACIL.» PRICE 7 7 1.0650 7 7 1.0650 7 7 1.0650 7 7 1.0650 7 7 1.0650 7 7 1.0650 9 " 1.1190 51 " 1.1190 9 " 1.1190 9 n 1.1190 9 "1 1.1190 9 " 1.1190 8 n 1.1190 8 " 1.1190 9 " 1.1190 9 W 1.1190 9 " 1.1190 9 " 1.1190 9 1 1.1500 9 1 1.1500 9 1 1.2490 9 1 1.2490 9 1 1.0900 0 1 1.0900 " 1 1.2490 " 1 1.2490 10 1 1.2490 10 1 0.0000 10 1 0.0000 10420 12250 11270 12670 14480 13840 16020 12930 12820 12570 12530 11100 152900 152900 2489 2542 2624 2660 2669 3532 2705 3193 3380 3233 2624 31651 31651 SUMMARY TOTAL FUEL COST 2423.20 1661.40 1778.55 1544.25 1299.30 1107.30 21022.50 21022.50 esosooo09999000 eooooo sssss3sssssss ° 2 6 0.00 28296 .92 28296 .92 TArUCK FAPCEF! TOTAL OPERATING EXPENSE 1560.80 2304.48 2078.27 4073.80 4996.49 1995 .00 28996 .27 28996 .27 14668 .09 21905 .32 50642.36 16254 .72 51869 .58 41648.88 21931.93 41973 .96 4351864 46305 .22 30240.15 34405.61 415164 .46 415164 46 275.00 400.00 224.00 301.00 710.00 469.00 344.00 1125.00 516.00 329.20 0.00 4693.20 4693.20 08-H6LH TATE Me an | / S f i Fig Hie MI AS KA / STEVE COWPER, GOVERNOR | idvgikb Wh SIN | ALASKA PUBLIC UTILITIES COMMISSION DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT i 420 “L" STREET SUITE 100 ANCHORAGE, ALASKA 99501 July 27 1989 (907) 276-6222 EGEIVE In reply refer to: Finance Section JUL 31 1989 File: PC16-0388 & PC16-0389 ALASKA ENERGY AUTHORITY Mr. Gary Kompkoff, President Tatitlek El ctric Utility P.O. Box 171 Tatitlek, Alaska 99677 Dear Mr. Kompkoff: As Ms. Katelnikoff was telephonically notified on July 25, 1989, the Commission granted Tatitlek an up-dated permanent Power Cost Equalization (PCE) level of 12:50 cents per kilowatt-hour (/kwh) for all classes of customers, effective for billings rendered on or after July 14, 1989. The increase is due to the annual update of eligible costs approved for the test period ending December 31, 1988. The interim, refundable PCE level of 26.58 cents/kwh in effect since March 1, 1987 7 revised to a permanent level of: 28.12 cents/kwh_ fon. MA Eb. 1, 1987 through March 31, 1988, 29.10 Ra $0h “April i, 1988 through March 31, 989 and 23% for April 1, 1989°th ape 30, 1989. A permanent PCE level of 12.50 cents/kwh is approved for the period May 1, 1989 through May 31, 1989. The interim, refundable PCE level of 10.66 cents/kwh, in effect since June 1, 1989, is made permanent for the period June 1, 1989 through July 13, 1989. Tatitlek is required to make the following refunds for all eligible sales during the periods below: 1.05 cents/kwh for March 1, 1987 through March 31, 1988, 0.07 cents/kwh for April 1, 1988 through March 31, 1989 and 0.73 cents/kwh for April 1, 1989 through April 30, 1989. Tatitlek is directed to contact the Alaska Energy Authority to work out a refund plan. Letter Order - Tatitlek Electric Utility Page 2 of 2 July 27, 1989 Tatitlek is also required to file an application for a certifi- cate of public convenience and necessity by October 16, 1989. Tatitlek is placed on notice that it must take steps to improve its efficiency. If the efficiency does not meet the October 1, 1990 standard of 7.0 required in Docket R-88-6, Order No. 5, Staff will impute an efficiency of 7.0 to calculate Tatitlek’s PCE level. For your reference, a copy of the Commission Staff’s (Staff) recommendation and schedules is attached as an Appendix. The Commission reminds Tatitlek of its continued obligation, under the PCE legislation, to provide its customers with the notice specified in AS 44.83.162(k) or similar notice approved by the Alaska Power Authority. The Commision also reminds Tatitlek of its obligation under General Order Nos. 14A and 14B to notify the Commission of any change in its fuel costs and/or efficiency of operation and puts Tatitlek on notice that failure to comply with General Order Nos. 14A and 14B could jeopardize its continued