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Home My WebLink AboutAgenda Report - August 18, 1993 (66)CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Implementation of Industrial Economic Stimulus Rate Credit To Become Effective with Billing on or After September 1, 1993 (Ordinance No. 1584) MEETING DATE: August 18, 1993 SUBMITTED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council adopt the attached ordinance, implementing a rate credit of 4 mills per kilowatt-hour for customers with demands of one megawatt or more, effective September 1, 1993, which will be reviewed January 1995. BACKGROUND INFORMATION: The California Public Utilities Commission (CPUC) recently revised PG&E electric rate design and reduced large customers' rates. CPUC adjustrzents included comprehensive changes to PG&E's retail electric rate design and separately approved a temporary 4 mills per kilowatt-hour rate reduction to customers with demands o oo—ne--meeggawatt or more. The changes approved by CPUC were generally accomplished on a "revenue neutral" basis (no revenue shift between customer classes). By separate Resolution E-3329, the CPUC approved PG&E's request to provide rate discounts to customers with peak demands greater than one megawatt (1,000 kW) to become effective July 15, 1993. In order to maintain the City's present competitive advantage with respect to PG&E, it is recommended that the electric rate schedule for our largest customers (Schedule G-5) be reduced by application of a 4 mills per kilowatt-hour discount. The Schedule G-5 rate applies to customers with peak demands greater than one megawatt. The decrease in anticipated revenue for FY 1993-94 annual period resulting from the above change is estimated to be $269,774. The funds required to implement the credit for the annual period would come from the Electric Rate Stabilization Fund. This fund was created by the City Council several years ago to accommodate such rate revenue fluctuations. The Electric Utility FY 1993-94 budget projected a deposit of $122,595 into the Rate Stabilization Fund following FY 1992-93 operations. This rote change is intended to help attract and keep major employers in the State and in Lodi. No increase for other customers will result from this change. It should be noted that the G-5 customers have all engaged in significant energy conservation efforts which help the Electric Utility keep rates down for all customers. �!/ APPROVED _ _ THOMAS A. PETERSON ,a ydaE papa City Manager UTRATES.CC/CO.COM CC -1 "Implementation of Industrial Economic Stimulus Rate Credit to Become Effective with Billing on or After September 1, 1993." August 18, 1993 Page two A recommended effective date for the Lodi industriai rate discount is September 1, 1993. Therefore, all bills rendered on or after September 1, 1993 would reflect the 4 mills per kilowatt-hour discount for customers with peak demands above one megawatt. This will require modification of Ordinance 1525, adopted October 16, 1991 setting rates for certain industrial/commercial customers. An appropriate review of the industrial rate discount should be undertaken early in 1995, after the CPUC has reviewed PG&E's Industrial Economic Stimulus Rate Credit. A report and recommendation could then be made to the City Council and embodied in the FY 1995-96 budget. FUNDING: Estimated $269,774 for annual period obtained from the Electric Rate Stabilization Fund. Henry J. Rice Electric Utility Director Attach. (6) c: City Attorney Asst. Electric Utility Director Manager, Rates & Resources UTRATES.CC/CO.COM CPUC Revised PG&E Electric Rate Design And Reduced Large Customers' Rates • CPUC approved reduction of rates to customers with demands of 1,000 Kw or more • This rate discount titled "Economic Stimulus Rate Credit" • The rate discount became effective July. 15,, 1993, PG&E INDUSTRIAL ECONOMIC STIMULUS RATE CREDIT O Demands of 1,000 Kw or more O Rate credit of $0.004.. per KWH D PG&E rate expires 12/31/1994 J 11 LODI INDUSTRIAL ECONOMIC STIMULUS RATE CREDIT O Demands of 1,00O.Kw or more D Rate credit of $0.004 per KWH D Lodi rate reviewed 1 \31 X1 995 rj r co co w ■o •� > 0 0 OC �J C3 = 0cn Q CLE i E CO)cts c a) C cu 0CO)Q � 0 6-0 0-0 C ` 0 .