HomeMy WebLinkAboutAgenda Report - April 18, 2001 G-03 PHa
a
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Public Hearing to introduce ordinance for the implementation of an Electric Market
Cost Adjustment Policy and Mechanism
MEETING DATE: April 18, 2001
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve introduction of ordinance amending
Lodi Municipal Code Chapter 13.20 Electrical Service, Article III
Rates, by adding section 13.20.175 Schedule Market Cost
Adjustment effective on applicable utility billings prepared by City of
Lodi on or after June 1, 2001.
BACKGROUND INFORMATION: The City of Lodi's historical power purchase strategy has been to be
in a partial deficit energy position in the winter season. This strategic
position has been very successful because the price for power on
the spot and short-term market was generally very low during ' this period. The gas and electric energy
market has seen dramatic volatility in recent months and has caused the City of Lodi to take various
mitigation strategies. The nature of the market situation has caused the cost of purchased energy to be
significantly higher than originally budgeted, although without the mitigation strategies would have been
much more severe. It is anticipated that the market will improve, but should remain volatile for at least two
more years.
The Market Cost Adjustment will allow the Electric Utility Department to better follow the market and to
capture both recent under -collections and future costs. This mechanism would be adjusted on a quarterly
basis and would utilize an approved formula. The formula will reflect a true up of prior costs and a rolling
twelve-month projection of purchased power costs. The mechanism is designed to minimize spikes to the
adjustment rates. It is anticipated that the adjustment may go up or down depending on the various short
and long-range strategies the City of Lodi elects to employ and the state of the power market at the that
time.
FUNDING: Not Applicable
Alan N. Vallow
Electric Utility Director
ANV/Ist
C: City Attorney
APPROVED:
�H. Dixon Flynn - City Manager
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
SCHEDULE MCA
MARKET COST ADJUSTMENT
APPLICABILITY:
When in effect, this schedule is applicable to all areas served by the City and to all kilowatt-hours
billed under all rate schedules as defined under the special conditions of the rate schedules labeled
Purchased Power Adjustment.
PURPOSE:
Generally, power supply costs will be recovered through application of the base rates. In the event
that substantial changes in projected power supply costs occur, either increases or decreases, the
Market Cost Adjustment Billing Factor will be activated to provide for increases or decreases in the
City's charges for electric service. The Electric Utility Director shall develop and recommend a
MCA Billing Factor to be effective on a specified date for the approval of the City Council.
APPLICATION OF MARKET COST ADJUSTMENT:
When applicable, the Market Cost Adjustment Billing Factor (MCABF) for a particular rate schedule
as designated in the attached MCABF table, in cents per kWh, shall be applied to kilowatt-hours
sold on and after the effective date, and continuing thereafter until the next base rate change or
until a revision to the Market Cost Adjustment Billing Factor becomes effective. The dollar amount
to be added to or subtracted from each bill due to the Market Cost Adjustment shall be obtained by
multiplying the number of kilowatt-hours for which the bill is rendered by the applicable Market Cost
Adjustment Billing Factor.
CALCULATION OF THE POWER COST ADJUSTMENT BILLING FACTOR:
1. When the Electric Utility Director deems that substantial changes in power supply costs have
occurred relative to the costs included in base rates, the Market Cost Adjustment Billing Factor
shall be activated following the approval of the City Council.
2. The Billing Factor shall remain in effect until the next base rate change or until a revision to the
Billing Factor is necessary.
3. While the Billing Factor is activated, a Market Cost Adjustment account shall be maintained.
Entries into this account shall be:
The balance from the previous month;
b. The increase or decrease in charges for electric service billed using the applicable
Billing Factor; and
C. Any interest accruing to the account.
Effective Date June 1, 2001
MCA -112 Ordinance No.
