HomeMy WebLinkAboutAgenda Report - April 7, 1993 (111)CITY COUNCIL METING
March 31, 1993
BUDGET PRESENTATION FOR ELECTRIC UTILITY DEPARTMENT
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Mayor Pennino opened the meeting and reminded the public of
the "Town Hall" Hotline phone number, 333-6896 and of the
new start time of 7:00 p.m. for the City Council meetings
beginning April 7, 1993.
Electric Utility Director Rice presented an extensive
report regarding the Electric Utility Department including
the history, definition, staffing, revenue, rates, etc.
Assistant Electric Utility Director Hansen answered several
questions posed by the City Council.
The following person spoke regarding the matter:
a) Dennis Purvis, 121 East Lockeford Street,
Lodi.
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*I The Lodi. City Council k. •
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A CENTURY OF _POWER AND. PROGRESS
The City of Lodi has been enjoying the comfort and convenience of
electric service since the turn of the century. The Cary brothers
provided limited electric service to the community beginning in
1894, and in 1910 the City of Lodi acquired the system and has
continuously operated and developed the system in line with the
community's growing requirements.
The Lodi Electric Utility has designed, constructed, operated
and maintained the entire electric distribution system that exists
today. That system has undergone several upgrades over the years,
the most significant being the recent construction of the
Industrial Substation located at Cluff Avenue and Lodi Avenue. That
major substation receives bulk power that is then transmitted to
each of three satellite substations strategically located to
distribute the power to industries, businesses, and residences
(Exhibit 1). Each of the three satellite substations is linked to
the major Industrial Substation by two independent paths for
reliability; therefore, a redundant path is available to feed each
substation in case of outage of the other path. The electric
facilities have been expanded to keep pace with population growth
without incurring any indebtedness. There is no outstanding debt
on any of the Lodi electric distribution or substation system.
When the City acquired the electric property, it entered into a
contract to buy all of its bulk power supply from the American
River Electric Company. Subsequently, the American River Electric
Company was purchased by PG&E. The City obtained a continuation of
its wholesale electric power supply frcm FG&E.
A DECADE OF DETERMINATION
The Lodi Ei,ctric Utility purchased ;11 of its power requirements
from PG&E and the City electric rates were slightly below PG&E
retail rates charged in Stockton. The slightly lower rates were
due to fact that the City had its own distribution system and
engineering -maintenance personnel. Then, in 1982, the Lodi
electric operation was successful in obtaining an allocation of
Federal Power from Western Area Power Administration (WAPA) that
resulted in reducing the overall ccst of its wholesale power.
Successful completion of a powerplant construction and financing in
1986 marked the fruition of a cooperative effort by Lodi and eleven
other cities. These cities ;oined together in 1968 to form the
Northern California Power Agency (NCPA), a joint action agency,
which was born of the desire to investigate methods of controlling
the cost of wholesale power. The City presently obtains all of its
power needs from WAPA and a combination of power projects and
third -party purchase transactions administered by NCPA.
Such ccst savings as accrue from :DCPA or the Federal Power purchase
were passed on to the consumers in Lodi, resulting in lower
electric rates and other significant benefits to the citizens of
Lodi.
Therefore, in only one decade, the City has faced the competitive
force of PG&E, been party to numerous lawsuits, but has
successfully prevailed in providing for all of its power production
needs. The only service which is required but not provided by
NCPA is transmission service in Northern California. The city
still relies on PG&E to provide that transmission service in
Northern California so that Lodi can move its bulk power from owned
power plants or power providers to the Lodi city gate. A contract
(the Interconnection Agreement) with PG&E provides for our use of
the PG&E transmission system for a specified fee.
MAJOR FUNCTIONAL COMPONENTS OF THE ELECTRIC UTILITY BUSINESS
The major functional components of an electric utility system
are shown below:
MAJOR SYSTEM COMPONENTS
Component
®ENERATION
®RANSHISSION
Q ISTRIBUTION
EOPLE
NERATION is that component system in which other forms of
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energy (hydraulic, natural gas fuel, and geothermal) are converted
to electrical energy. The generation plants may be isolated and
separated by many miles from the load center or they may be
centrally located units directly integrated with the distribution
system.
