The URL can be used to link to this page

86-1533 �NMITE - GTV CLERK � P�NK - FINANCE ITY OF SAINT PAUL Council CANARV - DEPARTMENT I � J1 Bl_CIE - MAVOR I FIlC NO. �� `�� '� ,, ouncil Resolution � , Presented By Referred To � Committee: Date Out of Comm7ttee By Date WHER�AS , t e Ci y of Saint Paul has granted, in Ordinance No . 16947;, as a ende by Ordinance No . 16962 , a franchise t use the publi� str ets a d ways to deliver hot water within aint Paul to D�istric Heat ' ng Development Company (DHDC) , a Minn sota non-profit� corp ratio ; and WHERE�AS , o July 18 1986 DHDC filed with the City Cl rk a notice of � its ' ntent to amend hot water rates on Septembe 19 , 1986 , and �iled an am nded Energy Rate on October 24 , 1986 ; a d WHEREP,S , s ch r tes are thereby effective on an in erim basis pend�,ing C ' ty C uncil approval , which approval requir s a public hea�ing; nd WHEREAS , D DC ha provided evidence to the City that the proposed ec�ergy rate hange to $10 .68 per megawatt-hour is 'ust , reasonable ;� and ondis riminatory; and WHEREI�S , t e Ci y Council has taken into account t ose matters rec�uired by_ S ction 6 of Ordinance No. 16947, an by C. F. No. 85-919 , and finds that DHDC has met all procedural and substantive�� req ireme ts for approval of a rate change ; now therefore , �e it RESOLVED, t at th DHDC rate schedule which sets the "en rgy charge" fo� its cust mers is hereby revised to decrease the "ensr�y ch�rge" from $14. 50 per megawatt-hour to $10 . 68 per megawatt-hou�r; a be it FURTHE� RES LVED, that all other rates , changes , rules and other provi5ions of th DHDC hot water franchise remain in f rce and are uncl�anged; and e it � COUNCILMEN Yeas Nays �i Requested by Department of: Drew Nicosia i Rettman In Favor Scheibel Sonnen A gel n S t BY Tedesco Wilson � Form Approved by City Attorney Adopted by Council: Date Certified Passed by Councill�iSecretar By —' —�� B}� Approved by Mavor: Date I� _ Approved by Mayor for Submission to Counc 1 By _ _ By � WMITE - CITV CLERK PINK - FINANCE G TY OF SA I NT PA U L Council CANARV -SEPARTMENT I BLSE - MAVOR File NO. � uncil Resolution Presented By Referred To Committee: Date Out of Committ�e By Date Ili -2- �I FINALLYi RESO VED, that the attached revised Scheduled A is approved andisupe cedes any previous Schedule A, and is incorpo ated by referenceiinto Ordin nce No. 16947 as amended. COUNCILMEN i Requested by Department of: Yeas Drew Nays I N'°os�a [n Favor Rettman Scheibel Sonnen _ gBipSt BY Tedesco I Wilson I Adopted by Council: D�te N�V � ; 1986 Form Approved by City Attorney Certified •ssed by Counc.il S�ecretary BY ' 3 Bp + Ap ve by Navor. Da V _ �O � 7 1�{J Approved by Mayor for Submission to Council - �Y PU��;��sro .�:�v � 19�6_ . , � _ �-��'3.� � ' AMENDMENT TO ; SCHEDULE A to ' HOT WATER FRANCHISE Granted to ' D STRIC HEATING DEVELOPMENT COMPANY I, by the CITY OF SAINT PAUL Ordi ance o. 16947, Adopted July 20, 1982 as amended by Ordina ce No. 16962, Adopted October 5, 1982 RATES: Ttie fol owing rates shall be effective beginning w th the billirig mon h of October 1986 and shall remain in eff cr_ until supe�rsede : D�mand ate: $3. 11 per kilowatt per month Energy ate: $10.68 per megawatt-hour PROMPT PAY ENT P OVISI N: A charge of 5 (five) percent will be added to the ne bill computed at the rate shown above, whi h charge sha�ll co stitu _e a discount from the gross bill f r payment wikhin he discount period, all as more specifical y provided i� the ot Wa er Delivery Agreement. FUEL ADJUS�MENT: As p ovided in the Hot Water Delivery Agre - ment, the �nergy Charg may be appropriately adjusted from ti e to time d ring the f ' scal year to cover increases (or d - creases) iri the cost f energy purchased by DHDC which occ r subsequent ; to t e es ablishment of Projected Energy-Relat d Costs for such p riod, to the extent such costs are in exce s of (or beldw) th cost projected by DHDC in establishing t e Energy Charge for such eriod. SURCHARGE: ' A su charg of 8. 7 percent will be included in t e gross and n�et mo thly bills computed under this rate schedul except as ot,herwi e pro ided by law. [The foregoi�ng am nds r. e as-filed September 19, 1986 Amendment ] DHDC I 10/24/86 � i � 7881A ! � � �-�s.�� , � � � �-A R�� Dist ct ! ��' 2� �5�6 Heat ng Deve opment �.. � �, "�`� Com any �`4 � �' f. ; ;i.:►�=� , October 2,4� ].9 ( a private,n n-profit company 76 West Ke logg Boulevard Albert B.I' Olso st.Pe�i.M ss�o2-��s� City Clerk cs�zj2s�-a ss City of Saint aul Second Flpor , ity H 11 Saint Paul , MN 5510 Dear Mr. Olson• Pursuant Ito he H t Warer District Heating Franchise and previous Notic fil d July 18, 1986 and September 19, 1986 , District Heati g Dev lopment Company hereby files an Amend ent to its Septemb r 19, 1986 Amended Schedule A. The rates filed herewith will be us d for all bills for hot water ser ice beginni�g with the illing month of October, 1986, and ill remain in effe t unti superseded. All other aspe ts o the previous filings remain in effe t , including the ffida it of Compliance with Council Resolut 'on 85-919. In or er t supplement the customer information of this red ction in interim rates for r.he Energy Charqe, we intend t� pro ide ailed nor_ice to DHDC customers of .he scheduled ' Nove ber 1 , 1986, Public Hearing before tne C' ty Council of tne City f Saint Paul . The purpose of that Pub ic Hearing i con idera ion of the Energy Rate for final adopt' on as the 19�7 Ene gy Ch rge Rate. This is a rout ne an ual rate adjustment as envisioned by he Franchise and t e Hot Water Delivery Agreement, save and exc pt the fact t�hat t e Ene gy Charge is reduced to reflect unanti i- pated fue� pri e cha ges thar_ are the result of the unpre e- dented volatili y in he fuel market. Please cor�tact Rudy rynolfson at 297-8955, or John Sprang rs at 292-1661 if here re any concerns. Very truly you , �� i Chairm n of the oard / �� JT: jb/7 80'A Enc. __. .c . Hon. �Ciki Sonne , Chair, Council Energy and Utilit es Commit�ee Tom Weyandr Offi e of City Ar_torney Karen �wens n, Ci y Council Research Hans 01. Nym n, DH C Rudy Brynol son, HDC r r.ti., c....-�.,.. ,. .._�., .._ .. • -- - - - • I � ,�---: �c- ��/.5 3.� . . � ; � � AMENDMENT TO I SCHEDULE A to � HOT WATER FRANCHISE I Granted to i D STRIC HEATING DEVELOPMENT COMPANY � by the i CITY OF SAINT PAUL jOrdi ance . 16947, Adopted July 20, 1982 as amended by prdin ce No. 16962, Adopted October 5, 1982 RATES: Tt�e fo lowin rates shall be effective beginning w' th the billir�g mo th of October 1986 and shall remain in eff cr. until supersede : Demand Rate: $3.11 per kilowatt per month E�ergy ate: $10.68 per megawatt-hour PROMPT PAY ENT ROVIS ON: A charge of 5 (five) percent will be added to the ne bill computed at the rate shown above, whi h charge shalll c n�tit te a discount from the gross bill f r payment wiIthin he d ' scount period, all as more specifical y provided ir� the ot Wa er Delivery Agreement. FUEL ADJUS�MENT: As rovided in the Hot Water Delivery Agre - ment, the nergy Charg may be appropriately adjusted from ti e to time d ring the iscal year to cover increases (or d - creases) i� the cost f energy purchased by DHDC which occ r subsequent ; to he es ablishment of Projected Energy-Relat d Costs for such eriod to the extent such costs are in exce s of (or belq�w) t e cos s projected by DHDC in establishing t e Energy Charge fo such period. SURCHARGE: A su charg of 8. 7 percent will be included in t e gross an �et m nthly bills computed under this rate schedu e except as o�herw' se pr vided by law. [The forego�ng a ends t e as-filed September 19, 1986 Amendmen ] DHDC 10/24/86 I i i 7881A i i � � � I �� _ � � �i 5 3� � ;" � . , ! BUDRATE5.RBM ! i 1Ql27!86 � � DISTRICT N�ATIN6 aE4 LOPMENT C MPkNY - AATE CALCULATIONS S�MMAAY ! ----------�-------- --------- ------------------o------------- ', I� FY 198b FY 1.8b FY l981 fY 1987 � � @UQ6Ei ACTUALSI) 6UD6ET REUISED(1? ! � ; -------- ---------- -------- ---------- � � ' 1 I. CU�lEP.A6E ➢EMAMQ'RATE ? -------------------- i 3 DE!lAND RELATED CpSTS 5,589,33�� 20,?11,?85 6,384,4�8 b,384,�58 4 LESS: FUND5 FAOM, DEBT PRO EEDS 0 -14,69T,500 -311,544 -317,50G 5 LESS: ALLDCATED FDRFEITED ISCOUNTS �?,i38 -z?,471 -54,314 -54,374 ' b � ---------- ---------- ---------- ---------- 7 DEMAND CHAA6E AEWENIlES P.EQ IR�D 5.5?9,59? 