Bid Packet

Electric Rate Study RFP

Berea Municipal Utilities PP Electric Rate Increase (2012)

Lighting Rates

Summary by Rate Code Detailed 02-10-2020

BMU Rate Classes

BMU Historical Monthly PCA Charge



  • The second page of the RFP document we received states “All interested bidders are required to request and review the complete request for proposal documents.”  We received an RFP containing a cover page, summary instructions and Sections I. through VII. with an Appendix A.  Are there more documents related to the RFP?  If so, can you please send those documents?

The second page of the packet mailed to you was the ad placed in our local newspaper.  This is done to meet our procurement guidelines.  The packet you received in the mail contains all of the RFP document.

  • When was the last electric cost of service and rate study completed and implemented for Berea Municipal Utilities?  Please provide a copy.

The last cost of service study was completed and implemented in 2012. We adjusted our private light rates to add LED rate codes in 2016.  These are posted as attachments above under the BID PACKET tab.

  • We’re aware that your power costs have declined substantially because of the contracts with American Municipal Power, Inc. and KYMEA and notice the latest budget for BMU reflects this change.  Is this the driving force behind the need for a cost of service and rate study or are there other factors contributing to the need for a review (i.e. rate competitiveness, large capital projects, etc.)?

Our current rate structure was implemented and adjusted in the past as a wholesale customer of Kentucky Utility.  In May 2019, we entered into contracts with American Municipal Power (energy) and Kentucky Municipal Energy Agency (transmission) as wholesale customers.  It is our intent to analyze and develop rates more consistent to our current contractual obligations with an emphasis on residential, commercial, and industrial rate classes contributing a fair and equitable amount to our current wholesale cost. 

  • Can you please provide a complete set of BMU’s existing electric rate schedules including net metering tariffs and any riders such as the PCA?

These documents will be found above under the BID PACKET tab.

  • Section IV, Part 12 indicates information expected to be required to complete the study.  Please identify the resolutions, policies and operation and maintenance practices that we should take into account when estimating the amount of time it require to complete the study (i.e. fund balance guidelines, inside/outside corporation limits surcharges, etc.).
  • Section V, Part 3 identifies a planning period of 2020 through 2025, but BMU’s existing power supply agreement with AMP ends in May 2024.  Can you please confirm that you want the projected period to extend beyond the existing power supply arrangement with AMP?

Our focus is on the 2020 through 2025 planning period.  We anticipate our next purchase power agreement to be competitive to the contracts currently in place.  We will look at performing another cost of service study once we have locked in our rates in the next agreement if needed.

  • Do you have electric plant in service data organized by FERC account for electric system assets (net or gross)?  Also, does it list private area lighting and/or street light assets separately?

The answer to both questions is no.

  • Does BMU separately track its labor and material expenses that are directly attributable to Private Lighting and/or Street Lighting?

This information is tracked through our work order process and can be tabulated to indicate FY costs associated with private lighting.  It is important to note all City Street Light Cost is absorbed by the utility.

  • Are the “operating requirements” and “regulatory obligations” referred to in Section V, Part 3 referring to expenses of operating the electric system or are they referring to something else?

The intent of this statement refers to operating expenses.  Regulatory obligations will refer mainly to our net metering constraints in regards to contractual obligations through American Municipal Power.

  • Referring to Section V, Part 7, does the BMU electric system have any contractual requirements and operations other than the power supply contract through AMP and transmission and dispatch through KYMEA?  If so, please provide a list and describe the purpose of each.

Our current power supply contracts are our only obligations at this point.

  • Referring to Section V, Part 9, what is the expected deliverable regarding “load research development”?

Of the traditional purposes for load research, cost of service allocation and rate design are the two metrics referred to in this statement.  Our expectation will be for the selected firm to analyze historical billing data peak demands and compare to monthly customer data supplied by our billing department in order to recommend fair and equitable kW and kWh charges across all customer classes.

  • Can you please provide a sample of the customer billing data (by rate class) that you have readily available?

Our most current monthly billing data can be found above under the BID PACKET tab.

  • How many other entities were asked to propose on this study?

The RFP Packet was mailed to 9 firms and advertised in our local newspaper.