SCHEDULE MCA
MARKET COST ADJUSTMENT
4. The MCA Billing Factor shall be designed by giving consideration to the following factors:
a. Rate stability is desirable and frequent changes in the MCA Billing Factor are
undesirable.
b. The financial integrity of the Electric Utility Department shall be maintained by applying a
MCA Billing Factor, when necessary, to ensure that the Electric Utility Department does
not overcollect or undercollect the revenue required for sound financial operation.
5. The Electric Utility Department shall furnish to the City Council a notice of any proposed
activation or change in the MCA Billing Factor. Any activation or change in the MCA Billing
Factor requires approval by the City Council.
6. The Electric Utility Department generally shall make the MCA Billing Factors effective as of the
first day of the appropriate month. Adjustments to the MCA shall be no more frequent than
quarterly and no less than semiannually.
MARKET COST ADJUSTMENT BILLING FACTOR
The Market Cost Adjustment Billing Factor by designated rate schedule,
in cents per kilowatt-hour, shall be shown in this Section. Certain classes
may have a tiered MCABF by level of mo hly consumption.
Class
Cents per
kWh
Date
Effective
EA, EE under 300 kWh
1.250
June 1, 2001
EA, EE 301 to 600 kWh
1.900
June 1, 2001
EA, EE above 600 kWh
3.000
June 1, 2001
ED, EF
0.000
June 1, 2001
EM
0.000
June 1, 2001
EL
0.000
June 1, 2001
G1
2.000
June 1, 2001
G2
2.000
June 1, 2001
G3
0.000
June 1, 2001
G4
0.000
June 1, 2001
G5 1
0.000
June 1, 2001
11
0.000
June 1, 2001
Effective Date June 1, 2001
MCA -2/2 Ordinance No.
ORDINANCE NO.
AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING
CHAPTER 13.20 ELECTRICAL SERVICE, ARTICLE III. RATES BY
ADDING SECTION 13.20.175 - SCHEDULE MCA — MARKET
COST ADJUSTMENT
BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS:
SECTION 1. Lodi Municipal Code Chapter 13.20 - Electrical Service, Article III. Rates, is hereby
amended by adding Section 13.20.175 — Schedule MCA — Market Cost Adjustment as follows:
SCHEDULE MCA — MARKET COST ADJUSTMENT
APPLICABILITY:
When in effect, this schedule is applicable to all areas served by the City and to all kilowatt-hours
billed under all rate schedules as defined under the special conditions of the rate schedules labeled
Purchased Power Adjustment.
PURPOSE:
Generally, power supply costs will be recovered through application of the base rates. In the event
that substantial changes in projected power supply costs occur, either increases or decreases, the
Market Cost Adjustment Billing Factor will be activated to provide for increases or decreases in the
City's charges for electric service. The Electric Utility Director shall develop and recommend a
MCA Billing Factor to be effective on a specified date for the approval of the City Council.
APPLICATION OF MARKET COST ADJUSTMENT:
When applicable, the Market Cost Adjustment Billing Factor (MCABF) for a particular rate schedule
as designated in the attached MCABF table, in cents per kWh, shall be applied to kilowatt-hours
sold on and after the effective date, and continuing thereafter until the next base rate change or
until a revision to the Market Cost Adjustment Billing Factor becomes effective. The dollar amount
to be added to or subtracted from each bill due to the Market Cost Adjustment shall be obtained
by multiplying the number of kilowatt-hours for which the bill is rendered by the applicable Market
Cost Adjustment Billing Factor.
CALCULATION OF THE POWER COST ADJUSTMENT BILLING FACTOR:
1. When the Electric Utility Director deems that substantial changes in power supply costs
have occurred relative to the costs included in base rates, the Market Cost Adjustment
Billing Factor shall be activated following the approval of the City Council.
2. The Billing Factor shall remain in effect until the next base rate change or until a revision
to the Billing Factor is necessary.