5,553,?!8 6,G12.584 6,012,584 � 8 ' 9 DIVIDEQ 9Y CONTR�CT DEMAND (kM! 154,?64 154,576 l44,38b 144,386 i 14 EQUALS CQVERA6E �ATE PER k IYR f34.ti1 f34.80 f41.b4 f41.b4 11 E(�t1IYALENT RATE PER KYlMO f?.89 S2.?0 f3.48 �3.48 � 12 , I 13 II. ENEP.6Y RATE � !4 ----------- i i 25 ENERGY RELATED C05TS 3,492,b58 ?,918,2l3 ?,158,312 1,465,227 ' lo LESS: ALLOCATED F'�RFEITED ISCOUNT5 4 -?2,Ob5 0 0 ; 17 � --------- --------- ---------- --------- i 18 ENER6Y GHAR6E REV�NUES REQ IRED ;,492,b58 ?,95b,148 2,758,312 2,4bS,227 j 19 ' 20 OIVIDED BY ENER6Y�SALES (MY ) 2�4,9?4 232,874 235,645 230,980 � 21 EQUALS ENER6Y RATE PER MMN f14.50 f12.14 �11.11 f10.b8 � � i . � 23 III. DIFFERENTIAL t� AO�USTED RAT i 24 ----------------��_ 25 DEt1AND AATE (f/MMB�TEI EQlIIVA ENT? f5.91 tb.44 f1.18 f7.18 ; 26 ENER6Y RATE tf/MM�TU EQUlY ENT� 4.2� 3.1? 3.43 3.l3 Z7 ------ ------ ------ ------ 28 TOTAL COVERA6E RATiE PER MMB lf 10.2! 4.72 1Q.61 l0.31 ' 2q � 34 TAR6Et RATE ' f7.Q1 f1.01 f1.01 f7.01 i 31 LESS CUVERA6E RATE'A80VE -10.21 -4 J2 -IO.bl -10.3! i 32 � ------ ------ ------ ------ 33 EQlJALS ➢IFfERENTIA� PER MMBT -3.20 -?.1! -3.60 -3.30 ( 34 35 TIt1ES MMBTU SALES �MMN X 3.4 3) 8?2,214 19�,816 844,256 788,3;i5 36 EAUALS T�TAL OIFFEAENiIAI - ,634.�5�} -?,153,05�J -2,843,614 -2,598,b21 37 � 38 ESTIN.ATED/ACTUAL FPor�NCHI5E F E5 60l,861 631,843 b23.005 b23,�(►5 � 39 ADJUSTMENT TO DEMAt�D P.EVENUE bQ1,8b1 -b31,893 -6T3,005 -b23,005 ' 44 CURRENT FkANCHISE F�ES �UE 0 0 U 0 41 42 NET aEt1FND REVENUESII�EQUIRED 4 ??1,731 4,421,3?5 5,389,579 5,389,574 43 ROJUSjED DEMAND RAT� !S/KY/Y ) i30.84 f30.84 f37,33 f31.33 44 ADJUSTEL� GENRMO RFiT� 15/KM/MQ i?.57 f2.57 f3.11 f3.11 -------------------�--------- --------- ---------------------------------------------- NOTE; ' � (1? QEMANQ COSTS AS��PRE'dIOUSI ESiIMAtE ; Et�ERGY C45TS UPpATED AS OF 1Jt86. , � , � �. i " i � �� -- �-_� ,5 33 � , � ENCH6.RBM 1Q/?1/8b RB ' D STRICT HE IN6 QEVELOPHENT C�tIFANY - EMER6Y COST QETRIL � - --------- ------------------------------------------- ' FY 14Ab fY 1986 FY 1487 FY 1987 EN�R6Y RELA 0 CUSIS 9UD6E1 ACiUkI(11 B0D6ET REVISEDt?.1 --y--------- ------- ------- --------- ------- --------- 1 A. FU�L AND ENE 6Y ExPENS 2 COAL 2,:;8,848 ?,31�,042 1,?29,;i69 1,891,292 � NATl1RAl 6A 1,019,6?9 Ib2,140 bl?,654 ,;B?.40� 4 FUEL OIL 30.;!;U 305,658 20.634 13,125 5 P�JRCHASE� TEAtl 24,430 41,689 16,956 10,773 6 �LECTRICITY 1i4,65! 153,�29 171,69R 16E,642 1 O�HER �i 0 � p 8 9 B. UNRfiRLI1ED EH R6Y RE9EH 5 U �U4 1,G00 1,00� 10 ---------- ---------- ---------- -------- 1! C. TOTAL ENER6Y ElaTEO COS S 3,492,658 2,978,213 2,158,31Z 2,4b5,Z7 ---L--------- --------- ---------------------------------------------------------- M�TE: (1) A'CTUAL FDR YERR IPREI MINARY UNAUDItEO?. (2) ESTIMATES EVISED A5 F iG/86. r' � �N��/S� ��; �`. C� . _ � 1 ; . �' . � CIT OF SAINT PgUL " ��,;� ', EARCH CENTER :m m:nl � CTTY OUNCIL IIVVESTIGATION AND RES —i.1_ �, , � October 24. 1�86 � � � � MEMORANDUM To: Members o the C ty Council Energy, Utilities, and Environment Cornr�i ttee From: Karen Swen on� Subject: Revi�sion t DHDC roposed energy charge for 1986-87 District Heatting D velopm nt Company on October 22, 1986 proposed a revision to ',its pr posed nergy charge rate for FY 1987. The proposed revision, compared t earii r information, is as follows: ' FY 1986 FY 1986 FY 1987 FY 1987 � Budgeted Projected Proposed Revision . " ', � Actual• 9/19/86 10/22/86 - - . Energy related costs ($) ,492,658 3, 119,9501 2.758,312 2,465,227 � � � . Energy sales QMWh) 240,924 233,513 235.645 230,980 � Energy rate ch�arged $/MWh) 14.50 ' n/a2 11.71 10.68 x change from �,FY 86 ate n/a n/a -19x -26� � Below is a di��scussi n of D C's reasons for the revision, staff analysis, and a recommen'�dation for Co ncil action. � i DHDC rationale� for c an es " � DHDC in Sept�ember propos a decline in the energy charge to reflect substantially �, reduc d fuel costs and continued energy efficiency increases resulting from plan impro ents. DHOC provided estimates (made in May, 1986 when the ��FY 198 budge was prepared) of a 7� decrease in the contract price of coal ,', its p imary el ; and a 22x decrease in the price of natural gas, a 31� d�ecreas in th price of fuei oii , and a 42x decrease in the price of purchased s eam fr St. Paul-Ramsey Medical Center, ail of which are supplemen'�tary f els. DC aiso projected a decrease in energy sales, Hhich the company said eflected both increased piant efficiency improvements a�d adj stments made in customers' contract demand. In its revised Octo er pro sal , DHDC adjusted prices of gas, oil , and steam further', down ard by n additional 57x, and decreased electricity prices by 47. �to reflect pr ent or projected energy prices. Energy sales were adjusted�, down rd bas d on the latest availabie data. DHDC asserts ' N 102 61 /298-4163 706 CITY HALL , S T PAUI, MIN ESOTA 55 , �ae ' ? I , � � �;/y33 . , �- - , , i that its revis�d ener char e Niil be adequate to cover its costs, and it wili not hav� to ise ra es or assess next year for an energy charge deficit due to the r ised F 1987 rates. Staff analvsisl In reviewing �the or ginal roposal , staff attempted to obtain current and p�ojected price info mation on natural gas. fuel oil , and electricity from NSP, tocal oiIi refi eries, and the state departments of Public Service and Energy and Ecdnomic evelop nt. Results of these inquiries indicated that DHDC's initiai proje tions f fuel prices were high because of: (1) recent significant �ieciine in SP's price of purchased gas: (2) recent and unforeseen de�lines n oil rices; (3) the outcome of NSP's recent electric rate case; amd (4) he ran e of proposed prices in NSP's pending gas rate case. � Staff calcul�tions, using DHDC's September fuel quantities and sales levels. indicated at ene gy charge revenues required could be reduced by $251,927, and the ergy c arge rate could be reduced to $10.63, by using lower fuel prlices. With t se figures, staff projected that DHOC could be expected to cover its e ected energy related costs for FY 1987, and possibly give� cust ers a il refund next year. DH�C's revision r uires �40,141 less revenue and resuits in a rat $.04/MWh hic�her th n the taff calculation; it uses slightly lower gas, oil , and purchase ste prices and higher electricity prices than th staff figur s. Ho ever, both calculations use fuei prices in a simila range, and �th obt in sim lar results. The new DHDC projected sales figur does not affect th compa y's revised rate proposal , and would affect th staff caicu�ation y less than $.03/MWh. Neither the staff nor the OHD revised figures sh uld be affected by fuei switching, since both sets o calcutationsl ass that s p�ices are e4uivalent to oil prices and sinc steam prices in DH 's rev'sed figures are closer to gas and oil prices. Staff reconxn ndat i The revised Fnergy charge rate of $10.68/MWh should be approved. c.c. City Cc�uncil embers Tom Weyandt Betty �}tch i so Hans N�mann Rudy Brynoifs n Wiilia� Mahi 1Energy cha ge rev nues r uired are $22,065 less than this figure becau e of alloca�ion forf ited discounts between the demand charge and t e 2energy charge. The equiv ient rate ich could have been charged allowing OHDC o recover i�s ene gy rei ed costs was stated by DHOC as $13.27. A refu d will be de later this fali ; the amount of the refund will e determine�when OHDC's audit is compieted. There are also some issu s regarding the erms o the refund which should be resoived before t e , refund i s Imade. I " , ' �� , t�,33 � ��, i —� Dis rict He ting Dev lopment FILED Co pany L'LI :. v �. � � ii U October �4� 1986 " , � ��— a private non-profit company i' 76 West ellogg Boulevard Albert B: Olso St. Paui, rvssio2-iisi (612)29 8955 City Cle�k City of �aint aul Second F�oor , ity H 11 Saint Paul , MN 5510 Dear Mr. �Olson Pursuant � to he H t Water District Heating Franchise and previous ' Noti e fil d July 18, 1986 and September 19, 1 86, District ��Heati g Dev lopment Company hereby files an Amend ent to its Scptemb r 19, 1986 Amended Schedule A. The rates f ' led herewith �� will be u ed for all bills for hot water ser ice beginning� with the illing month of October , 1986, and ill remain in� effe t unt ' 1 superseded. All othe�, asp cts o the previous filings remain in eff ct , including� the ffida it of Compliance with Council Resolu ion 85-919. ',In o der t supplement the cusYomer information of this reduction in ' nterim rates for the Energy Charge, we intend tc� pro ide ailed notice to DHDC customers of r_he scheduled � Nove ber 1 , 1986, Public Hearing before the ity Council o� tne City f Saint Paul . The purpose of that Pu lic Hearing i� con idera ion of the Energy Rate for final adop ion as the 19�7 Ene gy Ch rge Rate. This is a' rout ne an ual rate adjustment as envisioned by the Franchise ��and t e Hot Water Delivery Agreement , save and ex ept the fact �hat t e Ene gy Charge is reduced to reflect unantici- pated fuel pri e cha ges that are the result of the unpre e- dented vol�atili y in he fuel market . Please coritact udy rynolfson at 297-8955, or John Sprang rs at 292-166�,1 if here re any concerns. . Very truly�, you , i Chairm n o� the oard / JT: jb/7 80� Enc. � � ___ . Hon. Kiki onnen Chair, Council Energy and Utilit ' es Committ�ee Tom We�randt, Offic of City Attorney Karen Swenso , Cit Council Research Hans 0: Nyma , DHD Rudy Br�ynolf on, D DC John S�range s, Ma lum & Associates , , . � ��533 . � i i FILFD AMENDMENT TO r,,T �: � , , �.;= c ,^ j SCHEDULE A �� v � ; � ;i � tO �ff _ ..