HomeMy WebLinkAboutMinutes - January 13, 2009 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JANUARY 13, 2009
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, January 13, 2009, commencing at 7:30 a.m.
Present: Council Member Hitchcock, Council Member Johnson, Mayor Pro Tempore Katzakian,
Council Member Mounce, and Mayor Hansen
Absent: None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
ANNEW-1=01
B-1 Economic Development Electric Rates (EUD
Electric Utility Director George Morrow provided a PowerPoint presentation regarding the
economic development electric discount. Specific topics of discussion included background, past
Lodi rates, report with the assistance of MBMC, Northern and Southern California comparisons,
key elements of the Economic Development Rate (EDR), draft EDR for Lodi, term and sunset,
applicability, amount of discount, possible numbers, new load size, load factors, job discounts,
energy efficient, geographic limits, penalties, other considerations, and summary conclusion.
In response to Council Member Johnson, Mr. King stated the energy discount is not currently put
into the Enterprise Zone and there may be some geographic limitations.
In response to Mayor Hansen, Mr. Morrow stated the Energy Cost Adjustment (ECA) is a different
subject matter and not directly related.
In response to Mayor Pro Tempore Katzakian, Mr. Morrow stated PG&E has a general EDR
applicable in its service area throughout the State. Mr. Morrow stated that, while there are only
three takers within the County, it still serves as an additional tool.
In response to Mayor Hansen, Mr. Morrow stated the proposed EDR is applicable to new growth
and expansion and the City currently has an existing 200 rate but no one has taken advantage of
it to date.
In response to Council Member Hitchcock, Mr. Morrow stated the incentive itself will not be a
primary driver of why businesses will locate to or expand in the City and staff will need to analyze
the incentive over time to determine how much of a factor it is.
In response to Council Member Johnson, Mr. Morrow stated the discount would not apply to Blue
Shield because most discounted rates apply to manufacturing and industrial businesses.
Mr. Morrow stated office and retail businesses tend to operate one shift and peak seasonally;
although, staff can look into options from both an electric utility and public agency perspective.
In response to Council Member Hitchcock, Mr. Morrow stated most discounted rates came into
play years ago when there was extra capacity and incremental costs were lower than the average
costs. Mr. Morrow stated now the case is opposite where capacity is a concern and incremental
costs have increased. Mr. Morrow further stated the short sunset will help with the tracking and
monitoring of the program.
Continued January 13, 2009
In response to Mayor Hansen, Mr. Morrow confirmed that the discount is only for three years to
serve as an incentive to come to Lodi and get settled or start expansion and the discount then
goes away.
In response to Council Member Hitchcock, Mr. Morrow stated there may be an ability to look at
combining an incentive with LEED certification to encourage participation in both programs.
In response to Mayor Hansen, Mr. King stated that, although it is not specifically written, the
Enterprise Zone and redevelopment project area may be tied in with the incentive by
geographical area. In response to Mr. Hansen, Mr. Morrow stated penalties would be
automatically assessed every month but are designed to be flexible and non -punitive.
In response to Mayor Pro Tempore Katzakian and Council Member Johnson, Mr. Morrow stated
Blue Shield is an example of new growth paying its own way for additional service and other
programs may be put together to assist those businesses.
In response to Council Member Mounce, Mr. King stated that, if the incentive was connected to
the redevelopment project area, it would need to be applied directly to inside the project area.
In response to Mayor Hansen, Mr. Morrow stated penalties are designed not to be too punitive
and discontinuing a discount if it is no longer applicable to a business may be an option.
In response to Council Member Hitchcock, Mr. Morrow stated he currently anticipates there is
sufficient staff to handle the proposed discount program and will return to Council if after further
monitoring that changes.
Pat Patrick, representing the Chamber of Commerce, provided comment and discussed the
discount applying to a small portion of the entire usage, the current state of economic
development, connecting the proposed incentive to the wine and tourism industry, assessing jobs
based on their value to the community, and looking at the specific needs of a business when
offering incentives.
In response to Mayor Hansen, Mr. Morrow stated for residential customers there has been no
base rate increase since December 2005, there is a stabilized power supply which is two-thirds of
the rate structure, the last forecast indicated an increase for base rates in 2012-2013, the costs
for the new energy center and substation are covered through bonds, and there should be no
negative affect on residential customers of the proposed discount.
In response to Council Member Hitchcock, Mr. Morrow confirmed that staff will continue to
monitor the ECA and base rate information on an ongoing basis for financial stability.
W
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:30 a.m.
ATTEST:
Randi Johl
City Clerk
2
B-1
CITY OF LODI
' COUNCIL COMMUNICATION
TM
AGENDA TITLE: Economic Development Electric Rates
MEETING DATE: January 13,2009
PREPARED BY Electric Utility Director
RECOMMENDED ACTION: Receive a presentation by the Electric Utility Department regarding
the possible use of discounted electric rates to promote Economic
Development
BACKGROUND INFORMATION: Over the years, many electric utilities have implemented special
discounted rate tariffs to encourage economic/industrial
development within their service areas.
A report preparedfor the Electric Utility Department (EUD) by MBMC, Inc. in late 2006 highlighteda
number of California electric utility economic incentive rates. This report is attached. MBMC found that
most electric utilities that offered such rates, targeted high "load factor" industrial and/or manufacturing
customers for either business expansion or for relocation to their service areas by offering rate discounts
of various amounts for a period of generally three to five years. The report also noted that other electric
utilities had no economic development rates or had discontinued them.
Given the relatively weak financial condition of the electric utility at the time, staff elected not to
recommend the establishment of an economic development discount program. Recent improvements in
the electric utility's financials, however, have raised the question of whether the implementation of an
economic development rate (EDR) is now appropriate to further EUD and community goals related to
industrial development.
To promote the consideration of a possible EDR locally, a draft version of same was developed for
review and discussion by the City Council (attached).
Key elements of the proposed Economic Development Rate are as follows:
• Three year term:
• New or expanded industrial load only (i.e. no retail):
. 10 percent base discount (does not apply to surcharges);
• Extra 5 percent "job creations" discount (minimum 25 jobs for G2 customers and 50 jobs
otherwise):
• Minimum load addition of 50 to 20OKW depending on rate class:
• 45 percent minimum "load factor": and
• June 30,2010 sunset
Topics for consideration when developing and EDR include term & sunset, applicability, amount of
discount, minimum load size, minimum load factor, new job criteria, energy efficiency, geographic
limitations, and penalties.
APPROVED: 9D2!=�
BI ' , City Manager
SUPPLEMENTAL SCHEDULE ED
ECONOMIC DEVELOPMENT INCENTIVE DISCOUNT
APPLICABILITY:
This rate is available to qualified G2, G3, G4, G5 and I1 customers for the purpose of industrial
business attraction or existing industrial facility expansion. An industrial customer is one who
operates facilities that are not involved in the sale of goods and services directly to the public as
determined by the Electric Utility Department (EUD). Customers must file an application
requesting an Economic Development Incentive Discount (EDID) prior to taking electric service
for the qualified new or expanded load.
BASE DISCOUNT:
The Base Discount shall equal ten percent (10%) of the electric bill associated with the qualified
new or expanded load. The Base Discount shall not apply to the Solar Surcharge, CEC fee, State
Energy Tax or any other assessment or charge levied on electric bills after the effective date of
this rate schedule unless specifically provided otherwise.
JOBS CREATION DISCOUNT:
In addition to the Base Discount, an EDID qualified customer may receive an additional five
percent (5%) discount of the electric bill associated with the qualified new or expanded load if
they create a minimum of 25 new jobs (G2 customer) or 50 new jobs (G3, G4, G5 AND I1
customers). If the new job count associated with qualified new or expanded load falls below this
level in any given month, no Jobs Creation Discount shall be applied for that month. The Jobs
Creation Discount shall not apply to the Solar Surcharge, CEC fee, State Energy Tax or any
other assessment or charge levied on electric bills after the effective date of this rate schedule
unless specifically provided otherwise.
LENGTH OF DISCOUNT:
As to any customer, the EDID shall apply for a period of thirty six (36) months.
MINIMUM LOAD ADDITION:
To qualify for the Economic Development Incentive Discount, the new or expanded load must
be sized at or greater than the following:
G2 50 kilowatts (KW)
G3
50 KW
G4
100 KW
G5
200 KW
I1
200 KW
Draft
January 13, 2009
Supplemental Schedule ED
Economic Development Incentive Rate
Customer must provide information satisfactory to EUD regarding the planned size of the new or
expanded load. The new or expanded load eligible for an EDID shall be separately metered. If a
customer's discounted load level falls below the applicable minimum level in any given month,
no discount shall be applied for that month.
TERM OF DISCOUNT:
This Supplemental Schedule ED shall be in effect until June 30, 2010 for new customers. Once a
customer is placed on this rate schedule, however, that customer's discount shall be in effect for
thirty six (36) months unless terminated earlier as provided in this schedule.
LOAD FACTOR:
Customer shall maintain a monthly load factor of at least 45 percent for the load receiving a
discount. If the load factor falls below this level in any given month, no discount shall be applied
for that month.
IMPLEMENTATION:
EUD shall be responsible for establishing administrative rules and processes for administering
the rate schedule. Customers shall provide information on a timely basis to enable EUD to verify
eligibility and to administer the terms of this rate schedule.
2 Draft
January 13, 2009
lVfBMC_ Inc was engaged by the City of Lodi Electric Utility (Lodi. City or Utility) to
provide examples of the types of economic development rates and provisions that other
California Utilities use to promote economic development and job creation within their
service areas, and develop an economic development rate for Lodi The process for
doing so involves the completion of comparable rates, a discussion of options available to
Lodi and the formulation of a -fate for Lodi
Approxiniately two thirds of the State's electric consumers are sewed by investor owned
utilities 'Thebalance is served by utility districts and municipalities Examples of rates
from the investor owned utilities., special districts. and cities were obtained and are
included in this report.
The report is divided into four major sections The first section provides a summary of
regional economic development rates broken down by northern and southern California
Such rates were most popular during the 1990's as utilities were afraid of 'losing valuable
commercial customers to competition Since the deregulation experiment was such a
dismal failure many utilities have either terminated or allowed these rates to expire
There are several that survive to this day, and some of these rates provide a competitive
economic development factor in service areas adjacent to or near Lodi Examples in
northern California include the Pacific Gas and Electric Company, the cities of Alameda
and Redding, and the Modesto Irrigation District
The third section of this report provides the general parameters for the development of an
economic development rate in Lodi. In this section potential parameters are identified,
defined and explored with Lodi's economic development objectives in mind.
The final section of this report contains a draft economic development rate This rate is
essentially a "straw man" that was developed with Lodi's general objectives in mind
The consultant understands that Lodi desires the economic development rate to create the
incentive for new high paying jobs in the community while assuring that the program cost
is covered.
