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HomeMy WebLinkAboutAgenda Report - May 17, 2023 G-02 PH.¢ CITY OF 4 go, 011 it Z C A L ( F 0 R N I A AGENDA ITEM GoZ COUNCIL COMMUNICATION AGENDA TITLE: Public Hearing 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: May 17, 2023 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Public hearing to consider introducing an ordinance amending Lodi Municipal Code Chapter 13.20 — "Electrical Service" by repealing and reenacting Article III "Rates" in its entirety. BACKGROUND INFORMATION: Lodi Electric Utility (LEU) maintains a financial planning model which identifies the necessary rates and charges to be collected to ensure sufficient revenue requirements to cover the cost of providing electric service to Lodi residents and businesses. In 2015, LEU implemented a 5 percent rate increase across all utility rate classes to address deferred maintenance and capital infrastructure needs of the utility. At that time, staff recommended annual inflationary increases of no more than 2 percent through 2019 to be brought back to the City Council for consideration if the need arose. At that same time, City Council expressed a preference for smaller, inflationary Increases. In 2017, LEU returned to the City Council with an updated financial forecast through 2025 and a 2 percent rate increase was approved 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. Based on the utility's most current financial forecast through 2030, it Is projected that LEU reserves will fall below City Council approved reserve targets by 2024 with projected annual deficits ranging from $1.2 million to $3.8 million annually. Reserves have been steadily declining since 2020 for a number of reasons including the COVID pandemic, energy market instability and supply chain disruption. Approximately $2M was used in 2020 to provide utility bill relief in the form of bill credits during a period when customers were severely financially impacted by job losses/layoffs during COVID and $4.5M In reserves was used in 2021 and 2022 to mitigate rising energy prices that would have otherwise been passed on to customers through the Energy Cost Adjustment. Finally, since 2017, LEU has seen a significant increase in material costs associated with capital maintenance and infrastructure projects due to supply chain constraints with price increases ranging from 150 percent to over 200 percent. To provide the additional needed revenue to close projected deficits and maintain a financial reserve that meets City Council approved reserve targets in accordance with the City's adopted Budget and Fiscal Policy, LEU is proposing a 2 percent increase in Fiscal Year 2023/24 and an additional 2 percent increase In Fiscal Year 2024/25. 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 has not requested an inflationary base rate Increase since 2017. These proposed revenue Increases of approximately 2 percent per year will help address inflationary trends since 2017 but to a lesser extent than those indicated on average by the HWI for the same period — (4.9% in 2018; 3.4% in 2019; 5.7% in 2020; 4.8% in 2021; 11 % in 2022). APPROVED:,;,,..; Stephen Schwabauer, City Manager Public Hearing to Consider Introducing an Ordinance Amending Lodi Municipal Code Chapter 13.20- "Electrical Service" by Repealing and Reenacting Article III "Rates" in Its Entirety May 17, 2023 Page 2 LEU is proposing to collect the additional needed revenue through an increase to the monthly customer charge which is intended to cover the fixed costs of the utility - those costs that do not change based on the amount of energy a customer uses, LEU's annual budget is approximately $100 million; of which, approximately $14 million is attributed to fixed costs. LEU currently collects less than 30 percent of its fixed costs through monthly customer charges. The remainder is collected through variable energy rates. Increasing the monthly customer charge will help ensure better alignment of costs and charges as well as ensure revenue stability for the utility moving forward. Below is a summary of the proposed changes: In addition, similar changes are proposed to the current mobile home park rates for tenants In conjunction with changes to the master metered customer rates to ensure mobile home parks have equitable cost recovery for both tenants and park owners. Those changes Include eliminating the monthly pad discount of three dollars per month provided to mobile home park owners and increasing the monthly per pad fixed customer charge to the mobile home parks from $1.02 to $1,52 in Year 1 and $1.84 in Year 2, This will ensure adequate collection of costs from the mobile home park as LEU's customer and also provide for collection of costs from tenants by the master metered customer to maintain their park's distribution system which is owned and maintained by the individual mobile home park owner(s). 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. Failure to approve the proposed rate increases subjects LEU to system reliability issues resulting from potential delays associated with capital maintenance; an inability to meet reserve requirements; and possible downgrading by rating agencies resulting in future higher borrowing costs - including those associated with the financing needed for the 230 kV Interconnection Project. In addition, LEU's ability to transact in the energy markets through Northern California Power Agency is dependent on its ability to meet contractual program reserve requirements as well as malntain sufficient credit with the California Independent System Operator, Information on the proposed rate adjustments was provided to the Risk Oversight Committee on March 30, 2023. Information was also made available to the public on LEU's website and via a public hearing notice published on April 22, 2023. It is recommended the first year's increase take effect August 1, 2023 with the second year increases effective July 1, 2024 with the start of the Fiscal Year. FISCAL IMPACT: The proposed rate increase is anticipated to generate an additional $25 million in rate revenue through 2030. Actual additional revenue realized will depend on customer growth. FUNDING AVAILABLE: Not applicable. IPrim (IAay3, 202314:47 PDT) Jeff Berkheimer Electric Utility Director CurrenT(Mo4nthly) Proposed (FY 24) - 8/1/23 Proposed (FY 25) - 7/1/24 FixedFixed Fixed Char aChar a Av Bill Increase Char a Av Bill Increase Residential $10.20$14.50 $129.30 $4.30 $19.50 $134.30 $5.00 EV (Separate Meter) $3.00 $54 $4.50 1 $55,50 $1.50 $6.00 $57.00 $1.50 Small Commercial (Single Phase $7.50 $15.50 $123.00 $8.00 $20.50 $128.00 $5.00 Small Commercial Three Phase $11.09 $23.50 $278.41 $12.41 $31.50 $286.41 $8,00 Medium ]$74,880 _Commercial $60.38 $77.00 $4,871.62 $16.62 $103.50 $4,898.12 $26.50 Large Commercial/ Industrial $137.23 $235.50 $74978.27 $98.27 $316.50 75 059.27 $81.01 Cit $10.20 $20.00 $492.80 $9.80 $27.00 I$499.80 $7.00 In addition, similar changes are proposed to the current mobile home park rates for tenants In conjunction with changes to the master metered customer rates to ensure mobile home parks have equitable cost recovery for both tenants and park owners. Those changes Include eliminating the monthly pad discount of three dollars per month provided to mobile home park owners and increasing the monthly per pad fixed customer charge to the mobile home parks from $1.02 to $1,52 in Year 1 and $1.84 in Year 2, This will ensure adequate collection of costs from the mobile home park as LEU's customer and also provide for collection of costs from tenants by the master metered customer to maintain their park's distribution system which is owned and maintained by the individual mobile home park owner(s). 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. Failure to approve the proposed rate increases subjects LEU to system reliability issues resulting from potential delays associated with capital maintenance; an inability to meet reserve requirements; and possible downgrading by rating agencies resulting in future higher borrowing costs - including those associated with the financing needed for the 230 kV Interconnection Project. In addition, LEU's ability to transact in the energy markets through Northern California Power Agency is dependent on its ability to meet contractual program reserve requirements as well as malntain sufficient credit with the California Independent System Operator, Information on the proposed rate adjustments was provided to the Risk Oversight Committee on March 30, 2023. Information was also made available to the public on LEU's website and via a public hearing notice published on April 22, 2023. It is recommended the first year's increase take effect August 1, 2023 with the second year increases effective July 1, 2024 with the start of the Fiscal Year. FISCAL IMPACT: The proposed rate increase is anticipated to generate an additional $25 million in rate revenue through 2030. Actual additional revenue realized will depend on customer growth. FUNDING AVAILABLE: Not applicable. IPrim (IAay3, 202314:47 PDT) Jeff Berkheimer Electric Utility Director ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 – ELECTRICAL SERVICE – BY REPEALING AND REENACTING ARTICLE III, "RATES," IN ITS ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS' SECTION 1. Lodi Municipal Code Chapter 13.20 – Electrical Service is hereby amended by repealing and reenacting Article III. "Rates" in its entirety and shall read as follows: Article III. – Rates 13.20.175 Applicability. 13.20.180 Schedule ECA—Energy Cost Adjustment. 13.20.185 Schedule CSS—California Solar Initiative Surcharge. 13.20.190 Schedule EA—Residential Service. 13.20.200 Schedule ED—Residential SHARE Program Service. 13.20.210 Schedule EM—Mobilehome Park Service. 13.20.220 Schedule MR—Residential Medical Rider. 13.20.225 Schedule NEM—Net Energy Metering Rider. 13.20.227 Conversion of Prior Schedule CEM—Co-Energy Metering Rider. 13.20.230 Schedule EL—Outdoor Dusk -To -Dawn Lighting. 13.20.231 Schedule LD—Outdoor Dusk -to -Dawn Lighting (LED). 13.20.235 Schedule ES—City Facilities Service. 13.20.240 Schedule G1—General Service—Group 1 Commercial/Industrial. 13.20.250 Schedule G2—General Service—Group 2 Commercial/Industrial. 13.20.260 Schedule G3—General Service—Group 3 Commercial/Industrial. 13.20.270 Schedule G4—General Service—Group 4 Commercial/Industrial. 13.20.280 Schedule G5—General Service—Group 5 Commercial/Industrial. 13.20.290 Schedule EP—Energy Purchase. 13.20.300 Schedule SS—Standby Service. 13.20.310 Schedule 11—General Service—Group 5 Commercial/Industrial—Optional. 13.20.315 Schedule EDR—Economic Development Rates. 13.20.320 Reserved. 13.20.325 Schedule EV—Electric Vehicle Charging Service. 13.20.330 Reserved. 13.20.175 APPLICABILITY. The sale of electric energy by the City shall be at the rates set forth in this article. 13.20.180 SCHEDULE ECA—ENERGY COST ADJUSTMENT. A. Applicability. This schedule is applicable to all electric customers served by the City of Lodi. Each customer shall pay the applicable rate plus an energy cost adjustment (ECA) for each kilowatt-hour (kWh) delivered to the customer. The adjustment shall be the product of the total kilowatt-hours (kWh) for which the bill is rendered times the ECA amount per kWh. The purpose of the ECA is to adjust for increases/decreases to the City of Lodi's wholesale energy costs. This adjustment provides a mechanism to recover increased costs for wholesale energy or to lower collections when costs decrease below the base charge level. B. Rates: Effective July 6, 2007, the ECA billing factor for any given month shall be calculated as follows: Where: ECA= (a) + (b) - (c)(d+f) - (f) (e) a. equals the amount the City of Lodi is actually charged by the Northern California Power Agency for the billing month, including adjustments for prior billing periods, less any third party revenue credits. b. equals the City of Lodi's estimated costs related to the acquisition of wholesale power, both financial and physical, procured directly by the city for the billing month, including adjustments for prior billing periods. C equals the difference between actual retail energy sales and projected sales levels for the month which is two months prior to the billing month. d. equals the ECA billing factor for the month which is two months prior to the billing month. e. equals the forecast of projected retail energy sales for the billing month. equals the baseline energy cost for the city of $0.0831. The City of Lodi will recalculate the ECA each month, and resulting amount shall be automatically implemented for bills rendered during the following billing month. The ECA shall not be discounted. SCHEDULE 1-1 FIXED ECA OPTION: Customers must elect this option prior to the start of the twelve-month cycle (July -June) and must be billed for the entire twelve months under this option. Customers may opt out in the May prior to the next twelve-month billing period. The City of Lodi will calculate a fixed ECA based on projected sales divided by the budgeted NCPA all resource bill for the upcoming twelve-month period (July -June) minus eight point three one (8.31) cents. The resulting amount shall be automatically implemented for bills rendered during the eleven billing months beginning in July and ending in May. The June billing shall include a true -up for the actual ECA billed in the same eleven -month period and the actual ECA for the month of June. 13.20.185 SCHEDULE CSS—CALIFORNIA SOLAR INITIATIVE 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 California Solar Initiative Surcharge (CSS) for each kilowatt-hour (kWh) delivered to the customer. The CSS shall fund incentives for customers participating in the Lodi Solar Rebate Pilot Program. California Senate Bill 1 (SB 1) mandates that all electric utilities offer a solar photovoltaic program that provides incentives to support the development and installation of solar systems throughout their given service territory. Based upon SB 1 funding requirements, Lodi Electric Utility shall make available approximately six hundred thousand dollars annually between the years 2008 — 2017. B. Rates. Effective on all bills rendered on or after January 1, 2008 until December 31, 2017, a surcharge per kilowatt-hour (kWh) will be applied to all kWh sold. The CSS shall be applied to all kWh sold and will be non -discounted. The surcharge amount of $0.00125 will be applied to all kWh consumed by each customer in all rate classes. All funds collected under this surcharge will be placed in an account solely for the purpose of implementing the Lodi Solar Rebate Pilot Program. 13.20.190 SCHEDULE EA—RESIDENTIAL SERVICE. A. 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. B. Rates: Customer Charge Effective August 1, 2023........... $14.50 Customer Charge Effective July 1, 2024 .............................................. $19.50 Energy Charge is by Tier of Mh_usage: Tier 1 Tier 2 1 Tier 3 $/kWh 1 $0.1428 Summer (Mav through October) Enerav Tiers $0.1581 1 $0.3366 Tier 1 Tier 2 Tier 3 Be inning Tier kWh/month 0 482 >962 Ending Tier kWh/month 481 _ 962 1 3 Winter (November through April) Energy Tiers Tier 1 1 Tier 2 I Tier 3 Beginning Tier kWh/month 1 0 392 >782 Ending Tier kWh/month 1 391 782 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The Billing Cycle Charge is the sum of the Customer Charge, the Energy Charge and the ECA. E. 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. F. 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. 13.20.200 SCHEDULE ED—RESIDENTIAL SHARE PROGRAM SERVICE. A. Applicability. Applicable to domestic service in single-family and multi -family dwellings separately metered by the City of Lodi where the customer meets all the special conditions of this rate schedule including those on discontinued all electric SHARE rate schedule, EF. B. Rates. Customers under this schedule will have bills computed using the EA rate schedule less a 30% discount. C. Energy Cost Adjustment (ECA). An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA - Energy Cost Adjustment. 