3. While the Billing Factor is activated, a Market Cost Adjustment account shall be maintained.
Entries into this account shall be:
The balance from the previous month;
The increase or decrease in charges for electric service billed using the applicable
Billing Factor; and
C. Any interest accruing to the account.
4. The MCA Billing Factor shall be designed by giving consideration to the following factors:
a. Rate stability is desirable and frequent changes in the MCA Billing Factor are
undesirable.
b. The financial integrity of the Electric Utility Department shall be maintained by
applying a MCA Billing Factor, when necessary, to ensure that the Electric Utility
Department does not overcollect or undercollect the revenue required for sound
financial operation.
5. The Electric Utility Department shall furnish to the City Council a notice of any proposed
activation or change in the MCA Billing Factor. Any activation or change in the MCA Billing
Factor requires approval by the City Council.
6. The Electric Utility Department generally shall make the MCA Billing Factors effective as
of the first day of the appropriate month. Adjustments to the MCA shall be no more
frequent than quarterly and no less than semi-annually.
MARKET COST ADJUSTMENT BILLING FACTOR
The Market Cost Adjustment Billing Factor by designated rate schedule, in
cents per kilowatt-hour, shall be shown in this Section. Certain classes may
have a tiered MCABF by level of monthly consumption.
Class
Cents per
kWh
Date
Effective
EA, EE under 300 kWh
1.250
June 1, 2001
EA, EE 301 to 600 kWh
1.900
June 1, 2001
EA, EE above 600 kWh
3.000
June 1, 2001
ED, EF
0.000
June 1, 2001
EM
0.000
June 1, 2001
EL
0.000
June 1, 2001
G1
2.000
June 1, 2001
G2
2.000
June 1, 2001
G3
0.000
June 1, 2001
G4
0.000
June 1, 2001
G5
0.000
June 1, 2001
11
0.000 1
June 1, 2001
Section 2. - No Mandatory Duty of Care. This ordinance is not intended to and shall not be
construed or given effect in a manner which imposes upon the City, or any officer or employee
thereof, a mandatory duty of care towards persons or property within the City or outside of the City
so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. - Severability. If any provision of this ordinance or the application thereof to any
person or circumstances is held invalid, such invalidity shall not affect other provisions or
applications of the ordinance which can be given effect without the invalid provision or application.
To this end, the provisions of this ordinance are severable. The City Council hereby declares that
it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof.
2
SECTION 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as
such conflict may exist.
SECTION 5. This Schedule MCA — Market Cost Adjustment shall be effective on applicable
electric utility billings prepared by the City of Lodi on or after June 1, 2001.
Approved this day of .2001
ALAN S. NAKANISHI
MAYOR
ATTEST:
SUSAN J. BLACKSTON
City Clerk
State of California
County of San Joaquin, ss.
I, Susan J. Blackston, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was
introduced at a regular meeting of the City Council of the City of Lodi held 2001
and was thereafter passed, adopted and ordered to print at a regular meeting of said Council held
, 2001 by the following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
I further certify that Ordinance No. was approved and signed by the Mayor on the date of its
passage and the same has been published pursuant to law.
Approved to Form:
IRANIALL A. HAYS
City Attorney
3
SUSAN J. BLACKSTON
City Clerk
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Joaquin.
I am a citizen of the United States and a resident of
the County aforesaid; I am over the age of eighteen
years, and not a party to or interested in the above -
entitled matter. I am the principal clerk of the
printer of the Lodi News -Sentinel, a newspaper of
general circulation, printed and published daily,
except Sundays and holidays, in the City of Lodi,
California, County of San Joaquin, and which news-
paper has been adjudged a newspaper of general
circulation by the Superior Court, Department 3, of
the County of San Joaquin, State of California,
under the date of May 26th, 1953, Case Number
65990; that the notice, of which the annexed is a
printed copy (set in type not smaller than non-
pareil), has been published in each regular and
entire issue of said newspaper and not in any supple-
ment thereof on the following dates, to -wit:
March 24
all in the year 2001,.
