duke energy and north carolina league of...
TRANSCRIPT
Key Points
Lighting rates proposed increase is less than the retail average (10.6% v. 13.6%)
Proposed to update and lower HID transition fees
Proposed to add a new LED to LED transition fee
Schedule PL Proactive Mercury Vapor Program targets completion by end of 2023
Schedule NL (Non-Standard Pilot) will not be available to new applicants
Schedule FL (Floodlight) is merged into other schedules
Traffic Signal Service is requested to increase by 29.0%
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Proposed Lighting Rate Changes
Proposed Revenue Increase for Outdoor Lighting is 10.6%
8.6% decrease to GL
12.8% increase to OL
6.3% increase to PL
Fixture rates under each schedule are increased by an equal percentage
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Proposed Transition Fees
DEC Transition Fees
Transition fees to replace High Pressure Sodium (“HPS”) or Metal Halide (“MH”) to Light Emitting
Diode (“LED”) are lowered.
Impact on Net Book Value from early replacement continues to be a concern.
Proposed Transition Fees impacting governmental customers:
Standard HPS/MH to LED: from $54 to $40 (GL and PL) / from $78 to $57 (OL)
Floodlight HPS/MH to LED: from $142 to $112
Decorative: Retained Loss Due to Early Retirement Calculation due to product variability
Added new LED to LED Transition Fee of $40
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Proposed Mercury Vapor Modernization Plan
Schedule PL - Proactive replacement beginning in 2020 and completing by the end of 2023.
Schedule OL - Proactive replacement is continuing with completion by 2019.
MV lamp lumen output is significantly reduced after six years; but, the lamp failure rate occurs
after approximately 22 years.
MV fixtures should be considered to be “failed” as their light output fades, even though they are
still operating but this isn’t happening.
Company will alert the municipality of the replacement schedule to aid in budgeting.
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Other Changes
North Carolina League of Municipalities Future Engagement
A collaborative exchange of ideas regarding lighting with the League is valued
How can this discussion best be facilitated?
Meet with the League upon request
Meet as new issues of interest arise
Attend the League’s annual meeting
DEC Tariff Administrative Changes
On Schedule OL, the contract term is increased from one year to three years for standard
products
On Schedule FL, the floodlight products are moved to Schedules GL and OL aiding customers in
identifying their fixture options.
On Schedule NL, the Nonstandard Lighting Service Pilot will not be available to new
installations.
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Duke Energy Progress Rate Case – Outdoor Lighting Changes
Requested lighting rate increase is less than the retail average (6.1% vs. 14.9%)
No significant structural changes are being requested
The contributory option for additional/extra facilities related to nonstandard options is removed due to
lack of interest
LED and pole/post rates are increased more than HID fixtures due to lower incremental returns
Common fixture rates requested for area and street lighting schedules
Continues common rates for LED fixtures
Avoids even higher street light rates
Street lighting has a higher increase than area lighting (9.6% vs 4.7%)
Street Lighting continues to have lower pole rates
As of August 2017, 75% of NC street lights use LED technology (was 69% in December 2016)
Traffic Signal Service is requested to increase by 16.3%
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Lunch Presentation
Local Regulation of Small Cell Wireless Systems by Erin Wynia of NC League of Municipalities
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Consumer Focused: Outdoor Lighting & Communications Infrastructure
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Consumers are driving the need for massive communication density
The assets required are numerous compared to macro sites
The assets follow population and require an intersection of:
Open air, electric power, and fiber backhaul
Utilizing streetlight poles for such assets can help
communications infrastructure achieve scale, speed, and cost
Smart infrastructure requires smart deployment
It requires greater collaboration to achieve mutual benefit
Duke Energy understands that municipalities have critical priorities, like aesthetics, for economic
development
Outdoor lighting assets can and will be used for multiple other interests beyond communications :
security, sensors, cameras, traffic management, etc.
Both networks must be safe and reliable
There’s a Better Way: Lighting Integrated Multi Use Assets
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Poles designed for multi use (lights, small cell, electric, sensors, etc.) serve the needs of all
stakeholders. Integrated poles can improve the overall reliability, cost, and aesthetics, benefitting the
community.
Three poles at one corner - who wins? Integrated asset to serve all
More is Coming Soon: This is Not Just About Communications
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As smart technologies become available, cities and towns will look to
these to ensure their communities are vibrant and appealing for
economic development. The platform for these capabilities is the same as for communications infrastructure.
Wireless Attachments Summary and Next Steps
Duke Energy strongly supports expanded broadband and wireless deployment
The NCLM and Duke have a rare opportunity to increase reliability, reduce cost (multi-use pole vs. multiple poles), and benefit their communities through more integrated planning of outdoor lighting and communications infrastructure
Smart infrastructure requires integrated platforms that move beyond the traditional discussion of pole attachments
Utility lighting assets are non-distribution, unique assets, that will serve multiple community needs beyond communications, need to be aesthetically sensitive, and have economic benefit to multiple parties
Such integration requires policies that promote innovation and collaboration
Duke has created a framework to accommodate communication colocations on its Outdoor Lighting assets and wants the NCLM’s input so we can achieve a common vision of aesthetically pleasing, integrated lighting assets serving our communities
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Upcoming New Products: LED Lighting Controls
Features under consideration:
24/7 Monitoring of LED lights
Simple and quick process to request
change to LED lighting system schedule
Potential upgrade options
Portal to view status of LED luminaires
Periodic system performance reporting
Dimming
Testing & performance validation
have been extended
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