4 D. Billing Cycle Charge (Monthly Bill). The billing cycle charge is the sum of the customer charge, the energy charge and the ECA. E. Special Conditions. 1. 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. 2. This rate does not apply to service used for common area and facilities in multi- family dwellings. 3. Single Household Alternative Rate for Energy (SHARE) Eligibility: To be eligible to receive SHARE an applicant must complete an application and qualify based on the income eligibility criteria for state of California Low Income Home Energy Assistance Program. 4. Completed applications must be submitted to the City of Lodi finance department. The City of Lodi finance department shall certify the eligibility of all applicants. 5. All applicants will be required to certify income eligibility for the SHARE program. Customers must sign a statement upon application indicating that the City of Lodi may verify the customer's eligibility at any time. If verification established that the customer is ineligible, the customer will be removed from the program and the City of Lodi may render corrective billings. 6. An additional discount is available as described in Schedule MR, Residential Medical Discount. 13.20.210 SCHEDULE EM—MOBILEHOME PARK SERVICE. A. Applicability: This schedule is applicable to service supplied to mobile home parks through one meter and sub -metered to all individual mobile home units. B. Rates: Customer Charge (Master Meter Customer) Effective August 1, 2023 ............. $1.52 per individual mobile home park unit. Customer Charge (Master Meter Customer) Effective July 1, 2024: _ ...... ------- $1.84 per individual mobile home park unit. Energy Charge is by Tier of kWh usage: Tier 1 Tier 2 Tier 3 5 $/kWh 1 $0.1428 1 $0.1581 1 $0.3366 Summer (May through October Energy Tiers Tier 1 Tier 2 Tier 3 Be inning Tier kWh/month 0 482 >962 Ending Tier kWh/month 481 962 Winter (November through April) Energy Tiers Tier 1 Tier 2 Tier 3 Beginning Tier kWh/month 0 392 >782 Endinq Tier kWh/month 391 782 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill) The Billing Cycle Charge is the sum of the Customer Charge JMaster Meter Customer), the Energy Charge, and the ECA. E. Special Conditions: This rate is available only for mobile home park master metering in service prior to March 31, 1989. 2. It is the responsibility of the master -metered customer to notify the City Finance Department by the 5th 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. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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 and the master -metered Customer shall not bill the tenant the Schedule EM, Mobile Home Park Service Customer Charge (Master Meter Customer). 8. With the exception of the Customer Charge provided for in Schedule EA, Residential Service, this Schedule EM prohibits further recovery by mobile home park owners for the costs of owning, operating and maintaining their electric sub - metered system. 9. 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. 13.20.220 SCHEDULE MR—RESIDENTIAL MEDICAL RIDER. A. Applicability: Qualifying residential customers on Schedule EA are entitled to a discount of 25% from the total bill. Qualifying residential customers on Schedule ED are entitled to a discount of 5% from the total bill. Master -metered customers with qualifying tenant(s) on Schedule EA are entitled to a discount of 25% per billing cycle (monthly bill) for each qualifying household or mobile home unit. Master -metered customers with qualifying tenant's' on Schedule ED are entitled to a discount of 5% per billing cycle (monthly bill) for each qualifying household or mobile home unit. If a customer or full-time resident in the home or mobile home unit has one or more of the medical conditions listed below, contact the Electric Utility Department to request a City application, "Declaration of Eligibility for Medical Discount." Only one medical discount adjustment per household or mobile home unit is available. B. Qualifying Conditions - 7 To qualify for the Medical Discount, the customer will be required to submit a completed City application, including the certification of a doctor of medicine or osteopathy licensed to practice in the State of California that a customer or other full time resident in the home is: a. Dependent on a life-support device used in the home. Paraplegic, hemiplegic, or quadriplegic person having special air-conditioning needs. C. A multiple -sclerosis patient with special heating or air-conditioning needs. d. Medical conditions other than multiple sclerosis, paraplegia, hemiplegia, or quadriplegia may qualify customers for medical quantities for electric heating or air conditioning. Any such conditions will be reviewed on an individual basis. C. Life Support Devices: A life support device is any medical device necessary to sustain life or relied upon for mobility. To qualify under this schedule, the device must be used in the home and must run on electricity supplied by the City of Lodi. The term "life support device" includes, but is not limited to respirators, iron lungs, hemodialysis machines, suction machines, electric nerve stimulators, pressure pads and pumps, aerosol tents, electrostatic and ultrasonic nebulizers, compressors, IPPB machines and motorized wheelchairs. D. Heating and Air Conditioning: Special heating and/or air-conditioning needs will qualify for a Medical Discount only if the main source of energy for heating or air conditioning is electricity supplied by the City of Lodi. E. Medical Discount for Mobile Home Park Service Customers Residential tenants of mobile home park service customers can also qualify for Medical Discount. If one or more of the customer's tenant(s) have a medical condition that qualifies under the conditions listed above, contact the Electric Utility Department to apply. Any Medical Discount must be passed on to the qualifying tenant(s) when tenants are billed for the electricity they use. 13.20.225 SCHEDULE NEM—NET ENERGY METERING RIDER. A. Purpose. The purpose of this rider is to establish rates, terms, and conditions for providing net metering services to customers generating electricity using solar and wind facilities of one MW or less in size. This rider complies with California State legislation requiring every electric utility in the state, including municipally -owned utilities, to develop a standard contract or tariff providing for net energy metering, as defined below. B. Applicability. This schedule is applicable to service for customers where a part or all of the electrical requirements of the customer can be supplied from a solar or wind power 8 production source owned and operated by the customer (customer -generated). Availability of this schedule to eligible customer -generators will be on a first-come, first-served basis and will be available until such time the total rated generating capacity used by eligible customer - generators equals five percent of the City of Lodi aggregate customer annual peak demand. The solar or wind generation source must: 1) have a capacity of one MW or less, 2) be located on the customer -generator's premises, 3) be connected for parallel operation with Lodi's distribution facilities, and 4) be intended for the sole purpose of offsetting a part or all of the customer -generator's own electrical requirements. In no case shall the power or energy generated by the customer -owned solar or wind source be available for resale, except as specified under this rider. Additional terms and conditions for service, including terms of interconnection and parallel operation, are specified in a customer -specific Electrical Interconnection and Net Energy Metering Payment Agreement. C. Rates. Charges for electricity supplied by the city will be based on metered usage in accordance with special conditions (D)(3) and (5) below. Rates charged under this schedule will be in accordance with the eligible customer -generator's otherwise applicable rate schedule. Public benefit charges and monthly customer charges shall not be by -passable. D. Special Conditions. Other Agreements. A signed electrical interconnection and net metering payment agreement between the customer -generator and the city is required for service under this schedule. 2. Metering Equipment. Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions. If customer's existing electrical meter is not capable of measuring the flow of electricity in two directions, the customer -generator shall be responsible for all expenses involved in purchasing and installing a meter that is capable of measuring electricity in both directions. Co -energy metering customers transferred to net metering pursuant to Section 13.20.227 of this code, may remain on the dual meter system. Net energy metering customers, at their election may opt for the dual meter system. 3. Net Energy Metering and Billing. Net energy is defined as measuring the difference between the electricity supplied by the city through the electric grid to the eligible customer -generator and electricity generated by an eligible customer - generator and fed back into the electric grid over a twelve-month period. In the event that the electricity supplied by the city during the twelve-month period exceeds the electricity generated by the eligible customer -generator during the same period, the eligible customer is a net electricity consumer and the city shall bill the customer for the net consumption during the twelve-month period based on the retail price per kilowatt-hour for eligible customer - generator's rate class over the same period. The city shall provide the customer -generator with net electricity consumption information on each regular bill. That information shall include the current amount owed to the city for the net electricity consumed. Customer -generator may exercise the option to pay monthly for the net energy consumed, but in any event shall be responsible for any payments due at the end of each twelve- month period. 4. Attributes. Any capacity attributes or environmental attributes associated with the renewable energy produced by the customer -generator at sites subject to this schedule shall belong to the city with the sole exception of renewable energy credits for solar and wind generation up to the amount of on-site consumption. Capacity attributes include, but are not limited to, system resource adequacy capacity and local resource adequacy capacity, if any. Environmental attributes include, but are not limited to, renewable portfolio standard recognition, renewable energy credits, greenhouse gas credits, and emission reduction credits, if any. 5. Excess Energy. Net energy metering will be administered on an annualized basis, beginning with the month of interconnection of the customer's generating system with the city's electrical system. Electric solar and wind generation production may result in a dollar credit carrying forward to the next billing period. If a credit accumulation results in a net customer -owned generation credit at the end of the annualized year, unused dollar credits will be set to zero and not be carried into the new annualized year unless the customer -generator affirmatively elects to be paid for such excess. If the customer -generator so elects, the city shall either pay the customer -generator or credit the customer generator's account for such excess at the baseline energy cost rate specified in Schedule ECA plus the energy cost adjustment rate averaged for the billing periods with excess generation. 6 Rules and Regulations. Other conditions specified in the City of Lodi electric utility department's rules, regulations and engineering standards shall apply to this electric rate schedule. 13.20.227 CONVERSION OF PRIOR SCHEDULE CEM—CO-ENERGY METERING RIDER. A. On the effective date of this [ordinance no. 1853], customer generators on the city's prior schedule CEM co -metering rider will be converted to the city's schedule NEM -net energy metering rider. In calendar year 2011, the annual net energy bill as provided in Subsection 13.20.225(D)(3) of this code, shall be calculated retroactive to January 1, 2011, and the annual excess energy credit or payment (if any) shall be calculated retroactive to January 1, 2011. 13.20.230 SCHEDULE EL—OUTDOOR DUSK -TO -DAWN LIGHTING. A. Applicability: This schedule is applicable to City -owned and maintained outdoor overhead area lighting service. Dusk -to -Dawn lighting may not be used for street lighting purposes. B. Rates: For each 6,000 lumen gas discharge lamp ..... $13.02 per billing cycle 10 For each 18,000 lumen gas discharge lamp .................................. $24.16 per billing cycle C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): a. Lamps shall be approximately 6,000 or 18,000 lumen gas discharge with luminaire and bracket, as specified by the City of Lodi Electric Utility Department, and shall be supported on City -owned poles which are used to carry distribution system circuits for other City purposes and shall be at locations approved by the City of Lodi. Lamps will be controlled from dusk to dawn each night so as to give approximately 4,380 hours of service annually. b. Upon receipt of notice from a customer of failure of light to operate as scheduled, the City of Lodi Electric Utility Department will, within a reasonable period of time, make the necessary repairs. C. Relocation of existing outdoor lighting service equipment or the installation of additional facilities required other than mentioned in (a) above shall be at customer's expense prior to starting work. 13.20.235 SCHEDULE ES—CITY FACILITIES SERVICE. A. Applicability: This schedule is applicable only to those city facilities currently on schedule ES. B. Rates: Customer Charge Effective August 1, 2023 .............................. $20.00 Customer Charge Effective July 1, 2024 ................................... $27.00 Energy Charge per kWh ........................................................ $0.10890 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The billing cycle charge is the sum of the Customer Charge, the Energy Charge, and the ECA. SECTION 13.20.231 SCHEDULE LD – OUTDOOR DUSK -TO -DAWN LIGHTING (LED) A. Applicability. This schedule is applicable to city -owned and maintained light emitting diode (LED) outdoor overhead area lighting service. LED dusk -to -dawn lighting may not be used for street lighting purposes. 