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at Lodi, California, this .... 24.... day of
March 2001
..................................... .........
Signature
This space is for the Ct>Yttxrt�+,Gl��lc's Filing Stamp
`!! r 29CITY
n�
(11y f r"
i 1 F Lilc
Proof of Publication of
Public Hearing
PROOF OF PUBLICATION
NOTICE OF PUBLIC NEARING
NOTICE- IS HEREBY. GIVEN that on
Wednesday. April. 18,-2001 at the hour of.
7:00 p.m., or as soon thereafter as the matter
may be heard, the City Council will conduct al.
Public Hearing at the Carnegie Forum, 305 West
Pine Street. Lodi, to consider the Wowing mat-:
for.-
Introduce
er:Introduce ordinance for the lmpfarnantafloh of
a Market Cost Adjustment Policy and
Mechanismm
Information regarding this Item may be obtalned
In the office of the Utility Department Director,
1331 South Ham Lane, Lodi, California. All Inter.
ested persons are invited to present their views
and comments on this matter. Written statements
may be filed with the City Clerk at any time prior
to the hearing scheduled herBin, and Aral state-
ments may be made at said hearing.
if you challenge the subject matter In court. you
may be limited to raising only those Issues YOU or
someone else raised at the Public Hearing
described In this notice or in written correspon-
dence delivered to the City Clerk, 721 West Pine
Street, at or prior to the Public Hearing.
By Order of the Lodi City Council:
Susan J. Biackston
City Cterk
Gated: March 21, 2001
Approved as to form:
Randall A. Hays
City Attorney
March 24, 2001 —3197
3197
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Joaquin.
I am a citizen of the United States and a resident of
the County aforesaid; I am over the age of eighteen
years, and not a party to or interested in the above -
entitled matter. I am the principal clerk of the
printer of the Lodi News -Sentinel, a newspaper of
general circulation, printed and published daily,
except Sundays and holidays, in the City of Lodi,
California. County of San Joaquin, and which news-
paper has been adjudged a newspaper of general
circulation by the Superior Court, Department 3, of
the County of San Joaquin, State of California,
under the date of May 26th, 1953, Case Number
65990; that the notice, of which the annexed is a
printed copy (set in type not smaller than non-
pareil), has been published in each regular and
entire issue ofsaid newspaperand not in any supple-
ment thereof on the following dates, to -wit:
. April 2,10
all in the year 900..
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at Lodi, California, this .....1 P.... day of
April ................... 2001
.... witte/z/14(Z
Signature
This space is for the County Clerk's Filing Stamp
Proof of Publication of
...........Public..Hearing.......................
..........................
NOTICE pO A PUBLIC HEARING
18, 2001
NOTICE is HEREBY GIVEN that on Wednesday
Apni 1S, 2001 at the tour d 7:o0 p m., or as soon
thereaQer as the matter may be heard, the City
Councjt will conduct a Public Hearing at the
Camagle Forum. 305 Wast Pine Street, Lodi, to
described e escrribedthe tInViementation of as Me" ,
Cost Adjustment Policy and Mechanism•
PROPOSED ORDINANCE:
PROOF OF PUBLICATION
SECTION 1.Lo4 Municipal Code Chapter 13.20 -
Electrical Service, Article hl. Rates, Is hereby
wnendsd try adding Section 13.20.175 - Schedule"
MCA - Market Cost Adjustment as follows:
SCHEDULE MCA - MARKET COST ADJUST-
MENT
APPLICABILITY:
When in diilefY, the this
achedicity and to allolul�w -hourble to s
UMM aeroed by
billed under dM
l rate schedules as defined under e
speciconditions d Me rate Schedules labeled
Purchased Power Adttualrr—L ,
PURPOSE: supply costs will be reowered
Gerwally. Power
ahralgh application Of the base rates. In the evert
Mat substantial changes in projected power S PPiy
co", OCCihf, eiltlef alcreases or decreases. the
FC
CastoP -14Biadthg Fades
date for itna approval t>f Me Cly Council.
