947.21 ECONOMIC DEVELOPMENT COST GAS UTILITY ADJUSTMENT RIDER “B” (Rider B).
(a) Economic Development Cost Adjustment (EDCA).
(1) Scope. The Gas Utility (Utility) shall recover economic development expenditures through the application of the EDCA including the sum of the Economic Development Agreement (EDA) Annual Rebates and all expenditures including funds transferred from the Utility to the City of Hamilton Department of Administrative Division of Economic Development, operating, capital improvements, investments and related debt service principal and interest payments that are paid or payable to parties other than Utility employees which are associated with the Utility’s economic development activities that are not included or recovered in base gas rate charges, Gas Cost Recovery Charge and Unfunded Governmental and Regulatory Mandates Gas Utility. Economic Development expenditures will be credited to reflect proceeds received from other entities for amounts that represent reimbursement of costs associated with economic development projects. Economic Development expenditures shall not include the salaries of Utility employees, or any benefits related thereto. Economic Development expenditures recovered by the EDCA shall be determined to be for a public purpose and benefit to the Utility. “Public purpose” and “Utility benefit” shall be determined by the Law Director and the Finance Director and approved by the Hamilton City Council. The EDCA will be applied monthly and added to gas customers monthly billing to recover the Economic Development Cost Adjustment.
(2) Application. The Utility shall review the Economic Development Cost Adjustment calculation and shall make annual projections for the succeeding period January to December (Collection Period). The Utility shall, when it deems necessary, make adjustments to the EDCA applied to customers for such period as it deems necessary to accomplish the purposes of this Rider in a timely manner.
(3) Calculation. The formula for calculating the economic development cost adjustment (EDCA) is:
EDCA = (EDC * (MWF * RCM/PTWM))/RCM/12 + RA
Where:
(EDC * (MWF * RCM/PTWM)/RCM/12 = the Economic Development cost component, expressed in dollars per meter per month.
RA = Reconciliation Adjustment as determined below, expressed in dollars per meter per month.
RA = (AEDC * MWF * AM/ATWM))/AM/12 - (PPEDC * (MWF * PCM/ATWM))/PCM/12. At the time this rider was written, Economic Development expenditures in base rates were $0.00 for EDA Annual Rebates and $183,512 for funds transferred to the City Department of Administrative Division of Economic Development.
(4) Definitions.
EDC = PEDC - BEDC
PEDC = Projected Economic Development expenditures in the Collection Period.
BEDC = Economic Development expenditures in the base rates of $183,512.
PPEDC = Economic Development cost to be collected in the preceding Collection Period.
PPTWC = Projected total weighted meters during the preceding Collection Period.
AEDC = Actual Economic Development cost for the preceding Collection Period.
MWF = Meter weighting factor for each meter size in Table 1 below.
RCM = Projected average number of meters for a given meter size during the Collection Period.
PCM = Projected average number of meters for a given meter size during the preceding Collection Period.
PTWM = Projected total weighted meters during the Collection Period.
AM = Actual average number of meters in the meter class during the preceding Collection Period.
ATWM = Actual total weighted meters during the preceding Collection Period.
Table 1
Meter Weighting Factors
Description | Meter Weighting Factor |
Residential Residential Suburban | 1.00 1.10 |
General Service Meters < 400 Cfh Meters < 400 Cfh Suburban Meters from 500 Cfh to 1,499 Cfh Meters from 500 Cfh to 1,499 Cfh Suburban Meters equal to or larger than 1,500 Cfh Meters equal to or larger than 1,500 Cfh Suburban | 1.10 1.21 1.80 1.98 2.90 3.19 |
(Ord. 2010-8-70. Passed 8-11-10; Ord. 2011-8-79. Passed 8-24-11.)