11 B. Rates: For each LED lamp up to and including 50 watts: $7.69 per billing cycle For each LED lamp over 50 watts up to and including 110 watts: $11.14 per billing cycle For LED outdoor dusk -to -dawn lighting with lamps exceeding 110 watts, the City of Lodi Electric Utility will calculate and supply the monthly billing cycle charge(s) following the method used herein, accounting for actual wattage of the proposed lamp. For lighting efficiency and energy conservation, all existing customers taking service under Schedule EL – Outdoor Dusk -to -Dawn Lighting will have existing non -LED lamps replaced and will be required to take service under this Schedule LD – Outdoor Dusk -to - Dawn Lighting (LED) effective the first billing cycle following lamp replacement. The City of Lodi will replace non -LED lamps upon the earlier of failure, damage, or end of useful life. C. The charges above include all applicable surcharges. D. Billing Cycle Charge (Monthly Bill): (1) Lamps shall be as specified by the City of Lodi Electric Utility, and shall be supported on city -owned poles which are used to carry distribution system circuits for other city purposes and shall be at locations approved by the City of Lodi. Lamps will be controlled from dusk to dawn each night so as to give approximately four thousand three hundred eighty hours of service annually. (2) Upon receipt of notice from a customer of failure of light to operate as scheduled, the City of Lodi Electric utility will, within a reasonable period, make the necessary repairs. (3) Relocation of existing outdoor lighting service equipment or the installation of added facilities required other than mentioned above shall be at customer's expense prior to starting work. 13.20.240 SCHEDULE G1—GENERAL SERVICE—GROUP 1 COMMERCIAL/ INDUSTRIAL. A. Applicability: This schedule is applicable to customers with single-phase or three-phase service, or to a combination thereof, whose energy consumption does not exceed 8,000 kilowatt-hours (kWh) per billing cycle for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Assignment to Schedule: If, in the judgment of the City, an account is expected to have usage below 8,000 kWh per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. If energy consumption equals or exceeds 8,000 kWh for three consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. If the demand reaches or 12 exceeds 400 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule. B. Rates: Customer Charge: (per meter per billing cycle) Single -Phase Service Effective August 1, 2023 ....................... Single -Phase Service Effective July 1, 2024 ............................. Three -Phase or Combination Service Effective August 1, 2023 Three -Phase or Combination Service Effective July 1, 2024.... Energy Charge: ($ per kWh) Summer (May through October)............................$0.19261 Winter (November through April) ...........................$0.14244 C. Energy Cost Adjustment (ECA): ....... $15.50 ....... $20.50 $23.50 $31.50 An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Community Benefits Incentive Discount: G1 -Non-profit (as defined in Federal Internal Revenue 501 (c) (3)) Industrial/Commercial customers who are currently receiving Federal Community Development Block Grant funds or have received such funds not more than two years before preparation of the current billing cycle charge are eligible for the following discount on Energy and Demand charges: July 1, 1996 and after...............................................................30% It is the customer's responsibility to notify the Finance Department of this eligibility. This discount may not be used in conjunction with any other incentive discount. E. Billing -Cycle Charge (Monthly Bill): The billing cycle charge is the sum of the Customer Charge, the Energy Charge and the ECA. 13.20.250 SCHEDULE G2—GENERAL SERVICE—GROUP 2 COMMERCIAL/INDUSTRIAL. A. Applicability: This schedule will be applied to accounts with energy consumption in excess of 8,000 kilowatt-hours (kWh) for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Billing Demand: The billing demand in any billing cycle will be the maximum average power taken during any metering interval in the period, but not less than the diversified resistance welder load. (The customary metering interval is 15 minutes; in cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used.) 13 Assignment to Schedule: If, in the judgment of the City, an account is expected to have usage over 8,000 kWh per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such changes. If energy consumption drops below 8,000 kWh and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate schedule. If the billing demand reaches or exceeds 400 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule as soon as practicable. B. Rates: Customer Charge Effective August 1, 2023: (per meter per billing cycle).-.... $77.00 Customer Charge Effective July 1, 2024: (per meter per billing cycle):...... $103.50 Demand Charge: All kW of billing demand, per kW $ 4.18 Energy Charge: (per kWh) Summer (May through October) .......I ..................... $0.15829 Winter (November through April) ......... $0.12671 Energy Cost_Adiustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. C. Voltage Discount: When delivery is made at the same primary distribution voltage as that of the line from which the service is supplied, a 4% discount will be allowed on the sum of the Demand Charge and the Energy Charge. D. Community Benefits Incentive Discount: G2 -Non-profit (as defined in Federal Internal Revenue 501 (c) (3)) Industrial/Commercial customers who are currently receiving Federal Community Development Block Grant funds or have received such funds not more than two years before preparation of the current billing cycle charge are eligible for the following discount on Energy and Demand charges: July 1, 1996 and after ............................................ 30% It is the customer's responsibility to notify the Finance Department of this eligibility. This discount may not be used in conjunction with any other incentive discount. E. Billing Cycle Charge (Monthly Bill): 14 The billing cycle charge is the sum of the Customer Charge, the Demand Charge, the Energy Charge, the ECA and the voltage discount, if applicable. 13.20.260 Schedule G3—General Service—Group 3 Commercial/Industrial. A. Applicability: This schedule shall be applied to accounts with billing period demands of between 400 kilowatts (kW) and 500 kW for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment to Schedule: If, in the judgment of the City, an account is expected to have billing period demand of 400 kW or more and less than 500 kW per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such changes. If billing period demand drops below 400 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. If billing period demand reaches or exceeds 500 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule. B. Rates: Customer Charge Effective August 1, 2023 (per meter per billing cycle): $235.50 Customer Charge Effective July 1, 2024 (per meter per billing cycle): $316.50 Service Voltage: I Secondary (G3 -S) Season: , Summer f Winter Demand Char es Per kW of peak period demand Per kW of billing period demand ierciv Charaes: Peak Period (per kWh) Partial peak period (per kWh) $11.70 $ 4.18 $ Prima G3 -P Summer Winter -- J $ 10.98 4.18 $ 3.23 $0.17228 -- $0.13799 $0.12504 15 $0.16606 $0.13348 $ 3.23 $0.12118 Off peak period (per kWh) _ $0.11853 $0.11412 $0.11499 $0.11079 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: The billing cycle charge for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment: 1. Customer Charge: The Customer Charge is a flat monthly fee 2. Demand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both Demand Charges. Time periods are defined below. 3. Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's off peak hours. The bill will include all of these Energy Charges. Time periods are defined below. 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service voltages are defined below. E. Definition of Service Voltage: The service voltage classes are: (a) Primary: Service Voltage class for service at 12,000 volts (nominal). (b) Secondary: Service Voltage class for service at available voltages below 12,000 volts (nominal). F. Power Factor Adjustment: liEv Bills will be adjusted for billing cycle average power factor as follows: The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power factor of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as follows: SUMMER: (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER: (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. 13.20.270 SCHEDULE G4—GENERAL SERVICE—GROUP 4 COMMERCIAL/INDUSTRIAL. A. Applicability: 17 This schedule shall be applied to accounts with billing period demands of between 500 kilowatts (kW) and 1,000 kW for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment to Schedule: If, in the judgment of the City, an account is expected to have billing period demand between 500 kW and 1,000 kW per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such changes. If billing period demand drops below 500 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. If billing period demand reaches or exceeds 1,000 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule. B. Rates: Customer Charge Effective August 1, 2023 (per meter per billing cycle): $235.50 Customer Charge Effective July 1, 2024 (per meter per billing cycle): $316.50 Service Voltage: Seconda G4 -S) I Prima G4 -P) Season: Summer I Winter I Summer I Winter Demand Charges: Per kW of peak period demand $11.70 -- $ 10.98 Per kW of billing period demand $ 4.18 $ 4.18 $ 3.23 $ 3.23_ 1 Energy Char es: Peak Period (per kWh) j Partial peak period (per kWh) Off peak period (per kWh) $0.15904 1 -- 15288 1 -- $0.12470 $0.11252 $0.12027 $0.10870 $0.10528 1 $0.10168 C. Energy Cost Adjustment (ECA): $0.10181 1 $0.09840 An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. 18 D. Types of Charges: The billing cycle charge for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment: Customer Charge: The Customer Charge is a flat monthly fee. 2. Demand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both of these Demand Charges. Time periods are defined below. I Ener Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's off peak hours. The bill will include all of these Energy Charges. Time periods are defined below. 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service Voltages are defined below. E. Definition of Service Voltage: The service voltage classes are: (a) Primary: Service Voltage class for service at 12,000 volts (nominal). (b) Secondary: Service Voltage class for service at available voltages below 12,000 volts (nominal). F. Power Factor Adjustment: Bills will be adjusted for billing cycle average power factors as follows: The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power factor of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 19 Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as follows: SUMMER (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. 13.20.280 SCHEDULE G5—GENERAL SERVICE—GROUP 5 COMMERCIAL/INDUSTRIAL. A. Applicability: This schedule shall be applied to accounts with billing period demands of 1,000 kilowatts (kW) or more for three consecutive months, unless the customer elects an optional rate schedule the account would otherwise qualify. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment_ to Schedule: If, in the judgment of the City, an account is expected to have billing period demand of 1,000 kW or more per billing cycle, the City has the option of placing the account immediately on this schedule. 20 When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such change. If billing period demand drops below 1,000 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. B. Rates: Customer Charge Effective August 1, 2023 (per meter per billing cycle): Customer Charge Effective July 1, 2024 (per meter per billing cycle): $235.50 $316.50 Service Voltage: Secondary G5 -S) Prima G6 -P) Season: Summer Winter Summer Winter Demand Charges: Per kW of peak period demand $11.70 -- $10.98 -- Per kW of billing period demand $ 4.18 $ 4.18 $ 3.23 $ 3.23 Energy Charges: Peak Period (per kWh) $0.14652 -- $0.14070 -- Partial peak period (per kWh) $0.11225 $0.10022 $0.09189 $0.10_81_4 $0.09173 $0.09671 _ Off peak period (per kWh) $0.09497 $0.08880 Economic Stimulus Rate Credit: (per kWh) $0.00440 $0.00440 $0.00440 $0.00440 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: The billing cycle for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment. Customer Charge: The Customer Charge is a flat monthly fee. 2. Demand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any 21 metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both of these Demand Charges. Time periods are defined below. 3. Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's off peak hours. The bill will include all of these Energy Charges. Time periods are defined below. 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service Voltages are defined below. E. Definition of Service Voltage: The service voltage classes are: (a) Primary: Service Voltage class for service at 12,000 volts (nominal). (b) Secondary: Service Voltage class for service at available voltages below 12,000 volts (nominal). F. Power Factor Adjustments: Bills will be adjusted for billing cycle average power factor as follows: The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power factor of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as follows: SUMMER: (May 1 through October 31) 22 Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER: (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. 13.20.290 SCHEDULE EP—ENERGY PURCHASE. APPLICABILITY: This schedule is applicable to qualifying customer -owned and operated generating alternating current (AC) facilities operating in parallel with the City's electric distribution system. The customer -generator must currently be, or will be, served by the City of Lodi Electric Utility (LEU). Generating facilities must be rated 1 MWcec-AC or less, located on the customer -generator's premises, and intended for the purpose of offsetting a part or all of the customer -generator's own electrical requirements. In no case shall the energy, capacity, and/or other attributes be available for resale by the customer. This schedule is available only to customers who do not otherwise qualify for compensation for customer -owned generation under another LEU rate schedule or contract. RATES: Energy Charges: Customer will be billed for all usage at the applicable service rate in effect when the electric service was rendered in accordance with the eligible customer -generator's otherwise applicable 23 rate schedule based on metered usage for energy delivered and received after the customer - generator serves its own instantaneous load. Enerpv Purchase Credit Credit will be provided to the customer for all metered customer -generated energy that exceeds the energy consumed, and is therefore exported to LEU's distribution system, at a rate equal to the avoided cost to LEU; the specific value of which will be determined and updated annually by LEU based on the following components: avoided energy and transmission costs, environmental attribute value (if applicable, based on generation type), avoided system loss, and avoided capacity value. Energy Purchase Credit values will be published each year by June 1 on LEU's website and provided to customers receiving service under this schedule. The above charges and credits will be determined in accordance with LEU's metering specifications. LEU reserves the right to install additional metering equipment for statistical and/or billing purposes. BILLING: For each billing month, the customer shall receive a bill including all applicable Energy Charges, including, but not limited to, customer charges, energy charges, demand charges, and any surcharges, taxes, and/or discounts in accordance with their otherwise applicable rate schedule. The bill will also include all applicable Energy Purchase Credits which shall be used to offset the Energy Charges in a given billing month. Any credit(s) remaining at the end of each billing month shall carry forward and be applied to the customer's next monthly electric bill. Any outstanding charges will be due and payable at the end of each billing month. Monthly customer charges, public benefit charges, and all other surcharges shall be non -bypassable. SPECIAL CONDITIONS: Other conditions shall apply to this schedule as specified in the City of Lodi Electric Utility Department's Rules and Regulations, as updated from time to time, and Engineering Standards and Specifications (including metering requirements) which are available for review on LEU's website. Customers will be responsible for any and all metering and interconnection charges as required to provide service under this schedule. Said charges will be determined and updated annually by LEU and be based on the cost(s) associated with providing service under this schedule. A schedule of charges will be available on LEU's website. Any capacity or environmental attributes associated, now or in the future, with the credited excess energy produced by the customer -generator at sites subject to this schedule shall belong to the City. Capacity attributes include, but are not limited to, system, local, and/or flexible resource adequacy capacity, if any. Environmental attributes include, but are not limited to, Renewables Portfolio Standard eligible resources, renewable energy credits, greenhouse gas credits, and/or emission reduction credits, if any. LEU reserves the right to require a contract should it determine the customer -owned generator does not otherwise meet the specified applicability requirements to qualify under this schedule or another LEU rate schedule. 