HomeMy WebLinkAboutminutes.council.19741203Study Session Aspen City Council December 3,1974
The meeting was called to order by Mayor Standley with Councilmembers Breasted,
DeGregorio, Markalunas and Behrendt in attendance. Also present were City Manager
Mahoney and Urban Economist Larry Simmons.
The Rocky Mountain Natural Gas rate hike was discussed. Larry Simmons advocated
that no rate increase go into effect until after a public hearing was held and
the PUC had ruled yes. Simmons listed the following questions that should be brought
out at the hearing with the PUC: Is the rate increase warranted as a cost passalong?
Is the increase warranted as a sound financial maneuver, for a better liquidity
position? Is the rate increase warranted as an increased return to stockholders?
Will the right people by paying for the increase? How much gas is on line? What
the cost is? How much will be going to the new people who had the moratorium lifted?
Will the rest of the customers be subsidizing seasonal rates?
The Council decided the City and Council should act as public advocates and have
the City Attorney draw up these questions before the PUC hearing. We have until
December 12, 1974 to file a petition for intervention.
Larry Simmons explained the situation with regard to the Colorado Ute transmission
lines. The two choices are an additional 69 KV line to the area or a 115 KV line.
Simmons pointed out there was an annual energy growth rate of 21.3 per cent per year.
In 1973 at peak load there were only 1.7 megawatts short of capacity load of the
current 69 KV line. Another 69 KV line would probably become obsolete by 1984.
Rather than support the possibility of three 69 KV lines eventually coming into
the area, Simmons supported a 115 KV line which Colorado-Ute also wants. The cost
difference is only 5 per cent, but more important in the long run are the environ-
mental impact factors. Council also supported this and asked that a Resolution be
drawn up for December 9, 1974, Council Meeting.
The Council and Staff discussed the seventeen recon%mendations at the end of
simmons~A Study of the Aspen Municipal Electric System. It was decided to have
constant rates implemented by 1979 with the front end (lowest KWH usage) paying less.
City Manager Mahoney pointed out that the City wax not using restructuring of the
rates to increase revenue but to make rates more equitable to users and to encourage
users to conserve electrical energy. The Council felt that they were not equipped
to give Simmons a figure to use in flattening out the r~%es~b~t requested that he
lower the front end and then determine how much to raise the back end - or the
larger users.
The Council concurred that the promotional rate for all-electric users should be
phased out and the electrical rate be the same as the residential rate.
It was decided not to have a different summer and winter rate; that the summer
users might be subsidizing the winter users.
It was agreed to keep the profit level in terms with the PUC profit level. This
is in percentages, not dollars. It was agreed also not to jeopardize the projected
$800,000 revenue from the electric fund.
The Council wishes to maintain the difference between the conunercial and the resi-
dential rates.
Simmons recommended a line extension policy be implemented; that a demand metering
class remain so that we can protect ourselves. Anyone using over 15,000 KWH per
month should be studied to see if they should be studied to see if they should be
on demand metering.
City Manager Mahoney suggested a $10 connect charge and $10 discounect charge.
The services involve City personnel both outside and inside City Hall.
It was summarized that the rate restructuring be held to no more than 15 per cent
increase for any and all customers. Item numbers 7 through 17 in the rate study
will be researched by City staff and will come back %o Council with final recommenda-
tions for them to act upon
Kathryn S~. Hauter, City Clerk