City Commission

OTTAWA CITY COMMISSION REGULAR MEETING AGENDA Wednesday, February 1, 2023 - 7:00 pm Ottawa City Hall - 101 S. Hickory Citizens may in person, via Zoom or submit comments (300 In accordance with Kansas Open Meetings Act (KOMA), the words or less) for the City Commission to be read during public meeting can be viewed live on Channel 23 and via Facebook Live comment or during discussion on an agenda item. or listened to by dialing: 1-312-626-6799 and entering meeting ID 979 6273 3505#. To view on YouTube: https:// To submit your comment or request the meeting Zoom link to www.youtube.com/@ottawaksgov give a public comment, email publiccomments@ottawaks.gov no later than 4:00 pm on February 1, 2023; all emails must If you need this information in another format or require a include your name and address. reasonable accommodation to attend this meeting, contact the Participants who generate unwanted or distracting City’s ADA Coordinator at 785-229-3621. Please provide advance noises may be muted by the meeting host. If this happens, notice of at least two (2) working days. TTY users please call 711. unmute yourself when you wish to speak. 1. Call to Order 2. Roll Call ____ Crowley ____ Skidmore ____ Graves ____ Caylor ____ Clayton 3. Welcome 4. Pledge of Allegiance 5. Invocation - Reverend Bob Colerick, First Christian Church (via Zoom) CONSENT AGENDA 6. Minutes A. January 9, 2023 Study Session B. January 18, 2023 Regular Meeting C. January 23, 2023 Study Session 7. Appointment of Carla Griffith to Board of Zoning Appeals 8. Board and Commission Assignments for 2023 Comments: The Mayor and Commission have chosen to be assigned to the following Boards and Commissions: Airport Advisory Board – Mayor Pro Tem Skidmore Chamber of Commerce - Mayor Pro Tem Skidmore Franklin County Development Council - Mayor Crowley Kansas Municipal Energy Agency – Commissioner Caylor Library Board - Mayor Crowley Neighborhood Revitalization Committee - Commissioner Caylor Ottawa Main Street Association - Commissioner Clayton Ottawa Memorial Auditorium Advisory Board - Commissioner Graves Play Task Force - Mayor Pro Tem Skidmore Prairie Paws Animal Shelter - Commissioner Clayton 9. Agenda Approval Motion: __________ Second: __________ Vote: __________ *All presentation materials to be reviewed at this meeting (including PowerPoint) must be emailed to presentations@ottawaks.gov and gmathews@ottawaks.gov at least the day prior to the meeting. 2.1.23 Agenda Pkt Page #1 REGULAR AGENDA * 10. Public Comments Subject to the above restrictions, persons who wish to address the City Commission regarding items on the agenda may do so as that agenda item is called. Persons who wish to address the City Commission regarding items not on the agenda and that are under the jurisdiction of the City Commission may do so at this time when called upon by the Mayor. Comments on personnel matters and matters pending in court or with other outside tribunals are not permitted. Speakers are limited to three minutes. Any presentation is for infor- mation purposes only. The Governing Body will take comments under advisement. 11. Declaration At this time, I’d like to give the Commissioners a chance to declare any conflict or communication they’ve had that might influence their ability to consider today’s issues impartially. NEW BUSINESS 12. Proclamation Recognizing February 2023 as Black History Month Comments: February has been set aside nationally for Black History Month to allow an opportunity for citizens to become aware of the contributions African-Americans have made. Richard Jackson will accept the proclamation. 13. Request for Approval of Bid Recommendation to Complete a Comprehensive Fire Department Study - Chief Matthias / Melanie Landis Comments: Staff recommends approval of bid by the Center of Public Safety Management (CPSM) to complete a comprehensive fire department study. Motion: __________ Second: __________ Vote: __________ 14. Request for Approval of Hidden Lakes Subdivision Preliminary Plat Phase I - Melanie Landis / Dennis Tharp Comments: The preliminary plat requires City Commission approval due to a requested variance to subdivision regulations. The proposed development will include 24 single-family residential lots located east of S. Princeton and E. 19th Street intersection. Motion: __________ Second: __________ Vote: __________ 15. Request for Approval of Resolution for Electric Service Rates - Melanie Landis / Dennis Tharp (Pp. 3 - 20) Comments: Staff will review proposed changes to electric service rates. Motion: __________ Second: __________ Vote: __________ 16. Comments by City Manager 17. Comments by City Commissioners 18. Comments by Mayor ANNOUNCEMENTS 1. February 6, 2023 Study Session - 4:00 pm, City Hall 2. February 13, 2023 Study Session - 4:00 pm, City Hall 3. February 15, 2023 Regular Meeting - 10:00 am, City Hall ADJOURN *All presentation materials to be reviewed at this meeting (including PowerPoint) must be emailed to presentations@ottawaks.gov and gmathews@ottawaks.gov at least the day prior to the meeting. 