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HomeMy WebLinkAboutAgenda Report - July 6, 2016 C-21 PHAGENDA ITEM CO ff�% CITY OF LODI COUNCIL COMMUNICATION • TM AGENDA TITLE: Set Public Hearing for July 20, 2016, to Consider Introducing an Ordinance Amending Lodi Municipal Chapter 13.20 — Electrical Service — By Repealing and Reenacting Sections 13.20.190 - Schedule EA (Residential Service) and 13.20.210 - Schedule EM (Mobile Home Park Service) in Their Entirety MEETING DATE: July 6, 2016 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Set public hearing for July 20, 2016, to consider introducing an ordinance amending Lodi Municipal Chapter 13.20 — Electrical Service — by repealing and reenacting sections 13.20.190 - Schedule EA (Residential Service) and 13.20.210 - Schedule EM (Mobile Home Park Service) in their entirety. BACKGROUND INFORMATION: In September 2015 and January 2016, Lodi Electric Utility (LEU) presented to the City Council two separate reports on the issues and challenges facing utilities with respect to the changing electric utility business model. Under the traditional model, utilities were the sole providers of electricity to meet a customer's power requirements. Customers now have the option to install their own generation, on-site energy storage technology is becoming available to the general public, and customers continue to implement energy efficiency measures. Like most electric utilities, LEU's rates are structured to recover a portion of its revenue requirement through a bundled energy charge for both commodity (variable) and non -commodity (fixed) expenses. This means that fixed costs are recovered largely when the customer is billed for energy. As a customer uses less energy, less fixed revenue is recovered — despite the reality that the fixed costs remain the same or increase for the utility. As such, less revenue received through fixed costs results in the need for higher variable (energy) charges to cover fixed costs. Other utilities such as Alameda, Redding, Turlock Irrigation District, SMUD, Modesto Irrigation District and Roseville have acknowledged this issue by implementing fixed charges ranging from $11.50 to $22 per month. With the current 5 -tier residential rate structure, higher users are paying a higher energy charge per kilowatt-hour (kWh) and thus paying a higher share of fixed costs than the lower user paying a lower energy charge per kWh. The current residential electric rate charges are provided below: Minimum Charge - $5.25 Energy Charge $IkWh Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 $0.14910 $0.15225 $0.23468 $0.33390 $0.34650 Set Public Hearing for July 20, 2016, to Consider Introducing an Ordinance Amending Lodi Municipal Chapter 13.20 — Electrical Service — By Repealing and Reenacting Sections 13.20.190 - Schedule EA (Residential Service) and 13.20.210 - Schedule EM (Mobile Home Park Service) in Their Entirety July 6, 2016 Page 2 of 2 Fixed costs for LEU currently account for approximately 45 percent of all expenses, while LEU currently collects no fixed charge from its residential customers. These fixed or non -power costs include billing, metering, contributions to the General Fund, and debt service to name a few. A minimum charge currently applies only to customers using less than 36 kWh per month or less than 2 percent of all residential customers. As such, it has become necessary for electric utilities to evaluate the impact of these changes so that the utility recovers necessary costs and ensures one group of customers is not benefitting at the expense of another. To improve alignment between charges and costs, LEU is proposing to eliminate the minimum monthly charge of $5.25 per month and replace it with a $10 per month fixed charge for residential customers. In addition, LEU is proposing to reduce the number of tiers from 5 to 3 for residential customers. The proposed residential electric rate charges are provided below: Customer Charge - $10.00 Enerav Charge ($IkWh) Tier 1 =Tier 2 Tier 3 $0.1400 1 $0.1550 $0.3300 For a better understanding of the customers impacted by these changes, the table below provides a snapshot of monthly usage for the average residential, low-income and solar customers: This revenue neutral rate re -structure is projected to generate approximately $2 million in fixed revenue, thereby allowing for a reduction and simplification in energy rates and tiers. The impact to the low, medium and high use customer is illustrated below and includes an average energy cost adjustment, applicable surcharges and taxes. For simplicity, the