24 Customers currently taking service under Schedule NEM shall continue to be billed in accordance with Schedule NEM for 20 years from the date of interconnection of their existing customer -owned generation facility, after which time they will be given the option to take service under this Schedule EP in order to continue to receive credit for their customer -owned generation. 13.20.300 SCHEDULE SS—STANDBY SERVICE. A. Applicability: This schedule is applicable to commercial/industrial customers who would otherwise qualify for Schedule G2, G3, G4, G5, or 11 and who have privately -owned generating facilities with a combined nameplate rating greater than one megawatt (1 MW) on their premises and where the city must stand ready to supply electric service to replace such a facility. This schedule will apply in addition to any other schedule applicable to the customer of record; any multiple generation facilities for one customer of record will be under one contract. B. Service by Contract: Service under this schedule shall be provided on a contract basis to commercial/industrial customers who have privately- owned generating facilities on their premises. Contracts shall be subject to terms approved by the city council and shall obligate the customer to pay the city for its costs associated with providing standby service for the actual life of the privately -owned generating facilities and for three months following written notice to the City of Lodi Electric Utility of the removal of the privately -owned generating facilities from operation. 13.20.310 SCHEDULE 11—GENERAL SERVICE—GROUP 5 COMM ERCIAL/INDUSTRIAL- OPTIONAL. A. APPLICABILITY: This schedule is an optional rate for accounts who would otherwise qualify for primary service under the G5 rate schedule with billing period demands of 1,000 kilowatts (kW) or more for three consecutive months. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute period interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assi.qnment to Schedule: Assignment to this schedule is at the option of the customer and does not supersede any standby service contracts. This rate schedule is prospective and not subject to rebate or retroactivity. When a customer chooses to be assigned to this schedule, the customer elects the City of Lodi (City) to be the sole electric power requirements provider of choice. The customer must give the City three year written notice before the customer can elect to use another electric power requirements provider. 25 When a customer has a measurable incremental permanent load increase of 200 kW or greater, over the highest billing period demand in the previous twelve (12) months the customer will be eligible for a ten (10) percent discount on the incremental Demand and Energy charges. Such billing change will be made as soon as practicable after verification of said changes and is not subject to rebate or retroactivity. It shall be the responsibility of the customer to notify the City of any such change. When an account billed on this schedule qualifies for another City bundled rate schedule, the customer may elect to be billed on that other rate schedule. When a customer chooses to be assigned to another bundled rate a three-year written notice is still required before the customer can elect to use another electric power requirements provider. If the billing period demand drops below 1,000 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule and the customer will be subject to the requirements of the appropriate schedule, rather than Schedule 11. B. Rates, Customer Charge Effective August 1, 2023 (per meter per billing cycle): Customer Charge Effective July 1, 2024 (per meter per billing cycle): Summer $235.50 $316.50 Peak period(per kWh $0.13646 -- Service Voltage: Season: Prima (11-P Summer Winter $0.09507 Off peak period(per kWh $0.08766 Demand Charges: Per kW of peak period demand Per kW of billing period demand $10.98 $ 3.23 $ 3.23 $0.01386 Energy Charges: < 4000 kW Summer Winter Peak period(per kWh $0.14310 -- Partial peak period(per kWh $0.11023 $0.10171 Off peak period(per kWh $0.09430 $0.09361 2_4000 kW Summer Winter Peak period(per kWh $0.13646 -- Partial peak period(per kWh $0.10359 $0.09507 Off peak period(per kWh $0.08766 $0.08697 Economic Stimulus Rate Credit: (per kWh) $0.01386 $0.01386 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: 26 The billing cycle charge for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment: Customer Charge: The Customer Charge is a flat monthly fee. 2. Demand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both of these Demand Charges. Time periods are defined below. 3. Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh used during the billing cycles off peak hours. The bill will include all of these Energy Charges. Time periods are defined below. 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service Voltage is defined below. E. Definition of Service Voltage: The service voltage class: a Primary: Service Voltage class for service at 12,000 volts (nominal). F. Power Factor Adjustments: Bills will be adjusted for billing cycle average power factor as follows: The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power factor of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: 27 Times of the year and times of the day are defined as follows: SUMMER: (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER: (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. SECTION 13.20.315 SCHEDULE EDR - ECONOMIC DEVELOPMENT RATES Applicability: A. New Business Rate (NBR) Discount. NBR discount, applicable to any new commercial or industrial customer that locates their operations/business in the City of Lodi and receives electric utility service from the City of Lodi, with the following stipulations: a customer assigned to the G1 electric utility rate shall receive a discount for twelve consecutive months of twenty-five dollars per month; and, customers assigned to the G2, G3, G4, G5, or 11 electric utility rate shall receive a discount for twelve consecutive months of five percent; and this rate discount may not be combined with any other electric discount or rate, including but not limited to the NJR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. B. New Jobs Rate (NJR) Discount. NJR discount, applicable to any commercial or industrial customer that adds a minimum of one full-time position, and retains that position for at least twelve consecutive months, with the following stipulation; a two percent discount for one to three new positions; four percent discount for four to six new positions; six percent discount for seven to nine positions; eight percent discount for ten to twenty new positions. NJR discount, applicable to any commercial or industrial customer that adds twenty-one to thirty new, full-time positions, and retains those positions for twenty-four consecutive months, an eight percent discount; that adds thirty-one to forty positions and retains those positions for thirty-six consecutive months, an eight percent discount; that adds forty-one to fifty positions and retains those positions for forty-eight months, an eight percent discount; and that adds greater than fifty positions and retains those positions for sixty 28 consecutive months, an eight percent discount. The discount will remain in effect if the number of new positions remain funded for the corresponding time period. The maximum discount available is eight percent; all discounts and time periods the discount remains in effect are contingent on the number of new, full-time employees added at the time of application; all discounts are subject to submission and validation of reports, as specified by the City. This rate discount may not be combined with any other electric discount or rate, including but not limited to the NBR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. C. The rate schedules referenced above shall be effective on applicable electric utility billings prepared by the City of Lodi on or after January 1, 2022. 13.20.320 - Reserved. 13.20.325 Schedule EV—Electric Vehicle Charging Service. A. Applicability: This schedule is applicable to single-phase electric vehicle charging service in single- family and multi -family dwellings separately metered by the City. B. Rates: Customer Charge Effective August 1, 2023: ............ Customer Charge Effective July 1, 2024: ................. Energy Charge; EV Charging period (per kWh) Non -EV Charging period (per kWh) C. Energy Cost Adjustment (ECA): ......................... $4.50 ......................... $6.00 Schedule EA Tier 1 Energy Charge Schedule EA Tier 3 Energy Charge An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The billing cycle charge is the sum of the Customer Charge, the Energy Charge and the ECA. E. Definition of Time Periods: Times of the day are defined as follows: EV Charging period: 8:00 p.m. to 6:00 a.m. Monday through Friday (and all day weekends and holidays). Non -EV Charging period: 6:00 a.m. to 8:00 p.m. Monday through Friday (excluding weekends and holidays). 29 13.20.330 Reserved. 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. Effective Date and Publication. This Ordinance shall take effect on August 1, 2023. 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 7T" day of June, 2023 ATTEST: MIKEY HOTHI Mayor OLIVIA NASHED City Clerk State of California County of San Joaquin, ss. I, Olivia Nashed, 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 May 17, 2023 and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held June 7, 2023, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 30 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 as to Form: OLIVIA NASHED City Clerk JANICE D. MAGDICH City Attorney jdm Signature:""' Janice dich(May 3,202312:18 PDT) Email: jmagdich@lodi.gov 31 Public Hearing Lodi Electric Utility � Rate Adjustment Lodi city council May V, 2023 CITY of O ELECTRIC UTILITY Jeff Berkheimer Electric Utility Director imConsulting a GOS Associates Company Russ Schneider Senior Project Manager Agend LEU Overview o Financial Challenges o Rate History o Rate Setting Principles o Proposed Rates and Methodology c Rate Comparisons o Summary o Recommendation CIT, or �''� • 4 Z CALIFORNIA ELECTRICfUTILITY 2 Lodi Electric Utility Overview o Community owned; not-for-profit Purchase and deliver energy Operate and maintain distribution system Provide customer programs and assistance c& Approximately 28,000 accounts 0 14 sauare mile service territory CITI or •�' O Z CALIFORNIA ELECTRICfUTILITY o -$1 00M annual budget o Financially support City services through PILOT Police, Fire, Parks, Libraries ci Rates and charges set by ordinance of the City Council Not subject to Prop 218 3 LEU's Costs and Charges 10% 17i FY 23 Annual Budget 4%1 2% 7%--\ ■ Power Supply ■ Distribution System ■ Employee Costs ■ Cost of Service ■ Customer Programs ■ PILOT 57% ■ Debt CIT- or �•�' O Z CALIFORNIA ELECTRICfUTILITY Costs collected through fixed monthly charge, energy charges and demand charges Energy Cost Adjustment (ECA) increases or decreases based on change in power supply costs 0 CIT, or Financial Challenge - CALIFORNIA ELECTRIC UTILITY Declining Reserves o Reserves projected to fall below Counci approved reserve targets by 2024 Expenditures outpacing revenue resulting in annual deficits $45.0 $40.0 $35.0 $30.0 o $25.0 $20.0 $15.0 $10.0 $ 5.0 Lodi Ele 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Fiscal Year -Cash Reserves Reserve Target 5 CIT, or Financial Challenges • CALIFORNIA ELECTRIC �/UTILITY J Declining Reserves o Colliding macro -economic factors outside of local control COVID relief Reserves used to provide customer bill credits Unstable energy markets Reserve used to reduce impact of ECA to customers Supply chain disruptions and inflation Increases in capital and maintenance costs leading to additional draw down of reserves P. Financial Challenges Inflation -Electric Sector Comparison of Base Rate Increases to Cost Index 6% 4.9% 2% 0% - 2018 5.7% 3.4% 4.8% 2019 2020 2021 Base Rate Increases —HWI Cost Index 1 1.0% 2022 CIT- or •?' O Z CALIFORNIA ELECTRICfUTILITY Handy -Whitman Index Bulletin No. 196 through July 2022 - Total Distribution Plant Cost Index 7 Financial Challenges Cost Escalation Material Cost Increases % Incre< Transformers (Each) 40��. •. $4.74 $11.97 153 $0.18 $0.47 161 C17Y OF §taco CALIFORNIA ELECTRIC fuTILITY Power ($/MWH) $33.50 $101.00 201% $2.97 $9.30 213 �?!r O /Z Financial Challenges • CALIFORNIA ELECTRIClUTILITY Cost Pressures LEU carries -$14M in fixed costs PILOT, Cost of Service, Metering/Billing, Admin Costs NOT dependent on amount of energy used Currently collect less < 300 of these costs through fixed charges Financial forecast shows need to collect additional 2% of revenue in FY24 and FY25 Proposing to collect additional needed revenue through increases to fixed monthly customers charges for all customer classes E Rate History c, Last base rate increase (2%) in 2017 Limited fixed cost recovery CITY OF CALIFORNIA ELECTRIC 'U7iurY Most additional revenue recovery since has been due to ECA recovery and some growth Those sources are no longer sufficient to meet future financial requirements o LEU worked with EES to provide rate change recommendations that conform to: Best practices for rate making Limiting rate impacts Achieving better cost recovery for services that create fixed and other unavoidable costs for LEU a Rate Setting Principles 9111W A • Based • No profit incentive for customer owned utility • Maintain fiscal responsibility to cover costs CITY OF zodi ~ ♦_ASI F OR N IA ELEvrRICfUTIurY Revenue • • • • • Gradual increases allow for better forecasting of Predictability revenues; allow customers to plan ahead • Fixed charges for fixed costs, variable charges for variable costs encourage efficient use of system Methodology and Proposed Rates CITY DF CALIFpkNIA ELECTRIC fUTILITY o EES examined appropriate weighted increases based on the current Residential Fixed Charge and 2% overall increase Considered cost of meters, rate impacts, and complexity of service Current Fixed Charge Year 1 Year 2 Fixed Charge $/month/meter Increase Increase Target Residential $10.20 $4.30 $5.00 $19.50 EV (Separate Meter) $3.00 $1.50 $1.50 $6.00 Commercial 1P $7.50 $8.00 $5.00 $20.50 Commercial 3P $11.09 $12.41 $8.00 $31.50 Commercial G2 $60.38 $16.62 $26.50 $103.50 Industrial $137.23 $98.27 $81.01 $316.50 City I $10.20 $9.80 $7.00 $27.00 12 CGre or 4AV♦ rBillImpCALIFe a e acs ELECTRICfUTILITY Res EV Comm Comm Comm 3P In 1P G2 CURRENT Fixed Charge $10.20 $3.00 $7.50 $11.09 $60.38 $137.23 $10.20 Average Bill $125 $54 $115 $266 $4,855 $74,880 $483 YEAR 1 Fixed Charge $14.50 $4.50 $15.50 $23.50 $77.00 $235.50 $20.00 Average Bill $129.30 $55.50 $123 $278.41 $4,871.62 $74,978.27 $492.80 Increase $4.30 $1.50 $8.00 $12.41 $16.62 $98.27 $9.80 YEAR 2 Fixed Charge $19.50 $6.00 $20.50 $31.50 $103.50 $316.50 $27.00 Average Bill $134.30 $57.00 $128.00 $286.41 $4,898.12 $75,059.27 $499.80 Increase $5.00 $1.50 $5.00 $8.00 $26.50 $81.01 $7.00 13 Customer Charge Comparison Residential Monthly Fixed or Minimum Charge $35.00 $25.00$23.50 $24.53 $25.00 $20.00$19.50 $20.00 $17.00 $17.70 $18.11 . , $15.00 $1O.00 $10.20 $10.48 1 $10.00 $5.25 $5.38 $7.07 $5.00 $4.05 $5.00 ' $0.00 G\aia r ����y � J�� °❑ a�a ��❑ati ❑P�a �'O Ok wA 01,❑�a� ��❑�Q p�° qa ❑�S G G G G G G°�� Qo�❑ O Oe G G'\` 10, PG&E proposing to implement income -based fixed charges in 2024 ranging from $15 to $92 per month $30.00 $30.00 HE Rate Actions of Others Average Rate Increases by Utility 35.0% 30.0% 25.0% S!a 20.0% 15.0% 30.0% 10.0% 20.0% 10.8% 5.0% 0.0% ■ Redding SMU❑ MID Roseville PG&E Lompoc ■ 2022 Rate Increase ■ 2023 Rate Increase ■ 2024 Rate Increase SMUD proposing additional -5.5% in 2025 CITY of �! o Z CALIFORNIA ELECTRICfUTILITY 15 Other Considerations Mobile Home Parks ce Parks must bill according to state requirements and can't bill more than the direct -connect charges, but can bill up to the fixed charges even if actual cost is less c Important to align rate change so that mobile park tenants are not disadvantaged by change Requires adjustment to pad fees and credits Remove $3 pad discount - no longer appropriate with overall fixed charge increase $1.02 pad charge increase Based on the G 1 & G2 average increase Current Fixed Pad Charge Year 1 Year 2 Fixed Charge $/month pad Increase Increase Target $1.02 $0.50 $0.32 $1.84 flu C", or r ?