- n . � ,Y I HOT WATER FRANCHISE , Granted to � D STRIC BEATING DEVELOPMENT COMPANY I by the I CITY OF SAINT PAUL Ordi ance o. 16947, Adopted July 20, 1982 as amended by prdin ce N . 16962, Adopted October 5, 1982 I RATES: Th e followin rates shall be effective beginning w th the billirig mo th of October 1986 and shall remain in eff cr until supelrsede : Demand Rate: $3. 11 per kilowatt per month Energy ate: $10.68 per megawatt-hour PROMPT PAYMENT ROVIS ON: A charge of 5 ( five) percent will be added to the ne bill computed at the rate shown above, wh ' ch charge shall c nstit te a discount from the gross bill or payment wilthin he d scount period, all as more specifica ly provided in the ot Wa er Delivery Agreement. FUEL ADJUSTMENT: As rovided in the Hot Water Delivery Agr e- ment, the nergy Charg may be appropriately adjusted from ti e to time during the iscal year to cover increases (or d - creases) i�h the cost f energy purchased by DHDC which occ r subsequent to he es ablishment of Projected Energy-Relat d Costs for $uch eriod to the extent such costs are in exce s of (or below) t e cos s projected by DHDC in establishing t e Energy Charjge fo such period. SURCHARGE: I A su charg of 8. 7 percent will be included in t e gross and net m nr_hly bills computed under this rate schedu e excepr_ as o�herw' se pr vided by law. . [The forego�.ng a nds fi e as-filed September 19, 1986 Amendmen ) I DHDC 10/24/86 7881A i i � � �� • . � ' �v�- -i.�3-� BUDRATE5.RBM I � 1U?17!86 ' DISTRICT HEATIN6 OEVELOPME COISPANV - RATE CAICUlATIONS SLMMARY ------�--------- --------- ------------------------------------- �Y 1986 FY 1?86 FV l987 fY 1981 I 6UDGEi ACTUALSti bUD6Ei REVISE➢(!? -------- ---------- -------- ---------- 1 I. CO�lERA6E DEMIANQ RATE � -------------------- 3 DEhlANd RELAT�� C05T5 5.589,3Zi� 20,?77,78� 6,384,458 6,384,�58 4 LE55: Fl1ND5 FAOM DEBT ROGEEDS 0 -14,692,500 -317,50� -317,50U 5 LESS: ALLDCAjED FORFEI ED OISCOU TS -5?.738 -3?,071 -54,314 -54,374 b ---------- ---------- ---------- ---------- { 1 DEMAMO CHAR6E REVENUES REQt1IRED 5,529,542 5,553,??8 6,U12,584 b,41?,584 8 9 DIVIUED BY CaNTRRCT DE AND (KMl 154,?bQ l54,516 144,386 144,386 10 EQUALS COVER 6E RATE P R KN/YA S34.G1 �a4.8(� f41.b4 �41.b9 11 EQUIVALENT R�TE PER KM MO f2.89 F2.?0 f3.48 f3.48 � 12 � 13 II. ENER6Y RATE � � 14 ----------- 15 ENER6Y RELATE COSTS 3,492,658 ?,979,?13 ?,1�8,3]2 2,465,221 � 16 LESS: ALLOCAT�g FORfEI EU QISCOU 5 0 -?2,�965 (� 0 ' 1? ---------- ---------- ---------- ---------- ' 19 ENER6Y CHAR6EIREVENUES E8l1IRED 3,442,b58 ?,95b,148 2,158,312 2,�65,Z27 19 20 DIVIaED 9Y EN R6Y SALES (MYN) 240,924 Z32,8?9 235,645 234,980 21 E9UAL5 fNER6Y�RATE PER Ytl f14.50 fl2.70 511.11 f10.b8 22 ' 23 III, �IFFERENTIAL � AQJUSTED RATE ; 2� ----------------------- ---- ' 25 DEIIAND RATE i$/MMBTU EQ IVALENt) f5.91 f6.00 f7.18 f7.18 26 ENER6Y RATf l�/MMBTII EQ IYALENTI 4.25 3.7? 3.43 3.l3 ZJ ------ ------ ------ ------ 18 TOTAL COVERA6� RATE PEft MM9TU 10.Z! 9.12 10.b1 10.31 29 3U TAR6ET RATE f1.01 47.41 f7.41 57.01 zl LESS COVERA6E �ATE ABOV -10.21 -4 J2 -14.bi -10.31 32 ------ ------ ------ ------ � 33 E�UALS DIFFERErTIAI PER MMBTl1 -3.20 -2.11 -3.6� -3.3Q � 3� � 35 TI11ES MMBTU 5AlES tMNH 7f 3.413! 822,274 794,816 844,25b 188,335 ; 36 EAUALS TOTAL Q�FfEREMtI -2,634,454 -2,153,45�J -2,893,814 -?,59g,621 I �� 38 EST1hATEDlACTU L fAANCHI E FEES 641,861 631,89: 62�,t1p5 b2z,i�(►5 ' 39 AD,)USTMENT TU �EMAND REV NUES -601,8b1 -b31,89� -623,005 -b23,OQ5 ' 46 Ct}RRENT FRANCHISE fEES D (► � i� p 41 I 42 NET UENAND REVpNUES AEQU REp 4,421,731 4,9?1,�?5 5,389,519 5,389,579 43 RDJU5TED DEMAMq RATE If/ N/YR) i30.84 530.84 531.33 f37.;3 44 ADJUSTE� aENAN6' RATE (f/ MlMO) S?.51 3Z.51 f_�.11 f3.11 --------------1--------- --------- ---------------------------------------------------- NOTE: ' (I1 QEMRND COST� A5 ?kEV QUSLY ESTI ATED; ENERGY CC15tS UPUaTED AS QF 1J186. ' ; ' I� j � � I - � • , • i d,�.��,33 ENCH6.RBM 10/?l/A6l R@ I DI5 RICT HEAT N6 DEVELOPMENT COMPFNY - ENER6Y COST DETRIL --- --------- ------------------------------------------- I FY 14@b FY 198b �Y t981 FY 1987 ENE 6Y RELATE CQ515 BUD6ET ACTUAItI) BUD6ET REVISED(�J --- --------- ------ ------- --------- ------- ---------- 1 a. FUEI� AND ENER Y EXPENSE ? COAL 1,238,848 2,,15,042 1,929,3b4 i,B91,182 � N TURAL GAS 1,019,649 lb2,i94 63?,654 382,445 4 FU�L OIL 3U,G30 305,658 2U,b34 13,12� 5 PURCNASEQ 5 AM 24,431� 41,689 16,95b 10,11,i 6 EL�CTRICITY 174,651 153,4?9 l71,6?9 166,642 1 OTHER p i� � 4 8 9 8. UNRE�LIZEL� ENE 6Y REVENU S t? 2tJ4 1,U00 l,000 10 ---------- ---------- ---------- ---------- 1! C. TD1At� ENERGY R LATEa COS S 3,49Z,658 2,918,213 2,758,31Z 2,465,227 ---------- ---------- ---------- ---------- -------------- --------- ---------------------------------------------------------- NOTE:I !Il A�TUAL fOR EAk tPAEI MINARY UNAUDIiED?. (il E5TIMATES VISED A5 F 1G/86. I I I I I I I I I I I I I . I �� 3 � C TY OF SAINT PAUL '....:. � O C� OF THE CITY COIINCIL nna��un !,"�� I OQ 1 e i October 24 1986 I ! OM (TTEE RE PORT � TO = � Sai t PQ 1 City Council F�0 M �I (+O m ir r E O h ENERGY, UTILITIES & ENVIRONMEN i CH A R ouncilmember Kiki Sonnen I i i At the Octfober 2, 19 6 meeting of the Energy. Utilities, an Environment Com ittee the committee passed a motion to refe the proposal t�o ame d the district heating rate to the full coun il without comm�tt e rec mmend�t7on and that a public hearing d te be set onlor be ore N vember 11 , 1986. i � I I I i i I I . I I � I i i I i CTTY HAL� S VENTH FL�vR SAIT7'T PAUL, MIN FSOTA 55102 I �.�: I � �.,- . � +.. a. F -.. A� �, . -..� � r ..�f f 7 .r! � �u : � � ;�s �,� � ' t_� y ":�t � y • ' �. �'" ,g��_� TY �, �d � F_ !9 � �, k � -� # �-: � '^ � i 4 `� f+.i c r` � � �k r� � '� '� S'� .. � �:iV,"ey�� t � f x' �w �• ps ��.S' �-� F -` � ` �x ,�9Y b�4 �" � X7 �r �1��° ~�� .,;�--,�� ' /. � i a �� w , �. �� t� 'zl;��. � `- i ` :r � _t i'#. �. ,f '` �� ' � t�? / �; i ; ' ;.y ,M'. i, �� y �� < _ �� ri� r� #� } � .r(� ��.� ♦ T`1 t �"`�,�.,'` � � 1� � ,�{r .� ►' ,5� ,q - � t: �' , �' �. ' �'� ;� ' > e :�� E �a x r � �� '�� - { \ S �. k, �' '; I' �,I 3 ��a '*�, �� 4 � - � �. ` � d �g,� ,.; � --�. . _� r �° '' ..r" ' {- l ,; � j ��r�i . ..t,�e.t : � �F- ; Y � . : � ` � �� . � � ;� ,� � �x K �t' -` ' �` R� �.. '��'�y +�i?" r � A.�� Y nf �P ,�/ _ t `-� � � � � R '4 k �,�y I i� ft .y� 'a '.� 4 � _ i �.�'Y 3 .. �� 4 . � 1 �'- � u+-` � ` -v: , . � � '�" " ', ] � j v � r r � € r ��, # ��J� '�� `:t,+ � �,�. . f � � 4. �� r j * '� �'�, � - s � =v � � r ! d ,� s . � 1 fi� � ' 1 � . � � � * ' � l d Y �te .��' 1 .�t .: C �� . .� '�' ��'J Y . � e � -N� �� •� � . ��F .�.� �': �-. `�.3, N 0 f�' K�i "r ' .,� ��\ ;/+ - � r'�s �.. P �t � . i , :r j , � '"!' v 5 � t ,� w �.\ �.�y ✓ a+' y / � , � R `t .x/ . l' 'Z.� . .{' `�'(� 0 d °y�i '�; t! ] '. {r 1 �'t_ /� '' � ,Y Y i` q �� > r .�' y 1 `� „�" Ir ��.-�'` z, � � �� .�" h� rtif+" � �� i 1 :C � *�� l . � '� f �% � � �� - � � ` :�. �� ,�: � ti i ' �� l` �t `-� ��. 3. t Sr��`�� pY'� r� � � , �C ) � .�'x ��:J ,�` � \'}� k �.` f 4 �:. � �� M:'. � ' � �� r � ,` � '' ^� � * ' � , ^ r � � � , : . � -��, f r � i�,� ��r�. ' ti�„� T' 'r � ' x� :; J�-c ' ��A �. i- t � k :. �wy, � .,�. � 4 � . 1 * E I' �' � r ( ,�{ +. � F ;�' j ! , ) r (± y �� . �� t�z `. 'Tr., � � 1 i� � , ��, x ,' � 7 ?� `` 1. : � J 1: � � , ��:7 t ��. � r ' �., �� -� � � v t '�'� n � � . �' - �.,y �r 1 �t �_: K�, y �`�?� r.� �� } ' S y 4 � r t �� `�'.� � �� . .�r ... � i } `- ', ..h �v. � � .. �'t } � � .[ v , '. '. � �� ; � §1 - L �, �� t,� � �; ) � h�' A� ��`. `;�� ` '�'. .� j� � ? .� , � •' i�' � � o � y,� . �V � yl � j' � � �r � �l Yr- �� '�Y+�� ' � �.; L � � � , *� `+ � '^ �) ." ri ., ry ` , ' � �; x � �s ` "- � : + , , r �, 3 6 s � T �1 \ � �' � '7� ��t q 1 'a�i � � �� r, y,i s ��' y �, s',� ` *'' tr , ` �'� � � r- � �f . "�. � t e -�� t',� ` .