2.1.23 Agenda Pkt Page #2  MEMORANDUM TO: RICHARD U. NIENSTEDT AND THE HONORABLE CITY COMMISSION FROM: MELANIE LANDIS, FINANCE DIRECTOR DENNIS THARP, DIRECTOR OF UTILITIES SUBJECT: ELECTRIC RATE RESOLUTION DATE: JANUARY 26, 2023 BACKGROUND: The City owns and operates an electric utility which includes production and distribution. Operations and capital improvements are funded through the collection of user fees for electric services. City staff has presented a financial update to the City Commission and determined that rate increases are necessary to maintain current service levels and accomplish capital improvements over the next five years. RECOMMENDATION: The proposed rate resolution was prepared based on discussion and review of several options and reflects the following changes: • Terminology change from Customer Charge to Base Charge • Base Charge unchanged • Demand Charge for Large Power User classification unchanged. • Annual rate increase for the Energy Charge in all rate classifications of the following: o 2023 – 6% o 2024 – 6% o 2025 – 6% o 2026 – 6% o 2027 – 6% • Implementation would take place in March of each year The proposed rate resolution is under review by the City Attorney and any language changes will be brought to the Commission prior to approval. It is the recommendation of staff that the City Commission consider approval of a water rate resolution at the February 1st regular meeting. 2.1.23 Agenda Pkt Page #3  REVISED RESOLUTION NO. ______________ A RESOLUTION FINDING THE ADVISABILITY OF AND ORDERING THE ADOPTION OF APPLICABLE RATES, CHARGES, RULES AND REGULATIONS, CONDITIONS AND AVAILABILITY OF THE SERVICES RENDERED BY THE ELECTRIC DEPARTMENT OF THE CITY OF OTTAWA, KANSAS, AND ESTABLISHING AN EFFECTIVE DATE THEREFORE, AND PROVIDING FOR THE ENFORCEMENT THEREOF AND RESCINDING PRIOR RESOLUTIONS. Whereas, Chapter 13, Article III, of the Code of the City of Ottawa, Kansas, 2015 edition, provides for the establishment of rates, conditions of service, rules and regulations pertaining to the availability of electrical service to be set by resolution of the Governing Body of the City of Ottawa. Now, therefore, be it resolved by the Governing Body of the City of Ottawa: Section 1: Electrical service furnished by the Utilities Department of the city shall be furnished in accordance with rates, charges, rules and regulations, conditions and availability provided for in this resolution. Section 2: Electrical service shall be grouped and identified by the following classifications evidenced by schedules so designated, which are attached to this resolution and incorporated herein, the same as if fully set out. Residential – Urban RU Residential – Rural RR General Service/Small – Urban GS/SU General Service/Small – Rural GS/SR General Service/Large GS/L Special Contract Power SCP School and City Use SC Street Lighting SL Area Lighting AL Electric Service Fee ESF Energy Cost Adjustment Clause ECA Section 3: The City Manager, or his or her designee, is charged with the enforcement of these rates, charges, rules and regulations, conditions and availability for specified quantities. Section 4: The rates, charges, rules and regulations, conditions and availability for specified quantities shall remain in full force and effect until rescinded or modified by subsequent resolution(s) of the Governing Body of the City of Ottawa, Kansas. 2.1.23 Agenda Pkt Page #4 Section 5: This resolution shall take effect and be in full force and effect for all accounts in which the bills are created according to the following steps as indicated within the designated rate schedules: 2023: On or after March 1, 2023 2024: On or after March 1, 2024 2025: On or after March 1, 2025 2026: On or after March 1, 2026 2027: On or after March 1, 2027 Section 6: The Governing Body shall review the rates, charges, rules and regulations, conditions and availability for specified quantities not less than annually and not less than 60 days prior to any step increase scheduled in this resolution. Section 7: Prior resolutions on this subject are hereby rescinded when in conflict with this resolution, and all other rates, charges, rules and regulations, conditions and availability for specified electrical service which are in conflict with the rates, charges, rules and regulations, conditions and