� N 4 - 0 Q O (1) v.0 0. 0) W oo co Q C aD (D E E �a D 0 0 s — U U I-- Q n Revenue impact Of Lodi electric system Economic Stimulus Rate Credit: • Total Annual Period Projected Cost to ` implement rate credit = $269,774.04 • The funds required to implement the credit for FY1993-94 would come from the Electric Rate Stabilization Fund • The Electric Utility deposited $ 122,595 into the Rate Stabilization Fund this year Recommended Effective Date For Lodi Industrial Rate Discount: • Applied to all bills rendered on or after September 1, 1993 • Review rate application January 31, 1995 •Report to amity Council regarding future application of rate discount ORDINANCE NO. 1584 � xasassasasaaaasaaa AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AMENDING ORDINANCE NO. 1525, BY MODIFYING THERETO CERTAIN ELECTRIC UTILITY RATES ESTABLISHED IN MUNICIPAL CODE SECTION 13.20.280 FOR CLASS G-5 INDUSTRIAL CUSTOMERS sxxaxaaasaaasasassaxssaassaa:xxasasasasaaassaxxaaaasaas:assssasssasssss BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LODI AS FOLLOWS: SECTION 1. Ordinance 1525 and Section 13.20.280 of the Lodi Municipal A. Code are hereby amended to read as follows: WHEREAS, the California Public Utilitles Commission (CPUC) has reviaed PG&E: electric rate design and reduced large customers, rates; ' 4 and t WHEREAS, CPUC approved a temoorary 4 mills per kilowatt- hour rate reduction to PG&E customers with demands of one megawatt of more effective July 15, 1993; WHEREAS, The City's present competitive advantage with respect to 'i PG&E would be maintained with an appropriate adjustment to customers with demands of one megawatt or more; and WHEREAS, such large customers are presently combined within the Lodi Electric Rate Schedule G-5; and WHEREAS, the City supports the CPUC desire to attract and keep such major employers in the State; and WHEREAS, these large customers in Lodi have engaged in significant energy conservation efforts which have helped maintain low rates for all City electric customers; and ORD1584/TXTA.0IV -1- WHEREAS, #.he anticipated decrease in i.venue over an annual period resulting from this rate reduction is $269,774; and WHEREAS, such revenue reduction can be offset with revenue from the existing Electric Rate Stabilization Fund; and WHEREAS, an appropriate effective date for implementation of this rate discount would be September 1, 1993; and WnREAS, review and recommendation for future disposition of the large customer discount would be made in January 1995. NOW, THEREFORE, DR IT ORDAINED by the City Council of the City of Lodi that Ordinance 1525 is hereby amended by adding thereto a rate adjustment to be known as the "Industrial Economic Stimulus Rate Credit" of 4 mills per kilowatt-hour for customers with demands of one megawatt or more (Class G-5) to become effective with billings on or after September 1, 1993 and be reviewed January 1995. SECTION 2. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 3. This ordinance shall become effective upon final passage and is for the usual and current expenses of the City and is adopted pursuant to Government Code Section 36937(d). These rates shall be in effect for all bills prepared or or after September 2, 1993. SECTION 4. This ordinance shall be published one time in the "Lodi News Sentinel", a daily newspaper of general circulation printed and published in the City of Lodi. ORD1584/TXTA.0IV -2- Approved this c.ay of PHILLIP A. PBNNINO Mayor Attest: JENNIIFER M. PERRIN City Clerk # ac=asasaaasssssssssssassssssas:sssasssssssss:sssssssssssss s:tsssssasasas State