HomeMy WebLinkAboutAgenda Report - February 1, 2017 C-20 PHCITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
20
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AGENDA TITLE: Set Public Hearing for March 1, 2017 to Consider Introducing an Ordinance
Amending Lodi Municipal Code Chapter 13.20 — "Electrical Service" by Repealing
and Reenacting Article III "Rates" in its Entirety
MEETING DATE: February 1, 2017
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION:
BACKGROUND INFORMATION:
Set public hearing for March 1, 2017 to consider introducing an
ordinance amending Lodi Municipal Code Chapter 13.20 —
"Electrical Service" by repealing and reenacting Article III "Rates" in
its entirety.
In 2014, a 10 -year financial planning model was completed to
identify revenue requirements for the Lodi Electric Utility (LEU)
through 2024 which called for a five -percent rate increase to
address deferred maintenance and capital infrastructure needs of
the utility.
The five -percent increase was approved by the City Council and implemented effective January 2, 2015
across all electric utility rate classes. In addition, staff recommended annual inflationary increases of no
more than two percent through 2019 to be brought back to the City Council for consideration as the
financial model was updated and the need arose; it was noted at the time that the Council also preferred
smaller inflationary increases. The financial model has been updated through 2025 and is attached as
Exhibit A.
Rate revenue has been forecasted based on updated Toad projections, taking into consideration both the
loss of General Mills and additional growth resulting from new development and business expansion
within LEU's service territory.
Power supply costs comprise approximately 55 percent of LEU's annual budget. These expenses have
been forecasted based on costs associated with existing generation resources, transmission access
charges, and costs associated with meeting State mandates for greenhouse gas emissions and
Renewables Portfolio Standard requirements.
Non -power supply costs, including debt service, contributions to the General Fund, energy efficiency, and
operating and capital expenses, comprise the remaining 45 percent of LEU's annual budget. Operating
expenses, including labor and supply/material costs, continue to rise and have been projected to
increase annually between two and 2.5 percent.
Capital costs total over $20 million to address deferred maintenance and needed system improvements,
including: underground and overhead infrastructure; substation maintenance and improvements; vehicles
and equipment; streetlight repairs, maintenance, and LED replacements; security upgrades and
improvements; distribution capacity upgrades; implementation of a Meter Data Management System; and
APPROVED:
tephen
auer, City Manager
Set Public Hearing for March 1, 2017 to Consider Introducing an Ordinance Amending Lodi Municipal Code Chapter 13.20 —
"Electrical Service" by Repealing and Reenacting Article III "Rates" in its Entirety
February 1, 2017
Page 2 of 3
230 kV Interconnection Project planning. Not included in the model are design and construction costs
associated with the 230 kV Interconnection Project as it is anticipated that savings realized from reduced
transmission access charges will mitigate the debt costs associated with the project during this planning
period.
Based on projections, LEU is anticipated to experience an annual deficit ranging from approximately $1.5
million in FY 2016/17 to over $2 million by FY 2024/25. LEU cash reserves are projected to be reduced
from a current estimated $25.3 million in 2017 to $13 million by 2025.
Additional rate revenue is necessary to meet debt service coverage requirements, gradually close the
annual projected deficit for non -power supply costs, sufficiently fund deferred capital maintenance, and
meet reserve targets set forth by City Council policy and contractual requirements.
To provide the additional revenue as identified above, LEU is proposing a two percent increase, effective
May 1, 2017. Each year, the LEU reviews the Handy Whitman Index (HWI) to evaluate cost trends. The
HWI, published since 1924, calculates cost trends for various types of utility construction and provides an
index relative to the electric industry and even more specific to electric distribution systems. LEU did not
request an inflationary increase in 2016 as it was focused instead on a revenue neutral effort to better
align costs and charges. This proposed two percent increase will address inflationary trends for the past
two years but to a lesser extent than those indicated by the HWI for the past two years (3.3 percent and
1.5 percent).
Failure to approve the rate increases subjects the LEU to system reliability issues resulting from
additional deferred maintenance; an inability to meet reserve requirements; and possible downgrading by
rating agencies resulting in future higher costs — including those associated with the financing needed for
the 230 kV Interconnection Project.
An average residential customer using 550 kWh per month will see an increase of less than $2 per
month. Increases to commercial and industrial customers will vary depending on average use and
demand for each rate class.
Approving incremental adjustments such as this will help avoid future potential rate shock while
maintaining the financial integrity and bond rating of the City's Electric Utility.
LEU is also proposing modifications to Schedule ED (Residential SHARE Program Service), Schedule
EP (Energy Purchase), Schedule ES (City Facilities Service), and Schedule EV (Electric Vehicle Pilot
Charging Rate) to better align these schedules with the recent changes approved by City Council to
address the changing utility business model. With the exception of Schedule EP (Energy Purchase),
most of the proposed changes are administrative in nature.
