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Home My WebLink AboutAgenda Report - September 26, 2017 B-01 PH/SMTM CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: AGENDA ITEM' Set Public Hearing for October 18 , 2017 to Consider Introducing an Ordinance Amending Lodi Municipal Code Chapter 13.20 — "Electrical Service" by Repealing Section 13.20.185 — "Schedule CSS — California Solar Initiative Surcharge" and Reenacting as follows, "Schedule RES — Renewable Energy Surcharge" MEETING DATE: September 26, 2017 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Set a public hearing for October 18, 2017 to consider introducing an ordinance amending Lodi Municipal Code Chapter 13.20 — "Electrical Service" by repealing Section 13.20.185 — "Schedule CSS — California Solar Initiative Surcharge" and reenacting as follows, "Schedule RES — Renewable Energy Surcharge." BACKGROUND INFORMATION: In 2006, California Senate Bill 1 (SB 1), known as the California Solar Initiative (CSI), mandated all electric utilities to offer a solar photovoltaic program to provide incentives to support the development and installation of solar systems throughout each utility's service territory. Based upon the CSI funding requirements, Lodi Electric Utility's (LEU) annual obligation was approximately $600,000 from 2008 through 2017. The City Council chose to fund LEU's CSI program by approving the California Solar Initiative Surcharge (Schedule CSS), an additional rate schedule applied to all customer classes at $0.00125 per kilowatt hour, with effective dates of January 1, 2008 through December 31, 2017. LEU has successfully completed the CSI program requirements as mandated by SB 1. As of June 30, 2017, there are 694 customer -owned solar system installations with a total capacity of 7.5 MW; 641 residential and 53 commercial systems with capacities of 3.2 MW and 4.3 MW, respectively. While the CSI requirements are no longer in effect, the State of California has subsequently adopted new unfunded renewable energy requirements for electric service providers. The current Renewables Portfolio Standard (RPS) requires 50 percent renewable energy resources by 2030. With LEU's current resources, including historic carryover, its projection for 2030 is 30 percent; the average cost of meeting the current RPS requirements is estimated at $1.1 million annually. In addition, proposed RPS legislation would make this even more aggressive with a 50 percent requirement by 2025, 60 percent by 2030, and 100 percent carbon free by 2045; increasing the average annual impact by $1 million. The additional costs associated with RPS compliant energy could be partially offset by continuing the current surcharge. Therefore, staff recommends repealing and reenacting this rate schedule to take effect January 1, 2018, to assist in funding renewable energy requirements mandated by the State. This action would not increase customers' electric utility bills. APPROVED en .suer, City Manager Set Public Hearing for October 18, 2017 to Consider Introducing an Ordinance Amending Lodi Municipal Code Chapter 13.20 — "Electrical Service" by Repealing Section 13.20.185 — "Schedule CSS — California Solar Initiative Surcharge" and Reenacting as follows, "Schedule RES — Renewable Energy Surcharge" September 26, 2017 Page 2 of 2 FISCAL IMPACT: The proposed rate schedule change would not result in a rate increase for electric utility customers but would continue to provide approximately $600,000 in revenue annually to offset costs associated with renewable energy related mandates. FUNDING AVAILABLE: Not applicable. EAK/Ist Elizbe' . Kirk ey Electric Utility Director 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 CONSIDER INTRODUCING AN ORDINANCE AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING SECTION 13.20.185, "SCHEDULE CSS - CALIFORNIA SOLAR INITIATIVE SURCHARGE," AND REENACTING AS FOLLOWS, "SCHEDULE RES - RENEWABLE ENERGY SURCHARGE" (AS IDENTIFIED ON THE ATTACHED EXHIBIT A) PUBLISH DATE: SATURDAY, SEPTEMBER 30 AND OCTOBER 7, 2017 LEGAL AD TEAR SHEETS WANTED: One ) 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: TUESDAY, SEPTEMBER 26, 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 krystals@lodinews.com at ,(time) on (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 AN ORDINANCE AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING SECTION 13.20.185, "SCHEDULE CSS — CALIFORNIA SOLAR INITIATIVE SURCHARGE," AND REENACTING AS FOLLOWS, "SCHEDULE RES — RENEWABLE ENERGY SURCHARGE" (AS IDENTIFIED ON THE ATTACHED EXHIBIT A) On Tuesday, September 26, 2017, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider introducing an ordinance amending Lodi Municipal Code Chapter 13.20, "Electrical Service," by repealing Section 13.20.185, "Schedule CSS — California Solar Initiative Surcharge," and reenacting as follows, "Schedule RES — Renewable Energy Surcharge" (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 September 26, 2017, at Lodi, California. ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK PAMELA M. FARRIS ELIZABETH BURGOS DEPUTYCITY CLERK ADMINISTRATIVE CLERK N:\Administration\CLERK\Public Hearings\AFFADAVITS\DECPOSTEUD.DOC 1 CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: October 18, 2017 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 NOTICE IS HEREBY GIVEN that on Wednesday, October 18, 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) Consider introducing an ordinance amending Lodi Municipal Code Chapter 13.20, "Electrical Service," by repealing Section 13.20.185, "Schedule CSS — California Solar Initiative Surcharge," and reenacting as follows, "Schedule RES — Renewable Energy Surcharge" (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, 2"d 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: r• + 0 err fer M. ' raiolo Efty Clerk Dated: September 26, 2017 Approved as to form: 1 Janic D. Magdich City Attorney AVISO: Para obtener ayuda interpretativa con esta noticia, por favor (lame a la oficina de la Secretaria Municipal, a las (209) 333-6702. ..J CLERK\PUBHEAR\NOTICES\Noteud.doc 9/25/17 Exhibit A Proposed Renewable Energy Surcharge SECTION 13.20.185 SCHEDULE RES — RENEWABLE ENERGY SURCHARGE A. Applicability. This schedule is applicable to all electric customers served by the City of Lodi. Each customer shall pay the applicable rate(s) plus the Renewable Energy Surcharge (RES) for each kilowatt-hour (kWh) delivered and sold to the customer. The RES shall fund costs associated with the following activities: • Lodi Electric Utility's purchase of renewable and/or carbon free energy; • Community solar or other community renewable energy efforts; and/or • Customer incentives associated with renewable energy and/or distributed generation. B. Rates. A surcharge of $0.00125 will be applied to all kWh delivered and sold to each customer in all rate classes and shall not be discounted. All funds collected under this surcharge will be placed in an account solely for the purposes identified above.