+ °� �: ` k : .. n � �'{ � � rt+`�a�� '' y�"'�� 1�:�� ,� ;�i�N VI+��'�'ef��di�� ` r � � -�a, �'��'"��,�. t � $�� L '^�'S'�T��. ��'"�...� `�� O��I�� R,. �''? �. r � �y ��' L" 1�b�l�:�:�y � ' `��y �� '" �� T t .1. k ' �. Y 41.� s' � ^d., '� ��Y :' �'A :� n �,t''kh� � c � t: ,�L ,� �i. y :. i �.` 4� ; ��: F� �7i f, F r, i `4 ,_r � .. � � �� : � � } :.x �. � S: ! � � f` r '� v' f 'E r 'r� S ��' �. �f, a �. ,f'F: � � a,�� 'n f t 1.:�. f ly��.�� 4as- � �' �p _ - + J+ ,� ,r £hr ,�, ��-� ��' J,d. �eq ,�[ ; ��a / .T4 '� - � � .=_ a _ �r � t�•. � Y�+ti�.�. ¢r,� �zr �' _ :ai F �� f- ��.� ,.�. � �� V �� °s ,. �u 4 l -.'• � ._��y�c �_�K ""� t• } a ri r �'' t ��<�i f` � �.ti � '.F � .� i� �� 'y� .-: �1 �� tf" � � �� •�� C - `� . w_ � r+� � > 1 J e'nx � �� i: �,r�� r 8u � �' `.� 1�� ,.t �'•.� '�`° �'r �`�-� a°` # *S n ': .��"�' �� +� � ` y � . 'i �, , ` ,, �±� a + � . � �� w t .. � `� .;: ''t i t F ' i L, . y r .>i z', �1 ��+ � � �;� - t. �� 7 e � r � , � ' E �,� ��I � �� ..; t ;/ � � � �y � � �, i `��4�_��'r* � � r� ' t '��' '� x�# ., * u i ' � ` 4 ".< t _ '. . ; t ,� �:i � d ' � ,. { � .. � � � � ; � �, � ?R �. 1�� r � a �d >-. � �� ..�1 . (-r'', � t r._ � � ' .�t1��f�(. It , ,� � � �ti � : �,:�� r� {� ' � - 7 �• �1 �_� � � fi � ( X• 4 .�� * � Y � {� ..� '' .� �}:,�lY L �� I y � ir+'ffi' ��:� �. � ; F � r�\� :*,� � � 't,� x �.. �,. - . w+y ! 'f �, ,s� r il ¢� � f . � - �, ..�v,� w '� �t,�,.� �`�2"` ' � � 1 tF ` i x✓" 7� `. ,.,}�, "� s� a°+� i�� '.� �. L �: '� rl°x � �� ^ ��' a � � �r ax - i. t 15�� *a1' �' .: Y :� I 3 r; � �� _z� �a � �� Y �. I � 1 +.. X::f, , l. �.-� � t f� 4� �k �� .9 � 45 �. . F '' � � �,A . � Pr� �� i i �, ��• � St�� s .� 5' ��- ' 7' i �.. � �� t s� ^2, �`I , � ,� } 1 ,� :�fi ir .''t :r ' �-.� �. �,�� }� � z �:� f1 r. J � ` ^' . �'F=� � � 73. r lF f ? ��;� � , � �1. ,t I . f� .. ! °'� ,j : ��' �f Y`� ,l� tc :� � �p _1 rC � ,d 4 ,,, j �. `� -. � YAl'1 }}.� . �. t# � �j P� f-: �� ` �/ Y T` '� ;ar � ,L \' .g-'< y � t ,�'1 a, b ' 1`��. �+ 1 ` i� �`� + k � � ,�n3 � ' j �. . F�c �; :\� t: { _� �$; � T � �� .�� -�' � :�� 1. ..-Y � t � ��, �9 y, i �, 5 's ��:i 'a a `� � + ��: d� t% ��. fi` 1,� a _yY ��f �� f .� i.�� t:.�. ,, 4v�jy� k,�°y 2� i J . x - � r F`'�� r �. � .. - - . ; . ._ ` �t =v- : V , '� � � x �. �'" .� ;" �1 r '�' � - F' 4��. x t �: 1 . •� . r : f � k; .!� Y �t "}�. .r�� } \ �� ;� � �tR � y� �. �. X �` ,� f � ��n��t��,� � . �� P. 3.,�jy�� { l �� i �� r�'+� N `_ . l ,, r � +` , k ` y �'� f � , � , - �. - .- �� , r� `� `- � � r�..�,k,�i � ��., s:� J � 1 w l 4�� .:'t � �� +e T ` "� �� 1 ��y�l.�4#� s r � � �. t s " � . -�� ''t �' d �k �: � �.�'N�E i �/ "�b � � a�� 1� �� t C .� +. '� � ._ "" � �� ;t t ��',,.A' � b5�^� . '� , -. ... . . . _ :, < � .:r f � t"`'��r . �S _ � ,� ;,; '.� f, ' - 1 �,,�- j:�t . "'' a� ;➢ � � � i R � 1 ��' > ^ ` � � � � � i � ',��a, y , x tin 'y � �*�. •�. ti X .3 3 - � :� ;- .� � } � - ,� � �� J�f �I�" # 'r: E � � � . � ,� 3 ,-'� �.'� j f } .` .,, i ' � i a X �� •- !�� , • - c j ' � �� f �,( � fp � >F 1 � y; . ' -, , !N ,r t �- � � ;� . .�! .� } � � �� , % : � r�` �� c' �'� _ �.- � � ��t 4 \� � - � � � F ` - � �� .�3' ,� i t t '` ��:r� � •- � 'u, . , . , .� . � � . s a,J ,.x . ._ . . . . . . . . . .. . . � 1 . .. .. ,e �s ;t.. . . ! � . _. ,.r\ � -�Jl,J�3 � � � Di trict �� -�-- He ting De elopment Co pany a privat ,non-profit company 76 Wes Kellogg Boulevard Septemberl 19, 1 86 siz zs 8955102_��6� t"7 f•�7 r-n :.� � y� -� � AI bert L.' 01 son �, Ci ty Cl erk - : �' rn C i ty of S�h. Pa u I - �, o 3rd Floorl City I I `:; ��? St. Pa u I , '� NN 55 02 �'? "�" �� r-n cn Dear Mr. QI son: Pursuant to the ot wat r district heating franchise and previous notice filled Jul 18, 1 86, District Heating Development Company hereby files itslamende Sched le A. The rates therein will be used on all b i I I s f or 'h ot w a er serv 1 ce beg i nn i ng w i th th e b i I I i ng month of October 1986 and wli I I r aI n i n ffect unti I superseded. This is a l-outine annual rate adJustment as envisioned by the Franchise and the Hot Water Dellve y Agreement. Please contact Ru y Bryn Ifson at 297-8955 or John Sprangers at 292-1661 i� there are an questions regarding this matter. Since ely, � H ns 0. man Presi den ak cc: Hon. K1ki Son en, Ch ir, Council Energy and Utilitles Committee Tan Weyandt, ffice f City Attorney Karen $wenson City unctl Research Rudy Br�ynol fs n, DHD John S�ranger , Mahl m and Associates Attachments:ll Schedu I le A Aff idavlit of pl ian e with Counci I Resol ution 85-919 Copy of I Cust er Noti i cati on ' � . . � . � , d(� --i�'3-3 SCHEDULE A to HOT WATER FRANCHISE ' Granted to ISTR1 HEATING DEVELOPNENT OOaPANY by the CITY OF ST. PAUL Ordlnanoe . 16947, Adopted J uly 20, 1982 as amended by Ordi nce N 16962, Adopted Octobe� 5, 1982 BAIE�: The fol laving rat s shai I be effective beginning with the bll I ing month of obe� 986 and shal I remain in effect untf i superseded• � � 0 mand R te: 53.11 per kllowatt per month E e�gy R te: 511.71 per megaw att hour � : A charge of 5 (f Ive) percent w il I be added to the net bii I puted t the rate shavn above, which charge shal I oonstitute a disor� t fr the gross biI I for payment wtthfn the disoount per(od, al1 as m e specif�cally prw ided in the Hot Water Del ivery Agreement. F�• ��ST�'!E�: prav 1 ed i n the Hot Water Del ivery Ag�eement, the Ene�gy Charge ma�y appro i atel y ad,j usted f ram time to time dur T ng the f tscal year to oov iacre ses (or decreases) (n the oosfi of energy pu-chased by DHDC w ich oc ur subsequent to the establ ishment of ProJected Energy-Re ated sts for such period, to the extent such costs are (n excess of (or belav) the costs pro,jected by OHDC tn estab I t sh i ng th e En rgy Ch �ge f or such per I od. SURCH ar�F; surch rge of 8.7 percent w if 1 be Incl uded i n the gross and net mont I y bi I s cbrnp ted under th is �ate schedul e except as oth erw i se pr i de d y- I aw. � DHDC 9/3/86 �� ri. ` i _"" . . . , (J`��,_ S 3 3 i AFFI pAV IT 0 OOM'L IANCE W ITH OOUNCIL RESOLUTION 85-919 i Pursuant to Section 2 of C ty Counci I Resol ution 85-919, DHDC states the fol I aw in� facts regard ng i ts compl ianoe w ith Secti on 1 of that Resol ution: 1 . DHDC gav noti of it i ntent to f i l e a new a- amended Schedu I e A i n a I etter �ated J I y 18, 1986, f i l ed w ith the Ct ty CI erk on J ul y 18, 1986. � 2. DHDC seni� a not ce of ts rate f i I i ng a nd the rel ated customer meeting to all sign d hot ater custaners on August 14, 1986 (see copy attache�) . Th noti i ncl uded the new rates sought by DHDC; the time, date, �nd pla e of t e custaner meeting; and the Notice of Custamer Rights oon tituti g Exhibit 1 of the Resol ution. Copies of the notice w�re pr ided t the Executive Director of the St. Paul Bui I di ng Owners and Manage s Associ ation (BOMA) and the Chai rperson of the City Counlci I En rgy, U i I ities, and Env ironment Committee. The same i nformati on wa sent o al I Mount Ai ry resi dents w ith noti ce ot a special meeti'ng as scrib d belaw. 3. DHDC held the r uired custaner meeting on September 4, 1986, at 10:00 a.m. i nl th e A h i sv em nt Room of th e M i nne sota Mut ua I Ce nter, 400 North Robert treet, St. Paul . Two persons representi ng DHDC customers attended, al o�g w 1 iwo pe sons representi ng prospective DHDC customers andj two rsons r presenting the City in its regulatory capaci ty. A second eeti ng was hel d w ith the resi dents of the Mount Ai ry hanes onl Septe ber 10, 1986, at 7:00 p. m. at the Mount Ai ry Community Center. pproxim tely 90 residents attended, along wtth one representativ�e each fran th Publ ic Housi ng Agency, Capi tol Canmunity Ser� ices, and Ci Counci I Research. Copi es of DHDC� f il ing w ith the Ci iy, the proposed new Schedul e A, and the hot water f nch ise (Ordi nance No. 16947 as amended) were made avai I abl e to attende s at b th meeti ngs. At each meeti ng, the new rates were ex�l ained cust ers were adv ised that the City Counci I must apprave the r�w rate befor they become final ly effecttve, and custaners wer� al I aw d a re sonabl e opportun i ty to oomment on the proposed rate� both a-mal I and informal ly. i i Hans 0. Nyman, Presi dent ` � /l� k/�l^ � I < . .. , 9��'9�6 � ' -. t _ Da te �r, ' - � . �� -. I tiwY✓ti lYfvv✓'! �V�.