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HomeMy WebLinkAboutAgenda Report - May 16, 2007 I-02 PHAGENDA ITEM M~'T CITY OF LODI COUNCIL COMMUNICATION FM AGENDA TITLE: Public Hearing to introduce ordinance amending Chapter 13.20, "Electrical Service," by replacing Section 13.20.175 Schedule MCA (Market Cost Adjustment) with Schedule ECA (Energy Cost Adjustment) to become effective July 1,2007 (EUD) MEETING DATE: May 16,2007 PREPARED BY: ElectricUtility Director RECOMMENDEDACTION: Conduct a public hearing to consider changes to Chapter 13.20, "Electrical Service," by replacing Section 13.20.175 Schedule MCA (Market Cost Adjustment) with Schedule ECA (Energy Cost Adjustment). It is recommended that implementation be effective July 1,2007. BACKGROUND INFORMATION: Priorto June 2001, when the Market Cost Adjustment (MCA) was implemented, Lodi's electric rate schedules included an element similar to the ECA, which was called a purchased power cost adjustment (PPCA). The MCA superseded the old PPCA. Whereas the PPCA was applied equally to all kWh on all rate schedules, the MCA has been applied differently to specific rate classes and in some cases on a tiered amount based on monthly consumption. At times, some rate classes saw as much as 19¢ per kWh MCA, while others received little or no MCA. The MCA was intended to be reviewed/revised on a quarterly basis and requires City Council action to make adjustments. The proposed ECA, on the other hand, would providefor "automatic"adjustments with reduced electricity prices theoretical lyj ust as likely as increased charges. Similar schedules are uti l ied by electric utilities nationwide, including many of California's publicly owned utilities (i.e, Anaheim, Redding, Pasadena, Los Angeles, Imperial Irrigation District, and Roseville). Both of the financial rating agencies (Standard & Poors and Fitch) involved in periodic assessment of Lodi Electric U i i s financial condition and outlook have strongly supported the implementation of automated energy cost adjustment mechanisms as proposed herein. The initial ECA base rate ($.0831) being proposed is the approximate energy cost per kWh as reflected in current electric rates. The ECA would be recalculated each month as actual costs are determined and the resulting values implemented for bills rendered on the first day of the following month. Staff proposes to provide ECA calculations to the Lodi Budget and Finance Committeefor their ongoing verification. The ECA would be applied equally to all City of Lodi electric rate schedules, be non -discounted and would replace Schedule MCA — Market Cost Adjustment. Attached is a copy of the proposed Schedule ECA, a 12 -month example utilizing fiscal year 2008 projected sales and energy costs and a preliminary financial forecast for fiscal year 2008. APPROVED: Muir -King, City Manager Public Hearing to Introduce ordinance amending Chapter 13.20,"Electrical Service," by replacing Section 13.20.175 Schedule MCA(Market CostAdjustment) with Schedule ECA (Energy CostAdjustment) to become effective July 1, 2007 (EUD) Moog, 2007 Pale 2 of 2 FISCAL IMPACT: The ECA is intended to berevenuelcost neutral—e.g. when energy costs increase, the ECA increases to offset such costs. The reverse is true during periods of energy cost declines. At the proposed baseline ECA level of .0831 per kilowatthourand projectedfiscal year 2008 energy costs of $42.3 million, ECA net revenue of $3.2 million is projected fxfiscal year 2008. This is projected to result in a net increase in fiscal year 2008 working capital of $1.4 million. (see attached.) FUNDING: Not Applicable, George F. Morrow Electric Utility Director Prepared By: Sondra Huff, Senior Rate Analyst GFWSH/Ist Attachments (3) CITY OF LODI ELECTRIC UTILITY DEPARTMENT SCHEDULE ECA ENERGY COST ADJUSTMENT APPLICABILITY: This schedule is applicable to all electric customers served by the City of Lodi. Each customer shall pay the applicable rate plus an Energy Cost Adjustment (ECA) for each kilowatt-hour (kWh) delivered to the customer. The adjustment shall be the product of the total kilowatt-hours (kWh) for which the bill is rendered times the ECA amount per kWh. The purpose of the ECA is to adjust for increases/decreases to the City of Lodi's wholesale energy costs. This adjustment provides a mechanism to recover increased costs for wholesale energy or to lower collections when costs decrease below the base charge level. RATES: Effective July 1, 2007, the ECA billing factor for any given month shall be calculated as follows: ECA= (a) + (b) - (c)(d+f) - (f) (e) Where: (a) equals the amount the City of Lodi is actually charged by the Northern California Power Agency for the billing month, including adjustments for prior billing periods, less any third party revenue credits. (b) equals the City of Lodi's estimated costs related to the acquisition of wholesale power, both financial and physical, procured directly by the City for the billing month, including adjustments for prior billing periods. (c) equals the difference between actual retail energy sales and projected sales level for the month which is two (2) months prior to the billing month. (d) equals the ECA billing factor for the month which is two (2) months prior to the billing month. (e) equals the forecast of projected retail energy sales for the billing month. (f) equals the baseline energy cost for the City of $0.0831. The City of Lodi will recalculate the ECA each month, and resulting amount shall be automatically implemented for bills rendered during the following billing month. The ECA shall not be discounted. ECA calculations will be presented to the Lodi Budget and Finance Committee for their ongoing audit verification. Canceling Ordinance No. 1772 (MCA) Effective July 1, 2007 ECA -1/1 Ordinance No. XXXX Projected kWh Sales 47,855,123 50,777,091 45,204,178 39,096,357 33,805,787 35,250,737 36,781,484 34,100,289 34,836,715 34,723,133 36,718,520 41,954,944 471,104,356 Energy Charges $ 3,625,649 $ 3,558,207 $ 2,751,355 $ 2,900,961 $ 3,685,351 $ 3,954,336 $ 4,029,295 $ 3,850,719 $ 3,985,613 $ 3,453,524 $ 3,469,809 $ 3,068,698 $ 42,333,517 Average Rate $ 0.0758 $ 0.0701 $ 0.0609 $ 0.0742 $ 0.1090 $ 0.1122 $ 0.1095 $ 0.1129 $ 0.1144 $ 0.0995 $ 0.0945 $ 0.0731 $ 0.0899 ECA $ (0.0073) $ (0.0130) $ (0.0222) $ (0.0089) $ 0.0259 $ 0.0291 $ 0.0264 $ 0.0298 $ 0.0313 $ 0.0164 $ 0.0114 $ (0.0100) $ 0.0068 Cumulative ECA $ (0.0103) $ (0.0140) $ (0.0129) $ (0.0069) $ (0.0018) $ 0.0018 $ 0.0047 $ 0.0073 $ 0.0081 $ 0.0084 $ 0.0068 $ 3,184,745 Baseline ECA 1 $ 0.0831 Schedule ECA Attachment C Sales Revenues 66,889,770 ECA Revenue 3,188,145 Other Revenues 1,022,564 tal Revenues iiiw Purchase Power 71,100,478 42,333,517 Non -Power Costs 11,300,000 Total Expenses 53,633,517 Net Revenue Available for Debt Service 17,466,961 Debt Service 9,131,628 Net Revenue Available for Other Purposes 8,335,333 In -lieu Transfer To General Fund 6,873,228 Other changes in working capital - et Increase (Decrease) in Working Capital 1,462,105 Beginning Cash 5,571,823 GOR Ending Cash 71,0339928 ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING SECTION 13.20.175 SCHEDULE MCA — MARKET COST ADJUSTMENT, AND ENACTING