Streetlight Service Agreement - LED Street Light Upgrades & Assoc. Rates, IURC Cause No 45285

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Streetlight Service Agreement This Contract, entered into this 22nd. day of February, 2022 by and between Indiana Michigan Power Company, hereafter called the Company, and City of South Bend, Indiana, by and through its Board of Public Works, County-City Building, 227 W. Jefferson Blvd., 13th Floor, South Bend, Indiana 46601, hereinafter called the City, and collectively called The Parties, Witnesseth: For and in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto agree with each other as follows: 1. Settlement Agreement: This Contract is contingent upon approval by the Indiana Utility Regulatory Commission (“IURC”) of a Settlement Agreement between Company and City in IURC Cause Number 45285 wherein The Parties agreed to six essential core terms of this five-year streetlight service contract. Those Settlement Agreement terms consist of the following: Rate Certainty. I&M and City agree that under this customer specific streetlight Contract applying the Public Efficient Streetlight (PES) DSM Program rates for PES LED lights, PES rates shall not increase for five years from the date of the last retrofit. I&M and the City agree to meet no later than six months prior to the end of the five year term to negotiate the contract’s extension. If this Contract is not extended the City may then choose to take service under the then applicable PES rates or standard LED rates. This customer specific Contract will provide that the rates for PES LED lights will remain subject to the Commission -approved tracker surcharges and tracker rate adjustments applicable to standard service customers. PES DSM Rebate Credit. In future rate cases, I&M will not propose to credit or allocate the respective PES DSM Program per fixture rebate to any other LED or old technology streetlight rates or class. I&M will propose that the PES DSM LED retrofit capital cost rebate for LEDs funded by the DSM program shall remain a reduction in the underlying costs used to set rates for PES installed LED streetlights only and I&M will fully defend that position unless the City requests or agrees otherwise. Customer LED Choice. The City shall be allowed to choose the wattage and lumen output of each replacement LED fixture from the portfolio of LED options listed by I&M in this Cause. Doing so allows the City to install the size of LED lumen output fixture that the City views as best meeti ng the City’s nighttime safety and public use needs of each neighborhood or area. Fixture selections made by the City that deviate from I&M’s recommended one-for-one replacement size could be subject to a higher or lower monthly tariff rate, depending upon the agreed-upon PES rate of the fixture selected. I&M and the City agree to collaborate to determine PES Program overall cost effectiveness, including an assessment of LED streetlight O&M and energy savings and the impact of City fixture size selections. I&M will continue to separately record actual streetlight O&M expense to FERC Accounts 585 and 596. I&M will provide a reasonably accurate calculation and estimate of the annual O&M expense and O&M savings resulting from the replacement of HPS fixtures with LED fixtures at the time of its next base rate case and reasonably prior to the meeting agreed to above in Paragraph 1. Photo Cell Rate Reduction. I&M will allow the City to elect to have I&M install longer life approximate 15 year or longer photocells and thereby decrease the frequency and cost of photo cell replacements resulting in a per light monthly rate savings of $0.685. Doing so reduces I&M’s maintenance frequency and costs and in turn reduces the cost to be incurred by the City in participating in the PES Program.