09-1310CouncilPile # l/
RESOLUTION
SAINT PAUL, MINNESOTA
Presented By:
Referred To:
�
2
3
4
5
6
7
8
9
70
t7
t2
t3
14
15
16
t7
18
19
CommiKee Date:
District Energy St. Paul, Inc. Notice of Rate Increase October 1, 2009 antl Process for Review
WHEREAS, on September 2t, 2009, pursuant [o Section 6�e) of the District Heating franchise (C'rty Ordinance CF 07-1108
adopted December 72, 2007, cotlifed as Saint Paul Legislative Code Appendis F�, District Energy SL Paul, Ina iletl a
rste change notice as of October 1, 2009, with the City (see Attachment A�:
Single Rate:
7wo-part Rate:
Demantl:
Energy:
$O.O6t45 per kilowatt-hour
$4.90 per kilowatt per month
$26.86 per megawaH-hour, antl
WHEREAS, on September 27, 2009, Oistrict Cooling St. Paul, Inc. filed a notice of withdrswal of a rate change request
previously filed on August �9, 2009 (see Attachment B);
�
NOW THEREFORE BE IT RESOLVEO, that the Mayor antl the City Council acknowled9e the receipt of this notice and tlirect
the Office of Financial Services, in conjunction with City Council Research, to review and analyze the 2te change
requesq and report back to the CiTy Council on their findings within 180 tlays.
Atloption Certified by Council
BY: .l
Approved 6y
By:
Green Sheet # 3088056
Requestetl by Department of:
OFFICE OF FINANCIAL SERVICES
Approval Recommentletl by Director of Fi ancial Service, :
By: �
Form ApproveA hv Citv Cknrnev�
By:
Approvetl by
imt
Atlopted by Council: Date ��/�S /O�
� Green
Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
n�,r�in
�
� oate��rt,a�d. Green Sheet NO: 3088056
FS - Financial Services 12 NOV 2009
Contact Person & Phone- Department Sent To Person Initial/Date
0 inancial5ervices I
John McCarthy 0
266$554 ] inancial Services �. Denarim� ent Director -�, � �
Assign 2 i Attorne � CityAttomey i
Must Be on Council Agentla by (Date): Number 3 a or's Office Mayor/ASSistant I
Routing 4 aoo� 0
I Doc. Type: RESOLUTION Order 5 i Clerk Ci Clerk
E-DOCUment Required: Y
Document ContaM:
Contact Phone:
ToWI # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
The Mayor and City Council aclmowledge the receipt of the District Energy rate change notice and direct the Office of Financial
Services and City Council Reseazch to analyze the rate changes and report back to the City Council within 180 days.
Recommentlations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions:
Planninq Commission 1. Has this person/frtn ever worked under a confract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firm ever been a city employee?
Yes No
3. Does this personlfirm possess a skill not normally possessetl by any
current aly employee?
Yes No
Expiain all yes answers on separate sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
District Heating requested a rate change for FY2010. According to City ordinance, upon Council notification, City staff shall review
the request for a rate change to determine that the new rates aze just, reasonable, and non-discriminatory.
AdvanWges If Approved: —����
�..
��„�'�
� fi LU��
DisadvanWges If Approved:
���� �����
Disadvantages If Not Approvetl:
Total Amount of
Transaction: Cost/Revenue Budgetetl:
Funding Source: Activity Number:
Financial Information:
(Explain)
November 12, 2009 1021 AM Page 1
� Attachment A 0�, �? � Q
DISTRICT ENERGY
ST. PAUL'"
Distnct Eneroy St. Paul, Inc
Hans O. Nyman Ener9y Wnter
76 Kello99 Boulevard West
St Paul, MN 5 51 0 2-1611
Tal 65l 2978955
Fax 651227.0353
www.dis[naenergy com
September 21, 2009
Shari Moore
City Clerk
310 City Hall
15 Kellogg Boulevard West
Saint Paul, MN 55102
Re: District Heating Rates
Dear Ms. Moore:
Pursuant to the hot water district hea6ng franchise and previous notice filed August 19, 2009,
District Energy St. Paul, Inc., hereby files its amended Schedule A. The rates therein will be charged on
all bills for hot water service beginning with the billing month of October 2009 and will remain in effect
until superseded.