For Schedule EP (Energy Purchase), staff proposes a mechanism by which to continue to compensate
customers who install self -generation such as solar, as LEU has reached the cap at which it is no longer
required by law to offer net energy metering (NEM). NEM is a billing mechanism which compensates
customer generators at the full retail rate for electricity they generate on-site. Doing so allows customers
to reduce and avoid charges on their electric bill while still remaining interconnected to LEU's distribution
grid, thus shifting costs to customers with no on-site generation. Based on the currently installed and
pending customer solar systems, that cost shift is estimated to be approximately $850,000 annually.
Since LEU has reached its cap, it is no longer required to offer NEM. A continuance of NEM, as currently
structured, will increase cost shifts to non -customer generators.
Set Public Hearing for March 1, 2017 to Consider Introducing an Ordinance Amending Lodi Municipal Code Chapter 13.20 —
"Electrical Service" by Repealing and Reenacting Article III "Rates" in its Entirety
February 1, 2017
Page 3 of 3
The new EP tariff does not affect current customer generators on LEU's existing NEM rate; these
customers will continue to receive compensation under the current NEM rate schedule 20 years from the
date of their system's interconnection. In summary, Schedule EP will require the customer to pay all
charges associated with their total consumption and be compensated for the full amount of their
generation at LEU's avoided cost. LEU will update its avoided cost annually and is currently calculating
what that initial cost will be. On November 15, 2016, City and LEU staff met with representatives from the
California Solar Energy Industries Association (CAL SEIA) as well as multiple solar contractors to discuss
the proposed Schedule EP. If approved, Schedule EP will be available to customers May 1, 2017. This
will provide sufficient time to meet all of the necessary public hearing requirements and draft new
specifications and interconnection requirements associated with the new tariff. LEU will continue to
accept solar and rebate applications for review. These applications will begin to be processed in the
order received once the final Schedule EP tariff is approved, the avoided cost calculations are complete
and all engineering specifications and interconnection requirements have been completed. LEU staff are
exploring the feasibility of other options (including billing capability, metering equipment requirements,
and compatibility with the City's current fixed network) and will bring those options back to Council for
their review and consideration at a later date.
This update to Article III — "Rates" will include all rate schedules whereas previously some of the
schedules were only referenced as exhibits to the ordinance and not actually displayed in the Lodi
Municipal Code. It is recommended these changes, along with the two percent rate increase, take effect
May 1,2017.
FISCAL IMPACT:
FUNDING AVAILABLE Not appllca•
L�
Eli abeth A. Kirkley
The proposed rate increase is anticipated to provide an additional
$11.7 million in rate revenue through 2025 as illustrated in Exhibit B.
A summary of the proposed changes is included as Exhibit C.
Actual revenue rw_Iized will depend on customer growth and energy
sales.
Electric Utility Director
PREPARED BY: Melissa Price, Rates & Resources Manager
EAK/MCP/Ist
LODI ELECTRIC UTILITY FINANCIAL FORECAST- BEFORE RATE ADJUSTMENT
EXHIBIT A
Account
15/16 Est Act
16/17 Est
17/18 Forecast
18/19 Forecast
19/20 Forecast
20/21 Forecast
21/22 Forecast
22/23 Forecast
23/24 Forecast
24/25 Forecast
Total Rate Revenue
$67,507,179
$68,526,450
$68,619,720
$68,990,448
$70,374,737
$71,980,232
$73,246,337
$74,351,202
$75,239,775
$72,745,393
Additional Rate Revenue from Proposed Adjustments