The City looks to NCPA, a membership agency, to secure its
power resource needs involving the following power sources:
ELECTRIC_ GENERATION PLANTS
COMBUSTION TURBINE PROJECT - 125 MW
NCPA's five combustion turbine units (each 25 MW) provide
reserve and peaking power. Two of the units are located in
Alameda, two in Roseville, and one in Lodi. These five units
provide an important scurce of power for NCPA members during peak
electrical demand periods in the hot summer. The units also
provide backup electrical power when ether NCPA generation
resources are unavailable. These units save members approximately
56 million annually.
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GEOTHERMAL POWER PLANTS -232 MW
NCPA's Geothermal Power Plants Nos. 1 and 2, located in the
Geysers Geothermal Resource Area 70 miles north of Alameda, provide
the member utilities with 232,000 kilowatts of dependable,
electrical capacity. The two plants are powered by geothermal
steam produced from adjoining wells and delivered via a
computerized, integrated steam field collection and management
system.
GEOTHERMAL STEAM FIELD
The total developed area of the NCPA Geysers leasehold now
stands at approximately 1,100 acres. NCPA owns the drill rig and
has 67 producing wells capable of supplying sufficient steam for
the generation of 232 NW of electricity. Drilling results were
enhanced by impro-.'ements in drilling techniques by the drilling
staff including the new technique of drilling "forked" wells (one
surface well with two underground legs). A combined endeavor by
the major steam suppliers and power generators in the area is
underway to optimize usefulness of the entire reservoir. Because
of NCPA's continuing efforts in condensate injection projects and
load -following operaticns, the overall efficiency of Geothermal
Plants Nos. 1 and 2, and the planned conversion to low-pressure
operations, the Agency is considered a leader in these efforts.
HYDROELECTRIC PROJECT - 239 MW
The hydroelectric project is constructed along the North Fork
of the Stanislaus River in the "Mother Lode" country of Alpine,
Calaveras, and Tuolumne Counties and spans over 40 miles. Major
components include four dams and three tunnels and several public
recreational facilities. This is NCPA's largest, most complex
project to date, and was constructed under budget and within the
specified completion period.
Water is released from th., New Spicer Meadow Reservoir to
satisfy recreational, fish flow, domestic and irrigation usage, and
to meet NCPA's energy demand for power generation at the
Collierville Powerhouse. This water flows into Highland Creek that
meets the North Fork Stanislaus River. Water is finally impounded
in the McKays Point Reservoir. A small diversion darn was
constructed on Beaver Creek, a tributary of the North Fork
Stanislaus River, to divert additicna'_ water from Beaver Creek into
t.ie McKays Point Reservoir.
From McKays Poi-::, the water enters an 18 -foot diameter, 8.5
mil,: tunnel. The water picks up the gravitational energy as it
fails the distance of 2270 feet fry:'. McKays Point to the
Collierville Powerhouse. The energy is sufficient to rotate two
large turbines and generators weighing a total of 422 tons at a
speed of 4C5 revolutions per minute. The electric power created by
the generators is dispatched to :;CPA members to satisfy in part
their electric energy requirements. This plant's capacity is more
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than twice the capacity requirement of the Lodi Electric System.
The hydroelectric powerplant was placed into commercial
operation on February 1, 1990.
FUTURE -- STIG GAS TURBINE PROJECT - 50 MW
This Steam Injected Gas Turbine (STIG) Project will be located
near the Lodi the White Slough Water Pollution Control Facility.
It will be a high efficiency combustion turbine power plant to be
fueled by natural gas. Heat of tie combustion turbine unit exhaust
is used to generate steam that is then injected back into the
combustion turbine unit - increasing power output and fuel
efficiency.
The environmental impact report was prepared by NCPA
describing the need for the Project, alternatives to the Project,
including conservation, and mitigation measures to minimize
environmental impacts. The Project uses recycled wastewater with
disposal in a deep injection well. Two public hearings were held
in the Lodi area where comments were received from the public.
Project features, such as the transmission line route, were
modified in response to public comments.
The EIR was approved June 1991 and the authority to construct
permit from the local air pollution control district was received
September 1991. The project will utilize a General Electric LM -
5000 gas turbine (essentially an aircraft jet engine that powers
the Boeing 747). There are a number of nearly identical projects
in operation in California with more being constructed.
The unit will normally run on natural gas; however two days`
supply of propane will be stored on-site as a secondary fuel in the
event of a gas curtailment. The unit will operate as a "swing"
resource depending on the availability of hydroelectric power and
other inexpensive energy sources.