This report and its Draft Economic Development Rate lays the groundwork for a more
informed discussion amongst Lodi lenders in order to finalize the discounts, terms and
conditions that will ultimately be included in the final economic development rate Once
feedback to the suggestions and data contained herein is received the economic
development rate for Lodi will be finalized
A variety of Economic Development Rates (ED Rates) were reviewed as part of this
analvsis_ Initially it was thought that the most applicable examples would come from
northern California utilities that are in competition with Lodi for business attraction and
business retention It became apparent early on that there is not an abundance of
comparable northern California ED Rate examples available Many utilities either do not
have ED Rates, or given the fail-ure of deregulation and direct access they have been
allowed to expire or have been terminated For this reason, the review was expanded to
include southern California utilities.
ED Rates for northern California utilities used in this analysis include Pacific Gas and
Electric Company (PG&E), Sacramento Municipal Utility District (SMLTD), Modesto
Irrigation District (MID), and the Cities of Alameda and Redding Copies of the ED
Rates for these utilities are provided in Appendix A Table 1 contains a summary of ED
Rates for these utilities. SMUD rates are discussed separately since they no longer are
offered to SMLM customers
Table I
Northern California ED Rate Summary
The PG&E, Alameda and Redding ED Rates are quite comparable. The major difference
between PG&E and Redding is that the PG&E Limiter is based upon its marginal cost
while the Redding Limiter is based upon its average cost Alameda's Limiter requires
that the customer's Load Factor not fall below 30% over three consecutive months.
Alameda also requires the customer to refund the total amount of the discount should
' Includes a 5 year contract, applies only to that portion of load likely to relocate for which customer must
sign a "but for" statement.
Effective for 5 years, relocation within 5 years requires fitll re$md of all discounts. Load factor cannot
fall below 30`?la forthree consecutive months.
y Includes a 5 year contract with penalties for early termination. Customer must apply within one year of
becoming eligible.
2
PG&E
Alameda
Redefine
bill.}
Incentive
Yr 1
25%
25%
25%
Negotiated
Yr 2
20%
20%
20%
Negotiated
Yr 3
15%
15%
15%
Negotiated
Yr 4
10%
10%
10%
Negotiated
Yr 5
5%
5%
5%
Negotiated
Limiter
Marginal Cost
Load Factor
Average Cost
NA
Cap
100MW
NA
NA
NA
Conditions
1
2
3
5 Year Contract
The PG&E, Alameda and Redding ED Rates are quite comparable. The major difference
between PG&E and Redding is that the PG&E Limiter is based upon its marginal cost
while the Redding Limiter is based upon its average cost Alameda's Limiter requires
that the customer's Load Factor not fall below 30% over three consecutive months.
Alameda also requires the customer to refund the total amount of the discount should
' Includes a 5 year contract, applies only to that portion of load likely to relocate for which customer must
sign a "but for" statement.
Effective for 5 years, relocation within 5 years requires fitll re$md of all discounts. Load factor cannot
fall below 30`?la forthree consecutive months.
y Includes a 5 year contract with penalties for early termination. Customer must apply within one year of
becoming eligible.
2
they= relocate within the five year timefran e. The MID ED Bate is the most Ile-x-ible of
the three as it is essentially a negotiated contract.
SMUD had two ED Rates including a nevv job rate and a temperature dependent rate.
Both of these rates are closed to new customers. Since they are somewhatunique, and
were likely developed for individual customers a brief discussion follows. Both of the
SIVILD rates are included in Appendix A.
The SMUD newobs rate s-ED2) provided for a discount to employerswho added 250
or more jobs_ Although the amount of the discount is not clear from the schedule, it
appears that the discount offered essentially covered SMUD's embedded cost of
germ-ation, transmission and distribution. This rate required a 5 year contract
SA/ILrD customers adding between 25 and 250 jobs were able to negotiate a rate (GS -
TDP) between SMUD-'s embedded cost and its marginal cost This was a unique rate that
was dependent upon the temperature within the SMUD service area It provided for
different prices depending upon the local temperature The breakdown of the rate was
based upon the following temperature recordings (T = Temperature)
= 100 degrees for -2 days or more
100 degrees f'br I day
I00 degrees>'1>9 5 degrees
6 95 degrees==T`.90 degrees
T<90 degrees
3
ED Rates for representative southern California utilities were obtained from Southern
California Edison Company (SCE) as well as the Cities of Anaheim and Riverside Table
2 contains a summary of the ED Rates for southern California utilities The rates for SCE
and Riverside are still active Anaheim's rate was terminated on August 1, 2006 Copies
of these rates are included in Appendix E
Table 2
Southern California ED Rate Summary
The SCE ED Rate is essentially the same as PG&E's The only difference is that it is not
subj ect to the cap of 100 MW Riverside's ED Rate is unique in that it is deeply
discounted in year 1 (40 percent) The year 2 discount is 20 percent. ED Rates in years 3
and 4 are not discounted: however they cannot increase by more than 105 percent and
110 percent respectively over the year 1 non -discounted rate In order to be eligible new
customers must add 500 kW of new load Existing customers need to add 20 percent to
their load or 50 kVA'
Anaheim's ED Rate was unique in that it was tied to the applicant's load factor The
larger tire load factor the greater the discount Discounts were also doubled for customers
who located in the Anaheim Canyon Redevelopment Area
a
Includes a 5 vr. contract and customer must maintain nih-ununru load.
Includes a 4 yr. contract with approval of Riverside Econonuc Development Corporation. Riverside
Board of Public Utilities._ and Riverside Cite Council. New load must ex-ceed 500kx . Existing load must
increase 20% or 50 Iti.)A7_ Rates in year 3 cannot increase by more than 105% from the year I non -
discounted levet, rtes iru year 4 cannot increase by more than 1 t0%a from the near 1 non -discounted level..
Discounts doubled in redevelopment area.. klust add 200 K)AI nein load. Rate closed as of August 1.
2006,
4
SL:E
Riverside
Anaheim
Incentive
(SCE/Riverside)
Efficiency
Yr 1
2�`'0
40%
X60% 0.0%
Yr 2
20%
20%
60-64° 0 5.0%
Yr 3
15%
0%
65-70° 0 5.5%
4'r 4
10%
0° 0
71-74% 6,0%
'r 5
NA
75-79% 7.0%
>80%
Limiter
anginal C ,st
NA
NA/
Cap
?STA
NA
NA
Condit€€arts
4
c
The SCE ED Rate is essentially the same as PG&E's The only difference is that it is not
subj ect to the cap of 100 MW Riverside's ED Rate is unique in that it is deeply
discounted in year 1 (40 percent) The year 2 discount is 20 percent. ED Rates in years 3
and 4 are not discounted: however they cannot increase by more than 105 percent and
110 percent respectively over the year 1 non -discounted rate In order to be eligible new
customers must add 500 kW of new load Existing customers need to add 20 percent to
their load or 50 kVA'
Anaheim's ED Rate was unique in that it was tied to the applicant's load factor The
larger tire load factor the greater the discount Discounts were also doubled for customers
who located in the Anaheim Canyon Redevelopment Area
a
Includes a 5 vr. contract and customer must maintain nih-ununru load.
Includes a 4 yr. contract with approval of Riverside Econonuc Development Corporation. Riverside
Board of Public Utilities._ and Riverside Cite Council. New load must ex-ceed 500kx . Existing load must
increase 20% or 50 Iti.)A7_ Rates in year 3 cannot increase by more than 105% from the year I non -
discounted levet, rtes iru year 4 cannot increase by more than 1 t0%a from the near 1 non -discounted level..
Discounts doubled in redevelopment area.. klust add 200 K)AI nein load. Rate closed as of August 1.
2006,
4
On September 19.2006 a meeting was held with the General Manager of the Lodi
Electric Utility to discuss various options regarding parameters for a unique ED Rate for
Lodi Options discussed included rate levels, terms and conditions, limiters and caps A
brief listing of potential parameters follows, as well as a discussion of the parameters that
may best apply to Lodi based upon feedback obtained from City leadership
* Rate Level
percentage Discount
Fixed Discount
* Terms and Conditions
o 5 vears, or other
c-, Sunset pros v ision
o Contract
• Number r o o s `vi £dte€d
(, Amount of neer load
.o Load tactor provisions
?D Fealties for non-perfornrance or early termination
o -But f( -)r" requirement
Limiter
Averao-e cost
o Marginal cost
3 Other
Cap
o mount of new load
Eased upon the ED Rates offered by competing California utilities, general elect, c
industry considerations and initial feedback obtained from Lodi City and Utility
management, the following general parameters were determined to be worthy of
consideration by the City
These parameters have been incorporated into the Draft ED Rate developed for L,odi's
consideration. The Draft: ED Rate is included at the end of this report. Discussion on
each of the parameters follows A summary of feedback desired from the City in order to
finalize development of the ED Rate is provided at the end of this section.
Rate Level — In order to provide for discounts comparable to other local utilities
including PG&E, Alameda, and Redding, a sliding scale discount is suggested for Lodi
The discounts are the same over time as far these northern California utilities that
presently offer ED Rates These discounts could be lower, or higher depending upon
Lodes input. Give -n- the relatively narrow margin between Lodi's existing rates and fi{ily,
allocated cost of service it is not recommended that these cliscounts be any greater than
presented At the City's discretion these discounts may simply be a fixed amount such
as 15 percent In fact, under the section titled "Limiter " an pages ? and 8 these discounts
would be limited to less than the amount presented below For Draft and discussion
purposes it is recommended that Lodi consider using the discounts contained in this
Draft, but limit them by parameters established in the "Limiter" section As discussed in
that section of this report, there is some latitude as to exactly how these limits are
establish ed
Discount
• Year 1
25%
• Year 2
201/o
• Year 3
15%
• Year 4
10%
• Year 5
5%
Terms and Conditions – A number of terms and conditions are included in the Draft
Lodi ED date for consideration by the City, Included amongst these are the iollowing
terms and conditions.