This is a routine annual rate adjusunent as envisioned by the franchise and the Hot Water Delivery
Agreement.
Please contact me at 651.297.8955 if there aze any questions regarding this matter.
Sincerely,
DISTRICT ENERGY ST. PAUL INC.
��� ,��! '//
°'� -f
Ancirew Kasid
Senior Vice President, Finance
Ever-Green Energy, LLC
Service Provider to District Energy St. Paul, Inc.
Attachments: Schedule A (Amended)
Affidavit
cc: Margaret Keily, Lori Lee, John Choi,
William Mahium, Andrew Kasid, Joyce Anderson
Attachment A
SCHEDULE A (AMENDED)
to
HOT WATER FRANCHISE
granted to
District FIeating Development Co. d.b.a.
DISTRICT ENERGY ST. PAUL, INC.
by the
CITY OF ST. PAUL
(Ordinance No. 16947, adopted July 20,1982, as amended)
Dy-l�lb
RATES: The following rates shall be effective begimung witl� the billing month of October
2009 and shail remain in effect un61 superseded:
Single rate:
Two-part rate:
Demand
Energy
$0.06145 per kilowatt-hour
$4.90 per kilowatt per month
$26.86 per megawatt-hour
SNOWMELT DEMAND RATE: The Snowmelt Demand Rate is 50 percent of the Hot Water
Demand Rate per kilowatt per month.
PROMPT PAYMENT PROVISION: A charge of 5 percent will be added to the net bill
computed at the rate shown above, which chazge shall constitute a disconn* from �he �oss hi?!
for payment within the discount period, all as more specifically provided in the Hot Water
Delivery Agreement.
FUEL ADJiJSTMENT: As provided in the Hot Water Delivery Agreement, the energy charge
may be appropriately adjusted (i.e., spread over the remaining months in the fiscal year) from
time to time during the fiscal year to cover cost increases (or decreases) occurring subsequent to
the establishment of projected energy-related costs for such period regazding energy purchased by
District Energy St. Paul, Inc., to the extent such costs aze in excess of (or below) those costs
projected by District Energy St. Paui, Inc. in establishing the energy charge far such period.
SiTRCHARGE: A City fee surcharge of 8.7 percent wili be included in the gross and net
monthly bills computed under this rate schedule except as otherwise provided by law.
SERVICE CHARGES: The attached service chazges shall be effective beginning with the
billing month of October 2009 and shall remain in effect until superseded.
Attachment A G� � � 3 � �
Schedule A
Attachment 1
DESTRICT ENERGY ST. PAUL, INC.
Service Charges Effective October 2009
Pursuant to Section 8.5 of the Hot Water Delivery Agreement as amended, the following rates
are established for performance of specific services more properly chazged to an individual
Customer than to all Customers as a whole. Service chazges aze payable within 30 days of billing
and aze in addition to Demand Charges and Energy Chazges.
Restoration of service after shutoff by Bistrict Energy:
Customer demand under 100 kW: $50.00
Customer demand 100 kW or over: $200.00
2. Damage to Bistrict Energy system equipment:
Actual cost of repair or replacement as determined by District Energy plus service charge
of $50.00.
Unauthorized drainage of District Energy system water:
The sum of the following:
(a) Estimated quantity of water lost times combined water and sewage rate paid by
District Energy during period of ctrainage;
(b) Estimated heat value of water-lost times applicable Energy Rate; and
(c) Service charge of $85.00/hour.
Note: Drainage of system water creates an unsafe condition and is cause for suspension
of service until corrected.
4. Service caIls made at Customer's request by District Energy personnel for problems
found to be in Cusfomer's and not District Energy's equipment:
Between 8:00 a.m. and 330 p.m. on Monday through Friday (excluding holidays
observed by District Energy): $85.00/hour
All other times: $125.00/hour
Attachment A vq,j3 �U
I
DISTRICT ENERGY ST. PAUL, INC.
