TVA Generates Power and sends it down Transmission Lines to Newport Utilities Distribution Substations

TVA TVA

Newport Utilities Substations Distributes the Power through Distribution Circuits which carries the Power to Transformers that step-down the volts for use by the Customer where usage is measured by the Meter.

New

port Utilities

Newport Utilities Newport Utilities

TVA Bills Newport Utilities Monthly

Newport Utilities bills our Customer’s Monthly

TVA Generates Power and sends it down Transmission Lines to Newport Utilities Distribution Substations

TVA TVA

Newport Utilities Substations Distributes the Power through Distribution Circuits which carries the Power to Transformers that step-down the volts for use by the Customer where usage is measured by the Meter.

New

port Utilities

Newport Utilities Newport Utilities

Newport Utilities is Responsible for all Infrastructure & Equipment from the

Substations to the Meter which includes Maintaining &

Purchasing New Equipment as Required

What Makes Up the Electric Charge on Your Bill?

The Customer Charge includes theOperational Costs necessary for NU tohave electric service available for you

whether or not power is used.

The Operational Costs are associated withmaintaining items such as a Pole, Transformer,Service Line, Meter, and Costs associated with

monthly billing processes.

Energy & Fuel Charge includes TVA’s Bill to NU and NU’s costs required to support the NU

Distribution System.

NU’s costs required to support the system include items such as substations, distribution

lines, buildings, trucks, people, equipment, tools, and technology systems .

In summary, the total Electric Charge includes :

How the Electric Charge on Your Bill is Calculated

$0.09074 X 1495 = $135.66March Bill Amt

Under Old Rate Structure

$ 9.40 $ 145.06

$0.08297 X 1495 = $124.04April Bill Amt Under New

Rate Structure

$ 14.99 $ 139.03

Newport Utilities Mission is not to Profit, But to:

Provide our Customer’s with quality electric, water, and wastewater services reliably, timely, and courteously at the lowest reasonable cost.

And the Values we hold ourselves Accountable for in order to Achieve our Mission include:

Honesty Teamwork Diversity Reliability Accountability Use of Technology Customer Satisfaction Continuous Improvement Efficient Use of Resources

TVA Implements New Rate Structure

April 2011

TVA Introduces New Rate Structure for Effective April 2011Why ?• To Better Match Revenue with Costs In summer and winter months when the demand for power increases

it costs more to generate power. In spring and fall, there is less demand andtherefore it costs less to generate power.

• New Rate Structure Involves Seasonal RatesPreviously, all kilowatt hours were charged the same base Energy Rate everyday, every month regardless of the time of year or how high the demand for energy was…

Effective April 2011, we now have Seasonal Rates:• Summer Period includes June, July, August, and September• Winter Period includes December, January, February, and March• Transition Period includes April, May, October, and November

• Some Customers may see an increase and some customers may see a decrease. Overall the change across All Customer Classes is designed to be Revenue Neutral to Newport Utilities.

• An evaluation of the costs associated with NU Customer Charge (flat charge billed to customers whether power is used or not) did result in an increase. The last increase in this charge was 2003.

• The Fuel portion of the rate will still change monthly. TVA provides the new fuel charge to NU each month.

Residential & Small Commercial/Non-Residential Rate ClassesComparison of Previous and New Rate Structure

Previous Rate Structure New Rate Structure effective April 1

Jan 2011 Feb 2011 Mar 2011 Transition Summer Winter

ResidentialCustomer Charge $ 9.40* $ 9.40* $ 9.40* $ 14.99 $ 14.99 $ 14.99

Energy & Fuel Charge per Kwh $ 0.09004 $ 0.08883 $ 0.09074 $ 0.08297 $ 0.08742** $ 0.08468**

Average Household Uses 1200 KWH per MonthBill Amt Comparisons

using 1200 kwh per Month $117.45 $115.99 $118.29 $114.55 $119.89 $116.61

Previous Rate Structure New Rate Structure effective April 1

Jan 2011 Feb 2011 Mar 2011 Transition Summer Winter

GSA1 – Small Commercial/ Non-Residential

Customer Charge $ 16.70 $ 16.70 $ 16.70 $ 16.70 $ 16.70 $ 16.70

Energy & Fuel Charge per Kwh $ 0.09817 $ 0.09699 $ 0.09886 $ 0.09579 $ 0.10024** $ 0.09750**

Average Small Commercial Customer Uses 998 KWH per MonthBill Amt Comparisons

using 998 kwh per Month $114.67 $113.50 $115.36 $112.30 $116.74 $114.01

Transition Months: Apr, May, Oct, Nov Summer Months: Jun, Jul, Aug, Sep Winter Months: Dec, Jan, Feb, Mar

**Note: The Summer and Winter Energy & Fuel Charge Amounts are estimated because Fuel Charges change monthly.

*Note: The previous rate structure for the Residential Rate Class included a minimum Customer Charge of $15. If your consumption exceeded the minimum bill then the Customer Charge applied to your bill was $ 9.40.

The new rate structure includes a Customer Charge of $14.99 which does not include a minimum. This is a flat charge that will be applied to all residential electric customers monthly beginning April 1, 2011 in order to recover the cost NU incurs whether power is consumed or not.

  1/1/2011 2/1/2011 3/1/2011 Transition Summer Winter  Previous Rate Structure New Rate Structure

 

GSA2 - Commercial - Large CommercialCust Charge $ 40.75 $ 40.75 $ 40.75 $ 77.00 $ 77.00 $ 77.00

 Energy & Fuel Charge per Kwh

1st 15,000 kwh $ 0.09987 $ 0.09869 $ 0.10056 $ 0.09677 $ 0.10122 $ 0.09848Energy & Fuel Charge per Kwh

Addtl kwh $ 0.05456 $ 0.05340 $ 0.05524 $ 0.05986 $ 0.06373 $ 0.06102

 Demand over 51kW-1000kW $ 13.82 $ 13.82 $ 13.82 $ 10.16 $ 10.98 $ 10.16

 

GSA3 & 4 - InudstrialCust Charge $ 77.00 $ 77.00 $ 77.00 $ 242.00 $ 242.00 $ 242.00

 Energy & Fuel Charge per Kwh

1st 15,000 kwh $0.06106 $0.05990 $0.06174 (New Rate Structure has Only 1 Block for Energy Charge)Energy & Fuel Charge per Kwh

Addtl kwh $0.05456 $0.05340 $0.05524

Energy & Fuel Charge per Kwh All kwh $ 0.05986 $ 0.06373 $ 0.06102

 Demand 0 - 1,000 kW $13.87 $13.87 $13.87 $9.92 $10.74 $9.92

Demand 1,001 - 5,000 kW $15.83 $15.83 $15.83 $11.68 $12.50 $11.68

       

Transition Months: Apr, May, Oct, Nov Summer Months: Jun, Jul, Aug, Sep Winter Months: Dec, Jan, Feb, Mar

**Note: The Summer and Winter Energy & Fuel Charge Amounts are estimated because Fuel Charges change monthly.

Commercial, Large Commercial & Industrial Rate ClassesComparison of Previous and New Rate Structure