• Term – she term of the agreement describes the amount of time that eligible
customers would receive discounts under the ED Rate The Suggested ED Rate
ror purposes of this Draft would be in etf-ect for eligible c sporners f sr a period of
5 years frons the date that the customer begins service under this rape
• Sunset Provision – Rather than have the ED Rate permanently appear in L odi's
rate schedule, it is recommended that this rate have a sunset provision A number
of utilities that established ED Rates during the period of deregulation have since
stopped offering these rates Examples of utilities that have suspended or
terminated ED Rates include Si'MID and Anaheim The Draft ED Rate is
suggested to be in effect for a period of 3 years and would terminate for new
customers on December 31, 2009 unless extended by the City December 31,
2009 was established since it corresponds to the termination of the PG&E ED
Rate
• Sob Based Parameters – It is possible to establish minimum eligibility
requirements in terms of the number of jobs or the number of j obs that meet some
minimum salary or hourly rate, or some combination of the two Based upon
discussions with City management it is understood that the City desires to
promote higher paying jobs Far purposes of this Draft ED Rate, in order for
customers to be eligible for the Lodi ED Rate discount, applicants must create a
minimum of new jobs that pay a minimum of $ — per hour in order to be
eligible for this rate
• Amount of New Load – Rather than offering the discount to small or undesirable
load, Lodi should consider establishing a minimum load level and minimum load
factor for ED Rate discount eligibility For purposes of this Draft ED Rate the
mini.m.urn has been set at 50 k -W The City may wish to set an even higher level
of I00 KW For purposes of compa.ri.son, Riverside's ED Rate requires 50 KW of
C
new load for existing customers and 500 KW for new customers Anaheim.'s ED
Rate, when it was in effect- required 200 KW of new ioad for customer eligibility
Redding's ED Rate requires the addition of 100 kW for at Least three months of
the year Given Lodi's size an amount in the 50 — 100 KW range is likely most
appropriate
Load Factor — Load factor represents a measure of efficiency of rise It is
calculated by dix iding the energy use3 in a billing period by the product of the
peak demand a,nd the hours in the billing period Load factor is e piressed as a
percentage In order f(�r the applicant to qualify for the Draft Dodi ED Rate they
must have a load factor that does not fall below 50 percent in any consecutive
three month period of time The City of Alameda currently requires a 30 percent
load factor for its ED Rate A 30 percent Ioad factor is a rather low and is
considered undesirable Ioad Anaheim's ED Rate, when it was offered, was
actually tied to the Ioad factor The discount was greater the higher the load
factor The system load factor in Lodi is approximately 50 percent, so this
amount is recommended for Lodi's use Lodi may wish to establish a different
limit as it considers these parameters
Penalties for Non -Performance and/or Early Termination — In some cases
( Alameda, Riverside) there are penalties contained in ED Rates for either non-
performance and/or early termination Penalties for both non-performance and
early termination have not been included in the Lodi Draft ED Rate A clause that
allows the City to terminate the agreement upon 30 day written notice is included
in the Draft ED Rate This provision would allow the Utility to terminate the
agreement for non-performance of the customer
Penalties that Lodi may wish to consider include:
o Dion-Peiformance — If the customer does not generate and maintain the
number ofjobs identified in the ED Rate, or does riot maintain the
minimum load factor, they would no longer eligible for the ED Rate and
must refund all discounts to Lodi Electric
o Early Termination — Should the customer leave the Lodi service area or
otherwise not meet their commitments under the ED Rate they would be
r6bbir@0 to refund all discounts to Lodi Electric.
Limiter -- Limiters are Sometimes established in order to assure that the discounts are not
subsidized by other customer classes, or to establish limits to discounts offered
Typically, these limiters are established by using either the average cost of service or
marginal cost of service for the utility. Other measures may be used and it may even be
in the best interest of the community to have some subsidy provided from other customer
classes in order to promote economic development.
For- purposes of the Draft ED Rate several options were considered. Marginal cost is not
an option as it has not been calculated for the Lodi utility. Average cost of service
information is available for consideration purposes Using Lodi's most recent Cost of
7
Service Analysis (COS A)7, the maximum existing discount by rate using this limiter
would be as follows
Table
Average: Cost of Service Limiter Analysis
Rate Class
Lodi Rete (0/KWh)
C:OSA (0/KWh)
Variance
G1
16,6
14.0
15.6%
G2
15.0
12.9
14.0%
G3
114A
12,9
10A%
G4
12.>
12.3
0.0%
This amount may be acceptable to Eodi for the AGI, G2, and possibly G3 rates as it
produces maximum discounts o f 15 6%, 14 0%, and 10 4% respectively Rate class G4 is
set at the average cost of service, so under this methodology no discount would be
available to this class This is not desirable since this large rate class is most likely the
one that would produce needed high skilled jobs in Lodi For this reason, the suggested
Draft ED Rate for Lodi utilizes the COSA based limiters for rate classes G1 and G2 and a
modified limiter for rate classes G3 and G4 Calculation of the suggested limiterfor rate
classes G3 and G4 are based upon meeting the current cost of generation resources ( 8
0/KWh) plus an allotment for transinission and distribution expense o f4 0 p'/KWh for
rate class G3 and 2.5 ¢/KWh for rate class G4 Using this suggested methodology the
discounts available under the limiter would be 16 7% for rate class G3, and 14 6% for
rate class G4
Table 4
Suggested Limiter
Rate: Class
Lodi Date (0/10%Wh)
Limiter (O/KWh)
Variance
G1
16.6
14.0
15.6%
G2
15.0
12.9
14.0%
G3
14A
12.0
16, 7%
04
12.3
10.5
14,6%
Given the results of this analysis. another option that Lodi may wish to consider is to
simply establish a fixed discount for all commercial rate classes of 15 percent for a period
of four to fiv e years
Summary of Parameter Options Identified
A quick recap of options that Lodi may wish to contemplate further given local wants and
needs has been provided below As stated earlier, there is much latitude available
regarding the structure of the discounts and the terms and conditions applied to this
Electric Cost of Senrice Anal) sis Study. Borismetrics. [DATE?]
particular rate schedule. There is latitude to mold this rate to meet these local objectives
The following Draft Lodi Economic Development Rate i s an attempt to identify options
available to the City for its consideration based upon what other utilities are doing in this
area and decisions that other cities, districts and the California Public Utilities
Commission have made in other jurisdictions The options worthy of further discussion
within the City are as follows.
I The amount and length of discounts established
2. The limiter methodology employed, if any
3 Sunset provision and date (Draft establishes December 31, 2009)
4 The number of new j obs that must be created to qualify for the discount
5 The amount that these new jobs must be paid in order to qualify for the discount,
if determined to be a desirable condition
6 The amount of new load created in order to qualify for the discount (Draft
establishes SO kW)
7 The load factor that must be maintained in order to qualify for the discount, if any
(Draft establishes 50%)
8 Any penalty for non-performance and/or early termination (Draft contains no
penalty, but does provide for termination if the Terms and Conditions are not
met)
Draft Lodi Economic Development Rate
The following draft rate schedule is provided for Lodi management discussion purposes
It contains suggested provisions for management consideration based upon knowledge of
Lodi's objectives in a generai sense and electric industry standards. As mentioned in the
last section of this report, there is considerable latitude that can be incorporated into these
parameters based upon local preference. They are realistically one of the advantages of
local control and can be tailored as need be to meet Lodi's business development
objectives.
W
N
(Applied•' oCommercial
Schedules)
APPLICABILITY:
This rate is available to qualified customers for the purpose of business attraction or
Facility expansion Qualified customers are new or existing commercial service
customers who add an annual peak demand of at least 50 kWz and who meet the criteria
provided for in the Terms and Conditions provided below Existing customers may be
asked to demonstrate that they have a similarly situated site outside of Lodi Electric's
service area that would otherwise be expanded absent this discount Qualifiednew
customers may he asked to sign an affidavit stating that this discount is a material factor
in their decision to locate in Lodi Electric's service area Participation under this
schedule is voluntary and is made available at Lodi Electric's sole option
A discount will be applied to all charges under the commercial service rate schedule for
which the customer qualifies, exclusive of any state or local taxes or fees as follows:
Discount: First 12 Months
25 percent
Second 12 Months
20 percent
Third 12 Months
15 percent
Fourth 12 Months
10 percent
Fifth 12 Months
5 percent
Discount Limiter:
The average rate after application of the incentive Linder, this schedule cannot be Less than
Lodi's average cast of service for rate schedules CTI and 2; cannot be less than Lodi's
average cost 01 generation plus 4 O/K h for rate schedule G3, and cannot be less than
Lodi's average cost of generation plus 2 5 ¢/KWh for rate schedule G4
1. TERM:
This discount will be in effect until December 31, 2009 to existing and new
customers that qualify for the discount. Croce established on the rate, the discount
10
9vill be - effect for five years as provided for its Discount unless it is term- aced
bv Lodi Electric: in accordance with Condition number 5, Tennination,
2. JOE PROVISION:
In determining availability of this schedule, customers may be required to certify
that they will directly create a minimum of— new full time equivalentjobs, at
least of which are compensated at or above $_ per hour. These positions and
compensation levels must remain in tact for the balance of the Term of the
discount in of-derto maintain eligibility.
. NEW L-
A new or existing customer must agree to acid and maintain a minimum of 50 1<_W
new, lead in order to qualify for this discount.
4. LOAD FACTOR:
If the customer's load factor falls beloiN 50 percent for gree consecutive months,
Lodi Electric, at its option, may remove the customer from this rate schedule
The load factor is calculated by dividing the energy used in the billing period by
the product of the peak demand and the hours in the billing period
5. TERMINATION:
Lodi Electric may terminate this agreement upon 30 days written notice should
the customer fail to meet any of the Terms and Conditions contained herein.
Potential Parameters for Lodi Economic Development Rate
Rate Level:
• Percentage — such as PG&E/Redding
Fixed Amount — such as average cost
• Combination Percentage and Limiter
Term:
• 5 years
• Other
Cap:
• Amount of new load (MW)
• Ability to terminate to new customers at any time
Limiter:
• Averagecost
• Marginal cost
Conditions:
• Contract
• Number ofjobs
• Amount of new load (100 Kw?)
• Load factor (at least system LF?)
• Penalties for non-performance or early termination
+ "But for" requirement
� 1 a
NORTHERN CALIFORNIA ECONOMIC DEVELOPMENT
RATES
Revised Cal. P. U. C. Sheet No. 23917-E
Pacific Gas and Electric Company Cancelling Revised Cal. P.U. C. Sheet No. 22222-E
® San Francisco, California
SCHEDULE ED -ECONOMIC DEVELOPMENT INCENTIVE RATE (T)
APPLICABILITY: This schedule is availableto qualified customers locating, expanding, or retaining load (T)
on PG&E's electrictransmission and/or distribution system. Customers taking service I
on Schedule ED must sign an Agreement for Economic Development Incentive on (T)
ElectricService (Form No. 79-771).