APPLICATION OF MARKET COST
ADJUSTMENT:
When applicable. the Market Coal Adiuslment
Siffinu1e a s Fad" �gn ted in the abached MCASF taba particular rate le n
cents Pat WWn. " be applied to kilowatt-hours . .,
sold on an Lahey the ~live date, and oonttadng
• dha i efW,0ns Me neat base rate change or trmil a
revision..%O_VW.Mad"t.Coal.Adjud nWrl"Stang,:"
Factor becomes efladive. The dollar arrant io be
added to or subtractad iron each bill doe 10 the.'
MstraL Coat A4u~i shall be obtained. M oatti- . d' -
WyingVW number ofldlowaft hours! t1r1#k h M bite,., +..
as tendered by the aPPWA Met
4a tri
' AdluNmem &!ling Factor. .
CALCULATION OF THE POWER COST ADJUST-
MENT BILLING FACTOR: ,
1. When. Itie EWAC utility Director deems Mat
substantial changes in Power supply costs have
occurred relative totlte MIS Included In base tales. .
Me Market Cent AdjustmeM ailang Fedor shall be
activated following the app—el of the Cdy Council.
2. The a" Factor shag remain in efled anal the
next base rate change or until a .revision to the
aiding Fedor is necessary.
3. Whore the eang Fedor is activated. a Market
Cost- Atljuslmen, NaccouM shall be maintained.
U. 1 1.
Inc Service billed using the app(watxe UdLny 1- t,
and
c. Any interest accruing to the account,
4. The MCA Billing Factor shall be designed by giv-
ing consideration to the following factors:
a. Rate stability is desirable and freiluent changes
in the MCA Billing Factor are undesitable. '
b. The financial integrity of the Electric Utility
Department shall be maintained by applying a MCA
Billing Factor, 'when necessary, to ensure that the
Electric Utility Department does not overcolled or ,
undercollect the revenue.raquired for sound finan-
cial operation.
S. The Electric Utility Department shall furnish to
the City Council a notice of any proposed activation
or change in fire MCA Billing Factor. Any activation K
or change in the MCA Billing Factor requires
approval by the City Council.
6. The Electric Utility Department generally shall
make the MCA Billing Factors effective as of the first
day of the appropriate month. Adjustments to the
MCA shall be no more frequent than quarterly andy
no less than semi-annually.
'c.
MaEi Cpli.pNS.i4Etn otlUNp /�CTO,t t
1t
r
c
i
a
t
C
L
i
x
r
Section 2. - No Mandatory Duty of Care. This ordi-
nance is not intended to and shall not be construed
or given effect in a maturer which imposes upon the !
City, or any officer of employee thereol, a mandato-
1
ry duty of care towards persons or property within r.
the City or outside of the City so as to provide a
Oasis of civil liability for damages, except asother-
wise imposed by law.
Section 3. - Severability. If any provision of this ord•
nance or the application thereof to any person or dr•
cumstances is held invalid, such invalidity shall not
affect other provisions or applications of the ord-
nance which. can be given effect without rhe invalid '
provision or application. To this end, the provisions
of this ordinance are severable. The City Council
hereby declares that k would have adopted this
ordnance irrespective of the invalidity of any panic.
War portion thereof. ..
SECTION 4. All ordinances and pans of ordinances
in conflict herewith are repealed insofar as such
conflict may exist.
SECTIONS. This Schedule MCA– Market Cast
Adjustment shall be e1feG11vs on applicable electric
uWy billings prepared by the Oily of Lodi on or after
June 1, 2001.
Information regarding this matter may be obtained
in the office of the Electric Utility Department
Director, 1331 South Ham Lane, Lodi, California. All
Interested persons are invited to present their views .
and comments on Ihfe maser. Written statements
may be filed with the City Clerk at any time prior to
the hearing scheduled herein, and oral statements
may be made at said hearing. I.