�l/'6. ♦.,v_. r r f I i I '� -i5.33 � ' � � '� � Di trict �, H ating �� D velopment ' C mpany Augusfi 14, 1 86 a pri ate,non-profit company 78 st Keliogg Boulevard Re: Neiv Rete Custan Meet i ng gt�a��s�o2-�s�, Dear District Heatin Customer: DHDC�s �new ra es fa- October 1g86 through September 1987 were �ecen filed w�ith th City f St. Paul . This actton fol lows the annual ra 'y adJ usta�ent pr dure prov fded for in articl es V I and V I I of the Hot Wate� Ueliver Agr nt. For the� typl I cust er, the proposed change fran 59.56 to a9.86 pe mil I ion��Btu of end us energy repr�esents a th�ee percerrF overal I Inc ease over th� 1g85- g86 1 e�. The nex energy rate �s 511.71 per megawa hour of thermal ene gy use , a decrease fran the current rate of 514.50. e �ew dem�nd rat is S3 11 m�nthly pe� kilowatt of oontract demand, an Tncreasei fran he cur ent rate of 52.57. Further deta i I s on the nerr ratas are ov Ide in Attachments 1 and 2. On Thursday, ptember 4, 1g86, at 10:00 a.m., we will hold a meeting to explain �the pr sed r te changes and answer questions for Interested custamer�. Th meetln witl be in the Achievement Roan on the sixth f loor of �the Mi nesota Mutua I L ife Bu i I d ing, 400 Na-tt� Robe�t Street, St. Paul; Plea e sign in at the guard�s desk on the skyway level before gd i ng to the s i h f I oor. A1 I custaners are i nv ited to attend. DHOC�s ra�tes a� regul ed by the St. Paul City Council in acoordance with the hot wa er fra Ise ordtnance (City Ordinan� No. 16gq7) . �� add i t i on �to DN �s cust er meet i ng, th ere w 11 ! be a pub i i c h ear i ng before th City unci I before the rates receive f inal approval . For more deta�is on hTs pr ss, see the "Notice of Custaner Ri hts'� enclosed �s Atta hment 9 . Please cc�tact nlca W sterlund, Director of Communications, or Rudy Brynol fso�, Dir or of inance a�d AdminTstratTon, 257-8955, if you h e any questl�ons a ut the eeting or prooedu�es. The proposed rates refl DHDC�s com�nitmen to bri ging you long-term stable energy prlces. We 1 forrvard to� ti M ith ou September 4. Sin rely, �� ns 0. n Pres i de nt enclosures:', Attach ent 1- Rate notioe f I I ed w ith C � Attach ent 2- Fact Sheet w Ith further information ��Attach ent 3- Not i ce of Custaner R t gh ts . i • , . . ! �./_ --�'.�,3� � � � � i � � Attac ment 1 � Dist ict Hea ing � Dev lopment ._ . . . .. �..- .��;�:��teo �.. .._ ,:...�.._.��:��;��:�::� C° Pany � ��y �s, �� J � f8 3 �� '�� 6 a p►IvaN, n-proiit company I ��Y �'` �.K•S �FFI C E �e west K ea,avard , <•i . . L� t�lN'1. se.Paw.M ss�o2-��e� (612)297- 55 Albert B. Qlson CTty Cierkl City of St. Paul 3�d Floor ¢Ity Ha I . St. Pau i, I�i nneso a 551 Dear Mr. Oilson: Pursuant t� Secti n 6(e) f the hot water distr(ct heating franchise (City Ordinlenoe #1 947 a pted July 20, 1982), Oistrict Heating Development Canpa hereb files nottce of the �ates to be cha�ged to all hot wat�r cus e�-s e fecttve October 1, 1986. These ratesI w�e termi d in accordance with the Hot Water Deltvery Agreement ahd app� ed un �imously by DHDC�s Board on June 24, 1986. As dstalled on the enclos d exhiblts, the nex rates a�e: Energy ratei 511. 1 per awatt-hour tdown from current rate of � ' i 514. 0 pe� h) N • Demand rate� 53.1 per k l owatt per month (up f ran cu�rent rate of ��r� � I E2.4 per k ) �►ou�0� reac( These rates ,produc an ov al I cost to the typical custaner of 59.86' �,�5? per MNBtu, u�p 3.1 e�cent �an the current average cost of 59.56. ______ Please conta� me 297- 55 or John Sprange�s at 292-1661 lf the�e � kW• � are any ques lons. Stncerely, I �udy Br n If D i rector of �1 a nce and Admini tratio RB:ak j , cc: City Co ncil mbers Karen Sw�enson, Council Research . Tom Weya�ndt, CI Att ney�s Of f t ce John Spr{angers, Mahlum d Associates I I �.:� I , . . ' I , �-��33 ��" ��_�F�'�� ES O F FU f�1 D S I, DHpC FY t 987 I FF. !d�_HI�;E FEE� �,s,.-y� �O�#NS;`RE EFVES i .47:j �.+ ` ENERGY CHARGES �25.3X I �1 \\ INTEREST (� .8r.} �'� �� r I 1 � i I \ f� . , ;. DE ANG CH RGES ;49.9X} -- I U ES OF FUNDS � DMDC FY 1987 i I FUEI dc ENERGY (2S.3X) DEBT SERVICE (33. X) I t ` ri/ '�T Ek fi,�:,j`.`�~� CAPIT.qL E�PEIVO �� ,,.,� . `�rf ORER ac AAAtN7 (�tj 3?;;i _ �__ _..a-"'" i ��Et•i � - � �Cn.�i�•� i.;.��,�i I il _ � � . . �� . � _ L'� -is'.�.� � saus�.�aM I �/�s/86 I D I TR IGT HEAT it� OEV ELOPNENT OONPANY BU�ET SUI�IIIRY j R YE AR EN D I 1� SEPTEI�B ER 3 0, 1987 SQIRCESI OF FU AMOUIr7 PERCENT ��______ _ OPERA?f It� ENUES ------- ��D �� S 5,388,4� 49.4�t �E ER;Y N�ES 2,759,403 25.34 RFE ITE DIS NT5 54,374 0.5 x I SUB TAL —�— � 8,202,263 75.2� � oTM� sa� I TEREST d MISG. RQIENUE 1,393,423 �2,g� • T PR E06 d ES Efd►E A(�CfS 693,644 6.4� DEFERRED FR/Wpi E FEES 623,005 5.7� �_�� --- SUB TAL 2,710,072 24.8� TOTI�L �SQlRCES = 10,912,335 100.0� assssrs:�:s zaosax USES OF �l1 t�6 . --��____ OPERAT�(� NSES R1 AND NEI�Y S 2,758,312 25.34 OPE�RATION AND MA TENANC� 2,213,495 20.3$ GE�ER�L D ADM I IS'tRAT N E 1,515,350 13.g� M �� I �B� 6,487,157 59.4� 07HER USES OEBT SERII I b FI ANCIi� �STS 3,638,974 33.3� CAP�TAL NDI1U ES 626,700 5.7� OTM� 159,504 1 .54 I��T 4,425,178 40.6� TOTAL U�ES S 10,912,335 100.OK __��:______ =_=___ I I -�- I � - � � � . �� 3 . 'Bt1pZATES.FSM • 7/18/86 � �, D IS ICf HE T it� DEiI B.OPNENT OONPIINY - RATE CAL Q1LAT IONS SU Y � ---- ----- ------------------------------------------ -- � � FY 1986 FY 1986 FY 1987 ' BU�ET POREGIS T !1) BU�ET M�M�� N��N M�� 1 I. OOM ER�G E MIWO ATE 2 - ---- -- 3 DE�IANO R ATEDM T5 5,589,330 20,277,789 6,384,458 4 �E�S: FU FROM T PROCEE06 0 -14,692,500 -317,500 5 LES�S: N.L TED RFE ITED DISOOUNTS -59,738 -32,071 -54,374 6 � ��N�NM� N�� 7 DENI'�1ND Q�I E REV ES R6QU IRED 5,529,592 5,553,218 6,012,584 8 9 DIV �OED BY OONTR OEMAND tKW) 159,760 159,576 144,386 �� UAL S OOiV IG E R TE PER lal/YR 534.61 534.80 541 .64 . 11 �U�V M.ENT RATE R IG�I/MO 52.89 52.90 53.48 12 13 1 I. ENEt�Y RA 14 - � 15 EMEF�Y R� TED OOS 3,492,658 3,119,950 2,758,312 16 LESS;: ALL TED Fn FE ITED DISOOUNTS 0 -22,065 p 1 I MM�� N��NNN 18 ENEF�Y CH E R�II ES RB�U IRED 3,492,658 3,097,885 2,7 312 lg � 20 DIY I�ED BY NER;Y ALES (I�M►H) 240,924 233,513 235,645 21 B�UI�S EN Y RATE PER M�1H 514.50 513.27 511.71 22 � 23 I II. DIFFE�RENTI d AQI TED RATE 24 ----- ��..� 25 DEMM�b RATE (S/Np�g �1U N AL ENT) 55.97 56.00 57.18 26 ENEI�lY RATE S/Mh8 6QU N AL ENT) 4.25 3.89 3.43 27 � ------ ---------- ------- 28 TOTAL ' �►y ER E RNTE pER M�g-N 10.21 9.89 10.61 '' 29 30 TAlr;E�" RATE 57.01 f7.01 57.01 31 LESS �OY ER/G RATE OV E -10.21 -9.89 -10.61 32 � 33 �U/�LS� DIFFE ENTI�I. R M�81U -3.20 -2.88 -3.60 34 35 TINES MN81U ES ( H X 3.413) 822,274 796,980 804,256 36 B�UALSiI 1DTAL IFFER TIAL -2,634,454 -2,292,014 - ,893,819 37 � 38 ESTIMA'�ED/A M. FR Qi ISE FEES 601,861 631,893 623,005 39 AD�►USThENT Tp DEMAND QIENUES -601,861 -631,893 23,005 40 CU RRENT FRAN IS E FE DU E p � p 41 � 42 NET DE 0 REY ENU ES U IRED 4,927,731 4,921,325 5 389,579 43 AD�UgTE�pE RATE S/KW/YR) 530.84 E30.84 44 AQIUSTED DE RATE S/KW/MO) 537.33 52.57 52.57 53.11 NOTE: �--- ------ ----------------------------------------------- ------- (1) FORfCAST R YEAR ASED ON 7 MONIHS ACTUAL d 5 IN�NTHS FRO,IEGTED TA -'� � �,.,., � , . - . . � . � -�� ENCtiG.18M � 7/18/86 � D I TR ICT EAT il� DEV ELOPNENT OONPANY - ENEI�Y OOST DETA I FY 1986 FY 19� 1987 ENEF�Y RQ A OOSTS BU�ET ACTU AL(1) p�� N��NM �� 1 A. RJH. D EN Y E�E SE 2 �p- 2,238,848 2,315,268 ,929,369 3 NAIU GAS 1,019,699 158,519 612,654 4 �� ''�� 30,030 375,978 20,634 5 �� S � 29,430 108,286 16 956 6 �ECfR ICITY 174,651 161,710 177,699 8 O1HER � 0 � 9 B. U NREAL ED EN Y REY ES 0 189 1,000 10 11 C. TOTAL , Ei�Y ATED ST5 3,492,658 3,119,950 '�'M ,758,312 ��MM� ��NN�N N�� M�� N �NN� �� NM��N��N�� MNN �.`� t 1) FOR�CAST R YEAR BASED ON 7 MpN1HS ACRIAL MID 5 NqNTHS PRO,!ECfEO QATA �I i . .. . pEM1Cx�.18M I • � � �--/�3� 7/18/86 ! � ! D ISTR Cf HEA ING DEN EL OPhENT OONPANY - DEMAND OOST DETA IL � � DEMAND R9.A D OOS � 1� � 1� FY 1987 � BU�ET ACTUIqL (1) BU�ET (2) ----________..___� i --------- ---------- ---------- 1 A. L�BT SERV I(E I NET 0 INTER T IN�F�E 2 INTEREST E�'ENSE 3,606,573 4,085,560 4,227,502 3 PR INCIPAL IREPAYME T 0 939,471 45 000 4 FINANCIPG QOS1� 1�,800 2,103,055 265,887 5 LESS: NqV-CASH I EN5 -808,601 -1,517,554 -854,415 6 LESS: INTEF�EST d ISC IN NE -394,721 -1,198,580 -1,393,423 7 8 SUBTOTN.j 2,602 051 4,411 MN ---��- 9 ,952 2,290,551 10 & NqV-ENEt�Y OP�RAT fNG D�ENS 11 P�./WT L/�� 808,702 749,289 842,200 �2 R MIT MA INT�NMICE 428,000 477,960 552 500 13 OTHER RMIT� 297,544 411,326 564,645 14 D ISTR�UTIOM E�EN E 191,601 159,990 254,150 �5 GENERIL MID AOM IN I 1RAT N 16 S/K.IIR IES � EMPLO E � 592,466 631,388 732,700 17 OONSULTANT FEES 245,600 282,941 372,100 �$ OFFIC�E EXPENSE b OTHER 180,701 176,649 280,550 19 UNRE/t, Q E� pEMAN RQI ES 236,296 336,213 130,000 20 ; ______ M_______ 22 ��T�' i 2,980,910 3,225,756 3,728,845 23 C. CAP ITAL EXPENDIIIU RES 24 PL/WT 2,395,118 295,403 82,000 25 DISIRIBUTION� SYSTE 303,400 1,036,927 507,500 26 O1N ER i 27 20,680 24,497 37,200 2V �� N MN� �� 29 �B�T� 2,719,198 1,356,827 626,700 30 D. O�IN�GE lN MORKIING CAP T/y� 31 FUQ INVprTD INCR ASE (D GZEASE) 0 -5,080 p 32 RESE(d►E FU1�6�INCRE E (DE EASE) -2,745,635 11,524,708 -367 621 33 on�� ar�a� �ss INQtE E (DECREASE) 52,075 37,729 -488�765 34 OONSIRUGTION �YABL DECRE E (INCREASE) 124,551 609,739 207,356 35 01HER Q1RRpr'!' L Iqg. pZEqS (INQtEASE) -143,820 -808,384 387,392 36 � 37 SUB'tpTN. � -2,712,829 11 ,283,254 261,638 38 39 E. E�ANS IpN RES ERV�E FU 1� � p 0 40 4� TOTAI. OEMAND R�ATED STS S 5,589,330 20,277,789 6 384,458 ---------- ---------- -- ------- --------------- '..