TERRITORY: This schedule is availableto customerswithin PG&E's electricservice territory (T)
RATES: The rate provides a five-year declining rate incentive equal to a percentageoff the (T)
customer's otherwise applicable tariff (OAT) bundled rate (excluding taxes) as shown j
below. An equivalent incentivewill be available to Direct Access (DA) and Community I
Choice Aggregation (CCA) customers. For DA and CCA customers, the incentive will be
calculated based on the OAT DA/CCA rate (excluding taxes) plus a proxy for generation
based on the otherwise applicable bundled service generation rate. (T)
Incentive Reduction:
First 12 months.................................................................................... 25 percent (I)
Second 12 months............................................................................... 20 percent
Third 12 months ................................................................................... 15 percent (i}
Fourth 12 months................................................................ ................. 10 percent (N)
Fifth 12 months...................................................................................... 5 percent (N)
Incentive Limiter: (T)
The average rate after application of the incentive under this schedule cannot be less (T)
than PG&E's marginal cost of service as described below in the Floor Price section. (T)
FLOOR PRICE: The sum of the revenues collected by PG&E from the customer, exclusive of any (N)
additional applicable taxes, shall notfall below a Floor Price equal to PG&E's total
customer -specific marginal cost of service, which includes distribution, transmission, and I
generation (for bundled -service customers) marginal costs. The California Public I
Utilities Commission's adopted marginal costs in effect at the time of each contract I
executionwill be used for this calculation, and used throughout the term of the I
agreement. I
The revenueswill be reviewed annually to ensure that they equal or exceed PG&E's j
marginal cost of service, up to the OAT revenues the customer would have paid if it had I
not received the incentive. Additional lump -sum charges may be due to PG&E or credits
due to the customer after each annual review. The charges will be designed to ensure I
that revenues do not fall below the Floor Price described above each year. Credits, if I
available after the annual review, will be provided if the customer's incentive rate had
been previously reduced from the maximum Incentive Reductionsabove. I
I
PROGRAM All agreements must be executed prior to December 31, 2009. This schedule will remain I
EXPIRATION open until such time the last agreement expires or terminates. j
AND CAP: j
The total contract demand on Schedule ED, at any point in time for active agreements,
will be capped at 100 MW (megawatts). (N)
(L)
Advice Letter No. 2716-E
Decision No. 05-09-018
Issued by
Karen A. Tomcala
Vice President
Regulatory Relations
(Continued)
Date Filed Seotember 23. 2005
Effective September 23. 2005
Resolution No.
Revised Cal. P.U.C. Sheet No.
Pacitc Gas and Electric Company Cancelling Revised Cal. P.U. C. Sheet No.
8", San Francisco, California
SCHEDULE ED—ECONOMIC DEVELOPMENT INCENTIVE RATE
(Continued)
SPECIAL I. Eligible Customers: Eligible customers are those on or electing existing
CONDITIONS: Schedule A-1 0, E-19, or E-20, or their successor rate schedule. New customers
with maximum billing demands greater than 200 kW, existing customers who add
at least 200 kW of maximum billing demand, or existing customers with at least
200 kW of maximum billing demand that are considering relocating their load
outside of California may qualify. Note, Schedule ED is not applicable to
customers receiving service under Schedule E-31.
For existing customers, only the additional demand or that portion deemed likely to
relocate may qualify for the Schedule ED incentive reductions. New or additional
billing demand does not include billing demand that exist within the State of
California at the time eligibility is determined.
PG&E will consult with the Office of California Business Investment Services
(CaiBIS), or its successor entity, underthe supervision of the California Business
Transportation and Housing Agency (BTH), in order to determine qualified
customers. Approval by CaIBIS is necessary, but not sufficient, for determining
eligibility. PG&E reservesthe right for final review and determination, and
Schedule ED shall be offered at the discretion of PG&E.
Residential customers and state or local governmental agencies are not qualified
customers under this rate schedule.
2. Contract: Service under this schedule is provided under a five-year agreement.
3. Start Date: The start date of the incentive rate period shall commence within
24 months from the date of execution of the contract for service and shall be
designated by the customerwithin the agreement.
4. Metering: Separate electric metering for new or additional load may be required if,
in PG&E's sole opinion, it is necessaryto provide service underthis schedule. The
customer will be responsible for any costs associated with providing separate
electric metering.
5. Limitations of Rate Limiters: Average rate limiters may apply to the customer's
bill under Schedule E-19 or E-20. The level of rate limiterswill not be reduced by
this schedule.
6. Conservation: in order to be eligiblefor this schedule, customers must allow
PG&E to conduct a site inspection for the purpose of making applicable
conservation options availableto customers. PG&E will advise all customers of a
range of cost-effective conservation options on a site-specific basis.
7. "But For" Test: In order to be eligible for this schedule, the customer must sign
an affidavit, attesting to the fact that "but for' this incentive rate, either on its own or
in combination with a package of incentives made available to the customer from
other sources, the customer would not have: (i) located operations or added load
within the State of California or (ii) retained load within the State of California.
Advice Letter No. 2810 -E-A
Decision No. 05-11-005
i11101W
Issued by
Thomas E. Bottorff
Senior Vice President
Regulatory Relations
24807-E
23918-E
(T)
Date Filed April 14.2006
Effective May 1.2006
Resolution No.
ECONOMIC DEVEI LST SE ICE
APPLICABILITY
This service is applicable to any new customer whose monthly maximum demand is expected to
exceed 100 kW for 3 months out of a consecutive 12-monthperiod or to any existing customer
whose monthly maximum demand is expected to increase by 100kW for 3 months out of a
consecutive 12-monthperiod.
For the purpose of this service, a new customer is defined as a new business bringing entirely new
electric load into the City. A business that changes location within the service territory or a
business enterprise under new ownership does not qualify as a new business.
This service is not applicable to or available for resale, standby, or auxiliary service.
Qualified customers drill be eligible for any and all service discounts available to commercial
service customers including, but not limited to, the Primary/Transmission Service Discount and the
Power Factor Adjustment.
EDS DISCOUNT
The monthly bill at the commercial rate, plus or minus any adjustments incorporated in this rate
schedule or supplement hereto will be discounted as follows:
Discount: Year I
(Billing cycle I through 12)
= 25%
Year 2
(Billing cycle 13 through 24)
= 20%
Year 3
(Billing cycle 25 through 36)
= 15%
Year 4
(Billing cycle 37 through 48)
= 10%
Year 5
(Billing cycle 49 through 60)
= 5%
The Discount will end after 60 billing cycles.
In no event shall the cost of power to the customer fall below REU's average cost to supply power
to that customer.
SPECIAL CONDITIONS
The customer will be required to sign a 5 -year contract. If a customer covered under this schedule
leaves before the expiration of the contract, penalties as established in the Council policy regarding
electric incentives for economic development shall apply.
A customer wishing to avail themselves of this service must apply for service within one year of
becoming eligible or lose that eligibility.
16
CITY OF REDDING MUNICIPAL UTILITIES - SCHEDULE OF RATES
ECONOMIC DEVELOPMENT SERVICE (continued)
CHARACTER OF SERVICE
The service is characterized as single-phase or three-phase, 60 hertz, and at one standard nominal
voltage as mutually agreed by REU and the customer and subject to availability at the point of
delivery. All meter -recording equipment shall be supplied and maintained by REU. Any expense
to modify the customer's facilities to accommodate the meter -recording equipment shall be paid by
the customer.
17
® MOCI¢St0
Irrigation
District
W
Water anA F-
2003 Contract for Service
Economic Development Discount Provision
Electric Rate Schedules GS -2, GS -3, GS-TOU
Page 1 of 2
2003 Contract for Service
Economic Development Discount Provision
Electric to Schedules GS -3 GS -3, G --`SOU
(hereinafter'Customer"), for account number
Electric service to be provided under and in accordance with the District's Electric Service Rules and Economic Development
Discount Provision for Rate Schedule as such rules and Schedule now exist or may hereafter be amended or superseded. A
copy of Kate Schedule is attached hereto and by this reference incorporated herein.
Customer representsthat it is conducting a business under the North American Industrial Clarification System (NAICS) code
and has a load requirementof kilowatts. (Qualifying customers include those engaged in business classified under NAICS
codes 311111 through 422990 or 461111 through 493190 and having a minimum load requirement of 200 M)
Customer's existing baselineenergy and demand (12 months) for calculating"additional new load."
Energy Demand
Existing Baseline
Additional New Load
The District shall, at Customer's sole cost and expense, install separate electric metering equipment ("the equipment") for additional
load at Customer's location if, in the District's sole opinion, it is necessary to provide service under this Provision. Customer
understandsthat the equipmentshall be the property solely of the District, and that Customershall have no right, title, or interest
therein.
4.1 At the time of submittal of this Contract, Customer shall pay to the District Dollars
($ ) as estimated, non-refundable charge for the equipment and installation of the equipment, including all
costs of labor at the District's weighted labor rate. Upon completion of the installation, the actual costs will be
determined by the District and Customerwill receive a credit or additional billing for said costs.
42 Prior to the installation of the equipment, Customer shall take all necessary actions and precautions to ensure that the
equipment is compatible with Customer's facilities.
4.3 Customer representsthat it has the authority to, and herebydoes, grant the District the right to install the equipment and
to enter upon Customer's location at any reasonable time to install, inspect, operate, maintain, repair, replace, relocate,
or remove the equipmentwhile this Contract is in effect.
4.4 Customershall not at any time interfere or tamper with the equipment
Customer elects to enter into a five- (5-) year Contract with the District. The discount period shall commence within 12 months
following the date of execution of the Contract and shall be designated by the Customer herein.
DiscountStart Date
Discount Termination Date
Contract Start Date
Contract Termination Date
Upon completion of the third year of the Contract, Customer may elect other contract rate options available, provided qualifying
requirements are met.
Each party shall defend, indemnify and hold harmless, the other party (the "Indemnified Party"), and its directors, officers,
employees, representatives and agents, and each of them, from and against any and all liabilities, losses, damages, costs (including
attorney fees and expenses) and/or claims resulting from the death or injury to any person, including employees of either party
ast Modred January 1, Zoos.
®
Irrigation
L :-:14 1 DDmko.�i.
W
Water and Power
13.
43.
2003 Contract for Service
Economic Development Discount Provision
Electric Rate Schedules GS -2, GS -3, GS-TOU
Page 2 of 2
hereto, or damage to any properly, including the property of either party hereto, resulting from the negligence of or breach of the
obligations of the Indemnifying Party under Rate Schedule or this Contract.
Customer shall be responsible, and shall upon demand reimburse the District promptly, for any property damage, loss or detriment
suffered by the District as a director indirect result of Customeesfailure to comply with the terms of this Contract.
The District is not a guarantor of power and, notwithstanding any provision of the Economic Development Discount, the District
does not guarantee that interruptions may not occur during any period as a result of situations or dreumstances beyond the control
of the District.
Any assignment by Customer, voluntary or involuntary, of its rights under this Contract, or any rights or duties accrued hereunder,
shall be void without District's prior written consent.
This Caztract, together with applicable Electric Rate Schedule, constitutes the sole, only and entire Contract and understanding
between the parties hereto as to the subject matter hereof, and no changes, alterations or modifications hereof shall be effective
unless in writing and signed by both parties.
Date ContractApproved by the District:
'Customer
;Signature
Print Name
Title
.ast Modified January 1, 2003.
Modesto Irrigation District
Signature
Print Name
Title
General Service
New Jobs - Economic Development
Rate Schedule GS-ED2 (Closed to new customers)
I. Applicability
This rate schedule is available to full service customers only and is applicable to single or three phase service; delivered at either
the secondary or 69 kV voltage level. This schedule is available to new load from either new or expanding commercial or
industrial (C&I) customers, provided through a separate meter. For expanding C&I customers where the new load is served
through an existing meter. a base load will be established by examining the customer's twelve (12) months historical bills. The
base load shall be billed under the District's standard rate schedule. New load, consumed beyond the base load, shall be billed
under this rate schedule. In determining availability of this schedule, customers must cer:[ify to the District that they will directly
create a minimum of 250 new full-time equivalent (FTE) jobs in the greater Sacramento area, subject to verification by the
District, and must also fully participate in the District's energy efficiency programs by implementing all cost effective energy
efficiency measures. The rate shall be available for a period not to exceed 5 years and shall be subject to adjustment with normal
rate review process. Service under this scheduleis subject to time -of -use meter availability.