participation in the PCE program. ; Should you have any questions regarding the contents of this let- ter, please contact Utility Financial Analyst William Schouten of the Staff at 276-6222. BY DIRECTION OF THE COMMISSION (Commissioners Susan M. Knowles and Kathleen L. Whiteaker, not participating) Sincerely, ALASKA PUBLIC, UTILI COMMISSION T. S. Moninski II Executive Director Enclosures cc: Alaska Energy Authority Att: Ms. Cheryl Young P. O. Box 190869 Anchorage, Alaska 99519-0869 q “rere pe tepwomee se pats aoW_.. COST EQUALIZATION MEMORAL iM : RSG ad ice DATE__7/10/89 Date Filed_ 5/8/89 & 5/12/89 PC16-0388 & PC16-0389 Utility:_Tatitlek Electric Utility Fuel Price Increase Annual Updates ] ] Non-Fuel Cost Change ] ] (XX] ( ] Fuel Price Decrease ( ] Rate Change { ] Efficiency Change KWH Sales Change Other: STAFF RECOMMENDATIONS: 1. A permanent PCE level of 12.50 cents/KWH should be effective for billings rendered on or after July 14, 1989. 2. The interim, refundable PCE level of 26.58 cents/KWH, in effect since March 1, 1987, should be made permanent for the period March 1, 1987 through April 30, 1989. 3. A permanent PCE level of 12.50 cents/KWH should be effective for the period May 1, 1989 through May 31, 1989. 4. The interim, refundable PCE level of 10.66 cents/KWH, in effect since June 1, 1989, should be made permanent for the period June 1,. 1989 through July 13, 1989. 5. Tatitlek should be required to make a refund of 2.59 cents/KWH for all eligible sales during the period March 1, 1987 through September 30, 1988. Condition(s) for approval: : a. Standard reminder language for notice specifications and efficiency and fuel cost changes should be included in the By Direction Letter to the utility. b. Tatitlek should be required to file an application for a certificate of public convenience and necessity by October 16, 1989. PCE LEVEL SUMMARY: Previously Utility Staff Approved Requested Recommended (A) (B) (Cc) Date Approved 6/16/89 PCE LEVELS (In cents/KWH) Residential 10.66 12.50 Commercial 10.66 12.50 ALLL AL ~ mo —— F Signed: William Schouten , Utility Financial Analyst COMMISSION DECISION: Date (if I WILL WRITE diffe gggrom I Do A DISSENTING sit ri ) I_CONCUR NOT CONCUR STATEMENT* — ZT Te ee a6 BORO LM bles = Knowles Aas rape ft 4: Guess LL: Whiteaker C Sokolov = —. O’Tierney ZK tL Special Instructions to Staff: *If this column initialed, Staff will contact the Commissioner for the statement; otherwise, dissent will simply be noted at the close of the By Direction Letter or Order. Rye fen SF eee es FES 1 6 og oF, af) Pre Foeriyps a a ee a MEMORANDUM TO: Susan M. Knowles, Chairman Date: July 10, 1989 Carolyn S. Guess Kathleen L. Whiteaker Peter Sokolov Daniel Patrick O’Tierney FROM: William Schouten 4/)./ Subject: PC16-0388 & PC16-0389; Tatitlek Electric Company; PCE Updates Background On March 3, 1989, the Commission approved a permanent PCE level of 29.17 cents/KWH for the period June 14, 1985 through February 28, 1986, a permanent PCE level of 29.00 cents/KWH for the period March 1, 1986 through February 28, 1987, and an interim, refundable PCE level of 26.58 cents/KWH for billings on or after March 1, 1987. On May 8 and 12, 1989, Tatitlek filed updates for the year ending December 31, 1987 and the year ending December 31, 1988. After Staff’s preliminary review of the filings, additional information was requested. On June 12, 1989, Tatitlek provided the additional information. On June 7, 1989, Tatitlek notified Staff that Exxon has been providing fuel for free to the utility since May 1, 1989, in order to lessen the impact of the oil spill on the village. Based on this information, Staff recommended an interim, refundable PCE level of 10.66 cents/KWH for billings on or after June 1, 1989. The Commission approved Staff’s recommendation at its