2014 Attachment O Update – Transmission Stakeholder Meeting
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July 27, 2020 Summarize MISO Transmission Owner protocols under ER13-2379 Review the City of Springfield, IL – CWLP Transmission Revenue Requirement Formula Review the CWLP Attachment O Summary 2 Date/Deadline Activity June 1st Annual Update is published September 1st Owner holds annual meeting December 1st Deadline for Interested Parties to submit information requests January 10th Deadline for Owner to respond to information requests January 31st Deadline for Interested Parties to submit Informal Challenges February 28th Deadline for Owners to respond to Informal Challenges March 15th Deadline for Owners to submit Informational Filing to FERC March 31st Deadline for Interested Parties to file Formal Challenge at FERC 3 https://www.misoenergy.o rg/markets-and- operations/settlements/to -rate-data/city-water- light--power--- springfield-il- cwlp/#nt=%2Frateyear%3A 2020&t=10&p=0&s=tspos teddate&sd=desc City Water Light & Power – Springfield, IL (CWLP) Contact for Informational Request and Challenges [email protected] 217-789-2116 Ext. 2643 4 FERC Approved Rate Formulae Distinct templates for Owners using FERC Form 1 vs. Owners using EIA 412 The Timing of rate impact differs for Owners using Historical data vs. Owners approved for Forward-Looking rates and incentives. CWLP utilizes historical data only, as of the most recently audited fiscal year. Net Revenue Requirement = O&M + Depreciation + Taxes + Return on Rate Base–Attachment GG–Attachment MM-Revenue credits Return on Rate Base = Net Plant in Service + Total Working Capital + Land held for Future Use x Weighted Rate of Return 5 Page Line FY2018* FY2019** Delta Percent 3 8 TOTAL O&M $ 2,848,291 $ 2,946,122 $ 97,830 3.43% 3 12 TOTAL DEPRECIATION $ 1,398,672 $ 1,451,217 $ 52,545 3.76% 3 20 TOTAL TAXES $ 685,503 $ 689,265 $ 3,762 0.55% 3 28 RETURN ON RATE BASE $ 1,467,675 $ 1,393,225 $ (74,450) -5.07% 3 29 GROSS REVENUE REQUIREMENTSum(3.8 + 3.12 +3 .20 +3.28) $ 6,400,141 $ 6,479,829 $ 79,687 1.25% 3 30 LESS ATTACHMENT GG $ 924,188 $ 908,080 $ (16,108) -1.74% 3 31 LESS ATTACHMENT MM $ - $ - $ - 1 6 LESS REVENUE CREDITS $ 101,413 $ 91,217 $ (10,196) -10.05% 1 7 NET REVENUE REQUIREMENT Sum (3.29 - 3.30 - 3.31 -1.6) $ 5,374,540 $ 5,480,532 $ 105,991 1.97% *Restated due to ROE change, 10.02% per Opinion 569A *For the previous 12 months ending 02/28/2019 Allocators: TP = Percentage of Transmission Plant in ISO Rates TE = Percentage of Transmission Expenses in ISO Rates W/S = Percentage of Transmission - Related Wages/Salaries to Total Wages/Salaries GP = Percentage of Transmission - Related Gross Plant ROE Determination ROE per Opinion 569A issued on May 21, 2020 10.02% RTO Adder per ER15-1067, Effective June 16, 2015 0.50% 6 Attachment O-EIA Non-Levelized Generic Page 1 of 5 Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 02/28/19 Utilizing EIA Form 412 Data City Water, Light and Power - Springfield, IL Line Allocated No. Amount 1 GROSS REVENUE REQUIREMENT (page 3, line 31) $ 5,571,749 REVENUE CREDITS (Note T) Total Allocator 2 Account No. 454 (page 4, line 30) 0 TP 0.96247 0 3 Account No. 456.1 (page 4, line 33) 94,774 TP 0.96247 91,217 4 Revenues from Grandfathered Interzonal Transactions TP 0.96247 0 5 Revenues from service provided by the ISO at a discount 0 TP 0.96247 0 6 TOTAL REVENUE CREDITS (sum lines 2-5) 91,217 6a Adjustments to Net Revenue Requirement (Note CC) 0 6b Interest on Adjustments (Note DD) 0 6c Total Adjustment (line 6a + line 6b) 0 7 NET REVENUE REQUIREMENT (line 1 minus line 6 plus Line 6c) $ 5,480,532 DIVISOR 8 Average of 12 coincident system peaks for requirements (RQ) service (Note A) 304,000 9 Plus 12 CP of firm bundled sales over one year not in line 8. (Note B) 0 10 Plus 12 CP of Network Load not in line 8 (Note C) 0 11 Less 12 CP of firm P-T-P over one year (enter negative) (Note D) 0 12 Plus Contract Demand of firm P-T-P over one year 0 13 Less Contract Demand from Grandfathered Interzonal transactions over one year (enter negative) (Note S) 0 14 Less 12 CP or Contract Demands from service over one year provided by ISO at a discount (enter negative) 