Economic Development

Application:
This rate is applicable to existing manufacturing customers whose demand for power meets or exceeds 3,000 kilowatts for any two months within the previous twelve months and who contract for not less than an additional 1,000 kilowatts. This rate also is applicable to new manufacturing customers who contract for not less than 3,000 kilowatts of electric utility service. This rate is not applicable to customers who are not full requirements customers of the Electric Utility or for temporary service for construction power.

Character of Service:
The Character of Service provided under this rate shall be alternating current, 60 cycles, three phase, 12,500 (nominal) volts or higher, in accordance with the Utilities Criteria Manual prescribed by the City as may be amended from time to time.

Fuel Adjustment Clause (FAC) - plus an adjustment for variable costs, calculated according to the Fuel Adjustment Clause Tariff, multiplied by all kWh.

Minimum Bill:
A new customer shall be assessed a monthly Minimum Bill under this rate equal to the product of the Demand Rate and the Billing Demand, but in no event shall the monthly Minimum Bill for a new customer be less than the product of the Demand Rate under this rate and 3,000 kilowatts.

An existing customer shall be assessed a monthly Minimum Bill under this rate equal to the product of the Demand Rate and the Billing Demand, but in no event shall the monthly Minimum Bill for a new customer be less than the product of the Demand Rate under this rate and 1,000 kilowatts.

Billing Demand
The Billing Demand shall be the kilowatt demand during the fifteen-minute interval of greatest use during the current billing month as indicated or recorded by metering equipment installed by the City of Austin. When power factor during the interval of greatest use is less than 85%, Billing Demand shall be determined by multiplying the indicated demand by 85% and dividing by the lower peak power factor.

Conditions Of Service
A. Service under this rate is available only for the additional billing load to an existing manufacturing customer or for the total billing load of a new manufacturing customer. The additional billing load for an existing customer must be accompanied by the creation of an additional 300 Full-Time Equivalent Positions (FTEs) over and above the customer's FTEs as of the end of the customer's Base Period. The total billing load for a new customer must be accompanied by the creation of an additional 1,000 FTEs over and above the customer's FTEs as of the end of the customer's Base Period. FTEs for either an existing customer or a new customer are to be created within 3 years of the end of the Base Period.

The term "Full-Time Equivalent Position" shall mean any person employed by the customer either in a contract capacity or in an employer-employee relationship where the employment is for a minimum of 40 hours per week on a permanent basis. The Base Period shall be the 24 months immediately preceding the month that the rate is formally requested.

B. Prior to service being rendered under this rate schedule, the customer shall furnish the Electric Utility with a formal request for service with the number of FTEs the customer employs as of the end of the Base Period. Additionally, the customer shall furnish the Electric Utility with the number of FTEs as of December 31 for each of the subsequent three years and at the end of the three year period. The information shall be submitted to the Electric Utility in writing within 30 days of the end of the reporting period.

The Electric Utility may also, at any time, request and the customer shall provide, within 45 days of the request, the number of FTEs as of the end of any given month or the average number of FTEs during any given month since service commenced under this rate. Any report(s) required as a condition of service under this rate shall be accompanied with an affidavit attesting to the authenticity and accuracy of the report(s) and be attested to by a duly authorized representative of the customer. The Electric Utility shall have the right to audit the customer's records to determine the customer's continued eligibility to receive service under this rate.

C. The customer shall furnish, install, own, maintain, and operate all facilities and equipment on the customer's side of the point(s) of delivery. Electric service of one standard character will be delivered to designated point(s) of delivery on the customer's premises and otherwise in accordance with the Utilities Criteria Manual prescribed by the City of Austin which may be amended from time to time. Notwithstanding any provision to the contrary, the Electric Utility shall have the right to install at the customer's expense whatever equipment it deems necessary to measure the power and energy taken by the customer under this rate.

D. An applicant for service under this rate schedule must actively participate in the City's energy conservation programs by completing a technical energy audit and initiating the highest quality, cost efficient energy management improvements.

E. The maximum term that a customer may take service under this rate shall be 5 years from initial operation of the meter, unless the term is extended by the City Council.

F. If a customer taking service under this rate does not create the requisite number of FTEs within the three-year period referred to herein, then the customer shall pay to the City the difference between the rate the customer would have paid under the otherwise applicable rate schedule and the rate the customer paid under this rate schedule, at the prime interest rate as quoted in the Wall Street Journal during the same period. Thereafter, the customer shall be charged under the appropriate rate schedule.

G. Notwithstanding any other provision of this rate schedule, this rate shall be available only in a year in which the Electric Utility has an annual reserve margin which is greater than or equal to 35% at the time of formal request for service.

H. A new manufacturing customer must apply for this rate no later than the time of application for electric service. An existing manufacturing customer must apply for this rate prior to initiation of the customer's expansion.

I. Upon termination of this rate, the customer shall be charged under the appropriate rate schedule.

We make every effort to be accurate in displaying rates online. In case of conflict, the official tariffs on file with the City Clerk's office take precedence.