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Home My WebLink About2006-07-17 Mid Am. Power Point Jevry .sthlTL ~ P/'lfLJe'J f" i Irf 1,17 City Council of Iowa City July 17, 2006 Work Session ... MidAm.erican ~ ENERGY OBSESSIVELY, RELENTLESSLY AT YOUR SERVICEe MidAmerican ~ ENERGY oesESSlVEL Yo REL.ENTlESSl. Y AT YOUR SERVfCE. Value of Franchise Agreements Defines the business relationship between the City of Iowa City and MidAmerican Energy Company City MidAmerican . Indemnification . Permitted use of public right . Long-term capital project of way planning to reduce costs . Provides the assurance . ~inimize 'public needed to make long-term Inconvenience investments in staffing, . No-cost relocation of utilities engineering, construction, in public right of ways for etc. Provides assurance needed public improvements . to make discretionary . Binds successors to follow terms of the agreement spending decisions which support the community's objectives MidAmerican ~ ENERGY OBSESSIVELY, RELENTlESSLY AT YOUR SERVJCL Specific Negotiable Items . Term length of franchise . Pole attachments . Franchise fees, should the city wish to pursue . Other terms and conditions relating to MidAmerican's operations within the city, based on mutual agreement - Example: Any third party wishing to attach to MidAmerican utility poles must first obtain city approval Des Moines Sample Bill MidAmerican ~ ~ .....,. '-_',,,"cBffi1!"--'___ SeMce Address: JOHN DOE Dale: 06/16106 999 MAIN Sf .... Customer Service: 1-888-427.5632 . DES MOINES IA 50312 PO Bo~ 8020 Davenport IA 52808-8020 www.midamericanenergy.com ACCOUNT SUMMARY LAST 8LL AMOUNT PAYMENTS RECEIVED AMOUNT DUE I $313.00 L._ $313.00 L $313.00 __J If p.,.......t.. ~ an. JulJ 10, 200&, the amount due ~ll be $317.61, which Includes . tate pllJment charge of $.4.17. BUDGET BIWNG PLAN Your budget bill amount was re\liewed and Budget B~I Amount $311.00 changed to S 249 effectiye with}Ournelct. CulftntMonth bill. Your Budget BiUing Plan wilt be re-w;ewed perlodicalt,y and }Ou wiu be Total CUI'T'eflt Costs S176.55 notified of the re5lJllslhrough a bill Difference Applied To Budget Balance $132.45CR message. Junets}Ouryear-endreview Budget Plan Somma" month. Current Month Balanc:e S9-48.20CR During this budget plan year}Ot.l have Prevk>us Month Balan(:e S815.75CR been billed $948.20 more than}Our Budget P~enls Billed To Dale $-4,308.00 energy costs. Energy Cosls To Date $3,359.60 ELECTRIC CHARGES Rate: RSS Electric Heal Summer OSll51U6to06l1<lJt)6 30biJlingdays Meter No:S21337955 Estimated Reading 06114106 29" BiISic Ser\ke Charge 8.50 Company Readina 05115106 1329 Energy Charge 1,670 x 0.08507 142.07 .. Total kWh 1670 t s.oo...Elel:lrtcF...:hI!leFee 753 Iota! J158.10 GAS CHARGES Rate: sVF Residential 05l15106to06l14J06 30bilingdays Meter No;R91400132 Estimated Reading 06/14106 40539 BiISic Ser.;ce Charge 10.00 Estimaled Readina 05115106 40528 DeWery Charge 11 x 0.23734 2.61 TOI.alcd 11 Pipelif1e Transport Charge 11 x 0.06309 0.69 11 cdx 0.968 pre$SUrex 1.007 BTU factor = 11 therms Gas Supply Charge 11 x 0.56148 6.18 .. . s.oo"'G8s Franchise Fee 0.97 MidAmerican ~ .....y ~_..~-,--- Theamounl due_Iter July 10, 2006 Is $317.67 I want to contrilute to Renewable AdVlntage D D D - riI .... . S2.5O " '" "".. _0 One Time(] Am.... JOHN DOE MldArnertcan Energy Company 999 MAIN ST .. PO Box 1020 I DES MOINES IA 50312 ~~portlA 52101-1020 MidAmerican ~ ENERGY OBSESSIVELY, RELENTLESSLY AT YOUR SEIWfCL Items Set by Iowa Utilities Board per State Statute . Rates . Service territory . Customer classes MidAmerican ~ ENIRGY OBSESSIVELY, RELENTlESSLY AT YOUR ~ Iowa City Franchise Timeline . 2001 - City and MidAmerican began negotiating two franchise renewal agreements . 2001 - Previous 15-year electric and natural gas franchises expired . December 2003 - Council suspends franchise negotiations pending submission of citizens' petition to form a municipal electric utility . January 2004 - Council sets referenda for November 8, 2005 . November 8, 2005 - Voters defeat both referenda questions by a 2-to-1 margin (67 percent to 33 percent) . July 17, 2006 - City Council holds work session MidAmerican ~ ENERGY OBSESSIVELY, RELENTLESSLY AT YOUR SEIWfCE. What's at Risk . No-cost pole attachments . Day-to-day business decisions regarding discretionary contributions - MEC support for community projects - MEC on-going commitment to economic development - Joint MEC and city actions . Current construction approach to support city's long- term growth needs replaced by just-in-time construction methodology . Price and service stability for business and industrial customers MidAmerican ~ ENERGY OBSESSIVELY, RELENTlESSLY AT YOUR SERrfCL The Business Decision . Since 2001, MidAmerican Energy has voluntarily acted as though both franchise agreements were in full force and effect . In fairness to the other 400 communities MidAmerican Energy serves where franchises are in effect, MidAmerican needs to assess the allocation of available discretionary resources, absent franchise agreements with Iowa City MidAmerican ~ ENERGY OBSESSIVELY, RELENTLESSLY AT YOUR URVICL Request . Resume the electric and gas franchise negotiations halted in 2003 . Develop mutually acceptable draft agreements . Have staff report back to council with a draft agreement for consideration