of California Cownty of San Joaquin, ss. I, Jennifer M. Perrin, City Cleric of the City of Lodi, do hereby certify that Ordinance No. 1584 was introduced at a'regular meeting of { the City Council of the City of Lodi held August 18, 1993 and was thereafter passed, adopted and ordered to print at a regular meeting of said Council held 1993 by the following vote: Ayes: Council Members - Noes: Council Members - Absent: Council Members - Abstain: Council Members - I further certify that ordinance No. 1584 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. JENNIFER M. PBRRIN City Clerk Approved as to Form BOBBY W. MCNATT City Attorney ORD1584/TXTA.01V -3- CITY COUNCIL PHILLIP A. PENNINO. Mavor JACK A. SIECLOCK Mayor Pro Tempore RAY G. DAVENPORT STEPHEN 1. MANN JOHN R. (Randy) SNIDER August 19, 2993 CITY OF %ODI CITY HALL, 221 WEST PINE STREET P.O. SOX 3006 LODI. CALIFORNIA 95241-1910 (209)334-5633 FAX (:09) 131.6,791 MR ROBERT K WHEELER, PLANT MANAGER GENERAL MILLS INC CALL BOX 3002 LODI CA 95241-1906 THOMAS A. PETERSON City Manager JENNIFER M. PERRIN City Clerk 808 McNATT City Attorney Enclosed is a copy of revised electric rate Schedule G5, General Service - Group 5 Commercial/Industrial and my City Council Communication. In recognition of the need for the City's Electric Utility (and its electric customers) to remain competitive, the City Council has implemented an "Economic Stimulus Rate Credit" for customers on Schedule G5. The credit will be $0.004 per—TciTowatt-hour for bills prepared on or after September 1, 1993. The credit is to remain in effect through January 1995 at which time all rates will be reviewed as part of FY 1995-96 budget preparation process. It is also recognized that customers on Schedule G5 have been those with the most areas for potentially cost-effective electric power conservation activities. We will be contacting all such customers in the future to pursue additional conservation activities with the City. Based on your previous usage, we have calculated the resulting cost decrease on an account by account basis. Should you desire this or other rate related information, please col,tact Jim Doyle, your Senior Electric Utility Rate Analyst, at 333-6811. �CZ-41, . HENRY J. RICE Electric Utility Director Enclosures (2) c: Eric A. Vanhove, General Mills w/enclosures Wade Broughton, General Mills w/enclosures City Councilmembers City Manager Asst. Electric Utility Director Manager, Rates and Resources Senior Electric Utility Rate Analyst CITY C6UNCIL PHILLIP A. PENNINO, Mayor 'JACK A. SIECLOCK Mayor Pro Tempore RAY C. DAVENPORT STEPHEN J. MANN JOHN R. (Randy) SNIDER August 19, 1993 CITY OF LODI CITY HALL, 221 WE1T PINE STREET P.O. sox 3006 LODI. CALIFORNIA 95241-1910 (209) 334.5634 FAX (209) 331-679S MR JOHN VATSULA MAINTENANCE AND OPERATIONS LODI UNIFIED SCHOOL DISTRICT 31 N PACIFIC AVE LODI CA 95242 THOMAS A. PETERSON City Manager JENNIFER M. PERRIN City Clerk BOB McNATT City Attorney Enclosed is a copy of revised electric rate Schedule G5, General Service - Group 5 Commercial/Industrial and my City Council Communication. In recognition of the need for the +",ity's Electric Utility (and its electric customers) to remain competitive, the City Council has implemented an "Economic Stimulus Rate Credit" for customers on Schedule G5. The credit will be $0.004 per owatt-hour for bills prepared on or after September 1, 1953. The credit is to remain in effect through January 1995 at which time all rates will be reviewed as part of FY 1995-96 budget preparation process. It is also recognized that customers on Schedule G5 have been those with the most areas for potentially cost- effe:tive electric power conservation activities. We will be contacting all such customers in the future to pursue additional conservation activities with the City. Based on your previous usage, we have calculated the resulting cost decrease on an account