ORDINANCE NO, 59 OF 2022 AN ORDINANCE ESTABLISHING ELECTRICAL RATES FOR CUSTOMERS OF THE CITY OF BENTON, ARKANSAS; REPEALING ELECTRICAL RATE STRUCTURES ADOPTED BY THE CITY IN ORDINANCE NO. 28 OF 2020 AND ORDINANCE 70 OF 2021; AND FOR OTHER PURPOSES WHEREAS, the City of Benton, Arkansas, owns and operates the City electric, water and sewer utility systems; and WHEREAS, the Benton Utilities Commission caused. a 2022 Cost of Service Study to be performed and a report from that study has been received and reviewed; and WHEREAS, based upon that 2022 Cost of Service Study, it has been determined that tho current utility rates are not sufficient to cover the Utility’s costs of operation and maintenance, costs of needed infrastructure improvements, debt service, and to maintain appropriate reserves; and WHEREAS, the rates structure set forth herein are reasonable and necessary for the continued operations of the Utility for the reasons set forth herein; and WHEREAS, the prior rate structures for the City were established in previous ordinancos that now must be repealed. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF ‘THE CITY OF BENTON, ARKANSAS: SECTION 1: Pursuant to Ordinanco No. 46 of 2004 and Arkansas Code, the City Council of the City of Benton, Arkansas, has the authority to set rates for the Utility. SECTION | ‘The rates and other charges to be charged by Benton Utilities to its electrical customers shall be as follows: Residential Customers (Class 100): 2028 2 5, 24 Service Availability Charge: §9.08 $9.26 $9.44 1% + CPI Energy Charge per kWh: $0.09188 $0.09872 $0.09559 1% + CPI ‘Small General Service (SGS) Non-Metered Demand Customers (Class 200): 20: 2024. 2025. 2026-Forward. Service Availability Charge: $19.27 $19.65 $20.05 1% + CPI Bnergy Charge perkWh: $0.07666 $0.07820 $0.07976 1% + CPI‘SGS) d Demand Customers (Class 301 2023___-2024 2025 ___ 2026-Forward Service Availability Charge: $19.27 $19.65 20.08 1% + OPI Bnergy Charge per kWh: $0.06802 $0,06938 $0.07077 1% + CPI Demand Charge perkW: $4.59 $4.68 $4.78 196+ CPI Billing demand ie the kW as shown or computed from the readings of Benton Utilities demand meters for the 15-minute period of the customer's greatest use during the month. All small general service metered demand commercial customers of the City of Benton utility shall not pay for the first aix (6) kW of demand for electrical service used during the monthly billing eyele. Large General Service (LGS) Customers (Class 400): 2093 2024 2025 2026+ Forwar Service Availability Charge: $80.48 $82.09 $83.73 1% + OPT Energy Charge per kWh: _ $0.06336 $0.06463 $0.06592 1% + CPI Demand Charge per kW (SM): $10.53 $10.74 $10.95 1% + CPT Demand Charge per kW (OTH): $7.98 $8.14 $8.30 1% + CPL Billing demand ie the kW as shown or computed from the readings of Benton Utilities demand meters for the 15-minute period of the customer's greatest use during the month. Large Power (LPS) Customers (Class 500): 2023. 2024 2025 __ 2026-Forward Service Availability Charge: $640.04 $652.84 $665.00 1% + CPI nergy Charge per kWh: $0.05592 $0.05703 $0.05818 1% + CPI Demand Charge per kW (SM): $9.12 $9.30 $9.49 1% + CPL Demand Charge per kW (OTH): $7.62 $7.77 $7.93 1% + CPL Billing demand is the kW as shown or computed from the readings of Benton Utilities demand meters for the 15-minute period of the customer's greatest use during the month Night watchers and Dusk to Dawn Lights: ‘TypelSize 2028 2024 2025 2026-Forward 175 Watt mv $13.38 $18.65 $13.92 1% + CPL 400 Watt mv $22.91. $23.37 $23.83 1% + GPL 260 Watt hps $18.42 $18.79 $19.17 1% + CPL 400 Watt mv-fl $25.17 $25.68, $26.19 1% + CPT 400 Watt hps-fl $28.57 $29.14 $29.72 1% + CPL 400 Watt mh-fl_ $29.70 $30.30 $30.90 1% + CPL 1,000 Watt hos-fl $56.45 $56.56 $57.69 1% + OPI 1,000 Watt mh-fl $57.71 $58.87 $60.04 1% + CPL Hurricane Lakes $3.78 $3.86 $8.94 1% + CPT 86° Pole $5.71 $5.83 $5.94 1% + CPL 40’ Pole $6.63 $6.76 $6.90 1% + CPL 45° Pole $8.10 $8.26 $8.43 1% + CPLSECTION 3: For 2026 and each year thereafter, in an effort to ensure that electrical rates account for inflation, ratos will be increased by the amount of annual inflation calculated using the all-items consumer price index for the preceding 12-months ending in October plus One (1%) percent (CPI+1%). In November, the new vate shall be announced to customers through their monthly billing statement and shall be presented to the City Council for informational purposes only. SECTION 4: Ordinance No. 28 of 2020 and Ordinance 70 of 2021 which set the electric rates of the City are hereby repealed subject to the effective date stated in Section ‘The electrical rates established under Ordinance 23 of 2020 and Ordinance 71 of 2021 shall remain in effect until March 1, 2023, at which time the rates set forth in Section 2 shall take effect. SECTION 6 If any of the provisions of this Ordinance or the application of lo any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applications of this Ordinance which can be given effect without the invalid provision or application and to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION 7: All ordinaneas and parts thereof in conflict herewith are hereby amended, repealed and superseded to the extent such a conflict exists, including all prior olectrical rate ordinances. PASSED AND APPROVED this day of January, 2023. ‘Tom Farmer, Mayor Cindy Stracenor, City Clerk