§ 1050.02 RATES AND CHARGES FOR SERVICE.
   (a)   Service schedules.
      (1)   Schedule A.
         A.   Availability of service. Available for single phase electric service at 225 amps capacity (120-240 volts), maximum, through one meter to individual customers.
         B.   Rates for service.
 
1.
Customer charge
$4.33
2.
Distribution charge all kWh
$0.0172
 
         C.   Riders. Customers under this schedule shall be subject to the applicable generation charge, fuel and purchased power and transmission cost rider as specified in this tariff.
         D.   Minimum charge. The minimum charge shall be the customer charge.
         E.   Terms of payment. The net amount billed is due on the fifteenth day of the month.
      (2)   Schedule A-D.
         A.   Availability of service. Available for single phase electric service at 225 amps capacity (120-240 volts), maximum, through one meter to individual customers. In addition, customers under Schedule A-D must meet age, income and other prerequisites as determined by the Director of Public Service, subject to the approval of the City Council. Rates under this schedule for distribution charge and all riders, excluding customer charge and kWh taxes shall be reduced by 10% to eligible customers.
         B.   Rates for service.
 
1.
Customer charge
$2.94
2.
Distribution charge all kWh
$0.0155
 
         C.   Riders. Customers under this schedule shall be subject to the applicable generation charge, fuel and purchased power and transmission cost rider as specified in this tariff. The charges shall be discounted by 10%.
         D.   Minimum charge. The minimum charge shall be the customer charge.
         E.   Terms of payment. The net amount billed is due on the fifteenth day of the month.
      (3)   Schedule B.
         A.   Availability of service. Available for single phase electric service over 225 amps capacity (120-240 volts), minimum, or three phase electric service at 200 kW capacity, maximum, through one meter to individual customers.
         B.   Rates for service.
 
1.
Customer charge (single phase)
$5.57
2.
Customer charge (three phase)
$7.73
3.
Customer charge (primary)
$12.99
4.
Distribution charge all kWh
$0.0106
5.
Demand charge all kWh
$4.64
 
         C.   Riders. Customers under this schedule shall be subject to the applicable generation charge, fuel and purchased power and transmission cost rider as specified in this tariff.
         D.   Minimum charge. The minimum charge shall be the customer charge plus minimum demand charge.
         E.   Demand. The billing load for the month shall be the highest 15-minute integrated demand as determined by the instruments suitable for the purpose. Where energy is delivered through two meters, the monthly billing demand will be taken as the sum of the two demands separately determined. For purposes of billing, no demand shall be less than 15 kW.
         F.   Terms of payment. The net amount billed is due on the fifteenth day of the month.
         G.   Credit for maintenance of primary service. When the customer furnishes and maintains the complete substation equipment, including any and all transformers and/or switches and/or other apparatus necessary for the customer to take service at the voltage of the primary transmission or distribution line from which the customer is to receive service, a credit shall be applied as follows:
   All delivery voltages: $0.15/kVa
         H.   Power factor. The average power factor shall be determined for each month by comparing the kilowatt hours of power consumed during the month with the reactive power consumed during the month. When the average power factor, as determined by continuous measurement of lagging kVa is less than 90%, the billing demand (kVa) shall be determined by multiplying the maximum demand (kW) shown by the demand meter for the billing period, by the multiplier as indicated in the calculation below:
         1 + (.9 - pf)
         where:
         pf = customer's power factor
      (4)   Schedule C.
         A.   Availability of service. Available for three-phase electric service over 200 kW capacity through one meter to individual customers. Rates, terms and conditions for service to customers with requirements other than previously stipulated shall be offered only by special contract.
         B.   Rates for service.
 