$0
$0
$0
50
$0
$0
$0
$0
$0
$0
Loan Proceeds
$1,500,000
$0
$0
50
50
$0
$0
$0
$0
$0
Other Revenue (Op and Non -Op)
$4,763,522
$3,754,790
$3,435,274
53,448,040
$3,289,166
$2,194,530
$1,037,250
$1,037,250
$1,037,250
$1,037,250
Total Revenue
$73,770,701
$72,281,240
$72,054,993
$72,438,488
$73,663,904
$74,174,761
$74,283,587
$75,388,452
$76,277,025
$73,782,643
Power Supply
$38,632,485
$40,434,980
$40,926,847
$41,159,111
$42,404,244
$43,869,886
$44,995,439
$45,959,050
$46,705,662
$44,068,610
Construction & Maintenance
$5,358,548
56,663,040
$6,838,295
$7,020,414
$7,209,804
$7,406,901
$7,559,800
$7,715,876
$7,875,195
$8,037,826
Engineering & Operations
$2,136,109
52,722,260
52,794,295
52,869,179
52,947,080
53,028,180
53,090,738
$3,154,596
$3,219,784
$3,286,327
Administrative & General (A&G)
51,717,043
$2,343,610
$2,399,264
$2,456,733
$2,516,111
$2,577,495
52,630,041
$2,683,662
$2,738,381
$2,794,221
In -Lieu Taxes
$7,082,070
$7,131,330
$7,181,249
$7,231,518
$7,282,139
$7,333,114
$7,384,445
$7,436,137
$7,488,190
$7,540,607
Internal Cost of Service
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
Capital Funded from Rates
$3,559,155
$4,500,711
$2,401,000
$3,121,000
$2,431,000
$2,161,000
$1,966,000
$1,375,000
$1,140,000
$1,140,000
Debt Service / Loan Repayment
$8,168,594
$5,528,520
$5,538,575
$5,523,125
$5,519,375
$5,514,000
$5,522,950
$5,510,025
$5,268,650
$5,264,275
Funding of Capital Reserves
$250,000
$250,000
$250,000
$250,000
$ -
$ -
$ -
$ -
$ -
$ -
Public Benefits/Solar
$1,603,767
$2,190,160
$1,611,763
$1,643,998
$1,676,878
$1,710,416
$1,744,624
$1,779,517
$1,815,107
$1,851,409
Total Expenses
$70,611,771
$73,868,611
$72,045,289
$73,379,079
$74,090,631
$75,704,991
$76,998,037
$77,717,863
$78,354,969
$76,087,275
Surplus/(Deficit)
$3,158,930
(51,587,371)
$9,705
($940,590)
($426,727)
(51,530,229)
(52,714,450)
(52,329,410)
(52,077,944)
($2,304,632)
15/16 Est Act 16/17 Est 17/18 Forecast 18/19 Forecast 19/20 Forecast 20/21 Forecast 21/22 Forecast 22/23 Forecast 23/24 Forecast 24/25 Forecast
Proposed Rate Adjustments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
Available Cash $26,936,574 $25,349,203 $25,358,908 $24,418,317 $23,991,591 $22,461,361 $19,746,911 $17,417,501 $15,339,557 $13,034,925
Council Reserve Requirement (90 Days) $17,776,000 $17,350,000 $17,411,072 $17,564,520 $17,914,908 $18,385,998 $18,758,009 $19,085,716 $19,303,742 $18,736,819
Days Cash 138 133 133 127 122 111 96 83 73 63
Council Reserve Funded )$IM Target) $ 250,000 $ 500,000 $ 750,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
Overall Target (90 Days, Capital, NCPA GOR - Approved by ROC) $ 23,155,000 $ 22,776,000 $ 22,911,072 $ 23,064,520 $ 23,414,908 $ 23,885,998 $ 24,258,009 $ 24,585,716 $ 24,803,742 $ 24,236,819
% of Target 116.3% 111.3% 110.7% 105.9% 102.5% 94.0% 81.4% 70.8% 61.8% 53.8%
LODI ELECTRIC UTILITY FINANCIAL FORECAST- AFTER RATE ADJUSTMENT (2%)
EXHIBIT B
Account
15/16 Est Act
16/17 Est
17/18 Forecast
18/19 Forecast
19/20 Forecast
20/21 Forecast
21/22 Forecast
22/23 Forecast
23/24 Forecast
24/25 Forecast
Total Rate Revenue
$67,507,179
$68,526,450
$68,619,720
$68,990,448
$70,374,737
$71,980,232
$73,246,337
$74,351,202
$75,239,775
$72,745,393
Additional Rate Revenue from Proposed Adjustments
$0
$189,640
$1,375,894
$1,383,327
$1,411,084
$1,443,276
$1,468,662
$1,490,816
$1,508,633
$1,458,618
Loan Proceeds
$1,500,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Revenue (Op and Non -Op)
$4,763,522
$3,754,790
$3,435,274
$3,448,040
$3,289,166
$2,194,530
$1,037,250
$1,037,250
$1,037,250
$1,037,250
Total Revenue
$73,770,701
$72,470,880
$73,430,887
$73,821,816
$75,074,988
$75,618,037
$75,752,250
$76,879,268
$77,785,658
$75,241,261
Power Supply
$38,632,485
$40,434,980
$40,926,847
$41,159,111
$42,404,244
$43,869,886
$44,995,439
$45,959,050
$46,705,662
$44,068,610
Construction & Maintenance
$5,358,548
