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Utilities

Light & Power#

The pie chart below depicts the allocation of Utilities' Light & Power funds for the current budget.
The chart excludes depreciation and transfers.

*6 percent of operating revenues

Definition of Terms#

Capitalhighlight_off

Funds to acquire or upgrade the electric distribution system's physical assets.

Customer Service & Administrationhighlight_off

Covers costs for customer service, billing, community engagement, regulatory government affairs, safety, security and wellness, and costs associated with the executive director's office. The percentage of contribution to CS&A by each utility service area differs depending on ratio of revenues to the overall Utilities budget.

Debt Servicehighlight_off

Covers payments for revenue bonds, which pay for capital improvements.

Operationshighlight_off

Costs to operate and maintain the electric distribution system throughout the City's service territory.

Otherhighlight_off

This category includes transfers to the City's General Fund for administrative services such as human resources, legal, finance and the City Manager's Office. It also includes costs associated with insurance, personnel, investments, bad debt, contingencies, Poudre Fire Authority services, and other miscellaneous administrative costs.

Payment In Lieu of Taxeshighlight_off

A 6 percent payment, based on electric revenue, paid to the City's general fund. This payment compensates for what the City would be paid in taxes and franchise fees if the utilities were privately owned.

Purchase Power (Energy & Demand)highlight_off

The cost of purchasing energy (in kWh) and demand (in kW) from Platte River Power Authority, Utilities' wholesale electric provider.

Renewables/Energy Efficiencyhighlight_off

Includes the cost and administration of all energy efficiency programs under the Energy Policy, renewable energy managed by Platte River Power Authority, the Solar Purchase Power Program and the Community Solar Program.

Streetlightshighlight_off

As defined by City Ordinance, a portion of electric rates (approximately 1.2 percent) funds the operation and maintenance of the streetlight system.

Frequently Asked Questionshighlight_off

What does Payment is lieu of taxes (PILOTs) mean?
PILOTs are a 6 percent payment, based on electric, water and wastewater revenue paid by Utilities to the City’s general fund. This payment compensates for earnings the City would receive in taxes and franchise fees if Utilities were privately owned. There are no PILOTs for stormwater, since there are no private businesses operating a stormwater utility.

What is Customer Service and Administration (CS & A), and why is it a different percent for each fund?
CS & A covers costs for customer service, billing, community engagement, regulatory government affairs, safety, security and wellness, and costs associated with the executive director’s office. The percentage of contribution by each utility service area varies depending on the ratio of revenues to the overall Utilities budget.

Once debt service is paid, will rates go down?
Debt service is used to finance capital improvements. As bonds are paid, Utilities may issue additional debt to cover the cost of other capital improvements outlined in a City-wide strategic capital improvement plan. Debt service may differ in the service areas due to varying needs for capital improvements.