When completed and operating, the Project will have a full
time staff of approrimateiy eight. On-site construction will start
in the later half of 1993 with completion scheduled for January 1,
1995.
PURCHASED POWER CONTRACTS
WESTERN AREA POWER ADMINISTRATION ----
Western Area Power Administration (WAPA) is a power marketing
agency within the U.S. Department of Energy which controls and
administers all federal power transactions into and out of Northern
California. WAPA markets power from the Central Valley Project, a
federal multi -use hydroelectric development in northern California
operated by the U.S. Bureau of Reclamation and includes Keswick Dam
and Shasta Dam. Lodi has entered into an agreement with WAPA to
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pr:7:de electric power to Lodi until December 31, 2004.
This agreement with MAPA provides approximately thirteen
ler=ent (13%) of the entire Lodi electric load. The remaining
power requirements are obtained through NCPA, either by owned plant
;reduction or power purchase transactions brokered by NCPA.
MIDWAY -SUNSET ----
Midway-Sunset (MS) is a cogenerator operating a plant near
Bakersfield, CA. The plant consists of three GE Combustion Turbines
(tc=al capacity of 230MW) as part of a steam production cycle to
enhance oil production. All plant process water needed is
recovered from the oil produced in the oil fields and separated via
an oil/water separator that utilizes heat in the separation
process.
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The plant production is sold off as follows: .
a) 200MW all hours sold to Southern Cal. Edison
b) 30MW Peak and partial peak hours sold to PG&E
c) The remaining 30MW production off-peak hours is
sold to NCPA at a monthly contract index end user
gas price.
The contract is shaped to provide the energy through 1995 and
become evergreen, with notice, thereafter.
SEASONAL CAPACITY AND ENERGY EXCHANGE ----
The City of Seattle, Washington operates a winter peaking
municipal electric system and Seattle has surplus capacity that
can generate energy during the summer. Lodi is the reverse - a
s:: -Ter peaking system with surplus capacity that can generate
energy during the winter, once the STIG Project is constructed.
Under this Agreement, the surplus capacity would be swapped
between the parties as follows:
* Lodi would use Seattle's surplus capacity in the summer
* Seattle would use Lodi's surplus capacity in winter
Nc cost to either city is involved since the capacity exchanged is
sur- us to each system and not otherwise needed.
The Agreement requires that energy must also be exchanged
seascnally. An amount of energy will be supplied by Seattle in the
s•,:-_-:er, and an equal amount of energy will be supplied by Lodi in
tne .zinter, plus 203. The 120% winter return energy can be provided
ty _cdi with our share of the STIG project. Addi: onall:,, winter
_s :he most eff:c:er.: period to operate the ;__...
WE HAVE OUP CAPACITY NEEDS MET THROUI;H 2004 - .cO NEW CAPACITY
..:_ :-_JWS HELPS STABILIZE RATES OVER THAT PERIOD.
BRANSMISSION is that system component involved with conveying
large blocks of electrical energy from the sources of generation to
bulk power substations for ultimate distribution to the customer.
The Interconnection Agreement (IA) with PG&E provides for
transmission use only within the Northern California service area
of PG&E. Hydroelectric and coal -based generation in the Pacific
Northwest presents an economic market from which to obtain seasonal
power to supplement native generation in California. Previously
existing transmission paths to the Pacific Northwest were fully
subscribed; therefore, new construction was necessary.
The Transmission Agency of Northern California (TANC), a joint
powers agency, was, created by fifteen public entities including
Lodi, to evaluate'and construct transmission projects: After more
than three years 'of study and public review, Western Area Power
Administration (WAPA) decided to participate in the construction,
operation and maintenance of a TANC proposed interstate
transmission project utilizing WAPA's existing sy:,tem.
The project consists of:
A 500 -kilovolt transmission line between the Malin, O.egon area
(near the California -Oregon border) and the Tesla Substaticn nedr
Tracy, California. A significant portion of the new 500 -kilovolt
transmission project is an upgrade of a preexisting WAPA 230 -
kilovolt transmission line. The transmission path is 340 miles
long. This project provides an important link between the Pacific
Northwest and California, providing for the transfer of about
1600MW ,f additional power. WAPA and TANC were lead agencies for
environmental review of the project under federal and state
environmental laws. The ability to share power with utilities
in the Northwest will provide access to more diverse and economic
power resources, reducing dependence on oil and gas-fired
generation and deferring construction of new power plants to meet
peak loads.
