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Home My WebLink AboutAgenda Report - September 5, 2007 E-19 PHAGENDA ITEM L7*0 11 CITY OF LODI COUNCIL COMMUNICATION M AGENDA TITLE: Set Public Hearing for September 19,2007 to introduce ordinance amending Chapter 13.20, "Electrical Service," by adding new Schedule CSS (California Solar Initiative Surcharge) to become effective December 1, 2007 (EUD) MEETING DATE: September 5,2007 PREPARED B Y Electric Utility Director RECOMMENDED ACTION: Set Public Hearing for September 19, 2007 to introduce ordinance amending Chapter 13.20, "Electrical Service," by adding new Schedule CSS (California Solar Initiative Surcharge). It is recommended that implementation be effective December 1, 2007. This surcharge will serve as the funding mechanism for the state -mandated solar program. BACKGROUND INFORMATION: California Senate Bill 1 (SB1), known as the California Solar Initiative (CSI), was chaptered into state law in August 2006. The CSI requires all electric service providers in the state to establish a rebate program for the installation of photovoltaic/solar systems on residential, commercial and industrial customer sites. The CSI must begin no later than January 1, 2008 and is mandated for ten consecutive years. Rebates are required to be no less than $2.80 per watt in year one, then dropping by 7% each year thereafter. The state-wide municipal utility share of the CSI for ten years is $784 million, as established by the legislation. Lodi's municipal utility percentage share of the CSI is 0.79%, which is approximately $6 million over ten years, based on energy sales during fiscal year 2005-2006. Lodi's obligation to provide rebates for the CSI are limited to this amount. The proposed Lodi Solar Rebate Pilot Program would limit expenditures for this program at $600.000 per year. This would require funding at approximately one-eighth cent per kilowatt-hourof retail sales ($600,000.00 - 480,000,000 kWh = $0.00125). For an average residential customer paying about $117 per month for electricity the proposed surchargewould add about 80 cents to the bill. The CSI allows utilities to fund their solar rebate program via a rate surcharge. It is proposed that a flat per kWh rate surcharge, initially $0.00125, be established to fund the mandated program. Other funding sources were considered besides the recommended surcharge. These included: No surcharge: The use of existing funds would put the fund balance as well as our recently improved credit rating at risk. Use of Public Benefit Funds: The legislation does not allow for a reduction in the dollars currently expended on existing public benefit programsto fund the CSI program. FISCAL IMPACT: A California Solar initiative Surcharge of one-eighth cent per kilowatt-hour ($0.00125/kWh) would collect approximately $600,000 per calendaryear to fund the state -mandated solar rebate program in Lodi. FUNDING: Not applicable. Georbe F.. Prepared By: Sondra Huff, Sr. Rate Analyst APPROVED: BbiF<Ing, City Manager , Elect& Utility Director )AP Please immediately confirm receipt qf thisfax b calling 333-6702 y CITY OF LODI P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: PUBLIC HEARING TO CONSIDER INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 13.20, "ELECTRICAL SERVICE," BY ADDING NEW SCHEDULE CSS (CALIFORNIA SOLAR INITIATIVE SURCHARGE) TO BECOME EFFECTIVE DECEMBER 1,2007 PUBLISH DATE: SATURDAY, SEPTEMBER 8,2007 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, SEPTEMBER 6,2007 ORDERED BY: C\vllu A I # JO , =j,OF F., 1- P F, 4 Jpfo[FER MIPEARIN, CMC 00" Y CLERK fonns\advins-doc RANDIJOHL CITY CLERK DANAR,CHAPMAN ADMINISTRATIVE CLERK DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 13.20, "ELECTRICAL SERVICE," BY ADDING NEW SCHEDULE CSS (CALIFORNIA SOLAR INITIATIVE SURCHARGE) TO BECOME EFFECTIVE DECEMBER 1,2007 On Friday, September 7, 2007, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider introduction of an ordinance amending Chapter 13.20, "Electrical Service," by adding new Schedule CSS (California Solar Initiative Surcharge) to become effective December 1, 2007 (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 I declare under penalty of perjury that the foregoing is true and correct. Executed on September 7, 2007, at Lodi, California. ORDERED BY: RANDI JOHL CITY CLERK " P C WA 1 -10, N, "Ifabo W. DANA R. CHAPMAN ADMINISTRATIVE CLERK N:�,kdnunistratiorL\CLF-RK\Forms\DECPOST'EUD2. DOC CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: September 19, 2007 Time: 7:00 p.m. For information regarding this notice please contact: RandiJohl City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, September 19, 2007, at the hour d' 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 adding new Schedule CSS (California Solar Initiative Surcharge) to become effective December 1,2007 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 nd Floor, Lodi, 95240, at any time 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: ZohJ City Clerk Dated: September 5, 2007 D. Stephen Schwabauer City Attorney CLERK\PUBHEAR\NOTICES�noleud2.doc 9/6107