New load from either new or expanding commercial or industrial (C&I) customers creating more than 25 new jobs but less than
250 new FTE jobs in the greater Sacramento area, and who are taking either secondary, primary or 69 kV voltage level service,
are eligible for an incentive rate ranging between the District's 100% embedded costs and 100% marginal costs. The customer
may negotiate the level of the incentive rate, based on the number of new FTE jobs created, with District staff and all negotiated
rates are subject to Board approval.
* This rate schedule is closed to new participants effective January 1, 1998.
11. Firm Service Rate
Large C&I
Large C&I
Rate Category
GES -250
GET -250
Voltage:
Secondary
69kV
WINTER SEASON- OCTOBER I THROUGH MAY 31
Service Charge - per month per meter
$103.00
$103.00
Demand Charge ($ per kW) Per kW of maximum demand per month
51.41
$1.15
Energy Charge
On -Peak ¢/kWh
5.000
4.78¢
Off -Peak ¢/kWh
4.260
4.060
SUMMER SEASON - JUNE 1 THROUGH SEPTEMBER 30
Service Charge - Per month per meter
$103.00
$103.00
Demand Charge ($ per kW) Per kW of maximum demand per month
$1.41
$1.15
Super Peak Demand Charge($hnonthly super peak max kW)
$26.35
$22.01
Energy Charge
Super -Peak 0/kWh
5.86¢
5.51
On -Peak 0/kWh
5.000
4.78¢
OK -Peak ¢/kWh
4.26¢
4.06¢
in. ALL SEASON - JANUARY 1 Through DECEMBER 31
Minimum Charge
The sum of the Service Charge plus the following:
a. The highest demand occurring during the 12 months ended with the current month, or
b. The maximum demand that the District has made available at the customer's request, or
c. The connected load (one horsepower equals one kW for billing purposes), times the following:
Facilities Charge ($ per kW):
Per kW of maximum Demand per month
IV. Rate Option Menu
$3.45 $3.45 $3.45
(A) Energy Assistance Program for Non -Profit Agencies
A discount of 15 percent of the service charge, demand charge, energy charge or 15 percent of the minimum charge for large
general service customers directly served by the District, who are certified non-profit agencies as outlined in Sheet No. 1-EAPR-
1. The primary function shall be to provide a home (sleeping quarters) for low-income residents, who would otherwise meet the
residential Energy Assistance Program Rate guidelines defining low-income if permanently residing in a residence. Given that
the primary function is provided by the non-profit agencies, associated facilities that provide daytime services for the homeless
(e.g., personal hygiene facilities, laundry facilities, kitchen and/or dining facilities, etc.) may also qualify for the discount. At
least 75 percent of the facility square footage must be directly related to meeting these functions. In order to continue receiving
the discount an energy survey must be applied for at the time of application for this rate option and the recommended cost
effective energy efficiency measures must be implemented within six months of receiving a survey. (Continued)
SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 05-03-08 adopted March 17, 2005
Page 99
Sheet No. 1-GS-ED2-1
March 30 , 2005
General Service
New Jobs - Economic Development
Rate Schedule GS-ED2 (Closed to new customers)
(B) Standby Service Option
This option is for general service customers who operate, in whole or in part, customer -owned generator(s) on their premises and
where
1.) the output connects to the District's electrical system, and
2.) the District must stand ready to provide backup or maintenance service to replace the generator(s).
Standby Service Charge ($/kW of Contract Capacity per month)
Secondary Distribution Voltage........................................................................................................................ $5.15
Primary Distribution Voltage............................................................................................................................. $4.0')
69 kV Voltage.................................................................................. _ ------------------------.- X2.0-,
"Contract capacity" is a fixed kilowatt value determined by the rating of the generator unit. In addition to the standby service
charge, the District will continue to bill for all applicable charges under this rate schedule. These charges include customer and
facility charges, as well as demand and energy charges for District -provided power.
Optional Metered Standby Service Charge
The customer may elect to base the standby charge on actual metered generator output in relation to total site load, which may
result in a different standby billing than one based on contract capacity. This option requires the customer to pay for the
installation and monthly maintenance of special metering equipment at both the generator and the customer's SMUD meter.
This option uses a metered standby kW instead of contract capacity kW to determine the standby service charge. The formula is
as follows:
metered standby kW = (maximum site kW) - (SMUD billing kW)
xvhere:
"maximum site kW" is the highest coincident sum of the hourly generator output, if any. and the SMUD metered load
for the billing period, and
"SMUD billingkIA"' is the maximum hourly load recorded at the customermeter during the billing period.
(C) Electric Vehicle (EV) Option
Owners of licensed commercial electric vehicles (EV's) may choose to have a charging location billed under GS-TOU2.
(D) Green Pricing Options
SMUD Community Solar Option
Customers electing this premium service option will receive an additional charge for monthly energy of no less than 1 cent and
no greater than 2 cents per kWh. Contributions will be held until sufficient funds are available for construction of a solar roof top
system.
SN" Renewable Energy Option
Customers electing this premium power service will receive an additional charge for monthly energy of no less than 1/2 cent and
no greater than 2 cents per kWh. SMUD may offer up to three premium rate options representing various blends of renewable
resources within the 1/2 cent to 2 cent range. The actual prices will be published each November and will be based on the
expected above market cost of renewable resources for the upcoming year. Participation will be limited to the amount of
resources that SMUD is able to secure below the 2 cent premium limit.
V. Special Metering Charge
For customers who purchase and install communications hardware and software to transfer energy load data from their
meter/recorders to a personal computer, the District will charge a monthly service fee to cover maintenance, software support and
the annual licensing fee.
VI. Conditions
A. Type of Electric Service
Firm Service
Standard service where the District provides a continuous and sufficient supply of electricity.
B. Service Voltage Definition
The following defines the three voltage classes available. The rate shall be determined by the voltage level at which service is
taken according to the following:
a Secondary
This is the voltage class if the definition of "primary" and "69 kV" do not apply to a customer's service.
SACRAMENTO MUNICIPAL UTILITY DISTRICT Sheet No. i-GS-ED2-2
Resolution No. 05-03-08 adopted March 17,2005 March 30,2005
Page 23
General Service
New Jobs - Economic Development
Rate Schedule GS-ED2 (Closed to new customers)
h. Primary
This is the voltage class if a customer elects to accept service at a voltage level of 12 kV or 21 kV that is available in the
area and the District approves such arrangements for a customer whose monthly demand exceeds 300 kW.
c. 69 kV
This is the voltage class if a customer elects to accept service at a voltage level of 69 kV or higher that is available in the
area and the District approves such arrangements for a customer whose monthly demand exceeds 500 kW.
C. Power Factor Adjustment
Accounts with demands of 20 kW or greater may he subject to a power factor adjustment. The District, at its option, may place
VAR metering equipment to record reactive power conditions. Effective January I, 1998, when a customer's monthly power
factor fails below 95% leading or lagging, the following billing adjustment will apply:
Energy x $0.008 x ( 95 - 1)
Power Factor
Energy = the total monthly kWh for the account
Power Factor = the lesser of the customer's monthly power factor or 95%
Customers that contract with SMUD for power factor corrections will have the power factor adjustment waived for the portion
that is covered under the contract. The fee for correction per KVAR is $0.2125. KVAR = inaximum 12 month KVAR in excess
of 33% of kW.
D. Time -of -Use Billing Periods
Super -peak hours include the following:
SUMMER SEASON (ONLY) — JUNE 1 Through SEPTEMBER 30
Weekdays: Between 2:00 p.m. and 8:00 p.m.
On -peak hours include the following:
WINTER SEASON - OCTOBER 1 Through MAY 31
Weekdays: Between 12:00 noon and 10:00 P.M.
SUMMER SEASON - JUNE 1 Through SEPTEMBER 30
Weekdays: Between 12:00 noon and 2:00 p.m. and between 8:00 p.m. and 10:00 p.m
Off-peak hours include the following:
ALL SEASON—JANUARY I Through DECEMBER 31
All day on Saturdays, Sundays and the following holidays:
Martin Luther King Jr.'s Birthday
3rd Mon. in Jan.
President's Day
3rd Mon. in Feb.
Memorial Day
Last Mon. in May
Labor Day
1st Mon. in Sep.
ThanksgivingDay
4th Thu. in Nov.
New Year's Day
January 1
Lincoln's Birthday
February 12
IndependenceDay
July 4
Columbus Day
October 12
Veterans Day
November I 1
Christmas Day
December 25
and all other hours not defined as super -peak or peak
E. Billing
PRORATION OF CHARGES
BILLING Service Facilities
CIRCUMSTANCE Charge Charge BASIS OF PRORATION
Less than 27 days Relationship between the length
or more than 34 days Yes Yes of the billing period and 30 days.
Winter/Summer season overlap Yes Yes Relationship between the length
of the billing period and the number
of days winter and summer.
Meter reading for service rendered in accordance with this rate will not be combined for billing purposes unless the convenience
of the District is served thereby.
(End)
SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 05-03-08 adopted March 17, 2005
Page 24
Sheet No. 1-GS-ED2-3
March 30,2005
General Service
Temperature -Dependent Pricing/Eco nomic Retention
Rate Schedule GS -TDP (Closed to new customers)
1. Applicability
This rate schedule is closed to new participants effective January 1,1998,
Applicable to single or three-phase service, delivered at 69 kV voltage level. This schedule was available to new or existing
commercial or industrial customers. The rate paid by the customer shall vary depending on the maximum forecasted temperature
during the summer season (June through September). The District is utilizing temperature -dependent pricing as an additional rate
option for economic retention. Retaining existing customers benefits the entire District by retaining the customer's contribution
to the District's fixed costs.
To be eligible for this schedule, customers must have met the following requirements:
(1) certify to the District that serving their load has become competitive as shown through evidence of viable competitive
energy sources from relocation, self -generation, cogeneration, etc.;
(2) verify that electricity costs are at least 10% of their variable production costs;
(3) agree to remain a full -requirements District customer for a minimum period of five (5) years. If the customer chooses to
bypass the District before the five (5) year period has expired, the customer shall reimburse the District for all cumulative
savings received under the temperature -dependent pricing rate compared to the standard rate. The customer may elect to
terminate District service after four (4) years, with a one (I) year advance notification, without penalty.
Participation in the temperature -dependent pricing rate shall be at the sole discretion of the District. Customers taking service
under this rate schedule must agree to remain on the rate for a minimum of four (4) consecutive months.
