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DEPARTMENT

POLICY & PROCEDURE

COMMERCIAL CHARGING RATE PILOT

DPP NUMBER DPP 500 P III-430

EFFECTIVE DATE 01/01/2022 SUPERSEDES 09/22/2020

APPROVED BY

1.0 PURPOSE

To establish rules for the Commercial Charging Rate Pilot, a small-scale, opt-in pilot program offered by the City Light Department ("Department"). The pilot tests rate incentives to shift customer usage by removing the demand charge, discounting rates during low demand hours and charging a premium rate during high demand hours.

2.0 Program Design

2.1 Enrollment Criteria, Pilot participants must meet the following criteria:

2.1.1 Currently on or qualify for a City Light general service rate schedule

2.1.2 Have no overdue balance

2.1.3 Have a new or existing City Light smart meter ("AMI") dedicated to electric vehicle (EV) charging

2.1.4 Have access to the internet to complete periodic surveys and view monthly reports

2.2 Enrollment Process.

Participants will enroll by emailing or calling the Business Customer Service Advisors. Customers will be notified via email upon successful enrollment and a confirmation letter will be mailed to the address listed on their account. Enrollment will be accepted throughout 2022.

2.3 Size of the Program

The program will be limited to 25 customers. Eligible customers will be accepted into the program in the order in which they applied.

2.4 Duration. This pilot program may commence any time after the approval date of this document. The Pilot will end on December 31, 2022.

2.5 Unenrollment. Participation in this program is optional. Customers may unenroll from this program at any time for any reason and return to their default commercial rate. If it is determined a customer no longer meets the eligibility requirements, the Department will notify the customer and return them to their default commercial rate. Customers may not re-enroll in the Commercial Charging pilot.

3.0 RATE INCENTIVES.

3.1 Rate Incentives. Rate incentives in the form of an eliminated demand charge and time-of-day price signals will be provided to participating customers. All participating customers will have the same effective pilot rate structure. Therefore, specific rate incentives will vary depending on the customer's general service rate code. The below table shows the effective pilot rates, as well as the rate incentives specific to customers on the SMC, MDC and LGC rate codes.

Default Rates as of January 1, 2022

Effective Commercial Charging Pilot Rate

Energy Charge per kWh Demand Charge per kW

SMC (Seattle Small General Service) $0.1075 $0.00

Pilot Price Signals / Incentives

Off-peak per kWh -$0.0509 $0.0566

Mid-peak per kWh -$0.0118 $0.0957

Peak per kWh $0.0272 $0.1347

Demand Charge per kW $0.00 $0.00

MDC (Seattle Medium General Service) $0.0815 $4.17

Pilot Price Signals / Incentives

Off-peak per kWh -$0.0249 $0.0566

Mid-peak per kWh $0.0142 $0.0957

Peak per kWh $0.0352 $0.1347

Demand Charge per kW -$4.17 $0.00

Default Rates as of January 1, 2022

Effective Commercial Charging Pilot Rate

Peak Energy Charge per kWh Off-Peak Energy Charge per kWh Peak Demand Charge per kW Off-Peak Demand Charge per KW

LGC (Seattle Large General Service) $0.0930 $0.0606 $4.00 $0.28

Pilot Price Signals / Incentives

Off-peak per kWh -$0.0040 $0.0566

Mid-peak per kWh $0.0027 $0.0351 $0.0957

Peak per kWh $0.0417 $0.1347

Demand Charge per kW -$4.00 -$0.28 $0.00

Pilot Time of Day (TOD) periods:

Off-Peak: midnight - 6 am

Mid-Peak: Monday Saturday 6 am - 5pm, 9 pm midnight, Sunday and Holidays* 6 am - midnight

Peak: Monday - Saturday 5 pm- 9 pm (excluding Holidays*)

*Holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day

Rates shown do not include RSA surcharges

3.2 RSA Surcharge. Any RSA surcharges will be applied as a percentage increase to each component of the effective pilot rate.

3.3 Bill True-up. In accordance with Ordinance 125957 a participating customer's bill will be no higher than it would be on their default rate schedule. If a customer's consumption patterns do not create a discount under the pilot TOD rate structure, their bill for that cycle will be based on the default commercial rate.

3.4 Franchise city rate differential. Applicable franchise city rate differentials will be added to the customer's bill on a bi-annual basis.

4.0 REFERENCES

4.1 City of Seattle Ordinance #125957

4.2 Seattle Municipal Code 21.49.030

Distribution: Posted online @ http://www.seattle.gov/light/policies and SCL Internal SharePoint site

REVISION HISTORY

DATE CHANGES MADE REVISED BY

09/02/2020 This DPP is to establish rules for the Commercial Charging Rate Pilot, a small-scale, opt-in pilot program offered by the Department under authority conferred by Ordinance 125957. The pilot tests rate incentives to shift customer usage by removing the demand charge, discounting rates during low demand hours and charging a premium rate during high demand hours.

Author: Madeline Kostic, Carsten Croff, Chris Ruffini

Coordinator: Kim Kinney

12/13/2022 Updated the incentives for the 2022 Rate Increase Carsten Croff