�O Financial Forecast CALIFORNIA ELECTRICfUTILITY without Rate Adjustments �=MIM�PWO% lq� Revenue $97,721,730 $97,432,770 $97,931,302 $99,688,332 $101,467,956 $103,292,768 Expenses $102,359,083 $100,355,800 $99,093,017 $101,344,908 $103,652,873 $106,018,199 Surplus (Deficit) ($4,637,353) ($2,923,030) ($1,161,715) ($1,656,576) ($2,184,917) ($2,725,431) Available Cash $30,603,773 $27,680,743 $26,519,028 $24,862,452 $22,677,535 $19,952,103 Days Cash 121 108 101 93 83 71 of Target 118% 103% 96% 88% 79% 68% 17 Financial Forecast with 2 -Year Rate Adjustment CITY OF *zoo ' CALIFO RNIA ELECTRICfUTILITY now -"WMWP1"W"NqVPM Revenue $97,721,730 $99,269,363 $101,706,580 $103,530,467 $105,378,482 $107,273,256 Expenses $102,359,083 $100,355,800 $99,093,017 $101,344,908 $103,652,873 $106,018,199 Surplus (Deficit) ($4,637,353) ($1,086,437) $2,613,562 $2,185,560 $1,725,609 $1,255,057 Available Cash $30,603,773 $29,517,336 $32,130,898 $34,316,458 $36,042,066 $37,297,123 Days Cash 121 115 122 128 131 133 % of Target 118% 110% 117% 122% 126% 128% 18 c c Cost Mitigation Debt Service Reduction o Refinance of debt in 2018 Managing Vacancies Forward Energy Purchases u Lock in fixed contracts to reduce market price risk Flexible Procurement Strategy o LEU Director purchasing limit increased by Council to streamline and expedite purchases o Larger quantities purchased to mitigate long lead times and price escalation CIT, or �•�' O Z CALIFORNIA ELECTRICfUTILITY z CITY OF • CALIF ELECTRICuT❑ILRINTYFinancialRisks withoutRateIA Increase Reduced Liquidity Unable to Meet Council Approved Reserve Target Credit Rating Risk Increase to future borrowing costs (230 kV Project) Increased Costs to Transact in Energy Market Inability to maintain sufficient collateral with CAISO will lead to cash call Impacts to System Reliability Capital maintenance deferral Contract Risk Unable to meet NCPA Contractual Program Reserve Requirements Delaying a rate increase will require larger increases in future years IN Summary CITY OF CALIFORNIA ELECTRIC UTILITY o Proposed rates are reasonable and provide proper adjustment for customers Higher fixed cost recovery Provides revenue stability c Proposed rates are competitive o Reduces cross -subsidization by aligning higher fixed costs with higher fixed recovery o Ensures adequate reserves to meet: Council reserve targets Contractual requirements Capital infrastructure and asset maintenance needs M2 Recommendation CITY OF CALIFORNIA ELEvrRic fUTILITY ce, Introduce ordinance Amending Lodi Municipal Code Chapter 13.20 - "Electrical Service" by Repealing and Reenacting Article III "Rates" in its Entirety Year 1 changes effective August 1, 2023 Year 2 changes effective July 1, 2024 22 SUBJECT: PUBLISH DATE: Please immediately confirm receipt of this, fax by calling 333-6702 CITY OF LODI P. O. BOX 3005 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUMMARY OF ORDINANCE NO. 2015 SATURDAY, MAY 20, 2023 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: OLIVIA NASHED, CITY CLERK LNS ACCT. #5100152 City of Lodi P.O. Box 3006 Lodi, CA 95241-19113 DATED: THURSDAY, MAY 18, 2023 ORDERED BY: OLIVIA NASHED CITY CLERK PAMELA M. FARRIS ASSISTANT CITY CLERK �1 + - KAY E CLAYTON ADMINISTRATIVE LERK Verify Appearance of this Legal in the Newspaper — Copy to File SEND PROOF OF ADVERTISEMENT. THANK YOU11 Emailed to the Sentinel at legals@lodinews.com at (time) on (date) \\cvcfilv0I\admin istration$\Administration\CLERKWgenda\City Council\OrdSummaries\Advins.doc CITY OF LODI ORDINANCE NO. 2015 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING AND REENACTING ARTICLE III, "RATES," IN ITS ENTIRETY. The purpose of this ordinance is to provide for a two-year inflationary -based price increase for electrical rates. Introduced May 17, 2023. Adoption to be considered June 7, 2023. AYES: Bregman, Craig, Khan, Nakanishi, Yepez, and Mayor Hothi; NOES: None; ABSENT: None. Olivia Nashed, City Clerk City of Lodi May 17, 2023 Certified copy of the full text of this ordinances is available in the office of the Lodi City Clerk. DECLARATION OF POSTING 1A ORDINANCE NO. 2015 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING AND REENACTING ARTICLE III, "RATES," IN ITS ENTIRETY On Thursday, May 18, 2023, in the City of Lodi, San Joaquin County, California, a certified copy of Ordinance No. 2015 (attached hereto, marked Exhibit "A") was posted in the Lodi City Clerk's Office. I declare under penalty of perjury that the foregoing is true and correct. Executed on May 18, 2023, at Lodi, California. Pamela M. Farris Assistant City Clerk ordsummadeAaaDecPost. doc ORDERED BY'. OLIVIA NASHED CITY CLERK Kaylee Clayton Administrative Clerk ORDINANCE NO. 2015 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING AND REENACTING ARTICLE III, "RATES," IN ITS ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Chapter 13.20 – Electrical Service is hereby amended by repealing and reenacting Article III. "Rates" in its entirety and shall read as follows: Article III. – Rates 13.20.175 Applicability. 13.20.180 Schedule ECA—Energy Cost Adjustment. 13.20.185 Schedule CSS—California Solar Initiative Surcharge. 13.20.190 Schedule EA—Residential Service. 13.20.200 Schedule ED—Residential SHARE Program Service. 13.20.210 Schedule EM—Mobilehome Park Service. 13.20.220 Schedule MR—Residential Medical Rider. 13.20.225 Schedule NEM—Net Energy Metering Rider. 13.20.227 Conversion of Prior Schedule CEM—Co-Energy Metering Rider. 13.20.230 Schedule EL—Outdoor Dusk -To -Dawn Lighting. 13.20.231 Schedule LD—Outdoor Dusk -to -Dawn Lighting (LED). 13.20.235 Schedule ES—City Facilities Service. 13.20.240 Schedule G1—General Service—Group 1 Comrrercial/Industrial. 13.20.250 Schedule G2—General Service—Group 2 Comrrercial/Industrial. 13.20.260 Schedule G3—General Service—Group 3 Comrrercial/Industrial. 13.20.270 Schedule G4—General Service—Group 4 Comrrercial/Industrial. 13.20.280 Schedule G5—General Service—Group 5 Comrrercial/Industrial, 13.20.290 Schedule EP—Energy Purchase. 13.20.300 Schedule SS—Standby Service. 13.20.310 Schedule 11—General Service—Group 5 Commercial/Industrial—Optional. 13.20.315 Schedule EDR—Economic Development Rates. 13.20.320 Reserved. I 13.20.325 Schedule EV—Electric Vehicle Charging Service. 13.20.330 Reserved. 13.20.175 APPLICABILITY. The sale of electric energy by the City shall be at the rates set forth in this article. 13.20.180 SCHEDULE ECA—ENERGY COST ADJUSTMENT. A. Applicability. This schedule is applicable to all electric customers served by the City of Lodi. Each customer shall pay the applicable rate plus an energy cost adjustment (ECA) for each kilowatt-hour (kWh) delivered to the customer. The adjustment shall be the product of the total kilowatt-hours (kWh) for which the bill is rendered times the ECA amount per kWh. The purpose of the ECA is to adjust for increases/decreases to the City of Lodi's wholesale energy costs. This adjustment provides a mechanism to recover increased costs for wholesale energy or to lower collections when costs decrease below the base charge level. B. Rates: Effective July 6, 2007, the ECA billing factor for any given month shall be calculated as follows: Where: ECA= (a) + (b) - (c)(d+f) - (f) (e) a, equals the amount the City of Lodi is actually charged by the Northern California Power Agency for the billing month, including adjustments for prior billing periods, less any third party revenue credits. b, equals the City of Lodi's estimated costs related .o the acquisition of wholesale power, both financial and physical, procured directly by the city for the billing month, including adjustments for prior billing periods. C. equals the difference between actual retail energy sales and projected sales levels for the month which is two months prior to the billing month. d. equals the ECA billing factor for the month which is two months prior to the billing month. e. equals the forecast of projected retail energy sales for the billing month. equals the baseline energy cost for the city of $0.0831. The City of Lodi will recalculate the ECA each month, and resulting amount shall be automatically implemented for bills rendered during the following billing month. The ECA shall not be discounted. SCHEDULE 1-1 FIXED ECA OPTION: Customers must elect this option prior to the start of the twelve-month cycle (July -June) and must be billed for the entire twelve months under this option. Customers may opt out in the May prior to the next twelve-month billing period. The City of Lodi will calculate a fixed ECA based on projected sales divided by the budgeted NCPA all resource bill for the upcoming twelve-month period (July -June) minus eight point three one (8.31) cents. The resulting amount shall be automatically implemented for bills rendered during the eleven billing months beginning in July and ending in May. The June billing shall include a true -up for the actual ECA billed in the same eleven -month period and the actual ECA for the month of June. 2 13.20.185 SCHEDULE CSS—CALIFORNIA SOLAR INITIATIVE 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 California Solar Initiative Surcharge (CSS) for each kilowatt-hour (kWh) delivered to the customer. The CSS shall fund incentives for customers participating in the Lodi Solar Rebate Pilot Program. California Senate Bill 1 (SB 1) mandates that all electric utilities offer a solar photovoltaic program that provides incentives to support the development and installation of solar systems throughout their given service territory. Based upon SB 1 funding requirements, Lodi Electric Utility shall make available approximately six hundred thousand dollars annually between the years 2008 — 2017. B. Rates. Effective on all bills rendered on or after January 1, 2008 until December 31, 2017, a surcharge per kilowatt-hour (kWh) will be applied to all kWh sold. The CSS shall be applied to all kWh sold and will be non -discounted. The surcharge amount of $0.00125 will be applied to all kWh consumed by each customer in all rate classes. All funds collected under this surcharge will be placed in an account solely for the purpose of implementing the Lodi Solar Rebate Pilot Program. 13.20.190 SCHEDULE EA—RESIDENTIAL SERVICE. A. 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. B. Rates: Customer Charge Effective August 1, 2023 .......................................... $14.50 Customer Charge Effective July 1, 2024 ............................................... $19.50 Energy Charge is by Tier of kWh Usage: ---. _.._. T -$/kWh Tier 1 Tier 2 Tier 3 $0.1428 $0.1581 $0.3366 Summer (May through October) Energy Tiers Tier 1 Tier 2 1 Tier 3 Beginning Tier kWh/month _ 0 482 >962 I Endina Tier kWh/month 1 481 962 3 Winter (November through Aaril) Eneraav Tiers Tier 1 Tier 2 Tier 3 Beginning Tier kWh/month 0 392 >782 Ending Tier kWh/month 391 782 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in eacf bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The Billing Cycle Charge is the sum of the Customer Charge, the Energy Charge and the ECA. E. 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. F. 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. 13.20.200 SCHEDULE ED—RESIDENTIAL SHARE PROGRAM SERVICE. A. Applicability. Applicable to domestic service in single-family and multi -family dwellings separately metered by the City of Lodi where the customer meets all the special conditions of this rate schedule including those on discontinued all electric SHARE rate schedule, EF. B. Rates. Customers under this schedule will have bills computed using the EA rate schedule less a 30% discount. C. Energy Cost Adjustment (ECA). An energy cost adjustment shall be included in eacl- bill for service as provided in Section 13.20.180 Schedule ECA - Energy Cost Adjustment. 4 D. Billing Cycle Charge (Monthly Bill). ECA. The billing cycle charge is the sum of the customer charge, the energy charge and the E. Special Conditions. 1. When a business or commercial establishment s conducted In conjunction with a residence and both are measured through one meter, this rate does not apply. 2. This rate does not apply to service used for common area and facilities in multi- family dwellings. 3. Single Household Alternative Rate for Energy (SHARE) Eligibility: To be eligible to receive SHARE an applicant must complete an application and qualify based on the income eligibility criteria for state of California Low Income Home Energy Assistance Program. 4. Completed applications must be submitted to the City of Lodi finance department. The City of Lodi finance department shall certify the eligibility of all applicants. 5. All applicants will be required to certify income eligibility for the SHARE program. Customers must sign a statement upon application indicating that the City of Lodi may verify the customer's eligibility at any time. If verification established that the customer is ineligible, the customer wil be removed from the program and the City of Lodi may render corrective billings. 6. An additional discount is available as described in Schedule MR, Residential Medical Discount. 13.20.210 SCHEDULE EM—MOBILEHOME PARK SERVICE. A. Applicability: This schedule is applicable to service supplied to mobile home parks through one meter and sub -metered to all individual mobile home units. B. Rates: Customer Charge (Master Meter Customer) Effective August 1, 2023 ......... individual mobile home park unit. Customer Charge (Master Meter Customer) Effective July 1, 2024:. . .............. individual mobile home park unit. Energy Charge is by Tier of kWh usage: Tier 1 1 Tier 2 $/kWh ! $0.1428 1 $0.1581 $1.35 per $1.69 per Tier 3 .3366 Summer (May through October) Eniiiergy Tiers Winter (November through Apri Tiers Tier 1 1 Tier 2 1 Tier 3 Be innin Tier kWh/month 0 _ 392 >782 Ending Tier kWh/month _ _ 391 782 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill -or service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The Billing Cycle Charge is the sum of the Customer Charge kMaster Meter Customer), the Energy Charge, and the ECA. E. Special Conditions: This rate is available only for mobile home park master metering in service prior to March 31, 1989. 2. It is the, responsibility of the master -metered customer to notify the City Finance Department by the 5th 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. 3. Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance, and other similar use incidental to :he operation of the premises as a multi -family accommodation will be considered domestic use. 4. 