The seasonal capacity and energy exchange with Seattle, Washington
is a direct result of the TANC activity that created this new
transmission path to the Pacific "orthwest. The Lodi electric
system will be able to prolong the need to construct new generation
facilities until after 2004. That delay in imposing new costs of
plant construction will have a stabilizing influence on local rate
levels. Additional cost savings accrue from both the economical
exchange between the utilities as well as the full utilization of
the respective electric system capacity throughout the year.
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ISTRIBUTION is that system component that delivers energy from
generation plants or a transmission system to the customers. It
includes the substations that reduce the high voltage of the
transmission system to a level suitable for distribution, and the
-:_.:its that radiate from the substation to the customers.
There are approximately six thousand wood poles throughout
L:di. Pole life is generally fifteen to twenty-five years. Our
system is aging, so we must test for decay and do appropriate
maintenance. A contract with a private firm provides an on-going
pr:gram of pole testing for deterioration. Results from the test
procedure determine which poles have to be changed out or
chemically treated to prolong life. This maintenance program
prevents accidents, improves reliability and prolcngs useful life
of our wood poles.
DISTRIBUTION RELIABILITY OF SERVICE"- Consumers are dependent upon
a power supply that is always available when called upon. Our
a:gressive tree trimming program helps avoid most local outages.
Trees grow very well in Lodi, but that growth can be a problem in
wind and rain storms. We contract with a private firm to provide
a :hree-year cycle of trimming to keep the lines clear - that is,
_:will take three years to cover the entire city before the cycle
:s repeated.
Annual aerial surveillance of poles and structures is
:formed using an infra -red scanner that senses :eat given off at
fal.:lty connections or damaged areas. Prompt repair of such
_r:Mems cuts down on the power losses in our system. Reduction of
:.ler losses in the system represents a significant cost savings,
..-.:ndreds of thousands of dollars can be lost in inefficient system
operation.
The undergrouna system consists of 110 miles of buried
__-cults. This compares to about 120 miles of overhead circuits.
we do experience corrosion and have to replace buried conductor
periodically.
Additional to our inspections of the distribution system, the
s:aff of the California Public Utility Commission (CPUC) performs
an annual inspection of the Lodi electric system. A copy of the
:FUO inspection report is given to us with a listing of necessary
changes or appropriate repairs. Therefore, the local electric
system is submitted to many inspections which are intended to
:-.s .ire that the system is safe both for the public and for our
- rews .
EOPLE are required to c:.,cr i:r.ate, •ae:;ig:,, ::struct, operate
__-._ maintain. this :crplex syr. _m. rhe .,i _, tr . _ _ : il:ty has been
:ariized into Tour ciiv_s:on:: Eng: nc,er_ng, ._:os 1 Resources,
:_-.s_ruction '1ainter.ance T:vi :perat:ons.
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A brief description of some of the staff functions includes:
Engineering - develop and maintain construction standards and
specifications. Plan, design and administer construction of system
additions, reconstruction, subdivision work, substations, and
maintenance work. Consult with architects, planning engineers,
developers, other utilities and departments regarding design,
easements, and rights-of-way. Provide technical assistance to
customers regarding pcwer quality, energy audits and efficient
utilization. This section also controls environmental compliance
and disposal for Electric Utility Hazardous Waste Materials.
Rates and Resources - analyzes and prepares background data
supporting rate design, power supply activity, customer billing and
assistance for large customers.
Construction & Maintenance_
Metering Department - install, maintain and repair
metering equipment from the basic residential type to the
sophisticated computer controlled time -of -use meters
(23,000 meters). Conduct scheduled Periodic meter test
program for all customer classes. Perform monthly meter
readings on large industrial accounts. Investigate power
diversion (theft), meter vandalism problems and high -low
bill complaints.
Field Crews1Troubleshooting - mobile, well trained
experts who perform construction and maintenance of the
entire distribution system from transmission
lines/substations to the customer service on both
overhead and underground circuits.
Transformer Repair section - is a potential moneymaker
that has not been sufficier..rlt implemented. We need a proper
"service area" with repair bonch and overhead pulley system.
