Document
The base revenue 13
CSF-8
requirements addressed in this filing reflect the fixed costs of 1
providing utility services to our customers and therefore are not 2
dependent upon a customers kWh usage. 3
4
Demand Charges ($/kW): A demand charge is for costs of the 5
energy infrastructure used distribution, transmission, and 6
capacity-related power generation to deliver energy service and 7
to meet a customers peak energy demand., A cost-based rate design would 17
include the charges described above energy/volumetric rates, demand 18
charges, and monthly service/customer charges., Any increase to monthly service charges would 1
result in a compensating decrease to energy and demand charges to 2
ensure the rate design remains revenue neutral, that is, the rates 3
developed will continue to recover the same allocated costs of service for 4
the customer class., A rate structure that has a higher monthly service, or 5
fixed, charge can reduce month-to-month bill volatility that may result from 6
changes in usage and/or demand from month to month. 7
Table 5:
Current and Cost-Based Monthly Service Charges Electric
Current Cost- Based Change
($)
Change
(%)
RESIDENTIAL
$4.20 $9.94 $5.74 136.7%
GS‐1: SECONDARY
Non‐Demand
$6.00 $10.43‐10.51
5
$4.43‐4.51 73.8‐75.1%
Demand
$8.70 $49.28‐$57.18
6
$40.58‐48.48 466.4‐557.2%
GS‐1: PRIMARY
Non‐Demand
$8.80 $14.57 $5.77 65.6%
Demand
$27.70 $269.85‐
$508.76
7
$242.15‐
481.06
874.2‐
1,736.7%
GS‐2 SUBSTATION
$225.00 $1,613.74 $1,388.74 617.2%
GS‐2 TRANSMISSION
$1,380.00 $2,083.87 $703.87 51.0%
IRRIGATION
Non‐Demand
$45.20 $58.72 $13.52 29.9%
Demand
$106.50 $228.35 $121.85 114.4%
5
This reflects the difference between choice and non-choice customers with $10.43 for
GS1 Sec Non Dmd Choice and $10.51 for GS1 Sec Non Dmd Non Choice.
6
This reflects the difference between, It can impact the bills customers will pay 8
due to changes in the manner (i.e., energy charge, demand 9
charge, and/or monthly service fee) by which NorthWestern seeks 10
to recover cost of service from customers. 11
Further details regarding customer bill impacts are discussed by Mr. 12
Durkin. 13
14
Q.