comparison below is provided based on summer billing rates. The information below does not include any applicable low-income, fixed-income and/or medical discounts. Those discounts would be applied accordingly and thereby reduce the overall impact to customers eligible for those discounts. Low User 300 kWh Residential Low -Income Solar Average Monthly Usage kWh 567 506 288 This revenue neutral rate re -structure is projected to generate approximately $2 million in fixed revenue, thereby allowing for a reduction and simplification in energy rates and tiers. The impact to the low, medium and high use customer is illustrated below and includes an average energy cost adjustment, applicable surcharges and taxes. For simplicity, the comparison below is provided based on summer billing rates. The information below does not include any applicable low-income, fixed-income and/or medical discounts. Those discounts would be applied accordingly and thereby reduce the overall impact to customers eligible for those discounts. Low User 300 kWh Medium User 750 kWhL Hi h User 1,000 kWh Currently Monthly Bill $47 $128 $193 Proposed Monthly Bill $54 $124 $172 Increase Decrease $7 $4 $21 In addition, because mobile home park residents are charged by the master metered customer in the same manner as a residential customer is charged by the utility, the changes outlined above are also proposed to the current mobile home park rates. Staff also conducted a comprehensive review of the current charges and discounts to master metered mobile home park accounts and is proposing additional changes, including a pad discount reduction and assessment of a customer charge to cover monthly billing costs which, when combined with the proposed rate restructure, will result in a small monthly increase to the master metered customer. Staff met with representatives from the various mobile home parks in June 2016 to discuss the proposed changes. These proposed changes, if approved, will begin to align Lodi's residential rate structure with industry standards, fairly allocate fixed costs to all residential customers, and create a more simplified and easier Set Public Hearing for July 20, 2016, to Consider Introducing an Ordinance Amending Lodi Municipal Chapter 13.20 — Electrical Service — By Repealing and Reenacting Sections 13.20.190 - Schedule EA (Residential Service) and 13.20.210 - Schedule EM (Mobile Home Park Service) in Their Entirety July 6, 2016 Page 3 of 2 to understand rate structure. More importantly, these proposed changes will maintain Lodi's competitive rates with PG&E and other publicly -owned utilities. The proposed changes are outlined in the attached Exhibit A. FISCAL IMPACT: The proposed changes are revenue neutral. FUNDING AVAILABLE: Not a::Iizaibeth A. Kirkley C/LL 1_�6Y Electric Utility Director PREPARED BY: Melissa Price, Rates & Resources Manager EAK/MP/Ist ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 - ELECTRICAL SERVICE - BY REPEALING AND REENACTING SECTIONS 13.20.190 - "SCHEDULE EA - RESIDENTIAL SERVICE" AND 13.20.210 - "SCHEDULE EM - MOBILEHOME PARK SERVICE" IN THEIR ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Section 13.20.190 "Schedule EA - Residential Service" is hereby repealed and reenacted in its entirety to read as follows: APPLICABILITY: This schedule is applicable to single-phase domestic power service in single-family and multi- family dwellings separately metered by the City including those on discontinued all electric rate schedule, EE. RATES: nn;. nCustomer Charge........................................................$5 510.00 Energy Charge is by Tier of kWh usage: $/kWh Tier 1 (BaseliRe)°131 Tier 2 Tier 3 200% 4ef-4 T4er--5 (Over 300 ,14 $0.1494,000 $0.1522550 $0.234693300 (101 130% efba.se#P,e_) $9.44659 Summer (Mav throuah October) Enerov Tiers Winter (November through April) Energy Tiers Tier 1 Tier 2 Tier 3 T4ef-4 T4ci5 (ie) (101 130% efba.se#P,e_) baseline) ef baseline' (ever 380°4 -:E Beginning 0 482 >96262-6 963 X1;448 Tier kWh/month Ending Tier 481 62-5962 962 4,41-43 kWh/month Winter (November through April) Energy Tiers ENERGY COST AJUSTMENT (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL: The Billing Cycle Charge is the higher of the -sum of the MiRimumCustomer Charge,__ -tee EGA eTthe—su'n;r the Energy Charge and the ECA. SPECIAL CONDITIONS: (a) When a business or commercial establishment is conducted in conjunction with a residence and both are measured through one meter, this rate does not apply. (b) This rate does not apply to service used for common area and facilities in multi -family dwellings. (c) An--aAdditional discounts +sare available as described in Schedule MR, Residential Medical Discount and Schedule ED, Residential SHARE Program Service. FIXED INCOME DISCOUNT: For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill. Procedures as to qualification will be established by the Electric Utility Department. SECTION 2. Lodi Municipal Code Section 13.20.210 "Schedule EM — Mobilehome Park Service" is hereby repealed and reenacted in its entirety to read as follows: APPLICABILITY: This schedule is applicable to service supplied to mobile home parks through one meter and sub -metered to all individual mobile home units. RATES: MiRimumCustomer Charge (Master Meter Customer) ... $5.251 per individual mobile home park unit. Energy Charge is by Tier of kWh usage: K Tier 1 Tier 2 Tier 3 T4ef-4 T4ci5 (ie) (101 130% (Over 300°4 of baselffi. Beginning Tier 0 392 >782509 793 >1,173 kWh/month Ending Tier 391 509782 7-K 4�3 kWh/month ENERGY COST AJUSTMENT (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL: The Billing Cycle Charge is the higher of the -sum of the MiRimumCustomer Charge,__ -tee EGA eTthe—su'n;r the Energy Charge and the ECA. SPECIAL CONDITIONS: (a) When a business or commercial establishment is conducted in conjunction with a residence and both are measured through one meter, this rate does not apply. (b) This rate does not apply to service used for common area and facilities in multi -family dwellings. (c) An--aAdditional discounts +sare available as described in Schedule MR, Residential Medical Discount and Schedule ED, Residential SHARE Program Service. FIXED INCOME DISCOUNT: For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill. Procedures as to qualification will be established by the Electric Utility Department. SECTION 2. Lodi Municipal Code Section 13.20.210 "Schedule EM — Mobilehome Park Service" is hereby repealed and reenacted in its entirety to read as follows: APPLICABILITY: This schedule is applicable to service supplied to mobile home parks through one meter and sub -metered to all individual mobile home units. RATES: MiRimumCustomer Charge (Master Meter Customer) ... $5.251 per individual mobile home park unit. Energy Charge is by Tier of kWh usage: K $/kWh Tier 1 (B Tier 2 ° Tier 3 0 of Tier 4 T4ef-5 (QveF 300,6 $0.1494000 $0.1522550 $0.234683300 $9:88399 $8:84659 Summer (May through October) Energy Tiers Winter (November through April) Energy Tiers Tier 1 Tier 2 Tier 3 T'�4e" T e -r-5 (Q o\ 0 of (1 31 _200% of (201 _300% „f kove-rw0% Beginning 0 482 >962626 968 X17443 Tier kWh/month Ending Tier 481 62-5962 962 4 43 kWh/month Winter (November through April) Energy Tiers MASTER METER / SUB -METER DISCOUNT: For each occupied mobile home park unit, the park owner will receive a monthly discount in the same amount of $3.00 as allowed to PG&E by the California PubliG UtilitiP-6 fGF the Ye__+r__ ENERGY COST AJUSTMENT (ECAC An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL): The Billing Cycle Charge is the #+ghersum of the MinimumCustomer Charge (Master Meter Customer), or the Gvff the Energy Charge, the Master Meter / Sub -Meter Discount and the ECA. SPECIAL CONDITIONS: Tier 1 Tier 2 Tier 3 Tie4 Toe -5 fie) o kgye 390°L Beginning 0 392 509>782 783 >,173 Tier kWh/month Ending Tier 391 508782 732- 4-78 kWh/month MASTER METER / SUB -METER DISCOUNT: For each occupied mobile home park unit, the park owner will receive a monthly discount in the same amount of $3.00 as allowed to PG&E by the California PubliG UtilitiP-6 fGF the Ye__+r__ ENERGY COST AJUSTMENT (ECAC An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL): The Billing Cycle Charge is the #+ghersum of the MinimumCustomer Charge (Master Meter Customer), or the Gvff the Energy Charge, the Master Meter / Sub -Meter Discount and the ECA. SPECIAL CONDITIONS: (a) This rate is available only for mobile home park master metering in service prior to March 31, 1989. (b) It is the responsibility of the master -metered customer to notify the City Finance Department by the 5t day of each month of any change in the number of occupied mobile home park units wired for service on the first day of that month. (c) Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance, and other similar use incidental to the operation of the premises as a multi -family accommodation will be considered domestic use. (d) For the master -metered Customer to qualify for Single Household Alternative Rate for Energy (SHARE) and/or the Residential Medical Discount, the qualified sub -metered tenants of the master -metered Customer must submit the