TechnicianjElectrician.section - highly specialized & trained
group capable of working on a variety of complex and
sophisticated systems of the Electric Utility and the Public
Works Department. The group has responsibility for
installation, maintenance, and repair of various electric
apparatus ranging from substations to computer based
protective equipment of the entire electric System. The
Electrician's responsibility includes all Public Works
Department facilities; t! -Le compie:: control systems at White
Slough; traffic signal systems; water & sewer facilities.
Operations Dispatch Center - -+ur dispatchers respond to calls 24
hours per ctav_ Receive calls relating to Electric, Water and Sewer
problems and dispatch appropriate personnol. They monitor and
control the electric distribution system and the water and sewage
lift stataco systems. Prepare electric system .switching orders for
clearance, load transformers and emergency switching - as well as
directing field personnel during emeraencies to restore service.
THE ELECTRIC UTILITY MISSION
An on-going dedication of the Electric Utility staff is:
1. To obtain adequate, reliable, competitively priced power
supplies and transmission service to meet the needs of Lodi
customers so that the City will be energy self-sufficient and
can continue to be operated as an independent and
interconnected utility; .
2. To develop and manage these energy resources in a manner
that will minimize power cost and will result in greatest
benefits to the people of Lodi;
3. To minimi2e any environmental impact which its required
transmission, production or distribution projects may have.
THE LATEST BUDGET SUMMARY
1993-1994 LODI ELECTRIC SYSTEM BUDGET BALANCE SHEET
OPERATING REVENUES -
Electric power sales are estimated for the future fiscal year
using a computer model of each customer group and combined
into a system energy usage profile. That estimated sales
profile is priced out by applying the existinr rate structure.
The resulting revenue production, supplements, with some other
electric utility income, represents the total amount which is
available to meet all electric utility operating costs.
REVENUE REQUIREMENTS -
The primary elements of the Electric Utility's revenue
requirements include: Bulk Power cost provided by our power
supplier NCPA; Operation and Maintenance expenses; funds for
system renewals, replacements, and additions.
1. "BULK POWER" COMPONENT
The bulk power expense covers anticipated operation of the
various power plants, including fuel cost, general and
administrative costs, expected cost of purchased power and
transmission participation. This amount is provided by NCPA
following adoption at the Commission level. The adoptad NCPA
budget applies equally to all members; and is proportioned by
the ownership percentage each member has in each project.
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2. OPERATION & MAINTENANCE - LODI DOMESTIC DISTRIBUTION COST -
A minimum number of personnel are required for basic service
repair, maintenance and construction to assure reliability.
The level of staffing for these activities has been optimally
set at a level that could reasonably restore service in times
of emergency. We cannot maintain enough manpower to handle
the worst situations but must seek a reasonable level
compatible with normal system renewal.
Reducing the basic delivery service to our customers
(Residential or Industrial - same difference because we cannot
isolate one from the other on typical circuits) is not
realistic for at least two reasons. First, ignoring needed
repair for the short term only aggravates system losses and
increases overall cost. Second, reduced reliability (increased
outages driven by reduced maintenance) drives businessmen to
make decisions to change power supplier or move operations,
reducing utility revenue. Customers watch our bottom line in
rates as well as the "reliability of service."
Nothing was included this year for continuing the effort to
place more of our existing system underground. Non-essential
activities were cut from the budget to hold rates steady.
This activity was considered secondary to our main dedication
of maintaining the system. There is no economic "Pay-off" in
making the system more aesthetically pleasing.
While operational economics are not difficult to understand,
the following illustration will help you see why it is prudent
to maintain an efficient Supervision and Engineering group
which directs field crews in repairs to the system:
IMPACT OF SYSTEM LOSSES ON ELECTRIC SYSTEM
Percentages
Energy Demand
60 kV Primary Lines 2.50
Primary -Sec. Transformation 1.20
Secondary Lines & Services 2.10
3.75
1.90
3.25
6% to 7% losses is equal to approx. $2,300,000.
Therefore, for every one percent in losses that can be
obtained by careful attention to the condition of the
system, almost $350,000 can be saved annu..11y.
Energy losses occur where there are corroded, loose or
damaged parts of the electric system.
FAcISFER , GENERAL FUND CHARGES
This ^ayment of F1,367,500 to the 3eneral Fund constitutes
reimbursement of ''ity Administration charges, certain meter
reading, customer billing, warehouse ,Jperation, and other
activities attributable to the Electric Utility operation.
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4 FUNDING THE UTILITY OUTLAY RESERVE
This funding is set aside to cover all anticipated sys em
additions - new construction, major transformer replacement,
land or easement acquisition, extraordinary maintenance items.