availability for specified electrical service set out herein are rescinded. Adopted this _______________ day of __________________ 2023. __________________________ Mayor ATTEST: _____________________________ City Clerk 2.1.23 Agenda Pkt Page #5  RESIDENTIAL – URBAN (RU) 2023 2024 2025 2026 2027 Base Charge: $ 15.50 $ 15.50 $ 15.50 $ 15.50 $ 15.50 Energy Charge (c/kwh/mo): First 2000 kwh/mo @ 0.1008 0.1069 0.1133 0.1201 0.1273 Over 2000 kwh/mo @ 0.1052 0.1115 0.1181 0.1252 0.1328 (Plus applicable Energy Cost Adjustment Charges) Minimum Bill: The base charge Available: Within the city limits of Ottawa Application: a) To all residential consumers, including rooming houses, with two or fewer units available for rent, apartment buildings and trailer courts, for customary domestic uses. b) To any combination residential and business consumer otherwise complying with residential zoning restrictions, where rendering of services and production or handling of goods is only incidental to domestic uses, and none other than the resident is employed thereat. Service Conditions: a) Each dwelling unit (i.e. house, duplex, apartment unit, trailer, etc.) is to be individually metered and billed. b) All uses are to be metered through a single meter. (For existing arrangements with more than one meter, the readings shall be added together.) c) Such voltage and phase as the Utility has immediately available to the site will be furnished without additional charge. d) Single-phase service shall not be utilized on individual motors of over 5 horsepower nor, for non-lighting loads aggregating over 20 kw (rated), except by special permission at the sole discretion of the Utility. All motors over 1.5 horsepower are to be nominal 220V. 2.1.23 Agenda Pkt Page #6  RESIDENTIAL – RURAL (RR) 2023 2024 2025 2026 2027 Base Charge: $ 21.40 $ 21.40 $ 21.40 $ 21.40 $ 21.40 Energy Charge (c/kwh/mo): First 2000 kwh/mo @ 0.1040 0.1102 0.1168 0.1238 0.1313 Over 2000 kwh/mo @ 0.1084 0.1149 0.1218 0.1292 0.1369 (Plus applicable Energy Cost Adjustment Charges) Minimum Bill: The base charge Available: All qualified consumers outside Ottawa. Application: a) To all residential consumers, including rooming houses, with two or fewer units available for rent, apartment buildings and trailer courts, for customary domestic uses. b) To any combination residential and business consumer otherwise complying with residential zoning restrictions, where rendering of services and production or handling of goods is only incidental to domestic uses, and no one other than the resident is employed thereat. c) To any farm consumer, for domestic plus customary farm uses, where consumption does not exceed 10,000 kwh per month or metered demand does not exceed 30 kw in any two-summer months in any year (these being the months of May through September.) Service Conditions: a) Each dwelling unit (i.e. house, duplex, apartment unit, trailer, etc.) is to be individually metered and billed. b) All uses are to be metered through a single meter. (For existing arrangements with more than one meter, the readings shall be added together.) c) Such voltage and phase as the Utility has immediately available to the site will be furnished without additional charge. d) Single-phase service shall not be utilized on individual motors of over 5 horsepower, nor for non-lighting loads aggregating over 20 kw (rated), except by special permission at the sole discretion of the Utility. All motors over 1.5 horsepower are to be nominal 220V. 2.1.23 Agenda Pkt Page #7  GENERAL SERVICE/SMALL – URBAN (GS-SU) 2023 2024 2025 2026 2027 Base Charge: $ 22.50 $ 22.50 $ 22.50 $ 22.50 $ 22.50 Energy Charge (c/kwh/mo): First 200 kwh/mo @ 0.1093 0.1158 0.1228 0.1302 0.1380 Next 800 kwh/mo @ 0.1053 0.1116 0.1183 0.1254 0.1329 Next 4000 kwh/mo @ 0.0995 0.1055 0.1118 0.1185 0.1257 Next 5000 kwh/mo @ 0.0979 0.1038 0.1100 0.1167 0.1237 Over 10,000 kwh/mo @ 0.0952 0.1009 0.1070 0.1134 0.1202 (Plus applicable Energy Cost Adjustment Charges) Minimum Bill: 25% of the highest monthly bill in the immediately prior summer (May through September), but not less than the base charge, plus any applicable Energy Cost Adjustment charges. Available: Within the city limits of Ottawa. Application: a) To all business and institutional users, unless classified as Residential, General Service/Large, or School and City. b) To any combination residential and business consumer not qualifying as Residential, or who elects to be classified hereunder. Service Conditions: a) All uses at any one contiguous location are to be metered through a single meter, except at the Utility’s sole option to do otherwise. (For such multi-meter arrangements, readings shall be added