June 16, 1989 Tariff Action meeting. Tatitlek does not have a certificate of public necessity and convenience (CPC&N). The Commission granted Tatitlek additional time to file its application for a CPC&N. Now that the required PCE updates for 1987 and 1988 have been filed, Tatitlek should file an application for a CPC&N. Staff Analysis March 1, 1987 through March 31, 1988. Fuel expense for this period was not known at the time the Commission approved an interim, refundable PCE rate of 26.58 cents/KWH. On the basis of the two PCE updates filed on May 8 & 12, 1988, a permanent PCE level can be computed using the non-fuel costs for the test year ending February 28, 1987 and the fuel cost for the period March 1, 1987 through March 31, 1988. Staff’s computatiqn on WS-1, Appendix 1 and WS-2, Appendix 2 results ina PCE level of cents/KWH. Because this level is greater than the (26.58 cents/KWH interim level approved on March 3, 1989, the 26.58 cents/KWH interim level should be made permanent for the period March 1, 1987 through March 31, 1988. Because the utility was paid (29.17 cents/KWH PCE during the period, a refund of 2.59 cents/KWH will be lired for all eligible sales. Tatitlek should contact the Alaska Power Au hority (APA) to work / 26°55 ~ 31(97- 5( 2/1 g¢ bok ali be fer 28.12 tee -1- ( C out a refund plan for this refund as well as the other refunds I am recommending below. To explain the two updates for the years 1987 and 1988, Staff prepared WS-3, Appendix 1 and WS-4, Appendix 2 for the 1987 filing and WS-5, Appendix 1 and WS-6, Appendix 2 for the 1988 filing. WS-7, Appendix 1 and WS-8, Appendix 2 summarize Staff’s recommendation for a PCE level based on 1988 non-fuel costs, normalized for the weighted average cost of fuel through May 31, 1989 and the reduced rate effective May 1, 1989. wWS-9, Appendix 1 and WS-10, Appendix 2 summarize Staff’s recommendation for a PCE level based on 1988 non-fuel costs, normalized for the zero cost of fuel and the reduced rate effective May 1, 1989. Test year ending December 31, 1987. Non-Fuel expenses: The non-fuel expenses requested on Alternate Form Appendix 2, for the period ending December 31, 1987, total $35,275 and consist of the following: Personnel costs $23,296, Power Plant Parts and Supplies $5,813, Repairs and Maintenance $5,953, and General and Administrative expense of $213. On Alternate Form Appendix 1, the utility requested non-fuel expense of $42,346. Sandra Katelnikoff, utility administrator, explained that the $42,346 was an erroneous amount and that the $35,275 non-fuel expense was correct. Power Plant Parts and Supplies of $5,813 included barge fuel and delivery charges which were stated separately in the prevous update under Other - Fuel Delivery. The requested expense of $35,275 compares to operating expense of $4,104 the utility submitted to APA in its monthly reports. No data was submitted to APA for the months September through December 1987. The requested expense of $35,275 compares to $39,107 requested in the previous update, appears reasonable and I recommend no adjustments. Staff believes the $35,275 is more representative of actual expenses than the $4,104 reported to APA. Fuel costs: For the year ending December 31, 1987, the utility requested fuel costs of $27,850 based on consumption of 30,790 gallons of fuel during the test year, and an average weighted cost of $0.9045/gallon. The $0.9045 cost/gallon was computed correctly and supported by copies of invoices included in the filing. However, Staff is normalizing fuel expense for the average weighted cost of fuel for the period April 1, 1988 through March 31, 1989. Staff’s weighted average cost of fuel does not include the 15.1 cents/gallon Tatitlek paid on some of its fuel. All computations are made exclusive of any excise tax that was