HomeMy WebLinkAboutAgenda Report - June 19, 2002 I-05AGENDA TITLE: Adopt resolution approving the revision to the Market Cost Adjustment billing factor
for the Home Comfort Discount related to electric rates (EUD)
MEETING DATE: June 19, 2002
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution approving the revision to the Market
Cost Adjustment (MCA) billing factor for the Home Comfort Discount (HCD)
related to electric rates as attached.
BACKGROUND INFORMATION: The revision to the MCA schedule for the Home Comfort Discount (HCD)
benefits the customers who were most affected by the changes in the MCA
last summer. Under this summer's HCD, those customers in the residential
EA class and the Commercial G1 and G2 classes will receive a reduced electric rate for consumption above last
summer's level of consumption. Because the EUD is surplus in power in the summer (this summer), it has the energy
available. The EUD would like to make this surplus energy available for its own customers before being sold to the
electric market place. This structure preserves a target EUD revenue level yet provides the opportunity for customers
to choose to consume efficiently above last summer's levels at a reduced cost. The greatest benefit from this discount
will accrue to customers who conserved the most last summer.
The EUD continues to advocate efficient use of energy. The MCA and the EUD electric rate structure communicates
higher cost in the summer than in the winter for base consumption. The EUD will continue aggressively marketing its
public benefit funded demand side management and energy efficiency programs.
The Residential All Electric rate (EE) MCA is also adjusted in the MCA schedule to reflect changes in PG&E's rate
baselines and to competitively meet PG&E's structure.
FUNDING: None required
ANV/BPAst
C: City Attorney
Finance Director
Alan N. Vallow
Electric Utility Director
APPROVED: �5� 4::;�a , zz:==%
Dixon Flynn .—City anager
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Electric Department
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. 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 will be activated to provide for increases or
decreases in the City's charges for electric service.
Rates:
The Market Cost Adjustment (MCA) is applied to speck classes as a cents per kWh
charge by a Market Cost Adjustment Billing Factor (MCABF). For some classes, the
MCA may be zero. The following schedule provides the MCABF by class.
MCA 113 Effective August 1, 2002
Ordinance No. 1701
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 Gasses
may have a tiered MCABF by level of monthly consumption. Certain
classed are eligible for Home Comfort Discount component of the MCA as
designated by (HCD) as described below. Seasonal MCA change for
some classes is designated by Winter and Summer as defined by the rate
class it applies to.
Cents per Date
lass kWh Effective
EE under 300 kWh
2.500
August 1, 2001
E 301 to 600 kWh
2.500
Au ust 1, 2002
E above 600 kWh
2.700
August 1, 2002
under 300 kWh Winter
2.500
Au ust 1, 2002
301 to 600 kWh Winter
3.500
August 1, 2002
above 600 kWh Winter
4.500
August 1, 2002
under 300 kWh Summer
2.500
August 1, 2002
301 to 600 kWh Summer
3.500
August 1, 2002
above 600 kWh Summer
4.500
August 1, 2002
under 440 kWh Summer HCD
0.00
August 1,2002
above 441 kWh Summer HCD
-3.818
August 1,2002
ED, EF
0.000
August 1, 2001
M
0.000
August 1, 2001
L
0.000
August 1, 2001
1
3.000
Au ust 1, 2001
1 HCD
-3.467
August 1, 2002
2
2 HCD
3.000
.5630
August 1, 2001
August 1,2002
3
1.900
August 1, 2001
41.900
August 1, 2001
5
1.300
August 1, 2001
11
0.000
Au ust 1, 2001
The Home Comfort Discount (HCD) Elieibiliti
The HCD applies to designated classes as per the MCA schedule above as specified by
the HCD code. The HCD is provided for those customers with a consistent billing history
that consume more energy on a kWh per day basis between a billing month in 2002 as
compared with a billing month in 2001. The HCD MCA replaces the MCA for that
consumption beyond the previous year's consumption. The non-HCD MCA applies to all
consumption at the previous year's consumption. Customers receiving any other
discount are not eligible for the HCD. The HCD applies to bills rendered between
August 1, 2002 and through October 1, 2002.
MCA 1/3 Effective August 1, 2002
Ordinance No. 1701
A consistent billing history is required. A consistent billing is defined as follows:
• No change in address
• No change in rate Gass
• Billing history allowing a comparison to the previous year
• Billing days between 20 and 50 days available for both periods is required.
MCA 1/3 Effective August 1, 2002
Ordinance No. 1701
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RESOLUTION NO. 2002-140
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING REVISION IN THE MARKET
COST ADJUSTMENT (MCA) SCHEDULE
------------------------------------------------------------------------
------------------------------------------------------------------------
WHERAS, the revision to the MCA schedule for the Home Comfort Discount (HCD)
benefits the customers who were most affected by the changes in the MCA last summer; and
WHEREAS, under this summer's HCD, those customers in the residential EA class and
the Commercial G1 and G2 classes will receive a reduced electric rate for consumption above
last summer's level of consumption; and
WHEREAS, because the Electric Utility Department (EUD) currently has a surplus in
power for the impending summer months, it wishes to make this surplus energy available to its
own customers before being sold to the electric market place; and
WHEREAS, this structure preserves a target EUD revenue level yet provides the
opportunity for customers to choose to consume efficiently above last summer's levels at a
reduced cost. The greatest benefit from this discount will accrue to customers who conserved
the most last summer; and
WHEREAS, the EUD continues to advocate efficient use of energy. The MCA and the
EUD electric rate structure communicates higher cost in the summer than in the winter for base
consumption. The EUD will continue aggressively marketing its public benefit funded demand-
side management and energy efficiency programs; and
WHEREAS, the Residential All Electric Rate (EE) MCA is adjusted in the MCA schedule
to reflect changes in PG&E's rate baselines and to competitively meet PG&E's structure.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby
authorize a revision to the Market Cost Adjustment (MCA) Schedule attached as Exhibit A.