�_ �_ ----------------------- ----------------- -------- NOTES; � �1) FORECAST BAS�D ON 7 MONIHS OF ACN AL DATA AND 5 I�DNIHS PROJ ECTED �2) ASSUNES 4.5 PERCFN INR.AT ON WNERE MDRE SPECIFIC QATA NOT AYAILNBLE ' i i ;� , . . '� �.�i.s3 3 � � ��, � � Atta hment 2 Rate I nc�QAeQ I fl*'A/'M9�tA1� _ , In 'acoo�d nce wl OHDC�s agreement Mith its custaners which allars i�t to m ke ann 1 rate adJustments based on actuai operattng costs, dF�C I s propos i ng new hot M ate� d 1 str t ct heat t ng �ates f or� 1986-198,7 char s. e new rates received unanimous DHDC board approval�,, (ncl ding c taner representatives, in June. Thel newr r es mus be app�oved by the St. Paui City Counci I unde the hot �ater f anchT ordinanc�. AI1 hot water dlstrict heating custaa�ers are r Iv f n a deta I i ed not 1 ce of the f t 1 ing and can atten a �ate meeting or add tional information. DHOQ uses two- rt rate which Inciudes both an ene�gy charge and a dem�and ch rge. e energy charge is designed to oover fuel and energy o�'�ts onl ; the and charge to cover ali ofiher oosts, � incl uding�� f I�oed pe�ati g expenses, debt serv ice, and capitai improvements. e ene� rate, which is charged according to actual e�e�gy use as �e ered, i I I go dow n to S 11.71 pe� megarr att�hour�(NM►h) of thermal', ener from 14.50 per M�Ih. Th Is decrease ref lects sav tngs on f ue I oc►sts an i ncre ses i n p 1 ant ef f Ic I ency t-esu i ti ng f rom impravements m s 1 nc�e 1983. The d',�mand ate, rged to all customers fn twelve equal monthl Installmen�ts ba on th Ir contract demand, Mfll be 53.11 monthly per kilowatt (�CM) of and, fran the cur�ent �ate of 52.57. The proposed �ate is oo�side� ly bei the level allaved tn the custaner agr'ee�nent. ', DHDC's� hot w ter di trtct heatTng systera ptpes wate� heated at 't'he cowpany',�s Thi d Str Plant to custaner�s buildings. Custaners A use the hea�t f�am the wa r to meet their space heating, water heating, and p� ss(ng n eds. The pTpfng sytem then returns the water to th� pl a to be eheated and reused. Constraction f the �itial dowM�own system rras canpieted in 1984--cne y�ar ah d of s edu I e and S 1.3 m i I I ion under budget. Pi p i ng was added i� th e L ertow and Mount A i ry areas I ast year. Nbre th an 100 downtoai n area u i I d t n and nearl y 300 res i de�rt i ai tow nhomes now reoeive DHDC` servi , wit extensions to eight additional bulidings p I anned for `th t s y ar. � � �' . ��" , ., �� • � �'�p--/✓.3� � ' �� ' � � Att chment 3 ..�,,. . +'`` CITY OF' S�1INT PAUL u=J3 - %/� ' y�� ONFICE r � ��:u . I, OF TH I� CI1`Y COIINCZL . � �I NOTICE OF CUSTOMER RIGHTS Distriqt Heat ag Dev lopment Company (DHDC� has submitted a re the Citpr Couri il to ange its rates charged to Saint Paul ��o��o � 8 � �� r, u have certain rights to be informed about thi change aad ap rtunit es to express your views oa them before the Ci Councillacts DHDC' request. The purpose of this notice is those righta a d oppo tunities. to des ribe Backttround --,_ . DHDC has! a fr hise m the City to use streets and for pipit�g and ther e uipment in operation of its hotpwater utilit�y �tY �atCer su horize the City Council to regulate rates of such fr �e chised u$ilitie . Proc dures for rate re Fienefit tto indi dual DC customers, areg setiout in�he D$ those of " orilinaacel (prd nce N . 16947j and a subsequeat Council re�ut�� eF• 85 - 91g)!. • • • ortvaities f cust rs �to be infozmed � ' DHDC send� to ea cust r within 30 days of fi summarizi�g the ropose rate chaage, this notic�o�f eustomererights�t d informatida oa e cvst r �etiag betw�en DHDC � its customers. ._ _ D� wi11 �SChed , arz' ge for, and hold a ' meetiag, D�iDC wi expla aad discuss tFie �ustomer meeting. At this give each �ustome copie of the pr�Posed rate change and wi chise ordi�ance. ch c tomer has=tfiesright�tosask questi nsfiand dis�r 8 . the proposid rate at th customer meeting. 6- 0 ortuaiti� s for custo rs to be heard The Citq Co�snc�l t hol a public hearing on the before it a ts on he cha Pmposed rate change � 8e• My customer ox member of the public may present stat�emeats or evi ence to the Gity Counci], concerning�'the propos d rates at the� publi hear g. Notice of the public h�arin is the Le�;al i,�dger; ersons can also find out the date, time, andbplace by calling tTie ,City C erk (� 8-4231). . In addition,� the uncil' standard practice is to discuss proposed resol - tions inform�lly i commi ee. � proposed rat�e chan will e discussed�intthe Council s Enerdisapprove th and Environmgnt Co itCee. Customers and members of the public may make gy, Utilities comments and ask qu stions at the coAanittee meeting; da:Ce, time, and plac are availabl� from he Cit Clerk. If there arelobject ons to the proposed rates, the City CounCil ma re ue that one or u�ore cu tomers nd DHDC meet informally with City representat tes to resolve su,�h obj ctions micably. � . ClTY HALL � SEV NTH F/.nn�r . . __ - - -- - - �_ _ .. , . _ . - - �- - - • :_ . �� , . _ . , _ _ _ . I ,_ _ � , ' _ '� ��I�Y_ - - - - =: _- _�:_ . . _ _ . . . _ _ _ ._ - . . __ _ .� . _ . _ , _ _ -- __ , . - -- � - _ :.. _ - ____ ___�_, .__�. - - - - - - � �. :--=-___ _ _ _ - :, - : - _ - - _ _.. __ -- _... _ . . . . . _ . r. ;, . _ - _ . , - �� . . - . � . � . �. , . ; - : - . ,- . _ -- � �� - - -- � _ .,�' .____ - - � �� - . . �� I NOTIC OF PU LIC HEARING ON THE REQUEST -.• � OF DIS CT H TING DEYELOPMENT COMPANY 1�'��''K A�^ ' � - I FOIi INCBEASE IN RATES - - - " _ Notice�s herby iven tha the City Council of the Citp of Saint Paul,Min- • - - nesota,wi meet in he Counc Chambers.Third Floor of the City Hall and Court House in the City o Saint P 1.Minnesota at 10:00 a.m.(CST�on Rr2rs�a�+28'� _ � �9$5,to cor�sider the uest o District Heating Development Company for a� A copyjof the ra e request available for public inspectian from 8:00 a.m.to 4:30 p.m.NIlonday t Fridag,at the Oifice of the City Clerk.Room 386 City Hall and Court House in int Pau Minnesota.At the time and place fixed for Public , �Iearing thle City C ncil of t e City of Saint Paul will give all persons who ap- pear at the hearing oppo ity to express their veiws with respect to the pro- _ posed req t. ____� �' f ._ 14.I98 --•_ � 1 � � ALBEftT�.OLSO .City Cl k ��. / (�a�-]6s-39�,5� - - - _ - _••_ .e�GT?.S./�/��,;o ---- � �._ ` _ ... . .. .._._. �.... ..;;.,�r...._,a�.o. �__. . .. __,.._ .,--�..,-- � .......�...,�.�.:....., _ _. __ --_ _ _ _�- _ - - .__ _ ` I _ . .. . - ' I _.. --- __ - �� , � "� � � � �.- - _ _. _ �� _ �, �✓h � . ---- .. �1 �t G 8 � ,� � - ��...� � . :-_;._----�_ - �� C�-� � / �5 �'6 f - - �-�--� � � , � � ` ` � �"'�3.�c� n _ �, n n , Z -,+-: 0 -� ; t �:. ��t—��L..�� /l.e-G� V �;; ��,�-- j � - � - .- -� �=��. � c�,�,�.,,,� ; r :� l .,��. � r �,:�� - _ ( `� � _�� 6 , - � _ - - , - -- ; _. __ - , -- � - . - I . � /� _ `�` _ _ _. ,. _ �F �7�"r t a�v: t'�i+# f c: � g ',� f .p.k. �.Dt't .� '�r�: '�,�' y .. :� f .: ,� 7�.F} �v .t:.. � r � F ��E„� � �.zi �,�� . � : � � e� � � ° ) i $ �� ° ��! , '� r d �_-� �5"� '�� l.' r '� j . e ry� "' � e a� 1 t il1� � + j , 1 �;'t� ' � � rl�r:�� '��. r r� t } f ,� � � C t� �� 4 ` ._ t �. � � ��' z t �� `� 1 l +R 1r , i .�. ` �, , : � �i+' �,� � C'�, :., � �� ; la� q1 �� 5 .. t,•,.�`� .� 'h' ��:: t � & :�F ` t f �- � 5,;�Y� � �:��. ! *•;:i� 7t_. t i` .. � � ° 7.� Y�r ,,o �• . � s �h��.' � i':r � �. hw P�. �a�'' aii�,�:.. �p� r; 4 � �+ f � ; . � ,. r-. f� � � ✓i ��-�' � �� Gv ��,� �:��,� r�,�,: }1 i� t',� ' s h � s� �' a'"g � :� �� . '� � ��`' ' �' ^ . `' s '� '� �4'� � ��'s �� +� 'i � Fi .g,y r � �� '�` :1 `� f_..� �s r� � �� ` F � t t� �t � i��i �'��,�'h ,�.i', a .a i �� +�� , � � `. r� � �,� �� g F � > � !� � �y � � �� hy�+ �Fr � � � • d Xr � ' + .. (.n "� ��.�` sd�� + a � . � .�' .. � ti. f' � � _ �.��'�` , t �,' ��'' 4 ., ° �l&?��, �,'' � 1 � � n e k ,y �S. � �' 'i�'1 }�,�t � ��'.7 d t .;s ��`� a-y\ '` � `t � ��, ,�� d i � , 7 � � a�}, y ��':t �. ` 1 f 7�k � ?y� � � . '. t ° � x '� 1 � � .