$6,663,040
$6,838,295
$7,020,414
$7,209,804
$7,406,901
$7,559,800
$7,715,876
$7,875,195
$8,037,826
Engineering & Operations
$2,136,109
$2,722,260
$2,794,295
$2,869,179
$2,947,080
$3,028,180
$3,090,738
$3,154,596
$3,219,784
$3,286,327
Administrative & General (A&G)
$1,717,043
$2,343,610
$2,399,264
$2,456,733
$2,516,111
$2,577,495
$2,630,041
$2,683,662
$2,738,381
$2,794,221
In -Lieu Taxes
$7,082,070
$7,131,330
$7,181,249
$7,231,518
$7,282,139
$7,333,114
$7,384,445
$7,436,137
$7,488,190
$7,540,607
Internal Cost of Service
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
$2,104,000
Capital Funded from Rates
$3,559,155
$4,500,711
$2,401,000
$3,121,000
$2,431,000
$2,161,000
$1,966,000
$1,375,000
$1,140,000
$1,140,000
Debt Service / Loan Repayment
$8,168,594
$5,528,520
$5,538,575
$5,523,125
$5,519,375
$5,514,000
$5,522,950
$5,510,025
$5,268,650
$5,264,275
Funding of Capital Reserves
$250,000
$250,000
$250,000
5250,000
$ -
$ -
$ -
$ -
$ -
$ -
Public Benefits/Solar
$1,603,767
$2,190,160
$1,611,763
$1,643,998
$1,676,878
$1,710,416
$1,744,624
$1,779,517
$1,815,107
$1,851,409
Total Expenses
$70,611,771
$73,868,611
$72,045,289
$73,379,079
$74,090,631
$75,704,991
$76,998,037
$77,717,863
$78,354,969
$76,087,275
Surplus/(Deficit)
$3,158,930
($1,397,731)
$1,385,599
I $442,737
$984,357
($86,954)
(81,245,788)
($838,594)
(S569,311)
($846,014)
15/16 Est Act 16/17 Est 17/18 Forecast 18/19 Forecast 19/20 Forecast 20/21 Forecast 21/22 Forecast 22/23 Forecast 23/24 Forecast 24/25 Forecast
Proposed Rate Adjustments 0.0% 0.3% 1.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
Available Cash $26,936,574 $25,538,843 $26,924,441 $27,367,178 $28,351,535 $28,264,582 $27,018,794 $26,180,199 $25,610,888 $24,764,874
Council Reserve Requirement (90 Days) $17,776,000 $17,350,000 $17,411,072 $17,564,520 $17,914,908 $18,385,998 $18,758,009 $19,085,716 $19,303,742 $18,736,819
Days Cash 138 134 141 142 144 140 131 125 121 121
Council Reserve Funded )$IM Target) $ 250,000 $ 500,000 $ 750,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
Overall Target (90 Days, Capital, NCPA GOR - Approved by ROC) $ 23,155,000 $ 22,776,000 $ 22,911,072 $ 23,064,520 $ 23,414,908 $ 23,885,998 $ 24,258,009 $ 24,585,716 $ 24,803,742 $ 24,236,819
% of Target 116.3% 112.1% 117.5% 118.7% 121.1% 118.3% 111.4% 106.5% 103.3% 102.2%
EXHIBIT C
Lodi Electric Utility
Proposed 2017 Rate Changes Energy Tier(s) Rate(s)
Current Proposed
RESIDENTIAL - Schedule EA
Customer Charge N/A $ 10.00 $ 10.20
Energy Charge - Summer ($/kWh)
Tier 1 0 - 481 kWh / month $ 0.1400 $ 0.1428
Tier 2 482 - 962 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 962 kWh / month $ 0.3300 $ 0.3366
Energy Charge - Winter ($/kWh)
Tier 1 0 - 391 kWh / month $ 0.1400 $ 0.1428
Tier 2 392 - 782 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 782 kWh / month $ 0.3300 $ 0.3366
MOBILE HOME PARK - Schedule EM
Customer Charge (Master Meter Customer) N/A $ 1.00 $ 1.02
Energy Charge - Summer ($/kWh)
Tier 1 0 - 481 kWh / month $ 0.1400 $ 0.1428
Tier 2 482 - 962 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 962 kWh / month $ 0.3300 $ 0.3366
Energy Charge - Winter ($/kWh)
Tier 1 0 - 391 kWh / month $ 0.1400 $ 0.1428
Tier 2 392 - 782 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 782 kWh / month $ 0.3300 $ 0.3366
DUSK -TO -DAWN LIGHTING - Schedule EL
6,000 lumen gas discharge lamp (each) - per billing cycle N/A $ 12.76 $ 13.02
18,000 lumen gas discharge lamp (each) - per billing cycle N/A $ 23.69 $ 24.16
CITY FACILITIES - Schedule ES
Minimum Charge N/A $ 5.25 $
Customer Charge N/A $ - $ 10.20
Energy Charge ($/kWh) All kWh $ 0.10948 $ 0.10890
COMMERCIAL/INDUSTRIAL - Schedule G1 (< 8,000 kWh/month]
Customer Charge
Single -Phase Service N/A $ 7.35 $ 7.50
Three -Phase or Combination Service N/A $ 10.87 $ 11.09
Energy Charge ($/kWh)
Summer See Notes $ 0.18883 $ 0.19261
Winter See Notes $ 0.13965 $ 0.14244