applicable application(s), including the tenant's unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department will notify the master -metered Customer in writing of the tenant's certification for these programs. (e) For tenants who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% of the qualifying tenant's electric bill (Fixed Income Discount) shall be provided to the master - metered Customer. Procedures as to qualification will be established by the Electric Utility Department. (f) The master -metered customer, not the City of Lodi, is responsible for extending the SHARE, Residential Medical Discount, and Fixed Income Discount to tenants certified to receive them. If verification establishes that the SHARE, Residential Medical Discount, or Fixed Income Discount tenant is ineligible, the tenant will be removed from the master -metered Customer's qualified tenants and the City of Lodi may render corrective billings. (g) The master -metered Customer shall not bill any sub -metered tenant more than that tenant would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable rates equivalent to Schedule ED, Residential SHARE Program Service. For a tenant qualifying for a Residential Medical Discount, the master - metered Customer shall the bill the qualifying tenant in accordance with the provisions of Schedule MR, Residential Medical Discount. For tenants qualifying for a Fixed Income Discount, the master -metered Customer shall bill the qualifying tenant in accordance with the provisions of paragraph (e) herein. A tenant not qualified for any of the above discounts shall be billed using Testes" hep ei ), the rates and charges provided for in Schedule EM, Mobile Home Park Service, excepting the Master Meter / Sub -Meter Discount shall not be provided to tenants and the master -metered Customer shall not bill the tenant the Schedule EM, Mobile Home Park Service Customer Charge (Master Meter Customer). (h) With the exception of the Customer Charge provided for in Schedule EA, Residential Service, Tthe master-meter/sub-meter rate discount provided herein prohibits further 4 recovery by mobile home park owners for the costs of owning, operating and maintaining their electric sub -metered system. (i) Upon request, mobile home park owners must submit copies of their tenant billings to the City of Lodi for auditing to ensure compliance with this rate tariff, provided however that such requests shall not be made more often than semi-annually. SECTION 3. 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 4. 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 5. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 6. Effective Date and Publication. This Ordinance shall take effect thirty (30) days after its adoption. In lieu of publication of the full text of the ordinance within fifteen (15) days after its passage, a summary of the ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the City Council, and a certified copy shall be posted in the office of the City Clerk pursuant to Government Code section 36933(c)(1). Approved this day of , 2016 MARK CHANDLER Mayor ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, 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 July 20, 2016, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2016, 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: JANICE D. MAGDICH City Attorney 6 JENNIFER M. FERRAIOLO City Clerk X 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 TO INTRODUCE ORDINANCE AMENDING LODI MUNICIPAL CODE SECTION 13.20.190, "SCHEDULE EA (RESIDENTIAL SERVICE)," AND SECTION 13.20.210, "SCHEDULE EM (MOBILE HOME PARK SERVICE)," IN THEIR ENTIRETY PUBLISH DATE: SATURDAY, JULY 9, 2016 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: LNS ACCT. #0510052 DATED: THURSDAY, JULY 7, 2016 JENNIFER M. FERRAIOLO, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK CEELAA.,FARM S PUTYY CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File Emailed to the Sentinel at dianer@lodinews.com at. (ttmff) on �_,,,,,,,(ddW). (pages) LNS Phoned to confirm 6600pt of all 0#60 'at__,.