Title
RESOLUTION APPROVING THE MODIFICATION OF THE CONDENSATE SEWER CHARGE IN RATE CALCULATION FOR DULUTH ENERGY SYSTEMS.
Body
CITY PROPOSAL:
WHEREAS, pursuant to Resolutions 12-0636R and 15-0062R, the city council approved the steam rate calculation for Duluth Energy Systems; and
WHEREAS, Ever-Green Energy, LLC, (“EGE”), the city’s manager of Duluth Energy System, has recommended a modification of the condensate sewer charge used in the rate calculation of customer charges for steam service provided; and
WHEREAS, the city has determined that such changes are reasonable and necessary to defray the costs of operating the subject system.
RESOLVED, that pursuant to section 2.3.7 of the energy system management services agreement between the city and EGE, the city council hereby approves the condensate sewer charge for Duluth Energy System customers to be calculated as the current sanitary sewer user charge per one hundred cubic feet (CCF) for class IX established pursuant to section 43-11 of the Duluth City Code, 1959, as amended, and determined as in 43-7, multiplied by 0.122 per 1000 pounds of steam, effective on or after September 1, 2024.
RESOLVED FURTHER, that said condensate sewer charge shall continue to be adjusted at such times as the sanitary sewer user charge is adjusted by the city.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to approve the modification of the condensate sewer charge in the rate calculation structure used by Ever-Green Energy, LLC, manager of Duluth Energy Systems, to calculate the costs of steam energy used by its various customers. The proposed change will modify the condensate sewer rate charge to align with the current sanitary sewer user charge established by the City.