COMMERCIAL/INDUSTRIAL - Schedule G2 (> 8,000 kWh/month)
Customer Charge N/A $ 59.20 $ 60.38
Demand Charge ($/kW) N/A $ 4.10 $ 4.18
Energy Charge ($/kWh)
Summer See Notes $ 0.15519 $ 0.15829
Winter See Notes $ 0.12423 $ 0.12671
COMMERCIAL/INDUSTRIAL - Schedule G3 -S (Secondary) (400 kW - 500 kW/month]
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 4.10 $ 4.18
Demand Charge - Winter ($/kW) N/A $ 4.10 $ 4.18
Peak Demand Charge - Summer ($/kW) N/A $ 11.47 $ 11.70
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.16890 $ 0.17228
Part -Peak See Notes $ 0.13528 $ 0.13799
Off -Peak See Notes $ 0.11621 $ 0.11853
Energy Charges Winter ($/kWh)
Part -Peak See Notes $ 0.12259 $ 0.12504
Off -Peak See Notes $ 0.11188 $ 0.11412
Page 1 of 3
EXHIBIT C
COMMERCIAL/INDUSTRIAL - Schedule G3 -P (Primary) (400 kW - 500 kW/month)
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 3.17 $ 3.23
Demand Charge - Winter ($/kW) N/A $ 3.17 $ 3.23
Peak Demand Charge - Summer ($/kW) N/A $ 10.76 $ 10.98
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.16280 $ 0.16606
Part -Peak See Notes $ 0.13086 $ 0.13348
Off -Peak See Notes $ 0.11274 $ 0.11499
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.11880 $ 0.12118
Off -Peak See Notes $ 0.10862 $ 0.11079
COMMERCIAL/INDUSTRIAL - Schedule G4 -S (Secondary) (500 kW - 1,000 kW/month]
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 4.10 $ 4.18
Demand Charge - Winter ($/kW) N/A $ 4.10 $ 4.18
Peak Demand Charge - Summer ($/kW) N/A $ 11.47 $ 11.70
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.15592 $ 0.15904
Part -Peak See Notes $ 0.12225 $ 0.12470
Off -Peak See Notes $ 0.10322 $ 0.10528
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.11031 $ 0.11252
Off -Peak See Notes $ 0.09969 $ 0.10168
COMMERCIAL/INDUSTRIAL - Schedule G4 -P (Primary) (500 kW - 1,000 kW/month)
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 3.17 $ 3.23
Demand Charge - Winter ($/kW) N/A $ 3.17 $ 3.23
Peak Demand Charge - Summer ($/kW) N/A $ 10.76 $ 10.98
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.14988 $ 0.15288
Part -Peak See Notes $ 0.11791 $ 0.12027
Off -Peak See Notes $ 0.09981 $ 0.10181
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.10657 $ 0.10870
Off -Peak See Notes $ 0.09647 $ 0.09840
COMMERCIAL/INDUSTRIAL - Schedule G5 -S (Secondary) (> 1,000 kW/month)
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 4.10 $ 4.18
Demand Charge - Winter ($/kW) N/A $ 4.10 $ 4.18
Peak Demand Charge - Summer ($/kW) N/A $ 11.47 $ 11.70
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.14365 $ 0.14652
Part -Peak See Notes $ 0.11005 $ 0.11225
Off -Peak See Notes $ 0.09311 $ 0.09497
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.09825 $ 0.10022
Off -Peak See Notes $ 0.09009 $ 0.09189
Economic Stimulus Rate Credit ($/kWh) All kWh $ 0.00431 $ 0.00440
COMMERCIAL/INDUSTRIAL - Schedule G5 -P (Primary) (>1,000 kW/month)
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 3.17 $ 3.23
Demand Charge - Winter ($/kW) N/A $ 3.17 $ 3.23
Peak Demand Charge - Summer ($/kW) N/A $ 10.76 $ 10.98
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.13794 $ 0.14070
Part -Peak See Notes $ 0.10602 $ 0.10814
Off -Peak See Notes $ 0.08993 $ 0.09173
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.09481 $ 0.09671
Off -Peak See Notes $ 0.08706 $ 0.08880
Economic Stimulus Rate Credit ($/kWh) All kWh $ 0.00431 $ 0.00440
Page 2 of 3
EXHIBIT C
EP ENERGY PURCHASE - Schedule EP
Compensation for customer owned generation N/A Contract Basis Avoided Cost
COMMERCIAL/INDUSTRIAL - OPTIONAL - Schedule 11 (>1,000 kW/month) - Special Conditions Apply
Customer Charge N/A $ 134.54 $ 137.23
Demand Charge - Summer ($/kW) N/A $ 3.17 $ 3.23
Demand Charge - Winter ($/kW) N/A $ 3.17 $ 3.23
Peak Demand Charge - Summer ($/kW) N/A $ 10.76 $ 10.98
Customers with demand < 4,000 kW:
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.14029 $ 0.14310
Part -Peak See Notes $ 0.10807 $ 0.11023
Off -Peak See Notes $ 0.09245 $ 0.09430
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.09972 $ 0.10171
Off -Peak See Notes $ 0.09177 $ 0.09361
Customers with demand >_ 4,000 kW
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.13378 $ 0.13646
Part -Peak See Notes $ 0.10156 $ 0.10359
Off -Peak See Notes $ 0.08594 $ 0.08766
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.09321 $ 0.09507
Off -Peak See Notes $ 0.08526 $ 0.08697
Economic Stimulus Rate Credit ($/kWh) All kWh $ 0.01359 $ 0.01386
ELECTRIC VEHICLE CHARGING SERVICE -Schedule EV
Minimum Charge N/A $ 5.25 $
Customer Charge N/A $ - $ 3.00
Energy Charge ($/kWh)
EV Charging Period
Non -EV Charging Period
NOTES:
Summer (May 1 through Oct 31)
Peak: 3 pm to 7 pm - Mon through Fri (except holidays)
Part -Peak: 8:30 am to 3 pm and 7 pm to 9:30 pm - Mon through Fri (except holidays)
Off -Peak: 9:30 pm to 8:30 am - Mon through Fri and all day Sat, Sun, holidays
Winter (Nov 1 through Apr 30)
Part -Peak: 8:30 am to 9:30 pm - Mon through Fri (except holidays)
Off -Peak: 9:30 pm to 8:30 am - Mon through Fri and all day Sat, Sun, holidays
EV Charging Period: 8 pm to 6 am - Mon through Fri (and all day weekends and holidays)
Non -EV Charging Period: 6 am to 8 pm - Mon through Fri (excluding weekends and holidays)
Schedule EA Tier
See Notes $ 0.14910 1 Energy Charge
Schedule EA Tier
See Notes $ 0.34650 3 Energy Charge
Holidays include: New Year's Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, the day after
Thanksgiving Day and Christmas Day. The dates will be based on those days on which the holidays are legally observed.
Page 3 of 3
Please immediately confirm receipt
o, f this. fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER INTRODUCING AN ORDINANCE
AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 - ELECTRICAL
SERVICE - BY REPEALING AND RE-ENACTING ARTICLE III, "RATES,"
IN ITS ENTIRETY
PUBLISH DATE: SATURDAY, FEBRUARY 4, 2017
LEGAL AD
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO:
LNS ACCT. #0510052
JENNIFER M. FERRAIOLO, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, FEBRUARY 2, 2017
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
PAMELA M. FARRIS
DEPUTY CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Emailed to the Sentinel at dianer@Iodinews.com at /D = ne) on e),/W/7(date) (pages)
LNS Phoned to confirm receipt of all pages at (time) EB PMF (initials)
forms\advins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE AMENDING LODI
MUNICIPAL CODE CHAPTER 13.20 — ELECTRICAL SERVICE — BY REPEALING
AND RE-ENACTING ARTICLE III, "RATES," IN ITS ENTIRETY
On Thursday, February 2, 2017, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider introducing ordinance amending Lodi Municipal
Code Chapter 13.20 — Electrical Service — by repealing and re-enacting Article III,
"Rates," in its 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 February 2, 2017, at Lodi, California.
PAMELA M. FARRIS
DEPUTYCITY CLERK
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
N:\Administration\CLERK\Public Hearings\AFFADAVITS\DECPOSTEUD.DOC
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: March 1, 2017
Time: 7:00 p.m.
l
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
EXHBIT A
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, March 1, 2017, 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 Chapter 13.20 —
Electrical Service — by repealing and re-enacting Article III, "Rates,"
in its 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:
w l ' . ,��
e nifer Ferraiolo
City Clerk •
Dated: February 1, 2017
Ap roved as to form:
Ja'hice-D: 'agdich
City Attorney
AVISO: Para obtener ayuda interpretativa con esta noticia, por favor Ilame a la oficina de la
Secretaria Municipal, a las (209) 333-6702.