5. SUMMARY OF ALL COSTS OF SERVICE NECESSARY TO PROVIrE
ELECTRICITY TO LODI CONSUMERS FOR 1993-1994
6. PROFIT - EXCESS OPERATING REVENUE (OPERATING REVENUE LESS
REVENUE REQUIREMENTS)
WHAT IS THE "CONTRIBUTION TO THE GENERAL FUND"
This represents a transfer of profit (excess operating
revenue) collected through electric rates. The transfer is
made to the City General Fund in a form of in -lieu tax or
return on investment. Over the past few years, a ceiling of
eight percent (8%) of Gross Sales revenue was used as a guide
to the reasonable amount to transfer. Applying a standard
percentage and using a dependable (audited) gross revenue
figure from the prior period appears to be a prudent and
"reasonable" procedure. This procedure recognizes that the
standard percentage should be applied to the most reliable
indication of the performance of the utility in the most
recent year.
Proposition 4 makes it possible for a dissatisfied
ratepayer to challenge excessive fund balances, a transfer of
utility revenues, and the rate that made the transfer-
possible, if the rate produced revenues that "exceed[ed] the
costs reasonably borne...in providing the [utility] service."
It would appear reasonable that a return on investment is one
component of the costs reasonably borne in providing utility
service. The basic traditional concepts of ratemaking appear
to be incorporated into •"alifornia municipal utility law by
the California Supreme Court case, Hansen v. City of San
Buenaventura (1986) 42Ca1.3d 1172. A challenge by a
nonresident customer to a rate differential gave rise to the
City of San Buenaventura case which held that municipalities
may incorporate a return on investment in rates charged
customers.
ELECTRIC RATES AND COMPETITION
Applying the existing electric rates to the forecasted 1993-
1994 annual load (by customer group) produced sufficient revenue to
not only meet the Electric Utility's cost to provide electric
service but also to provide revenues of eight percent of gross
sales, which revenues can be transferred to the City General Fund
to supplement td:•: and fee r' c' p:s. ;4e are able to meet our
revenue obligations, provide n '.easonabie" return on investment,
and still keep 3 "competitive between our electric rates and
the PG&E electric rates.
NCPA POWERPLANTS:
• COMBUSTION TURBINE PROJECT
• GEOTHERMAL POWERPLANT PROJECT
• HYDROELECTRIC PROJECT
FUTURE:
w STEAM -INJECTED GAS TURBINE
SEASONAL CAPACITY EXCHANGE WITH
SEATTLE
• SEATTLE - WINTER PEAKING UTILITY
(SURPLUS SUMMER CAPACITY)
• LODI -SUMMER PEAKING UTILITY
(SURPLUS WINTER CAPACITY)
• EXCHANGE OF SEASONAL CAPACITY. BY UTILITIES:
v NO SIGNIFICANT COST
if MORE FULLY UTILIZES SYSTEMS
v REPLACES NEED FOR CONSTRUCTION OF NEW
POWERPLANT TO MEET FUTURE LOAD GROWTH
N
USE OF PRIVATE CONTRACTORS
• TRANSMISSION SERVICE
• TREE TRIMMING
• POLE TESTING AND TREATMENT
• INFRA -RED SYSTEM SURVEY
• HAZARDOUS MATERIAL DISPOSAL
• HEAVY EQUIPMENT MAINTENANCE
• POWER TRANSFORMER OIL TESTING
• SUBSTATION LANDSCAPE MAINTENANCE
• RADIO MAINTENANCE
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ELECTRIC UTIUTY DEPARTMENT
ORGANIZATIONAL CHART JANUARY 1993
ELECTRIC
UTILITY
DIRECTOR
HENRY RICE
ASST_ aMTRIC
urvw
uun=.«Ast
DEPARTMENT
SECRETARY
DOTH BONNET
ADWIZSTRATIVE
CLERK