If you dtiailenge ftte subject mefter in court, you may
be limited to raising only those Issues you or some-
one else raised at the Public Hearing described in
this notice or in written correspondence delivered to
the City Clerk, 221 West Pine Street,'Lodi,
California at or prior to the Public Hearing.
.By Older of the Lod City Council:
Susan J. Slackston
City Clerk
Dated: March 21, 2001
Approved as to torn:
Randall A. Hays
City Attomey
April 2, 10, 2001 —3231
TM 4,/Nt Cp Mtn - !wq /,KNr a wtquNp ,.,. fc,rW4. w
,n. !w wo.nt.nom. ,n M S.ct Cw,wn Nws N/
tq 4C•M i,'wM a maNrw CMrJ/Ctn
C«w/ttw
CN°. � !call
o.N
1p.em.
EA EE wH Soo Www i 2"
Jw i. rapt
E•. ES A, N opO,Wn 1 t Soo
E. EE JJNN 1pO ,W. j 0000
Jw �. Mn
to Er poop
�, Jpp,
E4 i Gow
lw t, rapt
El aw
Jw t. loot
c. I 7aao
Jw t. Toot
C! t Opo
t. Jppl
Op I aaw
Jw t, no,
GJ o 000
Jw t. toot
cs 0000
Jw �. rap
1t
r
c
i
a
t
C
L
i
x
r
Section 2. - No Mandatory Duty of Care. This ordi-
nance is not intended to and shall not be construed
or given effect in a maturer which imposes upon the !
City, or any officer of employee thereol, a mandato-
1
ry duty of care towards persons or property within r.
the City or outside of the City so as to provide a
Oasis of civil liability for damages, except asother-
wise imposed by law.
Section 3. - Severability. If any provision of this ord•
nance or the application thereof to any person or dr•
cumstances is held invalid, such invalidity shall not
affect other provisions or applications of the ord-
nance which. can be given effect without rhe invalid '
provision or application. To this end, the provisions
of this ordinance are severable. The City Council
hereby declares that k would have adopted this
ordnance irrespective of the invalidity of any panic.
War portion thereof. ..
SECTION 4. All ordinances and pans of ordinances
in conflict herewith are repealed insofar as such
conflict may exist.
SECTIONS. This Schedule MCA– Market Cast
Adjustment shall be e1feG11vs on applicable electric
uWy billings prepared by the Oily of Lodi on or after
June 1, 2001.
Information regarding this matter may be obtained
in the office of the Electric Utility Department
Director, 1331 South Ham Lane, Lodi, California. All
Interested persons are invited to present their views .
and comments on Ihfe maser. Written statements
may be filed with the City Clerk at any time prior to
the hearing scheduled herein, and oral statements
may be made at said hearing. I.
If you dtiailenge ftte subject mefter in court, you may
be limited to raising only those Issues you or some-
one else raised at the Public Hearing described in
this notice or in written correspondence delivered to
the City Clerk, 221 West Pine Street,'Lodi,
California at or prior to the Public Hearing.