AFFIDAVIT
District Energy St. Paul Inc. states the foliowing facts with regazd to the process followed in
communicating its FY 2010 heating rates:
I. District Energy gave notice of its intent to file a new or amended Schedule A in a letter dated
August 19, 2009, filed with the City Clerk on that date.
2. District Energy sent or delivered a notice of its rate filing and the related customer meeting to
all signed hot water customers on August 21, 2009. The notice included the new rates sought by
District Energy; the date, time, and place of the customer meeting; and the Notice of Customer
Rights. A copy of the notice was provided to the President of the Greater St. Paul Building
Owners and Managers Association (BOMA). The same inforxnafion was sent to all Mount Airy
residents on September 10, 2009, with notice of a special meeting as described below.
3. District Energy held the required customer meeting on September 14, 2009, at 3:00 p.m. in
District Energy's conference room, Hans O. Nyman Energg Center, '76 West Kellogg Boulevard,
St. Paul. Seven people representing district heating/cooling customers attended, along with seven
other individuals. One member of the City's rate review staff attended. A second mee6ng will
be held with interested residents of the Mount Airy homes on September 24, 2009, at 10:00 a.m.
at the Mount Airy Community Center.
Copies of District Energy's filing nodce with the City, the proposed new Schedule A, and the hot
water franchise (Ordinance No. 16947, as amended) were made available to meeting attendees.
At each mee6ng, the new rates were explained, customers were advised that the City Council
must approve the new rates befare they become finally effective, and customers were allowed a
reasonable opportunity to comment on the proposed rates both formally and informally.
� r. ,
Andrew Kasid
Senior Vice President, Finance
Ever-Green Energy, LI,C
Service Provider to
District Energy St. Paul, Inc.
�ia�'jo�
Date
`�'1
� Attachment B �_ �� ��
DISTRICT COOLING
ST. PAUL'"
Distnc[ Coolmg St ?aul, Inc.
Hans O Nyman Energy Center
76 Kello99 gouievard West
St. Paul, MN 55702461t
Tel: 651297.8955
Fax: 651 221.0353
www distrlctenergy com
September 21, 2d09
Shari Moore
City Clerk
310 City Hall
15 Kellogg Boulevard West
Saint Paul, MI3 55102
Re: District Cooling Rates
Deaz Ms. Moore:
District Cooling St. Paul, Inc., hereby files notice of the withdrawal of the amended Schedule A
previously filed on August 19, 2009. The existing Schedule A is attached. This schedule was
approved by the City Council on Januazy 7, 2009.
Please contact me at 651.297.8955 if there are any questions regarding this matter.
Sincerely,
DISTRICT COOLING ST. PAUL INC.
���
Andrew Kasid
Senior Vice President, Finance
Ever-Green Energy, LLC
Service Provider to District Cooling St. Paul, Inc.
Attachments: Schedule A (Amended), Affidavit
cc: Mazgaret Kelly, Lori I.ee, John Choi,
William Mahlum, Andrew Kasid, Joyce Anderson
Attachment B �, ��j �Q
SCHEDULE A (AMENDED)
to
DISTRICT COOLING FRANCffiSE
granted to
DISTRICT COOLING ST. PAUL, INC. f.k.a.
District �',�ergy Services, Inc.
by the
CITY OF ST. PAUL
(Ordinance No. 17816, adopted March 28,1991)
RATES: The following rates shall be effective beginning with the billing month of October
2008 and sha11 remain in effect until superseded:
Demand: $25.66 per ton per month
Energy: $0.079 perton-hour
PROMPT PAI'MENT PROVISION: A chazge of 5 percent will be added to the net bill
computed at the rates shown above, which charge shall constitute a discount from the gross bill
for payment within the discount period, all as more specificaily provided in the District Cooling
Service Agreement.