tuei6 N0a5211 9EIROCEE CHAPMAN
II
- r -I 2' r 1
1 1 1 1
RATESCONSTRUCTION UTILITY
RESOURCES MAINTENANCE OPERATIONS
DMSION DIVISION DMSION
1 1 I 1
II/ i tt tI II
EXHIBIT 3
ELECTRIC UTILITY DEPARTMENT
ORGANIZATIONAL CHART JANUARY 1993
RESOURCES
DN67ON
MANAGER
RATES AND
RESOURCES
Jaw 'aoc STONE
- SR. ELECTRIC
UTILITY RATE
ANALYST
1
ELECTRIC
UTILITY RATE
ANALYST
1
MSEETC'Eraq4C
E.MT IC
METER
TECHNICIAN
1
MEltANG
ELECTRICIAN
1
(ENNEERNC
DMSION
MEL CIENICII
DE cN
ESTIMATING
SECTION
ELECTRICAL
ESTIMATOR
ELECTRICAL
ESTIMATOR
ASSISTANT
1
4
/It
J
STANDARDS
SECTION
ELECTRICAL
ENGINEER
STANDARDS
1
EXHIBIT 4
oIaown as
C
ELEGMCIIL
TEENANCAN
ELECTRIC
SYSTEMS
ELECTRICSTSTEmS
SUPERveSOR
ELECTRIC UTILITY DEPARTMENT
ORGANIZATIONAL CHART JANUARY 1993
4
111
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OPERATIONS
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RANsFoRmet) 1C/ 1 - l SERv
REPNR
ELECTRIC ELECTRIC EtEcTraC
APPARATUS FOREMAN TROUBLE
MECHANIC FOREWOMAN SHOOTER
2 2 1 3 3
ELECiRE
JNEMAN
UNEWOMAN
7
;1 011204111.7011
EXHIBIT 5
ELECTRIC UTILITY DEPARTMENT
STAFFING
LODI VS. OTHER "ELECTP;;," CITIES
ALAMEDA REDDING ROSEVILLE LODI
Number of Employees 100 85 72* 37*
(Electric Utility Function)
Number of Meters 31,000 32,000 25,000 22,000
Meter Reading, Billing,Cotlection Yes No No No
Warehousing Yes Yes** No No
Service Provided for Other No No Yes Yes
Departments (2 employees) (2.5 employees)
Dispatch Provided for Other No No No Yes
Departments (1.5 employees)
• Does not include the employees providing service for other departments.
** Electric only by 1 employee
1
i
1
ELECTRIC UTILITY DEPARTMENT 1993-94 BUDGET SUMMARY
OPERATING REVENUES
Sale of Electricity $35,187,050
Other Income: (Joint Pole, Salvage,
Interest Income & Misc.) 105,000
TOTAL OPERATING REVENUE: $35,292,050
REVENUE REQUIREMENTS
Maintenance & Operation $ 3,243,425
Utility Outlay:
Capital 739,380
Supplemental Items 24,900
Other Supplemental Items 222,400
Interfund Transfers 1,367,500
PL & PD Insurance 39,000
Bulk Power Purchases 26,565,400
TOTAL REVENUE REQUIREMENTS:
Operating Revenue less Revenue Requirements (PROFIT):
Total Revenue Requirements and Profit:
DISTRIBUTION OF PROFIT:
In Lieu Franchise Tax (8% of prior years
sales revenue*)
Rate Stabilization (projected energy tax)
TOTAL:
$32,202,005
$ 3,090,045
$35,292,050
$ 2,762,101
327,1364
$ 3,090,045
* Source: 1992 Comprehensive Annual Financial Report, Excluding CEC Tax.
LODI ELECTRIC UTILITY REVENUE
TRANSFERS TO CITY GENERAL FUND
FY1988 - 1989 $2,100,000
FY1989 - 1990 $1,704,730
FY1990 - 1991 $2,325,635
FY1991-1992 $3,000,000
FY1992 - 1993 $3,100,000
112,230365
5 - YEAR INCREASE
48%
EXHIBIT 25
IN -LIEU -OF -TAX
CONTRIBUTION
TO GENERAL FUND
Survey of NCPA Members
BASED ON
GROSS
REVENUES
X
NONE
NONE
ALAMEDA
* BIGGS
• GRIDLEY
HEALDSBURG
LODI
LOMPOC
PALO ALTO
PLUMAS-SIERRA
ROSEVILLE
SANTA CLARA
UKIAH
X
NONE
X
X
X
BASED ON
PLANT
IN SERVICE
NONE
NONE
X
x
X
NONE
* Interpreted as "tax" and violation of Proposition 4
EXHIBIT 26
IN -LIEU -OF -TAX
CONTRIBUTION
TO GENERAL FUND
Survey of NCPA Members
(Gross Revenue Base)
PERCENT OF
CITY GROSS REVENUES
ALAMEDA 5-10°l0 •
LODI
ROSEVILLE
SANTA CLARA
UKIAH
8%
4%
5%
6%
* Actual percentage determined by Electric Utility
Board considering financial position utility
and competetiveness with PG&E.