Service under this schedule is subject to availability of equipment necessary to monitor hourly loads and communicate maximum
forecasted temperatures.
H. Firm Service Rate
Rate Category:
GDT_99
Voltage Level:
69kV
WINTER SEASON
Service Charge
$225.00
Facilities Charge (per 12 months max kW or installed capacity)
$0.45
Energy Charge
On -Peak Period 0/0 A1
7.312
off-peak period 0/kWh
5.12¢
SUMMER SEASON
Service Charge
$225.00
Facilities Charge (per 12 months max kW or installed capacity)
$0.45
TDP Demand Charge ($/kW):
Per kW of maximum demand during Super -Peak Period
per day if forecasted daily maximum temperature (T) for the
following day is:
"Heat Storm" if T>= 100° for 2 or more consecutive days: or
54.50
"Extremely Hot" if T >= 100° for a single day: or
$4.25
"Very Hot" if 100"> T > 95": or
$0.75
"Hot" if 95">= T> 90°; or
No Charge
"Moderate/Mild" if T <= 90°
No Charge
Energy Charge (0 per kWh) -
Super -Peak 0/kWh
10.134
On -Peak 0/kWh
8.844
Off -Peak ¢/kWh
6.560
The TDP Demand Charge varies depending on the forecasted maximum temperature, based on a mutually agreed upon weather
forecast source for the Sacramento area, for the following day.
MINIMUM DEMAND CHARGE DAY
A "Minimum Demand Charge Day" may be declared on days when the forecast maximum daily temperature is greater than 95°F
and less than 50 percent of SMUD's available peaking resources are being utilized. On a "Minimum Demand Charge Day" the
super -peak demand charge shall be equal to the demand charge for a "Hot" day (No Charge).
III. Rate Option Menu
(A) Green Pricing Options
SMUD Community Solar Option
Customers electing this premium service option will receive an additional charge for monthly energy of no less than 10 and no
greater than 20 per kWh. Contributions will be held until sufficient funds are available for construction of a solar roof top system.
SMUD Renewable Energy Option
SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 05-03-08 adopted Ntatch 17,2005
Page 25
Sheet No. 1 -GS -TDP -1
March 30, 2005
0
Ina
I 0
o� �f •
Customers electing this premium power service will receive an additional charge for monthly energy of no less than I and no
greater than 20 per kWh. SMLIDmay offer up to three premium rate options representing various blends of renewable resources
within the 1/2¢ to 20 range. The actual prices will be published each November and will be based on the expected above market
cost of renewable resources for the upcoming year. Participation will be limited to the amount of resources that SMUD is able to
secure below the U premium limit.
Special Metering Charge
For customers who purchase and install communications hardware and software to transfer energy load data from their
meter/recorders to a personal computer, the District will charge a monthly service fee to cover maintenance. software support and
the annual licensing fee.
Conditions
1. Service Voltage Definition
The following defines the three voltage classes available. The rate shall be determined by the voltage level at which service
is taken according to the following:
a. Secondary
This is the voltage class if the definition of "primary" and "69 kV" do not apply to a customer's service.
b. Primary
This is the voltage class if a customer elects to accept service at a voltage level of 12 kV or 21 kV that is available in
the area and the District approves such arrangements for a custonier whose monthly demand exceeds 3 0 kW.
c. 69kV
This is the voltage class if a customer elects to accept service at a voltage level of 69 kV or higher that is available in
the area and the District approves such arrangements for a customer whose monthly demand exceeds 500 kW.
2. Power Factor Adjustment
Accounts with demands of 20 kW or greater may be subject to a power factor adjustment. The District, t its option, may
place VAR metering equipment to record reactive power conditions. Effective January 1, 1998, when a customer's monthly
power factor falls below 95% leading or lagging, the following billing adjustment will apply:
Energy x $0.008 x ( 95% - 1)
Power Factor
Enerp = the total monthly kVvh for the account
Power Factor = the lesser of the customer's monthly power factor or 95%
Customers that contract with SMUD for power factor corrections will have the power factor adjustment waived for
the portion that is covered under the contract.
The fee for correction per KVAR............................................... ............................. ............................................... $0.2125
KVAR = maximum 12 month KVAR in excess of 33% of kW.
Time -of -Use Billing Periods
Super -peak hours include the following:
SUMMER SEASON (ONLY) — J_IJ E I Through SEPTEMBER 30
Weekdays: Between 2:00 p.m. and 8:00 p.m.
On -peak hours include the following:
SUMMER SEASON - JUNE I Through SEPTEMBER 30
Weekdays: Between 12:00 noon and 2:00 p.m. and between 8:00 p.m. and 10:00 p.m.
WINTER SEASON - OCTOBER 1 Through MAY 31
Weekdays: Between 1.2:00 noon and 10:00 p.m.
Off-peak hours include the following:
ALL SEASON - JANUARY 1 Through DECEMBER 31
All day on Saturdays, Sundays and the following holidays:
Martin Luther King Jr.'s Birthday 3rd Mon. in Jan.
Presidents Day
Memorial Day
Labor Day
Thanksgiving Day
New Year's Day
Lincoln'sBirthday
Independence Day
Columbus Day
Veterans Day
Christmas Day
3rd Mon. in Feb.
Last Mon. in May
1st Mon. in Sep.
4th Thu. in Nov.
January 1
February 12
July 4
October 12
November 11
December 25
and all other hours not defined as super -peak or on -peak.
SACRAMENTO MUNICIPAL UTILITY DISTRICT Sheet No. 1 -GS-TDP-2
Resolution No. 05-03-08adopted March 17, 2005 March 30,2005
Page 26
General Service
Temperature -Dependent Pricing/Economic Retention
Rate Schedule GS -TDP (Closed to new customers)
A. Billing PRORATION OF CHARGES
BILLING Service Facilities
CIRCUMSTANCE Charge Charge. BASIS OF PRORATION
Less than 27 days Relationship between the length
or more than 34 days Yes Yes of the billing period and 30 days.
Winter/Summer season overlap Yes Yes Relationship between the length of the billing
period and the number of days winter and summer.
Meter reading for service rendered in accordance with this rate M11 not be combined for billing purposes unless the
convenience of the District is served thereby.
Meter reading far service rendered in accordance with this rate will not be combined for billing purposes unless the District
is unable to provide service through a single point of delivery.
The District will provide, install and maintain a load profile recorder at the customer's meter in order for the District to
determine the customer's daily maximum demand. The customer shall provide a dedicated telephone line at the meter
location in order for the District to read to recorder.
B. Notiffieation of Minimum Demand Charge Day
It is the responsibility of the customer to communicate with the District to determine whether the SMUD system operator
has declared a "Minimum Demand Charge Day." The District reserves the right to cancel a "Minimum Demand Charge
Day" if necessary. Any such update will be provided to the customer no later than one hour prior to application of the super -
peak demand charge.
SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 05-03-08 adopted March 17,2005
Page 27
(End)
Sheet No. 1 -GS -TDP -3
March 30,2005
APPENDIX B
SOUTHERN CALIFORNIA ECONOMIC DEVELOPMENT
RATES
uxni�x+ ruanavw
EDISON
Southern California Edison
Rosemead, California
Original Cal. PUC Sheet No. 39107-E
Cancelling Gal. PUC Sheet No.
Schedule EDR-A Sheet 1
ECONOMIC DEVELOPMENT RATE -ATTRACTION
APPLICABILITY
Applicable to new customers who locate their facilities at a site within SCE's service territory that results
in SCE served load of at least 200 kW. Such load must be new to California. Customers will be eligible
for service under this Schedule only f the discounts offered under this Schedule were necessary in the
customer's decision to locate its new load in California- Additionally, the customer must demonstrate to
the satisfaction of SCE that the load subject to this Schedule is new to California. The customer must
sign an affidavit attesting to the fact that "but for" this discount, either on its own or in combination with a
package of incentives made available to the customer from other sources, the customer would not have
located operations within the State of California. This Schedule is not applicable to state and local
government customers or residential customers. This Schedule will close to new participants on
December 32, 2009, and all Agreements must be executed prior to this date. The total accumulated
contract demand on Schedules EDR A, EDR-E, and EDR-R, at any point in time for active agreements,
shall not exceed 100 MW (megawatts).
Customers must be served under a General Service rate schedule.
Customers subject to the Environmental Pricing Credit Agreement may not take service under this
Schedule.
Customers sewed under this Schedule are not eligible for service under Schedule EDR-E or Schedule
EDR-R.
TERRITORY
Within the entire territory served.
RATES
Unless provided herein, or in the Economic Development Rate-AttractionAgreement, all charges and
provisions of the customer's Otherwise Applicable Tariff (OAT) shall apply, except that the customer's
total bill shall be subject to discount as follows:
Year 1 25%
Year 2 20%
Year 3 15%
Year 4 10%
Year 5 5%
(Continued)
(To be inserted by utility)
Issued by (To be inserted by Cal. PUC)
Advice 1918 -E-A
John R. Fielder Date Filed Oct 3, 2005
Decision 05-09-018
Senior Vice President Effective Oct 3, 2005
,cs
Resolution
EDISON
Southern California Edison
Rosemead, California
Continued
Original Cal. PUC Sheet No. 39108-E
Cancelling Cal. PUC Sheet No.
Schedule EDR-A Sheet2
ECONOMIC DEVELOPMENTRATE-ATTRACTION
(Continued)
For Bundled Service customers, the total WK includes charges for Delivery Service and Generation,
as indicated in the Rates Section of the customer's OAT. For purposes of calculating the discount
applicable to Direct Access (DA) and Community Choice Aggregation Service (CCA Service)
customers, the total bill includes charges for Delivery Service, as indicated in the Rates Section of
the customer's OAT, in addition to what the generation charges of the customer's OAT would have
been had the customer been a Bundled Service customer. Such generation charges will be used
as a proxy in order to cal all the discount.
The average rate after application of the discount under this Schedule cannot be less than SCE's
marginal cast of service. The sum of the revenue collected by SCE from the customer, exclusive of
any additional applicable taxes, shall not fall below a floor price equal to SCE's total customer -
specific marginal cost of service, which includes distribution, transmission, and generation marginal
costs for bundled -service customers. Marginal costs in effect at the time of each Agreement
execution will be used for this calculation, and used throughout the term of the Agreement. The
revenues from each customer will be reviewed to ensure that they equal or exceed SCE's marginal
cost of service, up to the OAT revenues the customer would have paid if it had not received the
discount.
Otherwise Applicable Tariff: The customer's regularly Sled rate schedule under which service is
rendered.
2. Agreement: The customer must sign the Economic Development Rate -Attraction Agreement
(Form 14-758) and the Affidavit for Economic Development Rates (Form 14-772) in order to take
service underthis Schedule.
3' Start Date: The start date of the discount period shall commencewithin 24 monthsfrom the date
of execution of the Agreement and Affidavit and shall be designated by the customer within the
Agreement.
