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Interoffice Communication
ob* S eymour, LAB Plant, Westlake To
Kathy Edwards, Refining, Westlake
From
Karen Evens, MED, Ponca City
Date May 29, 1984
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Subject GULF STATES UTILITIES - INVOICE FOR APRIL' 1984 SERVfCE
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The Gulf States Utilities' invoice for April 1984 electric service is higher than normal for two separate reasons. First, a one-time adjustment of $42,508.15 is included. Second, the adjusted billing load rose to 90,000 kW, which is 90% of the 100,000 kW contract demand that became effective April 1, 1984.
Adjustment of $42,508.15
Conoco's previous contract demand of 90,000 kW became effective October 1, 1983; however, through a Gulf States' oversight, 90,000 was not entered in the Gulf States computer. Gulf States discovered the omission when they went to increase the level to 100,000 kW to be effective April 1, 1984. The current adjustment is to correct for underbillings that occurred in four previous months--November 1983, December 1983, February 1984 and March 1984. In total and per the terms of the rate schedule, Conoco had been underbilled by $42,508.15 ([6039 kW * $7.25/kW] - voltage credit)
hich is now shown as an adjustment dated 4/23.
Contract Demand Increase to 100,000 kW
Effective April 1, 1984, and effective until the sale of Vista, Conoco's contract demand with Gulf States is 100,000 kW; Conoco must pay for at least 90% or 90,000 kW per month. If the increase to 100,000 kW had not occurred, the April invoice would have been billed on 82,276 kW (78,080 kW actual plus a 4,196 kW increase as a penalty for a low system power factor). The April invoice is therefore $54,417.12 higher than would have been the case if the contract had not been increased ([7724 kW * $7.25/kW] - $1,581.88 voltage credit). Assuming the exact same operating conditions for May, the additional charge will increase to $61,368.72 because the incremental demand rate goes up to $8.15/kW. The actual May additional charge will depend on the actual loadings and power factor; it can be computed as soon as the invoice arrives.
If you need additional detail on any of the above, please call me on 442-4070.
Karen L. Evens Utility Rate Specialist Utilities Division
rr cc: Patricia Bates, Refining, Westlake Ray Law, Refining, Westlake
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