together.) b) Each meter is to be considered an individual customer (unless the Utility has opted to install more than one meter at one contiguous location.) c) Such voltage and phase as the Utility has immediately available to the site will be furnished without additional charge. d) Single-phase service shall not be utilized on individual motors of over 5 horsepower, nor for non-lighting loads aggregating over 20 kw (rated), except by special permission at the sole discretion of the Utility. All motors over 1.5 horsepower are to be nominal 220V. 2.1.23 Agenda Pkt Page #8 e) Lighting loads aggregating over 10 kw on multi-phase service shall be balanced between phases. f) Customers operating equipment having a highly fluctuating or large instantaneous demand, or power factor regularly lower than 80%, or which require electric service of quality exceeding customary industry standards, shall be required to provide adequate corrective equipment or isolating transformers, or as otherwise found necessary so as to not unduly interfere with or be affected by customary service to other customers. 2.1.23 Agenda Pkt Page #9  GENERAL SERVICE/SMALL – RURAL (GS-SR) 2023 2024 2025 2026 2027 Base Charge: $ 25.35 $ 25.35 $ 25.35 $ 25.35 $ 25.35 Energy Charge (c/kwh/mo): First 200 kwh/mo @ 0.1155 0.1225 0.1298 0.1376 0.1459 Next 800 kwh/mo @ 0.1068 0.1133 0.1201 0.1273 0.1349 Next 4000 kwh/mo @ 0.1011 0.1072 0.1136 0.1204 0.1277 Next 5000 kwh/mo @ 0.0996 0.1056 0.1120 0.1187 0.1258 Over 10,000 kwh/mo @ 0.0966 0.1024 0.1085 0.1150 0.1219 (Plus applicable Energy Cost Adjustment Charges) Minimum Bill: 25% of the highest monthly bill in the immediately prior summer (May through September), but not less than the base charge, plus any applicable Energy Cost Adjustment charges. Available: All qualified consumers outside Ottawa Application: a) To all business and institutional users, unless classified as Residential, General Service/Large, or School and City. b) To any combination residential and business consumer not qualifying as Residential, or who elects to be classified hereunder. c) To any farm consumer not qualifying as Residential-Rural, or who elects to be billed hereunder. Service Conditions: a) All uses at any one contiguous location are to be metered through a single meter, except at the Utility’s sole option to do otherwise. (For such multi-meter arrangements, readings shall be added together.) b) Each meter is to be considered an individual customer (unless the Utility has opted to install more than one meter at one contiguous location.) c) Such voltage and phase as the Utility has immediately available to the site will be furnished without additional charge. d) Single-phase service shall not be utilized on individual motors of over 5 horsepower, nor for non-lighting loads aggregating over 20 kw (rated), except by special permission at the sole discretion of the Utility. All motors over 1.5 horsepower are to be nominal 220V. 2.1.23 Agenda Pkt Page #10 e) Lighting loads aggregating over 10 kw on multi-phase service shall be balanced between phases. f) Customers operating equipment having a highly fluctuating or large instantaneous demand, or power factor regularly exceeding customary industry standards, shall be required to provide adequate corrective equipment or isolating transformers, or as otherwise found necessary so as to not unduly interfere with or be affected by customary service to other customers. 2.1.23 Agenda Pkt Page #11  GENERAL SERVICE/LARGE (GS-L) 2023 2024 2025 2026 2027 Base Charge: $ 150.00 $ 150.00 $ 150.00 $ 150.00 $ 150.00 Demand Charge ($/kw/mo): First 40 kw/mo @ 8.25 8.25 8.25 8.25 8.25 Next 110 kw/mo @ 8.82 8.82 8.82 8.82 8.82 Over 150 kw/mo @ 9.38 9.38 9.38 9.38 9.38 Energy Charge (c/kwh/mo): First 50,000 kwh/mo @ 0.0637 0.0675 0.0716 0.0759 0.0804 Next 50,000 kwh/mo @ 0.0606 0.0643 0.0681 0.0722 0.0765 Next 100,000 kwh/mo @ 0.0585 0.0620 0.0657 0.0697 0.0739 Over 200,000 kwh/mo @ 0.0519 0.0551 0.0584 0.0619 0.0656 (Plus applicable Energy Cost Adjustment Charges) Minimum Bill: The base charge plus the Demand charge (unless a higher minimum has been stipulated in an individually negotiated contract). Determination of Billing Demand: The maximum metered 15-minute demand in the month (corrected for power factor, as appropriate), but not less than 60% of the highest demand established in the most recent prior 12 month period. Discounts: a) A credit of 1.5% of the total charge shall be granted for primary metering. b) A credit of 3.5% of the demand charge only shall be granted for customer ownership, installation and maintenance of transformers and low voltage service entrance. Power Factor Adjustment: The rates set forth in this schedule are based on the maintenance by the customer of a power factor of not less than 80% at all times. If it is determined by measurement that the power factor at time of customer’s peak load is less than 80%, the metered demand shall be increased by the ratio of 80% to the customer’s power factor. Available: At any location on the electric system. 