4. Conservation: In order to be eligible for this Schedule, a customer must allow SCE to conduct a
energy audit for the purpose of making cost-effective energy efficiency and demand side
management options available to the customer.
(To be inserted by utility)
Advice 1918 -E-A
Decision 05-09-018
nued
Issued by (To be inserted by Cal. PUC)
John R. Fielder Date Filed Oct 3, 2005
Senior Vice President Effective Oct 3, 2005
Resolution
EDISON
S_outh_em_Gafifomia Edison Original Cal. PUC Sheet No. 39109-E
Rosemead, California Cancelling Cal. PUC Sheet No.
Schedule EDR-A Sheet 3
ECONOMIC DEVELOPMENT RATE -ATTRACTION
5- SGE wW consuft wAh e of Caffemia Bansr� kNestrent SerAms (CaIBIS), or its
successor entity, under the supervisim of the Cardbmia Business Transportation and Housing
Agencyin order to determine qualified customers. Approval by CaJBIS is necessary, but
not sufficient, for determining eligibility. SCE reserves the right for final review and eligibility
determination, and service under this Schedule shall be offered at the discretion of SCE.
However, arry customer rejection may be subject to review by the Commission pursuant to the
complaint procedure specified in Commission Decision (D) 05-OM18.
6. All customers must agree to maintain a minimum level of load, as defined in Form 14-758, for five
years from the date service is first rendered as set forth in the Economic Development Rate -
Attraction Agreement
(To be inserted by utility)
Advice 1916 -E-A
Decision 05-09-018
3CQ
(Continued)
Issued by (To be inserted by Cal . PUC)
John R. Fielder Date Filed Oct 3, 2005
Senior Vice President Effective -Oct 3, 2005
Resolution
City of Riverside
Public Utilities Department
SCHEDULE ED
ECONOMIC DEVELOPMENT RATES
Applicability
Applicable to services for all types cf uses, including lighting, power and heating, alone or
combined.
This Schedule is applicable to all or part of the services provided to New Customers and
to Expanded Load Customers that:
A. Are commercial or industrial end-use customers, and
B. Are recommended for these Schedule ED rates by the Riverside Economic
Development Corporation, which recommendation shall be based upon standards
and guidelines established and adopted by the Riverside Board of Public Utilities
and approved by the Riverside City Council; and
C. Satisfy the following criteria as either a New Customer or Expanded Load Customer:
1. A New Customer shall be a customer locating in Riverside's service territory
within one year prior to the effective date of the Economic Development Rate
Agreement that is:
a. a research, development or technology business with a Standard
Industrial Classification (SIC) Code of 7371, 8711, 8713, or 8731
through 8734, Industry Group 357,367,381,382,384, and 781; or
b. a new customerwith a projected minimum monthly demand of at least
500 kW.
2. An Expanded Load Customer shall be an existing customer of Riversidethat
is adding new load to Riverside by the greater of twenty percent (20%) of the
existing customer's Base Period Usage or 50 kW. The ED rate will be
applied only to the expanded load as determined in Section 6, Base Usage
Period:
a. at its current site; or
b. at a new site within Riverside to which it is relocating operations that
are substantially similar to those at the old site; or
Adopted by Board of Public Utilities: November 7, 2003
Approved by City Council: November25,2003
Effective Date: December 1, 2003
City cf Riverside
Public Utilities Department
Schedule ED — Targeted Economic Development Rates
Territory:
-2-
c. a new site within Riverside with operations that the Utility determines
are substantially similar to those of the existing site(s), and that is in
addition to customer's existing site(s).
City of Riverside
Rates:
Except as provided herein, or in the Economic Development Rate Agreement, all charges
and provisions of the customer's Otherwise Applicable Tariff shall apply. The bundled
charges or the total of the unbundled charges under the customer's Otherwise Applicable
Tariff shall be reduced as follows:
Year 1 —40%
Year 2 — 20%
Year 3 - 0%
Year 4 - 0%
Rates underthis Schedule shall be subjectto a Minimum Charge computed as set forth in
the Economic Development Rate Agreement. Rates are guaranteed for the third and fourth
years of the contract. The rate for third year may not increase more than 105% of the year
one published tariff and the fourth year may not increase more than 110% of the year one
published tariff.
Special Conditions:
Term:
Economic Development Rate Agreements entered into under this Schedule
shall be for a single four-yearterm.
2. Otherwise Applicable Tariff:
The Utility's published electric rate schedule which otherwise applies to Customer
for service provided under this Schedule, provided however Schedule CS shall
not be a Customer's Otherwise Applicable Tariff.
Adopted by Board cf Public Utilities: November 7, 2003
Approved by City Council: November 25,2003
Effective Date: December 1, 2003
City of Riverside
Public Utilities Department
Schedule ED ®- Targeted Economic Development Rates
mnnlg1 ' s • s
_3 -
Application of this Schedule shall be subject to approval of the Riverside Economic
Development Corporation (EDC). EDC's approval shall be based upon standards
and guidelines established and adopted by resolution of the Riverside Board of
Public Utilities and approved by resolution of the City Council. The standards and
guidelines: 1) shall consider such factors as job creation, tax base increment, land
use, City's business base, location of new load within a Riverside Redevelopment
Project Area or Enterprise Zone, and City's overall economic strategy; and 2) shall
provide adequate protection against arbitrary application of this Schedule.
EDC's decision to approve or disapprove application of this Schedule to a customer
shall be appealable to the Riverside City Council, not later than thirty days after
Riverside notifies the customer of EDC's decision. Customer shall file a written
appeal with the Director setting forth the grounds on which the appeal is based. The
Riverside City Council shall consider the appeal within thirty (30) days after receipt
of the written appeal, and shall affirm, modify or reverse the decision of the EDC.
4. Agreement:
The customer must sign the standard Riverside Economic Development Rate
Agreement in order for the rates under this Schedule to be applicable. In addition
to the other terms of this Schedule, the Economic Development Rate Agreement
shall require the customer to reimburse Riverside for all rate reductions received
under this Schedule, if the customer fails to maintain the required minimum load
during the four-year term of the Agreement.
5. Minimum Load:
All customers must agree to maintain a minimum level of load for four -years from
the date service is first rendered under this Schedule as set forth in the Economic
Development Rate Agreement.
6. Ease Period Usage:
Base Period Usage shall be established and agreed to in the Economic
Development Rate Agreement for Expanded Load Customers. Base Period Usage
shall be the average monthly energy use and demand for the customer during the
last three years. Expanded load qualifying for the rate under this Schedule shall be
Schedule ED — Targeted Economic Development Rates
Adopted by Board of Public Utilities: November 7, 2003
Approved by City Council: November25,2003
Effective Date: December 1, 2003
-4-
City of Riverside
Public Utilities Department
measured as the difference between the new monthly, meter documented energy
use and demand, and Base Period Usage.
7. State Mandated Public Benefits Charge:
The rates in Customer's Otherwise Applicable Tariff and under this Schedule are
subject to a surcharge as adopted via City Council Resolution No. 19203, and such
surcharge as is in effect from time to time. The applicable Public Benefits Charge
will be applied to the Customer's total eiectricity usage charges for the applicable
billing period.
8. Miscellaneous Fees and Charges:
Rates charged pursuant to this Schedule shall be subject to any Energy Users
Taxes, Utility Users Taxes and any other governmental taxes, duties, or fees which
are applicable to Electric Service provided to Customer by Riverside.
9. Competition Transition Charge:
Any Competition Transition Charge (CTC) established and adopted by Riverside
shall not apply to load and associated kilowatt-hours provided under this Schedule.
10. Expanded Load:
Expanded Load Customers applying for this rate must demonstrate to the
satisfaction cf the Utility that the expanded load is new to Riverside.
11. Agreement Deadline:
The start date of the discount rate agreement shall commence within 24 months
from the date cf the Economic Development Corporation's approval or become null
and void. The start date shall coincide with the customer's normal billing cycle.
Adopted by Board cf Public Utilities: November 7, 2003
Approved by City Council: November25,2003
Effective Date: December 1,2003
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
APPLICABILITY
ELECTRIC RATES, RULES
AND REGULATIONS
SCHEDULE ED
ECONOMIC DEVELOPMENT- CITYWIDE
Page No, 2.12.1
This schedule is closed to new customers as of August 1,2006. The discount for existing customers will sunset
on July 31, 2007. Customers may apply for a similar discounted program under Developmental Schedule
EDBR if they qualify under the stated requirements.
For purposes of business development, applicable Citywide to single and three phase general service, including
lighting and power, for operations not involved in selling or providing goods and services directly to the general
public. Applicable to new customers having load requirements of 200 kW or greater, and to the facilities of existing
customers whose expanding operations have incremental load requirements of 200 kW or greater at new or existing
locations.
RATES
A discount from Schedule GS -2 applied to the demand and energy charges only as follows:
Efficiency Range Discount
Less than 60%
0.0%
60%-64%
5.0%
65%-69%
5.R
70%- 74%
6.0%
75%-79%
6.5%
80%- 84%
7.0%
85% or greater
7.5%
The efficiency Range will be calculated as the actual energy consumption in the billing period divided by the result
of multiplying the maximum demand in the billing period by the number of days in the billing period by 24 hours,
with the final result expressed as a percentage.
Efficiency Range % = actual energy consumption
max billing demand x days in period x 24
SPECIAL CONDITIONS
A. Eligible customers will implement all cost effective energy efficiency measures through programs
sponsored by the Department.
B. Unless otherwise provided for in this Schedule, all of the terms and conditions of the Otherwise Applicable
Tariff apply. The Otherwise Applicable Tariff is Schedule GS -2.
(Continued)
ISSUED BY: Effective: 08-08-06 by ResolutionNo.: 2006R-188 Dated: 08-08-06
Marcie L. Edwards Superseding Resolution No.: 95R-64 Dated: 05-02-95
General Manager
CITY OF ANAHEIM
Utilities Financial Services
201 S. Anaheim Blvd.
Anaheim, CA 92805
ELECTRIC RATES, RULES
AND REGULATIONS
SCHEDULE ED
ECONOMIC DEVELOPMENT- CITYWIDE
Page No. 2.12.2
C. For customers locating in the Anaheim Canyon Industrial Area, as defined by the North East Area Specific
Plan, and signing development agreements with the Community Development Department, the discount
percentages specified above will be doubled. If, during the Term of Agreement, any governmental agency,
authority, court or private entity takes an action which materially impacts the City's ability to recover its
cost raider Schedule GS -2, less the appropriate Efficiency Range Discouat, the City may renegotiate with
the customer the rate for electric service set forth in this schedule.
D. For existing customers adding 200 kW or more in new load, the discount applies only to the new load,
which must be served wider a separate service, or, at the Department's option, submetered. The customer
shall supply, at no expense to the Department, any metering equipment necessary as well as a location
suitable to the Department for meters and associated equipment used for billing.