(ti lrC ___;TeB PMF (30410.. forms\advins.doc �4F DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE AMENDING LODI MUNICIPAL CODE SECTION 13.20.190, "SCHEDULE EA (RESIDENTIAL SERVICE)," AND SECTION 13.20.210, "SCHEDULE EM (MOBILE HOME PARK SERVICE)," IN THEIR ENTIRETY On Thursday, July 7, 2016, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider introducing ordinance amending Lodi Municipal Code Section 13.20.190, "Schedule EA (Residential Service)," and Section 13.20.210, "Schedule EM (Mobile Home Park Service)," in their entirety (attached and marked as Exhibit A) was posted at the following locations: Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum WorkNet Office I declare under penalty of perjury that the foregoing is true and correct. Executed on July 7, 2016, at Lodi, California. A 1[■ DEPUTYCITY CLERKrV ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK NAAdministration\CLERKTublic Hearings\AFFADAVITS\DECPOSTEUD.DOC CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: July 20, 2016 Time: 7:00 p.m. For information regarding this notice please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING EXt I f -n IT' A NOTICE IS HEREBY GIVEN that on Wednesday, July 20, 2016, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following matter: a) Introduce ordinance amending Lodi Municipal Code Section 13.20.190, "Schedule EA (Residential Service)," and Section 13.20.210, "Schedule EM (Mobile Home Park Service)," in their entirety (as identified on the attached Exhibit A). Information regarding this item may be obtained in the Electric Utility Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: 6. nifer M. tra€olo tty Clerk Dated: July 6, 2016 Ap ed as to form: r' I nice -[3: agdic" City Attorney CLERK\PUBHEAR\NOTICES\Noteud.doc 7/6/16 EXHIBIT A SCHEDULE EA — RESIDENTIAL SERVICE APPLICABILITY: This schedule is applicable to single-phase domestic power service in single- family and multi -family dwellings separately metered by the City including those on discontinued all electric rate schedule, EE. RATES: CustomerCharge ............................... :..................... ......................................... $10.00 Energy Charge is by Tier of kWh Tier 1 1 Tier 2 1 Tier 3 I $/kWh 1 $0.1400 1 $0.1550 ! $0.3300 1 Summer (May through October) Energy Tiers Winter (November through April) Energy Tiers Tier 1 Tier 2 Tier 3 Beginning 0 482 >962 Tier kWh/month 391 782 Ending Tier 481 962 kWh/month Winter (November through April) Energy Tiers ENERGY COST AJLiSTMENT LECA]: An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. ,BILLING CYCLE CHARGE LMONTHLY BILL: The Billing Cycle Charge is the sum of the Customer Charge, the Energy Charge, and the ECA. SPECIAL CONDITIONS: (a) When a business or commercial establishment is conducted in conjunction with a residence and both are measured through one meter, this rate does not apply. (b) This rate does not apply to service used for common area and facilities in multi -family dwellings. (c) Additional discounts are available as described in Schedule MR, Residential Medical Discount and Schedule ED, Residential SHARE Program Service. FIXED INCOME DISCOUNT: For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill. Procedures as to qualification will be established by the Electric Utility Department. 1 Tier 1 Tier 2 Tier 3 Beginning Tier 0 392 >782 kWh/month Ending Tier 391 782 kWh/month ENERGY COST AJLiSTMENT LECA]: An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. ,BILLING CYCLE CHARGE LMONTHLY BILL: The Billing Cycle Charge is the sum of the Customer Charge, the Energy Charge, and the ECA. SPECIAL CONDITIONS: (a) When a business or commercial establishment is conducted in conjunction with a residence and both are measured through one meter, this rate does not apply. (b) This rate does not apply to service used for common area and facilities in multi -family dwellings. (c) Additional discounts are available as described in Schedule MR, Residential Medical Discount and Schedule ED, Residential SHARE Program Service. FIXED INCOME DISCOUNT: For those customers who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% shall apply to the electric bill. Procedures as to qualification will be established by the Electric Utility Department. 1 EXHIBIT A SCHEDULE EM — MOBILEHOME PARK SERVICE APPLICABILITY: This schedule is applicable to service supplied to mobile home parks through one meter and sub -metered to all individual mobile home units. RATES: Customer Charge (Master Meter Customer)................