HomeMy WebLinkAboutAgenda Report - March 6, 1985 (57)CITY CWNCIL MEETING
MWAPX 20{ 1985
ELDCMIC RATE Agenda item K--8 - "Consideration of proposed electric utility
ISE rate increase" was introduced by Utility Director Henry J.
APPROVED Rice who apprised the Council that Lodi's retail electric
rates were last adjusted in duly, 1984. Since that time, the
cost of the City's wholesale electricity has changed
significantly. The City currently receives bulk power from
at least three sources: NCPA (geothermal), PG&E and WAPA.
These bulk power increases of approximately $1.6 M represent
a cost item over which we have no control and which must be
passed through directly to the consumer. These increases are
due to PG&E rate increases in January 1985, as well as WAPA
1.
increases in late 1984 and 1985.
In order to offset the increased cost of power, it is
proposed to raise retail electric rates an average of 17%.'
The -residential rate (EA) has been set at City cost for 0-440
kwh, which is between 4.5% and 6% below PG&E's winter/su{nner
average retail charge; consumption above 440 kwh has been
set an average of 7% below PG&E. Corm-)ercial and Industrial
rates are set approximately 7% below PG&E at benchmark levels
of consumption, which are as follows:
Ccmwrcial/Small Industrial (EB) 1,550 kwh per month
Intermediate Industrial (S -I) 30,800 kwh per month
Large Industrial (S -II) 2,300,000 kwh per month
This proposal will increase annual revenue by approximately
$3.3 million.
FUILM PLANS: Additional wholesale power supplier cast
increases are anticipated; however, these proposed rates
should remain stable so long as power supplier cost increases
are modest.
Discussion followed with questions being directed to the City
Manager and Utility Director Rice.
UFICEXY Mayor Pro Tempore Hinchman then moved for adoption of Urgency
CEDINANCE Ordinance No. 1348 - An Ordinance approving electric rate
1348 ADCPTED increases effective with utility bills prepared on or after
March 1, 1985. The motion was seconded by Council Nim ber
Reid and carried by unanimous vote,
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