paid. Staff also proposes to increase fuel consumption by 3,605 gallons because the utility request did not include fuel consumed during the month of January 1987. Staff knew that 3,605 gallons was the fuel consumption from information received in the previous update. The monthly reports sent to the APA showed fuel consumption of 30,790 gallons for the months February through December 1987, with no data furnished for January. Staff computed fuel expense of $36,012 based on 34,395 gallons normalized for the average weighted cost of $1.047/gallon C C Staff’s adjustments increase the cost of fuel by $8,162 to $36,012. Staff’s fuel cost/KWH is 19.77 cents (WS-3, Appendix 1). For the year ending December 31, 1987, the utility reported KWH sales of 167,049 KWH. It appeared that the utility had only included sales which were eligible for PCE, not all sales. Therefore, Staff requested billing summaries which were provided by the utility. Based on the billing summaries, I propose to increase the 167,049 KWH in the filing by 15,127 KWH to 182,176 KWH. For the period April 1, 1988 through March 31, 1989, I computed a revised PCE level of 29.10 cents/KWH based on eligible power costs of 30.63 during the test year ending December 31, 1987 (WS-1, Appendix 1). Because this level is greater than the 26.58 cents/KWH interim level approved on March 3y°°1989, the 26258 cents/KWH interim level should be made permanent for the period April 1, 1988 through March 31, 1989. Because the utility was paid 29.17 cents/KWH PCE during the period April 1, 1988 through September 30, 1988, a refund of 2089 cents/KWH will be required for all eligible sales. No refund will be required for the period October 1, 1988 through March 31, 1989, because Tatitlek was paid 26.58 cents/KWH for eligible sales during this period. Test year ending December 31, 1988: Non-Fuel expenses: The non-fuel expenses submitted for consideration for the period ending December 31, 1988, total $50,533 and consist of the following: Personnel costs $23,265, Power Plant Parts & Supplies $14,908, Repairs and Maintenance $10,019, and General and Administrative expense of $2,341. Power Plant Parts and Supplies of $14,908 was the expense for barge fuel and delivery charges, which were stated separately in the prevous update under Other - Fuel Delivery. The requested expenses of $50,533 compared to Operating expense of $3,792 the utility submitted to the APA in its monthly reports. The monthly reports did not include any data on January 1988. The reports available did not look reliable. Repairs and Maintenance included $7,953 for a diesel overhaul. I propose to amortize the cost over a three-year period, based on advice from Staff Engineering. This results in a $5,302 decrease to Repair and Maintenance. The utility provided invoices to substantiate the $14,908 expense for barge fuel and delivery charges. My adjustment to Repair and Maintenance reduces non-fuel costs of $50,533 by $5,302 to $45,231 (WS-4, Appendix 2). Staff adjusted non-fuel expense of $45,231 appears reasonable and I do not propose further adjustments. Fuel costs: For the year ending December 31, 1988, the utility requested fuel costs of $35,458 based on consumption of 33,483 gallons of fuel during the test year, and a cost of $1.059/gallon. The $1.059 cost/gallon is based on a fuel purchase made on November 6, 1988. C C Staff used the average weighted cost of fuel to calculate the appropriate PCE level. Staff’s average weighted cost is based on the cost of fuel in inventory on April 1, 1989. No purchases were made during April 1989. Staff’s cost of fuel is $35,057 and is based on the average weighted cost of fuel of $1.047. Staff’s $35,057 cost of fuel isa $402 reduction to the filing. Staff’s fuel cost/KWH is 16.78 cents (WS-5, Appendix 1). KWH sales were