Boundary County Watchman

December 25, 2023 watchman
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CITY OF BONNERS FERRY

RESOLUTION NO. 2022-005

A RESOLUTION OF THE CITY OF BONNERS FERRY ADOPTING AND INCORPORATING THE ATTACHED SUMMARY OF THE COST-OF-SERVICE ANALYSIS (COSA) FOR THE CITY’S ELECTRIC DEPARTMENT AND SETTING FORTH A FIVE-YEAR SUGGESTED RATE STRUCTURE FOR DISTRIBUTING THE COST OF SERVICE AMONG ALL RATE CLASSES

WHEREAS, the City Council has determined that a COSA is a necessary and required element of ensuring proper equitability across all rate payers of the Electric service system, and

WHEREAS, the resulting analysis shows each customer class paying its share of the services provided and its share of the debt and depreciation, and

WHEREAS, the resulting adopted rates are suggested rates that should be considered each fiscal year for adoption to bring the COSA to full equitability.

Now THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF BONNERS FERRY, IDAHO THE FOLLOWING:

Section 1: FCS GROUP, a consulting firm that focuses on providing utilities with finance and rate development projects, was contracted in 2021 to evaluate the city’s electric department rates, by reviewing the revenue requirements, expenditures, and daily operations costs of operating of the electric generation, transmission, and distribution systems.

FCS GROUP delivered to the city, based on the best available data, recommend rate increases across all rate classes that are centered on the overall revenue needs of the electric department. The recommended rate increases take into consideration the cost 5-year capital plan/investments, depreciation of assets, daily operation and maintenance, power costs from BPA, debt service payment as well as many other factors. The resulting attachment, exhibit A, of this Resolution is the 5-year suggested rate increase that would bring the greatest equity to each class based on their actual cost of service of within the electric department.

Section 2: The full analysis used to develop these suggestions are held with FCS and no formal report has been provided to the city.

3. Exhibit A- Suggested Rate Increases over five-year period to bring full Cost-of-Service to each rate class.

*see table below

This Resolution is hereby ADOPTED and made EFFECTIVE by the City of Bonners Ferry this day of 2022.

CITY OF BONNERS FERRY, IDAHO

Christine McNair, Clerk

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