Roberts Seafood was a beneficiary of CWLP's Economic Development Incentive.
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 To encourage new businesses to locate in Springfield and existing business customers to expand their operations, CWLP offers an economic development rider to its regular business electric rate schedules. The purpose of the rider is to provide rate discounts to qualifying customers who increase electric demand by a certain amount over their base period demand as a result of new construction, capital expansion or annexation. The rider is aimed at permanent new and existing industrial customers, but is also available to large non-industrial customers whose primary business is not retail sales.

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The base period demand for a new customer would be zero. The base period demand for an existing customer is determined using a three-year average for each month. Industrial and non-industrial customers have different eligibility requirements for increases in demand, which are detailed below.

Industrial Customer Requirements: An industrial customer is defined as one who assembles, manufactures or processes a product for resale from one or several parts. An industrial customer is eligible for service under this rider in one of two categories:

  • Major Expansion, which requires a monthly demand increase of at least 125 kW over the customer's average base period demand; and
  • Minor Expansion, which requires a monthly demand increase of at least 75 kW over the customer's average base period demand.

Non-Industrial Customer Requirements: A non-industrial customer, who is not involved in retail business, is eligible for this rider if that customer increases monthly electric demand over base period demand by 250 kW and if that customer's overall monthly demand (including the 250 kW increase) totals at least 750 kW.

Price discounts available under the economic development rider apply to incremental energy, demand and customer charges resulting from the increased load. For Major Industrial Expansion and Non-Industrial Customers, the discounts are good for a period of five years, starting at 50% of the customer's normal rate in the first year and declining each year to 10% of the normal rate in the fifth year. For Minor Industrial Expansion Customers, the discounts are good for a period of three years, providing a 50% savings on the customer's normal rate in the first year, 30% in the second year and 10% in the third year. The minimum monthly rate for all incremental demand and energy charges bill under this rider shall be 110% of CWLP's cost of production per kilowatt-hour.

A customer receiving service under this rider will not be eligible to receive CWLP's standard discounts for transformer ownership and primary metering during the term of the rider. However, if applicable, these discounts will be applied to the customer's billings after the rider expires.

For more information about or to take advantage of CWLP's economic development rider, contact the CWLP Fiscal Services Office, (217) 789-2116. 

Last update: 01/07/08

 

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