WHEREAS, Peru Utilities wishes to add an economic development aid to its rate structure for the purpose of providing incentives for existing industry to expand in Peru and Miami County and to attract new industry with favorable electric rates; and
WHEREAS, Peru Utilities has employed a reputable and experienced consultant to perform a rate study to determine the feasibility of providing such an incentive; and
WHEREAS, the rate study provides a means of providing additional electrical service to certain new or expanding industries while at the same time recovering incremental costs incurred by Peru Utilities; and
WHEREAS, a public hearing was advertised pursuant to I.C. § 5-3-1, and was held at p.m. on , 2011, in the City Council Chamber of Peru City Hall.
Therefore Be It Ordained By The Common Council of The City of Peru, Indiana, As Follows:
The Electric Rate Ordinance for Peru Utilities is hereby amended by adding the following language:
Rider ED For Rate Schedule PS
(Power Service) Applicability
This Rider is available as an economic development incentive to any existing or new customer of the Peru Municipal Electric Utility that:
- Meets the criteria for, and receives service under, Rate Schedule PS, unless superseded by a requirement of this Rider.
- Has a new or additional load of at least 300 kW and not more than 1,500 kW above the initial base load each month the Rider is applied. For any existing customer, the 300 kW would be in addition to the customer's current load.
- Enters into an agreement for economic development satisfactory to the City of Peru or Peru Utilities. Unless otherwise specified in the economic development agreement, this Rider shall apply for a term of no more than three (3) years.
Rider ED is not applicable if Peru Municipal Electric Utility must expend its own funds for capital improvements or additional expenses that would be necessary to provide service for the new load. If the customer provides its own funding for capital improvements or additional expenses such that Peru Municipal Electric Utility is not required to do so then Rider ED may be applicable if all other conditions of Rider ED are met.
Under Rider ED, the determination of the monthly charge for purposes of Rate Schedule PS is as follows:
- Customers qualifying for Rider ED will be billed monthly for their actual kilowatt hours used at the following rate (subject to the tracking factor described below):
a. $0.06072 per kWh.b. This amount represents the average rate per kilowatt hour incurred by Peru Municipal Electric Utility for its power purchased from IMPA from May, 2010 through April, 2011.
- The actual rate billed to customers will increase or decrease as appropriate on a monthly basis to reflect the difference in actual cost of purchased power from the Indiana Municipal Power Agency ("IMPA") and the rate as stated in 1. a., above.
Terms & Conditions
The customer must contact Peru Municipal Electric Utility to initiate the application of the Rider for the three-year term of the Rider. The customer may request an effective date of the Rider, which is no later than twelve (12) months after the date of acceptance to the Rider.