2.1.23 Agenda Pkt Page #12 Application: a) To all business, institutional and farm users which elect, by signed request, to be served hereunder. Such commitment shall be not less than of 12 months duration, renewable automatically and indefinitely, until rescinded by the customer. b) To such other business, institutional and farm users as are assigned to this classification at the sole discretion of the Utility. Criteria for such assignment are: i) Whenever the customer’s metered demand in any summer month (May through September) exceeds 40 kw; or ii) Whenever the average power factor during the period of customer’s annual peak demand is measured as less than 80%; or iii) Whenever, in the judgment and sole discretion of the Utility, the customer requests or exhibits any abnormal service conditions, capacities or voltage requirement. iv) The Utility, at its sole discretion and cost, may install needed metering whenever consumption in any summer month (May through September) exceeds 10,000kwh. Service Conditions: a) All uses at any one contiguous location are to be metered through a single meter, except at the Utility’s sole option to do otherwise. (For such multi-meter arrangements, readings shall be added together.) b) Each meter is to be considered an individual customer (unless the Utility has opted to install more than one meter at one contiguous location.) c) Such voltage and phase as the Utility has immediately available to the site will be furnished without additional charge. d) Single-phase service shall not be utilized on individual motors of over 5 horsepower, nor for non-lighting loads aggregating over 20 kw (rated), except by special permission at the sole discretion of the Utility. All motors over 1.5 horsepower are to be nominal 220V. e) Lighting loads aggregating over 10 kw on multi-phase service shall be balanced between phases. f) Customers operating equipment having a highly fluctuating or large instantaneous demand, or power factor regularly lower than 80% or which require electric service of quality exceeding customary industry standards, shall be required to provide 2.1.23 Agenda Pkt Page #13  adequate corrective equipment or isolating transformers, or as otherwise found necessary so as to not unduly interfere with or be affected by customary service to other customers. Customers otherwise qualifying as General Service/Large may be granted special rated by contract, at the discretion of the City Commission. Criteria for such may include (but not be limited to) the following: a) Unusually and consistently high load factors b) Multiple-shift operations c) Interruptible service conditions d) Off-peak service conditions e) Guarantees of operations of size and character which will markedly benefit the utility and/or community Rates: Contract rates shall be predicted upon the General Service/Large schedule, insofar as the load conditions and guarantees permit. To the extent that the Utility is not forced to install additional generating capacity, nor purchase Firm capacity from others, in order to meet the additional load, demand and energy charges may be predicted upon the calculated incremental capacity and/or energy costs, with appropriate additions to cover relevant costs of service and return on investment. 2.1.23 Agenda Pkt Page #14  SCHOOL AND CITY (SC) 2023 2024 2025 2026 2027 Base Charge: $ 22.50 $ 22.50 $ 22.50 $ 22.50 $ 22.50 Energy Charge (c/kwh/mo): First 100 kwh/mo @ 0.1040 0.1102 0.1168 0.1238 0.1313 Next 100 kwh/mo @ 0.0996 0.1056 0.1120 0.1187 0.1258 Next 800 kwh/mo @ 0.0953 0.1010 0.1071 0.1135 0.1203 Next 4,000 kwh/mo @ 0.0894 0.0947 0.1004 0.1064 0.1128 Over 15,000 kwh/mo @ 0.0881 0.0934 0.0990 0.1049 0.1112 Over 20,000 kwh/mo @ 0.0853 0.0904 0.0959 0.1016 0.1077 (Plus applicable Energy Cost Adjustment Charges) Minimum Bill: The base charge Available: Any location on the Ottawa electric system. Application: a) All uses by any accredited school, including but not limited to, Unified School District 290, Ottawa, Kansas, Sacred Heart School, Ottawa University and Neosho County Community College. b) All uses by the City of Ottawa (excepting street lighting, which is served under a separate schedule, and any uses declared by the City to be exempt from service schedules). Service Conditions: a) All uses at any one contiguous location are to be metered through a single