by account basis. Should you desire this or other rate related information, please contact Jim Doyle, your Senior Electric Utility Rate Analyst, at 333-6811. HENRY J. RICE Electric Utility Director Enclosures (2) c: Mike Matranga, Mechanical Supervisor w/enclosures Ci Ty Councilmembers City Manager Asst. Electric Utility Director Manager, Rates and Resources Senior Electric Utility Rate Analyst CITY COUNCIL PHILLIP A. PENNINO. Mayor JACK A. SIECLOCK Maya Pro Tempore RAY C. DAVENPORT STEPHEN J. MANN JOHN R. (Randy) SNIDER August 19, 1993 CITE" OF LODI CITY HALL. 221 WEST PINE STREET P.O. BOX 3006 LODI. CALIFORNIA 95241-1910 (209)334-S634 FAX (2091133-679$ MRS VICKIE VAN STEENBERGE PRESIDENT LODI IRON WORKS 830 S SACRAMENTO ST LODI CA 95240 THOMAS A. PETERSON City Manarf JENNIFER M. PERRIN city ckda BOB McNATT City Attorney Enclosed is a copy of revised electric rate Schedule G5, General Service - Group 5 Commercial/Industrial and my City Council Communication. In recognition of the need for the City's Electric Utility (and its electric customers) to remain competitive, the City Council has implemented an "Economic Stimulus Rate Credit" for customers on Schedule G5. The credit will be $0.004 per owatt-hour for bills prepared on or after September 1, 1993. The credit is to remain in effect through January 1995 at which time all rates will be reviewed as part of FY 1995-96 budget preparation process. It is also recognized that customers on Schedule G5 have been those with the most areas for potentially cost-effective electric power conservation activities. We will be contacting all such customers in the future to pursue additional conservation activities with the City. Based on your previous usage, we have calculated the resulting cost decrease on an account by account basis. Should you desire this or other rate related information, please contact Jim Doyle, your Senior Electric Utility Rate Analyst, at 333-6811. HENRY J. RICE Electric Utility Director Enclosures (2) c: Mike Van Steenberge w/enclosures City Councilmembers City Manager Asst. Electric Utility Director Manager, Rates and Resources Senior Electric Utility Rate Analyst CITY COUNCIL PHILLIP A. PENNINO. Mayor JACK A. SIECLOCK Mayor Pro Tempore RAY G. DAVENPORT STEPHEN I. MANN JOHN R. (Randy) SNIDER August 19, 1993 CITY OF LODI MR LARRY CLAY PRESIDENT PACIFIC COAST PRODUCERS P 0 BOX 1600 LODI CA 95241 CITY HALL. 221 WEST PINE STREET P.O. BOX 3006 LODI. CALIFORNIA 95241.1910 (209)334.5634 FAX (2091111-679% THOMAS A. PETERSON City Manager JENNIFER M. PERRIN City Clerk BOB McNATT City Attomey Enclosed is a copy of revised electric rate Schedule G5, General Service - Group 5 Commercial/Industrial and my City Council Communication. In recognition of the need for the City's Electric Utility (and its electric customers) to remain competitive, the City Council has implemented an "Economic Stimulus Rate Credit" for customers on Schedule G5. The credit will be $0.004 pe�Towatt-hour for bills prepared on or after September 1, 1993. The credit is to remain in effect through January 1995 at which time all rates will be reviewed as part of FY 1995-96 budget preparation process. It is also recognized that customers on Schedule G5 have been those with the most areas for potentially cost-effective electric power conservation activities. We will be contacting all such customers in the future to pursue additional conservation activities with the City. Based on your previous usage, we have calculated the resulting cost decrease on an account by account basis. Should you desire this or other rate related information, please contact Jim Doyle, your Senior Electric Utility Rate Analyst, at 333-6811. HENRY J. RICE Electric Utility Director Enclosures (2) c: Mike Sheehan w/enclosures City Councilmembers City Manager Asst. Electric Utility Director Manager, Rates and Resources Senior Electric Utility Rate Analyst