§ 523.196. Electric Service Agreements with Commercial Customers  


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  • Notwithstanding any other provision of this chapter, the Commissioner of Cleveland Public Power is authorized to enter into electric service agreements with commercial customers whose peak demand is or will be equal to or in excess of one hundred fifty (150) kilowatts that provide for the adjustment of the commercial customer's rates and other charges under the following terms and conditions:

    (a)   The Division of Cleveland Public Power must recover not less than the incremental cost to provide service to the commercial customer as computed by the Division of Cleveland Public Power;

    (b)   The adjusted rates and other charges may not exceed the rates and charges in the otherwise applicable rate schedule in this chapter;

    (c)   The adjustment must be made at a level to retain net margins and so that the resulting rates and charges in combination with service levels and length of contract provide competitive terms; and

    (d)   The necessity for the adjustment of rates and other charges must be based on uniform criteria determined by the Commissioner and approved by the Director of Public Utilities, including, if applicable, that a commercial customer's existing contract is approaching expiration; a bona fide offer has been made to a commercial customer from an electric competitor of the Division of Cleveland Public Power; the agreement generates a positive contribution margin in excess of that which would be obtained by not entering into the agreement; the agreement is necessary to protect Cleveland Public Power's service area, customer base and revenue stream; the commercial customer's load profile provides a beneficial contribution to Cleveland Public Power's load profile; and that similarly situated commercial customers receive similar adjustments.

    All electric service agreements entered under this section shall have a term of at least five years and shall be valid and enforceable at law.

(Ord. No. 567-14. Passed 5-19-14, eff. 5-20-14)