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 .snit 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. 5. 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. 6. The master -metered customer, not the City of Lodi, is responsible for extending the SHARE, Residential Medical Discount, and Fixed Income Discount to tenants Tier 1 Tier 2 Tier 3 Be innin Tier kWh/month 0 482 >962 Ending Tier kWh/month 481 962 Winter (November through Apri Tiers Tier 1 1 Tier 2 1 Tier 3 Be innin Tier kWh/month 0 _ 392 >782 Ending Tier kWh/month _ _ 391 782 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill -or service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The Billing Cycle Charge is the sum of the Customer Charge kMaster Meter Customer), the Energy Charge, and the ECA. E. Special Conditions: This rate is available only for mobile home park master metering in service prior to March 31, 1989. 2. It is the, responsibility of the master -metered customer to notify the City Finance Department by the 5th 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. 3. Miscellaneous electric loads such as general lighting, laundry rooms, general maintenance, and other similar use incidental to :he operation of the premises as a multi -family accommodation will be considered domestic use. 4. 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 .snit 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. 5. 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. 6. 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. 7. 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 diszounts shall be billed using the rates and charges provided for in Schedule EM, Mobile Home Park Service and the master -metered Customer shall not bill the tenant the Schedule EM, Mobile Home Park Service Customer Charge (Master Meter Customer). 8. With the exception of the Customer Charge provided for in Schedule EA, Residential Service, this Schedule EM prohibits further recovery by mobile home park owners for the costs of owning, operating and maintaining their electric sub - metered system. 9. 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. 13.20.220 SCHEDULE MR—RESIDENTIAL MEDICAL RIDER. A. Applicability: Qualifying residential customers on Schedule EA are entitled to a discount of 25% from the total bill. Qualifying residential customers on Schedule ED are entitled to a discount of 5% from the total bill. Master -metered customers with qualifying tenant(s) on Schedule EA are entitled to a discount of 25% per billing cycle (monthly bill) for each qualifying household or mobile home unit. Master -metered customers with qualifying tenant's' on Schedule ED are entitled to a discount of 5% per billing cycle (monthly bill) for each qualifying household or mobile home unit. If a customer or full-time resident in the home or mobile home unit has one or more of the medical conditions listed below, contact the Electric Utility Department to request a City application, "Declaration of Eligibility for Medical Discount." Only one medical discount adjustment per household or mobile home unit is available. B. Qualifying Conditions: To qualify for the Medical Discount, the customer will be required to submit a completed City application, including the certification of a doctor of medicine or osteopathy licensed to practice in the State of California that a customer or other full time resident in the home is: a. Dependent on a life-support device used in the home. b. Paraplegic, hemiplegic, or quadriplegic person -laving special air-conditioning needs. C. A multiple -sclerosis patient with special heating or air-conditioning needs. d. Medical conditions other than multiple sclerosis, paraplegia, hemiplegia, or quadriplegia may qualify customers for medical quantities for electric heating or air conditioning. Any such conditions will be reviewed on an individual basis. C. Life Support Devices: A life support device is any medical device necessary to sustain life or relied upon for mobility. To qualify under this schedule, the device must be used in the home and must run on electricity supplied by the City of Lodi. The term "life support device" includes, but is not limited to respirators, iron lungs, hemodialysis machines, suction machines, electric nerve stimulators, pressure pads and pumps, aerosol tents, electrostatic and ultrasonic nebulizers, compressors, IPPB machines and motorized wheelchairs. D. Heating and Air Conditioning: Special heating and/or air-conditioning needs will qualify for a Medical Discount only if the main source of energy for heating or air conditioning is electricity supplied by the City of Lodi. E. Medical Discount for Mobile Home Park Service Customers: Residential tenants of mobile home park service customers can also qualify for Medical Discount. If one or more of the customer's tenant(s) have a medical condition that qualifies under the conditions listed above, contact the Electric Utility Department to apply. Any Medical Discount must be passed on to the qualifying tenant(s) when tenants are billed for the electricity they use. 13.20.225 SCHEDULE NEM—NET ENERGY METERING RIDER. A. Purpose. The purpose of this rider is to establish rates, terms; and conditions for providing net metering services to customers generating electricity using solar and wind facilities of one MW or less in size. This rider complies with California State legislation requiring every electric utility in the state, including municipally -owned utilities, to develop a standard contract or tariff providing for net energy metering, as defined below. B. Applicability. This schedule is applicable to service for customers where a part or all of the electrical requirements of the customer can be supplied from a solar or wind power production source owned and operated by the customer (customer -generated). Availability of this schedule to eligible customer -generators will be on a first-come, first-served basis and will be available until such time the total rated generating capacity used by eligible customer - generators equals five percent of the City of Lodi aggregate customer annual peak demand. The solar or wind generation source must: 1) have a capacity of one MW or less, 2) be located on the customer -generator's premises, 3) be connected for parallel operation with Lodi's distribution facilities, and 4) be intended for the sole purpose of offsetting a part or all of the customer -generator's own electrical requirements. In no case shall the power or energy 1.1 generated by the customer -owned solar or wind source be available for resale, except as specified under this rider. Additional terms and conditions for service, including terms of interconnection and parallel operation, are specified in a customer -specific Electrical Interconnection and Net Energy Metering Payment Agreement. C. Rates. Charges for electricity supplied by the city will be based on metered usage in accordance with special conditions (D)(3) and (5) below. Rates charged under this schedule will be in accordance with the eligible customer -generator's otherwise applicable rate schedule. Public benefit charges and monthly customer charges shall not oe by -passable. D. Special Conditions Other Agreements. A signed electrical interconnection and net metering payment agreement between the customer -generator and the city is required for service under this schedule. 2. Metering Equipment. Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions. If customer's existing electrical meter is not capable of measuring the flow of electricity in two directions, the customer -generator shall be responsible for all expenses involved in purchasing and installing a meter that is capable of measuring electricity in both directions. Co -energy metering customers transferred to net metering pursuant to Section 13.20.227 of this code, may remain on the dual meter system. Net energy metering customers, at their election may opt for the dual meter system. 3. Net Energy Metering and Billing. Net energy is defined as measuring the difference between the electricity supplied by the city through the electric grid to the eligible customer -generator and electricity generated by an eligible customer - generator and fed back into the electric grid over a twelve-month period. In the event that the electricity supplied by the city during the twelve-month period exceeds the electricity generated by the eligible customer -generator during the same period, the eligible customer is a net electricity consumer and the city shall bill the customer for the net consumption during the twelve-month period based on the retail price per kilowatt-hour for eligible customer - generator's rate class over the same period. The city shall provide the customer -generator with net electricity consumption information on each regular bill. That information shall include the current amount owed to the city for the net electricity consumed. Customer -generator may exercise the option to pay monthly for the net energy consumed, but in any event shall be responsible for any payments due at the end of each twelve- month period. 4. Attributes. Any capacity attributes or environmental attributes associated with the renewable energy produced by the customer -generator at sites subject to this schedule shall belong to the city with the sole exception of renewable energy credits for solar and wind generation up to the amount of on-site consumption. Capacity attributes include, but are not limited to, system resource adequacy capacity and local resource adequacy capacity, if any. Environmental attributes 9 include, but are not limited .to, renewable portfolio standard recognition, renewable energy credits, greenhouse gas credits, and emission reduction credits, if any. 5. Excess Energy. Net energy metering will be administered on an annualized basis, beginning with the month of interconnecticn of the customer's generating system with the city's electrical system. Electric solar and wind generation production may result in a dollar credit carrying forward to the next billing period. If a credit accumulation results in a net customer -owned generation credit at the end of the annualized year, unused dollar credits will be set to zero and not be carried into the new annualized year unless the customer -generator affirmatively elects to be paid for such excess. If the customer -generator so elects, the city shall either pay the customer -generator or cradit the customer generator's account for such excess at the baseline energy cost rate specified in Schedule ECA plus the energy cost adjustment rate averaged for the billing periods with excess generation. 6. Rules and Regulations. Other conditions specified in the City of Lodi electric utility department's rules, regulations and engineering standards shall apply to this electric rate schedule. 13.20.227 CONVERSION OF PRIOR SCHEDULE CEM—CO-ENERGY METERING RIDER. A. On the effective date of this [ordinance no. 1853], customer generators on the city's prior schedule CEM co -metering rider will be converted to the city's schedule NEM -net energy metering rider. In calendar year 2011, the annual net energy bill as provided in Subsection 13.20.225(D)(3) of this code, shall be calculated retroactive to January 1, 2011, and the annual excess energy credit or payment (if any) shall be calculated retroactive to January 1, 2011. 13.20.230 SCHEDULE EL—OUTDOOR DUSK -TO -DAWN LIGHTING. A. Applicability: This schedule is applicable to City -owned and maintained outdoor overhead area lighting service. Dusk -to -Dawn lighting may not be used for street lighting purposes. B. Rates: For each 6,000 lumen gas discharge lamp .................................... $13.02 per billing cycle For each 18,000 lumen gas discharge lamp .................................. $24.16 per billing cycle C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): a. Lamps shall be approximately 6,000 or 18,000 lumen gas discharge with luminaire and bracket, as specified by the City of Lodi Electric Utility Department, and shall be supported on City -owned poles wh ch are used to carry distribution system circuits for other City purposes and shall be at locations approved by the 10 City of Lodi. Lamps will be controlled from dusk to dawn each night so as to give approximately 4,380 hours of service annually. b. Upon receipt of notice from a customer of failure of light to operate as scheduled, the City of Lodi Electric Utility Department will, within a reasonable period of time, make the necessary repairs. C. Relocation of existing outdoor lighting service equipment or the installation of additional facilities required other than mentioned in (a) above shall be at customer's expense prior to starting work. 13.20.235 SCHEDULE ES—CITY FACILITIES SERVICE. A. Applicability: This schedule is applicable only to those city facilities currently on schedule ES. B. Rates: Customer Charge Effective August 1, 2023 ............................. $20.00 Customer Charge Effective July 1, 2024 ................................ $27.00 Energy Charge per kWh ...................................................... $0.10890 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in eacl- bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): The billing cycle charge is the sum of the Customer Charge, the Energy Charge, and the ECA. SECTION 13.20.231 SCHEDULE LD – OUTDOOR DUSK -TO -DAWN LIGHTING (LED) A. Applicability. This schedule is applicable to city -owned and maintained light emitting diode (LED) outdoor overhead area lighting service. LED dusk -to -dawn lighting may not be used for street lighting purposes. B. Rates: For each LED lamp up to and including 50 watts: $7.69 per billing cycle For each LED lamp over 50 watts up to and including 110 watts: $11.14 per billing cycle For LED outdoor dusk -to -dawn lighting with lamps exceeding 110 watts, the City of Lodi Electric Utility will calculate and supply the monthly billing cycle charge(s) following the method used herein, accounting for actual wattage of the proposed lamp. For lighting efficiency and energy conservation, all existing customers taking service under Schedule EL – Outdoor Dusk -to -Dawn Lighting will have existing non -LED lamps replaced and will be required to take service under this Schedule LD – Outdoor Dusk -to - Dawn Lighting (LED) effective the first billing cycle following lamp replacement. The City of Lodi will replace non -LED lamps upon the earlier of failure, damage, or end of useful life. 11 C. The charges above include all applicable surcharges. D. Billing Cycle Charge (Monthly Bill): (1) Lamps shall be as specified by the City of Lodi Electric Utility, and shall be supported on city -owned poles which are used to carry distribution system circuits for other city purposes and shall be at locations approved by the City of Lodi. Lamps will be controlled from dusk to dawn each night so as to give approximately four thousand three hundred eighty hours of service annually. (2) Upon receipt of notice from a customer of failure of light to operate as scheduled, the City of Lodi Electric utility will, within a reasonable period, make the necessary repairs. (3) Relocation of existing outdoor lighting service equipment or the installation of added facilities required other than mentioned above shall be at customer's expense prior to starting work. 13.20.240 SCHEDULE G1—GENERAL SERVICE—GROUP 1 COMMERCIAL/ INDUSTRIAL. A. Applicability: This schedule is applicable to customers with single-phase or three-phase service, or to a combination thereof, whose energy consumption does not exceed 8,000 kilowatt-hours (kWh) per billing cycle for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Assignment to Schedule: If, in the judgment of the City, an account is expected to have usage below 8,000 kWh per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. If energy consumption equals or exceeds 8,000 kWh for three consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. If the demand reaches or exceeds 400 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule. B. Rates: Customer Charge: (per meter per billing cycle) Single -Phase Service Effective August 1, 2023 ............. ........ ........---- 1 $15.50 Single -Phase Service Effective July 1, 2024 ....................................... $20.50 Three -Phase or Combination Service Effective August 1, 2023........... $23.50 Three -Phase or Combination Service Effective July 1, 2024 ................ $31.50 Energy Charge: ($ per kWh) Summer (May through October) .............................. $x.19261 Winter (November through April) .............................$0.14244 12 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. D. Communitv Benefits Incentive Discount: G1 -Non-profit (as defined in Federal Internal Revenue 501 (c) (3)) Industrial/Commercial customers who are currently receiving Federal Community Development Block Grant funds or have received such funds not more than two years before preparation of the current billing cycle charge are eligible for the following discount on Energy and Demand charges: July 1, 1996 and after ............. ...............................30% It is the customer's responsibility to notify the Finance Department of this eligibility. This discount may not be used in conjunction with any other incentive discount. E. Billing Cycle Charge (Monthly Bill): The billing cycle charge is the sum of the Customer Chairge, the Energy Charge and the ECA. 13.20.250 SCHEDULE G2—GENERAL SERVICE—GROUP 2 COMMERCIAL/INDUSTRIAL. A. Applicability: This schedule will be applied to accounts with energy consumption in excess of 8,000 kilowatt-hours (kWh) for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Billing Demand: The billing demand in any billing cycle will be the maximum average power taken during any metering interval in the period, but not less than the diversified resistance welder load. (The customary metering interval is 15 minutes; in cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used.) Assi nment to Schedule: If, in the judgment of the City, an account is expected to have usage over 8,000 kWh per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such changes. If energy consumption drops below 8,000 kWh and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate schedule. If the billing demand reaches or exceeds 400 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule as soon as practicable. B. Rates: Customer Charge Effective August 1, 2023: (per meter per billing cycle)\..... $77.00 13 Customer Charge Effective July 1, 2024: (per meter per billing cycle):...... $103.50 Demand Charge: All kW of billing demand, per kW Energy Charge: (per kWh) Summer (May through October) Winter (November through April) Energy Cost Adjustment (ECA): .................................... $0.15829 ............ ........................ $0.12671 $ 4.18 An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA – Energy Cost Adjustment. C. Voltage Discount: When delivery is made at the same primary distribution voltage as that of the line from which the service is supplied, a 4% discount will be allowed on the sum of the Demand Charge and the Energy Charge. D. Community Benefits Incentive Discount: G2 -Non-profit (as defined in Federal Internal Revenue 501 (c) (3)) Industrial/Commercial customers who are currently receiving Federal Community Development Block Grant funds or have received such funds not more than two years before preparation of the current billing cycle charge are eligible for the following discount on Energy and Demand charges: July1, 1996 and after.......................................................................... 30% It is the customer's responsibility to notify the Finance Department of this eligibility. This discount may not be used in conjunction with any other incentive discount. E. Billing Cycle Charge (Monthly Bill): The billing cycle charge is the sum of the Customer Charge, the Demand Charge, the Energy Charge, the ECA and the voltage discount, if applicable. 13.20.260 Schedule G3—General Service—Group 3 Commercial/Industrial. A. Applicability: This schedule shall be applied to accounts with billing period demands of between 400 kilowatts (kW) and 500 kW for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is applicable. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment to Schedule: If, in the judgment of the City, an account is expected to have billing period demand of 400 kW or more and less than 500 kW per billing cycle, the City has the option of placing the account immediately on this schedule. 14 When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such changes. If billing period demand drops below 400 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. If billing period demand reaches or exceeds 500 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule. B. Rates: Customer Charge Effective August 1, 2023 (per meter per billing cycle): Customer Charge Effective July 1, 2024 (per meter per billing cycle): $235.50 $316.50 Service Voltage: Secondar G3 -S Primary G3 -P Season: Summer Winter Summer Winter Demand Charges: Per kW of peak period demand $11.70 -- $ 10.98 Per kW of billing period demand $ 4.18 $ 4.18 $ 3.23 $ 3.23 Energy Charges: Peak Period (per kWh) Partial peak period (per kWh) Off peak period $0.17228 1 1 $0.16606 1 -- $0.13799 1 $0.12504 $0.11853 1 $0.11412 C. Energy Cost Adjustment (ECA): $0.13348 j $0.12118 $0.11499 1 $0.11079 An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: The billing cycle charge for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment: 1. Customer Charge: The Customer Charge is a flat monthly fee. 2. Demand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both Demand Charges. Time periods are defined below. 15 3, Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's off peak hours. The bill will include all of these Energy Charges. Time periods are defined below 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Changes are based on the voltage at which service is taken. Service voltages are defined below. E. ,Definition of Service Voltage: The service voltage classes are: (a) Primary: Service Voltage class for service at 12,000 volts (nominal). (b) Secondary: Service Voltage class for service at available voltages below 12,000 volts (nominal). F. Power Factor Adjustment: Bills will be adjusted for billing cycle average power factor as follows: 1. The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power factor of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as follows: 1. SUMMER: (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). 16 Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER: (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. 13.20.270 SCHEDULE G4—GENERAL SERVICE—GROUP 4 COMMERCIAL/INDUSTRIAL. A. Applicability: This schedule shall be applied to accounts with billing period demands of between 500 kilowatts (kW) and 1,000 kW for three consecutive billing cycles. This schedule is not available for service when another commercial/industrial schedule is appicable. ' Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment to Schedule: If, in the judgment of the City, an account is expected to have billing period demand between 500 kW and 1,000 kW per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time qualify for another rate schedule, such billing change will be made as soon as practicable afte- verification of said changes. It shall be the responsibility of the customer to notify the City of any such changes. If billing period demand drops below 500 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. If billing period demand reaches or exceeds 1,000 kW for three consecutive billing cycles, the account will be transferred to the appropriate rate schedule. 17 B. Rates. - Customer Charge Effective August 1, 2023 (per meter per billing cycle): $235.50 Customer Charge Effective July 1, 2024 (per meter per billing cycle): _ $316.50 Service Voltage: Secondary G4 -S) Prima G4 -P Season: Summer Winter Summer Winter Demand Charges: Per kW of peak period demand $11.70 -- $ 10.98 Per kW of billing period demand $ 4.18 $ 4.18 $ 3.23 $ 3.23 Energy Charges: Peak Period (per kWh) $0.15904 -- $0.15288 -- Partial peak period (per kWh) $0.12470 $0.11252 $0.12027 $0.10870 Off peak period (per kWh) $0.10528 $0.10168 $0.10181 $0.09840 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: The billing cycle charge for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment: Customer Charge: The Customer Charge is a flat monthly fee. 2. Demand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both of these Demand Charges. Time periods are defined below. 3. Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's off peak hours. -he bill will include all of these Energy Charges. Time periods are defined below. 18 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service Voltages are defined below. E. Definition of Service Voltage: The service voltage classes are: (a) Primary: Service Voltage class for service at 12,000 volts (nominal). (b) Secondary: Service Voltage class for service at available voltages below 12,000 volts (nominal). F. Power Factor Adjustment: Bills will be adjusted for billing cycle average power factcrs as follows: 1. The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power facto- of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as follows: 1. SUMMER (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). 19 Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. 13.20.280 SCHEDULE G5—GENERAL SERVICE—GROUP 5 COMMERCIAL/INDUSTRIAL A. Applicability: This schedule shall be applied to accounts with billing period demands of 1,000 kilowatts (kW) or more for three consecutive months, unless the customer elects an optional rate schedule the account would otherwise qualify. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment to Schedule: If, in the judgment of the City, an account is expected to have billing period demand of 1,000 kW or more per billing cycle, the City has the option of placing the account immediately on this schedule. When an account billed on this schedule permanently changes the nature of electrical operations to such an extent that the account would in time gJalify for another rate schedule, such billing change will be made as soon as practicable after verification of said changes. It shall be the responsibility of the customer to notify the City of any such change. If billing period demand drops below 1,000 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule. 20 B. Rates: Customer Charge Effective August 1, 2023 (per meter per billing cycle): Customer Charge Effective July 1, 2024 (per meter per billina cvclel: Service Voltage: Secondary G5 -S) Prir Season: Summer I Winter Summer Demand Charges: Per kW of peak period demand $11.70 -- $10.98 Per kW of billing period demand $ 4.18 $ 4.18 $ 3.23 Enerav Charaes: $235.50 $316.50 Peak Period (per kWh) $0.14652 -- _ $0.14070 Partial peak period per kWh) $0.11225 $0.10022 _ $0.10814 Off peak period (per kWh) $0.09497 $0.09189 $0.09173 Economic Stimulus Rate Credit: (per kWh) $0.00440 C. Energy Cost Adjustment (ECA): G5 -P) $ 3.23 $0.09671 $0.08880 $0.00440 1 $0.00440 1 $0.00440 An energy cost adjustment shall be included. in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: The billing cycle for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment. 1. Customer Charge: The Customer Charge is a flat monthly fee. 2. Demand Char es: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both of these Demand Charges. Time periods are defined below. 3. Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge per kWh applies to the total kWh 21 used during the billing cycle's off peak hours. The bill will include all of these Energy Charges. Time periods are defined below. 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle, Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service Voltages are defined below. E. Definition of Service Voltage: The service voltage classes are: (a) Primary: (b) Secondary F. Power Factor Adjustments: Service Voltage class for service at 12,000 volts (nominal). Service Voltage class for service at available voltages below 12,000 volts (nominal). Bills will be adjusted for billing cycle average power factor as follows: 1. The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power facto of the customer's load in the billing cycle is less than ninety-seven percent, sich average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as fo lows: 1. SUMMER: (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 22 2. WINTER: (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. 13.20.290 SCHEDULE EP—ENERGY PURCHASE. APPLICABILITY: This schedule is applicable to qualifying customer -owned and operated generating alternating current (AC) facilities operating in parallel with the City's a ectric distribution system. The customer -generator must currently be, or will be, served by the City of Lodi Electric Utility (LEU). Generating facilities must be rated 1 MWcec-nc or less, located on the customer -generator's premises, and intended for the purpose of offsetting a part or all of the customer -generator's own electrical requirements. In no case shall the energy, capacity, and/or other attributes be available for resale by the customer. This schedule is available only to customers who do not otherwise qualify for compensation for customer -owned generation under another LEU rate schedule or contract. RATES: Enerav Charaes Customer will be billed for all usage at the applicable service rate in effect when the electric service was rendered in accordance with the eligible customer -generator's otherwise applicable rate schedule based on metered usage for energy delivered and received after the customer - generator serves its own instantaneous load. Energy Purchase Credit: Credit will be provided to the customer for all metered customer -generated energy that exceeds the energy consumed, and is therefore exported to LEU's distribution system, at a rate equal to the avoided cost to LEU; the specific value of which will be determined and updated annually by LEU based on the following components: avoided energy and transmission costs, environmental attribute value (if applicable, based on generation type), avoided system loss, and avoided capacity value. Energy Purchase Credit values will be published each year by June 1 on LEU's website and provided to customers receiving service under this schedule. 