0 15 Divisor (sum lines 8-14) 304,000 16 Annual Cost ($/kW/Yr) (line 7 / line 15) 18.028 17 Network & P-to-P Rate ($/kW/Mo) (line 11 / 12) 1.502 Peak Rate Off-Peak Rate 18 Point-To-Point Rate ($/kW/Wk) (line 16 / 52; line 16 / 52) 0.347 $0.347 19 Point-To-Point Rate ($/kW/Day) (line 16 / 260; line 16 / 365) 0.069 Capped at weekly rate $0.049 20 Point-To-Point Rate ($/MWh) (line 16 / 4,160; line 16 / 8,760 4.334 Capped at weekly $2.058 times 1,000) and daily rates 21 FERC Annual Charge ($/MWh) (Note E) $0.000 Short Term $0.000 Short Term 22 $0.000 Long Term $0.000 Long Term 7 Attachment O-EIA Non-Levelized Generic Page 2 of 5 Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 02/28/19 Utilizing EIA Form 412 Data City Water, Light and Power - Springfield, IL (1) (2) (3) (4) (5) Line EIA 412 Transmission No. RATE BASE: Reference Company Total Allocator (Col 3 times Col 4) GROSS PLANT IN SERVICE (Note AA) 1 Production IV.6.e 1,072,739,486 NA 2 Transmission IV.7.e 83,124,254 TP 0.96247 80,004,662 3 Distribution IV.8.e 317,347,335 NA 4 General & Intangible IV.9.e & IV.1.e 68,867,348 W/S 0.07116 4,900,688 5 Common 0 CE 0.07116 0 6 TOTAL GROSS PLANT (sum lines 1-5) 1,542,078,423 GP= 5.506% 84,905,350 ACCUMULATED DEPRECIATION (Note AA) 7 Production 425,552,482 NA 8 Transmission 61,853,172 TP 0.96247 59,531,868 9 Distribution 203,929,940 NA 10 General & Intangible 46,882,595 W/S 0.07116 3,336,225 11 Common 0 CE 0.07116 0 12 TOTAL ACCUM. DEPRECIATION (sum lines 7-11) 738,218,189 62,868,093 NET PLANT IN SERVICE 13 Production (line 1- line 7) 647,187,004 14 Transmission (line 2- line 8) 21,271,082 20,472,794 15 Distribution (line 3 - line 9) 113,417,395 16 General & Intangible (line 4 - line 10) 21,984,753 1,564,463 17 Common (line 5 - line 11) 0 0 18 TOTAL NET PLANT (sum lines 13-17) 803,860,234 NP= 2.741% 22,037,257 ADJUSTMENTS TO RATE BASE (Note F) 19 Account No. 281 (enter negative) 0 zero 0 20 Account No. 282 (enter negative) 0 NP 0.02741 0 21 Account No. 283 (enter negative) 0 NP 0.02741 0 22 Account No. 190 0 NP 0.02741 0 23 Account No. 255 (enter negative) 0 NP 0.02741 0 24 TOTAL ADJUSTMENTS (sum lines 19 - 23) 0 0 25 LAND HELD FOR FUTURE USE IV.12.e (Note G) 0 TP 0.96247 0 WORKING CAPITAL (Note H) 26 CWC 1,885,606 368,265 27 Materials & Supplies (Note G) 422,942 TE 0.59952 253,561 28 Prepayments II.20.b 1,959,763 GP 0.05506 107,903 29 TOTAL WORKING CAPITAL (sum lines 26 - 28) 4,268,311 729,729 30 RATE BASE (sum lines 18, 24, 25, and 29) 808,128,545 22,766,986 8 Attachment O-EIA Non-Levelized Generic Page 3 of 5 Formula Rate - Non-Levelized Rate Formula Template For the 12 months ended 02/28/19 Utilizing EIA Form 412 Data City Water, Light and Power - Springfield, IL (1) (2) (3) (4) (5) Line EIA 412 Transmission No. Reference Company Total Allocator (Col 3 times Col 4) O&M (Note BB) 1 Transmission VII.8.d 7,133,133 TE 0.59952 4,276,441 1a Less LSE Expenses included in Transmission O&M Accounts (Note V) 0 1.00000 0 2 Less Account 565 3,588,814 TE 0.59952 2,151,558 3 A&G VII.13.d 11,696,002 W/S 0.07116 832,302 4 Less FERC Annual Fees 150,260 W/S 0.07116 10,693 5 Less EPRI & Reg. Comm. Exp. & Non-safety Ad. (Note I) 5,216 W/S 0.07116 371 5a Plus Transmission Related Reg. Comm. Exp. (Note I) 0 TE 0.59952 0 6 Common 0 CE 0.07116 0 7 Transmission Lease Payments 0 NA 1.00000 0 8 TOTAL O&M (sum lines 1, 3, 5a, 6, 7 less 1a, 2, 4, 5) 15,084,846 2,946,122 DEPRECIATION AND AMORTIZATION EXPENSE (Note AA) 9 Transmission 1,305,898 TP 0.96247 1,256,889 10 General & Intangible 2,730,818 W/S 0.07116 194,328 11 Common 0 CE 0.07116 0 12 TOTAL DEPRECIATION (sum lines 9 - 11) 4,036,716 1,451,217 9 TAXES OTHER THAN INCOME TAXES (Note J) LABOR RELATED 13 Payroll 0 W/S 0.07116 0 14 Highway and vehicle 0 W/S 0.07116 0 15 PLANT RELATED 16 Property 0 GP 0.05506 0 17 Gross Receipts 0 NA zero 0 18 Other 0 GP 0.05506 0 19 Payments in lieu of taxes 12,518,651 GP 0.05506 689,265 20 TOTAL OTHER TAXES (sum lines 13 - 19) 12,518,651 689,265 INCOME TAXES (Note K) NA 21 T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p)} = 0.00% 22 CIT=(T/1-T) * (1-(WCLTD/R)) = 0.00% where WCLTD=(page 4, line 22) and R= (page 4, line 24) and FIT, SIT & p are as given in footnote K.