1.
Customer charge (Three Phase)
$10.52
2.
Customer charge (primary)
$20.08
3.
Distribution charge all kWh
$0.0072
4.
Demand charge all kWh
$2.47
 
         C.   Riders. Customers under this schedule shall be subject to the applicable generation
charge, fuel and purchased power and transition cost rider as specified in this tariff.
         D.   Minimum charge. The minimum charge shall be the customer charge plus minimum demand charge.
         E.   Demand. The billing load for the month shall be the highest 15-minute integrated demand as determined by the instruments suitable for the purpose. Where energy is delivered through two meters, the monthly billing demand will be taken as the sum of the two demands separately determined. For purposes of billing, no demand shall be less than 81kW.
         F.   Terms of payment. The net amount billed is due on the fifteenth day of the month.
         G.   Credit for maintenance of primary service. When the customer furnishes and maintains the complete substation equipment, including any and all transformers and/or switches and/or other apparatus necessary for the customer to take service at the voltage of the primary transmission or distribution line from which the customer is to receive service, a credit shall be applied as follows:
      All delivery voltages: $0.15/kVa
         H.   Power factor. The average power factor shall be determined for each month by comparing the kilowatt hours of power consumed during the month with the reactive power consumed during the month. When the average power factor, as determined by continuous measurement of lagging kVars, is less than 90%, the billing demand (kVa) shall be determined by multiplying the maximum demand (kW), shown by the demand meter for the billing period, by the multiplier as indicated in the calculation below:
         1 + (.9 - pf)
         where:
         pf = customers' power factor
      (5)   Schedule D.
         A.   Availability of service. Available for electrical energy used for city-owned and operated facilities.
         B.   Rates for service.
 
1.
Customer charge
$9.28
2.
Distribution charge all kWh
$0.0106
 
         C.   Riders. Customers under this schedule shall be subject to the applicable generation charge, fuel and purchased power, and transmission cost rider as specified in this tariff.
         D.   Unbilled service. Service shall be provided without charge to the following facilities: Shelby City Hall, Shelby Municipal Court, Police Department, Sutter-Roush Rooms, Municipal Utilities Office, Fire Department, Marvin Memorial Library, Parks Department, Electric Distribution Department, Municipal Light Plant, Municipal Garage, Skiles Field, Girl Scouts' House, Log Cabin and Siegfried Field. Services shall be provided without charge for public street lighting and traffic-control devices.
      (6)   Security light service.
         A.   Availability of service.
            1.   Available to customers where utility's standard outdoor lighting unit can be installed on utility's existing pole and does not require any extension or addition to utility's existing secondary or primary distribution facilities, including transformer. Any relocation of a lighting unit shall be at customer's expense.
            2.   Where additional facilities are required, the customer shall pay, in advance, the total installation cost for the additional distribution facilities (poles, wires, transformer and appurtenances) as are required. In all cases, the lighting fixture itself, including lamp, will be installed, owned, operated and maintained by utility.
            3.   This service is available only where there is reasonable assurance that the service to be furnished will be permanent. Utility reserves the right to refuse to furnish such service when, in utility's opinion, the installation will not be of permanent character.
            4.   All applications for outdoor security lighting service shall be on a 12-month year-round service basis. Where the premises are occupied by a tenant, utility reserves the right to require the application for service to be made by the property owner with bills to be sent to the premises to the attention of the tenant. However, the property owner shall be responsible for the payment of the bills.
         B.   Rates for service.
 
1.
40 watt LED
$5.50
2.
100 watt high pressure sodium
$5.50
3.
175 watt mercury vapor
$7.50
4.
400 watt metal halide
$17.50
5.
1,000 watt metal halide
$43.00
 
         C.   Additional facilities. Where a pole is installed in order to provide service under this schedule, the customer shall be charged $1.00 per month in addition to the rate for service.
      (7)   Electric vehicle charging station service rider.
         A.   The charge for service shall cover the fuel and purchase power costs, distribution charge, generation charge, and demand charge under the Schedule B rates and charges for service. The total charge for service shall be competitive with comparable gasoline prices per gallon. The cost for service shall be served at a kWh cost. The assigned competitive equivalent equation can be used as a barometer to calculate a comparable kWh cost for service; (cost per gallon of gasoline x 3 miles per kWh divided by 24.1 miles per gallon).
      The Director of Public Service or his/her designee shall review the cost of service every three months for comparable charges and adjust the said service rider accordingly for competitive service charges.
   (b)   Transition cost rider, fuel and purchased power and generation charges. The generation charge, fuel and purchase power charge, and the transition cost rider shall be applied to the A, A-D, B, C and D Schedules. The rate design of the generation charge and fuel and purchase power charge may be changed from time to time as approved by Council.
      (1)   Generation charge. The generation charge shall be $0.0040 kWh.
      (2)   Determination of fuel and purchase power charge. The fuel and purchase power charge shall be derived every three months by dividing (1) the past 12 months' cost of fuel and purchased power, including the cost associated with transmission-related services (hereinafter referred to as "previous 12 months' cost", by (2) the sum of the past 12 months' net kilowatt hours generated and purchased multiplied by 0.96 (hereinafter referred to as "previous 12 months' net kWh").
 