verified through billing summaries. KWH sales, reported to APA and requested in the PCE update, only included sales eligible for PCE. Based on the billing summaries, I propose to increase the 170,486 KWH in the filing by 38,382 KWH to 208,868 KWH. Efficiency, even after Staff’s adjustments, was only 5.30 for the year ending December 31, 1987, and 6.24 for the year ending December 31, 1988. The utility does not meet the efficiency standard, required by Docket R-88-6, Order No. 5, which will become effective on October 1, 1990. Based on Staff adjusted expenses and KWH sales for the year ending December 31, 1988, Tatitlek is entitled to a PCE level of 28.44 cents/KWH, which is a level based on eligible costs (WS-5, Appendix 1). The interim PCE level of 26.58 cents/KWH in effect for the period April 1, 1989 through April 30, 1989 should be made permanent. Because Tatitlek’s interim PCE level of 26.58 cents/KWH during the period April 1, 1989 through April 30, 1989 was less than 28.44 cents/KWH, no refunds will be required. Pp iseo. May 1,. 1989 through’ A PCE revision is necessary for this period because Tatitlek reduced its rates effective May 1, 1989. WS-7, Appendix 1 and WS-8, Appendix 2 summarize Staff’s recommendation. The new PCE level is based on 1988 non-fuel costs, cost of fuel in inventory of $1.047/gallon and an average class rate of 12.50 cents/KWH. Because of the lower rates Tatitlek’s interim PCE level of 26.58 cents/KWH should be revised to a permanent level of 12.50 cents/KWH. Tatitlek has not yet received any PCE for this period. APA should compute Tatitlek’s payment for this period at the 12.50 cents/KWH rate. June 1, 1989 through July 13, 1989. On June 16, 1989 the Commission approved an interim PCE level of 10.66 cents/KWH based on non-fuel costs for the test year ending February 28, 1987 and zero cost of fuel. Based on Staff’s review of the PCE filing for the year ending December 31, 1988, a permanent PCE level should be established. WS-9, Appendix 1 and WS-10, Appendix 2 summarize Staff’s recommendation. The new PCE level is based on 1988 non-fuel costs, zero cost of fuel and average class rates of 12.50 cents/KWH. Because the 12.50 cents/KWH PCE rate is higher than the 10.66 cents/KWH interim level in effect, the interim PCE level of 10.66 cents/KWH should be made permanent. PCE level after July 13, 1989. C C A permanent PCE level of 12.50 cents/KWH should be effective for billings on or after July 14, 1989. This level is based on Staff’s recommendation summarized in WS-9, Appendix 1 and WS-10, Appendix 2. The PCE level is based on average class rates since costs exceed the rate. Other Matters Because all customers are charged a flat rate, no separate calculation is required for community facilities. Staff recommends that Tatitlek be directed to file an application for a CPC&N by October 16, 1989. Because Tatitlek does not meet the efficiency standards of Docket R-88-6, Order No. 5, which will be effective on October 1, 1990, Tatitlek should be placed on notice that it must take steps to improve its efficiency. If the efficiency does not meet the October 1, 1990 standard of 7.0, Staff will impute an effiency of 7.0 to calculate Tatitlek’s PCE level. H, Ke TATITLEK ELECTRIC COMPANY POWER COST EQUALIZATION CALCULATION FOR FERIOL ENDING FEBRUARY 28% 1987 Frior Commission Steff Tetermination Recommendation $/14/89 Total KWH Generated Total KWH Sold (Arrendix 2) 198535 Totel Non-Fuel Costs (Arrendix 2) 397107 Nonm-Fuel Cost/KWH (C / B) $0.1772 Totel Fuel Costs (Arrendix 2) 339259 Fuel Costs/KWH (E / B) $0.1677 Eligible Costs/KWH (DT + F) £0+3648 Elisible Cost/KWH (G) Less 8.5 cents/KWH $0.2796 Lesser of (H) or 44 cents/KWH 40.2798 Average Class Rates (Arrendix 3) Residential Commercial Lesser of: Residanti2l Commercial $9. 