ISSUED BY: Effective: 05-15-95 by Resolution No.: 95R-64 Dated: 05-02-95
Edward K. Aghjayan SupersedingResolutionNo.: None Dated: None
General Manager
SMUD had two ED Rates including a new j ob rate and a temperature dependent rate.
Both of these rates are closed to new customers. Since they are somewhat unique, and
were likely developed for individual customers a brief discussion follows. Both of these
rates are included in Appendix A.
The new j obs rate (GS-ED2) provided for a discount to employers who added 250 or
more j obs. Although the amount of the discount is not clear from the schedule, it appears
that the discount offered essentially covered SMUD's embedded cost of generation,
transmission and distribution. This rate required a 5 year contract.
Customers adding between 25 and 250 jobs were able to negotiate a rate (GS -TDP)
between SMUD's embedded cost and its marginal cost. This was a unique rate that was
dependent upon the temperature within the SMUD service area. It provided for different
prices depending upon the local temperature. The breakdown of the rate was based upon
the following temperature recordings (T = Temperature):
• >= 100 degrees for 2 days or more
• >= 100 degrees forl day
• 100 degrees>T>95 degrees
• 95 degrees>T>90 degrees
* T<90 degrees
Southern California Economic Development Rates
ED Rates for representative southern California utilities were obtained from Southern
California Edison Company as well as the Cities of Anaheim and Riverside. Table 1.2
contains a summary of the ED Rates for southern Californiautilities. The rates for SCE
and Riverside are still active. Anaheim's rate was terminated on August 1,2006. Copies
of these rates are included in Appendix B
Table 1.2
Southern California ED Rate Summary
The SCE is essentially the same as PG&E's. The only difference is that it is not subject
to the cap of 100 MW. Riverside's ED Rate is unique in that it is deeply discounted in
year 1(40 percent). The year 2 discount is 20 percent. ED Rates in years 3 and 4 are not
discounted; however they cannot increase by more than 105 percent and 110 percent
respectively over the year 1 non -discounted rate. In order t be eligible new customers
must add 500 Kw of new load. Existing customers need to add 20 percent to their load or
50 Kw.
Anaheim's ED Rate was unique in that it was tied to the applicant's load factor. The
larger the load factor the greater the discount. Discounts were also doubled for customers
who located in the Anaheim Canyon Redevelopment Area.
3 Includes a 5 yr. contract and customer must maintain minimum load.
4 Includes a 4 yr. contract with approval of Riverside Economic Development Corporation, Riverside
Board of Public Utilities, and Riverside City Council. New load must exceed 500kw. Existing load must
increase 20% or 50 Kw. Rates in year 3 cannot increase by more than 105% from the year 1 non -
discounted level. Rates in year 4 cannot increase by more than 110% from the year I non -discounted level.
e Discounts doubled in redevelopment area. Must add 200 Kw new load. Rate closed as of August 1,
2006.
SCE
Riverside
Anaheim
Incentive
Efficiency
Yr 1
25%
40%
<60%
0.0%
Yr 2
20%
20%
60-64%
5.0%
Yr 3
15%
0%
65-70%
5.5%
Yr 4
10%
0%
71-74%
6.0%
Yr 5
5%
1 NA
75-79%
7.0%
>80%
7.5%
Limiter
Marginal Cost
NA
NA
Cap
NA
NA
NA
Conditions
3
4
s
The SCE is essentially the same as PG&E's. The only difference is that it is not subject
to the cap of 100 MW. Riverside's ED Rate is unique in that it is deeply discounted in
year 1(40 percent). The year 2 discount is 20 percent. ED Rates in years 3 and 4 are not
discounted; however they cannot increase by more than 105 percent and 110 percent
respectively over the year 1 non -discounted rate. In order t be eligible new customers
must add 500 Kw of new load. Existing customers need to add 20 percent to their load or
50 Kw.
Anaheim's ED Rate was unique in that it was tied to the applicant's load factor. The
larger the load factor the greater the discount. Discounts were also doubled for customers
who located in the Anaheim Canyon Redevelopment Area.
3 Includes a 5 yr. contract and customer must maintain minimum load.
4 Includes a 4 yr. contract with approval of Riverside Economic Development Corporation, Riverside
Board of Public Utilities, and Riverside City Council. New load must exceed 500kw. Existing load must
increase 20% or 50 Kw. Rates in year 3 cannot increase by more than 105% from the year 1 non -
discounted level. Rates in year 4 cannot increase by more than 110% from the year I non -discounted level.
e Discounts doubled in redevelopment area. Must add 200 Kw new load. Rate closed as of August 1,
2006.
Economic Development
Electric Discount
City Council
January 13, 2009
Background
There has been interest by industrial customers
and the Chamber of Commerce for an economic
development rate (EDR) discount for electric
,* Presently there is an EDR as part of I-1 rate
— 10% discount on incremental load (200 KW minimum)
for 12 months
Interestingly, G5 and I-1 rates include an
Economic Stimulus Rate Credit of 1.2940/KWH
and 0.41 O/KWH, respectively
2
Past Lodi ED Rates
(July 1, 1996 —June 30, 2000)
Cherokee Lane Economic Incentive Discount
— Declining annual discounts of 20,15,10 and 5 percent
Commercial Development Incentive
Discount
— 10% discount years 1 thru 3 and 5% in final year
Core Area Economic Incentive Discount
— Declining annual discounts of 40,30,20 and 10
percent
— Applicable in core area of the Central City
Revitalization Area
Note: The utility also signed special discount
contracts with at least one large entity.
K
Report
• In late 2006, MBMC retained to assist
EUD in examining economic development
— Summarize regional econ dev rates
— Establish parameters for possible Lodi
incentives
• Report highlighted areas for consideration
when developing an EDR
4
Northern CA
• PG&E, Alameda and Redding have 5 year
EDR's that start at 25% discount and
reduce 5% per year
• Modesto Irrigation District has a 5 year
EDR that is at negotiated discounts
• SMUD had 5 year EDR based on jobs
creation (25 to 250+) at an " embedded
cost" rate I AdW
6i
Southern CA
• SCE has a 5 year EDR similar to PG&E
• Riverside has a 2 year EDR with 40%
discount in first year and 20% in second
year
• Anaheim's EDR gave discounts ranging
from 5% to 7.5% based on "load factor"
with a minimum of 60%
C.1
Key Elements of EDR
1. Term & Sunset
2. Applicability
3. Amount of discount
4. Minimum new load size?
5. Minimum load factor?
6. Job discount?
7. Energy Efficiency?
8. Geographic Limitation?
9. Penalties?
10. Other
7
Lodi Draft EDR
3 year term
• New or expanded "industrial" load only (no retail)
10% base discount (does not apply to
surcharges)
.
.
Extra 5% "job creations" discount (minimum 25
jobs for G2 and 50 jobs otherwise)
Minimum load addition of 50 to 200KVV
depending on rate class
45% minimum load factor
,* June 30, 2010 sunset
E:1
1. Term & Sunset
• How long should the EDR discount be
applied?
— One to five years seems to be normal range
• How long should the EDR schedule be in
place?
— Can be extended and/or modified
upon sunset
• Proposal: 3 year term and June 30, 2010 sunset
2. Applicability
• To what rate classes and to what types of
business (new loads) should the EDR
apply?
— Most EDR's are limited to industrial -type loads
(that provided jobs and tax base)
— Should EDR apply to new/expanded loads
only
— Is separate metering required?
• Proposal: Applies to G2 and larger customers, expanded and/or new loads
only. Industrial only, i.e. no retail or warehousing. Separate metering required.
10
3. Amount of Discount
• Should discount level be flat or vary year-to-
year?
—Some use declining annual discounts of
25,Or) ,15,10,and 5%
• What portion of electric charges does
the discount apply?
• Are there any limitations based on electric cost
etc.
• Proposal: Ten percent discount applied to all electric bill
elements except the Solar Surcharge and State Energy Tax
11
Some Numbers
Rate
Non Energy
Revenue (%)'
G2
9
G3
14
G4
16
G5
10
1-1
12
Average
10.5%
* FY 2008. Excludes surcharge revenue
12
More Numbers
Rate
Average Revenue*
(¢/kwh)
G2
15.87
G3
14.87
G4
13.83
G5
11.30
-1
10.12
Average
13.57 ¢/kwh
* FY 2008. Excludes surcharge revenue
13
4. New Load Size
• Should there be minimum new load size
for EDR rate?
— Many utilities have 200 to 50OKW minimums
• Penalty for reducing load below minimum
after start?
• Proposal: Minimum load of 50KW for G2/G3, 10OKW for G4 and 20OKW
for G5/11. Monitored monthly - no discount if below minimum
14
5. Load Factor
• Load factor is a measure of the percent of
time a customer uses the " capacity"
reserved for it
— Higher load factor is beneficial to utility since it
implies more consumption in off-peak periods
• Many utilities require a minimum of 50
percent or more
• Proposal: Minimum of 45% load factor. Monitored monthly - no
discount if below minimum
15
6. Jobs Discount
• Should there be a minimum jobs
requirement to qualify for EDR?
• If yes, should type of jobs or pay level be a
factor?
• Should a supplementary discount
apply to new jobs?
►a
• Proposal: Extra discount of 5% for minimum of 25 new jobs (G2) or 50 new
jobs (all larger classes). Monitored monthly — no discount if below minimum
16
7. Energy Eff'ic'iency
• California law imposes minimum e
efficiency levels (Title 24)
• Should EUD require an enhanced
efficiency level or perhaps special
certifications such as LEED? Sol
• If yes, is this a minimum requirement or
should an additional discount apply?
• Proposal: No energy efficiency requirement beyond Title 24 is
required or incented
17
8. Geographic Limits
• Should the EDR apply only to certain
areas of Lodi
— Examples include designated redevelopment
areas, enterprise zone, central business
district, Cherokee Lane etc.
• If yes, is this a minimum requirement or
should an additional discount apply
• Proposal: No geographical requirements or rate enhancements
are proposed
18
9. Penalties
• What should the penalties/remedies be if a
customer fails to meet minimum EDR
requirements during term of discount
— i.e. minimum size, jobs, load factor etc.
• Some utilities require payback of EDR
discounts if new load is eliminated or
business closes/relocates
• Proposal: Failure to meet any minimum requirements in any
month shall result in no discount for that month
19
10. Other
"But for" Test — PG&E for example requires
customers to certify that "but for" EDR discounts
they would not add new load
Separate metering — Is separate metering
required for expanded EDR load?
Are discounts or waivers
extension costs (i.e. new
charges including EUD's
Transmission Fee)?
offered for line
electric facilities
Substation &
• Proposal: Separate metering is required for load expansions at
an existing customer site.
all
Conclusion
• Many electric utilities have established
economic development rates (EDR)
• EUD's improved financial condition makes
consideration of an EDR possible
• There are a variety of factors to be
considered when developing and EDR
• EUD has prepared a draft proposal for
discussion purposes
21
Questions/comments?
22
il_01�
N
III
r. fes. �.•.. ,•�•• •�a ��, } 'o