| OCR Text |
Show CHAPTER HI 69 includes a small Central Arizona Project load, and the camp lights at Davis and Parker Dams together total to a monthly load of 200,000 kWh. This energy is accounted for at 6.65 mills/kWh (S-2 rate). Following creation of the United States Department of Energy (DOE) on October 1, 1977, all Parker-Davis power contracts were transferred to DOE's Western Area Power Administration (WAPA) by the Department of the Interior for administration. Since January 1, 1978, all Parker-Davis power contracts are with preference customers. C.6 Rate Adjustments Rate adjustment public information forums were held in Phoenix, Arizona, October 9, 1975. This followed publication and mailing of a "Parker-Davis Project Power Repayment Study - Brochure for Fiscal Year 1974, dated September 1975." A Public Comment Forum was held in Las Vegas on December 1 and 2, 1975. Initially, there were separate schedules for Parker Dam Power Project and for Davis Dam Project. From August 1, 1940, to January 1, 1963, the Parker Dam Power Project sold power and energy under Schedule R3-F1 which had an incremental charge for energy which, when averaged with the demand charge at 60 percent monthly load factor, resulted in an average rate variation of 4 mills/kWh to 6.25 mills/kWh. The initial rate schedule for the Davis Dam Project was Schedule R3-F3, effective February 10, 1948, which had an incremental charge on the energy which, when averaged with the demand charge at a 60 percent monthly load factor, resulted in an average rate of 5 mills/kWh. Schedules R3-F4 effective May 1, 1953, and R3-F5, effective February 1, 1956, did not change the charges on the demand or energy. On January 1, 1963, Schedule R3-F6 became effective. This rate combined the Parker and Davis Dam Projects rates into one schedule with an average rate of 5 mills/kWh at 60 percent monthly load factor. Schedule R3-F6 provided wholesale firm power service with a capacity charge of $0.875/kW of billing demand and an energy charge of $0,003 (3 mills/kWh). The minimum capacity charge was $0.875/kW per month of contract rate of delivery. Schedule R3-L7, implemented January 1, 1953, provided domestic retail service at a rate which charged $0.02/kWh for the first 100 kWh, and $0,005 (5 mills/kWh) for the balance of energy used. The minimum bill was $1.00 per month. Effective April 1, 1974, Schedules LC-F1 and LC-L2 were promulgated and superseded Schedules R3-F6 and R3-L7. Wholesale firm power service was provided to both preference and nonpreference contractors at an average rate of approximately 6.65 mills/kWh at 60 percent monthly load factor. The Parker-Davis Project had a special rate for Federal irrigation pumping services; e.g., 3 mills/kWh for Federal irrigation and drainage pumping, and 6 mills/kWh for other project purposes. Domestic retail service was provided at a rate of 7 mills/kWh; e.g., Parker-Davis Project camps at Parker and Davis Dams. The following rate increases were made effective as of June 1, 1977, by Schedule LC-F2 (which superseded Schedule LC-F1). (1) Increase the existing wholesale firm power rate of 1.35/kW per month and $0.003/kWh to $1.39/kW per month and $0.0035/kWh. This revised rate will provide an average rate of 6.65 mills/kWh at 60 percent monthly load factor. (2) Increase the existing rate for domestic retail service from 7.0 mills/kWh to 8.0 mills/kWh. C.6.1 Fiscal Year 1976 Repayment Study This study for the Parker-Davis Project showed a need for an increase of approximately 14 percent in firm power revenues to insure the repayment of the Project. Firm power rates were previously set by the fiscal year 1974 Power Repayment Study and became effective on June 1, 1977. The rates included a demand charge of $1.39/kW per month and an energy charge of 3.5 mills/kWh. The 1976 Study updated the 1974 Study by including actual OM&R costs and revenues for fiscal years 1975 and 1976, and the transitional quarter. Rate increase hearings have been held in abeyance in order to permit organization of the Department of Energy. |