FUEL ADJiJSTMENT: As provided in the District Cooling Service Agreement, the energy
chazge may be appropriately adjusted (i.e., spread over the remaining months in tlie fiscal year)
from time to time during the fiscal yeaz to cover cost increases (or decreases) occumng
subsequent to the establishment of projected energy-related costs for such period regazding
energy purchased by District Cooling St. Paul, Inc., to the extent such costs aze in excess of (or
below) those costs projected by District Cooling St. Paul, Inc. in establishing the energy charge
for such period.
SURCHARGE: A City franchise fee surchazge of 3.5 percent will be added to the gross and net
monthly bills computed under this rate schedule except as otherwise provided by law.
SERVICE CHARGES: The attached service charges shall be effective begimvng with the
billing month of October 2008 and shall remain in effect until superseded.
Attachment B Schedule A
Attachment I
�-)31D
DISTRTCT COOLING ST. PAUL, INC.
Service Charges Effective October 2008
Pursuant to Sections 8.3 and 8.4 of the District Cooling Service Agreement as amended, the following
rates are established for performance of specific services more properly charged to an individual
Customer than to all Customers as a whole. Service chazges are payable within 30 days of billing and are
in addition to Demand Chazges and Energy Chazges.
Restoration of service after shutoff by District Cooling:
Flat chazge: $200.00
2. Damage to district cooling system equipment:
Actual cost of repair or replacement as deternuned by District Cooling plus service charge of
$50.00.
Unauthorized drainage of district cooling system water:
The sum of the following:
{a) Estimated quantity of water lost times combined water and sewage rate and prorated water
treatment cost paid by District Cooling during period of drainage;
(b) Estimated therma] energy value of water lost times applicable Energy Rate; and
(c) Service chazge of $85.00/hour.
Note: Drainage of system water may cause harm to othex Customers and is cause for suspension
of service until corrected.
4. Service calls made at Customer's request by District Cooling personnel for probfems found
to be in Customer's and not District Cooting's eqnipment:
Between 8:00 a.m. and 3:30 p.m. on Monday through Friday (excluding holidays observed by
District Cooling): $85.001hour
All other times: $125.00/hour
5. Charge for chilled water flow exceeding 110 gallons per ton-honr during June, July, August
or September billing period: $0.60 per thousand gailons above 103 gallons per ton-hour.
6. Credit for chilled water flow be[ow 75 gallons per fon-hour during 3une, July, August or
September billing period: ($0.60) per thousand gallons below 103 gallons per ton-hour.
Attachment B b/�
/
DISTRICT COOLING ST. PAUL, INC.
,'�11 : / _
Disirict Cooling St. Paui Inc. states the following facts with regard to the process followed in
communicating its FY 2010 cooling rates:
1. District Cooling gave notice of its intent to file a new or amended Schedule A in a letter dated
August 19, 2009, filed with the City Clerk on that date.
2. District Cooling sent or delivered a notice of its rate filing and the related customer meeting to
all signed district cooling customers on September 2, 2009. The notice included the new rates
sought by District Cooling; the date, time, and place of the customer meeting; and the Notice of
Customer Rights. A copy of the notice was provided to the President of the Greater St. Paul
Building Owners and Managers Association (BOMA).
3. District Cooling held the required customer meeting on September 14, 2009, at 3:00 p.m. in
District Cooling's conference room, Hans O. Nyxnan Energy Center, 76 West Kellogg Boulevazd,
St. Paul. Seven people represen6ng district cooling/heating customers attended, along with
seven other individuals. One member of the City's rate review staff attended.
Copies of District Cooling's filing notice with the City, the proposed new Schedule A, and the
chilled water franchise (Ordinance No. 17816) were made available to meeting attendees. The
new rates were explained, customers were advised that the City Council m��sY ap�rove tihe new
rates before they become fmally effective, and customers were allowed a reasonable opportunity
to comment on the proposed rates both formally and informally.
�., � �
Andrew Kasid
Senior Vice President, Finance
Ever-Green Energy, LLC
Service Provider to
District Cooling St. Paul, Inc.
9/ail��
Date