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

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.

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

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

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.

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.

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

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.

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

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.