.By Older of the Lod City Council:
Susan J. Slackston
City Clerk
Dated: March 21, 2001
Approved as to torn:
Randall A. Hays
City Attomey
April 2, 10, 2001 —3231
�OF�O
Please immediately confirm receipt
of this fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING FOR INTRODUCTION OF DRAFT ORDINANCE FOR THE
IMPLEMENTATION OF A MARKET COST ADJUSTMENT POLICY AND MECHANISM
PUBLISH DATE(s): MONDAY, -APRIL 2, 2001
TUESDAY, APRIL 10, 2001
TEAR SHEETS WANTED: Three (3) please
SEND AFFIDAVIT AND BILL TO: SUSAN BLACKSTON, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: MARCH 30, 2001
ORDERED BY:
JACQUELINE L. TAYLOR
DEPUTY CITY CLERK
"NNITYERY CLERK
E-wt4 i
�FRxed to the Sentinel at at a� time) on O (date) (pages)
Sharon Phoned t confirm receipt of all p ges at (time) ' Jac— (in ials)
u S. CAvY'
�
forms\advins.doc
NOTICE OF PUBLIC HEARING
APRIL 18, 2001
NOTICE IS HEREBY GIVEN that on Wednesday, April 18, 2001 at the hour of 7:00 p.m.,
or as soon thereafter as the matter may be heard, the City Council will conduct a Public
Hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the introduction of
an ordinance (as described below) for the implementation of a Market Cost Adjustment
Policy and Mechanism.
PROPOSED ORDINANCE:
SECTION 1. Lodi Municipal Code Chapter 13.20 - Electrical Service, Article III.
Rates, is hereby amended by adding Section 13.20.175 — Schedule MCA — Market Cost
Adjustment as follows:
SCHEDULE MCA— MARKET COST ADJUSTMENT
APPLICABILITY:
When in effect, this schedule is applicable to all areas served by the City and to all
kilowatt-hours billed under all rate schedules as defined under the special conditions of
the rate schedules labeled Purchased Power Adjustment.
PURPOSE:
Generally, power supply costs will be recovered through application of the base rates. In
the event that substantial changes in projected power supply costs occur, either
increases or decreases, the Market Cost Adjustment Billing Factor will be activated to
provide for increases or decreases in the City's charges for electric service. The Electric
Utility Director shall develop and recommend a MCA Billing Factor to be effective on a
specified date for the approval of the City Council.
APPLICATION OF MARKET COST ADJUSTMENT:
When applicable, the Market Cost Adjustment Billing Factor (MCABF) for a particular rate
schedule as designated in the attached MCABF table, in cents per kWh, shall be applied
to kilowatt-hours sold on and after the effective date, and continuing thereafter until the
next base rate change or until a revision to the Market Cost Adjustment Billing Factor
becomes effective. The dollar amount to be added to or subtracted from each bill due to
the Market Cost Adjustment shall be obtained by multiplying the number of kilowatt-hours
for which the bill is rendered by the applicable Market Cost Adjustment Billing Factor.
CALCULATION OF THE POWER COST ADJUSTMENT BILLING FACTOR:
1. When the Electric Utility Director deems that substantial changes in power supply
costs have occurred relative to the costs included in base rates, the Market Cost
Adjustment Billing Factor shall be activated following the approval of the City
Council.
2. The Billing Factor shall remain in effect until the next base rate change or until a
revision to the Billing Factor is necessary.
3. While the Billing Factor is activated, a Market Cost Adjustment account shall be
maintained. Entries into this account shall be:
a. The balance from the previous month;
b. The increase or decrease in charges for electric service billed using the
applicable Billing Factor; and
C. Any interest accruing to the account.
4. The MCA Billing Factor shall be designed by giving consideration to the following
factors:
a. Rate stability is desirable and frequent changes in the MCA Billing Factor
are undesirable.
b. The financial integrity of the Electric Utility Department shall be
maintained by applying a MCA Billing Factor, when necessary, to ensure
that the Electric Utility Department does not overcollect or undercollect
the revenue required for sound financial operation.
5. The Electric Utility Department shall furnish to the City Council a notice of any
proposed activation or change in the MCA Billing Factor. Any activation or
change in the MCA Billing Factor requires approval by the City Council.
6. The Electric Utility Department generally shall make the MCA Billing Factors
effective as of the first day of the appropriate month. Adjustments to the MCA
shall be no more frequent than quarterly and no less than semi-annually.
MARKET COST ADJUSTMENT BILLING FACTOR
The Market Cost Adjustment Billing Factor by designated rate schedule, in cents
per kilowatt-hour, shall be shown in this Section. Certain classes may have a
tiered MCABF by level of onthly consumption.