CLERK\PUBHEAR\NOTICES\Noteud.doc 1/27/17
EXHIBIT C
Lodi Electric Utility
Proposed 2017 Rate Changes Energy Tier(s)Rate(s)
( )
Current Proposed
RESIDENTIAL -Schedule EA N/A $ 10.00 $ 10.20
Customer Charge
Energy Charge - Summer ($/kWh)
Tier 1 0 -481 kWh / month $ 0.1400 $ 0.1428
482 - 962 kWh / month $ 0.1550 $ 0.1581
Tier 2 > 962 kWh / month $ 0.3300 $ 0.3366
Tier 3
Energy Charge - Winter ($/kWh)
Tier 1 0 - 391 kWh / month $ 0.1400 $ 0.1428
Tier 2 392 - 782 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 782 kWh / month $ 0.3300 $ 0.3366
MOBILE HOME PARK - Schedule EM 1.00 $ 1.02
Customer Charge (Master Meter Customer) N/A $
Energy Charge - Summer ($/kWh)
Tier 1 0 -481 kWh / month $ 0.1400 $ 0.1428
Tier 2 482 - 962 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 962 kWh / month $ 0.3300 $ 0.3366
Energy Charge - Winter ($/kWh)
Tier 1 0 - 391 kWh / month $ 0.1400 $ 0.1428
Tier 2 392 - 782 kWh / month $ 0.1550 $ 0.1581
Tier 3 > 782 kWh / month $ 0.3300 $ 0.3366
DUSK -TO -DAWN LIGHTING - Schedule EL
6,000 lumen gas discharge lamp (each) - per billing cycle N/A $ 12.76 $ 13.02
18,000 lumen gas discharge lamp (each) - per billing cycle N/A $ 23.69 $ 24.16
CITY FACILITIES - Schedule ES
Minimum Charge N/A $ 5.25 $
Customer Charge N/A $ - $ 10.20
Energy Charge ($/kWh) All kWh $ 0.10948 $ 0.10890
COMMERCIAL/INDUSTRIAL - Schedule 61 (< 8,000 kWh month)
Customer Charge
Single -Phase Service N/A $ 7.35 $ 7.50
Three -Phase or Combination Service N/A $ 10.87 $ 11.09
Energy Charge ($/kWh)
See Notes $ 0.18883 $ 0.19261
Summer
Winter See Notes $ 0.13965 $ 0.14244
COMMERCIAL/INDUSTRIAL - Schedule 62 (> 8,000 kWh/month) N/A $ 59.20 $ 60.38
Customer Charge
Demand Charge ($/kW) N/A $ 4.10 $ 4.18
Energy Charge ($/kWh)
See Notes $ 0.15519 $ 0.15829
Summer
Winter See Notes $ 0.12423 $ 0.12671
COMMERCIAL/INDUSTRIAL- Schedule G3 -S (Secondary)(400 kW - 500 kW/month} N/A $ 134.54 $ 137.23
Customer Charge
Demand Charge - Summer ($/kW) N/A $ 4.10 $ 4.18
Demand Charge - Winter ($/kW) N/A $4.10 $ 4.18
Peak Demand Charge - Summer ($/kW) N/A $ 11.47 $ 11.70
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.16890 $ 0.17228
Part -Peak See Notes $ 0.13528 $ 0.13799
Off -Peak See Notes $ 0.11621 $ 0.11853
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.12259 $ 0.12504
Off -Peak See Notes $ 0.11188 $ 0.11412
Page 1 of 3
EXHIBIT C
COMMERCIAL/INDUSTRIAL -Schedule 63-P (Primary) (400 kW - 500 kWlmpnth} N/A $ 134.54 $ 137.23
Customer Charge N/A $ g,17 $ 3.23
Demand Charge -Summer ($/kW) N/A $ 3.17 $ 3.23
Demand Charge - Winter ($/kW) N/A $ 10.76 $ 13.23
Peak Demand Charge - Summer ($/kW)
Energy Charges - Summer ($/kWh)
See Notes $ 0.16280 $ 0.16606
Peak
See Notes $ 0.13086 $ 0.13348
Off--PPeakkSee Notes $
Part-Peak0.11274 $ 0.11499
Energy Charges - Winter ($/kWh)
See Notes $ 0.11880 $ 0.12118
Off -Peak
See Notes $
Part0.10862 $ 0.11079
COMMERCIAL/INDUSTRIAL - Schedule G4-5ISecondarv! (500 kW - 1,000 kW/month! N/A $ 134.54 $ 137.23
Customer Charge N/A $ 4.10 $ 4.18
Demand Charge - Summer ($/kW) .18
Demand Charge - Winter ($/kW) N/A $ N/A $ 1 .10 4.10 $ $ 11.70 44
Peak Demand Charge - Summer ($/k W)
Energy Charges - Summer ($/kWh)
See Notes $ 0.15592 $ 0.15904
Peak
See Notes $ 0.12225 $ 0.12470
Part -Peak
See Notes $ 0.10322 $ 0.10528
Off -Peak
Energy Charges - Winter ($/kWh)
See Notes $ 0.11031 $ 0.11252
Part -Peak
See Notes $ 0.09969 $ 0.10168
Off -Peak
COMMERCIAL/INDUSTRIAL - Schedule G4 -P (Primary) (500 kW -1,000 kW/month) N/A $ 134.54 $ 137.23
Customer Charge N/A $ 3.17 $ 3.23
Demand Charge - Summer ($/kW) N/A $ 3.17 $ 3.23
Demand Charge - Winter ($/kW) N/A $ 10.76 $ 10.98