5050 #9+3050 Class Fower Cost Equalization Fer KWH Fayable bs AFA (1) (I) x 95%» or (J) #0,2458 $0,2658 198,351 399107 $0.19772 362468 $0,1839 $0.3810 $0.2950 $0.29760 $0,3050 $0,3050 $0,2812 $0,.2812 WS-1L»s APPENDIX 1 TATITLEK ELECTRIC COMPANY SCHEDULE OF ELIGIELE FOWER COSTS, SALES AND EFFICIENCY FOR FERIOL ENDING FEBRUARY 28, 1987 NOTES See Arrendix 2A for instructions and detail. Fuel Costs: Nor Fersonnel Coats Fower Flant Farts & Surrlies Rersirs end heintenance General and Administrative Terrecistion Uncollectidle Accounts Other - Fuel Delivery Totsl Nonm-Fuel Costs Fuel Costs? Gellons Consumed for Flectric Generetion Frice of Fueli (cents rer gallon) Weisnted Aversse $0.8634 Frior Commission Lletermination 6/16/89 31289 786 10,800 391107 387521 0.8634 (See Arrendix 2A for instructions) Nost Recent Price NOT AFFLICABLE fiste Furchased Tolal Cost of Fuel ( I X J) NWH Seles Efficiency (0 / I) 33,259 Steff AdJjustments 0.0833 31209 S-2,) APPENDIX 10,800 391107 38,521 0.9467 341468 9 WS-3 (APPENDIX 1) TATITLEK ELECTRIC COMFANY FOWER COST EQUALIZATION CALCULATION FOR FERION ENDING DECEMBER 31% 1987 Total KWH Generated Total KWH Sold (Arrendix 2) Total Nonm-Fuel Costs (Appendix 2) Non-Fuel Cost/KWH (C / B) Total Fuel Costs (Arprendix 2) Fuel Costs/KWH (E / &) Elisible Costs/KWH (I + F) Elisible Cost/KWH (G) Less 8.5 cents/KWH Lesser of (H) or 44 cents/KWH Average Class Rates (Arrendix 3) Residential Commercial Class Fower Cost Eaualization Fer KWH Fayable by AFA Lesser of? (1) (1) Residential Commercial x 9S%9 or (J) Frior Utility Staff Commission Reauest Recommendation Determination 198,351 16717049 1827176 399107 359275 359275 $0.1972 $0.2112 0.1936 339259 277850 367012 $0.1477 $0+.1667 $0.1977 $0.3648 $0.3779 $0.3913 $0.2798 $0.2929 $0.3063 $0.2798 $0.2929 0.3063 $0.3050 $0.3050 $0.3050 $0.3050 0.3050 $0.3050 $0.2458 $0.2782 0.29710 $0.2782 $0.2910 GPL 0. F. TATITLEK SCHEDULE OF ELIGIELE FOR FERKIOU FOWE ELECTRIC CONFANY kK COSTS, SALES ANU EFFICIENCY ENDING DECEMBER NOTES See Arrendix 2A for instructions and detail Won-Fuel Costs? Fersonnel Costs Fower Flant Farts & Surrlies Rerairs and Maintenance General and Administrative Tlerreciation Uncollectible Accounts Other - Fuel Delivery Total Non-Fuel Costs Fuel Costs? Gallons Consumed for Electric Generation Frice of Fueli (cents rer gallon) Weishted Average Frior Commission Determination 37289 786 191800 399107 389521 $0.8634 (See Arrendix 2A for instructions) Most Recent Frice [late Furchased February 12+ Total Cost of Fuel ( I X J) KWH Sales Efficiency (0 / I) 1989 339259 198,351 Sl, 1787 Fer Utility 30*790 $0.9045 40.89 ro N a cn o 1671049 5.43 Statt AdJjustments W5-4 (APPENDIX 2) 3+605 $0.1425 81162 157127 34,395 $1,0470 $1.24 367012 1827178 5.30 Ky TATITLEK ELECTRIC COMPANY POWER COST EQUALIZATION CALCULATION FOR FERION ENDING DECEMBER 31, 1988 Prior Utility Commission Reauest Determination = wo 1 un » APPENDIX 1 Staff Recommendation Total KWH Generated Total KWH Sold (Arprendix 2) 1989351 1701486 Total Non-Fuel Costs (Arrendix 2) 395107 509533 Non-Fuel Cost/KWH (C / B) $0.1972 $0.2954 Total Fuel Costs (Arrendix 2) 339259 357458 Fuel Costs/KWH (E / RB) $0.1677 #0.2080 Eligible Costs/KWH (D + F) $0.3648 $0.5044 Elisible Cost/KWH (G6) Less 8.5 cents/KWH $0.2798 $0.4194 Lesser of (H) or 44 cents/KWH $0.2798 $0.4194 Averase Class Rates (Arrendix 3) Residential $0.3050 $0,.3050 Commercial $0.3050 $0.3050 Class Fower Cost Eaualizstion Fer KWH Fayable by APA Lesser of (1) (1) «x 95%) or (J) Residential #0,2658 $0.3050 $0.3050 Commercial $0.2458 $0,2166 357057 $0.1678 $0.3844 $0.2994 $0.2994 $0.3050 $0.3050 $0.2844 $0.2844 NOTE: Non -Fuel Costs? TATITLEK ELECTRIC COMFANY SCHEDULE OF ELIGIBLE FOWER COSTS» SALES FOR FERION ENDING DECEMBER See Arrendix 2A for instructions and detail. Prior Commission Determination Fersonnel Costs 