Previous 12 months' cost (numerator)
0
Fuel/
Purchased
Previous 12 months' net kWh x 0.96 (denominator)
Power Charge
 
      (3)   Determination of transition cost rider.
         A.   The transition cost rider shall be calculated and implemented upon the offering of open access service.
         B.   Transition costs shall be calculated yearly. Transition costs are generally defined as the difference between purchased power costs of those sources where construction costs, market price at the time of contractual obligation, and/or other factors may cause the fixed and/or average cost of that power to be significantly higher than average market prices. The transition cost rider may be adjusted each year based on projected market price, average cost of power from transition cost sources, fixed costs of contracted power supply, implementation costs of the offering of open access service, and sales of the previous year. A reconciliation of over or under recovery of transition costs is taken forward to the next year as a debit or credit to transition costs. Projected transition cost recovery is allocated between demand and energy costs and credited to total demand and energy costs of generation. This credit ensures that there will be no double recovery of transition costs.
      (4)   Project development and construction rider. The rates and charges set forth in the current city electric rate schedule may be increased for the purpose of providing funding for the city's share of the developmental and/or construction costs associated with projects undertaken by the city independently or in conjunction with a third party in furtherance of the city's goal to provide the city's electric utility consumers with the most economic, environmentally sound and reliable source(s) of power.
   (c)   Economic development incentive rate.
      (1)   Applicable to commercial and industrial customers.
         A.   To qualify, a new or existing customer shall meet the following criteria:
            1.   New commercial customers shall have a monthly demand of at least 20 kW. Existing commercial customers shall add a monthly demand of at least 20 kW.
            2.   New industrial customers shall have a monthly demand of at least 200kW. Existing industrial customers shall add a monthly demand of at least 200 kW.
            3.   New commercial customers shall employ at least two full time equivalent employees*. Existing commercial customers shall employ at least two additional full time equivalent employees*.
            4.   New industrial customers shall employ at least five full time equivalent employees*. Existing industrial customers shall add at least five additional full time equivalent employees*.
*A full-time equivalent employee is defined as a person who works at least 35 hours per week.
            5.   New or existing customers shall pay a minimum $2,000 annual income tax contribution to the City of Shelby.
            6.   This section shall have a retroactive period from January 1, 2017.
      (2)   The economic development incentive rate shall not exceed five years in duration. A year is defined as: 12 consecutive months from when the incentive rate was implemented to the utility account.
      (3)   The five year economic development incentive rate shall be as follows:
         Year 1 - wholesale quarterly fuel & purchase power cost, minimum demand charge, generation charge, distribution charge, customer charge, and kWh tax. A discount of $0.01 per kWh cost will be applied to the rate schedule.
         Year 2 - wholesale quarterly fuel & purchase power cost, minimum demand charge, generation charge, distribution charge, customer charge, and kWh tax. A discount of $0.0075 per kWh cost will be applied to the rate schedule.
         Year 3 - wholesale quarterly fuel & purchase power cost, minimum demand charge, generation charge, distribution charge, customer
charge, and kWh tax. A discount of $0.005 per kWh cost will be applied to the rate schedule.
         Year 4 - wholesale quarterly fuel & purchase power cost, minimum demand charge, generation charge, distribution charge, customer charge, and kWh tax. A discount of $0.0025 per kWh cost will be applied to the rate schedule.
         Year 5 - wholesale quarterly fuel & purchase power cost, minimum demand charge, generation charge, distribution charge, customer charge, and kWh tax.
         Year 6 and forward - current retail rate.
      (4)   The Director of Public Service or his/her designee shall have the right to terminate a customer's economic development incentive rate at any time.
      (5)   The Director of Public Service or his/her designee shall review each economic development incentive rate customer annually. Each customer shall cooperate fully in said review.