Peak Demand Charge - Summer ($/kW)
Energy Charges - Summer ($/kWh)
See Notes $ 0.14988 $ 0.15288
Peak
See Notes $ 0.11791 $ 0.12027
Part -Peak
See Notes $ 0.09981 $ 0.10181
Off -Peak
Energy Charges - Winter ($/kWh)
Part-PeakSee Notes $ 0.10657 $ 0.10870
See Notes $ 0.09647 $ 0.09840
Off-Peak
COMMERCIAL/INDUSTRIAL - Schedule G5 -S (Secondary) (> 1,000 kW/month) N/A $ 134.54 $ 137.23
Customer Charge
Demand Charge - Summer ($/kW) N/A $ 4.10 $ 4.18
Demand Charge - Winter ($/kW) N/A $ 4.10 $ 4.18
Peak Demand Charge - Summer ($/kW) N/A $ 11.47 $ 11.70
Energy Charges - Summer ($/kWh)
See Notes $ 0.14365 $ 0.14652
Peak
See Notes $ 0.11005 $ 0.11225
PartPeak
See Notes $ 0.09311 $ 0.09497
Off -Peak
Energy Charges - Winter ($/kWh)
See Notes $ 0.09825 $ 0.10022
Part -Peak
Off -Peak See Notes $ 0.09009 $ 0.09189
Economic Stimulus Rate Credit ($/kWh) All kWh $ 0.00431 $ 0.00440
COMMERCIAL/INDUSTRIAL-Schedule G5 -P (Primary) (>1,000 kW/month) N/A $ 134.54 $ 137.23
Customer Charge N/A $ 3.17 $ 313
Demand Charge - Summer ($/kW)
Demand Charge - Winter ($/kW) N/A $ 3.17 $ 3.23
Peak Demand Charge - Summer ($/kW) N/A $ 10.76 $ 10.98
Energy Charges - Summer ($/kWh)
See Notes $ 0.13794 $ 0.14070
Peak
See Notes $ 0.10602 $ 0.10814
Part -Peak
See Notes $ 0.08993 $ 0.09173
Off -Peak
Energy Charges - Winter ($/kWh)
See Notes $ 0.09481 $ 0.09671
Part -Peak
See Notes $ 0.08706 $ 0.08880
Off -Peak
Economic Stimulus Rate Credit ($/kWh) All kWh $ 0.00431 $ 0.00440
Page2of3
EXHIBIT C
EP ENERGY PURCHASE - Schedule EP Contract Basis Avoided Cost
Compensation for customer owned generation N/A
COMMERCIAL/INDUSTRIAL - OPTIONAL - Schedule 11.(>1,000 kW/month) - Special Conditions Apply N/A $ 134.54 $ 137.23
Customer Charge N/A $ 3.17 $ 3.23
Demand Charge -Summer ($/kW)
Demand Charge - Winter ($/kW) N/A $ 3.17 $ 3.23
Peak Demand Charge - Summer ($/kW) N/A $ 10.76 $ 10.98
Customers with demand < 4,000_kW:
Energy Charges - Summer ($/kWh)
See Notes $ 0.14029 $ 0.14310
Peak
Part -Peak See Notes $ 0.10807 $ 0.11023
Off -Peak See Notes $ 0.09245 $ 0.09430
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.09972 $ 0.10171
Off-PeakSee Notes $ 0.09177 $ 0.09361
Customers with demand ? 4 000 kW
Energy Charges - Summer ($/kWh)
Peak See Notes $ 0.13378 $ 0.13646
Part -Peak See Notes $ 0.10156 $ 0.10359
Off -Peak See Notes $ 0.08594 $ 0.08766
Energy Charges - Winter ($/kWh)
Part -Peak See Notes $ 0.09321 $ 0.09507
Off -Peak See Notes $ 0.08526 $ 0.08697
Economic Stimulus Rate Credit ($/kWh) All kWh $ 0.01359 $ 0.01386
ELECTRIC VEHICLE CHARGING SERVICE -Schedule EV
Minimum Charge N/A $ 5.25 $
Customer Charge N/A $ - $ 3.00
Energy Charge ($/kWh)
EV Charging Period
Non -EV Charging Period
NOTES:
Summer (May 1 through Oct 31)
Peak: 3 pm to 7 pm - Mon through Fri (except holidays)
Part -Peak: 8:30 am to 3 pm and 7 pm to 9:30 pm - Mon through Fri (except holidays)
Off -Peak: 9:30 pm to 8:30 am - Mon through Fri and all day Sat, Sun, holidays
Schedule EA Tier 1
See Notes $ 0.14910 Energy Charge
Schedule EA Tier 3
See Notes $ 0.34650 Energy Charge
Winter (Nov 1 through Apr 30)
Part -Peak: 8:30 am to 9-30 pm - Mon through Fri (except holidays)
Off -Peak: 9:30 pm to 8:30 am - Mon through Fri and all day Sat, Sun, holidays
EV Charging Period: 8 pm to 6 am - Mon through Fri (and all day weekends and holidays)
Non -EV Charging Period: 6 am to 8 pm - Mon through Fri (excluding weekends and holidays)
Holidays include: New Year's Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, the day after
Thanksgiving Day and Christmas Day. The dates will be based on those days on which the holidays are legally observed.
Page 3 of 3