Dated: June 19, 2002
------------------------------------------------------------------------
I hereby certify that Resolution No. 2002-140 was passed and adopted by the Lodi City
Council in a regular meeting held June 19, 2002 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Nakanishi, and Mayor
Pennino
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2002-140
0 City
of •
Electric Department
SCHEDULE MCA — MARKET COST ADJUSTMENT
APPLICABILITY:
EXHIBIT Al
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. 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 will be activated to provide for increases or
decreases in the City's charges for electric service.
Rates:
The Market Cost Adjustment (MCA) is applied to specific classes as a cents per kWh
charge by a Market Cost Adjustment Billing Factor (MCABF). For some classes, the
MCA may be zero. The following schedule provides the MCABF by class.
' 1/3
- a kx1
Ordinance • 1701
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. Certain
classed are eligible for Home Comfort Discount component of the MCA as
designated by (HCD) as described below. Seasonal MCA change for
some classes is designated by Winter and Summer as defined by the rate
class it app lies to.
Class
Cents per
kWh
Date
Effective
EE under 300 kWh
2.500
August 1, 2001
EE 301 to 600 kWh
2.500
August 1, 2002
EE above 600 kWh
2.700
Au ust 1, 2002
EA under 300 kWh Winter
2.500
August 1, 2002
EA 301 to 600 kWh Winter
3.500
August 1, 2002
EA above 600 kWh Winter
4.500
August 1, 2002
EA under 300 kWh Summer
2.500
August 1, 2002
EA 301 to 600 kWh Summer
3.500
August 1, 2002
EA above 600 kWh Summer
4.500
August 1, 2002
EA under 440 kWh Summer HCD
0.00
August 1,2002
EA above 441 kWh Summer HCD
-3.818
August 1,2002
ED, EF
0.000
August 1, 2001
EM
0.000
August 1, 2001
L
0.000
August 1, 2001
1
3.000
August 1, 2001
1 (HCD)
-3.467
August 1, 2002
2
G2 HCD
3.000
.5630
August 1, 2001
August 1,2002
G3
1.900
August 1, 2001
G4
1.900
August 1, 2001
5
1.300
TWgust 1, 2001
11
0.000
August 1, 2001
The Home Comfort Discount (HCD) Eligibility
The HCD applies to designated classes as per the MCA schedule above as specified by
the HCD code. The HCD is provided for those customers with a consistent billing history
that consume more energy on a kWh per day basis between a billing month in 2002 as
compared with a billing month in 2001. The HCD MCA replaces the MCA for that
consumption beyond the previous year's consumption. The non-HCD MCA applies to all
consumption at the previous year's consumption. Customers receiving any other
discount are not eligible for the HCD. The HCD applies to biNs rendered between
August 1, 2002 and through October 1, 2002.
MCA 1/3
Ordinance No. 1701
r
A consistent billing history is required. A consistent billing is defined as follows:
• No change in address
• No change in rate class
• Billing history allowing a comparison to the previous year
• Billing days between 20 and 50 days available for both periods is required.
MCA 1/3
E
Ordinance • 1701
Page 1 of 1
Jennifer Perrin
JV
From: Lew & Barbara McWilliams [mcwilliams@softcom.net]
Sent: Wednesday, June 19, 2002 3:58 PM
To: cityclrk@lodi.gov; nakanishi@lodi.gov; pennino@lodi.gov; hitchcock@lodi.gov; howard@lodi.gov;
land@lodi.gov
Subject: Electric -market cost adjustment
Barbara McWilliams
208 S. School St.
Lodi, CA.95240
June 19, 2002
June 13 1 called the electric department to ask questions regarding all the charges on my
electric bill -both commercial and residential. I was told the appropriate person would call
me back in one-half hour. June 17 1 received a call from a lady who said she was hired by
the city to answer questions about the electric billing. However, she did not know any of the
answers to my questions and would have to find someone who did. To date --apparently
she hasn't found anyone who could answer the question --I have not received a call back.
I am not one for wasteful spending or using. When one says, if you use more electricity
than you did last year at this time you will receive a reduced rate, it certainly sounds
wasteful. If this extra electricity can be sold to the outside market for a profit, then that
is what we should do. However, my thought is that the electricity was some that was
purchased at a high price and cannot be sold and make a profit. If this senerio is
correct, then I feel sorry for all of us!!! Getting people used to being wasteful does not
seem like a smart philosophy in any case.
Last year our rates were increased with market adjustments. Mr. Vallow stated he expected
those to come off at the first of the year. I'm certain I must have missed the reason why it
has not ---could you please inform me?
Thanks,
Barbara McWilliams
6/19/02