247232 Fower Flant Farts & Surrlies Rerairs and Maintenance 37289 General and Administrative 785 lerreciation Interest Exrense Other - Fuel Delivery 107800 Total Nonm-Fuel Costs 391107 Fuel Costs? Gallons Consumed for Electric Generation 387521 Frice of Fuel: (cents per gallon) $0,.8634 Weighted Average (See Arrendix 2A for instructions) Most Recent Frice ate Furchased February 127 1989 Total Cost of Fuel ¢( I X J) 331259 KWH Sales 198,351 Efficiency (0 / I) S15 AND EFFICIENCY 31, 1968 Fer Utility 235265 14,908 107019 27341 33,483 1707486 5.09 Start Adjustments (S302) (51302) (402) 38,382 WS-6, APPENDIX 2 141908 41717 29341 337483 $1.0470 208,868 6.24 TATITLEK ELECTRIC COMFANY POWER COST EQUALIZATION CALCULATION FOR FERION ENDING DECEMBER 31,7 Total KWH Generated Total KWH Sold (Arprendix 2) Total Non-Fuel Costs (Arrendix 2) Non-Fuel Cost/KWH (C / B) Total Fuel Costs (Aprendix 2) Fuel Costs/KWH (E / B) Eligible Costs/KWH (I + F) Elisible Cost/KWH (G) Less 8.5 cents/KWH Lesser of (H) or 44 cents/KWH Average Class Rates (Arrendix 3) Prior Commission letermination 198,351 399107 $0.1972 339259 $0.1677 0.3648 $0.2798 $0.2798 $0.3050 Class Fower Cost Eaualization Fer KWH Payable bs AFA Lesser of} (1) (I) «x 95%») or (J) $0.2658 1988 Utility Reauest 1707488 907533 $0.2964 357458 $0.2080 $0.5044 $0.4194 $0.4194 $0.3050 $0.3050 WS-7» APFENTIIX 1 Steff Recommendation 2087868 457231 $0.2156 $0.1678 $0.3844 $0.2994 $0.2994 $0,1250 40.1250 Non-Fuel Costs?! Determi TATITLEK ELECTRIC COMFANY SCHEDULE OF ELIGIBLE FOWER COSTS» SALES AND EFFICIENCY FOR FERION ENDING DECEMBER NOTE: See Arrendix 2A for instructions and detail. Frior Commission ation Fersonnel Costs 241232 Fower Flant Farts & Surrlies Rerairs and Maintenance 3289 General and Administrative 786 Derreciation Interest Exrense Other - Fuel Delivery 10,800 Total Non-Fuel Costs 39107 Fuel Costs: Gallons Consumed for Electric Generation 39*521 Frice of Fuels (cenis rer gallon) $0.8634 Weishted Averase N/A (See Arrendix 2A for instructions) Most Recent Frice [late Furchased February 12, 1989 Totul Cost of Fuel ¢( I X J) 331259 KWH Sales 1987351 Efficiency (0 / I) Se1S 31, 1988 Fer Utility 14,908 10,019 Qr3al 331483 $1,059 357458 170+486 509 Start Adjustments (402) 387382 WS-8r AFFENDIX 2 14,7908 41717 27341 3354283 $1,.0470 1.240 351057 208,868 6.24 WS-9»s AFFENDIX 1 TATITLEK ELECTRIC COMFANY FOWER COST EQUALIZATION CALCULATION FOR FERIOU ENDING DECEMBER 31, 1988 Prior Utility Staff Commission Reauest Recommendation Letermination Total KWH Generated Total KWH Sold (Appendix 2) 1987351 170%486 2085868 Total Nonm-Fuel Costs (Appendix 2) 397107 509533 457231 Non-Fuel Cost/KWH (C / B) $0.1972 $0.2964 $0.2166 Total Fuel Costs (Arrendix 2) 9 ° 9 Fuel Costs/KWH (E / B) $0.0000 $0.0000 $0.0000 Eligible Costs/KWH (I) + F) $0.1972 #0.2964 $0+.2166 Elisdible Cost/KWH (G) Less 8.5 cents/KWH $0.1122 $0.2114 $0,1316 Lesser of (H) or 44 cents/KWH $0.1122 0.2114 $0.1316 fverase Class Rates (Arrendix 3) $0.3050 $0,.1250 $0.1250 Class Fower Cost Eaualization Per KWH Fayable by APA Lesser off (1) (I) «x 95% or (J) $0.1066 #0.1250 $0,.1250 A. BE, TATITLEK ELECTRIC COMFANY SCHEDULE OF ELIGIELE FOWER COSTS, SALES ANI EFFICIENCY FOR FERION ENDING NECEMBER NOTES See Arrendix 2A for instructions and detail Hou-Fuel Costs: Fersonmel Costs Fower Plant Parts & Supplies Rerairs and Maintenance General and Administrative [lerreciation Interest Exrense Other - Fuel Delivery Total Non-Fuel Costs Fuel Costs? Gallons Consumed for Electric Generation Frice of Fuels (cents rer gallon) Weighted Average N/A rior Commission Rtetermination 3,289 786 10,800 391107 387521. (See Arrendix 2A for instructions) Most Kecent Frice fate Furchased May 1+ 1989 Total Cost of Fuel ( I X J) KWH Sales Efficiency (0 / I) 1985351 31, 1988 Fer Utilits an ° wn a w 335483 $0.000 1707486 5.09 Steff AdJustments (51302) 38,382 WS-10+ AFFENDIX 2 14,908 49717 29341 33,483 $0,000 208,869 6424 C Alternate Form Appendix 2A Page 1 of 2 UTILITY NAME: TTodi tlek Fleclricg, Ubi Thy DETAIL SCHEDULE OF ELIGIBLE POWER costs TEST PERIOD \= $) — 427 g4 NOTE: Attach additional sheets if more room is needed for detail. Personnel Costs Employee Name NON-FUEL COSTS Job Description 5) A. B. Cc. Other (Describe) Employer Portion of Pa Current Wage (Hour/Month) 1) Keuin Grongr. our FI o 200/ mo. 2) Ge Qn: ‘ 3) 4) Total Compensation During Test Period (Add 1-5) yroll Taxes (ESC, FICA, FUTA) TOTAL Pers. Costs (To Alt. Form Appdx. 2, Line A) Power Plant Parts and Supplies D. Lube Oil E. Oil Filters/Fuel Filters F. Small Tools (Under “1, G. Other (Describe) Soyer cdhuru; cea, TOTAL Parts & Supply od (To Alt Form Repairs and Maintenance H. Amortization of Major Overhauls I. Emergency Repairs J. Routine Maintenance K. Other (Describe) TOTAL Repair & Maint.(To Alt Form Appdx. 2, Line Cc) General and Administrative L. Outside Professional Services Insurance Office Supplies O. Office Rent P. Travel Q. Other (Describe) ied Compensation During Test Period 12 000% Geno | TOTAL Gen. & Admin. (To Alt Form Appdx. 2, Line p) U42;3Y4./77 BF.27S5 Alternate Form Appendix 2A Page 1 of 2 UTILITY_N. : = st, - DETAIL SCHEDULE OF ELIGIBLE POWER COSTS TEST PERIOD -|(- 2- = NOTE: Attach additional sheets if more room is needed for detail. NON-FUEL Costs see COSTS Personnel Costs Compensation Employee Name Job Description Current Wage During | (Hour/Month) Test Berto 2s in Sompecie tt Power ant QAesoedor BGOOO= qWD00 2) Hel vs ae gbO00 OLA 3) monn GO bg oh wnt Bo> 2900 2200 2a 4) 5). _ —____ —— —___ ——__ A. Total Compensation During Test Period (Add 1-5) = = B. Employer Portion of Payroll Taxes (ESC, FICA, FUTA) 17 cis TOTAL Pers. Costs (To Alt. Form Appdx. 2, Line A) 23,245 — Power Plant Parts and Supplies D. Lube Oil 912.00 E. Oil Filters/Fuel Filters F. Small Tools (Under $200) G. Other (Describe) Oram a RORY SU,908, \6_ TOTAL Parts & Supply (To me Form Appax. 2, Line B) IS, £20.10 Repairs and Maintenance H. Amortization of Major Overhauls I. Emergency Repairs J. Routine Maintenance : . id O14. 33 K. . Other (Describe) / —— TOTAL Repair & Maint. (To Alt Form Appdx. 2, Line C) 10.0) 9 33 General and Administrative L. Outside Professional Services M. Insurance _ N. Office Supplies = 6S 3R O. Office Rent P. Travel = 2 Q. Other (Describe) re TOTAL Gen. & Admin. (To Alt Form Appdx. 2, Line D) LDaAul-oo 7mm a C C Appendix 3 COMPUTATION OF AVERAGE CLASS RATE PER KWH PRioR To MAY /, 1939 UTILITY: TATITLEK ELECTRIC COMPANY RATE SCHEDULE: RESIDENTIAL 1 4 7 AVG. RATE ($/KWH) LESS $.085/KWH KWH 750 Sa ete (A) : (E) TOTAL 750 292.50 0.39 0.305 RATE SCHEDULE: COMMERCIAL 2 3 4 5 6 7 TOTAL RATE TOTAL AVG. RATE| AVERAGE KWH RATE SURCHARGE| ($/KWH) (S$) ($/KWH) ($/KWH) LESS BY BLOCK $/KWH) ($/KWH 2+3) (1X4) (E) /(A) $.085/KWH 750 __0.39 0.39 _292.50__ See Eee Ie eet Sats | eae — "|! | (A) (E) TOTAL 750 292.50 0.39 0.305 RATE SCHEDULE: 3 4 5 6 7 TOTAL RATE TOTAL AVG. RATE] AVERAGE ($) ($/KWH) ($/KWH) LESS 1x4 (E)/(A) $.085/KWH ee eee (A) (E) TOTAL 750 ——— iz € C Appendix 3 COMPUTATION OF AVERAGE CLASS RATE PER KWH Effective May 1, 1989 UTILITY: TATITLEK ELECTRIC COMPANY RATE SCHEDULE: RESIDENTIAL 3 4 TOTAL RATE 5 6 7 TOTAL AVG. RATE| AVG. RATE ($) ($/KWH) ($/KWH) LESS BY BLOCK (E) /(A) $.085/KWH __157.50_ (A) (E) TOTAL 750 157.50 0.21 0.125 RATE SCHEDULE: COMMERCIAL 1 3 4 5 6 7 TOTAL RATE TOTAL AVG. RATE| AVERAGE ($/KWH) ($) ($/KWH) ($/KWH) LESS (2+3) (1X4) E)/(A) $.085/KWH 0.21 _157.50 SPGQ HT ees TOTAL 750 157.50 0.21 0.125 RATE SCHEDULE: 1 3 4 5 6 7 TOTAL RATE TOTAL AVG. RATE| AVERAGE KWH SURCHARGE] ($/KWH) ($) ($/KWH) ($/KWH) LESS BY BLOCK KWH (2+3) (1x4 E)/(A $.085/KWH (A) (E) TOTAL 750 |