NEW SECTION 13.20.175 SCHEDULE ECA — ENERGY COST ADJUSTMENT BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Section 13.20.175 "Schedule MCA — Market Cost Adjustment" is hereby repealed in its entirety. SECTION 2. Lodi Municipal Code Section 13.20.175 "Schedule ECA — Energy Cost Adjustment" is hereby enacted to read as follows: APPLICABILITY: This schedule is applicable to all electric customers served by the City of Lodi. Each customer shall pay the applicable rate plus an Energy Cost Adjustment (ECA) for each kilowatt-hour (kWh) delivered to the customer. The adjustment shall be the product of the total kilowatt-hours (kWh) for which the bill is rendered times the ECA amount per kWh. The purpose of the ECA is to adjust for increases/decreases to the City of Lodi's wholesale energy costs. This adjustment provides a mechanism to recover increased costs for wholesale energy or to lower collections when costs decrease below the base charge level. RATES: Effective July 1, 2007, the ECA billing factor for any given month shall be calculated as follows: ECA= (a) + (b) - (c(d+f) - (f) (e) Where: (a) equals the amount the City of Lodi is actually charged by the Northern California PowerAgency for the billing month, including adjustments for prior billing periods, less any third party revenue credits. (b) equals the City of Lodi's estimated costs related to the acquisition of wholesale power, both financial and physical, procured directly by the City for the billing month, including adjustments for prior billing periods. (c) equals the difference between actual retail energy sales and projected sales level for the month which is two (2) months prior to the billing month. (d) equals the ECA billing factor for the month which is two (2) months prior to the billing month. (e) equals the forecast of projected retail energy sales for the billing month. (f) equals the baseline energy cost for the City of $0.0831. The City of Lodi will recalculate the ECA each month, and resulting amount shall be automatically implemented for bills rendered during the following billing month. The ECA shall not be discounted. ECA calculations will be presented to the Lodi Budget and Finance Committee for their ongoing audit verification. SECTION 3. The paragraphs referencing a Market Cost Adjustment in the Rate Schedule Exhibits in: Lodi Municipal Code Sections 13.20.190, EA -Residential Service; 13.20.200, ED -Residential Share; 13.20.210, EM -Mobile Home Park Service; 13.20.235, ES -City Facilities Service; 13.20.240, G1- Group1; 13.20.250, G2 -Group 2; 13.20.260, G3 -Group 3; 13.20.270, G4 -Group 4; 13.20.280, G5 - Group 5; 13.20.310, 11 -Group 5 Optional; shall be amended to read as follows: ENERGY COST ADJUSTMENT (SCHEDULE ECA): An Energy Cost Adjustment (ECA) may be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. SECTION 4. The reference to "EA Market Cost Adjustment' in the Exhibit to Lodi Municipal Code Section 13.20.220, MR -Medical Residential Discount' shall be amended to refer to an "Energy Cost Adjustment (ECA) as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment." Further, the second paragraph of the Section of the above Exhibit entitled "Applicability" shall be amended to read as follows: Master -metered customers with qualifying tenant(s) on Schedule EA are entitled to a discount of 25% per billing cycle (monthly bill) for each qualifying household or mobile home unit. Master -metered customers with qualifying tenant(s) on Schedule ED are entitled to to a discount of 5% per billing cycle (monthly bill) for each qualifying household or mobile home unit. SECTION 5. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 6. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 7. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 8. This ordinance shall be published one time in the "Lodi News -Sentinel," a daily newspaper of general circulation printed and published in the City of Lodi and shall be in force and take effect thirty days from and after its passage and approval. SECTION 9. This amended Schedule referenced above shall be effective on applicable elecIicutility billings prepared by the City of Lodi on or after July 1, 2007. 2 Approved this day of , 2007. BOBJOHNSON MAYOR ATTEST: RANDIJOHL City Clerk State of California County of San Joaquin, ss. I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held May 16, 2007, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2007, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. RANDIJOHL City Clerk Approved to Form: D. STEPHEN SCHWABAUER City Attorney Residential Customers with Energy Cost Adjustment kWh 682 915 590 457 469 579 615 555 468 461 430 632 6,853 Amount $ 101.92 $ $ 84.11 $ 64.89 $ 66.83 $ 88.36 $ 96.40 $ 82.99 $ 66.69 $ 65.67 $ 61.06 $ 90.75 $ 1,023.67 ECA +/. $ 0.0073 $ $ 0.0222 $ 0.0089 $ 0.0259 $ 0.0291 $ 0.0264 $ 0.0298 $ 0.0313 $ 0.0164 $ 0.0114 $ 0.0100 $ 0.0071 ECAAmount $ (5.00) $ E142.08 $ (13.12) $ (4.07) $ 12.15 $ 16.84 $ 16.26 $ 16.55 $ 14.65 $ 7.54 $ 4.90 $ (6.29) $ 48.50 Bill Amount $ 96.92 $ $ 70.99 $ 60.83 $ 78.99 $ 105.19 $ 112.67 $ 99.54 $ 81.34 $ 73.21 $ 65.96 $ 84.45 $ 1,072.17 Percent Increase/ Decrease kWh 1,318 1,574 975 703 593 710 964 826 751 592 601 986 10,593 Amount $ 277.71 $ $ 168.63 $ 106.61 $ 85.28 $ 117.64 $ 191.61 $ 147.72 $ 126.80 $ 91.26 $ 90.02 $ 182.22 $ 1,946.19ECA +/. $ 0.0073 $ $ 0.0222 $ 0.0089 $ 0.0259 $ 0.0291 $ 0.0264 $ 0.0298 $ 0.0313 $ 0.0164 $ 0.0114 $ 0.0100 $ 0.0055ECAAmount ECAAmount $ (9.67) E360.69 $ $ (21.68) $ (6.26) $ 15.37 $ 20.64 $ 25.49 $ 24.63 $ 23.51 $ 9.68 $ 6.85 $ (9.82) $ 58.26Bill Amount $ 268.04 $ $ 146.95 $ 100.35 $ 100.65 $ 138.28 $ 217.10 $ 172.35 $ 150.31 $ 100.94 $ 96.87 $ 172.40 $ 2,004.45 Percent Increase/ Decrease kWh 2,504 2,8772,001 1,125 960 1,255 1,609 1,224 1,058 764 1,165 1,368 17,910 Amount $ 667.59 $ 790.68 $ 501.60 $ 216.34 $ 190.33 $ 285.12 $ 401.94 $ 274.89 $ 221.49 $ 129.70 $ 229.06 $ 293.61 $ 4,202.36 ECA +/. $ 0.0073 $ 0.0130 $ 0.0222 $ 0.0089 $ 0.0259 $ 0.0291 $ 0.0264 $ 0.0298 $ 0.0313 $ 0.0164 $ 0.0114 $ 0.0100 $ 0.0042 ECAAmount $ (18.37) $ (37.47) $ (44.49) $ (10.01) $ 24.88 $ 36.49 $ 42.55 $ 36.50 $ 33.12 $ 12.50 $ 13.28 $ (13.62) $ 75.36 Bill Amount $ 649.22 $ 753.21 $ 457.11 $ 206.32 $ 215.21 $ 321.62 $ 444.50 $ 311.40 $ 254.62 $ 142.20 $ 242.33 $ 279.99 $ 4,277.72 Percent Increase/ Decrease Residential ECA example.xls S05-16-07 Lodi Electric Utility City Council May 16, 2007 Background • EUD's current rates include a "manual" Market Cost Adjustment (MCA) mechanism • Intent was to review and update quarterly/regularly to reflect market power costs • Following its initial establishment, MCA level was not adjusted for over 4 years even though market power costs changed • MCA has varied from zero to as much as 19¢ per KWH depending on rate tariff. Proposal • Modify the "manual" MCA clause to reflect changes in power supply costs " automatically" • Energy Cost Adjustment (ECA) would be updated monthly to reflect actual EUD costs • ECA could reflect a charge during periods where costs are higher than "base" level or a credit when costs are lower than base level • ECA identical for all rate classes • July 1, 2007 proposed effective date if