Agenda 03/12/2002 - Laserfiche WebLink

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· the PA rate and for the MGS rate is outlined in the following table. I am using 80KW demand and 20 thousand kwh's with a secondary voltaRe rated service connection_for the example_. Energy Charge Demand Customer Total Bill Charge Charge PA Rate $.03728 per kwh $0.00 per KW $8.27 $753.87 MGS $.02484 per kwh $3.42 per KW $18.00 $788.40 Rate 4.6% increase The memorandum to the VMLNACo APCo Steedng Committee and Representatives of Local Government and Political Subdivisions served by AEP, recommended that the City select option 3, paragraph C of the APCo/PA Settlement Agreement. Subsection 3, paragraph "aT, states that, "The rates for service from July 1,2002 through June 30,2007 shall be those contained in APCo's unbundled Standard Rate Schedules SGS, MGS, LGS, LGS-TOD and/or OL, or any successor or replacement to such Standard Rate Schedules, then on file with and approved by the Virginia State Corporation Commission, as applicable to the individual PA Customer accounts. If no such rates are on file with the VA SCC because it has terminated such rates, then the rates contained in the last applicable Standard Rate Schedule shall be charged by APCo to the PA Customer accounts through June 30,2007; provided, however, to accommodate the fuel protectfons contained in the Virginia/West Virginia Settlement Agreement, the Parties will agree to enter into good faith negotiations to develop a reasonable fuel adjustment mechanism. The fuel protections contained in the Virginia/West. Virginia Settlement Agreement will be applicable to the PA Customers when they become effective for APCo's other Virginia retail customers, through June 30,2007". It seems that the intention of this option is to provide a rate that is not as volatile, (referring to the fuel protection cap), as the market-based rates that AEP is moving to. We have to realize that the bills will be calculated at a SGS, MGS, LGS, or LGS-TOD rate and not at the old PA rate. Subsection 5 of the agreement reads as follows; Each PA Customer that elects to extend its current contract through June 30,2007, will agree that ~) it has chosen APCo to provide generation service through June 30,2007; 2) it will not choose a different generation supplier prior to June 30,2007; and 3) it will not request that the VA SCC determine rates and provisions for default service from APCo different than that provided for under its current contract, as amended herein. Nothing in the preceding sentence shall apply to preclude any PA Customer from qualifying for or receiving default service from a different default service provider in the event that such a provider has bccn named and APCo fails to deliver under the contract. The City will be agreeing, under this subsection, that we would not choose another generation supplier, before June 30,2007, to serve the installations owned by the City and outside its service territory. Since the City of Martinsville Electdc Department cannot serve customers outside its · Page 2