� S T.I .` ! ! 5t t�' h Si% �; � � � ° �� f �t ,�„t 1 , � �� ,: � ; � � ,� ��,_ Y � � .t � ,,.;. ��P � � ',"�' . �F K,s, � �i -. �: ,�� b; ,��♦ [ < : ✓ I . 1 � 0 7 ?� 'r�' r '� 4 ,� 4 ( - , � r �` � 1 �: { , .` 1 � < �' , a � x , �'+'�' �� { � �s � r�� ,`' f �� e � � +'r, f ��a a i�F.� ,'' s"�� t i�� F �� a' � �P � r�` �"'ggg � y� � �_ � y �t p '. A �:#� . � d , a �� J.:� �- ��./t � �� z � x�:� ' / �, � � �� a � 4� � � T ' � �� :�p � � ��. ' � �. � :.'t � ' !#c .�{ �r : *� � �"� S,�a�,�. .� i ,� la � `� � � ��1 �� + � ,N �i (. t �'� �, :C. ' � �cr 3�+ �;� 1 . C � .{� � ."��rf �_ �k �'' ' L . . y� ;� �' � ?'�3 � _. L. � 'i t`�- ,.A' �__. � . ��..: ) .'Y ! i' Y F `l � :� � y� t t ?+t r� , �k; 1 7{��?,� y �n�� 2 �v.� r t � r ( d '... i r� 7 M � �� •.� `� f�r..� r i` � .y �,. � .t � ��_� s 1� Y � .� ' i i..� f� � 5 ' h' ' ° _j" � � .� ,�' � ��' !> '� i � �� K,�� ) i t �"`^�4 i_4 1 � �. j Fv'�,� :� 4r: i �f' 1 .. n } / ;� + 1 s � � �� '� i � . .e q ��` � � �� : j�. a't'' �_ � � � { ; ,�� <� E v �.:F t �r. aG i f i �- � �l 4 Y � � 4 t ,� /i. � n �g � �1 f i r �� ',' tA.�"* t��` Y �1�� '�� - �,` �.� t � l .t+ " � � i F � ��R� 1 � C� t �L t . t r � k� a.� ?.� �a4. l,.i�� '�n�'� ,��`� r.,'�� ,,, �'�= k ` i �� i � r �� b� � �j� a� �� f� � �� `� � -� x c��. ��'� � •�� e�, ,/t � ��{ { .;i F� x ;{7 � y . f� " �- ��F �;�. �+++��.�` ! 'a� : `�i� yt � � d n � �£ � .w �'�� 4, �'� kY,:" 1 � s � � � 1' I�� i !� v ',�+� : � l f ;3{ .�� #;:� � � .�'i,+� x \ �'�.":j� fr �x j � �� - r � � _.c,� 'f y� "�''�� I L�+ r ' '� �� 1 � �� ~. t�.�. t f<��-A r Y ' i ;» �7rf R � ;a�d�a 3��-��. �� k�.��°�j�'�� \, Y r� ` �: x j ,.. :; ,.�,� `,. ,��$ ,� t c `�t � � � �° � y {� a t 4�f#�� s � e� ;�� 'a"�4' i t 'c,�, t �-� b a " `,, �,a t 5 �;. ' i �� . , + d r � � I z .� y -�,�.s"��.�(• '+k� � � � �;� � � � y,r,,�, �E�V�� '� � �� , 1�� T � �y �.; � � r � �� .�t� y4 � � 4 �� Y �t,5�1 � , �` �''� ' � R ..\+i'r �'�'4� ; ,. '. �� :r a'� ' � y` � �.� t r�'�F,°.�s�� ^ x � ~ r�1�j tvi� ��. � c ( 1� ?I� t/� � y -+"7� .�t C� �` � � }e}d,� ` i ��51f '� :�i �jg��' t § ��i � r 'i .- �" :jt � �.�t 4 ',,� � �_, � � .�z��f�"�aSi d+q?IF� .a�. `�- � (�� ,� .: ° / � �. x�' p{� �f4�4 u , �,,�{ �i .d �/ � � ` t b ':e �' 1.' n� r ?,7 _� e p �� +�t}� r �`�� 7' , k �# F F � � ._ �� . i� � {i _*t (�" ��i 1 .�'"� �J f_, �� .Y _ � , i � a� t , � ��r �v ��y. t f .K � ..•1 ' ` � r�T`. 1� �' x :�,y �� '. ;�1 •. y �°4 . � �.t�^�' �:. w ,��} , . �,� a � -'' t "� � �� ' � a. r ,� � '� r - • i. t �, � '$ tx � � �, ��.I �z �° t� 4 .�. .{ � � , �y�� :: r �. ) y � . � n. Ti {� ;r. � _ � r.�`��:: � \ o ; ,S� :.�. / � � �.F � �� f;t�/ r �r�7� � '..' �.r'�� `, ' �.t �� ,��,12�+.x �{�. � / F �" ' �' < i, r �, kk ..;,p r X �r�'� � f � .��_•.�'#" . .;q,t �� ,I �� y ' � � a `�,ti�; � r''- ' � s� .•��`'� �+�� ,�. � +� �`F tr: � 4 '.�� - p�� i ,. ,�_� r , ..±�r �p r � a a' � � ' y '� '•`'. yi � � " _ �:: � �� i� e� a i -u�+'� Y S: � � r�"' � • kaf� �'� � J ti � -b ,. . � . ti � a�! '�'��f�e }� '� `r :�t �, f �.• � � t�r { r, � -; ��C "9 s w �� 'h�` � � � � �"" 9_ �� G : 4 „ k i � ' r� } � 4� r ., T. ��?Y'yM�tij� � i -�.. �x '�' 'f. �.? ,�� + ( , r .':��rs,� ''�n5�. ;� k� ; >' , �i�+i��i� y�� ..c'',; k+ �/ _ . I �.',� 1 ��w�� 3_ t�,. 7 *� y<_ I �r ,: � , 2 �,A I N..i � v� .. . 1� � ..� e � r � p ' � h� '� �r� .,aj 4� :, `�� °: f'��$�r�.�� l ° e �:� � 1, �� t r � ;.. � ; � j �q i!� 3 r�7 _t�}�,� � -� �`�� y'.r}��'k 9_ .�i h�i. �s {; ��t fn �� .a a:, � • �� RR� � ; � � �` �j'� � "� ' s " • �+� � �.' yx'f�� {. _.r � `�x p' � 1; � ; �. � 7# ti..t .. �F�.�+ z ,� , � h Y��y .. u� �. : � . �F'�S 5 ..R �w'�_ '�. `�� l � J �' F Y � ,2 F� 't E �` �� 2 R�F P'�� i � ,.a t �� .t, � � r i . T '�p `h ��r �� +� � .'S� � ' � � �' � � � �.� x � 1 �tj��; � r��''� �" �f�: � y lc} � _y r . '` �fr tU' .�'''. �n �,^t i ��'��+� /•��` Y�'��F(y� � Y 1 ? � � ' y �'3 y` �`y�i r �� T ��° �{.`�� -. �R ��`�'` x 1 "� i�..�'a > ¢��r-f'l�F .�E 4 g �. ; �__> "�` ' � y � , A, � ��. �h f�{ } ��.,.3 3 y i r � ;.. � ; z��`F�,-f.t?� �:,�p��'�� X � ( ' 'N - `- j � f _` .'t �:, �' 1 . ..1 1 �5,�� ' il (�4i/t� h 'S1��Y ,L,� � - �`` �l, �Y �� Y :i � . �:,i � :1;-� f " � ,�T . ' � � +. ��° i �.3a �y�,.�ti &�. Z ('� � . �k � � s� ��r r . ^a �. l � � � � c .n "l''} 5 � , � . � �' � #'i � ;, r r 1 _ f ;t' r ..z ..,�r j� � �.` v ,+ � �- . � i,.• ,� i � , �1 l r �•. \ � a i .! �d r ,. � i :` n a' k�- �.. 1 k :y, k p�. �^''��d,yY> � i t _� _.b .^{ �� , ._ � A � �t r t� e�' p !�• ) r �� " 1 L.. r '� ��f� � �' �1' �' c �, / �' �, � �i�� . � �,� �.ja� .. � a� �' e �. t [ , _� � a .� ��., i V . � � �� r �' . ; } '.,+' . ry j/ t '+ x "r"� l �;� � 1 ° rf�x � r � '� i �� .y < ,� / � ` 1� 1 V �;>' � 'r . f -� � ��N � ,{ 3 � a i 1 �'�' x � 3..1 S' c�.. � .. q � < 4 T''� �* '� � a �� "� '} � a � " i �� ' + - : l t t :c � i- . Y.,`4�. f `". 4 }�k � f i � � �� :�/ + ��¢ ' _� � �: � } �.� �� i �� b �'q �'�. � �� gcv�� '�e��,,��'. /s v�` �.�{ 4r !j� � `� r . 1, •s � ' � t' � � �� .t'� i.f�. t �8- � pi�ie y; n C �. �` 1� t ;t c t t ^� '° �� '�� µj ="1+ �. , kt - �. �: j Yt � §.. S� �r t r ,.��/` � � ti f ti* �. '1 y; E j �.ti, 1 ,� _ ., �#y. �.: y { _ ... . �� A �y.�r'�' . ,. 1 {,_ I t Y : � � � �i / -\ �� " � � i � }i �t'�n �fA � ��. i ��{. '{�3 *. v i a � s � � r�- ��,.t v t� <i� �� ti� �� ;��.: �i x, �� i'�� ) cY �� r�. .h t .,�� t�� i � i �vrr'X��;p.i� � y � � � s � t �� w $ 1' . ,j� �. kr � �t � � +�. t �t S �J �;1 } ', ti �'� i �' � r � �` t� 7 �� - � �> .{ z 1 � �� L ' .� r�° {�� 1 ��' k- 1 '�'y t �.� r x � ,�,/�- f =�� :z :'- ) .z�� . F v. �, ha � xJ � k � r�� . {''- �r'� �S'� �� P�i� t ^7 0. :l .� ,r ' ,y / � x .:�{ ! '+� �`; �� r ,F � ��.�� .�. � '� .�;rnk !t �� k :� � i�i � r�.,� �'/. � x .r�V � � r. �.S � t �..�.� r w.. � � r; , ' � 7 �� 'S �� ,. �?7` s c f r � v, :r � � ��t r � � � �r +-�� .s . �,, �4 a/ '; 6' �. • ;�' ) l � �` �ft i;�l• ' }'�" �`� � t ��k t ' �u ''k � 3` � � �" s �' �,i t�.'�n `1 r,� �x r� � �. t, i�( �� .. +�r ° ��,�"��`'� fi � .�r ' } f� u ,� 1� Y� , �r�� a '� 1 �,� r � � )� Y �'� F �Tc `. t � ��.�.: ( �{,� � .I 1 �� ,- i �✓. Y� ' �� ,�t y ., s t � ;Fr � � ; � �� i � � C ; i ��, k .. � �( `,� �{7rc '*:'S� °�i �� Y� t � j� � yt.y. y3 � ; � �, �j . y : p-'S .y �; �A`-,, _ � �� ty 1 Ft.:� .� '� `�,�.� a.. +F • � }�n +� G� � �: 1 1 q � }� `i ,_�l � � � 3 I � � n 4 h } � f e"�;` � )' ^' � �';. � ty�, '.o� iJ .. °x �4'` � � -'� 1 .^x? / � ��.'�,�tY�„r'+ � /� � °,� ��7� K.. ii p-� �( .: b,r 't z ( �,-k� Y� �� r �� ', ,.o r: � �'n' k i y t�. a d v .x � '�t P f 5,�� ':-�t r� ;.`l� ...� s � � � '� t'� `„� e.?; �� ++�ti�i,",` � � � - i.� ., y °�`�,� ��v, �°� '�� r ��X qF r �� ` .. T'�S,� 1 � i �. , `*��'� 7 ��.� ��C 3��,`� '. � r�. � <, '�~ �� ' �� ..� 7f � }� {� �; t .� �1 �k� en4�;.} �.�1 1 ?�'� � � � 5� } t. �� o- ' a � �� .�� t ,' �F R �> .�«l � �`a I,. ; Y � / - / N /( �. '1f � t A �. 'l h k-� �� h '/ �� 'if L �'� , 1 4{�i �1 ..� A ' P � i I ' � '�. ((1 y Z 1 ' �!c'�' .,�+' r � � ? I �f f P ��{�' < 1 ° r a �� y �...,, i2 � �. r � t �'•.� � YN �' � �� j R r�;n i > ��''s� � a. -� �� t�{ i�Y� � r� } °z . �} � � i k �U 1�. � I _� , � r � Y �; �� 'Sskr�` � t � �� fti� 6� v� ',� �.' ;+ r, . , i ( ��. � : - .+ t" � � k.. f', t� i� ° L �t�"" v S�rs �' F y � � �# `'' � / �aW'' � 7 1 �' ) 4_)� r L ` #, �t� � $ �, {1 � �+.n� �`�r, r �. . � � E p � �'�T � .. 1 x z e�t � w ? $� � . '� m� s� �� / i' r � I :r Y � i . n �:� sE �, � �j r �s t � ��, �,r'`� i 'K� �e,�y r f f� t �.`t f . � i�,�.l i ' t I � �� rf � �r d i: f �� 4 � }y ( Y > "%•�.� '� � Y""}�7��1i� 1 �i� g • ( �' � Z ' d r `y� �.�� .,. � f „ . �,. 1� ry�..f � f 3 � �+• e �y�t�{ ` �"� � ��r a.r t � � '� �� f e a °:� ' ;Y� &� � �� , � , �� TM �'� .� � i� 'T '" �a�,x'� �; �'. - r� .�'1 �� , j t � �i ��. � i ,��i ��3t>9 � � � � ti v, � �s 1 ,. -..T � � {' �! R' . y� `i . � � _�i � '� ,� �" � -r aa n, �. 6 �f � + �, �,.`�i'�r �.p �� .r � � 1 �. f 'u �:�, �� t .. �� ; , ' � � , �s ,. �. �'� 1 f ,1..� ' r, ; { - kt,4� r� .��. � � sy.i +� t _ �;. � i f}. 1� � � w � f � i �� 6 g, � x pA 1 s �� , ��( - 1.� � `� � t � 1 � { �t �i��'' Il� r �. '� '� � . �� +F � r� . .� �� _ �- .�� .,... ,. .�"- ,..��.� y� .,_ a. +' . . . � . . .. , . -,.i... . ��'_�frs-+�'�� i�, ��.< x),_sr .5.�5��.,.d .�,�.:� .e.�_.,,�..