HomeMy WebLinkAboutAgenda Report - May 2, 2001 J-01CITY OF LORI COUNCIL COMMUNICATION
AGENDA TITLE: Ordinance No. 1701 Entitled, "An Ordinance Of The Lodi City Council Amending
Chapter 13.20 Electrical Service, Article III. Rates By Adding Section 13.20.175 —
Schedule MCA — Market Cost Adjustment"
MEETING DATE: May 2, 2001
PREPARED BY: City Clerk
RECOMMENDED ACTION: Following reading by title, it would be appropriate for the City Council to
adopt Ordinance No. 1701.
BACKGROUND INFORMATION: Ordinance No. 1701 entitled, "An Ordinance Of The Lodi City
Council Amending Chapter 13.20 Electrical Service, Article III. Rates
By Adding Section 13.20.175 — Schedule MCA — Market Cost
Adjustment" was introduced at the regular City Council meeting of
April 18, 2001.
Pursuant to State statute, ordinances may be adopted five days after their introductions following reading
by title.
This Ordinance has been approved as to form by the City Attorney.
FUNDING: None required.
Susan J. Blacksftfn
City Clerk
Attachment
APPROVED:
H. Dixon Flynn -- City Manager
ORDINANCE NO. 1701
AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING
CHAPTER 13.20 ELECTRICAL SERVICE, ARTICLE III. RATES
BY ADDING SECTION 13.20.175 — SCHEDULE MCA — MARKET
COST ADJUSTMENT
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BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS:
SECTION 1. Lodi Municipal Code Chapter 13.20 - Electrical Service, Article III. Rates, is hereby
amended by adding Section 13.20.175 — Schedule MCA — Market Cost Adjustment as follows:
SCHEDULE MCA— MARKET COST ADJUSTMENT
APPLICABILITY:
When in effect, this schedule is applicable to all areas served by the City and to all kilowatt-hours
billed under all rate schedules as defined under the special conditions of the rate schedules labeled
Purchased Power Adjustment.
PURPOSE:
Generally, power supply costs will be recovered through application of the base rates. In the event
that substantial changes in projected power supply costs occur, either increases or decreases, the
Market Cost Adjustment Billing Factor will be activated to provide for increases or decreases in the
City's charges for electric service. The Electric Utility Director shall develop and recommend a MCA
Billing Factor to be effective on a specified date for the approval of the City Council.
APPLICATION OF MARKET COST ADJUSTMENT:
When applicable, the Market Cost Adjustment Billing Factor (MCABF) for a particular rate schedule
as designated in the attached MCABF table, in cents per kWh, shall be applied to kilowatt-hours
sold on and after the effective date, and continuing thereafter until the next base rate change or until
a revision to the Market Cost Adjustment Billing Factor becomes effective. The dollar amount to be
added to or subtracted from each bill due to the Market Cost Adjustment shall be obtained by
multiplying the number of kilowatt-hours for which the bill is rendered by the applicable Market Cost
Adjustment Billing Factor.
CALCULATION OF THE POWER COST ADJUSTMENT BILLING FACTOR:
1. When the Electric Utility Director deems that substantial changes in power supply costs have
occurred relative to the costs included in base rates, the Market Cost Adjustment Billing
Factor shall be activated following the approval of the City Council.
2. The Billing Factor shall remain in effect until the next base rate change or until a revision to
the Billing Factor is necessary.
3. While the Billing Factor is activated, a Market Cost Adjustment account shall be maintained.
Entries into this account shall be:
a. The balance from the previous month;
b. The increase or decrease in charges for electric service billed using the applicable
Billing Factor; and
C. Any interest accruing to the account.
4. The MCA Billing Factor shall be designed by giving consideration to the following factors:
a. Rate stability is desirable and frequent changes in the MCA Billing Factor are
undesirable.
b. The financial integrity of the Electric Utility Department shall be maintained by
applying a MCA Billing Factor, when necessary, to ensure that the Electric Utility
Department does not overcollect or undercollect the revenue required for sound
financial operation.
5. The Electric Utility Department shall furnish to the City Council a notice of any proposed
activation or change in the MCA Billing Factor. Any activation or change in the MCA Billing
Factor requires approval by the City Council.
6. The Electric Utility Department generally shall make the MCA Billing Factors effective as of
the first day of the appropriate month. Adjustments to the MCA shall be no more frequent
than quarterly and no less than semi-annually.
MARKET COST ADJUSTMENT BILLING FACTOR
The Market Cost Adjustment Billing Factor by designated rate schedule, in
cents per kilowatt-hour, shall be shown in this Section. Certain classes may
have a tiered MCABF by level of monthly consumption.
Class
Cents per
kWh
Date
Effective
EA, EE under 300 kWh
1.250
June 1, 2001
EA, EE 301 to 600 kWh
1.900
June 1, 2001
EA, EE above 600 kWh
3.000
June 1, 2001
ED, EF
0.000
June 1, 2001
EM
0.000
June 1, 2001
EL
0.000
June 1, 2001
G1
2.000
June 1, 2001
G2
2.000
June 1, 2001
G3
0.000
June 1, 2001
G4
0.000
June 1, 2001
G5
0.000
June 1, 2001
11
0.000
June 1, 2001
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. This Schedule MCA — Market Cost Adjustment shall be effective on applicable
electric utility billings prepared by the City of Lodi on or after June 1, 2001.
Approved this 2nd day of May, 2001
ALAN S. NAKANISHI
MAYOR
ATTEST:
SUSAN J. BLA STON
City Clerk
State of California
County of San Joaquin, ss.
I, Susan J. Blackston, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1701 was
introduced at a regular meeting of the City Council of the City of Lodi held April 18, 2001 and was
thereafter passed, adopted and ordered to print at a regular meeting of said Council held May 2,
2001 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land and Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Pennino
I further certify that Ordinance No. 1701 was approved and signed by the Mayor on the date of its
passage and the same has been published pursuant to law.
Approved to Form:
RANDALL A. HAYS
City Attorney
3
SUSAN J. BLACKSTON
City Clerk