      (6)   The Director of Public Service or his/her designee shall determine if a new or existing customer will qualify for the economic development incentive rate if the account does not meet all of the criteria, subject to council approval.
   (d)   Balance levelization rate rider.
      (1)   Service Schedules A, A-D, B, C, and D shall have a negative rate rider in the amount of $0.0000/kWh. The negative rate rider shall cease from all service schedules and be removed from the utility bill.
   (e)   Miscellaneous charges (applicable to all customers).
      (1)   Reconnection charge. When a customer has previously requested a disconnect and desires to be reconnected at the same address, or if a reconnection is made subsequent to a service disconnection made in violation of provisions of these rules and regulations, a reconnection charge of $30.00 will be made if the reconnection is made during regular business hours. If the reconnection is requested and made after regular business hours, the charge is $80.00.
      (2)   Late payment charge. If a bill payment is not received by the utility offices or by the utility's authorized agent on or before the specified payment date (the fifteenth of the month), a one-time, additional amount of 5% of the amount of the bill will become due and payable as part of the customer's total obligation. If the fifteenth of the month falls on a Sunday or holiday where there is no postal service, the specified payment shall be the next business day from the fifteenth.
      (3)   Dishonored check charge. Whenever a customer pays a bill by check and the check is returned to the utility by the customer's financial institution for lack of sufficient funds in the customer's account, the customer will be assessed a dishonored check charge of $25.00 for each check returned.
      (4)   Meter test charge. The utility shall test the meter at the request of the customer. The test shall be performed in the presence of the customer if he or she so requests. If the meter is found to be correct, the customer shall pay a fee of $10.00 for the testing.
      (5)   Service fee. All service rendered to customer's equipment will be billed to the customer for labor and material required on the basis of cost plus 10% at the time of service.
      (6)   Application fee. An application fee of $5.00 shall be assessed to customers at the time of application for service.
   (f)   Emergency rates. The rates and charges set forth in the current electric rate schedules shall be waived in the event that the property is allowing emergency or health personnel to stay rent and fee free at the property during a time of quarantine, health crisis, or other emergency deemed by the Mayor to necessitate additional places to stay and beds to facilitate an emergency need. The following properties used for that month will be eligible:
      (1)   A rental unit by a landlord or in the case of multiple units under the same meter at least 25% of the units.
      (2)   A hotel operator is allowing a minimum of 25% of their units to be used for this purpose.
      (3)   A church that is setting up beds for this purpose.
   (g)   Kilowatt-hour tax adjustment. The rates and charges set forth in the current city electric rate schedules shall be increased by an amount equal to the kilowatt-hour tax imposed on the city's electric distribution system under R.C. § 5727.81. The increase shall become effective with the bills that include May 1, 2001, as part of the usage period and shall thereafter be automatically adjusted to reflect any change in the kilowatt-hour tax imposed by R.C. § 5727.81 increase in the current schedule that reflects the following:
      (1)   For the first 2,000 kWh delivered, the tax rate shall be $0.00465 per kWh delivered.
      (2)   For the next 2,001 to 15,000 kWh delivered, the tax rate shall be $0.00419 per kWh.
      (3)   For any kWh above 15,000, the tax rate shall be $0.00363.
(Ord. 16-2001, passed 5-8-2001; Ord. 33-2001, passed 8-20-2001; Ord. 49-2003, passed 12-1-2003; Ord. 28-2004, passed 9-20-2004; Ord. 18-2005, passed 6-6-2005; Ord. 12-2006, passed 6-5-2006; Ord. 14-2008, passed 5-5-2008; Ord. 31-2008, passed 9-15-2008; Ord. 9-2013, passed 11-18-2013; Ord. 50-2013, passed 12-16-2013; Ord. 7-2015, passed 3-16-2015; Ord. 31-2015, passed 9-8-2015; Ord. 9-2017, passed 5-15-2017; Ord. 10-2018, passed 6-18-2018; Ord. 12-2019, passed 6-17-2019; Ord. 6-2020, passed 3-2-2020; Ord. 9-2020, passed 4-6-2020; Ord. 11-2020, passed 5-18-2020; Ord. 31-2020, passed 12-21- 2020; Ord. 6-2021, passed 3-15-2021; Ord. 11-2021, passed 5-3-2021; Ord. 20-2021, passed 8-2- 2021; Ord. 1-2022, passed 2-7-2022)