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1. How does the city power department evaluate the efficiency and expense levels of its fixed cost structure?

The power department's mission is to safely provide reliable electricity with superior customer service at a competitive price to the residents and businesses in Kaysville City. All of its decisions are measured against those objectives. Certain metrics are useful in measuring this objective, such as the billing impact of investment decisions, the price of power in Kaysville compared to others in the State, and quality, service, and safety benefits derived from any particular investment decision.

2. Are impact fees assessed to developers to cover the cost of distribution lines to previously undeveloped areas of the city or are these expenses borne by all electrical users?

Impact fees are included in the rate calculations as a reduction to the revenue requirement to be borne by all electrical users. As such, these costs are not collected from all customers.

3. Does increased demand as result of population growth result in higher power rates to the city for consuming incrementally more power?

Although population growth results in an increase in total power demand and associated costs, those incremental costs are offset by incremental revenue from new customers and the net impact should be neutral in power rates.

4. Is there a point at which it becomes economically more feasible to turn the distribution of power over to Rocky Mountain Power to achieve greater efficiency on a larger scale?

Kaysville City can currently provide safe and reliable service at lower rates (approximately 15%) than those offered to Rocky Mountain Power customers. As a municipal utility, Kaysville City does not collect a return on capital for investors and is not subject to income taxes. These two items alone provide a significant cost benefit when compared to an investor owned utility. In addition, Kaysville City is a participant in UAMPS projects with other municipal utilities, an arrangement that provides leverage to maximize efficiency and scale in the electric generation and transmission markets.

5. Wouldn’t it be better to rely on the resources of a major power company like Rocky Mountain than to rely on the city’s limited resources?

Through mutual aid agreements with the UAMPS (Utah Associated Municipal Power Systems) organization and the IPSA (Intermountain Power Superintendents Association) organization Kaysville City has access to the resources, material, equipment, and man power from a multistate area. They also can request assistance from local contract companies.