Title
Benchmarking Cost Competitiveness in Electric Rates (B)
Explanation
The Chamber Energy Competitiveness Report was referred to the Regional Utilities Committee (RUC) on December 19, 2013, where it was discussed on January 21, 2014 and August 14, 2014. At the August 2014 RUC meeting, staff presented the FMEA rate comparisons for 1,000 kWh residential bills for each of the utilities in Florida. Staff was directed to bring the item to the full City Commission, with the recommendation that the FMEA comparison be used for rate benchmarking, updated annually after IOUs adjust their rates in January of each year. Staff was also asked to provide the FMEA data over time to show how the ranking of each of the utilities has evolved. Finally, it was also recommended that the residential rate target for the utility be set in a manner consistent with the Chamber's recommendation for commercial rates, which is within one-half standard deviation above the median of the comparisons. Using this metric, the target for a 1,000 kWh Residential electric bill would be approximately $128, based on CY2014 year to date comparative bills. GRU's 1,000 kWh Residential electric bill in FY2015 is $140.50.
Recommendation:
The City Commission hear a presentation from staff regarding Benchmarking Cost Competitiveness of Electric Rates and approve removal of the Chamber Energy Competitiveness Report from the RUC referral list.