Class
Cents per
kWh
Date
Effective
EA, EE under 300 kWh
1.250
June 1, 2001' "
EA, EE 301 to 600 kWh
1.900
June 1, 2001
EA, EE above 600 kWh
3.000
June 1, 2001
ED, EF
0.000
June 1, 2001
EM
0.000
June 1, 2001
EL
0.000
June 1, 2001
G1
2.000
June 1, 2001
G2
2.000
June 1, 2001
G3
0.000
June 1, 2001
G4
0.000
June 1, 2001
G5
0.000
June 1, 2001
11
0.000
June 1, 2001
Section 2. - No Mandatory Duty of Care. This ordinance is not intended to and shall
not be construed or given effect in a manner which imposes upon the City, or any officer
or employee thereof, a mandatory duty of care towards persons or property within the
City or outside of the City so as to provide a basis of civil liability for damages, except as
otherwise imposed by law.
Section 3. - Severability. If any provision of this ordinance or the application thereof to
any person or circumstances is held invalid, such invalidity shall not affect other
provisions or applications of the ordinance which can be given effect without the invalid
provision or application. To this end, the provisions of this ordinance are severable. The
City Council hereby declares that it would have adopted this ordinance irrespective of the
invalidity of any particular portion thereof.
SECTION 4. All ordinances and parts of ordinances in conflict herewith are repealed
insofar as such conflict may exist.
SECTION 5. This Schedule MCA — Market Cost Adjustment shall be effective on
applicable electric utility billings prepared by the City of Lodi on or after June 1, 2001.
Information regarding this matter may be obtained in the office of the Electric Utility
Department Director, 1331 South Ham Lane, Lodi, California. All interested persons are
invited to present their views and comments on this matter. Written statements may be
filed with the City Clerk at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only those issues
you or someone else raised at the Public Hearing described in this notice or in written
correspondence delivered to the City Clerk, 221 West Pine Street, Lodi, California at or
prior to the Public Hearing.
By Order of the Lodi City Council:
Susan J, Blackston
City Clerk
Dated: March 21, 2001
Approved as to form:
Randall A. Hays
City Attorney
d)
C L
d =
>% O
dwdw
4)
4)
L
�.+ .c
O
woo E
IBM= a
d
r�
i
C
�>7V
L
d
� -
c�
Lu
w
Q
lk
O a
CL c
m Q
L. -
O n
w 7
r
Io
LW
*am*
lialow
r".
W
WM
j
fj
ui
ul
Zt
w
OR
I
�R
0%
C4
0
unp,
C-114
*mw
qw
+
+
+
mc
drm
Cft
N
�
�
mc
3
CD
(a
a
t°
Lu
co)
0
o
cq
0
OR
I
Ito1w
0
fm4L
0
3
Im
+
>
w
toot,
Cr
>
0
gown%
m
C4
C4
(4
an
w-4
o
40
Lo
4m
CL
cr
0
fm4L
0
3
f�
f�
V
f nit
f f�
O
Q
�
L
0
Cid
Go
4olk
r
40).
w
O
%mooa
O
f
�—
V4
..
if
o
L
00
V
vow
JI
Clq
co
CL
E
mono v
co Csi V cc
E
cq in
C14 40). 40 44
40m son 0
cd
aid
wl.11L
0
CL
E
0
0
9.
loop
E
0
Lm
0
LM
A
4)
4)
4)
CL
x
c
0
adow
0
Low
m-
W-2
ZkA
0
O
CL
N
m
LM
ow
wl.11L
0
CL
E
0
0
9.
loop
E
0
Lm
0
LM
A
4)
4)
4)
CL
x
c
0
adow
0
Low
m-
W-2
ZkA
Raw
Lm
L
OL �L
oCc
aso
*ENO W