HomeMy WebLinkAboutAgenda Report - February 7, 1996 (93)OF
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Electric Utility Department Five -Year Planning Review
MEETING DATE: February 7, 1996
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council hear a presentation on the latest changes to federal,
regional, and state proposals on electric industry restructuring and potential
impacts on the City's Electric Utility Department.
BACKGROUND INFORMATION: Since the November 29, 1995, Electric Utility Department meeting with the City
Council, significant changes have taken place at the Federal Energy Regulatory
Commission (FERC) and the California Public Utility Commission (CPUC).
These changes and our competitors' equally significant responses to these
changes will have a profound impact on the way we do business in the future if we are to maintain local control and
keep our competitive edge.
Our strategy should be to stay ahead of industry expectations. Even though Lodi is not under CPUC regulatory
control, we should treat its deregulation schedule as if it were applicable to Lodi. This strategy helps prevent
surprises, provides for flexible, innovative solutions, and most importantly, allows us to meet our customers'
expectations and be a positive economic development tool.
The above strategy and requisite changes to the Electric Utility Department's current way of doing business have
been incorporated into the proposed five-year plan. Presentation overheads are included (Attachment A).
FUNDING: None required a�K
Alan N. Vallow
Electric Utility Director
ANV/JLS/pn
Attachment
Prepared by John L. Stone, Manager Rates and Resources
APPROVED:
H. DI — N FLYN
City Manager
CC -1
020796.CC2 January 31. 1996
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ATTACHMENT A
UNBUNDLED RATES
INDUSTRY RESTRUCTURING
• CPUC DECISION ISSUED DECEMBER 20, 1995
PRINCIPAL POINTS OF DECISION
• DIRECT ACCESS TO BEGIN IN 1998
• ESTABLISH OF INDEPENDENT
TRANSMISSION SYSTEM OPERATOR
• COMPETITIVE POWER MARKET
• PUBLIC PURPOSE PROGRAMS
• COMPETITION TRANSITION CHARGE
• RATE FREEZE
IMPLICATIONS FOR
LODI ELECTRIC UTILITY OPERATIONS
• LODI MUST CHANGE TO REMAIN COMPETITIVE
• ENHANCE SERVICES
• UNBUNDLE RATES
• DIRECT ACCESS
• FINANCE DISTRIBUTION FACILITIES