$1 per individual mobile home park unit. Energy Charge is by Tier of kWh usage: Summer (May through October Energy Tiers Tier 1 Tier 2 Tier 3 $/kWh $0.1400 $0.1550 $0.3300 Summer (May through October Energy Tiers Winter (November through April) Ene Tiers Tier 1 Tier 2 Tier 3 Beginning 0 482 >962 Tier kWh/month Ending Tier 481 962 kWh/month Winter (November through April) Ene Tiers MASTER METER / SUB -METER DISCOUNT: For each occupied mobile home park unit, the park owner will receive a monthly discount in the amount of $3.00. ENERGY COSTAJIJSTMENT (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL): The Billing Cycle Charge is the sum of the Customer Charge (Master Meter Customer), the Energy Charge, the Master Meter / Sub -Meter Discount and the ECA. SPECIAL CONDITIONS: (a) This rate is available only for mobile home park master metering in service prior to March 31, 1989. (b) It is the responsibility of the master --metered customer to notify the City Finance Department by the 5t day of each month of any change in the number of occupied mobile home park units wired for service on the first day of that month. 2 Tier 1 Tier 2 Tier 3 Beginning 0 392 >782 Tier kWh/month Ending Tier 391 782 kWh/month MASTER METER / SUB -METER DISCOUNT: For each occupied mobile home park unit, the park owner will receive a monthly discount in the amount of $3.00. ENERGY COSTAJIJSTMENT (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.175 Schedule ECA — Energy Cost Adjustment. BILLING CYCLE CHARGE (MONTHLY BILL): The Billing Cycle Charge is the sum of the Customer Charge (Master Meter Customer), the Energy Charge, the Master Meter / Sub -Meter Discount and the ECA. SPECIAL CONDITIONS: (a) This rate is available only for mobile home park master metering in service prior to March 31, 1989. (b) It is the responsibility of the master --metered customer to notify the City Finance Department by the 5t day of each month of any change in the number of occupied mobile home park units wired for service on the first day of that month. 2 EXHIBIT A (c) Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance, and other similar use incidental to the operation of the premises as a multi -family accommodation will be considered domestic use. (d) For the master -metered Customer to qualify for Single Household Alternative Rate for Energy (SHARE) and/or the Residential Medical Discount, the qualified sub -metered tenants of the master -metered Customer must submit the applicable application(s), including the tenant's unit number, to the City of Lodi Finance Department. The City of Lodi Finance Department will notify the master -metered Customer in writing of the tenant's certification for these programs. (e) For tenants who are on fixed incomes below $45,000 annually and who are over 62 years of age, and do not qualify for any other discount, a discount of 5% of the qualifying tenant's electric bill (Fixed Income Discount) shall be provided to the master -metered Customer. Procedures as to qualification will be established by the Electric Utility Department. (f) The master -metered customer, not the City of Lodi, is responsible for extending the SHARE, Residential Medical Discount, and Fixed Income Discount to tenants certified to receive them. If verification establishes that the SHARE, Residential Medical Discount, or Fixed Income Discount tenant is ineligible, the tenant will be removed from the master -metered Customer's qualified tenants and the City of Lodi may render corrective billings. (g) The master -metered Customer shall not bill any sub -metered tenant more than that tenant would be billed if that tenant were an individual customer of the City of Lodi. For a qualifying SHARE tenant, the master -metered Customer shall bill the qualifying tenant at the applicable rates equivalent to Schedule ED, Residential SHARE Program Service. For a tenant qualifying for a Residential Medical Discount, the master - metered Customer shall the bill the qualifying tenant in accordance with the provisions of Schedule MR, Residential Medical Discount. For tenants qualifying for a Fixed Income Discount, the master -metered Customer shall bill the qualifying tenant in accordance with the provisions of paragraph (e) herein. A tenant not qualified for any of the above discounts shall be billed using the rates and charges provided for in Schedule EM, Mobile Home Park Service, except the Master Meter / Sub -Meter Discount shall not be provided to tenants and the master -metered Customer shall not bill the tenant the Schedule EM, Mobile Home Park Service Customer Charge (Master Meter Customer). (h) With the exception of the Customer Charge provided for in Schedule EA, Residential Service, the master-meter/sub-meter rate discount provided herein prohibits further recovery by mobile home park owners for the costs of owning, operating and maintaining their electric sub -metered system. (i) Upon request, mobile home park owners must submit copies of their tenant billings to the City of Lodi for auditing to ensure compliance with this rate tariff, provided however that such requests shall not be made more often than semi-annually.