EXHIBIT 27
Maintenance & Operation
Utility Outlay:
Capital
Supplemental Items
Other Supplemental
Interfund Transfers
PL & PD Insurance
TOTAL (LOCAL):
ELECTRIC UTILITY DEPARTMENT
"LOCAL OPERATION"
BUDGET COMPARISON
1992-93
$ 3,321,421
1,271,805
84,000
Items 265,000
1,367,500
39,215
$ 6,348,941
1993-94 Difference % Diff.
$ 3,243,425 - $ 77,996 - 2.35
739,380
24,900
222,400
1,367,500
39,000
$ 5,636,605
- 532,425 - 41.86
▪ 59,100 - 70.36
▪ 42,600 - 16.08
0 0
215 - 0.01
- $ 712,336 - 11.22
J
1
6AVINGS
NUMBER OF (COMPARISON
CUSTOMER CLASS CUSTOMERS TO PG&E)
RESIDENTIAL
SMALL COMMERCIAL
LARGE COMMERCIAL
INDUSTRIAL
TOTAL
EXHIBIT 28A
18,900
2,550
300
16
21,760
19.72%
17.18%
15.12%
17.27%
17.71%
KWH
CONSUMPTION NUMBER OF
CUSTOMER CLASS (000) CUSTOMERS
RESIDENTIAL 124,689 18,900
SMALL COMMERCIAL 37,344 2,551)
MEDIUM COMMERCIAL 83,689 300
LARGE COMMERCIAL 99,262 16
(INDUSTRIAL)
TOTAL 344,984 21,766
a
J
RESIDENTIAL BILL COMPARISON
CITY OF LODI .PG&E
11/1/91 1/1/93
$55.77 $68.98
EXHIBIT 30
1
LODI UTILITY
"IN-LIEU"/FRANCHISE PAYMENTS
FY 1988 -- 1992
PG&E TELEPHONE LODI ELECTRIC
FISCAL YEAR GAS COMPANY CABLE TV SYSTEM
1988 - 1989 $98,733 . -0- $88,830 $2,100,000
1989 - 1990 111,768 -0- 92,065 1,704,730
1990 - 1991 129,672 -0- 101,317 2,325,635
1991-1992 142,650 -0- 107,870 3,000,000
1992 - 1993 LOAN Q00 = 0- 1 LQ,QOQ 3,109,QQQ
FIVE-YEAR TOTAL $642,823 -0- $500,082 $12,230,365
EXHIBIT 33
LODI ELECTRIC "COMPETITIVENESS"
• REPLACED PG&E AS ENERGY SUPPLIER IN 8 YEARS
• ELECTRIC RATES ABOUT 18% BELOW PG&E STOCKTON
• CONTRIBUTES ABOUT 20 TIMES AS MUCH AS PG&E TO
THE CITY GENERAL FUND - SUPPLEMENTING
CONVENTIONAL TAX RECEIPTS
• TRIMMED DOMESTIC BUDGET 11.22% ($712,336) IN ORM--;
TO AVOID AN INCREASE IN ELECTRIC RATES
• MAINTAINS EXCELLENT RELIABILITY AND SERA/ICE
RESPONSE WITH FEWER EMPLOYEES
7
1
OUR COMPETITIVENESS AS A UTILITY
HAS TO BE MEASURED BY HOW WELL
WE HELP TO KEEP OUR CUSTOMERS
COMPETITIVE
"In 1968 Lodi became the only San Joaquin County municipality to
provide its entire community with electric savings by joining the
Northern California Power Agency. In essence, the city formed its
own company, the Lodi Electric Company. ....
In the shadow of Proposition 13, which cut sources of funding, and
proposed federal budget cuts, Lodi's electric company rakes in
about $2.4 million yearly to help finance city services. The
revenues 'allow the city to hire more police officers and
firefighters and maintain street lighting, sidewalks and city
parks. ....
I'm sure the opportunity was available to us, but our civic leaders
were not that farsighted," said Ronald Miller, administrative
assistant to Stockton's public works director
Stockton Record, May 3, 1986.