23 The above charges and credits will be determined in accordance with LEU's metering specifications. LEU reserves the right to install additional metering equipment for statistical and/or billing purposes. BILLING: For each billing month, the customer shall receive a bill including all applicable Energy Charges, including, but not limited to, customer charges, energy charges, demand charges, and any surcharges, taxes, and/or discounts in accordance with their otherwise applicable rate schedule. The bill will also include all applicable Energy Purchase Credits which shall be used to offset the Energy Charges in a given billing month. Any credit's) remaining at the end of each billing month shall carry forward and be applied to the customer's next monthly electric bill. Any outstanding charges will be due and payable at the end of each billing month. Monthly customer charges, public benefit charges, and all other surcharges shall be non -bypassable. SPECIAL CONDITIONS: Other conditions shall apply to this schedule as specified in the City of Lodi Electric Utility Department's Rules and Regulations, as updated from time to time, and Engineering Standards and Specifications (including metering requirements) which are available for review on LEU's website. Customers will be responsible for any and all metering and interconnection charges as required to provide service under this schedule. Said charges will be determined and updated annually by LEU and be based on the cost(s) associated with providing service under this schedule. A schedule of charges will be available on LEU's website. Any capacity or environmental attributes associated, now or in the future, with the credited excess energy produced by the customer -generator at sites subject to this schedule shall belong to the City. Capacity attributes include, but are not limited to, system, local, and/or flexible resource adequacy capacity, if any. Environmental attributes include, but are not limited to, Renewables Portfolio Standard eligible resources, renewable energy credits, greenhouse gas credits, and/or emission reduction credits, if any. LEU reserves the right to require a contract should it determine the customer -owned generator does not otherwise meet the specified applicability requirements to qualify under this schedule or another LEU rate schedule. Customers currently taking service under Schedule NEM shall continue to be billed in accordance with Schedule NEM for 20 years from the date of interconnection of their existing customer -owned generation facility, after which time they will be given the option to take service under this Schedule EP in order to continue to receive credit for their customer -owned generation. 13.20.300 SCHEDULE SS—STANDBY SERVICE. A. Applicability: This schedule is applicable to commercial/industrial customers who would otherwise qualify for Schedule G2, G3, G4, G5, or 11 and who have privately -owned generating facilities with a combined nameplate rating greater than one megawatt (1 MW) on their premises and where the city must stand ready to supply electric service to replace such a facility. This schedule will apply in addition to any other schedule applicable to the customer of record; any multiple generation facilities for one customer of record will be under one contract. 24 B. Service by Contract: Service under this schedule shall be provided on a contract basis to commercial/industrial customers who have privately- owned generating facilities on their premises. Contracts shall be subject to terms approved by the city council and shall obligate the customer to pay the city for its costs associated with providing standby service for the actual life of the privately -owned generating facilities and for three months following written notice to the City of Lodi Electric Utility of the removal of the privately -owned generating facilities from operation. 13.20.310 SCHEDULE 11—GENERAL SERVICE—GROUP 5 00MMERCIAL/INDUSTRIAL- OPTIONAL. A. APPLICABILITY: This schedule is an optional rate for accounts who world otherwise qualify for primary service under the G5 rate schedule with billing period demands of 1,000 kilowatts (kW) or more for three consecutive months. Demand: The billing period and peak period demands will be the maximum average power taken during any 15 -minute period interval in the billing period and peak period, respectively, but not less than the diversified resistance welder load. In cases where the use of energy is intermittent or subject to violent fluctuations, a 5 -minute interval may be used. Assignment to Schedule: Assignment to this schedule is at the option of the customer and does not supersede any standby service contracts. This rate schedule is prospective and not subject to rebate or retroactivity. When a customer chooses to be assigned to this schedule, the customer elects the City of Lodi (City) to be the sole electric power requirements provider of choice. The customer must give the City three year written notice before the customer can elect to use another electric power requirements provider. When a customer has a measurable incremental permanent load increase of 200 kW or greater, over the highest billing period demand in the previous twelve (12) months the customer will be eligible for a ten (10) percent discount on the incremental Demand and Energy charges. Such billing change will be made as soon as practicable after verification of said changes and is not subject to rebate or retroactivity. It shall be the responsibility of the customer to notify the City of any such change. When an account billed on this schedule qualifies for another City bundled rate schedule, the customer may elect to be billed on that other rate schedule. When a customer chooses to be assigned to another bundled rate a three-year written notice is still required before the customer can elect to use another electric power requirements provider. If the billing period demand drops below 1,000 kW and remains there for 12 consecutive billing cycles, the City will transfer the account to the appropriate rate schedule and the customer will be subject to the requirements of the appropriate schedule, rather than Schedule 11. 25 B. Rates. Customer Charge Effective August 1, 2023 (per meter per billing cycle): Customer Charge Effective July. 1, 2024 (per meter per billing cycle): $235.50 $316.50 Winter Peak period(per kWh $0.13646 -- Service Voltage: Prima 11-P _ Season: Summer $0.08697 Winter Economic Stimulus Rate Credit:(per kWh $0.01386 Demand Charges: Per kW of peak period demand $1C.98 -- Per kW of billing period demand $ 3.23 $ 3.23 Energy Charges: < 4000 kW Summer Winter Peak period(per kWh $0.14310 -- Partial peak period(per kWh $0.11023 $0.10171 Off peak period(per kWh $0.09430 $0.09361 >_4000 kW Summer Winter Peak period(per kWh $0.13646 -- Partial peak period(per kWh $0.10359 $0.09507 Off peak period(per kWh 0.08766 $0.08697 Economic Stimulus Rate Credit:(per kWh $0.01386 $0.01386 C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Types of Charges: The billing cycle charge for service is the sum of the Customer Charge, the Demand Charges, the Energy Charges, the ECA and the Power Factor Adjustment: Customer Charge: The Customer Charge is a flat monthly fee. 2. Fernand Charges: This schedule has two Demand Charges: A peak period Demand Charge and a billing period Demand Charge. The peak period Demand Charge per kW applies to the maximum average power taken during any metering interval during the billing cycle's peak hours. The billing period Demand Charge per kW applies to the maximum average power taken during any metering interval at any time during the billing cycle. The bill will include both of these Demand Charges. Time periods are defined below. 3. Energy Charges: This schedule has three Energy Charges: A peak period Energy Charge, a partial peak period Energy Charge, and an off peak period Energy Charge. The peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's peak hours. Partial peak period Energy Charge per kWh applies to the total kWh used during the billing cycle's partial peak hours. Off peak period Energy Charge pe- kWh applies to the total kWh 26 used during the billing cycles off peak hours. —he bill will include all of these Energy Charges. Time periods are defined below. 4. ECA: The ECA is a per kWh charge applied to the total kWh used during the billing cycle. Monthly charges may be decreased or increased based upon power factor as defined below. As shown on the rates above, Demand and Energy Charges are based on the voltage at which service is taken. Service Voltage is defined below. E. Definition of Service Voltage: The service voltage class: a. Primary: Service Voltage class for service at 12,C00 volts (nominal). F. Power Factor Adjustments: Bills will be adjusted for billing cycle average power factor as follows: 1. The total charge (except taxes and customer charge) for any billing cycle as computed on the above rates shall be increased by 0.0006% for each 0.01 percentage point that the average power facto, of the customer's load in the billing cycle is less than ninety-seven percent, such average power factor to be computed (to the nearest hundredth of a percent) from the ratio of lagging kilovolt ampere -hours to kilowatt-hours consumed in the billing cycle. 2. Customers with service entrance equipment unable to accommodate the City's reactive metering equipment shall have their billing power factor determined by testing performed by the City. G. Definition of Time Periods: Times of the year and times of the day are defined as follows: 1. SUMMER: (May 1 through October 31) Peak: 3:00 p.m. to 7:00 p.m. Monday through Friday (except holidays). Partial Peak: 8:30 a.m. to 3:00 p.m. and 7:00 p.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 2. WINTER: (November 1 through April 30) Partial Peak: 8:30 a.m. to 9:30 p.m. Monday through Friday (except holidays). Off Peak: 9:30 p.m. to 8:30 a.m. Monday through Friday and all day Saturday, Sunday and holidays. 27 3. HOLIDAYS: "Holidays," for the purpose of this rate schedule, are 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. SECTION 13.20.315 SCHEDULE EDR - ECONOMIC DEVELOPMENT RATES Applicability: A. New Business Rate (NBR) Discount. NBR discount, applicable to any new commercial or industrial customer that locates their operations/business in the City of Lodi and receives electric utility service from the City of Lodi, with the following stipulations: a customer assigned to the G1 electric utility rate shall receive a discount for twelve consecutive months of twenty-five dollars per month; and, customers assigned to the G2, G3, G4, G6, or 11 electric utility rate shall receive a discount for twelve consecutive months of five percent; and this rate discount may not be combined with any other electric discount or rate, including but not limited to the NJR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. B. New Jobs Rate (NJR) Discount. NJR discount, applicable to any commercial or industrial customer that adds a minimum of one full-time position, and retains that position for at least twelve consecutive months, with the following stipulation; a two percert discount for one to three new positions; four percent discount for four to six new positions; six percent discount for seven to nine positions; eight percent discount for ten to twenty new positions. NJR discount, applicable to any commercial or industrial customer that adds twenty-one to thirty new, full-time positions, and retains those positions for twenty-four consecutive months, an eight percent discount; that adds thirty-one to forty positions and retains those positions for thirty-six consecutive months, an eight percent discount; that adds forty-one to fifty positions and retains those positions for forty-eight months, an eight percent discount; and that adds greater than fifty positions and retains those positions for sixty consecutive months, an eight percent discount. The discount will remain in effect if the number of new positions remain funded for the corresponding time period. The maximum discount available is eight percent; all discounts and time periods the discount remains in effect are contingent on the number of new, full-time employees added at the time of application; all discounts are subject to submission and validation of reports, as specified by the City. This rate discount may not be combined with any other electric discount or rate, including but not limited to the NBR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. C. The rate schedules referenced above shall be effective on applicable electric utility billings prepared by the City of Lodi on or after January 1, 2022. 13.20.320 - Reserved. 13.20.325 Schedule EV—Electric Vehicle Charging Service. A. Applicability: This schedule is applicable to single-phase electric vehicle charging service in single- family and multi -family dwellings separately metered by the City 28 B. Rates: Customer Charge Effective August 1, 2023:.......... $4.50 Customer Charge Effective July 1, 2024: ........ .... .. . ...... .. ............. $6.00 Energy Charge: EV Charging period (per kWh) Schedule EA Tier 1 Energy Charge Non -EV Charging period (per kWh) Schedule EA Tier 3 Energy Charge C. Energy Cost Adjustment (ECA): An energy cost adjustment shall be included in each bill for service as provided in Section 13.20.180 Schedule ECA — Energy Cost Adjustment. D. Billing Cycle Charge (Monthly Bill): ECA. The billing cycle charge is the sum of the Customer Charge, the Energy Charge and the E. Definition of Time Periods: Times of the day are defined as follows: EV Charging period: Non -EV Charging period 13.20.330 Reserved. 8:00 p.m. to 6:00 a.m. Monday through Friday (and all day weekends and holidays). 6:00 a.m. to 8:00 p.m. Mcnday through Friday (excluding weekends and holidays). 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. Severabillit . 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. 29 SECTION 5. Effective Date and Publication. This Ordinance shall take effect on August 1, 2023. 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 7T" day of June, 2023 ATTEST: MIKEY HOTHI Mayor OLIVIA NASHED City Clerk State of California County of San Joaquin, ss. I, Olivia Nashed, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 2015 was introduced at a regular meeting of the City Council of the City of Lodi held May 17, 2023 and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held June 7, 2023, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. 2015 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant .o law. Approved as to Form JANICE D. MAGDICH City Attorney The foregoing document is certified to be a correct copy of the original on file in the City Clerk's Office, Pamela M. Farris Assistant City Clerk, City of Lodi OLIVIA NASHED City Clerk Nor 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: NOTICE OF PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING AND REENACTING ARTICLE III, "RATES," IN ITS ENTIRETY PUBLISH DATE: SATURDAY, APRIL 22, 2023 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: OLIVIA NASHED, CITY CLERK LNS ACCT. #5100152 City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, APRIL 20, 2023 ORDERED BY: OLIVIA NASHED CITY CLERK —P PAMELA M. FARRIS ASSISTANT CITY CLERK Emailed to the Sentinel at legals@lodinews.com at formAadvins.doc KAYLEE CLAYTON ADMINISTRATIVE i :1 Piimei on RK J (pages) DECLARATION OF POSTING NOTICE OF PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE AMENDING LODI MUNICIPAL CODE CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING AND REENACTING ARTICLE III, "RATES," IN ITS ENTIRETY On Thursday, April 20, 2023, in the City of Lodi, San Joaquin County, California, a copy of a Notice of Public Hearing to consider introducing an ordinance amending Lodi Municipal Code Chapter 13.20, "Electrical Service," by repealing and reenacting Article III, "Rates," in its entirety (attached hereto, marked 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 April 20, 2023, at Lodi, California. PAMELA M. FARRIS ASSISTANT CITY CLERK ORDERED BY: OLIVIA NASHED CITY CLERK KAYLEE CLAYTON ADMINISTRATIVE CLERK \\cvcfi1v0I\administration$\Administration\CLERK\Agenda\City Council\Public Hearings\AFFADAVITS\DECPOST2.DOC P � CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: May 17, 2023 Time: 7:00 p.m. For information regarding this notice please contact: Olivia Nashed City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, May 17, 2023, 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 item: a) Introduction of an ordinance amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by repealing and reenacting Article III, "Rates," in its entirety. 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 protests may be filed with the City Clerk, City Hall, 221 W. 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 yLodi City Council: 1 Olivia Nashed City Clerk Dated: April 19, 2023 Approved as to form: �Magdich City Attorney "ISO: Para obtener ayuda interpretativa con esta noticia, por favor (lame a la oficina de la Secretaria Municipal, a las (209) 333-6702. CLERMPUBHEARINOTICES1Nollce_EU_Ordinance 4/13/23