feasible Utilities with ECAs • Anaheim • Redding • Roseville • Los Angeles • Imperial Irrigation District • Lassen Municipal Utility District • Pasadena ECA= (a) + (b) - {c}(d+ - (f) (e) (a) equals the amount the City of Lodi` is actually charged by the [Northern California Power AgenGy for the billing month, including adjustments for prior billing periods, less any third party revenue credits_ (b) equals the City of t_odi°s estimated costs related to the acquisition of wholesale power, both financial and physical, procured difectly by the City for the billing month, including adjustments for prior billing periods_ (c) equals the difference between actual retail energy sales and projected sales level for the month which is two () months prior to the billing month_ (d) equals the ECA billing factor for the month which is two (2) months prior to the billing month_ (e) equals the forecast of projected retail energy sales for the billing month. (f) equals the baseline energy cost for the City of $0.0831 - SAMPLE ECA CALCULATION ECA = (a) + U - L1(d+f) _ (fl (el ECA (1/08) = 4,029,295 + 0 - 0 (.0259 +.0831) - .0831 36,781,484 4,029,295 - 0.0831 36,781,484 .10955 - .0831 _ .02645 (JANUARY, 2008) Preliminary FY08 ECA Forecast Sales Revenues 4 W889.770 ECA Revenue 3,188,145 Other Revenues , Total Revenues Purchase Power 71,100,478 42,333,517 Non -Power Costs 11,300,000 Total Expenses 53,633,517 Net Revenue Available for Debt Service 17,466,961 Debt Service 9,131,628 Net Revenue Available for Other Purposes 8,335,333 In -lieu Transfer To General Fund 6,873,228 Other changes in working capital Net Increase (Decrease) in Working Capital 1,462,105 Beginning Cash 5,571,823 GOR Ending Cash F - 7,033,928 ECA Revenue Projections bv Class FY 08 Projections kWh Sales Sales Revenue ECA Revenue Sales + ECA Revenue % Increase in Revenue Residential 166,131,807 $ 27,853,658 $ 1,123,079 $ 28,976,737 4.03% Commercial 209,619,637 $ 30,072,850 $ 1,417,064 $ 31,489,914 4.71 Industrial 95,352,912 $ 8,963,261 $ 9,607,863 7.19% Total 471,104,356 $ 66,8895770 $ 3,184,745 $ 70,074,515 4.76% Note: Assumes FY08 power supply costs of $42.3 million. Other • ECA computations subject to review by Lodi Budget and Finance Committee • ECA would not be "discounted". (There would be no effect, however, on the normal discounts provided on other parts of electric bill.) Credit Effect Positive Neutral/ Weak Liquidity Factor Considerations Quick Liquidity Access Slow A B Best Good oo Unrestricted cash. oo Automatic adjustment rate oo Cash informally pledged. (semi annual or longer). oo Automatic rate adjustment oo Cash formally pledged. (monthly preferred). oo Margins substantially above rate oo No automatic rate adjustment (but covenant. good dialogue with board). oo Surplus fuel reserves. C D Less Favorable Least Favorable oo Low fuel reserves. oo Operating margins narrowly oo Use of existing commercial paper meeting rate covenant. program. oo No automatic rate adjustment. oo Drawdown of bank facility. oo New long-term deficit financing. oo Asset sale. Quick Liquidity Access Slow V��-4 <'0, 100 Alternate Proposal oq `P • EUD did outreach to customers with largest projected FY08 impact from ECA • Suggestion received to "stair step" or phase in ECA implementation • In response, City Council may wish to consider reducing the ECA by a fixed amount (i.e. 10%) for one year. (This % would be applied both to credits and charges.) • Staff believes the financial impact of a 10% reduction (~$320K) can be funded from reserves Summary • Staff has prepared recommendation to adopt an ECA for FY08 and beyond • Consistent conceptually with Lodi's past Market Cost Adjustment Charge (MCA) • Would operate automatically versus past MCA which required manual action to change • FY08 average projected impact of ECA is + 4.8% • Would reduce Lodi's exposure to market energy prices • Recommended by financial rating agencies 00 n �PMonthly Examples Jul -07 August September October November December Projected kWh Sales 47,855,123 50,777,091 45,204,178 39,096,357 33,805,787 35,250,737 Energy Charges $ 3,625,649 $ 3,558,207 $ 2,751,355 $ 2,900,961 $ 3,685,351 $ 3,954,336 Average Rate $ 0.0758 $ 0.0701 $ 0.0609 $ 0.0742 $ 0.1090 $ 0.1122 ECA $ 0.0073 $ 0.0130 $ 0.0222 $ 0.0089 $ 0.0259 $ 0.0291 Cumulative ECA 1 1 $ (0.0103) $ (0.0140) $ (0.0129) $ (0.0069) $ (0.0018) Jan -08 February March April May June FY08 Totals Projected kWh Sales 36,781,484 34,100,289 34,836,715 34,723,133 36,718,520 41,954,944 471,104,356 Energy Charges $ 4,029,295 $ 3,850,719 $ 3,985,613 $ 3,453,524 $ 3,469,809 $ 3,068,698 $ 42,333,517 Average Rate $ 0.1095 $ 0.1129 $ 0.1144 $ 0.0995 $ 0.0945 $ 0.0731 $ 0.0899 ECA 1 $ 0.02641 $ 0.02981 $ 0.0313 $ 0.0164 $ 0.0114 $ (0.0100)1 $ 0.0068 Cumulative ECA 1 $ 0.00181 $ 0.00471 $ 0.00731 $ 0.00811 $ 0.00841 $ 0.00681 $ 3,184,745 Baseline ECA $ 0.0831 Please immediately confirm receipt of this fax by calling 333-6702 SUBJECT: PUBLIC HEARING TO CONSIDER INTRODUCTION OF AN ORDINANCE REPLACING §13.20.175, SCHEDULE MCA (MARKET COST ADJUSTMENT), WITH SCHEDULE ECA (ENERGY COST ADJUSTMENT) PUBLISH DATE: SATURDAY, MAY 5,2007 TEAR SHEETS WANTED: Three (3) please SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, MAY 3,2007 ORDERED BY: jg%FER ERAIN, CMC D F�TY CITY CLERK LN,-; Faxed to the Sentinel at 369-1084 at "' ) on Moned to confirm receipt of all naaes at fonnswvins•doc RANDIJOHL CITY CLERK DANA R. CHAPMAN ADMINISTRATIVE CLERK .T—DRC�JMP (initials) DECLARATION OF POSTING PUBLIC HEARING NOTICE TO CONSIDER INTRODUCTION OF AN ORDINANCE REPLACING §13.20.175, SCHEDULE MCA (MARKET COST ADJUSTMENT), WITH SCHEDULE ECA (ENERGY COST ADJUSTMENT) On Friday, May 4, 2007, in the City of Lodi, San Joaquin County, California, a Public Hearing Notice to consider introduction of an ordinance replacing §13.20.175, Schedule MCA (Market Cost Adjustment), with Schedule ECA (Energy Cost Adjustment) (attached and marked as Exhibit A), was posted at the following locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum declare under penalty of perjury that the foregoing is true and correct. Executed on May 4, 2007, at Lodi, California. AFlNFEq". PERRIN, CMC DEPUTY OTY CLERK N1Adaninistrauon\CLERK\FormslpECPOSTEUD2 DOC ORDERED BY: RANDI JOHL CITY CLERK DANA R. CHAPMAN ADMINISTRATIVE CLERK CITY OF LODI NOTICE OF PUBLIC HEARING Carnegie Forum Date: May 16,2007 305 West Pine Street, Lodi Time: 7:00 p.m. For information regarding this notice please contact: Randi Johl City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING [E(XHIBIT A NOTICE IS HEREBY GIVEN that on Wednesday, May 16,2007, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following matter: a) Introduction of an ordinance amending Chapter 13.20, "Electrical Service," by replacing §13.20.175, Schedule MCA (Market Cost Adjustment), with Schedule ECA (Energy Cost Adjustment) Information regarding this item may be obtained in the Electric Utility Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2"4 Floor, Lodi, 95240, at anytime prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: Rdi Johl City Clerk Dated: May 2, 2007 Approved as to form: D. Stephen Schwabauer City Attorney CLERK,FU9HEARW0TICE5Vxftud2.doc 4130107