meter, except at the Utility’s sole option to do otherwise. (For such multi-meter arrangements, readings shall be added together.) b) Each meter is to be considered an individual customer (unless the Utility has opted to install more than one meter at one contiguous location.) c) Such voltage and phase as the Utility has immediately available to the site will be furnished without additional charge. d) Single-phase service shall not be utilized on individual motors of over 5 horsepower, nor for non-lighting loads aggregating over 20 kw (rated), except by 2.1.23 Agenda Pkt Page #15  special permission at the sole discretion of the Utility. All motors over 1.5 horsepower are to be nominal 220V. e) Lighting loads aggregating over 10 kw on multi-phase service shall be balanced between phases. f) Customers operating equipment having a highly fluctuating or large instantaneous demand, or power factor regularly lower than 80% or which require electric service of quality exceeding customary industry standards, shall be required to provide adequate corrective equipment or isolating transformers, or as otherwise found necessary so as to not unduly interfere with or be affected by customary service to other customers. 2.1.23 Agenda Pkt Page #16  STREET LIGHTING (SL) 2023 2024 2025 2026 2027 Base Charge: $ 8.00 $ 8.00 $ 8.00 $ 8.00 $ 8.00 (billed per meter or estimated usage for which an individual bill is computed) Unitary charge (per mo/light): $ 2.41 $ 2.55 $ 2.70 $ 2.87 $ 3.04 Energy charge (c/kwh): $4.22 $4.47 $4.74 $5.02 $5.33 (Plus applicable Energy Cost Adjustment Charges) Minimum bill: None Application: To the City of Ottawa for lighting along streets and alleys Service Conditions: All units to be furnished, installed, maintained and owned by the Utility. Includes luminaries, lamp, ballast, mast, pole controller, wiring and energy for each light, of whatever kind. 2.1.23 Agenda Pkt Page #17  AREA LIGHTING (AL) 2023 2024 2025 2026 2027 Monthly Meter Charge: $ 14.75 $ 14.75 $ 14.75 $ 14.75 $ 14.75 For each fixture (including energy) Plus Energy Cost Adjustment charges (on presumption of 75 kwh per month per fixture) For each additional pole $ 1.25 per month Minimum bill: None Available: To all classes of customers at any location on the electric system Service Condition: a) Minimum contract period: 12 months; automatically renewing. b) All units to be furnished, installed, maintained and owned by the Utility. Includes luminaries, lamp, ballast, mast, pole controller, wiring and energy for each light, of whatever kind. c) Each unit to be mercury vapor or high-pressure sodium lamp, of size and character selected by the Utility, automatically controlled. 2.1.23 Agenda Pkt Page #18  ELECTRIC SERVICE FEE (ESF) A service fee shall apply to all electric rate schedules. A service fee shall be paid by any person, business, firm or corporation each time a service trip is required. This schedule applies to trip fees and disconnection/connection services and customer account processing. The electric service fee shall be billed on the first or any subsequent bill rendered by the City of Ottawa for the electric service. Rate: Service Fee Trip Charge 10.00 Initial Connection Fee 35.00 Disconnection/Reconnection Fee 35.00 After Hours Reconnection 45.00 2.1.23 Agenda Pkt Page #19  ENERGY COST ADJUSTMENT CLAUSE (ECA) Whenever the three-month running, weighted-average cost of energy (fuel and purchased electrical energy) exceeds (or is less than) 40.0 mills/kwh sold, a charge shall be added to (or deducted from) each customer’s next monthly electric service bill in the amount of 0.105 m/kwh for each 0.1 mill, or major fraction thereof, by which said average cost exceeds (or is less than) 40.0 m/kwh. This ECA shall be applied to all users to whom bills are rendered and from whom money is normally collected; likewise, all and only the energy sold to such users shall be the basis for the determination of the average cost. Computed cost of energy shall include all the direct costs for fuel and energy purchased (including taxes and fees, surcharges or adjustments applied thereon), excepting the cost of Firm Power demand charges levied by suppliers of purchased energy where such charges reflect increments in capacity to meet capacity and associated reserve requirements of the Ottawa electric system. The running, weighted-average shall be for the most recent three consecutive months, being the sum of those energy costs actually paid in the period divided by the sum of energy sold in the same periods (there periods being the normal periods for billing and for bill payment most nearly coinciding under the City’s normal accounting practices). 2.1.23 Agenda Pkt Page #20