� �i'+ d . , . '� , c� � -�5.3 � ' Dis rict - He ting ��=� , De lopme � F,tEO Co pany 1 h % �U I y 18� y 986 �,��, r��i C E a private non-profit company C �Y C� � ' 1 76 West ellogg Boulevard � �' ' St. Paul, N 55102-1161 � (612)297 8955 Albert B. ',Olson City Clerk City of St. Paul 2nd Floor �City H I I St. Paul , ',Minnes ta 55102 Dear Mr. Olson: Pursuant t+o Sect on 6(e) of the hot water district heating franchise (City Ordi�,nance 16947 opted July 20, 1982), District Heating Developmen+h Comp ny her y files notice of the rates to be charged to all hot wa�ter cu omers ffective October 1 , 1986. These rate� were determi ed in accordance with the Hot Water Delivery Agreement and app oved u animously by DHDC�s Board on June 24, 1986. As detaile� on th enclo ed exhibits, the new rates are: Energy rat�: $11 71 per megawatt-hour (down from current rate of � $14 50 per NA�Vh) Demand ratQ: $3. 1 per ilowatt per month (up from current rate of S2. 5 per W) These rate� produ e an o erall cost to the typtcal customer of $9.86 per MNBtu, iup 3.1 percen f ran the current average cost of 59.56. Please cont��act me at 297 955 or John Sprangers at 292-1661 if there are any que�stions. Sincerely, I� udy Br n Ifs D i rector of1F i nc and Administrati n RB:ak �, cc: City Cquncil mbers Karen 9wenson Council Research Tom Wey,andt, ity At rney's Office John Spranger , Mahl b Assoctates i , , � ' � � -��.�� S8U87.f8M ' 7/18/86 ' I DIS ICT HEATII� DEYQOPN�NT 00NPANY � BU�ET SU MMARY ' FOR YEAR ENDING SEPTENBER 30, 1987 , SQJ RC�S �F RJ AMOU NT PERCENT ---------+------ ------ ------- OPERAT I� RNI ES OE�NO G-i ES � 5,388,486 49.4$ ENE]I�Y CH ES 2,759,403 25.3� FORFE ITED DISOOU 54,374 0.5� --------- ------ � SUBTO AL 8,202,263 75.2� O1H ER SIQI RCES INT�REST M ISC. EV ENUE 1 ,393,423 12.8� DEBT PROCE DS & R ERV E ACCTS 693,644 6.4� DEF�RRED ANCN IS FEES 623,005 5.7� � --------- ------ iSUBTq 2,710,072 24.8� TOTAL SQIRCES E 10,912,335 100.0� � USES OF Fl�ND6 -------------- OPERAT II�G EXPE S ES FUELi AND E EF�Y � 2,758,312 25.3� OPEF�AT ION D MA I TENANCE 2,213,495 20.3� GENERPL AN ADM IN TRAT N E 1 ,515,350 13.9$ --------- ------ 'SUBIDT 6,487,157 59.4� O1H ER U S,� DEBT SERV I b FIN CII�G OOSTS 3 638 974 33.3 CAPI�TAL E NDITUR S �626,700 5.7� 0'tH ER 159,504 1 .5� �UBTOT 4,425,178 40.6� TOTAL US�S a 10,912,335 100.0� ___________ ______ i �I � �I `• , , � , 1.�+` °`p-- ,�� :_��:_��. � F.:�_:E:_:� �y�F F l�i �� Ca r� GHDC: F'i' 1 :�P7 FRW.f C:HI_;E F ES i r5.'.�"ti LCst;PJSlF�E,�E �`E'� (6. �'j F:,�" —�� ,��' �, �� ENERGY' CH:;R��=ES f�F�.3�',� . / ` �`1 `�� INTER ST (12, 96j r �', �� 7` \�� '� 5'� \��.� � � � �5 ,7� 1�j f ,� ! .y - f��r. '--� dr� GEf� ".PJD ��H R�?ES (�'�.�'q'� . � �ES ��7F FUND� , DHDC Ff 1987 ; .�_ FUEL & ENERGY (25.33b) DEBT SER GE (33 39b} �� f ti .�1� �� ,' y� . 'f �'� '1 '�r :�r H E� �;7 �;�;;� `�' ,-. '',,, ` �=:FEFt c�: A,9AIf�JT (�=i,3;'j �:�.+�FIT.kL E::FEM11D I":5,'�1 �` � ' I `i� �� ' ._ _ _—_ _jYY Ii C�EPJ � ::.DhAi (1 3,'=y�'i � ' � . , � � . � ��/5.3.� BU DR ATES.PB M I 7/18/86 D�S TR I CT H EAT I DEV Q OPN�N T 00 NPAN Y - RATE CAL Q1 L AT IONS SU MMAR -------- ------ ---------------------------------------------- I FY 1986 FY 1986 1987 BU�ET FORECAST (1) �ET I -------- ------------ ----- 1 I. OO�V ER/�;E OE D RAT � 2 ------{------ ------ 3 DEMAND Rft.AT D OOS 5,589,330 20,277,789 ,384,458 4 LESS: FUI�S OM T PROCEED6 0 -14,692,500 -317,500 5 LESS: ALLOCA D FOR ITED DISOOUNTS -59,738 -32,071 -54,374 6 ---------- ---------- ------- 7 DEMAND,I G-IAI7; REVENU REQU IRED 5,529,592 5,553,218 ,012,584 8 9 DIV IOED BY TRAGT MAND (KW) 159,760 159,576 144,386 10 �UAL S� OOV ER E RATE PER IdV/YR 534.61 E34.80 E41 .64 11 6QU N A�ENT R E PER /MO E2.89 E2.90 E3.48 12 13 I I. ENEI�Y RATE 14 ------�---- 15 ENE�Y RELA OOSTS 3,492,658 3,119,950 ,758,312 16 LESS: �1LLOCA D FnR ITED DISOOUNTS 0 -22,065 0 17 ---------- ---------- ------- 18 ENEf�Y 4iAf�E REV ENU R�IU IRED 3,492,658 3,097,885 ,758,312 19 20 DlV IDEI� BY EN Y S ES (MWH) 240,924 233,513 235,645 21 B�UALS ENEF�Y RATE R hWH E14.50 E13.27 t11 .71 22 1�� 23 I II. DIFFER�IVTIPL ADJUS D RATE 24 ------------- ------ ------- 25 DEMAND IRATE ( /MMB1U EQU NALENT) a5.97 56.00 57.18 26 ENEfT,Y RATE ( /Mf�B1U BQU N AL ENT) 4.25 3.89 3.43 27 ------ ---------- - ------- 28 TOTAI. (�dV ERAG RATE R MNB1U 10.21 9.89 10.61 29 30 TAI�ET RATE 57.01 a7.01 E7.01 31 LESS OO�f ERAG E RATE OV E -10.21 -9.89 -10.61 32 ------ ------ ------ 33 EQUPLS DIFFER TIAL R MNB1U -3.20 -2.88 -3.60 34 35 TIhES lU S ES (MW X 3.413) 822,274 796,980 804,256 36 �UAL S TUTAL I FFEREN IAL -2,634,454 -2,292,014 -2 893,819 37 38 ESTIMATED/ACTUPL FRAN ISE FEES 601,861 631,893 623,005 39 AWUS NT Tt� DEMAND EVENUES -601,861 -631,893 623,005 40 CURRENT�FRAN ISE FEE OUE 0 0 0 41 42 NET DE D REV ENUES R QU IRED 4,927,731 4,921 ,325 5 389,579 43 ADJUSTE�DEMAN RATE E/KW/YR) E30.84 a30.84 �37.33 44 ADJUSTED DE MAN RATE S/KW/MO) �2.57 �2.57 E3.11 -------�------ ------ --------------------------------------------- ------- NOTE: (1) FOR�CAS T R YE AR B AS ED ON 7 MON1N S ACTU AL d 5 NI�N 1H S PROJ ECTED ATA I I '� . � ' � , . . �/.s.�3 � ENG-IG. F8M i 7/18/86 I D STR ICT HEAT I1� DEV QOPNENT OONPANY - ENEI�Y OOST DETA I i FY 1986 FY 1986 1987 ENEf��' REL A D 00S BU�ET ACTU AL(1) �ET ------�------ ----- ------- --------- ------ 1 A. Rl EL AIN D EN Y EXPE S E 2 COAL! 2,238,848 2,315,268 1 ,929,369 3 NATU�RAL G 1 ,019,699 158,519 612,6 54 4 FU H. O IL 30,030 375,978 20,634 5 PURCI-IASED TEAM 29,430 108,286 16,956 6 EIECTR ICIT 174,651 161,710 177,699 � �TM� 0 0 0 8 ! 9 B. U NREAL �IZ ED EN F�Y R ENU ES 0 189 1 ,000 10 ---------- ---------- -------- 11 C. TOTAL �NEF�Y ELATED COSTS 3,492,658 3,119,950 2,758,312 i ---------- ---------- -------- � � ------rt------ ------ ---------------------------------------------- --------- NOTE: � (1) FOI�ECAS T R YE B AS ED ON 7 MON TH S ACTU AL AN D 5 NpN TH S PROJ ECTE QATA i i i � i ,I i i i I� � � • • i ' ' . • • ' � ; ' ' • ��/S �� DE MG-IG. I�M , 7/18/86 , I! DIS IGT HEA (NG DEVELOPMENT OOhPANY - DEMAND OOST DETAIL � FY 1986 FY 1986 FY 1987 DEMAND R�AtED OOS BU�ET ACTUAL (1) BU�ET (2) -----------1------ - --------- ---------- ---------- 1 A. DEBT SERV IC� NET 0 INTER T INODNE 2 INTEREST E�XPENSE 3,606,573 4,085,560 4,227,502 3 PR INCI PAL REPAYM NT 0 939,471 45,000 4 FINANCIPG 'ODSTS 198,800 2,103,055 265,887 5 LESS: NON-CASH TEMS -808,601 -1 ,517,554 -854,415 6 LESS: INTdREST d, M ISC 1 NE -394,721 -1 ,198,580 -1 ,393,423 � --------- --------- --------- 8 SUBIDT/y.. 2,602,051 4,411 ,952 2,290,551 9 10 B. NON-ENEa;Y Oj'ERAT I EXPEN E 11 PLANT LPBOl� 808,702 749,289 842,200 12 PLANT MAINfiENANCF 428,000 477,960 552,500 13 �TM� R-�'� 297,544 411,326 564,645 14 DISTR IBUTIQN E�E SE 191 ,601 159,990 254,150 15 GENER�L. ANQ ADM IN ISTRAT E 16 SALAR IES b ENPL YEE � 592,466 631,388 732,700 17 OONSULTAI�T FEES 245,600 282,941 372,100 18 OFFIC� EXPENSE OTHER 180,701 176,649 280,550 19 UNREPL QED DE 0 R& ES 236,296 336,213 130,000 20 --------- --------- --------- 21 SUB?�TALI 2,980,910 3,225,756 3,728,845 22 ' 23 C. CAP I TAL EXPEN!D 1 TU R 24 R-ANT � 2,395,118 295,403 82,000 25 D 1S 1R IBUT ION SYS M 303,400 1 ,036,927 507,500 26 O1HER 20,680 24,497 37,200 27 � --------- --------- --------- 28 SUBTUT�4L 2,719,198 1,356,827 626,700 29 � 30 D. QiAI�E IN WORtKII� CA IT�, 31 FU9- �NN ENTmRY IN EASE ( ECREASE) 0 -5,080 0 32 RESE�IE FUNQS INCR ASE (D CREASE) -2,745,635 11 ,524,708 -367,621 33 O1HER Q1RR T ASSE S INCR ASE (DECREASE) 52,075 -37,729 -488,765 34 OONST�JCTIO� PAYAB ES OE EASE (INCREASE) 124,551 609,739 207,356 35 0'iHER CURREI�T L IAB DECRE E ( INCREASE) -143,820 -808,384 387,392 36 i --------- --------- -------- 38 �B�T� -2,712,829 11 ,283,254 -261,638 39 E. EXPANS ION RESE�V E FU D 0 0 0 40 ---------- ---------- -------- 41 TOTAL DEMAND R'�ATED STS 3 5,589,330 20,277,789 6,384,458 ---------- ---------- -------- --------------------- ------ --------------------------------------------- --------- - - NOTES: ' (1) FORECAST B1�ISSED ON 7 MON S OF ACTII AL DATA AND 5 NDNIHS PROJ ECTED (2) ASSUNES 4.5 PERCE T INhl T ION WHERE NpRE SPECI FI C DATA NOT AV AIL�BLE � , . �� - -��3� � �; � , �'.�k,+, :��s>y. L :i�' 'x� �:y t ?r�;'v{�'r`K ,>i. A�":` 1� ."i.'z�r � . s . . � t ri,3' t�. �l i � '�� a - * y�. ' �' `:c� y�,,�. �� ^�s4"""'^v..�� `�� ' ` � 1 Y�� 3.�- j ��,x��}„s,,_ :�i~q,Y�� -'� � �',� i ��. !1� ..�. � .'s*; � +` 191� � ��et�ielrE�a�t�� , .�� ;.�,�� _: . x, . ,: T�", - "i�"�' ��irr�� ';,�' � ��_ `��1i � ��t3$' ��°'`;;' t�.kr't=�.�,�T A �at�ie 'te requeat�t `. ., _ ,� � 4.3�� Oeida�y Frfds�}`�a##�6e:�ec�� ' �� ' <�`�'' 's� ' l�Io�e Sai�►t Pl�il,y�;�,�t�ii ar�d place iise�-ic�t ; H the Git3r u�icfI c►�'t2i+e G�ty o�•�pat�:w}li�ve.�.�.��.` Fes�t�it, a�oPPortun�t�tae�p�f�e3rrl+awrs.wf��'�� -�O�� uest. �: �l�B. " '�� -i *. , . �� .i:v��7 Q�'�.-, � ... ., r.�. . �.� � _ � .., . . �- .... ��s,-y�':' .. . . aosv� I a I I