HomeMy WebLinkAboutReso 2018-025 - City Council Policy 1407 RESOLUTION NO. 2018-025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
REPLACING CITY COUNCIL POLICY 1407, ELECTRIC UTILITY
LIFELINE RATE
WHEREAS, in April 1997 the City Council adopted Policy 1407 to provide financial
relief by reducing the cost of electric service to the City's low-income population; and
WHEREAS, the City Council wishes to replace Council Policy 1407, Electric Utility
Lifeline Rate, with Council Policy 1407, Residential Energy Discount; and
WHEREAS, the City Council wishes to replace Council Policy 1407 to simplify the
program, simplify eligibility, and expand benefits; and
WHEREAS, customers currently participating in either Lifeline program will
automatically be enrolled in the Residential Energy Discount program under existing eligibility
criteria;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding
that City Council Policy 1407, Electric Utility Lifeline Rate,be replaced with City Council Policy
1407, Residential Energy Discount, as set forth in the draft attached hereto and made a part
hereof by this reference.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a
regular meeting of the Redding City Council on the 20th day of March, 2018, by the following
vote:
AYES: COUNCIL MEMBERS: McElvain, Sullivan,Weaver, Winter, & Schreder
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
4/(56
KRISTEN S REDER, Mayor
ATTEST: FORM APPROVED:
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tl--PAMELA MIZ , City Clerk BARRY E. e A , ity ttorney
CITY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Residential Energy Discount 18-025 1407 03-20-18 1
Background
The City Council provides financial oversight and fiscal management for the City of Redding Electric
Utility (REU)and has authority to establish appropriate rates, fees, and charges to guarantee the financial
integrity of the Utility. Due to electric industry restructuring mandated by the State of California under
Assembly Bill 1890, passed in September 1996, the City Council enacted an interim rate surcharge to
ensure the Electric Utility's long-term competitiveness. The City Council recognized that the effect of the
surcharge on certain customers could be severe. Therefore, in April 1997 the City Council passed
Resolution 97-082 instituting an income-based discount program for REU. Even though the City Council
removed the interim rate surcharge in 2002, the income-based program was continued due to the
increasing cost of basic electricity service. Income-based programs have been modified and expanded
throughout the years since that time and continue to provide much needed assistance to our most
vulnerable customers.
Purpose
The purpose of the Residential Energy Discount program is to provide financial relief by reducing the
cost of basic electric service to the City's income qualified population.
Policy
1. The program will be administered to provide a discount on electric utility charges to qualified
City of Redding Electric Utility customers.
2. The Residential Energy Discount will be a $10 discount on the Electric Utility Network Access
Charge and a thirty-five (35) percent discount on the first 450 kWh of usage for qualified
customers as computed using the standard Residential Rate. The Residential Energy Discount
shall not be applicable to or available for three-phase service, resale for profit, temporary
construction service, standby or auxiliary service, service to any single motor exceeding a
nameplate rating of 71/2 horsepower, or any equipment that will cause excessive voltage
fluctuations.
3. The Residential Energy Discount will be available to all customers whose maximum household
income does not exceed the income level limits most recently published by the City of Redding
and as determined by the number of household members. The income level limit is set at sixty
(60)percent of median income level for the area.
4. Funds for this program will be considered to be applicable to the "Public Goods Charge" as
mandated by California AB 1890, the Electric Industry restructuring bill, and will be taken from
the 2.85 percent of retail revenues that REU sets aside for its Public Benefits programs.
5. Customers receiving the Residential Energy Discount shall be subject to all provisions of the
current Electric Residential Rate of REU regarding character of service, taxes,and payment.
CITY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Residential Energy Discount 18-025 1407 03-20-18 2
Procedure
The City Council directs staff to administer the Residential Energy Discount program as follows:
1. The discount will be in effect until otherwise directed by City Council.
2. The discount will be available only to individually metered single-phase electric residential
service provided to any single-family dwelling, apartment,or mobile home.
3. The discount will be available to City of Redding residents only and can only be applied to one
location per qualified applicant.
4. REU reserves the right to establish a waiting list if more customers qualify than funds for the
program will allow. Whenever budgeted funds are exhausted, qualified customers will be added
to a waiting list. As available spaces allow, they will be filled from the beginning of the list,
according to the applicant's date of qualification for the Residential Energy Discount program, if
the applicant still meets the program qualifications at the time the space becomes available.
5. Benefits under this program will be denied by the City of Redding for a period of twelve months,
subject to appeal to the Electric Utility Director, for any of the following conditions:
a. Any evidence of service tampering or meter tampering.
b. Failure to re-certify qualification at any time requested to do so by the City of Redding.
c. False information provided during qualification or re-certification.
6. Application forms shall be developed by the Electric Utility Director,or his designee, which shall
set forth the minimum criteria to obtain the applicable discount.
7. Any project that is master-metered shall have the option to enter into a separate agreement with
the City that provides that any credit would be fully passed through to the qualifying households.
Included in this category would be mobile home parks, senior housing residences, and nonprofit
housing of qualified households.
8. Discounts will become effective at the beginning of the billing period after qualification is met.
9. Determination of eligibility:
To be eligible for the Residential Energy Discount,the applicant must meet the following criteria:
a. Total gross annual income for all persons in the applicant's household may not exceed
sixty (60) percent of the median income levels for Shasta County, as most recently
published by the City of Redding. Application forms will show current maximums by
household size.
CITY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Residential Energy Discount 18-025 1407 03-20-18 3
b. Customers participating as of March 20, 2018, in either Lifeline program will
automatically be enrolled in the new Residential Energy Discount program under their
existing eligibility. Recertification for Lifeline applicants will remain at Lifeline's
seventy-five (75) percent of Shasta County median income threshold. Recertification
for Lifeline Plus applicants will increase to the Residential Energy Discount program's
sixty (60) percent of Shasta County median income threshold.
Amended on 11-18-97 by Resolution No.97-204
Amended on 01-19-99 by Resolution No. 99-009
Amended on 05-06-14 by Resolution No. 14-046
Amended on 01-19-16 by Resolution No. 16-014
Replaced on 03-20-18 by Resolution No. 18-025